AGREEMENT between the European Economic Community and the Republic of Indonesia on trade in textile products Done at Brussels on 28 June 1986THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF INDONESIA,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 the Republic of Indonesia (hereinafter referred to as 'Indonesia'),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 Indonesia,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,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 REPUBLIC OF INDONESIA:WHO HAVE AGREED AS FOLLOWS:SECTION ITrade arrangementsArticle 11. 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 21. This Agreement shall apply to trade in textile products of cotton, wool and man-made fibres originating in Indonesia 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).From the entry into force of the International Convention on the Harmonised Commodity Description and Coding System (HS) this classification will be based on the harmonized system and on the Community nomenclatures derived from that system.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 Indonesia and shall not have the effect of reducing any quantitative limit established in Annex II.The procedures for control of the origin of the products referred to above are laid down in Protocol A.Article 3Indonesia agrees for each Agreement 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 4Indonesia and the Community recognize the special and differential character of re-imports of textile products into the Community after processing in Indonesia.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 II when they are subject to the specific arrangements laid down in Protocol E.Article 5Exports of cottage industry fabrics woven on hand- or foot-operated looms, garments or other articles obtained manually from such fabrics and traditional folklore handicraft products shall not be subject to quantitative limits, provided that these products meet the conditions laid down in Protocol B.Article 61. 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, 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 Indonesian authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community 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 Indonesian authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products, which shall not be set
D The annual growth rate for the quantitative limits introduced under Article 8 of the Agreement shall be determined as follows: For products in categories falling within Group I, II, 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 Indonesia.PROTOCOL E Re-imports in the sense of Article 4 (2) 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 (2).2. Re-imports not covered by the Annex 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 II 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 carryover 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) carryover 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 Indonesia 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 Indonesia 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 Indonesia.8. The Community shall provide Indonesia 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 Indonesia 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 Indonesia and the Community.Annex to Protocol EOPT QUANTITATIVE LIMITSFor practical reasons the product descriptions used in Annex I are given in the present Annex in abbreviated form>POSIÇÃO NUMA TABELA>PROTOCOL F The Community and Indonesia agree that if the Multifibre Arrangement is extended for a period going beyond 31 December 1990 then the present Agreement will be automatically prolonged for a further period of one year up to 31 December 1991 in accordance with the economic and technical terms of the existing Agreement, with the adaptations strictly necessary for the application of the Agreement for the fifth year.Joint Declaration concerning batik fabrics and products thereof A.The Community and Indonesia agree that batik fabric may not be described as having been produced by the traditional handicraft batik process unless, for each of the colours or shades applied to the fabric, each of the following three operations has been carried out by hand:(a)waxing (application of wax by hand to the fabric);(b)dyeing/painting (application of colour either by the traditional cottage method of dyeing or by hand-painting);(c)de-waxing (boiling the fabric to remove the wax).B.The parties hereby further agree to the following arrangements:1.The competent Community authorities will accept as traditional folklore handicraft textile products within the meaning of Article 1 (c) of Protocol B all Avis juridique important|21987A0819(02)Acordo entre a Comunidade Económica Europeia e a República da Indonésia sobre o comércio de produtos têxteis - Protocolo A - Protocolo B - Protocolo C - Protocolo D - Protocolo E - Protocolo F - Actas aprovadas - Trocas de notas Tradução não oficial Jornal Oficial nº L 233 de 19/08/1987 p. 0039 - 0080 L 329 28/11/1990 by hand-painting);(c)de-waxing (boiling the fabric to remove the wax).B.The parties hereby further agree to the following arrangements:1.The competent Community authorities will accept as traditional folklore handicraft textile products within the meaning of Article 1 (c) of Protocol B all batik fabrics, irrespective of the method of manufacture of the basic fabric, and all products made or made up therefrom, whether sewn by hand or on a hand- or foot-operated sewing machine, provided that the process of applying colours and shades to the fabric has been the traditional handicraft batik process described at A above, and subject to appropriate certification by the competent Indonesian authorities.2.The competent Indonesian authorities will issue certificates conforming to the model annexed to Protocol B for batik fabrics or products thereof only when such fabrics or products have been produced by the processes, including in particular the traditional handicraft batik process, specified in the preceding paragraph.Done at Brussels, 28 June 1986.Head of Delegation of the Republic of IndonesiaEuropean Economic CommunityAgreed Minute In the context of the Agreement between the Community and Indonesia on trade in textile products initialled on 28 June 1986 the Community declared its readiness to consider in a spirit of cooperation any request made by Indonesia for advance use and carryover of a portion of any quantitative limit, as provided for in Article 7 (1) and (2) of the Agreement, beyond the extent provided for in the said Article 7.It was agreed that advance use of a portion of the quantitative limits for 1987 for each category of products is authorized up to 5 % of the corresponding quantitative limit for 1986.It was further agreed that carryover to the quantitative limits for the year 1987 of amounts not used during the year 1986 is authorized up to 7 % of the corresponding quantitative limit for 1987.Head of Delegation of the Republic of IndonesiaEuropean Economic CommunityExchange of Notes The Mission of the Republic of Indonesia 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 trade in textile products between Indonesia and the Community initialled on 28 June 1986.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 Republic of Indonesia is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1987 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 Republic of Indonesia to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Relations of the Commission of the European Communities the assurance of its highest consideration.Exchange of Notes The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Indonesia to the European Communities and has the honour to refer to the Note of 28 June 1986 regarding the Agreement on trade in textile products between Indonesia and the Community initialled on 28 June 1986.The Directorate-General wishes to confirm that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the Agreement, the Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1987.The Directorate-General for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Republic of Indonesia to the European Communities the assurance of its highest consideration.Agreed Minute The Community and Indonesia agree that transfers of quantitative limits of one ASEAN country into quantitative limits of another ASEAN country into any category of Groups I, II and III may be made, after notification, up to 10 % of the regional share of a quantitative limit to which the transfer is made, provided that an equivalent quantity is deducted from the share of the corresponding quantitative limit for the same region established in the Community's Agreement with another ASEAN country.Implementation of such transfers shall be subject to receipt of a corresponding notification from the ASEAN country accepting a deduction of the quantitative limit concerned.Such transfers shall be applicable for the year during which the notification is made.Head of Delegation of the Republic of IndonesiaEuropean Economic Community force in the Community.3. However, the products in Group III may be imported into the Community in accordance with the arrangements established by this Agreement on production of a declaration by the exporter on the invoice or other commercial document relating to the products to the effect that the products in question originate in Indonesia within the meaning of the relevant rules in force in the Community.4. The certificate of origin referred to in paragraph 1 shall not be required for import of goods covered by a certificate of origin Form A or Form APR completed in accordance with the relevant Community rules in order to qualify for generalized tariff preferences.Article 3The certificate of origin shall be issued only on application by the exporter or, under the exporter's responsibility, by his authorized representative. The competent governmental authorities of Indonesia shall ensure that the certificate of origin is properly completed and for this purpose they shall call for any necessary documentary evidence or carry out any check which they consider appropriate.Article 4Where different criteria for determining origin are laid down for products falling within the same category, certificates or declarations of origin shall contain a sufficiently detailed description of the goods to enable the criterion to be determined on the basis of which the certificate was issued or the declaration drawn up.Article 5The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the product shall not ipso facto cast doubt upon the statements in the certificate.TITLE IIIDOUBLE CHECKING SYSTEM FOR CATEGORIES OF PRODUCTS WITH QUANTITATIVE LIMITSSection IExportationArticle 6The competent authorities of Indonesia shall issue an exportlicence in respect of all consignments from Indonesia oftextile products referred to in Annex II, up to the relevant quantitative limits as may be modified by Articles 7, 13 and 14 of the Agreement and of textile products subject to any definitive or provisional quantitative limits established as a result of the application of Article 8 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 only cover one of the categories of products listed in Annex II 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 II 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'.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 fiveworking 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 about 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 Indonesia for a particular category in any Agreement year exceed the quantitative limit established in Annex II for that category, as may be modified by Articles 7, 13 and 14 of the Agreement, or any definitive or provisional limit established under Article 8 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 Indonesia and the special consultation procedure set out in Article 16 of the Agreement shall be initiated forthwith.2. Exports of Indonesian origin not covered by Indonesian 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