Principle of territoriality
1. Except as provided for in Article 2(1)(c) and Articles 3 and 4, the conditions for acquiring originating status set out in Chapter II must be fulfilled at all times and without interruption in the Community or in Ceuta and Melilla.
2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Ceuta and Melilla to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:
(a) the returning goods are the same as those which were exported; and
(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.
Direct transport
1. The preferential treatment provided for under this Regulation applies only to products satisfying the requirements of this Regulation, which are transported directly between the Community and Ceuta and Melilla or through the territories of the other countries referred to in Articles 3 and 4.
However, products constituting one single consignment may be transported through other territories with, where necessary, transhipment or temporary warehousing in those 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 other operation intended to preserve them in good condition.
Originating products may be transported by pipeline across territories other than those referred to in the first subparagraph.
2. Evidence that the conditions referred to in paragraph 1 have been fulfilled shall be supplied to the competent customs authorities in the Community or Ceuta and Melilla by the production of:
(a) a single transport document covering the passage through the country of transit; or
(b) a certificate issued by the customs authorities of the country of transit:
(i) giving an exact description of the products;
(ii) stating the dates of unloading and reloading of the products and, where applicable, an indication of the ships, or the other means of transport used; and
(iii) certifying the conditions under which the products remained in the transit-country; or
(c) failing these, any substantiating documents.
Exhibitions
1. Originating products, sent for exhibition in a country other than those referred to in Articles 3 and 4 and, after the exhibition, sold and imported into the Community or Ceuta and Melilla, shall benefit on importation from the provisions of Protocol 2 to the Act of Accession of Spain and Portugal, provided it is shown to the satisfaction of the customs authorities that:
(a) an exporter has consigned these products from the Community or Ceuta and Melilla to the country in which the exhibition was held and has exhibited them there;
(b) the products have been sold or otherwise disposed of by that exporter to a person in the Community or in Ceuta and Melilla;
(c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and
(d) 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 Chapter V and submitted to the competent customs authorities in the Community or Ceuta and Melilla in the normal manner. The name and address of the exhibition must be indicated on it. Where necessary, additional documentary evidence of the nature of the products and 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.
CHAPTER IV
DRAWBACK OR EXEMPTION OF CUSTOMS DUTIES
