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1. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex B are fulfilled. Those conditions indicate, for all products covered by Protocol 2 to the Act of Accession of Spain and Portugal, the working or processing which must be carried out on non-originating materials used in manufacturing those products and apply only in relation to those materials. Accordingly, it follows that if a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2. By way of derogation from paragraph 1, non-originating materials which, according to the conditions set out in the list in Annex B in respect of a given product, should not be used in the manufacture of that product may nevertheless be used, provided that:

(a) their total value does not exceed 10 % of the ex-works price of the product;

(b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph. This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

3. Paragraphs 1 and 2 shall apply except as provided in Article 7.