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
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 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 shall bear a standardized serial number, whether or not printed, by which it can be identified. This number shall be composed of the following elements:-two letters identifying China as follows: CN, two letters identifying countries of destination as follows:BL: BeneluxDE: Federal Republic of GermanyDK: DenmarkEL: GreeceES: SpainFR: FranceGB: United KingdomIE: IrelandIT: ItalyPT: Portugal- a one-digit number identifying quota year, corresponding to the last figure in year, e.g. 9 for 1989,- a two-digit number running consecutively from 01 to 99 identifying the issuing office,- a five-digit number running consecutively from 00001 to 99999 allocated to the country of destination.3. The competent authorities in China shall satisfy themselves that the goods exported correspond to the statements given in the export licence and certificate of origin.Article 15The export licence 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 161. In the event of theft, loss or destruction of an export licence or a certificate of 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 or licence so issued shall bear the endorsement 'duplicata'.2. The duplicate must bear the date of the original export licence or certificate of origin.TITLE VADMINISTRATIVE COOPERATIONArticle 17The Community and China shall cooperate closely to implement the provisions of this Agreement. To this end, contacts and exchanges of views (including on technical matters) shall be facilitated by both Parties.Article 18In order to ensure that the Agreement is properly applied, the Community and China assist each other in checking the authenticity and accuracy of export licences and certificates of origin isued or declarations made under this Protocol.Article 19China shall send the Commission of the European Communities the names and addresses of the governmental authorities competent for the issue and verification of export licences and certificates of origin together with specimens of the stamps used by these authorities. China shall also notify the Commission of any change in this information.Article 201. Subsequent verification of certificates of origin or export licences shall be carried out at random, or wheneverthe competent Community authorities have reasonable doubt as to the authenticity of the certificate or licence or as to the accuracy of the information regarding the products in question.2. In such cases the competent authorities in the Community shall return the certificate of origin or export licence or a copy thereof to the competent governmental authority in China giving, where appropriate, the reasons of form or substance for an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate or licence or its copy. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.3. The provisions of paragraph 1 shall be applicable to subsequent verifications of the declarations of origin referred to in Article 3 of this Protocol.4. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate or licence applied to the goods actually exported and whether these goods are eligible for export in accordance with the arrangements established by this Agreement. The information shall also include, at the request of the Community, copies of all documentation necessary to determine the facts fully and in particular the true origin of the goods.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 3 paragraph 1 and 2 of this Protocol.5. For the purpose of subsequent verification of certificates of origin, copies of the certification as well as any export documents referring to them shall be kept for at least a period of two years by the competent governmental authority in China.6. 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 211. Where the verification procedure referred to in Article 20 or where information available to the Community or to China indicates or appears to indicate 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 China shall, on this own initiative or at the request of the Community, carry out appropriate enquiries or arrange for such enquiries to be carried out concerning operations which are or bedspreads, doilies, shawls, lace in the piece, bed covers, sofa covers and insertions for these articles. 3. Gou-gou lace:This is another traditional type of heavy-work hand-made lace typical of Shandong (Shantung), made of coarser cotton or man-made fibre threads, thus producing articles such as shawls, traycloths, cushion covers, curtains, piano covers, doilies, tablecloths, bedspreads, sofa covers, lace in the piece, bed covers and insertions for these articles. 4. Gingzhoufu lace:This is a very fine type of lace made by hand in different traditional designs. It takes months, and sometimes years to make one set of this type of tablecloth and napkins. It is a typical product of Shandong (Shantung), producing articles such as lace in the piece, shawls, traycloths, cushion covers, piano covers, tablecloths, bedspreads, sofa covers, doilies, bed covers and insertions for these articles. 5. Rongcheng lace:This is the finest and most elaborate kind of Chinese lace. It is made in the traditional way in Shandong (Shantung). Unlike Xiaoshan lace, the whole design is finished in one piece thus producing articles such as lace in the piece, shawls, traycloths, cushion covers, piano covers, doilies, tablecloths, bedspreads, sofa covers, scarves, bed covers and insertions for these articles. 6. Filite lace:This is also called mesh-hole lace, made of strong cotton or man-made fibre threads, hand worked in the same manner as nets into different traditional designs, thus obtaining lace in the piece, sofa covers, doilies, gloves, cushion covers, piano covers, tablecloths, curtains, bed covers, traycloths, shawls, bedspreads and insertions for these articles. It is a typical product of Shantou (Swatow) and Fujian. 7. Tatting lace:This is another kind of hand-made lace in the traditional designs made from high quality cotton or man-made fibre threads, simply obtained by means of a specially made tiny shuttle, thus producing lace in the piece, shawls, traycloths, cushion covers, piano covers, tablecloths, bedspreads and doilies, bed covers, sofa covers and insertions for these articles. It is typical of Shandong (Shantung) and Shantou (Swatow). 8. Batten lace:This is another type of heavy lace made by hand from cotton or man-made fibre threads which are worked into strips of different shapes. These strips are then joined together according to a prepared sketch or inserted into cloth, thus producing lace in the piece, shawls, traycloths, cushion covers, tablecloths, bedspreads, doilies, bed covers, sofa covers, piano covers and insertions for these articles. The designs correspond to the traditional ones of Shandong (Shantung). 9. Bangchui lace:Cotton or man-made fibre threads are hand worked according to a predetermined sketch by craftsmen making use of dozens of tiny spindles. For an elaborate design more than 100 spindles may be used. The final products in traditional designs are available in the form of lace in the piece, shawls, traycloths, cushion covers, piano covers, bed covers, tablecloths, bedspreads, doilies, sofa covers and insertions for these articles. It is a traditional and typical product of Shandong (Shantung).10. Xiaoshan lace:This is a kind of lace made with tens of thousands of fine cotton threads. It is first worked into small pieces according to patterns on a paper sketch, which is later discarded. By sewing together by hand these small pieces, lace in the piece, shawls, traycloths, cushion covers, tablecloths, doilies, bedspreads, sofa covers, piano covers, bed covers and insertions for these articles in traditional designs of Xiaoshan are obtained.11. Wangkou lace:The material used is cotton or man-made fibre threads. The lace is available in different numbers of holes per inch. Traditional designs are then braided through the mesh holes. Lace in the piece, doilies, shawls, traycloths, cushion covers, piano covers, tablecloths, bedspreads, net curtains, bed covers, sofa covers and insertions for these articles are so obtained traditionally in Shandong (Shantung).12. Hand knitted lace (Needle point lace):By means of a pair of knitting needles, lace in the piece, shawls, traycloths, curtains, sofa covers, cushion covers, piano covers, 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 measures as are required to make possible the export of the minimum annual quantities laid down in Annex IV of the products listed in that Annex. The Parties will examine each year the possibilities of increasing these quantities in the light of the needs of Community industry and China's export possibilities.2. In administering exports of the products referred to in paragraph 1, China undertakes to give favourable consideration, taking into account its export possibilities, to request from the Community textile industry with a view to meeting its needs.For this purpose, the Community may submit to the Chinese authorities before the end of each year a list of interested manufacturers and processors and, if possible, the quantities of products requested by each of the firms in question.3. The Contracting Parties are agreed that transactions in the products listed in Annex IV shall be carried out in accordance with Articles 8 and 9 of the Trade and Economic Cooperation Agreement taking account of market practice and normal trade flows.III. Imports into ChinaArticle 121. In return for the increased opportunities for the export of Chinese textile products to the Community, China shall encourage and facilitate the importation on its market of textile products originating in the Community listed in annexes I and II. To this end China will take such measures as are necessary to avoid exacerbating and if possible to reduce, during the period of application of the Agreement, the disequilibrium in its textile trade balance with the Community.2. Where a need for additional supplies arises, and in particular a need leading to the diversification of imports of textile products into China, preference will be given to imports of products originating in the Community referred to in paragraph 1 and offered on terms meeting the conditions set out in Articles 8 and 9 of the Trade and Economic Cooperation Agreement.Article 131. The two Parties agree to examine the trend of trade in textile products and garments each year, in the framework of the consultations provided for in Article 16 and on the basis of the statistics referred to in Article 15.2. If the Community finds that the provisions of Article 12 paragraph 2 of this Agreement place it in an unfavourable position as compared with a third country, it may requestconsultations with China in accordance with the procedure specified in Article 16 with a view to taking appropriate action consistent with the rights and obligations under the Trade and Economic Cooperation Agreement.IV. Common provisionsArticle 141. The classification of the products covered by this Agreement is based on the tariff and statistical nomenclature and on the Common Customs Tariff of the Community (hereinafter called the 'combined nomenclature', or in abbreviated form 'CN').Any amendment to the combined nomenclature (CN) made in accordance with the procedures in force in the Community, concerning categories of products covered by this Agreement or any decision relating to the classification of goods shall not have the effect of reducing any quantitative limit introduced pursuant to this Agreement.2. 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 by China and shall not have the effect of reducing any quantitative limit established in Annex III.The procedures for control of the origin of the products referred to above are laid down in Protocol A.Article 151. China shall supply the Community with precise statistical information on all export licences issued for categories of textile products subject to the quantitative limits set out in Annex III, expressed in quantities and in terms of value and broken down by Member State of the Community, as well as on all certificates issued by the Chinese authorities for products referred to in Article 4 paragraph 3 and subject to the provisions of Protocol B.2. The Community shall likewise transmit to the Chinese authorities precise statistical information on import authorizations or documents issued by the Community authorities and import statistics for products covered by the system referred to in Article 6 paragraph 2.3. The information referred to above shall, for all categories of products, be transmitted before the end of the second month following the quarter to which the statistics relate.4. Upon request by the Community, China shall supply import statistics for all products covered by Annexes I and II.5. Should it be found on analysis of the information exchanged that there are significant discrepancies between the returns for exports and those for imports, consultations may be initiated in accordance with the procedure specified in Article 16 of this Agreement.6. For the purpose of applying the provisions of Article 6, the Community undertakes to provide the Chinese authorities before 15 April of each year with the preceding year's statistics on imports of all textile products covered by this Agreement, broken down by supplying country and Community Member State.Article 161. A Textile Committee (hereinafter referred to as the