ADDITIONAL PROTOCOL to the Europe Agreement on trade in textile products between the European Economic Community and the Republic of HungaryTHE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF HUNGARY,of the other part,DESIRING to promote, with a view to permanent cooperation and in conditions providing the utmost security for trade, the mutual expansion and orderly and equitable development of trade in textile products between the European Economic Community (hereinafter the 'Community`) and the Republic of Hungary (hereinafter 'Hungary`),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, in particular in order to eliminate the real dangers of damage to both the Community and Hungarian markets for textile products,BEARING IN MIND the objectives of the Europe Agreement between the Community and Hungary signed in Brussels on 16 December 1991 and, in particular, those referred to in Article 1 thereof,HAVING REGARD to the Europe Agreement and in particular Article 15 thereof,HAVING REGARD to the Interim Agreement between the Community and Hungary signed in Brussels on 16 December 1991 and in particular to Article 9 thereof,HAVING REGARD to Protocol 1 on textile and clothing products to the Europe Agreement and to the Interim Agreement, and in particular to Article 3 thereof,HAVE DECIDED to conclude this Protocol and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN COMMUNITIES:THE GOVERNMENT OF THE REPUBLIC OF HUNGARY:WHO HAVE AGREED AS FOLLOWS:Article 11. The further development of trade and industrial cooperation between the textile and clothing industries in the Community and in Hungary is an underlying principle of this Protocol which establishes the quantitative arrangements applicable to trade in textile and clothing products (hereinafter 'textile product`) originating in Hungary and in the Community, which are listed in Annex I A and I B to this Protocol.2. Under the terms of this Protocol, all quantitative restrictions and measures of equivalent effect on imports in both Parties on textile products originating in the other Party, shall be eliminated at the end of the period referred to in Agreed Minute No 5.3. Consultations will be held during the third year of application of this Protocol on the global situation and progress towards final liberalization.Article 21. The classification of the products covered by this Protocol and imported into the Community is based on the tariff and statistical nomenclature of the Community (hereinafter called the 'combined nomenclature` or, in abbreviated form, 'CN`) and any amendments thereof. The Hungarian customs tariff shall be applied to the classification of goods for imports into Hungary.2. The Parties agree that the introduction of changes, such as changes in practices, rules, procedures and categorization of textile products, including those changes relating to the Harmonized System and the combined nomenclature, in the implementation or administration of those restrictions applied under this Protocol, should not affect the balance of rights and obligations between the Parties under this Protocol; adversely affect the access available to a Party; impede the full utilization of such access; or disrupt trade under this Protocol. The Party initiating any such changes shall inform the other Party before their entry into force.The procedures for implementation of classification changes are set out in Appendix A.3. The origin of the products covered by this Protocol shall be determined in accordance with the rules of origin in force in the Community.Hungary shall be notified of any amendments to the said rules of origin.The procedures for checking the origin of the textile products are laid down in Appendix A.Article 31. Hungary hereby agrees for each of the years of the Protocol's application to restrain its exports to the Community of the products included in Annex II to the limits set out therein.2. The number and level of quantitative restrictions applied to direct imports of textile products, expressed in terms of Harmonized System ('HS`) codes, of Community origin into Hungary for each year of the Protocol's application are listed in Annex III to this Protocol.3. Unless it is otherwise provided for in this Protocol, Hungary and the Community hereby agree not to introduce new quantitative restrictions or measures of equivalent effect, on trade in textile products between the two Parties, and not to increase the number of existing ones as compared to those in force on 31 December 1992.4. Exports to the Community of textile products listed in Annex II and originating in Hungary shall be subject to a double-checking system as specified in Appendix A.Article 41. Hungary and the Community recognize the special and differential character of reimports of textile products into the Community after processing, manufacturing or working in Hungary as a specific form of industrial and trade cooperation.2. Save where it is otherwise provided for in Appendix B, such reimports into the Community shall not be subject to the quantitative limits of the products
Community recognize the special and differential character of reimports of textile products into the Community after processing, manufacturing or working in Hungary as a specific form of industrial and trade cooperation.2. Save where it is otherwise provided for in Appendix B, such reimports into the Community shall not be subject to the quantitative limits of the products established in Annex II, provided that they are effected in accordance with the regulations on economic outward processing traffic in force in the Community and are eligible for the specific arrangements laid down in Appendix B to this Protocol.3. No restrictions apply to imports into Hungary of textile products of Community origin destined for re-export after having undergone inward processing operations in Hungary.Article 51. Imports into either of the Parties of textile products covered by this Protocol shall not be subject to the quantitative limits established in Annex II or Annex III, provided that they are declared to be for re-export from the importing Party in the same state or after processing, under the administrative system of control existing in the Parties.However, the release for home use of products imported into the Community under the conditions referred to above shall be subject to the production of an export licence issued by the competent authorities, and to proof of origin in accordance with Appendix A.2. Where the competent authorities in one Party have evidence that imports of textile products have been set off against a quantitative limit established under this Protocol, but that the products have subsequently been re-exported from that Party, the authorities concerned shall inform the authorities of the other Party within four weeks of the quantities involved and shall authorize imports of the same quantities of identical category of product, which shall not be set off against the quantitative limit established under this Protocol for the current or following year, as appropriate.3. Exports of both Parties of cottage-industry fabrics woven on hand- or foot-operated looms, garments or other made-up articles obtained manually from such fabrics, and of traditional folklore handicraft products shall not be subject to quantitative limits. However, exports of these products originating in Hungary must meet the conditions laid down in Appendix C to this Protocol.Article 61. In any year, advance use of a portion of the quantitative limit established in Annex II for the following year shall be authorized for each category of products up to 6 % of the quantitative limit for the current year.Amounts delivered in advance shall be deducted from the corresponding quantitative limit established for the following year.2. Carry-over to the corresponding quantitative limit for the following year of amounts not used during any given Protocol year shall be authorized up to 10 % of the quantitative limit for the current year for the quantitative limits established in Annex II.3. In the case of Group I, transfers shall be allowed only in the following cases:- amounts may be transferred from category 1 to categories 2 and 3, or from categories 2 and 3 to category 1 up to 7 % of the quantitative limit for the category to which the transfer is made,- amounts may be transferred between categories 2 and 3 up to 7 % of the quantiatative limits for the category to which the transfer is made,- the total quantities transferred to categories 2 and 3 in accordance with the first two indents of this paragraph may not exceed 7 % of the category to which the transfer is made,- amounts may be transferred between categories 4, 5, 6, 7 and 8 up to 7 % of the quantitative limit for the category to which the transfer is made.Amounts may be transferred into any category in Groups II and III from any category in Groups I, II and III up to 10 % of the quantitative limit for the category to which the transfer is made.4. The table of equivalence applicable to the transfers referred to in paragraph 3 above is given in Annex I.5. The increase in any given category of products resulting from the cumulative application of the provisions in paragraphs 1, 2 and 3 during a single year must not exceed the limits of 17 % for categories of products in Groups I, II and III.6. The authorities of the exporting Party must notify the other Party of any recourse to the provisions of paragraphs 1, 2 and 3, at least 15 days in advance.Article 71. Should one Party consider that imports of textile products not subject to quantitative limits, originating in the other Party and covered by this Protocol take place in such increased, absolute or relative, quantities and under such conditions, so as to threaten to cause:- injury to the importing Party's production of like or directly competitive products, or- where the economic interests of the importing Party so require,it may impose a prior or retrospective surveillance system on the category of products concerned for a period that it considers appropriate.2. The Party that is intended to introduce a surveillance system under paragraph 1 shall 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 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 Avis juridique important|21992A1231(41)Protocolo adicional do Acordo Europeu sobre o Comércio de produtos têxteis entre a Comunidade Económica Europeia e a República da Hungria - Actas aprovadas - Notas verbais - Trocas de notas Tradução não oficial Jornal Oficial nº L 410 de 31/12/1992 p. 0391 - 0460