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
Where the competent authorities have evidence that imports of textile products have been set off against a quantitative limit established under this Agreement, but that the products have subsequently been re-exported outside the Community, the authorities concerned shall inform the Macao 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. Article 6 1. In any one Agreement year advance use of a portion of the quantitative limit established for the following Agreement year may be agreed following consultations in accordance with the procedures referred to in Article 16 (1) for each category of products except for categories 1, 2 and 3, between 1 and 5 % of the quantitative limit for the current Agreement year. Amounts delivered in advance shall be deducted from the corresponding quantitative limits established for the following Agreement year. 2. Carry-over to the corresponding quantitative limit for the following Agreement year of amounts not used during any one Agreement year may be agreed following consultations in accordance with the procedures referred to in Article 16 (1) for each category of product except for categories 1, 2 and 3, between 1 and 5 % of the quantitative limit for the current Agreement year. 3. Transfers in respect of categories in Group I shall not be made from any category except as follows: Transfers between categories 4,5,6,7 and 8 may be made for any Agreement year up to 3,5 % of the quantitative limit for the category to which the transfer is made. Transfers into any category in Groups II and III may be made from any category or categories in Groups I, II and III for any Agreement year up to 5 % of the quantitative limit for the category to which the transfer is made. 4. The table of equivalence applicable to the transfers referred to above is given in Annex I to this Agreement. 5. The increase in any category of products resulting from the cumulative application of the provisions in paragraphs 1, 2 and 3 above during an Agreement year shall not exceed the following limits: >PIC FILE= "T0036568"> 6. Prior notification shall be given by the authorities of Macao in the event of recourse to the provisions of paragraphs 1,2 and 3 above. Article 7 1. Exports of textile products not listed in Annex II to this Agreement may be made subject to quantitative limits by Macao 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 Macao exceeds, in relation to the preceding year's total imports into the Community of products in that category, the following rates: >PIC FILE= "T0036569"> it may request the opening of consultations in accordance with the procedure described in Article 16 (1) of this Agreement, with a view to reaching agreement on a appropriate restraint level for the products in such category. 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. 3. Pending a mutually satisfactory solution, Macao undertakes from the date of notification of the request for consultations to limit 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 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 consultations, or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher. However, in exceptionally grave circumstances, following a request by the Community, and pending a mutually satisfactory solution, Macao undertakes to suspend at the level indicated by the Community exports of the products in the category concerned to the Community or to the regions of the Community market specified by the Community. 4. Should the Parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 16 (1) of the Agreement, 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 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 % 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 Macao in 1980. 8. The provisions of the Article also apply where the level referred to in paragraph 1 is exceeded in any of the Community's regions. In such a case, the compensation referred to in paragraphs 1 and 4 will concern the region or regions of the Community indicated in the Community's request for consultations. 9. With a view to limiting recourse to paragraph 1 of this Article, Macao undertakes to inform the Community of any sharp and substantial increases in the issue of export licences for any category which is likely to lead to the fulfilment of the conditions required for the application of the present Article. SECTION II Administration of the Agreement Article 9 1. Macao undertakes to supply the Community with precise statistical information on all export licences issued by the Macao authorities for all categories of textile products subject to the quantitative limits established under this Agreement. The Community shall likewise transmit to the Macao authorities precise statistical information on import authorizations or documents issued by the Community authorities in respect of export licences and certificates issued by Macao. 2. The information referred to in paragraph 1 shall, for all categories of products, be transmitted before the end of the second month following the quarter to which the statistics relate. 3. Macao also undertakes to supply the Community with available statistical information on all textile exports by country of destination. The Community shall transmit to Macao import statistics for all products covered by the system of administrative control referred to in Article 8 (2) and for products covered by Article 6 (1). 4. The information referred to in paragraph 3 shall, for all categories of products, be transmitted before the end of the third month following the quarter to which the statistics relate. 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 16 of this Agreement. 6. For the purpose of applying the provisions of Article 7 and Article 8, the Community undertakes to provide the Macao 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 State. Article 10 1. In case of divergent opinions between Macao and the competent Community authorities at the point of entry into the Community on the classification of products covered by the present Agreement, classification shall provisionally be based on indications provided by the Community, pending consultations in accordance with Article 16 with a view to reaching agreement on definitive classification of the product concerned. 2. If the above provisional classification results in provisional debit against a quantitative limit for a category of products other than the category indicated on the export documents issued by the competent Macao authorities, the Community shall inform Macao of such provisional debit within 30 days. 3. The authorities of Macao shall be informed of any amendment to the Common Customs Tariff or NIMEXE or any decision, made in accordance with the procedures in force in the Community, relating to the classification of products covered by this Agreement. Any amendment to the Common Customs Tariff or NIMEXE of any decision which results in a modification of the classification of products covered by this Agreement shall not have the effect of reducing any quantitative limit established under this Agreement. The procedures for the application of this paragraph are set out in Protocol A. Article 11 1. Macao and the Community agree to cooperate fully in preventing the circumvention of the present Agreement by transhipment, re-routeing or whatever other means. 2. Where information available to the Community as a result of the investigations carried out in accordance with the procedures set out in Protocol A constitutes evidence that products of Macao origin subject to quantitative limits established under this Agreement have been transhipped, re-routed or otherwise imported into the Community in circumvention of this Agreement, the Community may request the opening of consultations in accordance with the procedures described in Article 16 (1) of this Agreement, with a view to reaching agreement on an equivalent adjustment of the corresponding quantitative limits established under the Agreement. 3. Pending the result of the consultations referred to in paragraph 2, Macao shall as a precautionary measure, if so requested by the Community, make the necessary arrangements to ensure that 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, for the following year if the quota for the current year is exhausted, where clear evidence of circumvention is provided. 4. Should the parties be unable in the course of consultations to reach a satisfactory solution 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 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.