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1. Community rules applicable to the United Kingdom for trade in agricultural products covered by Annex II to the Treaty establishing the European Economic Community and in goods covered by Regulation No 170/67/EEC and Regulation (EEC) No 1059/69, shall apply to the islands, with the exception of rules on refunds and on compensatory amounts granted on exports by the United Kingdom.

2. For the purpose of applying the rules referred to in paragraph 1, the United Kingdom and the islands shall be treated as a single Member State.

3. No refund or compensatory amount shall be granted in respect of the products referred to in paragraph 1, originating in or coming from these islands, in respect of which customs formalities are completed in a Member State.

4. Where the products referred to in paragraph 1 are exported to third countries, the islands may not grant aid in excess of the refunds or compensatory amounts which may be granted by the United Kingdom, in accordance with Community rules, on exports to third countries.

5. Where the products referred to in paragraph 1 are exported to Member States, the islands may not grant aid in excess of any amounts which may be granted by the United Kingdom, in accordance with Community rules, on exports to other Member States.