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1. The preferential arrangements referred to in Article 1(2) may be withdrawn temporarily, in respect of all or of certain products originating in a beneficiary country, for any of the following reasons:

(a) serious and systematic violation of principles laid down in the conventions listed in Part A of Annex VIII;

(b) export of goods made by prison labour;

(c) serious shortcomings in customs controls on the export or transit of drugs (illicit substances or precursors), or failure to comply with international conventions on anti-terrorism and money laundering;

(d) serious and systematic unfair trading practices including those affecting the supply of raw materials, which have an adverse effect on the Union industry and which have not been addressed by the beneficiary country. For those unfair trading practices, which are prohibited or actionable under the WTO Agreements, the application of this Article shall be based on a previous determination to that effect by the competent WTO body;

(e) serious and systematic infringement of the objectives adopted by Regional Fishery Organisations or any international arrangements to which the Union is a party concerning the conservation and management of fishery resources.

2. The preferential arrangements provided for in this Regulation shall not be withdrawn under point (d) of paragraph 1 in respect of products that are subject to anti-dumping or countervailing measures under Council Regulation (EC) No 597/2009 of 11 June 2009 on protection against subsidised imports from countries not members of the European Community () or Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community (), for the reasons justifying those measures.

3. Where the Commission considers that there are sufficient grounds justifying temporary withdrawal of the tariff preferences provided under any preferential arrangement referred to in Article 1(2) on the basis of the reasons referred to in paragraph 1 of this Article it shall adopt an implementing act to initiate the procedure for temporary withdrawal in accordance with the advisory procedure referred to in Article 39(2). The Commission shall inform the European Parliament and the Council of that implementing act.

4. The Commission shall publish a notice in the Official Journal of the European Union announcing the initiation of a temporary withdrawal procedure, and shall notify the beneficiary country concerned thereof. The notice shall:

(a) provide sufficient grounds for the implementing act to initiate a temporary withdrawal procedure, referred to in paragraph 3; and (b) state that the Commission will monitor and evaluate the situation in the beneficiary country concerned for six months from the date of publication of the notice.

5. The Commission shall provide the beneficiary country concerned with every opportunity to cooperate during the monitoring and evaluation period.

6. The Commission shall seek all information it considers necessary, inter alia, the available assessments, comments, decisions, recommendations and conclusions of the relevant monitoring bodies, as appropriate. In drawing its conclusions, the Commission shall assess all relevant information.

7. Within three months from the expiry of the period referred to in point (b) of paragraph 4, the Commission shall submit a report on its findings and conclusions to the beneficiary country concerned. The beneficiary country has the right to submit its comments on the report. The period for comments shall not exceed one month.

8. Within six months from the expiry of the period referred to in point (b) of paragraph 4 the Commission shall decide:

(a) to terminate the temporary withdrawal procedure; or (b) to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2).

9. Where the Commission considers that the findings do not justify temporary withdrawal, it shall adopt an implementing act, in accordance with the advisory procedure referred to in Article 39(2), on the termination of the temporary withdrawal procedure.

10. Where the Commission considers that the findings justify temporary withdrawal for the reasons referred to in paragraph 1 of this Article, it shall be empowered, in accordance with Article 36, to adopt delegated acts to amend Annexes II, III or IV, whichever is applicable, in order to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2).

11. For either of the cases referred to in paragraphs 9 and 10, the adopted act shall be based, inter alia, on evidence received.

12. Where the Commission decides on temporary withdrawal, such delegated act shall take effect six months after its adoption.

13. Where the reasons justifying temporary withdrawal no longer apply before the delegated act referred to in paragraph 10 of this Article takes effect, the Commission shall be empowered to repeal the adopted act to temporarily withdraw the tariff preferences in accordance with the urgency procedure referred to in Article 37.

14. The Commission shall be empowered to adopt delegated acts, in accordance with Article 36, to establish rules related to the procedure for temporary withdrawal of all arrangements in particular with respect to deadlines, rights of parties, confidentiality and review.