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, tablecloths, bed covers, bedspreads, doilies and insertions for these articles are obtained by hand in traditonal elaborate designs. It is a typical product of Shandong (Shantung), Shanghai, Tianjin (Tientsin) and Liaoning.B. Products largely embroidered by hand in the following traditional techniques of China1. Cut work and embroidery:Traditional designs of Shanghai, Shantou (Swatow), Shandong (Shantung) are embroidered by hand on to cotton or man-made woven fabrics. After embroidery, some parts of the cloth are cut away by hand, so making traditional designs on cushion covers, bed sheets, scarves, sunblinds, handkerchiefs, tablecloths, bedspreads, doilies, pillowcases, shawls, traycloths, bed covers, sofa covers, curtains, guest towels, piano covers, aprons. This type of product also presents drawn work and stuffed embroidery.2. Embroidery organdy:Various kinds of hand embroidery in traditional Chinese designs and colours, typical of Beijing (Peking) and Shantou (Swatow) are carried out on fine translucent cotton woven fabrics, thus producing traycloths, sofa covers, cushion covers, piano covers, aprons, scarves, tablecloths, bed covers, curtains, bedsheets, pillowcases, shawls, bedspreads, guest towels, handkerchiefs, doilies.3. Multi-coloured embroidery:This is a typical kind of hand-embroidered work, specially distinguished for its elaborate traditional colour combination and designs. It is further matched with various kinds of drawn and punch work. This technique is typical of Shanghai, Beijing (Peking), Guangdong (Kwangtung), Tianjin (Tientsin), Fujian and Shandong (Shantung), producing traycloths, cushion covers, bedsheets, scarves, tablecloths, bed covers, curtains, pillowcases, shawls, bedspreads, guest towels, aprons, doilies, sofa covers, piano covers, handkerchiefs.C. Products obtained by the traditional Chinese technique 'applique and embroidery'This technique involves the previous cutting by hand of coloured cloth into traditional floral or geometrical designs which are then sewn by hand on to cotton or man-made woven fabrics. Large hand embroideries in traditional colours and designs are always included in this technique, producing traycloths, handkerchiefs, place mats, cushion covers, scarves, tablecloths, bedsheets, bed covers, shawls, bedspreads, sofa covers, piano covers, guest towels, aprons, pillowcases, doilies, curtains.D. Products presenting important traditional Chinese designs obtained by hand by the 'cross stitch' echniqueCross stitches are made by hand on cotton or man-made woven fabrics with colour-fast threads without a pattern drawn on the fabric, simply by counting the numbers of weft and warp. This technique is typical of Zhejiang (Chekiang), Beijing (Peking) and Shantou (Swatow), producing bedsheets, doilies, cushion covers, handkerchiefs, scarves, tablecloths, bedspreads bed covers, shawls, sofa covers, piano covers, guest towels, aprons, pillowcases, doilies, curtains.E. Hand-made needle point tapestryThese are among the famous and traditional hand-made products of China, typical of Shanghai and Shandong (Shantung). Double ply woollen yarns are worked by hand into cotton canvas by needle point stitches to form various traditional designs frequently of a pictorial character, such as landscapes, scenic historic sites, animals, etc.F. Wax-dyeing products (Fabrics and made-up articles)Wax-dyeing is a traditional method and also a cultural heritage of long standing in Guizhou and Sichuan provinces. With special instruments beeswax is used to draw traditional designs on cotton or man-made woven fabrics. After soaking in dye, the wax melts away and the drawings are revealed. These fabrics are used for producing curtains, doilies, scarves, sofa covers, tablecloths, bedspreads, bedsheets, and aprons.G. Products made by hand paintingThese products belong to the traditional art of China. Typical largely elaborated designs are hand painted on the pillowcases, bedsheets, shawls, scarves, tablecloths, place mats, curtains, bedspreads and sofa
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 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 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 down in Protocol B.4. China and the Community recognize the special and differential character of re-imports of textile products into the Community after processing in China.Provided that they are effected in accordance with the regulations on economic outward processing in force in the Community, these re-imports are not subject to the quantitative limits set out in Annex III when they are subject to the specific arrangements laid down in Protocol E.Article 51. 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 for the following Agreement year.2. Carry-over to the corresponding quantitative limit for the following Agreement year of the amounts not used during any Agreement year is authorized for each category of products up to 7 % of the quantitative limit for the current Agreement year.3. Transfers in respect of categories in Group I shall not be made from any category except as follows:- transfers between Categories 2 and 3 and from Category 1 to Categories 2 and 3 may be made up to 7 % of the quantitative limits for the category to which the transfer is made,- transfers between Categories 4, 5, 6, 7, and 8 may be made up to 7 % of the quantitative limit for the category to which the transfer is made.Transfers into any category in Groups II and III may be made from any category or categories in Groups I, II and III up to 7 % of the quantitative limit for the category to which the transfer is made.4. The table of equivalence applicable to the transfers referred to above is given in Annex I to this Agreement.5. The increase in any category of products resulting from the cumulative application of the provisions in paragraphs 1, 2 and 3 above during an Agreement year shall not exceed 17 %.6. Prior notification shall be given by the authorities of China in the event of recourse to the provisions of paragraphs 1, 2 and 3 above.Article 61. Exports of textile products not listed in Annex III to this Agreement may be made subject to quantitative limits by China on the conditions laid down in the following paragraphs.2. Where the Community finds, under the system of administrative control set up, that the level of imports of products in a given category not listed in Annex III originating in China exceeds, in relation to the preceding years total imports into the Community from all sources of products in that category, the following rates:- 5 % for categories of products in Group II,- 10 % for categories of products in Group III,it may request the opening of consultations in accordance with the procedure described in Article 16 of this Agreement, with a view to reaching agreement on an appropriate restraint level for the products in such category.The Community shall authorize the importation of products of the said category shipped from China before the date on which the request for consultations was submitted.3. Pending a mutually satisfactory solution, China undertakes to limit exports of the products in the category concerned to the Community or to the regions of the Community market specified by the Community for a provisional period of three months from the date on which the request for consultations is made. Such provisional limit shall be established at 25 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2, and gave rise to the request for consultation, or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher.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 to introduce a definitive quantitative limit at an annual level not lower than the level resulting from the application of the formula set out in paragraph 2, or 106 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2 and gave rise to the request for consultations, whichever is the higher.The annual level so fixed shall be revised upwards after consultations in accordance with the procedure referred to in Article 16, with a view to fulfilling the conditions set out in paragraph 2, should the trend of total imports into the Community of the product 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 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,