AGREEMENT between the European Community and the People's Republic of China on trade in textile products not covered by the MFA bilateral Agreement on trade in textile products initialled on 9 December 1988 as extended and modified by the exchange of letters initialled on 8 December 1992THE COUNCIL OF THE EUROPEAN UNION,of the one part, andTHE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA,of the other part,DESIRING to promote the orderly and equitable development of trade in textile products other than those made of cotton, wool, fine animal hair and man-made fibres, between the European Community (hereinafter referred to as 'the Community`) and the People's Republic of China (hereinafter referred to as 'China`), with a view to strengthening cooperation and security for trade,RESOLVED to take the fullest possible account of the serious economic and social problems at present affecting the textile industry in both importing and exporting countries and, in particular, to eliminate real risks of market disruption on the market of the Community and real risks of disruption to the textile trade of China,HAVING REGARD to the Trade and Economic Cooperation Agreement between the Community and China,HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN UNION:THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA:WHO HAVE AGREED AS FOLLOWS:Article 11. The present Agreement covers the trade in textile raw materials and textile products, falling within Section XI of the combined nomenclature, that are listed in Annex I originating in the People's Republic of China.2. Subject to the provisions of this or any subsequent Agreement, the Community undertakes, in respect of the products listed in Annex I, to suspend for the duration of this Agreement the application of quantitative import restrictions in force at the time of its initialling and not to introduce new quantitative restrictions, except as specified below.3. Without prejudice to anti-dumping and countervailing measures, measures having equivalent effect to quantitative restrictions on the importation into the Community of the products listed in Annex I shall be prohibited for the duration of this Agreement.Article 21. The classification of the products covered by this Agreement is based on the tariff and statistical nomenclature and on the Common Customs Tariff of the Community (hereinafter called the 'combined nomenclature` or in abbreviated form 'CN`).Any amendment to the combined nomenclature (CN) made in accordance with the procedures in force in the Community, concerning categories of products covered by this Agreement or any decision relating to the classification of goods shall not have the effect of reducing any quantitative limit introduced pursuant to this Agreement.2. 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 China and shall not have the effect of reducing any quantitative limit introduced pursuant to this Agreement.The procedures for control of the origin of the products referred to above are laid down in Protocol A.Article 31. China agrees to establish and maintain for each calendar year quantitative limits on its exports to the Community in accordance with Annex II. Such exports shall be subject to the double checking system specified in Protocol A.2. In administering the quantitative limits referred to in paragraph 1 China shall ensure that the Community textile industry shall benefit from utilization of the said limits.More particularly, as regards categories 156, 157, 159 and 161, China undertakes to reserve, as a priority, 23 % of the quantitative limits concerned for users belonging to the Community textile industry during 90 days beginning on 1 January of each year.To facilitate the implementation of these provisions, the Community shall provide the competent Chinese authorities, before the end of each year, with a list of interested manufacturers and processors and, if possible, of the quantity of products requested by each firm. To this end, the firms concerned are invited to make direct contact with the relevant Chinese bodies by 15 February of the following year in order to make their purchasing intentions known.3. In the event of denunciation of this Agreement as provided for in Article 17 (3) the quantitative limits established in Annex II shall be reduced on a pro rata basis.Article 41. 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 within the Community of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Chinese authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community authorities ascertain that re-exports of textile products have been
the release for home use within the Community of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Chinese authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community authorities ascertain that re-exports of textile products have been set off against a quantitative limit established under this Agreement, but that the products have subsequently been re-exported outside the Community, the authorities concerned shall inform the Chinese authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products which shall not be set off against the quantitative limit established under this Agreement for the current or the following year, as appropriate.Article 51. China shall monitor its exports of products under restraint 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.2. China 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 61. China shall supply the Community with precise statistical information on all export licences issued for categories of textile products subject to the quantitative limits set out in Annex II, expressed in quantities and in terms of value and broken down by Member States of the Community.2. The Community shall likewise transmit to the Chinese authorities precise statistical information on import authorization or documents issued by the Community authorities and import statistics for products covered by the quantitative limits set out in Annex II.3. The information referred to in paragraphs 1 and 2 above shall, for all categories of products, be forwarded before the end of the month following the month to which the statistics relate.4. Upon request by the Community, China shall supply import statistics for all products covered by Annex I.5. Should it be found on analysis of the information exchanged that there are significant discrepancies between the returns for exports and those for imports, consultations may be initiated in accordance with the procedure specified in Article 14 of this Agreement.6. For the purpose of applying the provisions of Article 7, the Community undertakes to provide the Chinese authorities before 15 April of each year with the preceding year's statistics on imports of all textile products covered by this Agreement, broken down by supplying country and Community Member States.Article 71. Exports of textile products not listed in Annex II to this Agreement may be made subject to quantitative limits 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 China, in relation to the preceding years' total imports into the Community from all sources of products in that category, reaches 25 % for categories covering silk products and 10 % for all the other products listed in Annex I, it may request the opening of consultations in accordance with the procedure described in Article 14 of this Agreement, with a view to reaching agreement on an appropriate restraint level for the products falling within such category.The Community shall authorize the importation of products of the said category shipped from China before the date on which the request for consultations was submitted.For the purposes of applying the provisions of this paragraph in the year 1995, the preceding year's total imports from all third countries shall be calculated on the basis of imports into the Community as constituted on 31 December 1994 and of imports into Austria, Finland and Sweden. Trade between the Community, Austria, Finland and Sweden, or between Austria, Finland and Sweden shall be excluded from this total.3. Pending a mutually satisfactory solution, China undertakes to limit exports of the products in the category concerned to the Community or to those regions of the Community market specified by the Community for a provisional period of three months from the date on which the request for consultations is made. Such provisional limit shall be established at 25 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2, and gave rise to the request for consultation, or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher.4. Should the Parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 14 (1), 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 14 with a view to fulfilling the conditions set out in paragraph 2, should the trend of total 9 (4) of the Agreement, and any other measures as are necessary to prevent a recurrence of such circumvention or infringement.Annex to Protocol A, Article 2 (1)>REFERÊNCIA A UMA IMAGEN>Annex to Protocol A, Article 7 (1): Model 1>REFERÊNCIA A UMA IMAGEN>PROTOCOL BOutward processing traffic (OPT) (Referred to in Article 11 of the Agreement)1. Without prejudice to paragraph 2, only re-imports into the Community of products affected by the specific quantitative limits laid down in the Annex to this Protocol shall be considered re-imports within the meaning of Article 11 of the Agreement.2. Re-imports not covered by the Annex to this Protocol may be made subject to specific quantitative limits following consultations in accordance with the procedures set out in Article 14 of the Agreement, provided the products concerned are subject to quantitative limits pursuant to the Agreement.3. Having regard to the interests of both Parties, the Community may at its discretion, or in response to a request under Article 14 of the Agreement:(a) examine 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) consider the possibility of increasing specific quantitative limits.4. However, the Community may apply automatically the flexibility rules set out in paragraph 3 within the following limits:(a) transfers between categories may not exceed 20 % of the quantity for the category to which the transfer is made;(b) carry-over of a specific quantitative limit from one year to the next may not exceed 10,5 % 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 China 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 (EC) No 3036/94 which governs economic outward processing arrangements. A specific quantitative limit shall be debited for the year in which a prior authorization is issued.7. A certificate of origin made out by the organizations authorized to do so under Chinese law shall be issued, in accordance with Protocol A to the Agreement, for all products covered by this Protocol. This certificate shall bear a reference to the prior authorization mentioned in paragraph 6 as evidence that the processing operation it describes has been carried out in China.8. The Community shall provide China 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 6.9. Without prejudice to the provisions of paragraphs 1 to 8, China and the Community shall continue consultations with a view to seeking a mutually acceptable solution enabling both Contracting Parties to benefit from the Agreement's provisions on outward processing traffic and so ensure the effective development of trade in textile products between China and the Community.Annex to Protocol B (The product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement) OPT QUOTAS >POSIÇÃO NUMA TABELA>PROTOCOL OF UNDERSTANDING CONCERNING THE IMPLEMENTATION OF ARTICLE 12 OF THE AGREEMENT For the purpose of implementing Article 12 of the Agreement it is understood by both Parties that if exports of raw materials (products listed in the Annex to this Protocol) are made subject to specific measures, practices or policies (such as licences, guidances, fiscal, customs or others) such measures, practices or policies must not have for consequence that the conditions applying to the Community users become less favorable than those applied to users in China notably in terms of actual access and prices.Consequently China shall abstain from any such measures, practices or policies that may result in double pricing.The actual implementation of Article 12 of the Agreement as well as of the provisions of Article 11 of the bilateral Agreement on trade in textile products, shall be subject to periodic reviews. Should difficulties appear consultations will be held without delay with a view to solving the problems by appropriate action.Annex to the Protocol of Understanding >POSIÇÃO NUMA TABELA>Agreed Minute In the context of the Agreement between the European Community and the People's Republic of China the two Parties have agreed as follows:1. In order to ensure the continuity of trade flows, and by derogation from Article 3 (1) of the Agreement, products listed in Annex II shipped from China after 31 December 1994 and subject, pursuant to Council Regulation (EC) No 517/94, to quantitative restrictions may be imported into the Community in 1995, without having to be accompanied by an export licence issued by the Chinese authorities, upon presentation of an import authorization issued NUMA TABELA>>POSIÇÃO NUMA TABELA>ANNEX II Annual Community quantitative limits referred to in Article 3 (1) (The product descriptions of the categories listed in this Annex are to be found in Annex I to this Agreement) >POSIÇÃO NUMA TABELA>PROTOCOL A TITLE I CLASSIFICATION Article 11. The competent authorities of the Community undertake to inform China 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 undertake to inform the competent authorities of China of any decisions relating to the classification of products subject to the 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 and the related CN codes;(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 Agreement, the competent authorities of the Community shall provide 30 days' notice, from the date of the Community's communication, before the decision is put 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 Agreement affects a category subject to quantitative limits, the Contracting Parties agree to enter into consultation in accordance with the procedures described in Article 14 of the Agreement with a view to honouring the obligation under the second subparagraph of Article 2 (1) of the Agreement.5. In case of divergent opinions between China and the competent Community authorities at the point of entry into the Community on the classification of products covered by the Agreement, classification shall provisionally be based on indications provided by the Community, pending consultations in accordance with Article 14 of the Agreement with a view to reaching agreement on definitive classification of the product concerned.TITLE II ORIGIN Article 21. Products originating in China for export to the Community in accordance with the arrangements established by the Agreement shall be accompanied by a certificate of Chinese origin conforming to the model annexed to this Protocol.2. The certificate of origin shall be certified by the competent Chinese authorities if the products in question can be considered to be products originating in that country within the meaning of the relevant rules in force in the Community.Article 3The 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 Chinese authorities 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 the certificates or declarations of origin must contain a sufficiently detailed description of the goods so as to enable the Chinese 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 products shall not ipso facto cast doubt upon the statements in the certificate.TITLE III DOUBLE-CHECKING SYSTEM FOR THE CATEGORIES OF PRODUCTS SUBJECT TO COMMUNITY QUANTITATIVE LIMITS Section I Exportation Article 6The competent authorities of China shall issue an export licence in respect of all consignments from China of textile products referred to in Annex II, up to the relevant quantitative limits as may be modified by Article 3 (3), and Articles 8 and 9 of the Agreement, as well as of textile products subject to any definitive or provisional quantitative limits established as a result of the application of Article 7 of the Agreement.Article 71. The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory to which the Treaty establishing the European Community applies.2. Each export licence must certify inter alia that the quantity of the product in question has been set off against the quantitative limit established for the category of the products concerned and shall only cover one of the categories of products subject to quantitative limits. It may be used for one or more consignments of the products in question.Article 8The competent authorities of the Community must be informed immediately of the withdrawal or modification of any export licence already issued.Article 91. Exports shall be set off against the quantitative limits established for the year in which the 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 testing.Article 11China and the Community recognize the special and differential character of reimports of textile products into the Community after processing in China.Provided that they are effected in accordance with the Community regulations governing economic outward processing these reimports shall not be subject to the quantitative limits set out in Annex II when they are made in accordance with the specific arrangements laid down in Protocol B.Article 12China will ensure that the supply to the Community industry of raw materials shall be made at conditions not less favourable than to Chinese domestic users.Article 13China will ensure the respect of intellectual property rights on marks, designs and models belonging to Community operators. The two Parties, at the request of either of them, shall hold consultations in accordance with the procedure laid down in Article 14 for the purpose of finding an equitable solution to any dispute relating to the protection of intellectual property rights on products covered by this Agreement.Article 141. Save where it is otherwise provided for in this Agreement, the consultation procedures referred to in this Agreement shall be governed by the following rules:- any request for consultations shall be notified in writing to the other Party,- the request for consultations shall be followed within a reasonable period (and in any case not later than 15 days following 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 at the latest of notification of the request, with a view to reaching agreement on a mutually acceptable conclusion within one further month at the latest.2. The Community may request consultations in accordance with paragraph 1 when it ascertains that during a particular year of application of the Agreement difficulties arise in the Community or one of its regions from a sharp and substantial increase in imports, by comparison to the preceding year.Article 15This Agreement shall be drawn up in two copies in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Chinese languages, each of these texts being equally authentic.Article 16As regards the Community, this Agreement shall apply to the territories in which the Treaty establishing the European Community is applied under the conditions laid down in that Treaty.Article 171. This Agreement shall enter into force on the first day of the month following the date of its signature. It shall apply with effect from 1 January 1995 and be applicable for a duration of two years. Thereafter, its application shall be automatically extended for successive periods of one year unless either Party notifies the other at least six months in advance that it does not agree with the extension.2. Should China become a Member of the World Trade Organization the restrictions in force shall be phased out in the framework of the Agreement on Textiles and Clothing of the Uruguay Round and notably the provisions of its Articles 2 (8), (13) and (14), 3 (2) (b) and 9.3. Either Party may at any time propose modifications to this Agreement or denounce it, provided that at least six months' notice is given. In that event, the Agreement shall come to an end at the expiry of the period of notice.4. The Annexes and Protocols to this Agreement and the Agreed Minutes joined thereto shall form an integral part thereof.For the Government of the People's Republic of ChinaFor the Council of the European UnionANNEX I (Referred to in Article 1 of the Agreement)1. This Annex covers textile raw materials (categories 128 and 154), textile products other than those of wool and fine animal hair, cotton and man-made fibres, as well as man-made fibres and filaments and yarns of categories 124, 125 A, 125 B, 126, 127 A and 127 B.2. Without prejudice to the rules for the interpretation of the combined nomenclature, the wording of the description of goods is considered to be of indicative value only, since the products covered by each category are determined, within this Annex, by CN codes. Where there is an 'ex` symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.3. 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.4. 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 II Annual Community quantitative limits referred to in Article 3 (1) (The product descriptions of the categories listed in this Annex are to be found in Annex I to this