all categories of products the information referred to in paragraph 3 above shall be transmitted by the end of the third month following the quarter of the year to which the statistics relate.5. Should it be found, on analysis of the information exchanged, that there are significant discrepancies in the statistics between the returns for exports and those for imports, consultations may be held in accordance with the procedure specified in Article 14 of this Protocol.Article 111. In view of ensuring the effective functioning of this Protocol between Hungary and the Community, the Parties agree to cooperate fully in orderto prevent, to investigate and to take any necessary legal and/or administrative action against circumvention by transhipment, re-routing, false declaration concerning country or place, of origin, falsification of documents, false declaration concerning fibre content, quantities description or classification of merchandise and by whatever other means. Accordingly, Hungary and the Community agree to establish the necessary legal provisions and administrative procedures permitting effective action to be taken against such circumvention, which shall include the adoption of legally binding corrective measures against exporters and/or importers involved.2. Should either Party believe on the basis of information available that the present Protocol is being circumvented, that Party will consult with the other Party with a view to reaching a mutually satisfactory solution. These consultations will be held as early as possible and at the latest within 30 days from the date of request.3. Pending the results of the consultations referred to in paragraph 2, either Party shall, as a precautionary measure, if so requested by the other Party, take all necessary measures to ensure that, where sufficient evidence of circumvention is provided, 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.4. Should the Parties be unable, in the course of the consultations referred to in paragraph 2, to reach a mutually satisfactory solution, the initiating Party shall have the right:(a) where there is sufficient evidence that products originating in the other Party have been imported in circumvention of the present Protocol, to set off the relevant quantities against the quantitative limits established unter the Protocol;(b) where sufficient evidence shows that false declaration concerning fibre content, quantities, description or classification of products originating in the other Party has occurred, to refuse to import the products in question;(c) should it appear that the territory of the other Party is involved in transhipment or re-routing of products not originating in that Party, to introduce quantitative limits against the same products originating in the other Party if they are not already subject to quantitative limits, or to take any other appropriate measures.5. Without prejudice to Protocol 6 on mutual assistance in customs matters to the Europe Agreement, the Parties agree to establish a system of administrative cooperation to prevent and to address effectively all problems arising from circumvention in accordance with the provisions of Appendix A of this Protocol.Article 121. The quantitative limits established under this Protocol on imports into the Community of textile products of Hungarian origin will not be broken down by the Community into regional shares.2. The Parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows resulting in regional concentration of direct imports into the Community.3. Hungary shall monitor its exports of products under restraint or surveillance into the Community. Should a sudden and prejudicial change in traditional trade flows arise, the Community will be entitled to request consultations in order to find a satisfactory solution to those problems. Such consultations must be held within 15 working days of their being requested by the Community.4. Hungary shall endeavour to ensure that exports of textile products subject to quantitative limits into the Community are spaced out as evenly as possible over the year due account being taken in particular of seasonal factors.Article 131. The Parties shall refrain from discrimination in the allocation of the export licences and import authorizations or documents referred to in Appendices A and C.2. Should either Party find that the application of this Protocol or the commercial practices of either Party are disturbing existing commercial relations between the Community and Hungary consultations shall be started promptly, in accordance with the procedure specified in Article 14 with a view to remedying this situation.Article 141. Save where it is otherwise provided, the special consultation procedures referred to in this Protocol shall be governed by the following rules:- any request for consultations shall be notified in writing to the other Party,- the request for consultation shall be followed within 15 days of the notification by a statement setting out the reasons and circumstances which, in the opinion of the requesting Party, justify the submission of such a request,- the Parties shall enter into consultations within one month of notification of the request at the latest, with a view to reaching agreement or a mutually acceptable conclusion within one further month at the latest.2. If necessary, at the request of either of the Parties, consultations shall be held on any problems arising from the application of this Protocol. Any consultations held under this Article shall take place in
the request at the latest, with a view to reaching agreement or a mutually acceptable conclusion within one further month at the latest.2. If necessary, at the request of either of the Parties, consultations shall be held on any problems arising from the application of this Protocol. Any consultations held under this Article shall take place in a spirit of cooperation and with a desire to reconcile the differences between the Parties.Article 151. This Protocol shall enter into force on the first day of the month following the date on which the Parties notify each other of the completion of the procedures necessary for that purpose. This Protocol shall apply with effect from 1 January 1993. It shall expire at the end of the period referred to in Agreed Minute N° 5.2. Either Party may at any time propose consultations in accordance with Article 14, with a view to agreeing amendments to this Protocol.3. Either Party may, at any time, denounce this Protocol by notifying the other Party. This Protocol shall cease to apply six months after the date of such notification and the quantitative limits established under this Protocol shall be reduced proportionately.4. The Annexes, Appendices, Agreed Minutes and joint memoranda attached to this Protocol shall form an integral part thereof.5. This Protocol shall form a integral part of the Europe Agreement between the Community and Hungary, signed on 16 December 1991 and of the Interim Agreement signed between the Parties on the same date.Article 16This Protocol shall be drawn up in two copies in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese, Spanish and Hungarian languages, each of those texts being equally authentic.ANNEX I A PRODUCTS REFERRED TO IN ARTICLE 1 (1) 1. When the constitutive material of the products of categories 1 to 114 is not specifically mentioned, these products are to be taken to be made exclusively of wool or of fine hair, of cotton or of man-made fibres.2. Garments which are not recognizable as being garments for men or boys or as being garments for women or girls are classified with the latter.3. Where the expression 'babies` garments' is used, this is meant to cover garments up to and including commercial size 86.>POSIÇÃO NUMA TABELA>>POSIÇÃO NUMA TABELA>>POSIÇÃO NUMA TABELA>>POSIÇÃO NUMA TABELA>>POSIÇÃO NUMA TABELA>>POSIÇÃO NUMA TABELA>ANNEX I B Products referred to in Article 1 (1) >POSIÇÃO NUMA TABELA>ANNEX II COMMUNITY QUANTITATIVE LIMITS FOR HUNGARY (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Protocol)>POSIÇÃO NUMA TABELA>ANNEX III HUNGARIAN CEILINGS ON COMMUNITY EXPORTSPART 1 (The full product descriptions are to be found in Annex III, Part 2, to the Protocol)COMMUNITY CEILINGS WITHIN THE HUNGARIAN GLOBAL QUOTAAmounts are given in millions of US dollars >POSIÇÃO NUMA TABELA>PART 2 (List of products to annex III Part 1) >POSIÇÃO NUMA TABELA>Appendix A TITLE I CLASSIFICATIONArticle 11. The competent authorities of the Community undertake to inform Hungary of any changes in the combined nomenclature (CN) before the date of their entry into force in the Community.2. The competent authorities of the Community shall inform the competent authorities of Hungary of any decisions relating to he classification of products subject to the present Protocol, within one month of their adoption at the latest. Such communication shall include:(a) a description of the products concerned;(b) the relevant category, related CN codes;(c) the reasons which have led to the decision.3. Where a classification decision results in a change of classification practice or a change in category of any product subject to the present Protocol, the affected products shall follow the trade regime applicable to the practice or category they fall into after such change, as provided for in this Protocol. Any such decision shall enter into force 30 days after it has been notified to the other Party.The Contracting Parties agree to enter into consultation in accordance with the procedures described in Article 14 of the Protocol with a view to honouring the obligation under Article 2 (2) of the Protocol.Products shipped before the date of the application of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation within 60 days of that date.4. In case of divergent opinions between Hungary and the competent Community authorities at the point of entry into the Community on Hungary;(b) garments or other textile articles of a kind traditionally made in the cottage industry of Hungary obtained manually from the fabrics referred to above and sewn exclusively by hand without the aid of any machine;(c) traditional folklore products of Hungary made by hand, as in the attached list agreed between the Community and Hungary.Exemption shall be granted in respect only of products covered by a certificate conforming to the specimen attached to this Appendix and issued by the competent authorities in the supplying Party. These certificates must indicate the reasons justifying their issue; the competent authorities of the importing Party will accept them after having checked that the products concerned have fulfilled the conditions established in this Appendix. The certificates concerning the products envisaged in indent (c) above must bear a stamp 'FOLKLORE` marked clearly. In the case of a difference of opinion between the Parties concerning the nature of these products, consultations shall be held within one month in order to resolve these differences.Should imports of any product covered by this Appendix reach proportions liable to cause problems within the Community, consultations with Hungary shall be initiated as soon as possible, with a view to resolving the situation by the adoption if necessary of a quantitative limit, in accordance with the procedure laid down in Article 14 of this Protocol.2. The provisions of Parts IV and V of Appendix A shall apply mutatis mutandis to the products covered by paragraph 1 of this Appendix.Annex to Appendix C Agreed list of traditional Hungarian folklore textile handicraftsThis list covers only those textile products linked historically and uniquely with traditional Hungarian folklore.They are garments in the style of blouses, shirt-blouses and tunics as well as waistcoats, aprons, table linen, shawls and scarves.These products, of which the names, descriptions and styles are shown below, have the following characteristics:- they are produced in Hungarian handicraft workshops,- they are embellished in the Hungarian folklore styles with embroidery executed entirely by hand,- they do not include products with appliqued embroidery,- they do not include garments with zips. >POSIÇÃO NUMA TABELA> >INÍCIO DE GRÁFICO>>FIM DE GRÁFICO>Agreed Minute N° 1 In the context of the Protocol between the European Economic Community and the Republic of Hungary on trade in textile and clothing products, initialled on 10 December 1992, the Parties agreed that Articles 7 and 8 of the Protocol do not preclude the Community, if the conditions are fulfilled, from applying the surveillance system or the safeguard measures for one or more of its regions in conformity with the principles of the internal market.In such an event, the Republic of Hungary shall be informed in advance of the relevant provisions of Appendix A to this Protocol to be applied, as appropriate.For the Government of the Republic of HungaryFor the Council of the European CommunitiesAgreed Minute N° 2 Nothwithstanding Article 12 (1) of this Protocol, for imperative technical or administrative reasons or to find a solution to economic problems from regional concentration of imports, or in order to combat circumvention and fraud of the provisions of this Protocol, the Community will establish for a limited period of time a specific management system in conformity with the principles of the internal market.However, if the Parties are unable to reach a satisfactory solution during the consultations provided for in Article 12 (3), Hungary undertakes, if so requested by the Community, to respect temporary export limits for one or more of regions of the Community. In such a case, these limits shall not preclude the importation into the region(s) concerned of products which were shipped from Hungary on the basis of export licences obtained before the date of formal notification to Hungary by the Community about the introduction of the above limits.The Community shall inform Hungary of the technical and administrative measures, such as defined in the attached note verbale, that need to be introduced by both Parties in order to implement the above paragraphs in conformity with the principles of the internal market.For the Government of the Republic of HungaryFor the Council of the European CommunitiesNote verbale The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Hungary to the European Communities and has the honour to refer to the Protocol on textile products negotiated between the Republic of Hungary and the Community initialled on 10 December 1992.The Directorate-General wishes to inform the Mission of the Republic of Hungary that the Community has decided to apply, starting from 1 January 1993, the provisions of paragraph 1 of Agreed Minute No 2 to the Protocol initialled on 10 December 1992. Consequently, the corresponding provisions of Articles 7 and 12 of Appendix A to the Protocol shall also be applied as of the above date.The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Republic of Hungary to the European Communities the assurance of its highest consideration.Agreed Minute N° 3 In the context of the Protocol between the European Economic Community and the Republic the trade in the type of products covered by this Protocol between Hungary and third countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Hungary prior to their importation into the Community. This information may include at the request of the Community copies of all available relevant documentation.5. Where sufficient evidence shows that the provisions of this Protocol have been circumvented or infringed, the competent authorities of Hungary and the Community may agree to take the measures set out in Article 11 (4) of the Protocol, and any other measures as are necessary to prevent a recurrence of such circumvention or infringement. >INÍCIO DE GRÁFICO>>FIM DE GRÁFICO>>INÍCIO DE GRÁFICO>>FIM DE GRÁFICO> Appendix B Reimports into the Community, within the meaning of Article 4 (2) of this Protocol, of products listed in the Annex to this Appendix shall be subject to the provisions of this Protocol, unless the special provisions below provide otherwise:1. Subject to paragraph 2, only reimports into the Community of products affected by the specific quantitative limits laid down in the Annex to this Appendix shall be considered reimports within the meaning of Article 4 (2) of the Protocol.2. Reimports not covered by the Annex to this Appendix may be made subject to specific quantitative limits following consultations in accordance with the procedures set out in Article 14 of the Protocol, provided the products concerned are subject to quantitative limits under Annex II to the Protocol or to surveillance measures.3. Having regard to the interests of both Parties, the Community may at its discretion, or in response to a request from Hungary under Article 14 of the Protocol, examine and give effect to:(a) the possibility of transferring from one category to another, using in advance or carrying over from one year to the next, portions of specific quantitative limits;(b) the possibility of increasing specific quantitative limits.4. However, the Community may apply automatically the flexibility rules set out in paragraph 3 above within the following limits:(a) transfers between categories may not exceed 25 % of the quantity for the quantity to which the transfer is made;(b) carry-over of a specific quantitative limit from one year to the next may not exceed 13,5 % of the quantity set for the year of actual utilization;(c) advance use of specific quantitative limits from one year to another may not exceed 7,5 % of the quantity set for the year of actual utilization;5. The Community shall inform Hungary of any measures taken pursuant to the preceding paragraphs.6. The competent authorities in the Community shall debit the specific quantitative limits referred to in paragraph 1 at the time of issue of the prior authorization required by Council Regulation (EEC) No 636/82 which governs economic outward processing arrangements. A specific quantitative limit shall be debited for the year in which a prior authorization is issued.7. Transfers from one category to another and combined debits from the quantitative limit for products of Groups II and III will be calcultated in accordance with the table of equivalence in Annex I to the Agreement.8. A certificate of origin made out by the organizations authorized to do so under Hungarian law shall be issued, in accordance with Appendix A to the Protocol, for all products covered by this Appendix. This certificate shall bear a reference to the prior authorization mentioned in paragraph 6 above as evidence that the processing operation it describes has been carried out in Hungary.9. The Community shall provide Hungary with the names and addresses of, and specimens of the stamps used by, the competent authorities of the Community which issue the prior authorizations referred to in paragraph 6 above.10. Without prejudice to the provisions of paragraphs 1 to 9 above, Hungary and the Community shall continue consultations with a view to reaching a mutually acceptable solution enabling both Parties to benefit from the Protocol's provisions on outward processing traffic and so ensure the effective development of trade in textile products between Hungary and the Community.Annex to Appendix B OPT QUANTITATIVE LIMITS FOR HUNGARY(For practical reasons the product descriptions used in the Annex are given in abbreviated form) >POSIÇÃO NUMA TABELA>Appendix C referred to in Article 5 (3)COTTAGE INDUSTRY AND FOLKLORE PRODUCTS ORIGINATING IN HUNGARY1. The exemption provided for in Article 5 (3) in respect of cottage-industry products shall apply to the following types of product only:(a) fabrics woven on looms operated solely by hand or foot, being fabrics of a kind traditionally made in the cottage industry of Hungary;(b) garments or other textile articles of a kind traditionally made in the cottage industry of Hungary obtained manually from the fabrics referred to above and sewn exclusively by hand without the aid of any machine;(c) traditional folklore products of Hungary made by hand, as in the attached list agreed between the Community and inform at least one working day in advance of its introduction the other Party, and consultations may be requested by either Party under Article 14 of this Protocol.3. Where a surveillance system is established under this Article by the Community, the relevant provisions on double-checking, classification and certification of origin laid down in Appendix A shall be applied by Hungary, as appropriate.Article 81. Exports of textile products to either Party which are not subject to quantitative limits, may be made subject to quantitative limits in accordance with the following paragraphs.2. Should one Party consider that imports of textile products originating in the other Party and covered by this Protocol take place in such increased quantities, or under such conditions, so as to cause serious damage or actual threat thereof, to the importing Party's production of like or directly competitive products, it may request consultations under Article 14 of this Protocol with a view to reaching agreement on an appropriate quantitative limit for the textile category in question.The quantitative limits agreed upon may in no case be lower than 110 % of the level of the importing Party's imports during the 12-month period terminating two months, or, where data is not available, three months, preceding the month in which the request for consultation is made, of products in that category originating in the other Party.3. In critical circumstances where delay would cause damage difficult to repair, action may be taken provisionally by the importing Party on the condition that the request for consultations shall be effected immediately afterwards. This action shall take the form of a quantitative restraint on Hungarian exports to, or imports from, the Community, for a provisional three-month period starting from the date of the request. Such a provisional limit shall be set at 25 %, at least, of the level of imports or exports during the 12-month period terminating two months, or, where data is not available, three months, preceding the month in which the request for consultation is made.4. Should the consultations not lead to an agreed solution within one month then the provisional restraint referred to in paragraph 3 can be either renewed for a further three-month period pending further consultations, or made definitive at an annual level not lower than 100 % of the imports for the 12-month period terminating two months, or where data is not available three months, preceding the month in which the request for consultation is made.5. Where paragraphs 2, 3 or 4 are applied, either Party shall authorize imports belonging to the textile category of products in question, which were shipped from the other Party before the submission of the request for consultation.Where paragraphs 2, 3 or 4 are applied, the Party concerned undertakes to issue export or import licences for products covered by contracts effectively concluded before the introduction of the quantitative limit, but up to the volume of the quantitative limit fixed.6. The duration of the measure and the annual growth rates to be applied to any quantitative limit introduced under this Article shall be decided when introducing the measure.7. The provisions of this Protocol which concern exports of products subject to the quantitative limits established in Annex II or Annex III shall also apply to products for which quantitative limits are introduced under this Article.8. Measures invoked pursuant to the provisions of this Article can in no case remain in force after the period for the elimination of all quantitative restrictions, and measures of equivalent effect, laid down in this Protocol, has elapsed.Article 91. Nothing in this Protocol prevents a Party from unilaterally removing a quantitative limitation or increasing the level of access under a limitation, should the conditions in its market so permit.Article 101. Hungary undertakes to supply the Community with precise statistical information on all export and import licences issued by the Hungarian authorities for all categories of textile products subject to the quantitative limits established under this Protocol, and on all certificates issued by the Hungarian authorities for all products referred to in Article 5 (3) which are covered by the provisions of Appendix C to this Protocol.The Community shall similarly transmit to the Hungarian authorities precise statistical information on import authorizations issued by the Community authorities in connection with the export licences and the certificates issued by Hungary.2. For all categories of products, the information referred to in paragraph 1 shall be transmitted by the end of the month following the month to which the statistics relate as regards Hungarian export licences, and by the end of the second month as regards Hungarian import licences.3. The Parties undertake to provide each other's authorities, by 15 April of each calendar year, with the preceding year's statistics on imports of all textile products covered by this Protocol.Either Party shall, at the other Party's request, transmit available statistical information on all exports of textile products covered by this Protocol.The Parties shall transmit to each other's authorities statistical information on the products covered by Article 5 (1).4. For all categories of products the information referred to in paragraph 3 above shall be transmitted by the end of the third month following the quarter of the year to which the statistics relate.5. Should it be found, on analysis of the information exchanged, that there are significant discrepancies in the statistics between the returns for exports and those for