(1) Subject to the following provisions of these Regulations, goods shall be treated as having been grown or having been the produce of, or having been manufactured in a Community Territory, if—
(a) they have been wholly produced within the Community; or
(b) they have been produced within the Community wholly or partly from materials imported from outside the Community or of undetermined origin by a process which effects a substantial transformation characterised—
(i) by the goods being classified in a tariff heading different from that in which any of those materials is classified, or
(ii) in the case of the goods listed in Part A of Schedule 4, only by satisfying the conditions therefor specified in that Part.
(2) In the case of the goods specified in Part B of Schedule 4 the conditions to be complied with shall be as set out in that Part with effect from the dates appearing against the respective goods in lieu of the conditions applicable prior to those dates in respect of each of those goods.
(3) For the purposes of subregulation (1)(a) or (1)(b), in ascertaining whether goods have undergone any operation or process of production or manufacture in the Community, no account shall be taken of any of the following whether or not there is a change of tariff heading—
(a) operations to ensure the preservation of goods during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solution, removal of damaged parts, and like operations);
(b) simple operations consisting of removal of dust, sifting or screening, sorting, grading, classifying, matching (including the making up of sets of articles), washing, painting and cutting up resulting in the mere reduction in size;
(c)
(i) changes of packing,
(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards and other simple packing operations;
(d) affixing marks, labels or other like distinguishable signs on goods or their packing;
(e) simple mixing of materials imported from outside the Community or of undetermined origin if the characteristics of the goods as a whole are not essentially different from the characteristics of the materials which have been mixed;
(f) operations which consist solely of welding, soldering, fastening, riveting, bolting and like operations, or otherwise putting together of all finished parts or components to constitute a finished product.
(4) For the purpose of subregulation (3)(f), in the expression “finished parts or components” refers to those articles which are imported into the Common Market in a form or condition which does not require any further fabrication, change in shape or form resulting in a change in identity or use or the application of permanent protective/decorative coating, for the purposes of incorporation in the finished product.
(5) Goods of the following descriptions shall be considered to be wholly produced in the Community in accordance with subregulation (1)—
(a) mineral products extracted from the ground within the Community;
(b) vegetable products harvested within the Community;
(c) live animals born and raised within the Community;
(d) products obtained within the Community from live animals;
(e) products obtained by hunting or fishing conducted within the Community;
(f) marine products taken from the sea by a vessel of a Community Territory;
(g) used articles fit only for the recovery of materials if they have been collected from users within the Community;
(h) scrap and waste resulting from manufacturing operations within the Community;
(i) goods produced within the Community exclusively from one or both of the following—
(i) goods referred to in paragraphs (a) to (h),
(ii) goods containing no materials imported from outside the Community or of undetermined origin, or containing those materials but which would not be regarded as such under regulation 15(2).
(6) Wherever in subregulation (1) goods are required to be wholly produced, the use of small quantities of preservatives, vitamins, colouring and similar materials imported from outside the Community or of undetermined origin shall not affect their eligibility for Community treatment as wholly produced.