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1. The preferential arrangements provided for in this Regulation may be temporarily withdrawn, in respect of all or of certain products, originating in a beneficiary country, in cases of fraud, irregularities or systematic failure to comply or to ensure compliance with the rules of origin of products and the procedures related thereto, and to provide the administrative cooperation as required for the implementation and the control of the respect of the arrangements referred to in Article 1(2).

2. The administrative cooperation referred to in paragraph 1 requires, inter alia, that a beneficiary country:

(a) communicate to the Commission and update the information necessary for the implementation of the rules of origin and the control of respect thereof;

(b) assist the Community by carrying out, on request of the customs authorities of Member States, subsequent verification of origin and communicate its results in time;

(c) assist the Community by allowing the Commission, in coordination and close cooperation with the competent authorities of the Member States, to conduct Community administrative and investigative cooperation missions in that country, in order to verify the authenticity of documents or the accuracy of information relevant for granting the benefit of the arrangements referred to in Article 1(2);

(d) carry out or arrange for appropriate inquiries to identify and prevent contravention of the rules of origin;

(e) comply or ensure compliance with the rules of origin in respect of regional cumulation, within the meaning of Regulation (EEC) No 2454/93, if the country benefits therefrom;

(f) assist the Community in the verification of conduct where there is a presumption of origin-related fraud. The existence of fraud may be presumed where imports of products under the preferential regimes granted under this Regulation massively exceed the usual levels of exports of the beneficiary country.

3. The Commission may suspend the preferential arrangements provided for in this Regulation in respect of all or of certain products, originating in a beneficiary country, where it considers that there is sufficient evidence that temporary withdrawal would be justified for the reasons referred to in paragraphs 1 and 2, provided that it has first:

— informed the Committee;

— called on the Member States to take such precautionary measures as are necessary in order to safeguard the Community's financial interests and/or secure compliance by the beneficiary country with its obligations;

— published a notice in the Official Journal of the European Union stating that there are grounds for reasonable doubts about the application of the preferential arrangements and/or compliance by the beneficiary country with its obligations, which may call into question its right to continue enjoying the benefits granted by this Regulation. The Commission shall inform the beneficiary country concerned of any decision taken in accordance with this paragraph, before it becomes effective. The Commission shall also notify the Committee thereof.

4. Any Member State may refer a decision taken in accordance with paragraph 3 to the Council within 1 month. The Council, acting by a qualified majority, may take a different decision within 1 month.

5. The period of suspension shall not exceed 6 months. On conclusion of the period, the Commission shall decide either to terminate the suspension after informing the Committee or to extend the period of suspension in accordance with the procedure referred to in paragraph 3.

6. Member States shall communicate to the Commission all relevant information that may justify suspension of preferences or its extension.