TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 172

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Where export contracts involve sub-contracting both in momber countries of the Duropean Communities and in non-member countries,,the sub-contracting in member countries shall be automatically included, in ro far a.. the total gul-

the limits contracting in all countries does not exceed the percentages

as fixed in paragraph 1 by reference to the value of the contract.

3. It is understood that, on a reciprocal basis, the foreign origin of the sub-contracted items which are included according to the procedure referred to will not lead to discrimination where financing of these items is concerned.

SECTION TI! EXCHANGE OF INFORMATION

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A subsequent exchange of information shall take place within the framework of the Policy Coordination Group for Credit insurance, Credit Guarantees and Financial Credits as regards individual contracts in re pect of which the sub-contracting in non-mether countries exceeds 30 per cent and, in respect of mixed sub-contracting both in mother and non-member countries where their total value excecde that rercentage.

Such exchange of information shall, however, only take place for individual contracts exceeding 500 000 units of account in value and involving credit for a period of more than three years.

The following shall apply:

such individual contracts are to be considered as exceptional; .

a study may at any time be made within the Coordination Group of the difficulties which may arise in connection with certain individual contracts reported within the framework of the subsequent exchange of information;

if experience shows that the subsequent exchange of information procedure is unsatisfactory, the Commission and the Member States may request that ways and means be sought of remedying those aspects that are found to be unsatisfactory.

2 Where a Member State proposes to conclude with a non-member country an agreement relating to inclusion of sub-contracts on a recioronal basis, the Member State concerned shall submit a preliminary notification to be followed by consultations within the framework of the Policy Coordination Group for Credit Insurance, Credit Guarantees and Financial Credits. percentages relating to automatis inclusion allowable in such agreements may not unless the Council decides otherwise exceed 30 per cent irrespective of whether the sub-contracting s in the non-member country with which the

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The

agreement has been made or whet er sub-contracting in other countries is involved.

SECTION IV

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ALCULATION BASIS OF CALCULA

The percentages and amounts referred to shall be calculated in accordance with the following rules:

costs incidental to ex rt, ie transport and insurance, are included in the total amount of he contract on which these percentages and amounts are calculated:

D.D. 992/72 (3 557)