CHAPTER IIAREA OF APPLICATION OF LICENCES AND CERTIFICATES
Article 3
1
Where products which are subject to inward-processing arrangements and which do not contain basic products as referred to in paragraph 2(a) are placed in free circulation, then, insofar as the products actually placed in free circulation are subject to an import licence, such a licence must be produced.
2
Where products which are subject to either of the arrangements referred to in paragraph 1 and which contain both:
a
one or more basic products which came within the terms of Article 23(2) of the Treaty but no longer do so as a result of their incorporation in the products put into free circulation; and
b
one or more basic products which did not come within the terms of Article 23(2) of the Treaty,
are placed in free circulation then, notwithstanding Article 7(1) of this Regulation, for each basic product referred to in point (b) of this paragraph actually used and being a product subject to an import licence, such a licence shall be produced.
However, an import licence shall not be required where the product actually placed in free circulation is not subject to such a licence.
3
The import licence or licences produced when a product as referred to in paragraph 1 or 2 is placed in free circulation may not provide for advance fixing.
4
On exportation of a product subject to either of the arrangements referred to in paragraph 1 and containing one or more of the basic products referred to in paragraph 2(a), then for each such basic product, being a product subject to an export licence, such licence shall be produced.
However, subject to the third subparagraph concerning the advance fixing of refunds, an export licence shall not be required when the product actually exported is not subject to such a licence.
On exportation of compound products qualifying for an export refund fixed in advance on the basis of one or more of their components, the customs status of each such component shall be the sole element to be taken into account when applying the system of licences and certificates.