of the Community in relation to the amounts determined in accordance with paragraph 2 of the said Article 6 exceed the following regional percentage:Germany // 25,5 %Benelux // 9,5 %France // 16,5 %Italy // 13,5 %Denmark // 2,7 %Ireland // 0,8 %United Kingdom // 21,0 %Greece // 1,5 %Spain // 7,5 %Portugal // 1,5 %PROTOCOL D The annual growth rate for the quantitative limits introduced pursuant to Article 6 of the Agreement shall be determined as follows:for products in categories falling within Groups II or III, the growth rate shall be fixed by agreement between the Parties in accordance with the consultation procedure established in Article 16 of the Agreement. Such growth rate may in no case be lower than the highest rate applied to corresponding products under bilateral agreements concluded under the Geneva Arrangement between the Community and other third countries having a level of trade equal to or comparable with that of China.PROTOCOL E Re-imports in the sense of Article 4 paragraph 4 of this Agreement into the Community of products listed in the Annex to this Protocol shall be subject to the provisions of the Agreement except as specifically provided for by the particular provisions set out below:1. Only re-imports into the Community subject to the specific quantitative limits set out in the Annex to this Protocol, as may be modified by the application of paragraphs 2 and 3, shall be considered re-imports in the sense of Article 4 paragraph 4.2. Re-imports not covered by the Annex to this Protocol may be submitted to specific quantitative limits following consultations in accordance with the procedures set out in Article 16 of the Agreement, provided the products concerned are subject to the quantitative limits established under Annex III to the Agreement.3. The Community may, at its own discretion, and bearing in mind the interest of both Parties, or in the framework of a request set out in Article 16 of the Agreement:(a) examine the possibilities of transfers between categories and advance use or carry-over of portions of specific quantitative limits from one year to another;(b) consider the scope for reallocating portions of any specific quantitative limits not used in one region of the Community to another region.4. However the Community may automatically carry out the flexibilities in the sense of paragraph 3 up to the following extent:(a) transfer between categories up to 20 % of the share established for the category to which the transfer is made;(b) carry-over of specific quantitative limits from one year to another up to 10,5 % of the share for the year of actual utilization;(c) advance use of specific quantitative limits from one year to another up to 7,5 % of the share for the year of actual utilization.5. The Community shall inform China of any measures taken pursuant to the preceding paragraphs.6. Debiting against a specific quantitative limit referred to in paragraph 1 shall be carried out by the competent authorities of the Community at the time of issuing the prior authorization provided for by the Community regulation on economic outward processing, Regulation (EEC) N° 636/82. A specific quantitative limit shall be debited for the year in which a prior authorization is issued.7. A certificate of origin shall be issued for all products covered by the present Protocol by China in accordance with the provisions of Protocol A of the Agreement, bearing a reference to the prior authorization referred to in paragraph 6 as evidence that the processing operation described in the prior authorization has been carried out in China.8. The Community shall provide China with the names, addresses and the specimens of stamps used by the competent authorities of the Community for the issue of the prior authorizations referred to in paragraph 6.9. Notwithstanding the provisions of paragraphs 1 to 8 above, China and the Community will continue to consult together to seek a mutually acceptable means to enable both parties to take advantage of the OPT provisions in the Agreement with a view to effective development of trade in textiles between China and the Community.Annex to Protocol E OPT quantitative limits (In this Annex the product descriptions used in Annex I are given in abbreviated form)>POSIÇÃO NUMA TABELA> Agreed Minute concerning Article 11In the course of the negotiations on the bilateral Textile Agreement between the European Economic Community and the People's Republic of China initialled on 9 December 1988, the delegation of the Community drew attention to difficulties experienced by importers and industrialists in the Community wishing to import angora, cashmere and raw and waste silk from China, concerning the implementation of commercial contracts.The Chinese authorities undertake to endeavour, in consultation with the organisations responsible for the export of these products, to find remedies to these problems, and to ensure that the quality of the products is improved in order to meet the standards required by European industry.The two
AGREEMENT between the European Economic Community and the People's Republic of China on trade in textile productsInitialled at Brussels on 9 December 1988THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINAof 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 People's Republic of China (hereinafter referred to as 'China'),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 China,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,HAVING REGARD to the Trade and Economic Cooperation Agreement between the Community and China,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 PEOPLE'S REPUBLIC OF CHINA:WHO HAVE AGREED AS FOLLOWS:I. General provisionsArticle 1The Parties recognize and confirm that without prejudice to the rights and obligations under the Trade and Economic Cooperation Agreement between the Community and China the conduct of their mutual trade in textile products shall be governed by the provisions of this Agreement.Article 21. Trade in textile products listed in Annex I and originating within the Contracting Parties shall be liberalizedfor the duration of this Agreement under the conditions set out therein.2. Trade in textile products listed in Annex II and originating within the Contracting Parties shall be covered by this Agreement solely for the purposes of application of the provisions making explicit reference to that Annex.3. Subject to the provisions of this Agreement, the Community undertakes, in respect of the products listed in Annex I, to suspend the application of quantitative import restrictions currently in force and not to introduce new quantitative restrictions under Article 3 of the Geneva Arrangement.4. Measures having equivalent effect to quantitative restrictions on the importation into the Community of the products listes in Annex I shall be prohibited.II. Arrangements for exports to the CommunityArticle 31. China agrees to establish and maintain for each calendar year quantitative limits on its exports to the Community in accordance with Annex III. Such exports shall be subject to a double-checking system specified in Protocol A.2. In administering the quantitative limits referred to in paragraph 1, China shall ensure that the Community textile industry shall benefit from utilization of the said limits.More particularly, as regards categories 2, 3 and 37 China undertakes to reserve, as a priority, 50 % of the quantitative limits concerned for industry users during one hundred and fifteen days beginning on 1 January of each year. For this purpose, contracts made with the industry during the period in question shall be taken into consideration.3. To facilitate the implementation of these provisions the Community shall provide the competent Chinese authorities, before the end of each year, with a list of interested manufacturers and processors and, if possible, of the quantity of products requested for each firm. To this end, the firms concerned are invited to make direct contact with the relevant Chinese bodies by 15 February of the following year, in order to make their purchasing intentions known.Article 41. Imports into the Community of textile products covered by this Agreement shall not be subject to the quantitative limits established in Annex III, 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 Chinese authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community authorities ascertain 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 Chinese authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products, which shall not be set off against the quantitative limit established under this Agreement for the current or the following year.3. Exports of cottage industry fabrics woven on hand- or foot-operated looms, garments or other made-up articles obtained manually from such fabrics and of traditional folklore handicraft products shall not be subject to quantitative limits, provided that these products meet the conditions laid IIIDOUBLE CHECKING SYSTEM FOR CATEGORIES OFPRODUCTS WITH QUANTITATIVE LIMITSSection IExportationArticle 6The competent authorities of China shall issue an export licence in respect of all consignments from China of textile products referred to in Annex III, up to the relevant quantitative limits as may be modified by Articles 5, 9 and 10 of the Agreement and of textile products subject to any definitive or provisional quantitative limits established as a result of the application of Article 6 of the Agreement.Article 71. The export licence shall conform to the model annexed to this Protocol. It must certify inter alia that the quantity of the product in question has been set off against the quantitative limit prescribed for the category of the product in question.2. Each export licence shall cover only one of the categories of products listed in Annex III of this Agreement. It may be used for one or more consignments of the products in question.3. Where the conversion rate provided for in Annex III is applied the following note must be inserted in box 9 of the export licence: 'conversion rate for garments of a commercial size not exceeding 130 cm is to be applied'.4. Where the provisions of Article 3 (2) and Annex III of the Agreement concerning quantities reserved for industry are applied, the following note must be inserted in box 9 of the export licence: 'quantitites reserved for industry'.Article 8The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export licence already issued.Article 91. Exports shall be set off against the quantitative limits established for the year in which shipment of the goods has been effected, even if the export licence is issued after such shipment.2. For the purpose of applying paragraph 1, shipment of the goods is considered to have taken place on the date of their loading on to the exporting aircraft, vehicle or vessel.Article 10The presentation of an export licence, in application of Article 12, shall be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped.Section IIImportationArticle 11Importation into the Community of textile products subject to quantitative limits shall be subject to the presentation of an import authorization or document.Article 121. The competent Community authorities shall issue such import authorization or document automatically within five working days of the presentation by the importer of the original of the corresponding export licence.The import authorization or document shall be valid for six months.2. The competent Community authorities shall cancel the already issued import authorization or document if the corresponding export licence has been withdrawn.However, if the competent Community authorities have not been notified of the withdrawal or cancellation of the export licence until after the products have been imported into the Community, the quantities involved shall be set off against the quantitative limit for the category and the quota year in question.Article 131. If the competent Community authorities find that the total quantities covered by export licences issued by China for a particular category in any Agreement year exceed the quantitative limit established in Annex III for that category, as may be modified by Articles 5, 9 and 10 of the Agreement, or any definitive or provisional limit established under Article 6 of the Agreement, the said authorities may suspend the further issue of import authorizations or documents. In this event, the competent Community authorities shall immediately inform the authorities of China and the special consultation procedure set out in Article 16 of the Agreement shall be initiated forthwith.2. Exports of Chinese origin not covered by Chinese export licences issued in accordance with the provisions of this Protocol may be refused the issue of import authorizations or documents by the competent Community authorities.However, if the import of such products is allowed into the Community by the competent Community authorities, the quantities involved shall not be set off against the appropriate quantitative limits set out in Annex III or established as a result of the application of Article 6 of the Agreement, without the express agreement of China.TITLE IVFORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONSArticle 141. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be in ink and in block capitals.These documents shall measure 210×297 mm. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m². Each part shall have a printed guilloche-pattern background making any falsification by mechanical or chemical means apparent to the eye.If the documents have several copies only the top copy which is the original shall be printed with the guilloche-pattern background. This copy shall be clearly marked as 'original' and the other copies as 'copy'. Only the original shall be accepted by the competent authorities in the Community as being valid for the purposes of export to the Community inaccordance with the arrangements established by this Agreement.2. Each document in question make this necessary.5. The limits introduced under paragraph 2 or paragraph 4 may in no case be lower than the level of imports of products in that category originating in China in 1988.6. Quantitative limits may also be established by the Community on a regional basis in accordance with the provisions of Protocol C.7. The annual growth rate for the quantitative limits introduced under this Article shall be determined in accordance with the provisions of Protocol D.8. The provisions of this Article shall not apply where the percentages specified in paragraph 2 have been reached as a result of a fall in total imports into the Community, and not as a result of an increase in exports of products originating in China.9. In the event of the provisions of paragraphs 2, 3 or 4 being applied, China undertakes to issue export certificates for products covered by contracts concluded before the introduction of the quantitative limit, up to the volume of the quantitative limit fixed.10. Up to the date of communication of the statistics referred to in Article 15 paragraph 6, the provisions of paragraph 2 of this Article shall apply on the basis of the annual statistics previously communicated by the Community.11. The provisions of this Agreement which concern exports of products subject to the quantitative limits established in Annex III shall also apply to products for which quantitative limits are introduced under this Article.Article 71. China and the Community agree to cooperate fully in preventing the circumvention of this Agreement by transhipment, re-routing or whatever other means.2. Where information available to the Community as a result of the investigations carried out in accordance with the procedures set out in Protocol A constitutes evidence that products of Chinese origin subject to quantitative limits established under this Agreement have been transhipped, re-routed or otherwise imported into the Community in circumvention of this Agreement, the Community may request the opening of consultations in accordance with the procedures described in Article 16, with a view to reaching agreement on an equivalent adjustment of the corresponding quantitative limits established under this Agreements.3. Pending the result of the consultations referred to in paragraph 2, China shall, as a precautionary measure, if so requested by the Community, make the necessary arrangements to ensure that adjustments of quantitative limits liable to be agreed following the consultations referred to in paragraph 2 may be carried out for the quota year in which the request to open consultations in accordance with paragraph 2 was made, or for the following year if the quota for the current year is exhausted, where clear evidence of circumvention is provided.4. Should the parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 16 paragraph 2, the Community shall have the right, where clear evidence of circumvention has been provided, to deduct from the quantitative limits established under this Agreement amounts equivalent to the products of Chinese origin.Article 81. China shall endeavour to ensure that exports of textile products covered by this Agreement are spaced out as evenly as possible over the year, due account being taken in particular of seasonal factors.2. Should there be an excessive concentration of imports of any products belonging to a category subject to quantitative limits under this Agreement, the Community may request consultations in accordance with the procedure specified in Article 16 with a view to remedying this situation.Article 9In the event of denunciation of this Agreement as provided for in Article 20 paragraph 3, the quantitative limits established in Annex III shall be reduced on a pro rata basis.Article 101. Portions of the quantitative limits established in Annex III not used in one region of the Community may be reallocated to another region in accordance with the procedures in force in the Community.The Community undertakes to examine with care and reply within four weeks to any request made for reallocation by China. In the event of agreement on such reallocation, the flexibility provisions set out in Article 5 shall continue to be applicable to the levels of the original allocation.2. After 1 June of each year of application of the Agreement, China may transfer, subject to prior notification to the Community, the unused quantities of the regional quota-shares of a Community quantitative limit, set out in Annex III, to the quota-shares of the same limit of other regions of the Community provided that the regional quota-share from which the transfer is made is utilized by less than 80 %, and up to the amount of the following percentages of the quota-share to which the transfer is made:- 4 % in the first year of application of the Agreement,- 8 % in the second year of application of the Agreement,- 16 % in the third year of application of the Agreement.The percentage in the fourth year of application of the Agreement shall be determined following consultations between the Parties.3. Should it appear in any given region of the Community that additional supplies are required, the Community may, where measures taken pursuant to paragraph 2 are inadequate to cover those requirements, authorize the importation of amounts greater than those stipulated in Annex III.Article 111. China undertakes to take such and waste silk from China, concerning the implementation of commercial contracts.The Chinese authorities undertake to endeavour, in consultation with the organisations responsible for the export of these products, to find remedies to these problems, and to ensure that the quality of the products is improved in order to meet the standards required by European industry.The two delegations agreed that, in the event of any difficulties in provision and delivery of these fibres, consultations may be held with a view to finding a mutually satisfactory solution. Head of Delegation of thePeople's Republic of ChinaHead of Delegation of theEuropean Economic CommunityAgreed Minute concerning Annex IVIn the course of the negotiations on the bilateral Textile Agreement between the European Economic Community and the People's Republic of China initialled on 9 December 1988, the delegation of the Community emphasized the importance it attached to European industries' access to supplies of Chinese raw silk. These industries require improved access to a quantity based on figures corresponding to the actual trade flows in recent years.The Chinese delegation noted this request and will endeavour to supply additional quantities of raw silk to the industries in question according to the availability of supply.The two delegations have agreed that, should problems arise in connection with supplies of raw silk, consultations will be held in order to resolve these problems.Head of Delegation of thePeople's Republic of ChinaHead of Delegation of theEuropean Economic CommunityAgreed Minute1. In the course of the negotiations on the bilateral Textile Agreement between the European Economic Community and the People's Republic of China initialled on 9 December 1988, the European Economic Community delegation drew attention to the administrative and economic difficulties which had in previous years arisen due to overshipments of products in certain categories in Annex III and for which licences have been issued.2. The Chinese delegation confirmed that measures had been taken to ensure that the problems which had arisen in previous years would not be repeated under the Agreement initialled on9 December 1988 and supplied details concerning the internal procedures which have been adopted. The Chinese delegation expressed confidence that the licensing system was now operating correctly.3. The two sides agreed that should difficulties with overlicensing nevertheless arise, the consultations referred to in Article 13, paragraph 1 of Protocol A shall be initiated without delay. In order to assist the Chinese authorities to initiate the internal procedures referred to in paragraph 2 above, the competent authorities in the Community will supply data concerning excess export licences presented.Head of Delegation of thePeople's Republic of ChinaHead of Delegation of theEuropean Economic CommunityAgreed MinuteDuring the negotiations preceding the conclusion of the Textile Agreement on 9 December 1988, the delegation of the European Economic Community drew the attention of the Chinese delegation to the particular problems which have arisen in the Community markets due to imports from China of products of category 33. The Chinese delegation was unable at this stage to agree the introduction of a Community limit for these products.In consequence, the two delegations have agreed that China will accord special consideration to any specific problems raised by the Community in respect of this category, and enter promptly into consultations with a view to finding an appropriate solution.Head of Delegation of thePeople's Republic of ChinaHead of Delegation of theEuropean Economic CommunityAgreed MinuteThe People's Republic of China and the European Economic Community agree that carry-over from the quantitative limits for the year 1988 of amounts not used during the year 1988 is authorized up to 7 % of the corresponding quantitative limits for the year 1989. Anticipation of a portion of quantitative limits for the year 1989 is authorized up to 5 % for any quantitative limit for the year 1988.Head of Delegation of thePeople's Republic of ChinaHead of Delegation of theEuropean Economic CommunityDear Mr. Hofmann,I confirm that the Chinese authorities will give every assistance to European industrialists who wish to visit China in order to benefit from the access to the raw materials referred to in Annex IV to the Textile Agreement between the European Economic Community and China initialled on 9 December 1988, and in the Agreed Minute concerning Annex IV.LI GOUDONGDear Mr. Hofmann,Concerning category 2 (cotton fabrics), the two Parties have agreed that an additional quantity of 1 230 tonnes for fabrics below 115 cm in width may be exported by the People's Republic of China to the European Economic Community on the understanding that for the purposes of taking advantage of this additional facility, China will not in fact export fabrics above 100 cm in width.I hereby declare that this is the understanding of the Chinese government.LI GUODONGDear Mr. Hofmann,I have the honour to confirm that China is willing to ensure the normal development of exports to the Community in respect of fabrics for medical gauze (CN codes 5208 11 10 and 5208 21 10), taking into account existing currents of trade, as well as specific solutions agreed upon in Brussels.LI GUODONGDear Mr. Li Guodong,Your delegation expressed particular concern about certain problems resulting from regional breakdown of the agreed Community restraint levels.In case of difficulties concerning