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1. For the purposes of implementing Decision No 2/2000 of the Joint Council under the Interim Agreement on Trade and Trade-related matters between the European Community and Mexico:

(a) The term ‘MFN’ shall be taken to mean the lowest rate of duty appearing in column 3 or 4, taking into account the periods of application mentioned or referred to in that column, of the second part of Annex I of Regulation (EEC) No 2658/87. However, it shall not mean a duty set up within the framework of a tariff quota under Article 26 of the Treaty or under Annex 7 to Regulation (EEC) No 2658/87.

(b) Subject to paragraph 2, the final rate of preferential duty shall be rounded down to the first decimal place.

2. Where the result of calculating the rate of preferential duty is one of the following, the preferential rate shall be considered a full exemption:

(a) 1 % or less in the case of ad valorem duties, or (b) EUR 0,5 or less per individual euro amount in the case of specific duties.

3. Wherever customs duties comprise an ad valorem duty plus one or more specific duties, the preferential reduction is limited to the ad valorem duty where it is so provided in Article 8 of Decision No 2/2000. Where the customs duties comprise an ad valorem duty with a minimum and maximum duty, the preferential reduction also applies to that minimum and maximum duty. Where they comprise more than one specific duty, the preferential reduction applies to all of these.