AGREEMENTbetween the European Economic Community and the Republic of Pakistan on trade in textile productsDone at Brussels on 12 September 1986THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF PAKISTAN,of the other part,DESIRING to promote, with a view to permanent cooperation and in conditions providing every security for trade, the orderly and equitable development of trade in textile products between the European Economic Community (hereinafter referred to as 'the Community') and the Islamic Republic of Pakistan ('hereinafter referred to as 'Pakistan'),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, and in particular, to eliminate real risks of market disruption on the market of the Community and real risks of disruption to the textile trade of Pakistan,HAVING REGARD to the Arrangement regarding International Trade in Textiles (hereinafter referred to as 'the Geneva Arrangement'), and in particular Article 4 thereof and to the conditions set out in the Protocol extending the 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 THE ISLAMIC REPUBLIC OF PAKISTAN: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 Pakistan which are listed in Annex I.2. The classification of the products covered by this Agreement is based on the Nomenclature 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 of the International Convention on the Harmonised 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.Any amendment to these rules of origin shall be communicated to Pakistan and shall not have the effect of reducing any quantitative limit established in Annex II.The procedures for control of the origin of the products referred to above are laid down in Protocol A.Article 3Pakistan agrees for each Agreement year to restrain its exports to the Community of the products described in Annex II to the limits set out therein.Exports of textile products set out in Annex II shall be subject to a double-checking system specified in Protocol A.Article 4Pakistan and the Community recognize the special and differential character of re-imports of textile products into the Community after processing in Pakistan.Provided that they are effected in accordance with the regulations on economic outward processing in force in the Community, these re-imports are not subject to the quantitative limits set out in Annex II when they are subject to the arrangements laid down in Protocol E.Article 5Exports of cottage industry fabrics woven on hand- or foot-operated looms, garments or other articles obtained manually from such fabrics and traditional folklore handicraft products shall not be subject to quantitative limits, provided that these products meet the conditions laid down in Protocol B.Article 61. Imports into 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 Pakistani authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community authorities have evidence that imports of textile products have been set off against a quantitative limit established under this Agreement, but that the products have subsequently been re-exported outside the Community, the authorities concerned shall inform the Pakistani authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products, which shall not be set off