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
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 this problem the Community would enter into consultations in a constructive spirit with a view to finding a mutually acceptable solution.G. HOFMANNExchange of notesThe Mission of the People's Republic of China 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 textile products between the People's Republic of China and the Community initialled on 9 December 1988.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 People's Republic of China is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1989 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 People's Republic of China to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Relations 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 People's Republic of China to the European Communities and has the honour to refer to the Note of 20 December 1988 regarding the Agreement in textile products between the People's Republic of China and the Community initialled on 9 December 1988.The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the People's Republic of China to the European Communities the assurance of its highest consideration. 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 appear to the Community to be in contravention of this Agreement. China shall communicate the results of these enquiries to the Community together with any other pertinent information enabling the true origin of the goods to be determined.3. By agreement between the competent Community authorities and the competent Chinese authorities, officials designated by the Community may be present at the enquiries referred to above.4. In pursuance of the cooperation referred to in paragraph 1, China and the Community shall exchange any information considered by either Party to be of use in preventing the provisions of the Agreement. These exchanges may include information on textile production in China and on trade in textile products of a kind covered by this Agreement between China and other countries, particulary where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of China prior to their importation into the Community. This information shall include at the request of the Community copies of all relevant documentation.5. Where it is established that the provisions of this Agreement have been contravened, China and the Comunity may agree to take such measures as are necessary to prevent a recurrence of such contravention.>REFERÊNCIA A UMA IMAGEN>>REFERÊNCIA A UMA IMAGEN>PROTOCOL B 1. The exemption provided for in Article 4 (3) of the Agreement in respect of the cottage industry products shall apply only to the following products:(a) fabrics woven on hand- or foot-operated looms, being fabrics of a kind traditionally made in the cottage industry of China;(b) garments or other textile articles of a kind traditionally made in the cottage industry of China obtained manually from the fabrics referred to above and sewn exclusively by hand without the aid of any machine;(c) traditional folklore textile products of China made by hand in the cottage industry of China as defined in the list agreed between both Parties and annexed to this Protocol.2. Exemption shall be granted only for products accompanied by a certificate issued by the competent Chinese authorities in accordance with the specimen annexed to this Protocol. Such certificates shall state the grounds on which exemption is based and shall be accepted by the competent Community authorities provided that they are satisfied that the products concerned conform to the conditions set out in this Protocol. Certificates covering the products referred to in paragraph (c) above shall bear a conspicuous stamp: 'FOLKLORE'. In case of divergent opinion between China and the competent Community authorities at the point of entry into the Community as to the nature of such products, consultations shall be held within one month with a view to resolving such divergences. Should imports of any of the above products reach such proportions as to cause difficulties to the Community, the two Parties shall open consultations forthwith in accordance with the procedure laid down in Article 16 of the Agreement with a view to finding a quantitative solution to the problem.3. The provisions of Title IV and V of Protocol A shall apply 'mutatis mutandis' to the products referred to in paragraph 1 of this Protocol.Annex to Protocol B TRADITIONAL FOLKLORE TEXTILE PRODUCTS OBTAINED IN THE COTTAGE INDUSTRY OF CHINA ARE IDENTIFIED IN THE ANNEXED LIST This list covers the following kinds of products (and other items as may be agreed upon by both parties from time to time):A. Products of hand-made lace traditional of China 1. Crochet lace:Simply by means of a crochet hook, different products are obtained (piano covers, scarves, tablecloths, bedspreads, doilies, shawls, traycloths, curtains, lace in the piece, bedcovers, sofa covers, cushion covers and insertions for these articles) with traditional designs of Shandong (Shantung), Shanghai and Shantou (Swatow). 2. Tsimou lace:This is a traditional and a special characteristic craft produced in Tsimou county, Shandong (Shantung) province. Cotton or man-made fibre threads are worked by hand according to paper sketches of flora, vases, fishes, birds and other traditional Chinese designs, joined and sewn on to a piece of cotton or man-made fibre woven fabrics, thus producing articles such as traycloths, cushion covers, piano covers, tablecloths, 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 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 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