AGREEMENT between the European Economic Community and the Republic of India on Trade in textile products Done at Brussels on 31 October 1986THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF INDIA,of the other part,DESIRING to ensure the orderly and equitable development of trade in textile products between the European Economic Community (hereinafter referred to as 'the Community') and India.ON THE BASIS of the Arrangement regarding international trade in textiles (hereinafter referred to as 'the Geneva Arrangement'), and in particular Article 4 thereof, as renewed under the Protocol and the conclusions adopted by the Textiles Committee on 31 July 1986,HAVE DECIDED in a spirit of mutual cooperation to conclude this Agreement and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN COMMUNITIES:THE GOVERNMENT OF THE REPUBLIC OF INDIA: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 and the Protocol of Extension dated 31 July 1986.2. 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 India 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 statistics of trade between Member States (NIMEXE).From the entry into force 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.Any amendment to these rules of origin shall be communicated to India 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 3India 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 4India and the Community recognize the special and differential character of re-imports of textile products into the Community after processing in India.Such re-imports may be agreed 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 5With reference to Article 12 (3) of the Geneva Arrangement, the limitations set out in this Agreement will not apply to handloom fabrics of the cottage industry, hand-made cottage industry products made of such handloom fabrics and traditional folklore handicraft textile products 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 certificate issued by the Indian 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 aquantitative limit established under this Agreement, but that the products have subsequently been re-exported outside the Community, the authorities concerned shall inform the Indian 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.Article 71. In any Agreement year advance use of a portion of the quantitative limit established for the following Agreement year is authorized for each category of products up to 5 % of the quantitative limit for the current Agreement year.Amounts delivered in advance shall be deducted from the corresponding quantitative limits established
the quantitative limits established under this Agreement amounts equivalent to the products of Indian origin.Article 12India shall endeavour to ensure that exports of textile products subject to quantitative limits are spaced out as evenly as possible over an Agreement year, due account being taken, in particular, of seasonal factors.Article 13Should recourse be had to the denunciation provisions of Article 18 (4), the quantitative limits established in Annex II shall be adapted on a pro rata basis.Article 141. Portions of the quantitative limits established in Annex II not used in one Member State of the Community may be reallocated to another Member State.The Community undertakes to examine with care and shall reply within four weeks to any request made for reallocation by India. In the event of agreement on such reallocation, the flexibility provisions set out in Article 7 shall continue to be applicable to the levels of the original allocation.If, in the course of the application of this Agreement, India finds that the break-down of a limit established in Annex II causes particular difficulties, it may request the opening of consultations in accordance with Article 16 with a view to reaching a mutually satisfactory solution.2. After 1 June of each year of application of the Agreement, India 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 II, 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:- 2 % in the first year of the application of the Agreement,- 4 % in the second year of the application of the Agreement,- 8 % in the third year of the application of the Agreement,- 12 % in the fourth year of the application of the Agreement.The percentage in the fifth year of the 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 1 are inadequate to cover those requirements, authorize the importations of amounts greater than those stipulated in Annex II.Article 15India and the Community undertake to refrain from discrimination in the allocation of export certificates and import authorizations or documents referred to in Protocols A and B.Article 161. The special consultation procedures referred to in this Agreement shall be governed by the following rules:- any request for consultations shall be notified in writing to the other Party,- the request for consultations shall be followed within a reasonable period and in any case not later than 15 days following the notification by a statement setting out the reasons and circumstances which, in the opinion of the requesting Party, justify the submission of such a request,- the Parties shall enter into consultations within one month at the latest of notification of the request, with a view to reaching agreement or a mutually acceptable conclusion within one further month at the latest.2. The Community may request consultations in accordance with paragraph 1 of this Article and of paragraph 11 of the Protocol of Extension of the Geneva Arrangement when it ascertains that during a particular year of application of the Agreement, real difficulties arise in the Community or one of its regions from a sharp and substantial increase, by comparison to the preceding year, in imports of a given category of Group I subject to the quantitative limits set out in Annex II.3. If necessary, at the request of either of the Parties and in conformity with the provisions of the Geneva Arrangement, consultations shall be held on any problems arising from the application of this Agreement. Any consultations held under this Article shall be approached by both Parties in a spirit of cooperation and with a desire to reconcile the difference between them.Article 17This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of India.SECTION IITransitional and final provisionsArticle 181. This Agreement shall enter into force on the first day of the month following the date on which the Contracting Parties notify each other of the completion of the procedures necessary for this purpose. It shall be applicable until 31 December 1991, except that, for the period 1 August to 31 December 1991, this Agreement is subject to both Parties being free to request, at any time, consultations with a view to proposing revisions in the light of any successor arrangement to the Geneva Arrangement.2. This Agreement shall apply with effect from 1 January 1987.3. Either Party may at any time propose modifications to the Agreement.4. Either Party may at any time donounce this Agreement provided that at least 60 days' notice is given. In that event, the Agreement shall come to an end on the expiry of the period of notice.5. The Annexes, Protocols and Agreed Minutes to this 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 in accordance with the arrangements established by this Agreement.2. Each export certificate and certificate of origin shall bear a serial number, whether or not printed, by which it can be identified.This number for the export certificate shall be standardized and composed of the following elements:- two letters identifying India as follows: IN,- two letters identifying country of destinations as follows:BL = BeneluxDE = Federal Republic of GermanyDK = DenmarkES = SpainFR = FranceUK = United KingdomGR = GreeceIE = IrelandIT = ItalyPT = Portugal,- a one-digit number identifying quota year, corresponding to the last figure in year, e.g. 7 for 1987,- a two-digit number running consecutively from 01 to 99 identifying the issuing office in India,- a five-digit number running consecutively from 00001 to 99999 allocated to the country of destination.Article 14The export certificate and certificate of origin may be issued after the shipment of the products to which they relate. In such cases they shall bear either the endorsement 'délivré a posteriori' or the endorsement 'Issued retrospectively'.Article 151. In the event of theft, loss or destruction of an export certificate or a certificate or origin, the exporter may apply to the competent governmental authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate so issued shall bear the endorsement 'duplicata'.2. The duplicate must bear the date of the original export certificate or certificate of origin.TITLE VADMINISTRATIVE COOPERATIONArticle 16The Community and India shall cooperate closely to implement the Agreement. To this end, contacts and exchanges of views (including on technical matters) shall be facilitated by both parties, in particular to establish the authenticity and accuracy of documentation required under the provisions of the Agreement.Article 17India shall send the Commission of the European Communities the names and addresses of the governmental authorities competent for the issue and verification of export certificates and certificates of origin together with specimens of the stamps used by these authorities. India shall also notify the Commission of any change in this information.Article 181. Subsequent verification of documentation required under the Agreement shall be carried out at random, or whenever the competent authorities of either Party have reasonable doubt as to the authenticity or accuracy of such documentation.2. In such cases the competent authorities shall make available relevant documentation or a copy thereof to the competent governmental authority of the other Party, giving the reasons of form or substance for an enquiry. If the invoice has beens submitted, such invoice or a copy thereof shall be attached to the relevant document(s) or its copy. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said documentation are inaccurate.3. The results of the subsequent verifications carriedout in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the other Party within three months at the latest together with any other pertinent information.Should such verifications reveal systematic irregularities in the use of declarations of origin, the Community may subject imports of the products in question to the provisions of Article 2 (1) of this Protocol.4. For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept for a period of at least two years by the competent governmental authority in India.5. Recourse to the random verification procedure specified in this Article must not constitute an obstacle to the release for home use of the products in question.Article 191. Where the verification procedure referred to in Article 18 or where information available to the Community or to India indicates that the provisions of this Agreement are being contravened, both Parties shall cooperate closely and with appropriate urgency to prevent such contravention.2. To this end appropriate enquiries shall be carried out, if necessary, concerning operations which are or appear to be in contravention of the Agreement. The results of these enquiries shall be communicated together with other pertinent information.3. Subject to agreement between the Community and India, officials designated by the Community may cooperate with the authorities designated by India in the enquiries referred to in paragraph 2.4. Pursuant to the cooperation referred to in paragraph 1, India and the Community shall exchange any information considered by either Party to be of use in preventing the contravention of the provisions of the Agreement. These exchanges may include information on textile production in India and on trade in textile products of a kind covered by this Agreement between India and other countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of India prior to their importation into the Community. This information may include at the request of the Community copies of all relevant documentation.5. Where it is established that OF PRODUCTS WITH QUANTITATIVE LIMITSSection IExportationArticle 5The competent authorities of India shall issue an export certificate in respect of all consignments from India of textile products referred to in Annex II, up to the relevant quantitative limits as may be modified by Articles 7, 13 and 14 of the Agreement and of textile products subject to any definitive or provisional quantitative limits established as a result of the application of Article 8 of the Agreement.Article 61. The export certificate shall conform to the model annexed to this Protocol. It must certify inter alia that thequantity 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 certificate shall only cover one of the categories of products listed in Annex II to 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 II 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'.Article 7The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export certificate already issued.Article 81. 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 certificate 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 9The presentation of an export certificate, pursuant to Article 11, shall be effected not later than 31 March of the year following that in which the goods covered by the certificate have been shipped.Section I IImportationArticle 10Importation into the Community of textile products subject to quantitative limits shall be subject to the presentation of an import authorization or document.Article 111. The competent Community authorities shall issue the import authorization or document referred to in Article 10 automatically within five working days of the presentation by the importer of the original of the corresponding export certificate.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 certificate has been withdrawn.However, if the competent Community authorities are notified about the withdrawal or cancellation of the export certificate only 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 121. If the competent Community authorities find that the total quantities covered by export certificates issued by India for a particular category in any Agreement year exceed the quantitative limit established in Annex II for that category, as may be modified by Articles 7, 13 and 14 of the Agreement, or any definitive or provisional limit established under Article 8 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 India and the special consultation procedure set out in Article 16 of the Agreement shall be initiated forthwith.2. Exports of products of Indian origin subject to quantitative limits not covered by Indian export certificates 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 II or established as a result of the application of Article 8 of the Agreement, without the express agreement of India, save as provided for in Article 11 of the Agreement.TITLE IVFORM AND PRODUCTION OF EXPORT CERTIFICATES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONSArticle 131. The export certificate 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. Where the export certificate and the certificate of origin are issued at the same time, the certificate of origin may be a carbon copy of the export certificate.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/m$. 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 in accordance with the arrangements established by this Agreement.2. Each export certificate and certificate of origin shall bear a serial number, whether or the Agreement between the Community and the Republic of India on trade in textile products initialled on 31 October 1986, the following was agreed:1. Exports of hand-made garments made in the cottage industry of India from fabrics referred to in paragraph 1 (a) of Protocol B (i.e. those categories of products falling within Groups I (B), II (B) and III (B) in Annex I of the initialled Agreement) will be included in the quantitative limits established under the Agreement. These products will be covered by export certificates.2. In addition, for such products belonging to categories 6, 8, 15 and 27, the following global quantities:1987: 3 350 000 pieces1988: 3 481 000 pieces1989: 3 619 000 pieces1990: 3 763 000 pieces1991: 3 912 000 piecesmay be exported to the Community, provided they are accompanied by the certificate referred to in paragraph 2 of Protocol B bearing the following reference in box 7: 'Hand-made garments'. The category of the product in question, as well as the quota year, must also be indicated in the same box.For each of the categories in question the total quantity exported to the Community shall not exceed the following levels:>POSIÇÃO NUMA TABELA>These quantities are broken down into shares for each of the regions of the Community. The breakdown for 1987 is set out in the annex to this Agreed Minute.3. The provisions of Articles 7 and 14 (2) of the Agreement shall apply to the above quantities, except that there shall be no inter-category or inter-regional transfers between the quantitative limits referred to above and those set out in Annex II to the Agreement.4. The provisions of Title III, IV and V of Protocol A shall apply mutatis mutandis to the above products. Head of Delegation of the Republic of IndiaHead of Delegation of the European Economic Community Annex to Agreed Minute 7Regional breakdown for 1987>POSIÇÃO NUMA TABELA>Exchange of NotesThe Mission of the Republic of India to the European Communities presents its compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Agreement on trade in textile products between the Republic of India and the Community initialled on 31 October 1986.The Mission wishes to inform the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the Agreement, the Government of the Republic of India is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1987 if the Community is disposed to do likewise.The Mission would be grateful if the Community would confirm its agreement to the foregoing.The Mission of the Republic of India to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Relations of the European Communities the assurance of its highest consideration.Exchange of NotesThe Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of India to the European Communities and has the honour to refer to the Note regarding the Agreement on trade in textile products between the Republic of India and the Community initialled on 31 October 1986.The Directorate-General wishes to confirm that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the Agreement, the Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1987.The Directorate-General for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Republic of India to the European Communities the assurance of its highest consideration.