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
in question make this necessary.5. The limits introduced under paragraph 2 or paragraph 4 may in no case be lower than the level of imports of products in that category originating in China in 1988.6. Quantitative limits may also be established by the Community on a regional basis in accordance with the provisions of Protocol C.7. The annual growth rate for the quantitative limits introduced under this Article shall be determined in accordance with the provisions of Protocol D.8. The provisions of this Article shall not apply where the percentages specified in paragraph 2 have been reached as a result of a fall in total imports into the Community, and not as a result of an increase in exports of products originating in China.9. In the event of the provisions of paragraphs 2, 3 or 4 being applied, China undertakes to issue export certificates for products covered by contracts concluded before the introduction of the quantitative limit, up to the volume of the quantitative limit fixed.10. Up to the date of communication of the statistics referred to in Article 15 paragraph 6, the provisions of paragraph 2 of this Article shall apply on the basis of the annual statistics previously communicated by the Community.11. The provisions of this Agreement which concern exports of products subject to the quantitative limits established in Annex III shall also apply to products for which quantitative limits are introduced under this Article.Article 71. China and the Community agree to cooperate fully in preventing the circumvention of this Agreement by transhipment, re-routing or whatever other means.2. Where information available to the Community as a result of the investigations carried out in accordance with the procedures set out in Protocol A constitutes evidence that products of Chinese origin subject to quantitative limits established under this Agreement have been transhipped, re-routed or otherwise imported into the Community in circumvention of this Agreement, the Community may request the opening of consultations in accordance with the procedures described in Article 16, with a view to reaching agreement on an equivalent adjustment of the corresponding quantitative limits established under this Agreements.3. Pending the result of the consultations referred to in paragraph 2, China shall, as a precautionary measure, if so requested by the Community, make the necessary arrangements to ensure that adjustments of quantitative limits liable to be agreed following the consultations referred to in paragraph 2 may be carried out for the quota year in which the request to open consultations in accordance with paragraph 2 was made, or for the following year if the quota for the current year is exhausted, where clear evidence of circumvention is provided.4. Should the parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 16 paragraph 2, the Community shall have the right, where clear evidence of circumvention has been provided, to deduct from the quantitative limits established under this Agreement amounts equivalent to the products of Chinese origin.Article 81. China shall endeavour to ensure that exports of textile products covered by this Agreement are spaced out as evenly as possible over the year, due account being taken in particular of seasonal factors.2. Should there be an excessive concentration of imports of any products belonging to a category subject to quantitative limits under this Agreement, the Community may request consultations in accordance with the procedure specified in Article 16 with a view to remedying this situation.Article 9In the event of denunciation of this Agreement as provided for in Article 20 paragraph 3, the quantitative limits established in Annex III shall be reduced on a pro rata basis.Article 101. Portions of the quantitative limits established in Annex III not used in one region of the Community may be reallocated to another region in accordance with the procedures in force in the Community.The Community undertakes to examine with care and reply within four weeks to any request made for reallocation by China. In the event of agreement on such reallocation, the flexibility provisions set out in Article 5 shall continue to be applicable to the levels of the original allocation.2. After 1 June of each year of application of the Agreement, China may transfer, subject to prior notification to the Community, the unused quantities of the regional quota-shares of a Community quantitative limit, set out in Annex III, to the quota-shares of the same limit of other regions of the Community provided that the regional quota-share from which the transfer is made is utilized by less than 80 %, and up to the amount of the following percentages of the quota-share to which the transfer is made:- 4 % in the first year of application of the Agreement,- 8 % in the second year of application of the Agreement,- 16 % in the third year of application of the Agreement.The percentage in the fourth year of application of the Agreement shall be determined following consultations between the Parties.3. Should it appear in any given region of the Community that additional supplies are required, the Community may, where measures taken pursuant to paragraph 2 are inadequate to cover those requirements, authorize the importation of amounts greater than those stipulated in Annex III.Article 111. China undertakes to take such AGREEMENT between the European Economic Community and the People's Republic of China on trade in textile productsInitialled at Brussels on 9 December 1988THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINAof the other part,DESIRING to promote, with a view to permanent cooperation and in conditions providing every security for trade, the orderly and equitable development of trade in textile products between the European Economic Community (hereinafter referred to as 'the Community') and the People's Republic of China (hereinafter referred to as 'China'),RESOLVED to take the fullest possible account of the serious economic and social problems at present affecting the textile industry in both importing and exporting countries, and in particular, to eliminate real risks of market disruption on the market of the Community and real risks of disruption to the textile trade of China,HAVING REGARD to the Arrangement regarding International Trade in Textiles (hereinafter referred to as 'the Geneva Arrangement'), and in particular Article 4 thereof, and to the conditions set out in the Protocol extending the Arrangement,HAVING REGARD to the Trade and Economic Cooperation Agreement between the Community and China,HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN COMMUNITIES:THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA:WHO HAVE AGREED AS FOLLOWS:I. General provisionsArticle 1The Parties recognize and confirm that without prejudice to the rights and obligations under the Trade and Economic Cooperation Agreement between the Community and China the conduct of their mutual trade in textile products shall be governed by the provisions of this Agreement.Article 21. Trade in textile products listed in Annex I and originating within the Contracting Parties shall be liberalizedfor the duration of this Agreement under the conditions set out therein.2. Trade in textile products listed in Annex II and originating within the Contracting Parties shall be covered by this Agreement solely for the purposes of application of the provisions making explicit reference to that Annex.3. Subject to the provisions of this Agreement, the Community undertakes, in respect of the products listed in Annex I, to suspend the application of quantitative import restrictions currently in force and not to introduce new quantitative restrictions under Article 3 of the Geneva Arrangement.4. Measures having equivalent effect to quantitative restrictions on the importation into the Community of the products listes in Annex I shall be prohibited.II. Arrangements for exports to the CommunityArticle 31. China agrees to establish and maintain for each calendar year quantitative limits on its exports to the Community in accordance with Annex III. Such exports shall be subject to a double-checking system specified in Protocol A.2. In administering the quantitative limits referred to in paragraph 1, China shall ensure that the Community textile industry shall benefit from utilization of the said limits.More particularly, as regards categories 2, 3 and 37 China undertakes to reserve, as a priority, 50 % of the quantitative limits concerned for industry users during one hundred and fifteen days beginning on 1 January of each year. For this purpose, contracts made with the industry during the period in question shall be taken into consideration.3. To facilitate the implementation of these provisions the Community shall provide the competent Chinese authorities, before the end of each year, with a list of interested manufacturers and processors and, if possible, of the quantity of products requested for each firm. To this end, the firms concerned are invited to make direct contact with the relevant Chinese bodies by 15 February of the following year, in order to make their purchasing intentions known.Article 41. Imports into the Community of textile products covered by this Agreement shall not be subject to the quantitative limits established in Annex III, provided that they are declared to be for re-export outside the Community in the same state or after processing, within the framework of the administrative system of control which exists within the Community.However, the release for home use of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Chinese authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community authorities ascertain that imports of textile products have been set off against a quantitative limit established under this Agreement, but that the products have subsequently been re-exported outside the Community, the authorities concerned shall inform the Chinese authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products, which shall not be set off against the quantitative limit established under this Agreement for the current or the following year.3. Exports of cottage industry fabrics woven on hand- or foot-operated looms, garments or other made-up articles obtained manually from such fabrics and of traditional folklore handicraft products shall not be subject to quantitative limits, provided that these products meet the conditions laid IIIDOUBLE CHECKING SYSTEM FOR CATEGORIES OFPRODUCTS WITH QUANTITATIVE LIMITSSection IExportationArticle 6The competent authorities of China shall issue an export licence in respect of all consignments from China of textile products referred to in Annex III, up to the relevant quantitative limits as may be modified by Articles 5, 9 and 10 of the Agreement and of textile products subject to any definitive or provisional quantitative limits established as a result of the application of Article 6 of the Agreement.Article 71. The export licence shall conform to the model annexed to this Protocol. It must certify inter alia that the quantity of the product in question has been set off against the quantitative limit prescribed for the category of the product in question.2. Each export licence shall cover only one of the categories of products listed in Annex III of this Agreement. It may be used for one or more consignments of the products in question.3. Where the conversion rate provided for in Annex III is applied the following note must be inserted in box 9 of the export licence: 'conversion rate for garments of a commercial size not exceeding 130 cm is to be applied'.4. Where the provisions of Article 3 (2) and Annex III of the Agreement concerning quantities reserved for industry are applied, the following note must be inserted in box 9 of the export licence: 'quantitites reserved for industry'.Article 8The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export licence already issued.Article 91. Exports shall be set off against the quantitative limits established for the year in which shipment of the goods has been effected, even if the export licence is issued after such shipment.2. For the purpose of applying paragraph 1, shipment of the goods is considered to have taken place on the date of their loading on to the exporting aircraft, vehicle or vessel.Article 10The presentation of an export licence, in application of Article 12, shall be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped.Section IIImportationArticle 11Importation into the Community of textile products subject to quantitative limits shall be subject to the presentation of an import authorization or document.Article 121. The competent Community authorities shall issue such import authorization or document automatically within five working days of the presentation by the importer of the original of the corresponding export licence.The import authorization or document shall be valid for six months.2. The competent Community authorities shall cancel the already issued import authorization or document if the corresponding export licence has been withdrawn.However, if the competent Community authorities have not been notified of the withdrawal or cancellation of the export licence until after the products have been imported into the Community, the quantities involved shall be set off against the quantitative limit for the category and the quota year in question.Article 131. If the competent Community authorities find that the total quantities covered by export licences issued by China for a particular category in any Agreement year exceed the quantitative limit established in Annex III for that category, as may be modified by Articles 5, 9 and 10 of the Agreement, or any definitive or provisional limit established under Article 6 of the Agreement, the said authorities may suspend the further issue of import authorizations or documents. In this event, the competent Community authorities shall immediately inform the authorities of China and the special consultation procedure set out in Article 16 of the Agreement shall be initiated forthwith.2. Exports of Chinese origin not covered by Chinese export licences issued in accordance with the provisions of this Protocol may be refused the issue of import authorizations or documents by the competent Community authorities.However, if the import of such products is allowed into the Community by the competent Community authorities, the quantities involved shall not be set off against the appropriate quantitative limits set out in Annex III or established as a result of the application of Article 6 of the Agreement, without the express agreement of China.TITLE IVFORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONSArticle 141. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be in ink and in block capitals.These documents shall measure 210×297 mm. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m². Each part shall have a printed guilloche-pattern background making any falsification by mechanical or chemical means apparent to the eye.If the documents have several copies only the top copy which is the original shall be printed with the guilloche-pattern background. This copy shall be clearly marked as 'original' and the other copies as 'copy'. Only the original shall be accepted by the competent authorities in the Community as being valid for the purposes of export to the Community inaccordance with the arrangements established by this Agreement.2. Each document 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,