Provisions of the Agreement between the European Economic Community and the Argentine Republic on trade in textile products, initialled in Brussels, on 30 September 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Argentine Republic on trade in textile products, initialled in Brussels on 18 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Mission of the Argentine Republic to the European Union presents its compliments to the Directorate-General for External Economic Relations of the European Commission and has the honour to refer to the Agreement on textile products between the Argentine Republic and the European Economic Community initialled on 30 September 1986, as extended by the Exchange of Letters on 24 September 1991 and 18 December 1992, and to the Note Verbale No 020830 dated 22 December 1993.

With reference to the Note Verbale, which states the Commission's intention of notifying the provisions contained in an attached list to the Textiles Monitoring Body as ‘administrative arrangements’, the Mission hereby informs the Directorate-General of the Argentinian Government's agreement to the terms of the Note verbale.

The Mission of the Argentine Republic to the European Union avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the European Commission the assurance of its highest consideration.

Brussels, ...

Provisions of the Agreement between the European Economic Community and the People's Republic of Bangladesh on trade in textile products, initialled in Brussels, on 16 July 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the People's Republic of Bangladesh on trade in textile products, initialled in Brussels on 17 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Embassy of the People's Republic of Bangladesh presents its compliments to the Directorate-General for External Relations of the European Commission and, with reference to the Commission's Note verbale No 020831 dated 22 December 1993, has the honour to confirm the agreement of the Government of the People's Republic of Bangladesh to the Commission's proposal to notify to the Textile Monitoring Body the provisions of the Bangladesh-EC Textile Agreement referred to in their above Note verbale as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textile Agreement.

The Embassy of Bangladesh avails itself of this opportunity to renew to the Directorate-General for External Relations of the European Commission the assurances of its highest consideration.

Brussels, ...

ANNEX I

ANNEX II

Article 1

Classification system

The classification of the products covered by these administrative arrangements is based on the tariff and statistical nomenclature of the European Community (the Community) (hereinafter called the ‘combined nomenclature’, or in abbreviated form ‘CN’) and any amendments thereof.

Article 2

Determination of origin of covered products

The origin of the products covered by these administrative arrangements shall be determined in accordance with the rules in force in the Community and the procedures for control of the products set out in Protocol A.

If any amendment is made to the rules of origin, the Community shall, with the agreement of Hong Kong, take appropriate measures to avoid any possible consequent reduction of Hong Kong's ability to use the quantitative limits established under Article 2 of the Agreement on Textiles and Clothing (ATC).

The Community undertakes that any amendment made to the rules of origin shall continue to be based on criteria not requiring, in order to confer originating status, more extensive operations than those constituting a single complete process.

Article 3

Double-checking

Hong Kong agrees to restrain its exports to the Community of the products described in the notification of the Community to the Textiles Monitoring Body (TMB) under Article 2 (1) of the ATC to the limits set out therein as increased by the growth rates provided under Article 2 of the ATC and as may be modified by the flexibility provisions notified to the TMB under Article 2 (1) of the ATC, until such time as these products are integrated into GATT 1994 under paragraphs 6, 8 or 9 of Article 2 of the ATC. Exports of restrained textile products shall be subject to a double-checking system specified in Protocol A.

Article 4

Reimports after OPT

Hong Kong and the Community recognize the special and differential character of reimports of textile products into the Community after processing in Hong Kong, Such reimports may be provided for outside the quantitative limits established under Article 2 of the ATC provided that they are effected in accordance with the regulations on economic outward processing in force in the Community.

Article 5

Imports into Community for re-export after processing

1.   Exports to the Community of textile products covered by these administrative arrangements shall not be subject to quantitative limits established under Article 2 of the ATC, provided that they are declared to be for re-export outside the Community in the same state or after processing, within the framework of the administrative system of control which exists within the Community. However, the release for home use within the Community of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Hong Kong authorities and to proof of origin, in accordance with the provisions of Protocol A.

2.   Where the competent authorities in the Community have evidence that products exported from Hong Kong and set off by Hong Kong against a quantitative limit established under Article 2 of the ATC have been subsequently re-exported outside the Community, the authorities concerned shall notify Hong Kong of the quantities involved. On receipt of such notification, Hong Kong may authorize exports for the current or the following year of identical quantities of products, within the same category, which shall not be set off against the quantitative limits established under Article 2 of the ATC.

Article 6

Statistical verification of carry-over

Hong Kong shall provide the Community with export data showing the amounts of carry-over available in any given year. If substantial statistical differences exist between the export data from which the amount to be carried over is calculated and the Community's data the Community may, within the first 120 days of the following year, request consultations in accordance with the procedures referred to in Article 12 (1) of these administrative arrangements on the amounts involved. Any such request shall be accompanied by full particulars of the alleged statistical differences. Where such a request is made, the portions carried over shall not be used until the parties have completed consultations. If no such request is made within a 120-day period, the portion carried over shall be presumed to have been calculated correctly.

Article 7

Exchange of statistical information

1.   Hong Kong undertakes to supply the Community with precise statistical information on all export licences issued by the Hong Kong authorities for all categories of textile products subject to the quantitative limits established under Article 2 of the ATC. Hong Kong shall set out in its periodical statistical reports the maximum export levels for each category subject to a quantitative limit established under Article 2 of the ATC and the rate of utilization of these levels.

2.   The Community shall likewise transmit to the Hong Kong authorities precise statistical information on import documents issued by the Community authorities in respect of export licences issued by Hong Kong. This information shall, for all categories of products, be transmitted before the end of the second month following the quarter to which the statistics relate.

3.   The information referred to in paragraph 1 shall, for all categories of products, be forwarded before the end of the month following the month to which the statistics relate.

4.   The Community shall transmit to the Hong Kong authorities import statistics for products covered by Article 5 (1) of these administrative arrangements.

5.   The information referred to in paragraph 4 shall, for all categories of products, be transmitted before the end of the third month following the quarter to which the statistics relate.

6.   Should it be found on analysis of the information exchanged above 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 12 of these administrative arrangements. Any such consultations shall be resolved on the basis of the agreed descriptions of the products set out in the notification under Article 2 (1) of the ATC.

Article 8

Amendments to classification

1.   The authorities of Hong Kong shall be informed of any amendment to the combined nomenclature or any decision, made in accordance with the procedures in force in the Community, relating to the classification of products covered by these administrative arrangements. Any such amendment or any decision which results in a modification of the classification of products covered by these administrative arrangements shall not have the effect of reducing Hong Kong's ability to use the quantitative limits established under Article 2 of the ATC. The procedures for the application of this paragraph are set out in Protocol A.

2.   In the case of divergent opinions between Hong Kong and the competent Community authorities at the point of entry into the Community on the classification of products subject to quantitative limits established under Article 2 of the ATC, consultations in accordance with Article 12 (1) of these administrative arrangements shall be held with a view to reaching agreement on the appropriate classification of the products concerned and to resolving any difficulties arising therefrom. For this purpose, the authorities of Hong Kong shall be informed by the competent authorities of the Community as soon as a case of divergent opinions on the classification of products arises. Pending agreement on the appropriate classification and in order to avoid disruption to trade, the products in question shall be imported on the basis of the classification indicated by the competent Community authorities at the point of entry, in conformity with the provisions of these administrative arrangements.

Article 9

Circumvention

1.   Hong Kong and the Community agree to cooperate fully in preventing the circumvention of these administrative arrangements by transhipment, re-routing of whatever other means.

2.   The Community and Hong Kong note the well established and close cooperation which exists between the two parties in preventing and dealing with problems relating to the contravention through circumvention of the provisions of previous Agreements between the Community and Hong Kong, and, in particular, the mutually satisfactory solutions which have been reached on equivalent debiting of the corresponding quantitative limits.

3.   The two parties reaffirm their willingness to strengthen this cooperation in all its aspects having regard to the administrative and technical procedures in force in the Community and Hong Kong for the implementation of these administrative arrangements.

4.   Hong Kong confirms that its export control system permits the prompt debiting of circumvented amounts to the appropriate quantitative limits established under Article 2 of the ATC and previous Agreements.

5.   Where information available to the Community as a result of the investigation carried out in accordance with the procedures set out in Protocol A constitutes evidence that products of Hong Kong origin subject to quantitative limits established under Article 2 of the ATC have been transhipped, re-routed or otherwise imported into the Community in circumvention of these administrative arrangements, the Community may request the opening of consultations in accordance with the procedures described in Article 12 (1) of these administrative arrangements, with a view to reaching agreement on an equivalent adjustment of the corresponding quantitative limits.

6.   Should the parties be unable in the course of the consultations to reach a satisfactory solution within the period specified in Article 12 (1) of these administrative arrangements, the Community shall have the right, where clear evidence of circumvention has been provided, to deduct from the quantitative limits amounts equivalent to the products of Hong Kong origin.

7.   Deduction of the relevant quantitative limits shall, as a general rule, be implemented in the following manner:

8.   Should the consultation period provided for in Article 12 (1) of these administrative arrangements be sufficient to complete the examination of the evidence adduced the parties may agree to extend that period.

Article 10

Regional concentration

1.   The quantitative limits established under Article 2 of the ATC on imports into the Community of textile products of Hong Kong origin will not be broken down by the Community into regional shares.

2.   Notwithstanding the above, for imperative technical or administrative reasons or to find a solution to economic problems resulting from regional concentration of imports, or in order to combat circumvention and fraud of the provisions of these administrative arrangements, the Community will establish for a limited period of time a specific management system in conformity with the principles of the internal market. Should the Community have recourse to this provision, the textile products covered by the corresponding export licences can only be put into free circulation in the region(s) of the Community indicated in those licences. Similarly, the products covered by the import licences can only be put into free circulation in the region(s) of the Community indicated in those licences. This provision was invoked by the Community as from 1 January 1993.

3.   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.

4.   Hong Kong shall monitor its exports of products under restraint into the Community. Should a sudden and prejudicial change in traditional trade flows arise, the Community will be entitled to request consultations in order to find a satisfactory solution to those problems. Such consultations must be held within 15 working days of their being requested by the Community, and in accordance with Article 12 (1) of these administrative arrangements. Hong Kong, from the date of request for and pending the consultations, will not issue export licences that would further aggravate the problem.

5.   However, if the parties are unable to reach a satisfactory solution during the consultations, Hong Kong will, if so requested by the Community, respect temporary export limits for one or more regions of the Community. In such a case, these limits shall not preclude the importation into the region(s) concerned of products which were shipped from Hong Kong on the basis of export licences obtained before the date of formal notification to Hong Kong by the Community about the introduction of the above limits. The Community shall inform Hong Kong of the technical and administrative measures that need to be introduced by both parties so that implementation is in conformity with principles of the internal market.

6.   Hong Kong shall endeavour to ensure that exports of textile products subject to quantitative limits established under Article 2 of the ATC into the Community are spaced out as evenly as possible over the year due account being taken in particular of seasonal factors.

7.   Hong Kong shall endeavour not to deprive certain regions of the Community which have traditionally had relatively small shares of Community quotas of imports of products serving as inputs for their processing industry. The Community and Hong Kong shall hold consultations, should the need arise, in order to avert any problems which might occur in this respect.

Article 11

Non-discrimination in allocation of export and import licences

Hong Kong and the Community undertake to refrain from discrimination in the allocation of export licences and import documents respectively.

Article 12

Consultations

1.   Save where it is otherwise provided for in these administrative arrangements, the special consultation procedures referred to in these administrative arrangements shall be governed by the following rules:

2.   If necessary, at the request of either of the parties consultations shall be held on any problems arising from the application of these administrative arrangements. 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.

ANNEX

Provisions of the Agreement between the European Economic Community and the Republic of India on trade in textile products, initialled in Brussels on 31 October 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of India on trade in textile products, initialled in Brussels on 18 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

ANNEX

Provisions of the Agreement between the European Economic Community and the Republic of Indonesia on trade in textile products, initialled in Brussels on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Indonesia on trade in textile products, initialled in Brussels on 27 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

Provisions of the Agreement between the European Economic Community and Macao on trade in textile products, initialled in Brussels on 19 July 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and Macao on trade in textile products, initialled in Brussels on 27 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Minister for Commercial Affairs of Macao to the European Communities and the Member States presents his compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and, with reference to Note verbale No 20824 dated 22 December 1993 concerning the implementation of the Agreement on trade in textile products in accordance with GATT rules, has the honour to inform the Directorate-General of the Macao authorities' agreement on notification of the provisions of the Agreement to the Textiles Monitoring Body as ‘administrative arrangements’ within the meaning of Article 2 (17) of the GATT Uruguay Round Agreement on Textiles and Clothing.

The Minister for Commercial Affairs of Macao avails himself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of his highest consideration.

Brussels, ...

Provisions of the Agreement between the European Community and Malaysia on trade in textile products, initialled in Brussels on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and Malaysia on trade in textile products, initialled in Brussels on 3 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

Dear Mr ...,

I have the pleasure in making reference to the Commission's Note verbale dated 22 December 1993 regarding the notification of textiles provisions to the Textiles Monitoring Body (TMB).

I wish to confirm that Malaysia has no objection on the provisions of the Agreement between the European Community and Malaysia on trade in textile products initialled on 28 June 1986, as amended by the Agreement in the form of Exchange of Letters amending the Agreement between the European Community and Malaysia on trade in textile products initialled in Brussels, 3 December 1992, which will be notified to the Textiles Monitoring Body as administrative arrangements under Article 2 (17) of the Uruguay Round Textile Agreement.

Yours sincerely,

Provisions of the Agreement between the European Community and the Islamic Republic of Pakistan on trade in textile products initialled on 12 September 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Islamic Republic of Pakistan on trade in textile products, initialled in Brussels, on 12 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

Provisions of the Agreement between the European Community and the Republic of Peru on trade in textile products, initialled in Brussels, on 13 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Peru on trade in textile products, initialled in Brussels, on 8 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Mission of the Republic of Peru presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the latter's Note verbale 020825 dated 22 December 1993 concerning notification to the Textiles Monitoring Body of the administrative clauses of the bilateral Agreement on textile products between Peru and the European Community, in accordance with Article 2 (17) of the GATT Uruguay Round Agreement on Textiles and Clothing.

In this connection, and further to informal contacts between the Mission of Peru and the Directorate-General, the Mission hereby informs the Directorate-General of the Peruvian Government's agreement on notification of the provisions of the bilateral Agreement listed in the Annex to this Note.

The Mission of the Republic of Peru avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.

Brussels, ...

ANNEX

Provisions of the Agreement between the European Community and the Republic of the Philippines on trade in textile products, initialled on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of the Philippines on trade in textile products, initialled in Brussels, on 27 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

Provisions of the Agreement between the European Economic Community and the Republic of Singapore on trade in textile products, initialled in Brussels, on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Singapore on trade in textile products, initialled in Brussels, on 26 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Mission of the Republic of Singapore 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 Directorate-General's Note verbale No 020827 of 22 December 1993 and to the Agreement on textile products between the Republic of Singapore and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992 and as further extended by the Exchange of Letters of 26 November 1992.

The Singapore Trade Development Board noted the Commission's intention to notify the Textile Monitoring Body selected provisions in the abovementioned Agreement on textile products as ‘administrative arrangements’, within the meaning of Article 2 (17) of the Uruguay Round Textile Agreement. The Singapore Trade Development Board is of the view that Article 7 of the abovementioned Agreement should also fall within the meaning of Article 2 (17) of the Uruguay Round Textile Agreement.

The Singapore Trade Development Board understands that the text of the bilateral textile Agreements concluded between the European Communities and the exporting countries are more or less the same. As such, the Singapore Trade Development Board would like to know whether the Commission would be notifying the same provisions in the other bilateral textile Agreements of the Communities to the Textile Monitoring Body. The Singapore Trade Development Board would also be pleased to know the schedule of the notification by the Commission to the Textile Monitoring Body.

The Singapore Trade Development Board would like to reaffirm that the understanding reached between the textile negotiators of the European Community and Singapore with regard to the provisions of Article 12 of the abovementioned Agreement as recorded in the confidential Agreed Minutes signed and Confidential Letters exchanged on 26 November 1992 remain unchanged.

The Mission of the Republic of Singapore avails itself of this opportunity to renew to the Directorate-General for External Relations the assurances of its highest consideration.

Brussels, ...

NOTE VERBALE

The Directorate-General of External Economic Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Singapore to the European Communities and has the honour to refer to the Mission's Note verbale No 030/94 concerning the Agreement on textiles products between the Republic of Singapore and the Community applied since 1 January 1987, as extended by the Exchange of Letters initialled on 26 November 1992.

The Directorate-General agrees with the suggestion made by the Singapore Trade Development Board that Article 7 of the abovementioned Agreement should also be included in the notification of administrative arrangements within the meaning of Article 2 (17) of the WTO Textiles and Clothing Agreement.

In addition, the Directorate-General wishes to confirm that the Commission intends to notify to the WTO the same provisions contained in all other bilateral Agreements which the Community has concluded under the MFA. The Commission intends to notify such administrative arrangements to the WTO secretariat before 1 October 1994.

The Directorate-General confirms that the understanding reached between the textiles negotiators of the European Communities and Singapore with regard to the provisions of Article 12 of the abovementioned Agreement as recorded in the confidential Agreed Minutes signed and Confidential Letters exchanged on 26 November 1992 remain unchanged.

The Directorate-General for External Economic Relations avails itself of this opportunity to renew to the Mission of the Republic of Singapore the assurance of its highest consideration.

Brussels, ...

Provisions of the Agreement between the European Community and the Republic of Korea on trade in textile products initialled in Brussels on 7 August 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Korea on trade in textile products, initialled in Brussels, on 18 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Mission of the Republic of Korea to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the Agreement on trade in textile products initialled on 7 August 1986, as extended by the Exchange of Letters initialled on 16 October 1991, and as further extended by the Exchange of Letters of 18 December 1992.

The Mission has also the honour to refer to the Note verbale of the Commission of 22 December 1993 regarding the notification to the Textile Monitoring Body of the provisions contained in the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement, and to inform the Commission that it confirms its agreement on the details of the abovementioned notification.

The Mission of the Republic of Korea to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.

Brussels, ...

Provisions of the Agreement between the European Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products, initialled on 31 May 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products, initialled in Brussels, 17 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

Dear Mr ...,

Please refer to Note verbale No 020839 dated 22 December 1993.

The Competent Authority for the Textile Monitoring Body of Sri Lanka has no objection to the proposed notification which is required to facilitate the administration of the Bilateral Textile Agreement after its integration into the Uruguay Round Textiles Accord.

Yours sincerely,

Provisions of the Agreement between the European Community and the Kingdom of Thailand on trade in textile products, initialled on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Kingdom of Thailand on trade in textile products, initialled in Brussels, on 17 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement

NOTE VERBALE

The Mission of Thailand to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and with reference to the Mission's Note No 250/2537 dated 15 February 1994, concerning the consideration by the Thai authorities on the notification to the Textile Monitoring Body of the administrative arrangement provisions under the existing Agreement on textile products between Thailand and the Community as last extended by the Exchange of Letters of 17 December 1992, has the honour to inform the latter that the Thai authorities concerned wish to propose some modifications to the notification to the Textile Monitoring Body suggested by the Directorate-General's Note verbale No 020836 dated 22 December 1993 as follows:

The Mission of Thailand avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of European Communities the assurances of its highest consideration.

Brussels, ...

NOTE VERBALE

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of Thailand to the European Communities and has the honour to refer to the Mission's Note verbale No 997/2537 dated 5 July 1994 concerning the administrative arrangements to be notified under Article 2 (17) of the WTO Textiles and Clothing Agreement.

The Directorate-General confirms its agreement to the two amendments to the draft notification annexed to the Directorate-General's Note verbale No 20836 dated 22 December 1993, which the Mission of Thailand has proposed.

The Directorate-General avails itself of this opportunity to renew to the Mission of Thailand the assurance of its highest consideration.

Brussels, ...