this opportunity to renew to the Directorate-General for External Relations of the Commission 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 Permanent Representation of Portugal to the European Communities and has the honour to refer to the Note of 19 July 1986 regarding the Agreement on trade in textile products between Macao and the Community initialled on 19 July 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 Permanent Representation of Portugal to the European Communities the assurance of its highest consideration. Informação relativa ao Acordo entre a Comunidade e Macau sobre o comércio de produtos têxteis Nos termos do artigo 2º da decisão do Conselho de 11 de Dezembro de 1986 relativa à aplicação provisória do Acordo com Macau sobre o comércio de produtos têxteis, a Comissão comunicou ao Conselho o acordo formulado a este respeito por aquele país parceiro, em 19 de Dezembro de 1986. 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. GROUP I A >PIC FILE= "T0050007"> >PIC FILE= "T0050008"> GROUP I B >PIC FILE= "T0050009"> GROUP II A >PIC FILE= "T0050010"> GROUP II B >PIC FILE= "T0050011"> >PIC FILE= "T0050012"> >PIC FILE= "T0050013"> >PIC FILE= "T0050014"> GROUP III A >PIC FILE= "T0050015"> >PIC FILE= "T0050016"> >PIC FILE= "T0050017"> >PIC FILE= "T0050018"> GROUP III B >PIC FILE= "T0050019"> >PIC FILE= "T0050020"> >PIC FILE= "T0050021"> >PIC FILE= "T0050022"> ANNEX II For practical reasons the product descriptions used in Annex I are given in the present Annex in abbreviated form COMMUNITY LIMITS >PIC FILE= "T0050023"> >PIC FILE= "T0050024"> REGIONAL LIMITS >PIC FILE= "T0050025"> PROTOCOL A TITLE I CLASSIFICATION Article 1 1. The competent authorities of the Community undertake to inform Macao 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 Macao 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
under Annex II to theAgreement. 3. The Community may, at its own discretion, and bearing in mind the interest of both parties, or inthe framework of a request set out in Article 16 of the Agreement: (a) examine the possibilities of transfers between categories and advance use or carryover ofportions of specific quantitative limits from one year to another; (b) consider the scope for reallocating portions of any specific quantitative limits not used in oneregion of the Community to another region. 4. However the Community may automatically carry out the flexibilities in the sense of paragraph 3up to the following extent: (a) transfer between categories up to 20 % of the share established for the category to which thetransfer is made; (b) carryover of specific quantitative limits from one year to another up to 10,5 % of the share forthe year of actual utilization; (c) advance use of specific quantitative limits from one year to another up to 7,5 % of the share forthe year of actual utilization. 5. The Community shall inform Macao of any measures taken pursuant to the precedingparagraphs. 6. Debiting against a specific quantitative limit referred to in paragraph 1 shall be carried out by thecompetent authorities of the Community at the time of issuing the prior authorization provided forby the Community Regulation on economic outward processing, Regulation (EEC) No 636/82. Aspecific quantitative limit shall be debited for the year in which a prior authorization isissued. 7. A certificate of origin shall be issued for all products covered by the present Protocol by Macao inaccordance with the provisions of Protocol A of the Agreement, bearing a reference to the priorauthorization referred to in paragraph 6 as evidence that the processing operation described in theprior authorization has been carried out in Macao. 8. The Community shall provide Macao with the names, addresses and the specimens of stamps usedby the competent authorities of the Community for the issue of the prior authorizations referred toin paragraph 6. 9. Notwithstanding the provisions of paragraphs 1 to 8 above, Macao and the Community will continue to consult together to seek a mutually acceptable means to enable both parties to take advantage of the OPT provisions in the Agreement with a view to effective development of trade in textiles between Macao and the Community. Annex to Protocol E OPT QUANTITATIVE LIMITS For practical reasons the product descriptions used in Annex I are given in the present Annex in abbreviated form >PIC FILE= "T0050029"> PROTOCOL F The Community and Macao agree that if the Multifibre Arrangement is extended for a period going beyond 31 December 1990 then the present Agreement will be automatically prolonged for a further period of one year up to 31 December 1991 in accordance with the economic and technical terms of the existing Agreement, with the adaptations strictly necessary for the application of the Agreement for the fifth year. Agreed Minute In the context of the Agreement between the Community and Macao on trade in textile products initialled on 19 July 1986, it was agreed that advance use of a portion of the quantitative limits for 1987 for each Group I category of products is authorized up to 2 % and for each Group II and III category of products up to 3 % of the corresponding quantitative limit for 1986. It was further agreed that carryover to the quantitative limits for the year 1987 for each Group I category of products is authorized up to 3 % and for each Group II and III category of products up to 4 % of the corresponding quantitative limit for 1987. Head of Delegation of Macao Head of Delegation of the European Economic Community Exchange of Notes The Permanent Representation of Portugal 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 Macao and the Community initialled on 19 July 1986. The Permanent Representation 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 Macao 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 Permanent Representation would be grateful if the Community would confirm its agreement to the foregoing. The Permanent Representation of Portugal to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Relations of the Commission 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 Permanent Representation of Portugal to the automatically within five working days of the presentation by the importer of the original of the corresponding export licence. The import authorization or document shall be valid for six months. 2. The competent Community authorities shall cancel the already issued import authorization or document if the corresponding export licence has been withdrawn. However, if the competent Community authorities have not been notified of the withdrawal or cancellation of the export licence until after the products have been imported into the Community, the quantities involved shall be set off against the quantitative limit for the category and the quota year in question. Article 13 1. If the competent Community authorities find that the total quantities covered by export licences issued by Macao for a particular category in any Agreement year exceed the quantitative limit established in Annex II for that category, as may be modified by Articles 7, 13 and 14 of the Agreement, or any definitive or provisional limit established under Article 8 of the Agreement, the said authorities may suspend the further issue of import authorizations or documents. In this event, the competent Community authorities shall immediately inform the authorities of Macao and the special consultation procedure set out in Article 16 of the Agreement shall be initiated forthwith. 2. Exports of Macao origin not covered by Macao export licences issued in accordance with the provisions of this Protocol may be refused the issue of import authorizations or documents by the competent Community authorities. However, if the import of such products is allowed into the Community by the competent Community authorities, the quantities involved shall not be set off against the appropriate quantitative limits set out in Annex II or established as a result of the application of Article 8 of the Agreement, without the express agreement of Macao and save as provided for in Article 11 of the Agreement. TITLE IV FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS Article 14 1. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be ink and in block capitals. These documents shall measure 210 x 297 mm. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m2. Each part shall have a printed guilloche-pattern background making any falsification by mechanical or chemical means apparent to the eye. If the documents have several copies only the top copy which is the original shall be printed with the guilloche-pattern background. This copy shall be clearly marked as "original" and the other copies as "copy". Only the original shall be accepted by the competent authorities in the Community as being valid for the purposes of export to the Community in accordance with the arrangements established by this Agreement. 2. Each document shall bear a standardized serial number, whether or not printed, by which it can be identified. This number shall be composed of the following elements: - two letters identifying Macao as follows : MO, - two letter identifying countries of destination as follows: BL : Benelux DE : Federal Republic of Germany DK : Denmark ES : Spain FR : France GB : United Kingdom GR : Greece IE : Ireland IT : Italy PT : Portugal, - a one-digit number identifying quota year, corresponding to the last figure in year, e.g. 7 for 1987, - a two-digit number running consecutively from 01 to 99 identifying the issuing office, - a five-digit number running consecutively from 00001 to 99999 allocated to the country of destination. Article 15 The export licence and certificate of origin may be issued after the shipment of the products to which they relate. In such cases they shall bear either the endorsement "délivré a posteriori" or the endorsement "Issued retrospectively". Article 16 1. In the event of theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the competent governmental authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate or licence so issued shall bear the endorsement "duplicata". 2. The duplicate must bear the date of the original export licence or certificate of origin. TITLE V ADMINISTRATIVE COOPERATION Article 17 The Community and Macao shall cooperate closely to implement the provisions of this Agreement. To this end, contacts and exchanges of views (including on technical matters) shall be facilitated by both parties. Article 18 In order to ensure that the Agreement is properly applied, the Community and Macao shall assist each other in checking the authenticity and accuracy of export licences and certificates of origin issued or declarations made under this Protocol. Article 19 Macao by hand without the aid of any machine; (c) traditional folklore textile products of Macao made by hand in the cottage industry of Macao as defined in a list to be agreed between both parties. Exemption shall be granted only for products accompanied by a certificate issued by the competent Macao authorities in accordance with the specimen annexed to this Protocol. Such certificates shall state the ground on which exemption is based and shall be accepted by the competent Community authorities provided that they are satisfied that the products concerned conform to the conditions set out in this Protocol. Certificates covering the products referred to in paragraph (c) above shall bear a conspicuous stamp : "FOLKLORE". In case of divergent opinion between Macao and the competent Community authorities at the point of entry into the Community as to the nature of such products, consultations shall be held within one month with a view to resolving such divergences. Should imports of any of the above products reach such proportions as to cause difficulties to the Community, the two Parties shall open consultations forthwith in accordance with the procedure laid down in Article 16 of the Agreement with a view to finding a quantitative solution to the problem. 2. The provisions of Title IV and V of Protocol A shall apply "mutatis mutandis" to the products referred to in paragraph 1 of this Protocol. Annex to Protocol B >PIC FILE= "T0050028"> PROTOCOL C Under Article 8 (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 8 exceed the following regional percentage: Germany 25,5 % Benelux 9,5 % France 16,5 % Italy 13,5 % Denmark 2,7 % Ireland 0,8 % United Kingdom 21,0 % Greece 1,5 % Spain 7,5 % Portugal 1,5 %. PROTOCOL D The annual growth rate for the quantitative limits introduced under Article 8 of the Agreement shall be determined as follows: for products in categories falling within Groups I, II, III, the growth rate shall be fixed by Agreement between the Parties in accordance with the consultation procedure established in Article 16 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. PROTOCOL E Reimports in the sense of Article 4 (2) of this Agreement into the Community of products listed in the Annex to this Protocol shall be subject to the provisions of the Agreement except as specifically provided for by the particular provisions set out below: 1. Only reimports into the Community subject to the specific quantitative limits set out in the Annexto this Protocol, as may be modified by the application of paragraphs 2 and 3, shall be consideredreimports in the sense of Article 4 (2). 2. Reimports not covered by the Annex may be submitted to specific quantitative limits followingconsultations in accordance with the procedures set out in Article 16 of the Agreement, providedthe products concerned are subject to the quantitative limits established under Annex II to theAgreement. 3. The Community may, at its own discretion, and bearing in mind the interest of both parties, or inthe framework of a request set out in Article 16 of the Agreement: (a) examine the possibilities of transfers between categories and advance use or carryover ofportions of specific quantitative limits from one year to another; (b) consider the scope for reallocating portions of any specific quantitative limits not used in oneregion of the Community to another region. 4. However the Community may automatically carry out the flexibilities in the sense of paragraph 3up to the following extent: (a) transfer between categories up to 20 % of the share established for the category to which thetransfer is made; (b) carryover of specific quantitative limits from one year to another up to 10,5 % of the share forthe year of actual utilization; (c) advance use of specific quantitative limits from one year to another up to 7,5 % of the share forthe year of actual utilization. 5. The Community shall inform Macao of any measures taken pursuant to the precedingparagraphs. 6. Debiting against a specific quantitative limit referred to in paragraph 1 shall be carried out by thecompetent authorities of the Community at the time of issuing the prior authorization provided forby the Community Regulation on economic outward processing, Regulation (EEC) No in Annex II is applied the following note must be inserted in box 9 of the export certificate "conversion rate for garments of a commercial size not exceeding 130 cm is to be applied". Article 8 The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export licence already issued. Article 9 1. Exports shall be set off against the quantitative limits established for the year in which shipment of the goods has been effected, even if the export 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 date of their loading on to the exporting aircraft, vehicle or vessel. Article 10 The presentation of an export licence, in application of Article 12, shall be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped. Section II Importation Article 11 Importation into the Community of textile products subject to quantitative limits shall be subject to the presentation of an import authorization or document. Article 12 1. The competent Community authorities shall issue such import authorization or document automatically within five working days of the presentation by the importer of the original of the corresponding export licence. The import authorization or document shall be valid for six months. 2. The competent Community authorities shall cancel the already issued import authorization or document if the corresponding export licence has been withdrawn. However, if the competent Community authorities have not been notified of the withdrawal or cancellation of the export licence until after the products have been imported into the Community, the quantities involved shall be set off against the quantitative limit for the category and the quota year in question. Article 13 1. If the competent Community authorities find that the total quantities covered by export licences issued by Macao for a particular category in any Agreement year exceed the quantitative limit established in Annex II for that category, as may be modified by Articles 7, 13 and 14 of the Agreement, or any definitive or provisional limit established under Article 8 of the Agreement, the said authorities may suspend the further issue of import authorizations or documents. In this event, the competent Community authorities shall immediately inform the authorities of Macao and the special consultation procedure set out in Article 16 of the Agreement shall be initiated forthwith. 2. Exports of Macao origin not covered by Macao export licences issued in accordance with the provisions of this Protocol may be refused the issue of import authorizations or documents by the competent Community authorities. However, if the import of such products is allowed into the Community by the competent Community authorities, the quantities involved shall not be set off against the appropriate quantitative limits set out in Annex II or established as a result of the application of Article 8 of the Agreement, without the express agreement of Macao and save as provided for in Article 11 of the Agreement. TITLE IV FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS Article 14 1. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be ink and in block capitals. These documents shall measure 210 x 297 mm. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m2. Each part shall have a printed guilloche-pattern background making any falsification by mechanical or chemical means apparent to the eye. If the documents have several copies only the top copy which is the original shall be printed with the guilloche-pattern background. This copy shall be clearly marked as "original" and the other copies as "copy". Only the original shall be accepted by the competent authorities in the Community as being valid for the purposes of export to the Community in accordance with the arrangements established by this Agreement. 2. Each document shall bear a standardized serial number, whether or not printed, by which it can be identified. This number shall be composed of the following elements: - two letters identifying Macao as follows : MO, - two letter identifying countries of destination as follows: BL : Benelux DE : Federal Republic of Germany DK : Denmark ES : Spain FR : France GB : United Kingdom GR : Greece IE : Ireland IT : ItalyPT : Portugal, - a one-digit number identifying quota year, corresponding to the last figure in year, e.g. 7 for 1987, - a two-digit number running consecutively from 01 to 99 identifying the issuing office, - a five-digit number running consecutively from 00001 to 99999 allocated to the country of destination. Article 15 The export licence and certificate of origin may be issued after the shipment of