AGREEMENTbetween the European Economic Community and the Republic of Pakistan on trade in textile productsDone at Brussels on 12 September 1986THE COUNCIL OF THE EUROPEAN COMMUNITIES,of the one part, andTHE GOVERNMENT OF THE REPUBLIC OF PAKISTAN,of the other part,DESIRING to promote, with a view to permanent cooperation and in conditions providing every security for trade, the orderly and equitable development of trade in textile products between the European Economic Community (hereinafter referred to as 'the Community') and the Islamic Republic of Pakistan ('hereinafter referred to as 'Pakistan'),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 Pakistan,HAVING REGARD to the Arrangement regarding International Trade in Textiles (hereinafter referred to as 'the Geneva Arrangement'), and in particular Article 4 thereof and to the conditions set out in the Protocol extending the Arrangement,HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:THE COUNCIL OF THE EUROPEAN COMMUNITIES:THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF PAKISTAN:WHO HAVE AGREED AS FOLLOWS:SECTION ITrade arrangementsArticle 11. The Parties recognize and confirm that, subject to the provisions of this Agreement and without prejudice to their rights and obligations under the General Agreement on Tariffs and Trade, the conduct of their mutual trade in textile products shall be governed by the provisions of the Geneva Arrangement.2. In respect of the products covered by this Agreement, the Community undertakes not to introduce quantitative restrictions under Article XIX of the General Agreement on Tariffs and Trade or Article 3 of the Geneva Arrangement.3. Measures having equivalent effect to quantitative restrictions on the importation into the Community of the products covered by this Agreement shall be prohibited.Article 21. This Agreement shall apply to trade in textile products of cotton, wool and man-made fibres originating in Pakistan which are listed in Annex I.2. The classification of the products covered by this Agreement is based on the Nomenclature of the Common Customs Tariff and on the Nomenclature of Goods for the External Trade Statistics of the Community and the Statistics of Trade between Member States (NIMEXE).From the entry into force of the International Convention on the Harmonised Commodity Description and Coding System (HS) this classification will be based on the Harmonized System and on the Community nomenclatures derived from that system.3. 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 Pakistan and shall not have the effect of reducing any quantitative limit established in Annex II.The procedures for control of the origin of the products referred to above are laid down in Protocol A.Article 3Pakistan agrees for each Agreement year to restrain its exports to the Community of the products described in Annex II to the limits set out therein.Exports of textile products set out in Annex II shall be subject to a double-checking system specified in Protocol A.Article 4Pakistan and the Community recognize the special and differential character of re-imports of textile products into the Community after processing in Pakistan.Provided that they are effected in accordance with the regulations on economic outward processing in force in the Community, these re-imports are not subject to the quantitative limits set out in Annex II when they are subject to the arrangements laid down in Protocol E.Article 5Exports of cottage industry fabrics woven on hand- or foot-operated looms, garments or other articles obtained manually from such fabrics and traditional folklore handicraft products shall not be subject to quantitative limits, provided that these products meet the conditions laid down in Protocol B.Article 61. 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 of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Pakistani authorities, and to proof of origin in accordance with the provisions of Protocol A.2. Where the Community 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 Pakistani authorities within four weeks of the quantities involved and authorize imports of identical quantities of the same products, which shall not be set off
limits for the year 1987 is authorized up to 5 % for any quantitative limit for the year 1986. Head of Delegation of the Islamic Republic of PakistanHead of Delegation of the European Economic CommunityAgreed Minute With reference to Article 14 (3) of the Agreement on trade in textiles between the European Economic Community and the Islamic Republic of Pakistan, initialled on 12 September 1986, it is understood that the percentage for the fifth year of the application of the Agreement will be at least equal to the percentage applicable in the fourth year. Head of Delegation of the Islamic Republic of PakistanHead of Delegation of the European Economic CommunityExchange of Notes The Mission of the Islamic Republic of Pakistan to the European Communities presents its compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Agreement on trade in textile products between the Islamic Republic of Pakistan and the Community initialled on 12 September 1986.The Mission wishes to inform the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the Agreement, the Government of the Islamic Republic of Pakistan is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1987 if the Community is disposed to do likewise.The Mission would be grateful if the Community would confirm its agreement to the foregoing.The Mission of the Islamic Republic of Pakistan to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Relations of the European Communities the assurance of its highest consideration.Exchange of Notes The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Islamic Republic of Pakistan to the European Communities and has the honour to refer to the Note regarding the Agreement on trade in textile products between the Islamic Republic of Pakistan and the Community initalled on 12 September 1986.The Directorate-General wishes to confirm that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the Agreement, the Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1987.The Directorate-General for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Islamic Republic of Pakistan to the European Communities the assurance of its highest consideration. 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, theCommunity shall have the right, where clear evidence of circumvention has been provided, to deduct from the quantitative limits established under this Agreement amounts equivalent to the products of Pakistani origin.Article 121. Pakistan shall endeavour to ensure that exports of textile products subject to quantitative limits are spaced out as evenly as possible over an Agreement year, due account being taken, in particular, of seasonal factors.2. Should there be an excessive concentration of imports on any product within a category subject to quantitative limits under this Agreement, the Community may request consultations in accordance with the procedure specified in Article 16 of this Agreement with a view to remedying this situation.Article 13Should recourse be had to the denunciation provisions of Article 18 (4), the quantitative limits established in Annex II shall be adapted on a pro rata basis.Article 141. For the purpose of the administration of this Agreement, the limits referred to in Article 3 are broken down by the Community into shares for each of its Member States.2. Portions of the quantitative limits established in Annex II not used in one Member State of the Community may be reallocated to another Member State in accordance with the procedures in force in the Community.The Community undertakes to examine with care and reply within four weeks to any request made for reallocation by Pakistan. In the event of agreement on such reallocation, the flexibility provisions set out in Article 7 shall continue to be applicable to the levels of the original allocation.If, in the course of the application of this Agreement, Pakistan finds that the break-down of a limit established in Annex II causes particular difficulties, it may request the opening of consultations in accordance with Article 16 with a view to reaching a mutually satisfactory solution.3. After the first of June of each year of application of the Agreement, Pakistan may transfer, subject to prior notification to the Community, the unused quantities of the regional quota-shares of a Community quantitative limit, set out in Annex II, to the quota-shares of the same limit of other regions of the Community provided that the regional quota-share from which the transfer is made is utilized by less than 80 %, and up to the amount of the followingpercentages of the quota-share to which the transfer is made:- 2 % in the first year of the application of the Agreement,- 4 % in the second year of the application of the Agreement,- 8 % in the third year of the application of the Agreement,- 12 % in the fourth year of the application of the Agreement.The percentage in the fifth year of the application of the Agreement shall be determined following consultation between the Parties.4. Should it appear in any given region of the Community that additional supplies are required, the Community may, where measures taken pursuant to paragraph 1 are inadequate to cover those requirements, authorize the importation of amounts greater than those stipulated in Annex II.Article 151. Pakistan and the Community undertake to refrain from discrimination in the allocation of export licences and import authorizations or documents referred to in Protocol A.2. In implementing this Agreement, the Contracting Parties shall take care to maintain the traditional commercial practices and trade flows between the Community and Pakistan.3. Should either Party find that the application of this Agreement is disturbing existing commercial relations between importers in the Community and suppliers in Pakistan consultations shall be started promptly, in accordance with the procedure specified in Article 16 with a view to remedying this situation.Article 161. The special 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 or 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, by comparison to the preceding year, in imports of a given category of Group I subject to the quantitative limits set out in Annex II.3. If necessary, at the request of either of the Parties and in conformity with the provisions of the Geneva Arrangement, consultations shall be held on any problems arising from the application of this Agreement. Any consultations held under this Article shall be approached by both Parties in a spirit of cooperation and with a desire to reconcile the difference between them.Article 17This Agreement shall apply, on the one hand, to the territories within which the Treaty establishing the European Economic Community is applied and under the conditions laid down of this Agreement. Any consultations held under this Article shall be approached by both Parties in a spirit of cooperation and with a desire to reconcile the difference between them.Article 17This Agreement shall apply, on the one hand, to the territories within which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of Pakistan.Article 181. This Agreement shall enter into force on the first day of the month following the date of its signature. It shall be applicable until 31 December 1991.2. This Agreement shall apply with effect from 1 January 1987.3. 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 60 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, Protocols, Agreed Minutes, Exchangesof Letters and the Declaration to this Agreement shall form an integral part thereof.Article 19This Agreement shall be drawn up in two copies in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese, Spanish and Urdu languages, each of these texts being equally authentic. ANNEX I LIST OF PRODUCTS 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 animal hair, of cotton or of man-made fibres.2. Garments which are not recognizable as being garments for men or boys or as garments for women or girls are classified with the latter.3. Where the expression 'babies' garments' is used, this is meant also to cover girls' 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 For practical reasons the product descriptions used Annex I are given in the present Annex in abbreviated form >POSIÇÃO NUMA TABELA>>POSIÇÃO NUMA TABELA>PROTOCOL A TITLE ICLASSIFICATIONArticle 11. The competent authorities of the Community undertake to inform Pakistan of any changes in the tariff and statistical nomenclatures before the date of their entry into effect in the Community.2. The competent authorities of the Community undertake to inform Pakistan 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 tariff and statistical references;(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 application 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 restraint, the two Parties agree to enter into consultations in accordance with the procedures described in Article 16 (1) of the Agreement with a view to honouring the obligation under the second subparagraph of Article 10 (3) of the Agreement.TITLE IIORIGINArticle 21. Products originating in Pakistan for export to the Community in accordance with the arrangements established by this Agreement shall be accompanied by a certificate of Pakistani origin conforming to the model annexed to this Protocol.2. The certificate of origin shall be issued by the competent governmental authorities of Pakistan if the products in question can be considered products originatingin 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 Pakistan 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 rate for the quantitative limits introduced under this Article shall be determined in accordance with the provisions of Protocol D.8. The provisions of this Article shall not apply where the percentages specified in paragraph 2 have been reached as a result of fall in total imports into the Community, and not as a result of an increase in exports or products originating in Pakistan.9. In the event of the provisions of paragraph 2, 3 or 4 being applied, Pakistan undertakes to issue export licencesfor products covered by contracts concluded before the introduction of the quantitative limit, up to the volume of the quantitative limit fixed.10. Up to the date of communication of the statistics referred to in Article 9 (6), the provisions of paragraph 2 of this Article shall apply on the basis of the annual statistics previously communicated by the Community.11. The provisions of this 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 91. Pakistan undertakes to supply the Community with precise statistical information on all export licences issued by the Pakistani authorities for all categories of textile products subject to the quantitative limits established under this Agreement as well as on all certificates issued by the Pakistani authorities for all products referred to in Article 5 and subject to the provisions of Protocol B.The Community shall likewise transmit to the Pakistani authorities precise statistical information on import authorizations or documents issued by the Community authorities in respect of export licences and certificates issued by Pakistan.2. The information referred to in paragraph 1 shall, for all categories of products, be forwarded before the end of the second month following the quarter to which the statistics relate.3. Pakistan also undertakes to supply the Community with available statistical information on all textile exports by country of destination.The Community shall forward to the Pakistani authorities 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 forwarded 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 16.6. For the purpose of applying the provisions of Article 8, the Community undertakes to provide the Pakistani 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 101. Should there be divergent opinions between Pakistan and the competent Community authorities at the point of entry into the Community on the classification of products covered by this 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. The authorities of Pakistan shall be informed of any amendment to the tariff and statistical nomenclatures in force in the Community 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 tariff and statistical nomenclatures in force in the Community or 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 in Annex II.The procedures for the application of this paragraph are set out in Protocol A.Article 111. Pakistan and the Community agree to cooperate fully in preventing the circumvention of the present Agreement by transhipment, rerouting 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 Pakistani origin subject to quantitative limits established under this Agreement have been transhipped, rerouted 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 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, Pakistan 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, or 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 within the period specified in Article 16 of the Agreement, theCommunity shall have the right, where clear evidence of circumvention has been provided, to deduct from the quantitative limits established under this Agreement amounts equivalent to the products of Pakistani