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free trade agreement between the efta states and the republic of serbia

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- 11 -Serbia on materials exported from an EFTA State or Serbia <strong>and</strong> subsequently reimported<strong>the</strong>re, provided:(a)(b)<strong>the</strong> said materials are wholly obtained in an EFTA State or Serbia orhave undergone working or processing beyond <strong>the</strong> operations referred toin Article 7 prior to being exported; <strong>and</strong>it can be demonstrated to <strong>the</strong> satisfaction <strong>of</strong> <strong>the</strong> customs authorities that:(i)(ii)<strong>the</strong> re-imported goods have been obtained by working orprocessing <strong>the</strong> exported materials; <strong>and</strong><strong>the</strong> total added value acquired outside <strong>the</strong> EFTA State concernedor Serbia by applying <strong>the</strong> provisions <strong>of</strong> this Article does notexceed 10 per cent <strong>of</strong> <strong>the</strong> ex-works price <strong>of</strong> <strong>the</strong> end product forwhich originating status is claimed.4. For <strong>the</strong> purposes <strong>of</strong> paragraph 3, <strong>the</strong> conditions for acquiring originating statusset out in Title II shall not apply to working or processing done outside an EFTA Stateor Serbia. But where, in Appendix 2, a rule setting a maximum value for all <strong>the</strong> nonoriginatingmaterials incorporated is applied in determining <strong>the</strong> originating status <strong>of</strong> <strong>the</strong>end product, <strong>the</strong> total value <strong>of</strong> <strong>the</strong> non-originating materials incorporated in <strong>the</strong> territory<strong>of</strong> <strong>the</strong> Party concerned, taken toge<strong>the</strong>r with <strong>the</strong> total added value acquired outside <strong>the</strong>EFTA State concerned or Serbia by applying <strong>the</strong> provisions <strong>of</strong> this Article, shall notexceed <strong>the</strong> stated percentage.5. For <strong>the</strong> purposes <strong>of</strong> paragraphs 3 <strong>and</strong> 4, “total added value” means all costsarising outside <strong>the</strong> EFTA State concerned or Serbia, including <strong>the</strong> value <strong>of</strong> <strong>the</strong> materialsincorporated <strong>the</strong>re.6. Paragraphs 3 <strong>and</strong> 4 shall not apply to products which do not fulfil <strong>the</strong> conditionsset out in Appendix 2 or which can be considered sufficiently worked or processed onlyif <strong>the</strong> general tolerance fixed in paragraph 2 <strong>of</strong> Article 6 is applied.7. The provisions <strong>of</strong> paragraphs 3 <strong>and</strong> 4 shall not apply to products <strong>of</strong> Chapters 50to 63 <strong>of</strong> <strong>the</strong> Harmonized System.8. Any working or processing <strong>of</strong> <strong>the</strong> kind covered by <strong>the</strong> provisions <strong>of</strong> this Article<strong>and</strong> done outside an EFTA State or Serbia shall be done under <strong>the</strong> outward processingarrangements, or similar arrangements.Article 13Direct Transport1. The preferential treatment provided for under this Agreement applies only toproducts, satisfying <strong>the</strong> requirements <strong>of</strong> this Protocol, which are transported directly<strong>between</strong> <strong>the</strong> Parties or through <strong>the</strong> territories <strong>of</strong> <strong>the</strong> o<strong>the</strong>r countries referred to inArticles 3 <strong>and</strong> 4 with which cumulation is applicable. However, products constituting

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