PART IICUSTOMS-APPROVED TREATMENT OR USE
F1TITLE IIICUSTOMS PROCEDURES WITH ECONOMIC IMPACT
CHAPTER 1Basic provisions common to more than one of the arrangements
Section 4Economic conditions
Article 502
1.
Except where the economic conditions are deemed to be fulfilled pursuant to Chapters 3, 4 or 6, the authorisation shall not be granted without examination of the economic conditions by the customs authorities.
2.
For the inward processing arrangements (Chapter 3), the examination shall establish the economic unviability of using Community sources taking account in particular of the following criteria, the details of which are laid down in Part B of Annex 70:
(a)
unavailability of Community-produced goods sharing the same quality and technical characteristics as the goods intended to be imported for the processing operations envisaged;
(b)
differences in price between Community-produced goods and those intended to be imported;
(c)
contractual obligations.
3.
For the processing under customs control arrangements (Chapter 4), the examination shall establish whether the use of non-Community sources enables processing activities to be created or maintained in the Community.
4.
For the outward processing arrangements (Chapter 6), the examination shall establish whether:
(a)
carrying out processing outside the Community is likely to cause serious disadvantages for Community processors; or
(b)
carrying out processing in the Community is economically unviable or is not feasible for technical reasons or due to contractual obligations.
Article 503
An examination of the economic conditions involving the Commission may take place:
- (a)
if the customs authorities concerned wish to consult before or after issuing an authorisation;
- (b)
if another customs administration objects to an authorisation issued;
- (c)
on the initiative of the Commission.
Article 504
1.
Where an examination in accordance with Article 503 is initiated, the case shall be sent to the Commission. It shall contain the results of the examination already undertaken.
2.
The Commission shall send an acknowledgement of receipt or notify the customs authorities concerned when acting on its own initiative. It shall determine in consultation with them whether an examination of the economic conditions in the Committee is required.
3.
Where the case is submitted to the Committee, the customs authorities shall inform the applicant, or holder, that such a procedure has been initiated and, if the handling of the application is not completed, that the time limits laid down in Article 506 have been suspended.
4.
The Committee's conclusion shall be taken into account by the customs authorities concerned and by any other customs authorities dealing with similar authorisations or applications.
This conclusion may include its publication in the C series of the Official Journal of the European Communities .