1. Serbia shall participate in the Single Market Programme in accordance with the conditions laid down in the Framework Agreement between the European Community and the Republic of Serbia on the General Principles for the participation of Serbia in Community Programmes, and under the terms and conditions set forth in this Agreement, in the legal act referred to in

Article 1

of this Agreement, as well as in any other rules pertaining to the implementation of the Single Market Programme, in their most up to date versions.

2. Unless otherwise provided for in the terms and conditions referred to in

paragraph 1 of this Article

, legal entities established in Serbia may participate in actions of the Single Market Programme under conditions equivalent to those applicable to legal entities established in the Union, including respect for EU restrictive measures4.

3. Representatives of Serbia shall have the right to participate as observers in the committees referred to in Article 21.1 of the Regulation (EU) 2021/690 of the European Parliament and of the Council, without voting rights and for points which concern Serbia. The committee shall meet without the presence of representatives of Serbia at the time of voting. Serbia will be informed of the result.

4. Travel costs and subsistence expenses incurred by representatives and experts of Serbia for the purposes of taking part as observers in the work of the committees referred to in Article 21.1 of the Regulation (EU) 2021/690 of the European Parliament and of the Council, or in other meetings related to the implementation of the Single Market Programme, shall be reimbursed by the European Union on the same basis as and in accordance with the procedures in force for representatives of the Member States of the European Union.

5. Serbia shall take all necessary measures, as appropriate, to ensure that goods and services, purchased in Serbia or imported into Serbia, which are partially or entirely financed pursuant to the grant agreements and/or contracts concluded for the realization of the activities in accordance with this Agreement, are exempted from customs duties, import duties and other fiscal charges, including the VAT, that are applicable in Serbia.