THE CZECH REPUBLIC

RULES OF ORIGIN ...9 ANNEXES...4 ANNEX I: List of Least Developed Beneficiary Countries ...6 ANNEX II: List of Developing Beneficiary Countries...9 ANNEX III: List of the products en

Generalized System of Preferences

HANDBOOK ON THE SCHEME OF

THE CZECH REPUBLIC

Advance Copy

UNCTAD/ITCD/TSB/Misc.63

Generalized System of Preferences

HANDBOOK ON THE SCHEME OF

THE CZECH REPUBLIC

(INT/97/A06) UNCTAD Technical Cooperation Project on Market Access,

Trade Laws and Preferences

1

CONTENTS

PREFACE 2

1 BACKGROUND 3

2 LEGAL FRAMEWORK 3

3 PRODUCT COVERAGE AND DEPTH OF TARIFF CUTS 3

4 RULES OF ORIGIN 9

ANNEXES 4

ANNEX I: List of Least Developed Beneficiary Countries 6

ANNEX II: List of Developing Beneficiary Countries 9

ANNEX III: List of the products enjoying a duty free market access 11

ANNEX IV: List of the products which benefit from a 50 per cent reduction of applied custom tariff 61

2

PREFACE

This Handbook is intended to give, in a consolidated and concise form, information regarding the tariff advantages available to developing countries under the scheme of generalized preferences of the Czech Republic and the conditions under which the goods qualify for preferential treatment on importation into the Czech Republic

This Handbook has been prepared by the UNCTAD Technical Cooperation Programme on Market Access, Trade Laws and Preferences (INT/97/A06), primarily for use within the context of project activities

Although based on official texts, the Handbook cannot be regarded as a substitute for these texts The UNCTAD secretariat appreciates the assistance and cooperation of the Government of the Czech Republic in the preparation of this Handbook

The designations employed and the presentation of the material in this handbook do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities,

or concerning the delimitation of its frontiers or boundaries

For any further information on the publications in the GSP series, please contact the UNCTAD Technical Cooperation Project on Market Access, Trade Laws and Preferences (INT/97/A06):

Tel.: +41 22 907 4944

Fax: +41 22 907 0044

E- mail: gsp@unctad.org

3

The Czech Republic has been applying its scheme of generalized preferences since 1972 Its main objective continues to be the development of broader trade relations with beneficiary countries and provision of better market access opportunities for products originating from least developed and developing countries

The legal framework for the preferential scheme of the Czech Republic consists of:

• Regulation of the Government No 441/2000 Coll., issuing the “Customs Tariff and Establishing Rates of Import Tariffs on Goods Originating in Developing Countries and Least Developed Countries and the Terms of Their Application (Customs Tariff)”; and

• Decree of the Ministry of Industry and Trade No 69.1989 Coll on “the exemption from duties of goods imported from and originated in developing countries”, as amended by Decree 265/1994 Coll., which sets the rules of origin for the purpose of benefiting from preferential treatment

All products originating in and imported from least developed countries (see the list of countries in annex 1 to this handbook) enjoy duty- free access to the Czech market

Tariff preferences for selected products originating and imported from other beneficiary countries (see list in annex 2 to this handbook) are modulated as follows Products listed in annex 3 of this handbook are granted duty- free market access The duty reduction for products listed in annex 4 is 50 per cent of the applied rates No preferences are granted to sensitive products No quotas or ceilings are applied to products which are eligible for GSP treatment

4 RULES OF ORIGIN

Only products that are considered as originating in beneficiary countries are eligible for the preferential treatment under the Czech GSP scheme For this purpose, the following products shall be considered as originating in a beneficiary country:

(a) Products wholly obtained in a beneficiary country;

(b) Products obtained in a beneficiary country incorporating third country materials not exceeding 50 per cent of their value

Materials originating in other least developed and developing beneficiary countries as well as

in the Czech Republic and the Slovak Republic are considered as originating in a beneficiary country when incorporated into respective products

To benefit from the preferential treatment, products must be imported directly from least developed or developing beneficiary countries to the Czech Republic This condition is not fulfilled when products are released to free circulation in another country and then exported

4

to the Czech Republic Similarly, products should not be processed during their transportation

Products shall benefit from the GSP treatment upon submission of a certificate of origin Form

A, issued by a competent authority (Chamber of Commerce) of a country of origin The Form A has to be presented to the Czech customs authorities within one year from the date of importation The certificate is not required if the value of a consignment does not exceed 5,000 USD or its equivalent in another national currency

Further details regarding rules of origin are contained in GATT document L/3703/Add.7, dated 13 October 1989

5

ANNEXES

6

ANNEX I: List of Least Developed Beneficiary Countries

List of the Least Developed Countries

9

ANNEX II: List of Developing Beneficiary Countries

List of Developing and Other Beneficiary Countries

0206 10 10 For the manufacture of pharmaceutical products

0206 29 10 For the manufacture of pharmaceutical products

0206 30 10 For the manufacture of pharmaceutical products

0206 49 10 For the manufacture of pharmaceutical products

0206 80 10 For the manufacture of pharmaceutical products

0206 80 91 Of horses, asses, mules and hinnies

0206 90 10 For the manufacture of pharmaceutical products

0206 90 91 Of horses, asses, mules and hinnies

0601 20 10 Chicory plants and roots

0601 20 30 Orchids, hyacinths, narcissi and tulips

0805 10 10 Sanguines and semi-sanguines

0805 10 30 Navels, Navelines, Navelates, Salustianas, Vernas, Valencia lates, Maltese, Shamoutis, Ovalis,

Trovita and Hamlins

0805 10 50 Other

0805 10 80 Other

0805 20 10 Clementines

0805 20 30 Monreales and satsumas

0805 20 50 Mandarins and wilkings

0805 20 70 Tangerines

0805 20 90 Other

0805 30 10 Lemons (Citrus limon, Citrus limonum)

0805 30 90 Limes (Citrus aurantifolia)

0810 40 10 Cowberries, foxberries or mountain cranberries (fruit of the species Vaccinium vitis -idaea)

0810 40 50 Fruit of the s pecies Vaccinium macrocarpon and Vaccinium corymbosum

0813 50 12 Of papaws (papayas), tamarinds, cashew apples, lychees, jackfruit, sapodillo plums, passion

fruit, carambola and pitahaya

0902 10 00 Green tea (not fermented) in immediate packings of a content not exceeding 3 kg

0902 20 00 Other green tea (not fermented)

0902 30 00 Black tea (fermented) and partly fermented tea, in immediate packings of a content not

0907 00 00 Cloves (whole fruit, cloves and stems)

0908 10 10 Neither crushed nor ground, for the industrial manufacture of essential oils or resinoids

1202 20 00 Shelled, whether or not broken

1209 30 00 Seeds of herbaceous plants cultivated principally for their flowers

1209 99 91 Seeds of plants cultivated principally for their flowers, other than those of subheading No

1515 30 10 For the production of aminoundecanoic acid for use in the manufacture of synthetic textile

fibres or of artificial plastic materials

1515 30 90 Other

1515 40 00 Tung oil and its fractions

1515 50 91 For technical or industrial uses other than the manufacture of foodstuffs for human

consumption

1515 50 99 Other

1515 60 90 Other

1515 90 10 Oiticica oils; myrtle wax and Japan wax; their fractions

1515 90 21 For technical or industrial uses other than the manufacture of foodstuffs for human

1803 20 00 Wholly or partly defatted

1804 00 00 Cocoa butter, fat and oil

1902 40 10 Unprepared

1902 40 90 Other

1903 00 00 Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls,

siftings or similar forms

2001 90 65 Olives

2001 90 91 Tropical fruit and tropical nuts

2005 60 00 Asparagus

2006 00 35 Tropical fruit and tropical nuts

2006 00 91 Tropical fruit and tropical nuts

2007 10 91 Of tropical fruit

2007 99 93 Of tropical fruit and tropical nuts

2008 99 61 Passionfruit and guavas

2008 99 91 Yams, sweet potatoes and similar edible parts of plants, containing 5 % or more by weight of

starch

2008 99 99 Other

2309 10 11 Containing no milk products or containing less than 10 % by weight of such products

2309 10 13 Containing not less than 10 % but less than 50 %by weight of milk products

2309 10 15 Containing not less than 50 % but less than 75 %by weight of milk products

2309 10 19 Containing not less than 75 % by weight of milk products

2309 10 31 Containing no milk products or containing less than 10 % by weight of such products

2309 10 33 Containing not less than 10 % but less than 50 %by weight of milk products

2309 10 39 Containing not less than 50 % by weight of milk products

2309 10 51 Containing no milk products or containing less than 10 % by weight of such products

2309 10 53 Containing not less than 10 % but less than 50 %by weight of milk products

2309 10 59 Containing not less than 50 % by weight of milk products

2309 10 70 Containing no starch, glucose, glucose syrup, maltodextrine or maltodextrine syrup but

containing milk products

2309 10 90 Other

2309 90 10 Fish or marine mammal solubles

2309 90 20 Products referred to in additional note 5 to this chapter

2309 90 31 Containing no milk products or containing less than 10 % by weight of such products

2309 90 33 Containing not less than 10 % but less than 50 % by weight of milk products

2309 90 35 Containing not less than 50 % but less than 75 % by weight of milk products

2309 90 39 Containing not less than 75 % by weight of milk products

2309 90 41 Containing no milk products or containing less than 10 % by weight of such products

2309 90 43 Containing not less than 10 % but less than 50 % by weight o f milk products

2309 90 49 Containing not less than 50 % by weight of milk products

2309 90 51 Containing no milk products or containing less than 10 % by weight of such products

2309 90 53 Containing not less than 10 % but less than 50 % by weight of milk products

2309 90 59 Containing not less than 50 % by weight of milk products

2309 90 70 Containing no starch, glucose, glucose syrup, maltodextrine or maltodextrine syrup but

containing milk products

2309 90 91 Beet-pulp with added molasses

2309 90 93 Premixtures

2309 90 95 Containing by weight 49 % or more of choline chloride, on organic or inorganic base

2309 90 97 Other

2501 00 10 Sea water and salt liquors

2501 00 31 For chemical transformation (separation of Na from Cl) for the manufacture of other products

2501 00 51 Denatured or for industrial uses (including refining) other than the preservation or preparation

of foodstuffs for human or animal consumption

2501 00 91 Salt suitable for human consumption

2707 40 00 Naphthalene

2707 50 10 For use as power or heating fuels

2707 50 90 For other purposes

2707 91 00 Creosote oils

2711 12 11 For use as a power or heating fuel

2711 12 19 For other purposes

2711 12 91 For undergoing a specific process

2711 12 93 For undergoing chemical transformation by a process other than those specified in respect of

subheading 2711 12 91

2711 12 94 Of a purity exceeding 90 % but less than 99 %

2711 12 97 Other

2711 13 10 For undergoing a specific process

2711 13 30 For undergoing chemical transformation by a process other than those specified in respect of

2712 90 31 For undergoing a specific process

2712 90 33 For undergoing chemical transformation by a process other than those specified in respect of

subheading 2712 90 31

2712 90 39 For other purposes

2712 90 91 Blend of 1-alkenes containing by weight 80 % or more of 1-alkenes of a chain-length of 24

carbon atoms or more but not exceeding 28 carbon atoms

2712 90 99 Other

2713 90 10 For the manufacture of the products of heading No 2803

2713 90 90 Other

2715 00 00 Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on

mineral tar or on mineral tar pitch (for example, bituminous mastics, cut-backs)

2816 20 00 Oxide, hydroxide and peroxide of strontium

2816 30 00 Oxide, hydroxide and peroxide of barium

2818 20 00 Aluminium oxide, other than artificial corundum

2818 30 00 Aluminium hydroxide

2822 00 00 Cobalt oxides and hydroxides; commercial cobalt oxides

2824 10 00 Lead monoxide (litharge, massicot)

2824 20 00 Red lead and orange lead

2851 00 10 Distilled and conductivity water and water of similar purity

2851 00 30 Liquid air (whether or not rare gases have been removed); compressed air

2907 12 00 Cresols and their salts

2907 13 00 Octylphenol, nonylphenol and their isomers; salts thereof

2907 14 00 Xylenols and their salts

2907 19 00 Other

2907 21 00 Resorcinol and its salts

2908 90 00 Other

2911 00 00 Acetals and hemiacetals, whether or not with other oxygen function, and their halogenated,

sulphonated, nitrated or nitrosated derivatives

2912 12 00 Ethanal (acetaldehyde)

2912 29 00 Other

2917 12 10 Adipic acid and its salts

2917 12 90 Esters of adipic acid

2917 14 00 Maleic anhydride

2932 21 00 Coumarin, methylcoumarins and ethylcoumarins

2935 00 10 3 -[1 -[7 -Hexadecylsulphonylamino)-1 H-indole-3 -y l ]-3 -oxo -1 H,

3H-naphtho[1,8-cd]pyran-1-yl]-N,N-dimethyl-1H-indole-7-sulphonamide

2935 00 20 Metosulam (ISO)

2935 00 90 Other

2937 10 00 Hormony hypofýzy (pøední) nebo podobné hormony a jejich deriváty

2937 21 00 Cortisone, hydrocortisone, prednisone (dehydrocortisone) and prednisolone

2939 30 00 Caffeine and its salts

2939 70 00 Nicotine and its salts

2941 20 30 Dihydrostreptomycin, its salts, esters and hydrates

2941 20 80 Other

2941 40 00 Chloramphenicol and its derivatives; salts thereof

2941 50 00 Erythromycin and its derivatives; salts thereof

3002 90 10 Human blood

3002 90 30 Animal blood prepared for therapeutic, prophylactic or diagnostic uses

3002 90 50 Cultures of micro -organisms

3006 30 00 Opacifying preparations for X-ray examinations; diagnostic reagents designed to be

administered to the patient

3006 50 00 First-aid boxes and kits

3201 10 00 Quebracho extract

3201 20 00 Wattle extract

3201 90 20 Sumach extract, vallonia extract, oak extract or chestnut extract

3201 90 90 Other

3204 12 00 Acid dyes, whether or not premetallized, and preparations based thereon; mordant dyes and

preparations based thereon

3204 13 00 Basic dyes and preparations based thereon

3206 42 00 Lithopone and other pigments and preparations based on zinc sulphide

3214 10 10 Glaziers’ putty, grafting putty, resin cements, caulking compounds and other mastics

3403 11 00 Preparations for the treatment of textile materials, leather, furskins or other materials

3403 91 00 Preparations for the treatment of textile materials, leather, furskins or other materials

3403 99 10 Preparations for lubricating machines, appliances and vehicles

3403 99 90 Other

3405 30 00 Polishes and similar preparations for coachwork, other than metal polishes

3603 00 10 Safety fuses; detonating fuses

3603 00 90 Other

3604 10 00 Fireworks

3606 10 00 Liquid or liquefied-gas fuels in containers of a kind used for filling or refilling cigarette or

similar lighters and of a capacity not exceeding 300 cm

3606 90 10 Ferro-cerium and other pyrophoric alloys in all forms

3606 90 90 Other

3702 10 00 For X-ray

3702 31 10 Of a length not exceeding 30 m

3702 31 91 Colour negative film :

- of a width of 75 mm or more but not exceeding 105 mm

3702 43 00 Of a width exceeding 610 mm and of a length not exceeding 200 m

3702 44 00 Of a width exceeding 105 mm but not exceeding 610 mm

3702 51 00 Of a width not exceeding 16 mm and of a length not exceeding 14 m

3702 52 10 Of a length not exceeding 30 m

3702 52 90 Of a length exceeding 30 m

3702 53 00 Of a width exceeding 16 mm but not exceeding 35 mm and of a length not exceeding 30 m, for

slides

3702 54 10 Of a width exceeding 16 mm but not exceeding 24 mm

3702 54 90 Of a width exceeding 24 mm but not exceeding 35 mm

3702 55 00 Of a width exceeding 16 mm but not exceeding 35 mm and of a length exceeding 30 m

3702 56 10 Of a length not exceeding 30 m

3809 92 00 Of a kind used in the paper or like industries

3812 20 10 Reaction mixture containing benzyl 3-isobutyryloxy -1-isopropyl-2,2-dimethylpropyl phthalate

and benzyl 3-isobutyryloxy -2,2,4-trimethylpentyl phthalate

3812 20 90 Other

3816 00 00 Refractory cements, mortars, concretes and similar compositions, other than products of

heading No 3801

3823 13 00 Tall oil fatty acids

3823 19 10 Distilled fatty acids

3823 19 30 Fatty acid distillate

3823 19 90 Other

3823 70 00 Industrial fatty alcohols

3824 10 00 Prepared binders for foundry moulds or cores

3824 60 11 Containing 2 % or less by weight of D -mannitol, calculated on the D-glucitol content

3906 90 20 Copolymer of 2-diisopropylaminoethyl methacrylate with decyl methacrylate, in the form of a

solution in N,N-dimethylacetamide, containing by weight 55 % or more o f copolymer

3906 90 30 Copolymer of acrylic acid with 2-ethylhexyl acrylate, containing by weight 10 % or more but

not more than 11 %of2-ethylhexyl acrylate

3906 90 40 Copolymer of acrylonitrile with methyl acrylate, modified with polybutadiene-acrylonitrile

(NBR)

3906 90 50 Polymerization product of acrylic acid with alkyl methacrylate and small quantities of other

monomers, for use as a thickener in the manufacture of textile printing pastes

3906 90 60 Copolymer of methyl acrylate with ethylene and a monomer containing a non-terminal

carboxy group as a substituent, containing by weight 50 %or more of methyl acrylate, whether

or not compounded with silica

3920 73 10 Film in rolls or in strips, for cinematography or photography

3920 73 50 Sheets, film or strip, coiled or not, of a thickness of less than 0,75 mm

3920 73 90 Other

3920 91 00 Of polyvinyl butyral

4001 30 00 Balata, gutta-percha, guayule, chicle and similar natural gums

4005 10 00 Compounded with carbon black or silica

4005 20 00 Solutions; dispersions other than those of subheading 4005 10

4005 91 00 Plates, sheets and strip

4006 10 00 ‘Camel-back’ strips for retreading rubber tyres

4006 90 00 Other

4007 00 00 Vulcanised rubber thread and cord

4009 50 10 Suitable for conducting gases or liquids, for use in civil aircraft

4009 50 30 Not reinforced or otherwise combined with other materials

4009 50 50 Reinforced or otherwise combined only with metal

4009 50 70 Reinforced or otherwise combined only with textile materials

4009 50 90 Reinforced or otherwise combined with other materials

4014 90 10 Teats, nipple shields, and similar articles for babies

4014 90 90 Other

4104 10 10 East India kip, whole, whether or not the heads and legs have been removed, each of a net

weight of not more than 4,5 kg, not further prepared than vegetable tanned, whether or not having undergone certain treatments, but obviously unsuitable for immediate use for the manufacture of leather articles

4104 10 30 Other skin leather not further prepared than chrome -tanned, in the wet-blue state

4104 10 91 Not further prepared than tanned

4104 10 95 Boxcalf

4104 10 99 Other

4104 21 00 Bovine leather, vegetable pre-tanned

4104 22 10 Not further prepared than chrome -tanned in the wet-blue state

4104 22 90 Other

4104 29 00 Other

4105 11 10 Of Indian hair sheep, whether or not having undergone certain treatments, but obviously

unsuitable for immediate use for the manufacture of leather articles

4105 20 00 Parchment-dressed or prepared after tanning

4106 11 10 Of Indian goat or kid, whether or not having undergone certain treatments, but obviously

unsuitable for immediate use for the manufacture of leather articles

4106 11 90 Other

4106 12 00 Otherwise pre-tanned

4106 19 00 Other

4106 20 00 Parchment-dressed or prepared after tanning

4107 10 10 Not further prepared than tanned

4203 21 00 Specially designed for use in sports

4203 30 00 Belts and bandoliers

4203 40 00 Other clothing accessories

4204 00 10 conveyor or transmission belts or belting

4204 00 90 Other

4206 90 00 Other

4302 11 00 Of mink

4302 12 00 Of rabbit or hare

4302 13 00 Of lamb, the following: Astrakhan, Broadtail, Caracul, Persian and similar lamb, Indian,

Chinese, Mongolian or Tibetan lamb

4302 30 31 Of lamb, the following: Astrakhan, Broadtail, Caracul, Persian and similar lamb, Indian,

Chinese, Mongolian or Tibetan lamb

4405 00 00 Wood wool; wood flour

4407 10 15 Sanded; finger-jointed, whether or not planed or sanded

4407 10 31 Spruce of the kind ‘Picea abies Karst.’ or silver fir (Abies alba Mill.)

4407 10 33 Pine of the kind ‘Pinus sylvestris L.’

4407 10 38 Other

4407 10 91 Spruce of the kind ‘Picea abies Karst.’ or silver fir (Abies alba Mill.)

4407 10 93 Pine of the kind ‘Pinus sylvestris L.’

4407 10 98 Other

4407 29 05 Finger-jointed, whether or not planed or sanded

4408 10 15 Finger-jointed, whether or not planed or sanded

4408 10 91 Small boards for the manufacture of pencils

4408 10 93 Of a thickness not exceeding 1 mm

4408 39 55 Finger-jointed, whether or not planed or sanded

4408 39 70 Small boards for the manufacture of pencils

4408 39 80 Of a thickness not exceeding 1 mm

4408 39 90 Of a thickness exceeding 1 mm

4408 90 15 Finger-jointed, whether or not planed or sanded

4408 90 35 Small boards for the manufacture of pencils

4408 90 81 Of a thickness not exceeding 1 mm

4408 90 89 Of a thickness exceeding 1 mm

4412 13 10 Of dark red meranti, light red meranti, white lauan, sipo, limba, obeche, okoumé, acajou

d’Afrique, sapelli, virola, mahogany (Swietenia spp.), palissandre de Rio, palissandre de Para and palissandre de Rose

4418 50 00 Shingles and shakes

4501 90 00 Other

4502 00 00 Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates,

sheets or strip (including sharp-edged blanks for cork or stoppers)

4503 10 10 Cylindrical

4503 10 90 Other

4504 90 10 Gaskets, washers and other seals, for use in civil aircraft

4504 90 91 Corks and stoppers

4804 11 11 Weighing less than 150 g/m 2

4804 11 15 Weighing 150 g/m 2 or more but less than 175 g/m 2

4804 11 19 Weighing 175 g/m 2 or more

4804 11 90 Other

4804 41 10 Of which not less than 80 % by weight of the total fibre content consists of coniferous fibres

obtained by the chemical sulphate or soda process

4902 90 10 Appearing once a week

4902 90 30 Appearing once a month

4911 91 10 Sheets (not being trade advertising material), not folded, merely with illustrations or pictures

not bearing a text or caption, for editions of books or periodicals which are published in different countries in one or more languages

5113 00 00 Woven fabrics of coarse animal hair or of horsehair

5203 00 00 Cotton, carded or combed

5205 26 00 Measuring less than 125 decitex but not less than 106,38 decitex (exceeding 80 metric number

but not exceeding 94 metric number)

5205 27 00 Measuring less than 106,38 decitex but not less than 83,33 decitex (exceeding 94 metric

number but not exceeding 120 metric number)

5205 28 00 Measuring less than 83,33 decitex (exceeding 120 metric number)