AGREEMENT between the European Economic Community and Hong Kong on trade in textile products Done at Brussels on 2 October 1986THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF HONG KONG,of the other part,RECOGNIZING the importance of trade in textile products between the European Economic Community (hereinafter referred to as the 'Community', and Hong Kong,HAVING REGARD to the Arrangement regarding International Trade in Textiles, and in particular Article 4 thereof, and to the Protocol adopted on 31 July 1986 in accordance with the Conclusions of the Textiles Committee forming an integral part of the Protocol, which Arrangement and Protocol are hereinafter referred to as the 'Geneva Arrangement',HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN COMMUNITIES:THE GOVERNMENT OF HONG KONG:WHO HAVE AGREED AS FOLLOWS:SECTION ITrade arrangementsArticle 11. The parties recognize and confirm that, subject to the provisions of this Agreement and without prejudice to their rights and obligations under the General Agreement on Tariffs and Trade, the conduct of their mutual trade in textile products shall be governed by the provisions of the Geneva Arrangement.2. In respect of the products covered by this Agreement, the Community undertakes not to introduce quantitative restrictions under Article XIX of the General Agreement on Tariffs and Trade or Article 3 of the Geneva Arrangement.3. Measures having equivalent effect to quantitative restrictions on the importation into the Community of the products covered by this Agreement shall be prohibited.Article 21. This Agreement shall apply to trade in textile products of cotton, wool and man-made fibres originating in Hong Kong which are listed in Annex I.2. The classification of the products covered by this Agreement is based on the nomendature of the Common Customs Tariff and on the Nomenclature of Goods for the External Trade Statistics of the Community and the Statistics of Trade between Member States (NIMEXE).From the entry into force in the Community of the International Convention on the Harmonized Commodity Description and Coding System (HS) this classification will be based on the Harmonized System and on the Community nomenclatures derived from that system.3. The origin of the products covered by this Agreement shall be determined in accordance with the rules in force in the Community and the procedures for control of the origin of the products set out in Protocol A.Article 3Hong Kong agrees to restrain its exports to the Community of the products described in Annex II to the limits set out therein for each Agreement year.Exports of textile products set out in Annex II shall be subject to a double-checking system specified in Protocol A.Article 4Hong Kong and the Community recognize the special and differential character of re-imports of textile products into the Community after processing in Hong Kong.Such re-imports may be provided for outside the quantitative limits established under this Agreement provided that they are effected in accordance with the regulations on economic outward processing in force in the Community.Article 51. Exports to the Community of textile products covered by this Agreement shall not be subject to the quantitative limits established in Annex II, provided that they are declared to be for re-export outside the Community in the same state or after processing, within the framework of the administrative system of control which exists within the Community.However, the release for home use of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Hong Kong authorities and to proof of origin, in accordance with the provisions of Protocol A.2. Where the competent authorities in the Community have evidence that products exported from Hong Kong and set off by Hong Kong against a quantitative limit established in Annex II have been subsequently re-exported outside the Community, the authorities concerned shall notify Hong Kong of the quantities involved. Upon receipt of such notification, Hong Kong may authorize exports for the current or the following Agreement year of identical quantities of products, within the same category, which shall not be set off against the quantitative limits established in Annex II.Article 61. In any one Agreement year advance use of a portion of the quantitative limit established for the following Agreement year may be agreed following consultations in accordance with the procedures referred to in Article 14 (1) for each category of products between 1 % and 5 % of the quantitative limit for the current Agreement year. Amounts delivered in advance shall be deducted from the corresponding quantitative limits established for the following Agreement year.2. Carryover to the corresponding quantitative limit for the following Agreement year of amounts not used duringany one Agreement year may be agreed following consultations in accordance with the procedures referred to in Article 14 (1) for each category of product between 2 % and 7 % of the quantitative limit for the current Agreement year.3.