SCHEDULE 1 CUSTOMS, EXCISE AND SALES DUTIES AND SURCHARGE

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1 GENERAL NOTES A. GENERAL RULES FOR THE INTERPRETATION OF THIS SCHEDULE Classification of goods in this Schedule shall be governed by the following principles: SCHEDULE 1 CUSTOMS, EXCISE AND SALES DUTIES AND SURCHARGE 1. The titles of Section, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) (b) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), unassembled or disassembled. Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule When by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) (b) (c) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above Rules shall be classified under the heading appropriate to the goods to which they are most akin. 5. In addition to the foregoing provisions, the following Rules shall apply in respect of the goods referred to therein: (a) (b) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This Rule does not, however, apply to containers which give the whole its essential character; Subject to the provisions of Rule 5(a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use. 6. For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading Notes and, mutatis mutandis, to the above Rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. B. DUTY ASSESMENT 1. The expression "free" when used in the Rate of Duty column in Part 1 shall be regarded as a rate duty. 2. Any amount of duty payable shall be calculated to the nearest cent. For the purposes of this paragraph one half cent shall be regarded as a whole cent. 3. When a rate of duty in respect of any goods consists of two or more parts separated by the word "or", each such part shall be deemed to be a separate and complete rate of duty and such rate of duty yielding the higher or highest amount of duty shall be applicable in respect of such goods. 4. A rate of duty applicable under any heading or tariff item to any unit of mass, measure, quantity or any other characteristic shall, unless otherwise provided for in such heading or tariff item, apply proportionately to any part of such unit except in the case of a unit of quantity described in the statistical column in Part 1 of Schedule No. 1 as "u" (number of units). 5. Any duties on imported goods specified in Part 2, 3 and 5 of this Schedule are additional to any duties specified in Part 1 of the said Schedule in respect of such goods.

2 5. Any duties on imported goods specified in Part 2, 3 and 5 of this Schedule are additional to any duties specified in Part 1 of the said Schedule in respect of such goods. C. VALUE FOR DUTY PURPOSES The expression "value for duty purposes" has the meaning assigned thereto in section 65. D. MASS FOR DUTY PURPOSES 1. When goods are dutiable by mass units, assessment shall be based on their legal mass unless otherwise provided. 2. (a) (b) The legal mass of any goods in blocks, lumps, powders, granules, flakes, liquid and similar bulk forms packed in bags, drums or similar containers, with a net mass per container exceeding 5 kg, but excluding goods provided for otherwise in any tariff heading in Part 1 of Schedule No. 1, shall be deemed not to include the mass of such bags, drums or similar containers. The legal mass of any goods in blocks, lumps, powders, granules, flakes, liquids and similar bulk forms packed in bags, drums or similar containers, with a net mass per container not exceeding 5 kg and any other goods shall be deemed to include the mass of the immediate containers or other wrapping used for packing goods in sets or units or in other marketable quantities but not the mass of cartons or cases or other outer packing in which such sets or units or other marketable quantities are packed for ease of transport or consolidation purposes. 3. The net mass of any goods shall be the actual mass thereof excluding packing material. 4. The gross mass of any goods shall be deemed to include the legal mass and the mass of any outer packing material. 5. The legal mass or the net mass of any goods shall be determined by actual mass measurement or by deducting, in the discretion of the importer, from the gross mass or the legal mass, as the case may be, either the actual deductible tare ascertained by mass measurement or an average deductible tare determined by the Commissioner in respect of such goods. E. SEA PRODUCE TAKEN BY A SHIP RECOGNIZED AS A SHIP OF SOUTH AFRICAN NATIONALITY Fish, crustaceans, molluscs, birds and any other marine or other animals of any nature and parts of and products derived or manufactured from such fish, crustaceans, molluscs, birds or animals taken from the sea or taken from any island forming part of the Republic by any ship recognized as a ship of South African nationality in terms of the Ship Registration Act 58 of 1998, shall be exempt from duty and from such requirements of this Act as the Commissioner may decide in each case, when landed in the Republic direct from such ship or when landed from any other ship so recognized subject to the prior permission of the Commissioner for transhipment having been obtained and subject to such conditions as he may impose in each case. F. TIME OF IMPORTATION OF CERTAIN GOODS For the purposes of this Act, any ship (excluding a flying boat) built outside the Republic and brought to any place in the Republic under its own power or in any manner except as cargo in any other ship or vehicle, shall be deemed to have been imported into the Republic at the time when such ship acquired recognition as a ship of South African nationality in terms of the Ship Registration Act 58 of 1998, or if it acquired such recognition before arrival at any place in the Republic, at the time when such ship first came within the control area of the port authority at the first port of call in the Republic: Provided that this note shall not be construed to apply to any ship so recognized as a ship of South African nationality on the ninth day of December, 1966, for as long as such recognition continues. G. ABBREVIATIONS AND SYMBOLS 1. A means "ampere" 2. AC means "alternating current" 3. c means "cent" 4. C means "degree Celsius" 5. cn means "centinewton" 6. cg means "centigram" 7. cm means "centimetre" 8. cm² means "square centimetre" 9. cm³ means "cubic centimetre" 10. DC means "direct current" 11. dtex means "decitex"

3 12. g means "gram" 13. GVM means "gross vehicle mass" 14. GW.h means "gigawatt hour" 15. int. unit means "international unit" 16. ka means "kilo-ampere" 17. kg means "kilogram" 18. kn means "kilonewton 19. kpa means "kilopascal" 20. kv means "kilovolt" 21. kva means "kilovolt ampere" 22. kvar means "Kilovolt-ampere reactive" 23. kw means "kilowatt" 24. li means "litre" 25. m means "metre" 26. m² means "square metre" 27. m³ means "cubic metre" 28. ma means "milliampere" 29. mg means "milligram" 30. ml means "millilitre" 31. mm means "millimetre" 32. mm² means "square millimetre" 33. MPa means "megapascal" 34. u means "number of units" 35. pr. means "pair" 36. R means "rand" 37. t means "ton" 38. V means "volt" 39. V.A. means "volt ampere" 40. vol. means "volume" 41. W means "watt" 42. % means "per cent AD VALOREM" 43. / means "unless the context otherwise indicates, per." H. ADDITIONAL NOTE IN RESPECT OF PART 8 Notwithstanding anything to the contrary contained in this Act, any rate of duty or surcharge specified in Part 1,2 or 4 shall not apply to any goods subject to the ordinary levy specified in Part 8. Any goods to which the levy specified in Part 8 is applicable shall be entered in terms thereof and in accordance with the purposes codes specified in the regulations.

4 IJ. GOODS IMPORTED FROM THE COMMUNITY 1. In this Note the expressions "Agreement", "Community" and "Protocol" relate to the Agreement on Trade, Development and Co-operation between the European Community and its Member States and the Republic of South Africa and Protocol 1 thereof for which meanings are assigned in the definitions contained in the Notes to Part A of the Schedule to the General Notes to Schedule No Any rate of duty specified in the EU column in respect of any heading or subheading of Part 1 of Schedule No. 1 which is lower than the rate of duty specified in the general column applies to imported goods to which such heading or subheading relates if such goods originate in the Community and comply with the other requirements of the Protocol and the Agreement. 3. (a) In terms of the Agreement the goods classified in the subheadings and imported in the quantities listed below are subject to tariff quotas and may be admitted during the stated period at the tariff quota rates of duty specified in such list instead of the rates of duty specified in the EU column of Part 1 of Schedule No. 1 on compliance with the provisions of this Note and the rules - Subheading Description of Goods Quantity Period of Duty Tariff quota rate under Part 1 of Schedule No Cheese *Global t¹ Annual: 1 January to 31 December 50% of the General Rate Curd 50% of the General Rate Canestrato, Siciliano, Coulommier, etc. 50% of the General Rate Other 50% of the General Rate Processed cheese, not grated or powdered 0% of the General Rate Danablue, Mycelle and Stilton 50% of the General Rate Other 50% of the General Rate Canestrato, Siciliano, Coulommier, etc. 50% of the General Rate Cheddar 0% of the General Rate Gouda 0% of the General Rate Other 50% of the General Rate * Global means that the tariff quota quantity applies to all the goods included under the global quota: tonnes for all the cheese classified under any of the stated subheading of heading ¹ In terms of Annex VI of the Agreement an annual growth factor of 3% shall be applied as from the year 2000 on the basic quantity applicable to the global cheese curd quota. (b) Such lower rate of duty only applies in respect of the goods concerned if during the specified period - (i) (ii) (iii) the goods have been imported and entered for home consumption; a tariff quota is available and is allocated at the time of entry for home consumption; and where the goods are subject to a permit issued by the National Department of Agriculture, a valid permit is produced at the time of entry for home consumption. (c) Any tariff quota is allocated for such goods on first-come-first-served basis at the time of presentation of a valid Bill of Entry for home consumption supported by - (aa) (bb) (cc) all documents required to be produced in terms of section 39 including valid proof of origin documents contemplated in the Protocol; an application for such quota; and a valid permit from the National Department of Agriculture, if applicable. (d) The procedures relating to the application for and allocation of tariff quotas are prescribed in the rules of section 49.

5 4. (e) (f) Any balances of a tariff quota remaining at the end of any stated period is not carried over to the next period. When the tariff quota is exhausted during the stated period the duty specified in respect of the goods concerned in the EU column shall be payable. (a) For the purposes of entry of any imported goods at the lower rate of duty specified in the EU column the importer shall at the time of entry for home consumption of any consignment - (i) (ii) produce together with any documents required to be produced in terms of section 39 a valid proof of origin and proof of compliance with the territorial requirement in accordance with provisions of Part A of the Schedule to the General Notes to Schedule No. 1; only be entitled to payment of such lower rate of duty in respect of goods subject to a tariff quota, if such quota is allocated in accordance with the provisions of the rules for section 49 relating to tariff quotas. 5. In terms of Article 7 of the Additional Protocol to the Agreement published in Schedule No. 10 relating to the accession of the new Member States to the European Community it is provided in respect of tariff quotas: "For the year 2004, the volumes of the new tariff quotas and the increases of the volumes of existing tariff quotas shall be calculated as a PRO RATA of the basic volumes, taking into account the part of the period elapsed before 1 May 2004." K. DUTIES ON GOODS TO WHICH THE PROTOCOL ON TRADE OF THE SADC RELATES 1. In this Note the expressions "Treaty", SADC "Member State" or "MMTZ Member State", "Protocol" and "Annex I" relate to the Treaty of the Southern African Development Community, the Protocol on Trade thereof and Annex I of the said Protocol on Trade and its Appendixes, as the case may be, for which meanings are assigned in the definitions contained in the Notes to Part B of the Schedule to the General Notes to Schedule No (a) (b) (a) (b) (c) The general rate of duty specified in the general column in respect of any heading or subheading in Part 1 of Schedule No. 1 applies to imported goods to which such heading or subheading relates if the goods do not qualify for any preferential rate of duty specified in the EU or SADC column. Where the rate of duty in the EU or SADC column is the same as the rate in the general column no preferential rate of duty is in operation in respect of the said EU or SADC column, as the case may be. Any rate of duty specified in the SADC column in respect of any heading or subheading of Part 1 of Schedule No. 1 which is lower than the rate of duty specified in the general column applies to imported goods to which such headings or subheading relates if such goods originate in a Member State of the SADC and comply with any other conditions specified in Annex I and the Notes to Part B of the Schedule to the General Notes to Schedule No. 1. Wherever in column (3) of Appendix I to Annex I the words "no rule" appear, the goods classified under the chapters or headings specified in column (1) shall not qualify for any preferential rate of duty specified in the SADC column of Part 1 of Schedule No. 1 and the general rate specified in the said Part 1 shall apply to such goods. If any goods are imported for the purposes of entry under the preferential rate of duty specified in the SADC column of Part 1 of Schedule No. 1 and the certificate or origin is not produced at the time of entry to prove the originating status, such goods shall be dealt with as provided in section 49 (9). 4. For the purposes of entry of any imported goods at the lower rate of duty specified in the SADC column the importer shall at the time of entry for home consumption of any consignment produce, together with any documents required to be produced in terms of section 39, a valid proof of origin and proof that the goods have been consigned directly in accordance with the provisions of Annex I contained in Part B of the Schedule to the General Notes to Schedule No Item of Schedule No. 4 which provides for a rebate of duty in respect of sugar imported from certain SADC Member States for the purpose of giving effect to provisions of Annex VII, Concerning Trade in Sugar in the Southern African Development Community; and the Addendum thereto shall come into operation on the date of publication of this amendment in the Gazette. 6. In accordance with the provisions of Article 10 of the Amendment Protocol on Trade in the Southern African Development Community the member states mentioned in column A have implemented the said Protocol on the dates specified in column B. A B COUNTRY: DATE OF IMPLEMENTATION: Botswana 1 December 2000 Lesotho 10 November 2000

6 Madagascar 01 October 2007 Malawi 1 May 2001 Mauritius 1 September 2000 Mozambique 31 July 2001 Namibia 4 June 2001 The Republic of Seychelles 1 April 2015 South Africa 1 September 2000 Swaziland 1 October 2000 Tanzania 1 July 2001 Zambia 5 March 2001 Zimbabwe 1 May 2001 L. Duties on goods to which the Free Trade Agreement between EFTA States and the SACU states relates. 1. In this Note and for the purposes of Schedule No.1, the expression "EFTA" or "EFTA States" shall refer to the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation or Members of the European Free Trade Association unless otherwise specified in the General Notes or subheadings description in Part 1 of Schedule No The expression "EFTA Agreement" shall refer to the Free Trade Agreement between the EFTA States and the SACU States. 3. Any rate of duty specified in the EFTA column in respect of any heading or subheading of Part 1 of Schedule No. 1 which is lower than the rate of duty specified in the general column applies to imported goods to which such heading or subheading relates if such goods originate in the EFTA States and comply with the other requirements of the EFTA Agreement. 4. It is provided in footnote 2 to Article 2 of Annex V that "Due to the customs union between Switzerland and Lichtenstein, products originating in Lichtenstein are considered as originating in Switzerland". 5. (a) In terms of the Agreement the goods classified in the subheadings and imported from Swiss Confederation (Switzerland) in the quantities listed below are subject to tariff quotas and may be admitted during the stated period at the tariff quota rates specified in such list instead of the rates of duty specified in the General column of Part 1 of Schedule No. 1 on compliance with the provisions of this Note- Subheading Description Quantity Period of Duty Tariff quota rate under Part 1 of Schedule No Meat of bovine animals: dried *Global 20 t Annual: 1 January to 30 December Other, dried free Imported from Switzerland 200 t provided such products are imported for direct consumption only Imported from Switzerland Imported from Switzerland Annual: 1 January to 30 December but effective from 1 July 2007 free free * Global in this case implies that there is one quota for all products included in subheadings and taken together.*global in this case implies that there is one quota for all products included in subheadings and taken together. (b) In accordance with the provisions of Article 1 of the Agricultural Agreement between the SACU States and Switzerland the Principality of Lichtenstein shall for the purposes of this Note and

7 any provisions of Part 1 of Schedule No. 1 be included when any reference is made to Switzerland or the Swiss Confederation as long as the Customs Union Treaty of 29 March 1923 between Switzerland and the Principality of Lichtenstein remains in force. (c) Such lower rate of duty applies in respect of the goods concerned if during the specified period - (d) (e) (i) (ii) (iii) the goods have been imported and entered for home consumption; where the goods are subject to a permit issued by the National Department of Agriculture, a valid permit is produced at the time of entry for home consumption; and a valid EUR 1 certificate issued by Switzerland is presented with a valid bill of entry for home consumption supported by all documents required to be produced in terms of section 39. Any balance of a tariff quota remaining at the end of any stated period is not carried over to the next period. When the tariff quota is exhausted during the stated period the duty specified in respect of the goods concerned in the general column shall be payable. 6 For the purposes of entry of any imported goods at the lower rate of duty specified in the EFTA column the importer shall at the time of entry for home consumption of any consignment produce together with any documents required to be produced in terms of section 39 a valid proof of origin and proof of compliance with the territorial requirement in accordance with the provisions of Part C of the Schedule to the General Notes to Schedule No. 1. M. Rates of duty specified in the four columns, General, EU, EFTA and SADC of Part 1 of Schedule No. 1. PART A 1. (a) (b) The general rate of duty specified in the general column in respect of any heading or subheading in Part 1 of Schedule No. 1 applies to imported goods to which such heading or subheading relates if the goods do not qualify for any preferential rate of duty specified in the EU, EFTA or SADC column. Where the rate of duty in the EU, EFTA or SADC column is the same as the rate in the general column no preferential rate of duty is in operation in respect of the said EU, EFTA or SADC column, as the case may be. PROTOCOL 1 CONCERNING THE DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS" AND METHODS OF ADMINISTRATIVE CO-OPERATION OF THE AGREEMENT ON TRADE, DEVELOPMENT AND CO-OPERATION BETWEEN THE EUROPEAN COMMUNITY AND ITS MEMBER STATES AND THE REPUBLIC OF SOUTH AFRICA Notes to the Protocol: 1. Definitions In the application of provisions of this Act for the purposes of giving effect to such Protocol and other provisions of the Agreement, unless the context otherwise indicates - (a) the following expressions in the definitions of the Protocol shall have the meanings assigned thereto in this Note - * "customs value" means the value of imported goods calculated or determined in accordance with the provisions of sections 65, 66, 67 and 74A; "chapters and headings" means the chapters and headings (four-digit codes) of Part 1 of Schedule No. 1; "Harmonized System" or "HS" or "nomenclature of the Harmonized System or HS" means subject to any meaning ascribed to any expression in any provisions of origin, the provisions of Part 1 of Schedule No. 1, except national subheadings or additional national section or chapter notes and the rates of duty, applicable to the classification of any goods in any chapter or heading or subheading, and for the purposes of interpretation of Part 1 of Schedule No. 1, includes application of the Explanatory Notes to the Harmonized Commodity Description and Coding System as required in terms of section 47(8)(a); "SACU" which is defined in the Protocol as referring to the Southern African Customs Union shall mean the common customs area as defined in section 1 of the Act and if the context so requires, the territory of any country with which a customs union agreement has been concluded under section 51. (b) The following expressions in the Protocol or other parts of the Agreement shall have the meanings assigned thereto in this paragraph - "ACP States", which is defined in the Protocol as referring to the African, Caribean and Pacific States that are Contracting Parties to the Fourth ACP-EC Convention, signed at Lomé on 15 December 1989, as amended by the Agreement signed at Mauritius on 4 November 1995 means the states which according to that Convention are the following: The Republic of Angola;

8 Antigua and Barbuda; The Commonwealth of the Bahamas; Barbados; Belize; The Republic of Benin; The Republic of Botswana; Burkina Faso; The Republic of Burundi; The Republic of Cameroon; The Republic of Cape Verde; The Central African Republic; The Islamic Federal Republic of the Comoros; The Republic of the Congo; The Republic of the Cote D'Ivoire; The Republic of Croatia; The Republic of Djibouti; The Commonwealth of Dominica; The Dominican Republic; The State of Eritrea; The Federal Democratic Republic of Ethiopia; The Sovereign Democratic Republic of Fiji; The Republic of Gabon; The Republic of the Gambia; The Republic of Ghana; Grenada; The Republic of Guinea; The Republic of Guinea-Bissau; The Republic of Equatorial Guinea; The Co-operative Republic of Guyana; The Republic of Haiti; Jamaica;

9 The Republic of Kenya; Kiribati; The Kingdom of Lesotho; The Republic of Liberia; The Republic of Madagascar; The Republic of Malawi; The Republic of Mali; The Islamic Republic of Mauritania; The Republic of Mauritius; The Republic of Mozambique; The Republic of Namibia; The Republic of Niger; The Federal Republic of Nigeria; The Republic of Uganda; The Independent State of Papua New Guinea; The Rwandese Republic; Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; The Independent State of Western Samoa; The Democratic Republic of Sáo Tomé and Principe; The Republic of Senegal; The Republic of Seychelles; The Republic of Sierra Leone; The Solomon Islands; The Republic of the Sudan; The Republic of Suriname; The Kingdom of Swaziland; The United Republic of Tanzania; The Republic of Chad; The Tongolese Republic;

10 Tonga; The Republic of Trinidad and Tobago; Tuvalu; Vanuatu; The Republic of Zaire; The Republic of Zambia; The Republic of Zimbabwe. "Agreement" means - (a) the Agreement on Trade, Development and Co-operation between the European Community and its Member States and the Republic of South Africa of which the full text, except for this Protocol, is published in Schedule No. 10 as Part 1 of the said Schedule; and (b) any amendment thereof published in the said Schedule No. 10. "Amendment" includes as contemplated in section 49(1)(b) any amendment or adjustment or addition to - (a) the Agreement on Trade, Development and Co-operation between the European Community and its Member States and the Republic of South Africa published in Schedule No. 10; and (b) the Protocol which is published in Schedule No. 10 after Part 1 of Schedule No. 10 as an amendment to the said Part 1. "Community" means according to the Agreement the European Community and its Member States: The Republic of Austria; The Kingdom of Belgium; The Republic of Bulgaria; The Republic of Cyprus; The Czech Republic; The Kingdom of Denmark; The Republic of Estonia; The Republic of Finland; The French Republic; The Federal Republic of Germany; The Hellenic Republic (Greece); The Republic of Hungary; The Republic of Ireland; The Italian Republic; The Republic of Latvia; The Republic of Lithuania;

11 The Grand Duchy of Luxembourg; The Republic of Malta; The Kingdom of the Netherlands; The Republic of Poland; The Portuguese Republic; The Republic of Romania; The Kingdom of Sweden; The Republic of Slovenia; The Slovak Republic; The Kingdom of Spain; The United Kingdom of Great Britain and Northern Ireland, and includes, to the extent specified - (a) (b) Ceuta and Melilla referred to in Article 35 and 36 of the Protocol; and The Principality of Andorra and the Republic of San Marino, to which the meaning assigned to products originating in the Community relates; "EC Member State" means a State which is a member of the European Community. "Customs authorities" means the Commissioner, or according to any delegation in the rules of section 49, the Controller or any other officer. "Fourth ACP-EC Convention" refers to the Convention between the ACP States and the Community as referred to in that Convention and of which the Commissioner is required to keep two copies as contemplated in section 49(4). "Products originating in the Community" includes in terms of joint declarations in the Agreement: "Products originating in the Principality of Andorra falling within Chapter 25 to 97 of the Harmonized System shall be accepted by South Africa as originating in the Community within the meaning of this Agreement"; and "Products originating in the Republic of San Marino shall be accepted by South Africa as originating in the Community within the meaning of this Agreement"; and In both cases: "Protocol 1 shall apply mutatis mutandis for the purpose of defining the originating status of the above-mentioned products". "Protocol" means Protocol 1 contained in Part A and any amendment thereof contained in Part 1 of Schedule No. 10." For the purposes of Article 4 in respect of the Republic - "seabed" and "marine soil" or "subsoil" means "the bed of the sea and the subsoil thereof" included in the definition of "sea" in section 1 of the Maritime Zone Act, No. 15 of "territorial waters" means the territorial waters as defined in section 4 of the Maritime Zone Act, No. 15 of "registered or recorded" or "sail under the flag of South Africa" in Article 4.2 includes "registered" or "of South African nationality" as contemplated in the Merchant Shipping Act, No. 57 of "company" means a company contemplated in the Companies Act, No. 61 of "public bodies" includes any statutory body included in the definition thereof in the Exchequer Act, No. 66 of The provisions of Part A shall govern imported goods entered according to the provisions of the EU column of Part 1 of Schedule No Goods imported or exported, worked, processed or manufactured shall, for the purposes of this Protocol, be declared in every document for proving the originating status under the appropriate heading of Part 1 of Schedule No. 1.

12 4. Where any goods imported are subject to tariff quotas in order to benefit from the preferential rate of duty in terms of the Agreement such goods shall comply with the requirements of Note 1 of the General Notes and the rules for section 49 relating to tariff quotas. 5. For the purposes of entering any goods under rebate of duty for which originating status is claimed on re-importation in the circumstances contemplated in Article 11, the provisions of paragraph 2 thereof shall be deemed to be incorporated in the notes to rebate item 409 of Schedule No Any goods exported to the Community for the purposes of obtaining preferential treatment therefor in terms of the Agreement, shall be subject to compliance with - (a) the provisions of Part A, (b) (c) CONTENTS OF PROTOCOL PROTOCOL 1 any relevant provision of the said Agreement, and any rule for section 49 in respect of such goods. concerning the definition of the concept of "originating products" and methods of administrative cooperation CONTENTS TITLE I Article 1 TITLE II Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Article 8 Article 9 Article 10 TITLE III Article 11 Article 12 Article 13 TITLE IV Article 14 Article 15 Article 16 Article 17 Article 18 GENERAL PROVISIONS Definitions DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS" General requirements Cumulation of origin Wholly obtained products Sufficiently worked or processed products Insufficient working or processing operations Unit of qualification Accessories, spare parts and tools Sets Neutral elements TERRITORIAL REQUIREMENTS Principle of territoriality Direct transport Exhibitions PROOF OF ORIGIN General requirements Procedure for the issue of an EUR.1 movement certificate EUR.1 movement certificates issued retrospectively Issue of a duplicate EUR.1 movement certificate Issue of EUR.1 movement certificates on the basis of a proof of origin issued or made out previously

13 Article 19 Article 20 Article 21 Article 22 Article 23 Article 24 Article 25 Article 26 Article 27 Article 28 Article 29 TITLE V Article 30 Article 31 Article 32 Article 33 Article 34 TITLE VI Article 35 Article 36 TITLE VII Article 37 Article 38 Article 39 ANNEXES Annex I Annex II Annex III Annex IV Annex V TITLE I previously Conditions for making out an invoice declaration Approved exporter Validity of proof of origin Submission of proof of origin Importation by instalments Exemptions from proof of origin Supplier's declaration Supporting documents Preservation of proof of origin, suppliers' declarations and supporting documents Discrepancies and formal errors Amounts expressed in euro ARRANGEMENTS FOR ADMINISTRATIVE CO-OPERATION Mutual assistance Verification of proofs of origin Dispute settlement Penalties Free zones CEUTA AND MELILLA Application of the Protocol Special conditions FINAL PROVISIONS Amendments to the Protocol Implementation of the Protocol Goods in transit or in storage Introductory notes to the list in Annex II List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status EUR.1 movement certificate and application for an EUR.1 movement certificate Invoice declaration Supplier's declaration GENERAL PROVISIONS Article 1

14 Definitions For the purposes of this Protocol: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) "manufacture" means any kind of working or processing including assembly or specific operations; "material" means any ingredient, raw material, component or part, etc., used in the manufacture of the product; "product" means the product being manufactured, even if it is intended for later use in another manufacturing operation; "goods" means both materials and products; "customs value" means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation); "ex-works price" means the price paid for the product ex works to the manufacturer in the Community or South Africa in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported; "value of materials" means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the Community or South Africa; "value of originating materials" means the value of such materials as defined in subparagraph g applied mutatis mutandis; "added value" shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Article 3 or, where the customs value is not known or cannot be ascertained, the first price verifiable paid for the products in the Community or South Africa; "chapters" and "headings" mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Protocol as "the Harmonised System" or "HS"; "classified" refers to the classification of a product or material under a particular heading; "consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice; "territories" includes territorial waters; "ACP States" refers to the African, Caribbean and Pacific States that are Contracting Parties to the Fourth ACP-EC Convention, signed at Lomé on 15 December 1989, as amended by the Agreement signed at Mauritius on 4 November 1995; "SACU" refers to the South African Customs Union. TITLE II DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS" Article 2 General requirements 1. For the purpose of implementing this Agreement, the following products shall be considered as originating in the Community: (a) (b) products wholly obtained in the Community within the meaning of Article 4 of this Protocol; products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 5 of this Protocol. 2. For the purpose of implementing this Agreement, the following products shall be considered as originating in South Africa: (a) (b) products wholly obtained in South Africa within the meaning of Article 4 of this Protocol; products obtained in South Africa incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in South Africa within the meaning of Article 5 of this Protocol. Article 3

15 Cumulation of origin Bilateral cumulation 1. Materials originating in the Community shall be considered as materials originating in South Africa when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 6 of this Protocol. 2. Materials originating in South Africa shall be considered as materials originating in the Community when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 6 of this Protocol. Cumulation with ACP States 3. Subject to the provisions of paragraphs 5 and 6, materials originating in an ACP State shall be considered as originating in the Community or South Africa when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing. 4. Any working or processing carried out within SACU shall be considered as having been carried out in South Africa, when further worked or processed there. 5. Products which have acquired originating status by virtue of paragraph 3 shall only continue to be considered as products originating in the Community or South Africa when the value added there exceeds the value of the materials used originating in any one of the ACP States. If this is not so, the products concerned shall be considered as originating in the ACP State which accounts for the highest value of originating materials used. In the allocation of origin, no account shall be taken of materials originating in the ACP States which have undergone sufficient working or processing in the Community or South Africa. 6. The cumulation provided for in paragraph 3 may only be applied where the ACP materials used have acquired the status of originating products by an application of the rules of origin contained in the Fourth ACP-EC Convention. The Community and South Africa shall provide each other, through the European Commission with details of agreements and their corresponding rules of origin which have been concluded with the ACP States. 7. Once the requirements laid down in paragraph 6 have been fulfilled, and a date for the entry into force of these provisions has been agreed, each party shall fulfil its own notification and information obligations. Wholly obtained products 1. The following shall be considered as wholly obtained in the Community or South Africa: (a) (b) (c) (d) (e) (f) mineral products extracted from their soil or from their seabed; vegetable products harvested there; live animals born and raised there; products from live animals raised there; products obtained by hunting or fishing conducted there; Article 4 products of sea fishing and other products taken from outside the territorial waters of the Community or South Africa by their vessels; (g) products made aboard their factory ships exclusively from products referred to in subparagraph f; (h) (i) (j) used articles collected there fit only for the recovery of raw materials, including used tyres fit only for re-treading or for use as waste; waste and scrap resulting from manufacturing operations conducted there; products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil; (k) goods produced there exclusively from the products specified in subparagraphs a to j. 2. The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall apply only to vessels and factory ships: (a) (b) (c) which are registered or recorded in an EC Member State or in South Africa; which sail under the flag of an EC Member State or of South Africa; which are owned to an extent of at least 50% by nationals of EC Member States or of South Africa, or by a company with its head office in one of these States, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of EC Member States or of South Africa and of

16 (d) (e) (d) which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States; of which the master and officers are nationals of EC Member States or of South Africa; and of which at least 75% of the crew are nationals of EC Member States or of South Africa. At the entry into force of tariff concessions for fishery products, paragraph 2(d) and 2(e), will be replaced by: of which at least 50% of the crew, masters and officers included, are nationals of EC Member States or of South Africa. Article 5 Sufficiently worked or processed products 1. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled. The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture. 2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a product may nevertheless be used, provided that: (a) (b) their total value does not exceed 15% of the ex-works, except for products falling within Chapters 3 and 24 and HS Headings 1604, 1605, 2207 and 2208 where the total value of the non-originating materials does not exceed 10% of the ex-works ; any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph. This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System. 3. Paragraphs 1 and 2 shall apply except as provided in Article 6. Article 6 Insufficient working or processing operations 1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 5 are satisfied: (a) (b) (c) (d) (e) (f) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations); simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up; (i) changes of packaging and breaking up and assembly of packages; (ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations; affixing marks, labels and other like distinguishing signs on products or their packaging; simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating in the Community or South Africa; simple assembly of parts to constitute a complete product; (g) a combination of two or more operations specified in subparagraphs a to f; (h) slaughter of animals. 2. All the operations carried out in either the Community or South Africa on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1. Article 7

17 Unit of qualification 1. The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonised System. Accordingly, it follows that: (a) (b) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification; when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Protocol. 2. Where, under General Rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin. Accessories, spare parts and tools Article 8 Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question. Sets Article 9 Sets, as defined in General Rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and nonoriginating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15% of the ex-works price of the set. Neutral elements Article 10 In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture: (a) (b) (c) (d) energy and fuel; plant and equipment; machines and tools; goods which do not enter and which are not intended to enter into the final composition of the product. TITLE III TERRITORIAL REQUIREMENTS Article 11 Principle of territoriality 1. The conditions set out in Title II relative to the acquisition of originating status must be fulfilled without interruption in the Community or South Africa, except as provided for in Article If originating goods exported from the Community or South Africa to another country are returned, except in so far as provided for in Article 3, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that: (a) (b) Direct transport the goods returned are the same goods as those exported; and they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported. Article The preferential treatment provided for under Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between the Community and South Africa,

18 1. The preferential treatment provided for under Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between the Community and South Africa, or through territories of the other countries referred to in Article 3. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, transhipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition. Originating products may be transported by pipeline across territory other than that of the Community or South Africa. 2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of: (a) (b) (c) Exhibitions a single transport document covering the passage from the exporting country through the country of transit; or a certificate issued by the customs authorities of the country of transit: (i) (ii) (iii) giving an exact description of the products; stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used, and certifying the conditions under which the products remained in the transit country; or Failing these, any substantiating documents. Article Originating products, sent for exhibition in a country other than those referred to in Article 3 and sold after the exhibition for importation in the Community or South Africa shall benefit on importation from the provisions of the Agreement provided it is shown to the satisfaction of the customs authorities that: (a) (b) (c) (d) an exporter has consigned these products from the Community or South Africa to the country in which the exhibition is held and has exhibited them there; the products have been sold or otherwise disposed of by that exporter to a person in the Community or South Africa; the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition. 2. A proof of origin must be issued or made out in accordance with the provisions of Title IV and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required. 3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control. General requirements TITLE IV PROOF OF ORIGIN Article Products originating in the Community shall, on importation into South Africa and products originating in South Africa shall, on importation into the Community benefit from this Agreement on submission of either: (a) (b) an EUR.1 movement certificate, a specimen of which appears at Annex III; or in the cases specified in Article 19(1), a declaration, the text of which appears in Annex IV, given by the exporter on an invoice, a delivery note or any other commercial document which describes the product concerned in sufficient detail to enable them to be identified (hereinafter referred to as the "invoice declaration"). 2. Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 24, benefit from this Agreement without it being necessary to submit any of the documents referred to above. Procedure for the issue of an EUR. 1 movement certificate Article 15