any change in this information. Article 20 1. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the 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 Macao giving, where appropriate, the reasons of form or substance for an inquiry. 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 above shall be applicable to subsequent verifications of the declarations of origin referred to in Article 2 of this Protocol. 4. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 above 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 or declaration applies 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 2 (1) of this Protocol. 5. For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept for at least a period of three years by the competent governmental authority in Macao. 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 21 1. Where the verification procedure referred to in Article 20 or where information available to the Community or to Macao indicates or appears to indicate that the provisions of this Agreement are being contravened, both parties shall cooperate closely and with the appropriate urgency to prevent such contravention. 2. To this end, Macao shall, on its own initiative or at the request of the Community, carry out appropriate inquiries or arrange for such inquiries to be carried out concerning operations which are or appear to the Community to be in contravention of this Agreement. Macao shall communicate the results of these inquiries to the Community together with any other pertinent information enabling the true origin of the goods to be determined. 3. By agreement between the Community and Macao officials designated by the Community may be present at the inquiries referred to in paragraph 2. 4. Pursuant to the cooperation referred to in paragraph 1, Macao and the Community shall exchange any information considered by either partner to be of use in preventing the contravention of the provisions of this Agreement. Such information may include information on trade in products subject to this Agreement between Macao and other countries and information on production of such products in Macao. 5. Where it is established that the provisions of this Agreement have been contravened, Macao and the Community may agree to take such measures as are necessary to prevent a recurrence of such contravention. >PIC FILE= "T0036596"> >PIC FILE= "T0036597"> PROTOCOL B Under Article 7 (6) of the Agreement, a quantitative limit may be fixed on a regional basis where imports of a given product into any region of the Community in relation to the amounts determined in accordance with paragraph 2 of the said Article 7 exceed the following regional percentage: >PIC FILE= "T0036598"> PROTOCOL C The annual growth rate for the quantitative limits introduced under Article 7 of the Agreement shall be determined as follows: For products in categories falling within Group I, II and III, the growth rate shall be fixed by agreement between the parties in accordance with the consultation procedure established in Article 16 (1) 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 Macao. ANNEX I Certain changes have been made in the composition of the textile groups referred to in the Agreement. To facilitate reference to the new groupings, their composition is set out below: >PIC FILE= "T0036570"> Note: Category 10 comprises former categories 10 and 11. Category 24 comprises former categories 24 and 25. Category 19 comprises former categories 19 and 89. Category 72 comprises former categories 72 and 79.
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 (1), 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 Macao in 1980. 6. Quantitative limits may also be established by the Community on a regional basis in accordance with the provisions of Protocol B. 7. The annual growth rate for the quantitative limits introduced under this Article shall be determined in accordance with the provisions of Protocol C. 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 Macao. 9. In the event of the provisions of paragraph 2, 3 or paragraph 4 being applied, the Macao authorities undertake to issue export licences for products covered by contracts concluded before the introduction of the quantitative limit, up to the volume of the quantitative limit fixed for the current year. 10. Up to the date of communication of the statistics referred to in Article 9 (6) the provisions of paragraph 2 shall apply on the basis of the annual statistics previously communicated by the Community. 11. The provisions of the Agreement which concern exports of products subject to the quantitative limits established in Annex II shall also apply to products for which quantitative limits are introduced under this Article. Article 8 1. Where the Community ascertains that the level of imports in a given category of Group I subject to quantitative limits set out in Annex II exceeds in any Agreement year the level of imports in the preceding year by 10 % of the level of the quantitative limit set out in Annex II for the current Agreement year, it may request the opening of consultations in accordance with the provisions described in Article 16 of this Agreement with a view to reaching agreement on: - the suspension, wholly or in part, of the provisions of Article 6, or - a modification of the quantitative limit set out in Annex II by the establishment of an ad hoc limit below the existing quantitative limit, - as well as the corresponding equitable and quantifiable compensation. 2. The Community shall authorize the importation of products of the said category shipped from Macao before the date on which the request for consultations was submitted. Pending a mutually satisfactory solution, Macao undertakes for a period of one month from the date of notification of the request for consultations, to restrain exports of the products in the category concerned to the Community or to the region or regions of the Community market specified by the Community to one-twelfth of the level of exports reached during the preceding calendar year. 3. A quantitative limit modified as a result of the application of paragraph 1 in any year preceding the final Agreement year shall be subject to a growth rate so as to ensure that the level of the quantitative limit set out in Annex II for the final Agreement year is regained in that year. 4. Should the Parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 16 of the Agreement, Macao undertakes, if so requested by the Community: - to suspend, wholly or in part, the provisions of Article 6 in respect of the Community or any of its regions for the category concerned, or - to modify the quantitative limit set out in Annex II for the category concerned so as to restrain exports to the Community or any of its regions to 125 % of imports attained during the preceding calendar year, or to the level of exports up to date of the request for consultations plus the level of exports provided for during the consultation period under paragraph 2, whichever is the higher. In the event that the provisions of this paragraph are applied the Community undertakes to maintain an offer of equitable and quantifiable compensation. The application of the measures provided for in this paragraph is limited to the year in which the measures are taken. 5. The provisions of paragraph 1 shall not apply to a given category unless the quantitative limits established in Annex II for the Community for that category represent at least 1 % of total Community imports during 1980. 6. The provisions of paragraph 1 shall not apply to a given category unless the level of imports originating in Macao during the current Agreement year represent at least 50 % of the quantitative limit set out in Annex II for that category in the Community as a whole of in any region or regions of the Community concerned. 7. Any limit modified in accordance with the provisions of paragraph 1 or 4 may in no case be lower than the level of imports of products in that category originating in Where the competent authorities have evidence 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 Macao authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products, which shall not be set off against the quantitative limit established under this Agreement for the current or the following year. Article 6 1. In any one Agreement year advance use of a portion of the quantitative limit established for the following Agreement year may be agreed following consultations in accordance with the procedures referred to in Article 16 (1) for each category of products except for categories 1, 2 and 3, between 1 and 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 amounts not used during any one Agreement year may be agreed following consultations in accordance with the procedures referred to in Article 16 (1) for each category of product except for categories 1, 2 and 3, between 1 and 5 % 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 4,5,6,7 and 8 may be made for any Agreement year up to 3,5 % 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 for any Agreement year up to 5 % 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 the following limits: >PIC FILE= "T0036568"> 6. Prior notification shall be given by the authorities of Macao in the event of recourse to the provisions of paragraphs 1,2 and 3 above. Article 7 1. Exports of textile products not listed in Annex II to this Agreement may be made subject to quantitative limits by Macao 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 II originating in Macao exceeds, in relation to the preceding year's total imports into the Community of products in that category, the following rates: >PIC FILE= "T0036569"> it may request the opening of consultations in accordance with the procedure described in Article 16 (1) of this Agreement, with a view to reaching agreement on a appropriate restraint level for the products in such category. The Community shall authorize the importation of products of the said category shipped from Macao before the date on which the request for consultations was submitted. 3. Pending a mutually satisfactory solution, Macao undertakes from the date of notification of the request for consultations to limit exports of the products in the category concerned to the Community or to the region or 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 consultations, or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher. However, in exceptionally grave circumstances, following a request by the Community, and pending a mutually satisfactory solution, Macao undertakes to suspend at the level indicated by the Community exports of the products in the category concerned to the Community or to the regions of the Community market specified by the Community. 4. Should the Parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 16 (1) of the Agreement, 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 (1), 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 ACORDO entre a Comunidade Económica Europeia e Macau sobre o Comércio de Produtos Têxteis (1) (1) Por razões materiais, o presente Acordo é publicado no Jornal Oficial das Comunidades Europeias na língua em que foi negociado. A versão nas outras línguas será publicada posteriormente. AGREEMENT between the European Economic Community and Macao on Trade in textile products THE COUNCIL OF THE EUROPEAN COMMUNITIES, of the one part, and THE GOVERNMENT OF MACAO, of 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 Macao, 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 Macao, 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 together with the Conclusions adopted on 22 December 1981 by the Textiles Committee, HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries: THE COUNCIL OF THE EUROPEAN COMMUNITIES: THE GOVERNMENT OF MACAO: WHO HAVE AGREED AS FOLLOWS: SECTION I Trade Arrangements Article 1 1. The parties recognize and confirm that, subject to the provisions of this Agreement and without prejudice to their rights and obligations under the General Agreement on Tariffs and Trade, the conduct of their mutual trade in textile products shall be governed by the provisions of the Geneva Arrangement. 2. In respect of the products covered by this Agreement, the Community undertakes not to introduce quantitative restrictions under Article XIX of the General Agreement on Tariffs and Trade or Article 3 of the Geneva Arrangement. 3. Measures having equivalent effect to quantitative restrictions on the importation into the Community of the products covered by this Agreement shall be prohibited. Article 2 1. This Agreement shall apply to trade in textile products originating in Macao of cotton, wool and man-made fibres which are listed in Annex I. 2. The classification of the products covered by this Agreement is based on the nomenclature of the Common Customs Tariff and on the Nomenclature of Goods for the External Trade Statistics of the Community and the Statistics of Trade between Member States (NIMEXE). 3. The origin of the products covered by this Agreement shall be determined in accordance with the rules in force in the Community. Any amendment to these rules of origin shall be communicated to Macao and shall not have the effect of reducing any quantitative limit established in Annex II. The procedure for control of the origin of the products referred to above is laid down in Protocol A. Article 3 Macao agrees for each calendar year to restrain its exports to the Community of the products described in Annex II to the limits set out therein. Exports of textile products set out in Annex II shall be subject to a double-checking system specified in Protocol A. Article 4 Macao and the Community recognize the special and differential character of reimports of textile products into the Community after processing in Macao. Such reimports may be agreed outside the quantitative limits established under this Agreement provided that they are effected in accordance with the regulations on economic outward processing in force in the Community. Article 5 1. Imports into the Community of textile products covered by this Agreement shall not be subject to the quantitative limits established in Annex II, provided that they are declared to be for re-export outside the Community in the same state or after processing, under the administrative system of control set up for this purpose 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 Macao authorities, and to proof of origin in accordance with the provisions of Protocol A. 2. Where the competent authorities have evidence 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 Macao authorities within four weeks of the quantities involved and authorize imports of identical quantities of the this purpose. It shall be applicable until 31 December 1986. 2. This Agreement shall apply with effect from 1 January 1983. 3. Either Party may at any time propose modifications to the Agreement. 4. Either Party may at any time denounce this Agreement provided that at least 90 days'notice is given. In that event the Agreement shall come to an end on the expiry of the period of notice. 5. The Annexes and Protocols to this Agreement, and the exchange of letters shall form an integral part thereof. Article 19 This Agreement shall be drawn up in two copies in the Danish, Dutch, English, French, German, Greek, Italian and Portuguese languages, each of these texts being equally authentic. ANNEX I Certain changes have been made in the composition of the textile groups referred to in the Agreement. To facilitate reference to the new groupings, their composition is set out below: >PIC FILE= "T0036570"> Note: Category 10 comprises former categories 10 and 11. Category 24 comprises former categories 24 and 25. Category 19 comprises former categories 19 and 89. Category 72 comprises former categories 72 and 79. GROUP I A >PIC FILE= "T0036571"> GROUP I B >PIC FILE= "T0036572"> GROUP II A >PIC FILE= "T0036573"> GROUP II B >PIC FILE= "T0036574"> >PIC FILE= "T0036575"> >PIC FILE= "T0036576"> >PIC FILE= "T0036577"> >PIC FILE= "T0036578"> GROUP III A >PIC FILE= "T0036579"> >PIC FILE= "T0036580"> >PIC FILE= "T0036581"> >PIC FILE= "T0036582"> >PIC FILE= "T0036583"> >PIC FILE= "T0036584"> GROUP III B >PIC FILE= "T0036585"> >PIC FILE= "T0036586"> >PIC FILE= "T0036587"> GROUP III C >PIC FILE= "T0036588"> >PIC FILE= "T0036589"> >PIC FILE= "T0036590"> ANNEX II For practical reasons the product descriptions used in Annex I are given in the present Annex in abbreviated form >PIC FILE= "T0036591"> >PIC FILE= "T0036592"> REGIONAL LIMITS >PIC FILE= "T0036593"> >PIC FILE= "T0036594"> PROTOCOL A TITLE I CLASSIFICATION Article 1 1. The competent authorities of the Community undertake to inform Macao of any changes in the Common Customs Tariff or NIMEXE before the date of their entry into effect in the Community. 2. The competent authorities of the Community undertake to inform Macao of any decisions relating to the classification of products subject to the present Agreement within one month of their adoption at the latest. Such communication shall include: (a) a description of the products concerned; (b) the relevant category, tariff position or sub-position and the NIMEXE code; (c) the reasons which have led to the decision. 3. Where a decision on classification results in a change of classification practice or a change of category of any product subject to the present Agreement, the competent authorities of the Community shall provide 30 days'notice, from the date of the Community's communication, before the decision enters into effect. Products shipped before the date of entry into effect of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation into the Community within 60 days of that date. 4. Where a Community decision on classification resulting in a change of classification practice or a change of categorization of any product subject to the present Agreement affects a category subject to restraint, the Community undertakes to enter into consultations without delay in accordance with the procedures described in Article 16 (2) of this Agreement with a view to agreeing necessary adjustments to the appropriate quantitative limits established in Annex II and mitigating any disruptive effects which might arise from such a Community decision. TITLE II ORIGIN Article 2 1. Products originating in Macao for export