1. Contracting Parties applying a UN Regulation may, on application by the manufacturer, grant exemption approval pursuant to a UN Regulation in respect of a vehicle, equipment or part that incorporates technologies which are incompatible with one or more requirements of that UN Regulation, subject to authorization being granted by the Administrative Committee of the 1958 Agreement under the procedure described in paragraphs 2 to 12 of this Schedule.

2. Pending the decision on whether or not authorization for such an exemption approval is granted, the Contracting Party applying the UN Regulation may grant provisional approval for its territory only. Other Contracting Parties applying that UN Regulation may decide to accept this provisional approval in their territory.

3. The Contracting Party granting the provisional approval mentioned in paragraph 2 of this Schedule shall notify the Administrative Committee of its decision and submit a file with the following:

a) The reasons why the technologies or concept concerned make the vehicle, equipment or part incompatible with the requirements of the UN Regulation;

b) A description of the safety, environmental or other considerations and the measures taken;

c) A description of the tests and results, demonstrating that, compared with the requirements from which exemption is sought, at least an equivalent level of safety and environmental protection is ensured;

d) A request for authorization to grant an exemption approval to the UN Regulation for the type of vehicle, equipment or part.

4. The Administrative Committee shall consider the complete notification referred to in paragraph 3 of this Schedule at its next session following receipt of the notification, provided this notification was received at least three months prior to the session. After considering the notification, the Administrative Committee may decide to authorize or to refuse the granting of the exemption approval or to refer the issue to the competent subsidiary Working Party.

5. The decision of the Administrative Committee shall be established in accordance with the procedure indicated in the Appendix, Article 8.

6. The requested exemption approval pursuant to a UN Regulation, mentioned under paragraph 3 of this Schedule, will be considered to be authorized unless, within a period of one month from the notification by the Executive Secretary of the United Nations Economic Commission for Europe of the Administrative Committee's authorization decision, more than one-fifth of the Contracting Parties applying the UN Regulation at the time of notification have informed the Executive Secretary of the United Nations Economic Commission for Europe of their disagreement with the authorization of the exemption approval.

7. When the authorization for granting the exemption approval is adopted, the Executive Secretary of the United Nations Economic Commission for Europe shall, as soon as possible, notify the Contracting Parties applying the concerned UN Regulation about this adoption.

As from the date of that notification the Contracting Party referred to in paragraph 3 of this Schedule may then deliver the exemption approval pursuant to the UN Regulation. The exemption approval shall be accepted by the Contracting Parties applying the UN Regulation, with the exception of those who have notified their disagreement, or their intention not to accept the exemption approval immediately, to the Executive Secretary of the United Nations Economic Commission for Europe. The Contracting Parties which have notified their disagreement, or their intention not to accept the exemption approval immediately, with the authorization by the Administrative Committee may at a later date accept the exemption approval by notifying the Executive Secretary of the United Nations Economic Commission for Europe of their decision.

8. The Administrative Committee shall specify any restrictions in the authorization decision. Time limits shall not be less than thirty-six months. Contracting Parties applying the UN Regulation shall accept the exemption approval at least until the expiration of the time limit, if any, or, when the UN Regulation in question is subsequently amended as per paragraphs 9 and 10 of this Schedule in order to take into account the technology covered by the exemption approval, until the date, as from which Contracting Parties may refuse approvals to the previous version of the UN Regulation, whichever of these two dates comes first.

The Contracting Party authorized to grant the exemption approval shall ensure that the manufacturer fully complies with all restrictions associated with this approval and that the communication form clearly indicates that it is based on an exemption authorized by the Administrative Committee.

9. The Administrative Committee shall at the same time inform the subsidiary Working Party responsible for the UN Regulation about the authorization to grant the exemption approval.

The Contracting Party authorized to grant the exemption approval shall submit to the subsidiary Working Party responsible for the UN Regulation a proposal to amend the UN Regulation for which the exemption approval was requested, in order to adapt it to the technological development. This submission shall be made not later than by the next session of the subsidiary Working Party following the notification of the Administrative Committee authorization decision according to paragraph 6 of this Schedule.

10. As soon as the UN Regulation has been amended to take into account the technology for which the exemption approval was granted, and entered into force, the manufacturer shall be authorized to apply for type approval pursuant to the amended UN Regulation, in replacement of the previously granted exemption approval to that UN Regulation. The approval authority granting that type approval shall, as soon as reasonable, withdraw the exemption approval or inform the approval authority which granted the exemption approval that this exemption approval is to be withdrawn.

11. If the procedure to amend the UN Regulation is not completed before the expiration of the time limit defined in paragraph 8 of this Schedule, the validity of the exemption approval may be extended, at the request of the Contracting Party which granted the exemption approval, subject to a decision adopted in accordance with the procedure described in paragraphs 2 and 3 of this Schedule. If, however, the Contracting Party which has been authorized to grant the exemption approval failed to submit a proposal to amend the UN Regulation before the deadline specified in paragraph 9 of this Schedule, that Contracting Party shall immediately withdraw this exemption approval, taking however into account the time limit as defined in paragraph 8 of this Schedule. The Contracting Party which withdrew the exemption approval shall inform the Administrative Committee accordingly at its next session.

12. If the Administrative Committee decides to refuse an authorization to grant an exemption approval, the Contracting Party which issued the provisional approval referred to in paragraph 2 of this Schedule may withdraw this provisional approval. In this case, that Contracting Party shall immediately give notice to the holder of the provisional approval that this provisional approval, granted in accordance with paragraph 2 of this Schedule, will be withdrawn six months after the date of the decision taking into account that the provisional approval shall be valid at least for twelve months from the date of its granting.