ADDITIONAL PROTOCOL to the Europe Agreement on trade in textile products between the European Economic Community and the Republic of HungaryTHE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF HUNGARY,of the other part,DESIRING to promote, with a view to permanent cooperation and in conditions providing the utmost security for trade, the mutual expansion and orderly and equitable development of trade in textile products between the European Economic Community (hereinafter the 'Community`) and the Republic of Hungary (hereinafter 'Hungary`),RESOLVED to take the fullest possible account of the serious economic and social problems at present affecting the textile industry in both importing and exporting countries, in particular in order to eliminate the real dangers of damage to both the Community and Hungarian markets for textile products,BEARING IN MIND the objectives of the Europe Agreement between the Community and Hungary signed in Brussels on 16 December 1991 and, in particular, those referred to in Article 1 thereof,HAVING REGARD to the Europe Agreement and in particular Article 15 thereof,HAVING REGARD to the Interim Agreement between the Community and Hungary signed in Brussels on 16 December 1991 and in particular to Article 9 thereof,HAVING REGARD to Protocol 1 on textile and clothing products to the Europe Agreement and to the Interim Agreement, and in particular to Article 3 thereof,HAVE DECIDED to conclude this Protocol and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN COMMUNITIES:THE GOVERNMENT OF THE REPUBLIC OF HUNGARY:WHO HAVE AGREED AS FOLLOWS:Article 11. The further development of trade and industrial cooperation between the textile and clothing industries in the Community and in Hungary is an underlying principle of this Protocol which establishes the quantitative arrangements applicable to trade in textile and clothing products (hereinafter 'textile product`) originating in Hungary and in the Community, which are listed in Annex I A and I B to this Protocol.2. Under the terms of this Protocol, all quantitative restrictions and measures of equivalent effect on imports in both Parties on textile products originating in the other Party, shall be eliminated at the end of the period referred to in Agreed Minute No 5.3. Consultations will be held during the third year of application of this Protocol on the global situation and progress towards final liberalization.Article 21. The classification of the products covered by this Protocol and imported into the Community is based on the tariff and statistical nomenclature of the Community (hereinafter called the 'combined nomenclature` or, in abbreviated form, 'CN`) and any amendments thereof. The Hungarian customs tariff shall be applied to the classification of goods for imports into Hungary.2. The Parties agree that the introduction of changes, such as changes in practices, rules, procedures and categorization of textile products, including those changes relating to the Harmonized System and the combined nomenclature, in the implementation or administration of those restrictions applied under this Protocol, should not affect the balance of rights and obligations between the Parties under this Protocol; adversely affect the access available to a Party; impede the full utilization of such access; or disrupt trade under this Protocol. The Party initiating any such changes shall inform the other Party before their entry into force.The procedures for implementation of classification changes are set out in Appendix A.3. The origin of the products covered by this Protocol shall be determined in accordance with the rules of origin in force in the Community.Hungary shall be notified of any amendments to the said rules of origin.The procedures for checking the origin of the textile products are laid down in Appendix A.Article 31. Hungary hereby agrees for each of the years of the Protocol's application to restrain its exports to the Community of the products included in Annex II to the limits set out therein.2. The number and level of quantitative restrictions applied to direct imports of textile products, expressed in terms of Harmonized System ('HS`) codes, of Community origin into Hungary for each year of the Protocol's application are listed in Annex III to this Protocol.3. Unless it is otherwise provided for in this Protocol, Hungary and the Community hereby agree not to introduce new quantitative restrictions or measures of equivalent effect, on trade in textile products between the two Parties, and not to increase the number of existing ones as compared to those in force on 31 December 1992.4. Exports to the Community of textile products listed in Annex II and originating in Hungary shall be subject to a double-checking system as specified in Appendix A.Article 41. Hungary and the Community recognize the special and differential character of reimports of textile products into the Community after processing, manufacturing or working in Hungary as a specific form of industrial and trade cooperation.2. Save where it is otherwise provided for in Appendix B, such reimports into the Community shall not be subject to the quantitative limits of the products