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
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 or other commercial document relating to the products to the effect that the products in question originate in Macao 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 3 The certificate of origin shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative. The competent governmental authorities of Macao 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 4 Where 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 5 The 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 III DOUBLE-CHECKING SYSTEM FOR CATEGORIES OF PRODUCTS WITH QUANTITATIVE LIMITS Section I Exportation Article 6 The competent authorities of Macao shall issue an export licence in respect of all consignments from Macao of textile products referred to in Annex II, up to the relevant quantitative limits as may be modified by Articles 6,13 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 Articles 7 and 8 of the Agreement. Article 7 1. 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. Article 8 The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export licence already issued. Article 9 1. 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 certificate is issued after such shipment. 2. For the purposes 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 10 The presentation of an export licence, in application of Article 12 below, 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 II Importation Article 11 Importation into the Community of textile products subject to quantitative limits shall be subject to the presentation of an import authorization or document. Article 12 1. 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. 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 product has 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 13 1. If the competent Community authorities find that the total quantities covered by export certificates issued by Macao 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 6,13 and 14 of the Agreement, or any definitive or provisional limit established under Article 7 or 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 Macao and the special consultation procedure set out in Article 16 (1) of the Agreement shall be initiated forthwith. 2. Exports of Macao origin not covered by 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 are 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 II or established as a result of the application of Articles 7 or 8 of the Agreement, without the express Agreement of Macao authorities save as provided for in Article 11 of the 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 to the Community in accordance with the arrangements established by this Agreement shall be accompanied by a certificate of Macao origin conforming to the model annexed to this Protocol. 2. The certificate of origin shall be issued by the competent governmental authorities of Macao if the products in question can be considered products originating in that country within the meaning of the relevant rules in 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 Macao 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 3 The certificate of origin shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative. The competent governmental authorities of Macao 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 4 Where 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 5 The 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 III DOUBLE-CHECKING SYSTEM FOR CATEGORIES OF PRODUCTS WITH QUANTITATIVE LIMITS Section I Exportation Article 6 The competent authorities of Macao shall issue an export licence in respect of all consignments from Macao of textile products referred to in Annex II, up to the relevant quantitative limits as may be modified by Articles 6,13 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 Articles 7 and 8 of the Agreement. Article 7 1. 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. Article 8 The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export licence already issued. Article 9 1. 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 certificate is issued after such shipment. 2. For the purposes 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 10 The presentation of an export licence, in application of Article 12 below, 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 II Importation Article 11 Importation into the Community of textile products subject to quantitative limits shall be subject to the presentation of an import authorization or document. Article 12 1. 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. 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 product has 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 certificates issued by Macao 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 6,13 and 14 of the Agreement, or any 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.