Agencia Estatal Boletín Oficial del Estado

EL CONSEJO DE LA UNION EUROPEA,

Visto el Tratado constitutivo de la Comunidad Europea y, en particular, su artículo 113 en relación con la primera frase del apartado 2 de su artículo 228,

Vista la propuesta de la Comisión,

Considerando que la Comisión ha negociado, en nombre de la Comunidad, con la República Popular de China, un Acuerdo sobre el comercio de productos textiles no incluidos en el Acuerdo bilateral AMF sobre el comercio de productos textiles, rubricado el 9 de diciembre de 1988, tal y como fue

ampliado y modificado por el Canje de Notas rubricado el 8 de diciembre de 1992;

Considerando que este Acuerdo bilateral debe aplicarse, con carácter provisional, a partir del 1 de enero de 1995, en espera de la finalización de los procedimientos necesarios para su celebración, a condición de que se aplique provisionalmente de forma recíproca por la República Popular de China,

DECIDE:

Artículo único

A partir del 1 de enero de 1995, se aplicará con carácter provisional el Acuerdo entre la Comunidad Europea v la República Popular de China sobre el comercio de productos textiles no incluidos en el Acuerdo bilateral AMF sobre el comercio de productos textiles, rubricado el 9 de diciembre de 1988, ampliado v modificado por el Canje de Notas rubricado el 8 de diciembre de 1992 con la República Popular de China.

El texto del Acuerdo figura adjunto a la presente Decisión.

Hecho en Luxemburgo, el 10 de abril de 1995.

Por el Consejo

El Presidente

A. JUPPE

AGREEMENT

between the European Community and the People's Republic of China on trade in textile products not covered by the MFA bilateral Agreement on trade in textile products initialled on 9 December 198 as extended and modified by the exchange of letters initialled on 8 December 1992

THE COUNCIL OF THE EUROPEAN UNION,

of the one part, and

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA,

of the other part,

DESIRING to promote the orderly and equitable development of trade in textile products other tran those made of cotton, wool, fine animal hair and man-made fibres, between the European Community (hereinafter referred to as "the Community") and thre People's Republic of China (hereinafter refrred to as "China"), with a view to strengthening cooperation and securuty for trade,

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 China,

HAVING REGARD o the Trade and Economic Cooperation Agreement between the Community and China,

HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:

THE COUNCIL OF THE EUROPEAN UNION:

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA:

WHO HAVE AGREED AS FOLLOWS:

Article 1

1. The present Agreement covers the trade in textile raw materials and textile products, falling within Section XI of the combined nomenclature, that are listed in Annex I originating in the People's Republic of China.

2. Subject to the provisions of this or any subsequent Agreements, the Community undertakes, in respect of the products listed in Annex I, to suspend for the duration of this Agreement the apllication of quantitative import restrictions in force at the time of its initialling and not to introduce new quantitative restrictions, except a specified below.

3. Withour prejudice to anti-dumping and countervailing measures, measures having equivalent effect to quantitative restrictions on the importation into the Comunity of the products listed in Annex I shall be prohibited for the duration of this Agreement.

Article 2

1. The classification of the products covered by this Agreements is based on the tariff and statistical nomenclature and on the Common Customs Tariff of the Community (hereinafter called the "combined nomenclature" or in abbreviated from "CN").

Any amendment to the combined nomenclatura (CN) made in accordance with the procedures in force in the C ommunity, concerning categories of products covered by this Agreement or any decision relating to the classification of goods shall not have the effect of reducing any quantitative limit introduced pursuant to this Agreement.

2. 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 China and shall not have the effect of reducing any quantitative limit introduced pursuant to this Agreement.

The procedures for control of the origin of the products referred to above are laid down in Protocol A.

Article 3

1. China agrees to establisch and maintain for each calendar year quantitative limits on its exports to the Community in accordance with Annex II. Such exports shall be subject to the double checking system specified in Protocol A.

2. In administering the quantitative limits referred to in paragraph 1 China shall ensure that the Community textile industry shall benefit from utilization of the said limits.

More particularly, as regards categories 156, 157, 159 and 161, China undertakes to reserve, as a priority, 23 % of the quantitative limits concerned for users belonging to the Community textile industry during 90 days beginning on 1 January of each year.

To facilitate the implementation of these provisions, the Community shall provide the competent Chinese authorities, before the end of each year, with a list of interested manufacturers and processors and, if possible, of the quantity of products requested by each firm. To this end, the firms concerned are invited to make direct contact with the relevant Chinese bodies by 15 February of the Following year in order to make their purchasing intentions known.

3. In the event of denunciation of this Agreement as provided for in Article 17 the quantitative limits established in Annex II shall be reduced on a pro rata basis.

Article 4

1. 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 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 Chinese authorities, and to proof of origin in accordance with the provision of Protocol A.

2. Where the Comunity authorities ascertain that re-exports of textile products have been set of aggainst 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 Chinese 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, as appropiate.

Article 5

1. China 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.

2. China shall endeavour tho ensure that exports of textile products subject to quantitative limits into the Community are spaced out as evenly as possible over the year, due account being taken in particular of seasonal factors.

Article 6

1. China shall supply the Community with precise statistical informatin on all export licences issued for categories of textile products subject to the quantitative limits set out in Annex II, expressed in quantities and in terms of value and broken down by Member States of the Community.

2. The Community shall likewise transmit to the Chinese authorities precise statistical information on import authorization or documents issued by the Community authorities and import statistics for products covered by the quantitative limits set out in Annex II.

3. The information referred to in paragraphs 1 and 2 above shall, for all categories of products, be forwarded before the end of the month following the month to which the statistics relate.

4. Upon request by the Community, China shall supply import statistics for all products covered by Annex I.

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 14 of this Agreement.

6. For the purpose of applying the provisions of Article 7, the Community undertakes to provide the Chinese 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 States.

Article 7

1. Exports of textile products not listed in Annex II to this Agreement may be made subject to quantitative limits on the conditions laid down in the following paragraphs.

2. Whire 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 China, in relation to the proceding years' totalimports into the Community from all sources of products in that category, reaches 25 % for categories covering silk products and 10 % for all the other products listed in Annex I, it may request the opening of consultations in accordance with the procedure described in Article 14 of this Agreement, with a view to reaching agreement on an appropiate restraint level for the products falling within such category.

The Community shall authorize the importation of products of the said category shipped from China before the date on which the request for consultations was submitted.

For the purposes of applying the provisions of this paragraph in the year 1995, the preceding year's total imports from all third countries shall be calculated on the basis of imports into the Community as constituted on 31 December 1994 and of imports into Austria, Finland and Sweden. Trade between the Community, Austria, Finland and Swede, or between Austria, Finland and sweden shall be escluded from this total.

3. Pending a mutually satisfactory solution, China undertakes to limit exports of the products in the category concerned to the Community or to those 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 aplication of the formula set out in paragraph 2, and gave rise to the request for consultation, or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher.

4. Should the Parties be unable in the course of consultations to reach a satisfactory solution within the period specified in Article 14 (1), the Community shall have the right to introduce a definitive quantitative limit at an annual level not lowr 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 lével so fixed shall be revised upwards after consultations in accordance with the procedure referred to in Article 14 with a view to

fulfilling the conditions set out in paragraph 2, should the trent of total imports into the Community of the products in question make this necessary.

5. The limits introduced under paragraph 2 or 4 may in no case be lower than the level o imports of products in that category originating in China in 1993.

6. The provisions of this Article shall not apply where the percentages specified in paragraph 2 have been reached as a result of fal in total imports into the Community, and not as a result of a increase in exports of products originating in China.

7. In the event of the provisions of paragraph 2, 3 or 4 being applied, China undertakes 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.

8. Up to the date of communication of the statistics referred to in Article 6 (6), the provisions of paragraph 2 of this Article shall apply on the basis of the annual statistics previously communicated by the Comunity.

9. The provisions of this Agreement which concern export of products subject to the quantitative limits established in Annex II shall also apply to products for which quantitative limits are introduced pursuant to this Article.

Article 8

1. In any Agreement year advance use of a portion of the quantitative limit established for the following Agreement year in authorized for each category of products up to 1% of the quantitative limit for the current Agreement year, with a prossibility to reach 5% after consultations in accordance with Article 14 (1).

Amounts delivered in advance shall be deducted from the corresponding quantitative limits established for the following Agreement year.

2. Carryover to the corresponding quantitative limit for the following Agreement year of the amounts not used during any Agreement year is authorized for each category of products up to 3% of the quantitative limit for the current Agreement year, with a possibility to reach 7% after consultations in accordance with Article 14.

3. Transfers between categories shall not be made except as follows:

- transfers between categories 156, 157, 159 and 161 may be made up to 1,5% of the quantitative limits for the category to which the transfer is made,

- transfers between the remaining categories may be made up to 6 % of the quantitative limit for the category to which the transfer is made.

4. The increase in any category of products resulting from the cumulative application of the provisions of paragraphs 1, 2, and 3 during an Agreement year shall not exceed 14%.

5. The table of equivalence applicable to the transfers referred to above is given in Annex I to this Agreement.

6. Prior notification shall be given by the Chinese authorities in the event of recourse to the provisions of paragraphs 1, 2 and 3, at least 15 days in advance.

Article 9

1. China and the Community agree to cooperate fully in preventing the

circumvention of this Agreement by transhipment, rerouting or whatever other means.

2. Where information available to the Community as a result of the investigations carried out in a accordance with the procedures set out in Protocol A constitutes evidence that products of Chinese 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 14, with a view to reaching agreement on an equivalent adjustment of the corresponding quantitative limits establisched under this Agreement.

3. The two parties agree that in dealing with cases of circumvention the provisions of Article 5 of the Uruguay round Agreement on Textiles and Clothing will be applied by the two parties, with the understanding that recourse to the TMB will become available as soon as both parties become Members of the WTO.

Article 10

The two contracting Parties undertake to promote the exchange of visits by persons, groups and delegations from business, trade and industry, to facilitate contacts in the industrial, commercial and technical fields connected with trade in products and garments covered by the present Agreement and to assist in the organization of fairs and exhibitions of mutual interest.

The Contracting Parties, recognizing the need for an enhanced industrial cooperation for the products covered by this Agreement, will consult with a view to promoting action to encourage:

- investments that may promote increased integration between silk industries of both Parties and technological exchanges,

- the establishment of an arbitration body recognized by both industries to address possible disputes concerning the fulfilment of conditions and terms set out in contracts regarding in particular issues concerning the quantities and quality of products to be delivered,

- the establishment of a system of grading and standards for silk recognized by both industries and of appropiate common methods of testing.

Article 11

China and the Community recognize the special and diferential character of reimports of textile products into the Community after processing in China.

Provided that they are effected in accordance with the Community regulations governing economic outhward processing these reimports shall not be subject to the quantitative limits set out in Annex II when they are made in accordance with the specific arrangements laid down in Protocol B.

Article 12

China will ensure that the supply to the Community industry of raw materials shall be made at conditions not less favourable than to Chinese domestic users.

Article 13

China will ensure the respect of intellectual property rights on marks, designs and models belonging to community operators. The two Parties, at the

request of either of them, shall hold consultations in accordance with the procedure laid down in Article 14 for the purpose of finding an equitable solution to any dispute relating to the protection of intellectual property rights on products covered by this Agreement.

Article 14

1. Save where it is otherwise provied for in this Agreement, the 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 opion 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 on a mutually acceptable conclusion within one further month at the latest.

2. The Comunity 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 form a sharp and substantial increase in imports, by comparison to the preceding year.

Article 15

This Agrrement shall be drawn up in two copies in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Chinese languages, each of these texts being equally authentic.

Article 16

As regards the Community, this Agreement shall apply to the territories in which the Treaty establishing the European Community is applied under the conditions laid down in that Treaty.

Article 17

1. This Agreement shall enter into force on the first day of the month following the date of its signature. It shall apply with effect from 1 January 1995 and be applicable for a duration of two years. Thereafter, its application shall be automatically extended for succesive periods of one year unless either Party notifies the other at least six months in advance that it does not a agree with the extension.

2. Should China become a Member of the World Trade Organization the restrictions in force shall be phased out in the framework of the Agreement on Textiles and Clothing of the Uruguay Round and notably the provisions of its Articles 2 (8), (13) and (14), 3 (2) (b) and 9.

3. Either PArty may at any time propose modifications to this Agreement of denounce it, provided that at least six months' notice is given. In that event, the Agreement shall come to an end at the expiry of the period of notice.

4. The Annexes and Protocols to this Agreement and the Agreed Minutes joined thereto shall form an integral part thereof.

For the government For the council

of the of the

People's Republic of China European Union

ANNEX I

(Referred to in Article 1 of the Agreement)

1. This Annex covers textile raw materials (categories 128 and 154), textile products other than those of wool and fine animal hair, cotton and man-made fibres, as well as man-made fibres and filaments and yarns of categories 124, 125 A, 125 B, 126, 127 A and 127 B.

2. Without prejudice to the rules for the interpretation of the combined nomenclature, the wording of the description of goods is considered to be of indicative value only, since the products covered by each category are determined, within this Annex, by CN codes. Where there is an 'ex' symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.

3. Garments which are not recognizable as being garments for men or boys or as being garments for women or girls are classified with the latter.

4. Where the expression 'babies' garments' is used, the is meant to cover garments up to and including commercial size 86.

GROUP I

Table of

equivalence

Category CN code 1994 Descripción pieces/kg g/piece

(1) (2) (3) (4) (5)

ex 20 ex 6302 29 90 Bed linen, other than

ex 6302 39 90 knitted or crocheted

ex 32 ex 5802 20 00 Woven pile fabrics and

ex 5802 30 00 chenille fabrics and tufted

textile surfaces

ex 39 ex 6302 59 00 Table linen, toilet and

ex 6302 99 00 kitchen linen, other than

knitted or crocheted and

other than those of

category 118

GROUP II

(1) (2) (3) (4) (5)

ex 12 ex 6115 19 90 Panty-hose and tights, 24,3 41

ex 6115 20 90 stockings, understockings,

ex 6115 99 00 socks, ankle socks,

sockettes and the like,

knitted or crocheted, other

than for babies

ex 13 ex 6107 19 00 Men's or boys' underpants 17 59

ex 6108 29 00 and briefs, women's or

girls' knickers and briefs,

knitted or crocheted

ex 14 ex 6210 20 00 Men's or boys' woven 0,72 1389

overcoats, raincoats and

other coats, cloaks and

capes

ex 15 ex 6210 30 00 Women's or girls' woven 0,84 1190

overcoats, raincoats and

other coats, cloaks and

capes, jackets and blazers,

other than parkas

ex 18 ex 6207 19 00 Men's or boys' singlets and

ex 6207 29 00 other vests, underpants,

briefs, nightshirts,

pyjamas, bathrobes,

dressing gowns and similar

articles, other than

knitted or crocheted

ex 6207 99 00 Women's or girls' singlets

ex 6208 19 90 and other vests, slips,

ex 6208 29 00 petticoats, briefs,

ex 6208 99 00 panties, nightdresses,

pyjamas, négligés,

bathrobes, dressing gowns

and similar articles, other

than knitted or crocheted

ex 19 ex 6213 90 00 Handkerchiefs, other than 59 17

those of silk and silk

waste

ex 24 ex 6107 29 00 Men's or boys' nightshirts, 3,9 257

pyjamas, bathrobes,

dressing gowns and similar

articles, knitted or

crocheted

ex 6108 39 00 Women's or girls'

nightdresses, pyjamas,

négligés, bathrobes,

dressing gowns and similar

articles, knitted or

crocheted

ex 27 ex 6104 59 00 Women's or girls' skirts, 2,6 385

including divided skirts

ex 28 ex 6103 49 10 Trousers, bib and brace 1,61 620

ex 6104 69 10 overalls, breeches and

shorts (other than

swimwear), knitted or

crocheted

ex 31 ex 6212 10 00 Brassières, woven, knitted 18,2 55

or crocheted

ex 68 ex 6209 90 00 Babies' garments and

clothing accessories,

excluding babies' gloves,

mittens and mitts of

categories ex 10 and ex 87,

and babies' stockings,

socks and sockettes, other

than knitted or crocheted,

of category ex 88

ex 73 ex 6112 19 00 Tracksuits of Knitted or 1,67 600

crocheted fabric

ex 78 ex 6210 40 00 Woven garments of fabrics

ex 6210 50 00 of heading Nos 5903, 5906

and 5907, excluding

garments of categories ex

14 and ex 15

ex 83 ex 6112 20 00 Garments of Knitted or

ex 6113 00 90 crocheted fabrics of

heading Nos 5903 and

5907 and ski suits, Knitted

or crocheted

GROUP III A

(1) (2) (3) (4) (5)

ex 38 B ex 6303 99 90 Net curtains, other than

Knitted or crocheted

ex 40 ex 6303 99 90 Woven curtains (including

ex 6304 19 90 drapes, interior blinds,

ex 6304 99 00 curtain and bed valances

and other furnishing

articles), other than

Knitted or crocheted

ex 58 ex 5701 90 10 Carpets, carpetines and

ex 5701 90 90 rugs, knotted (made up or

not)

ex 59 ex 5702 10 00 Carpets and other textile

ex 5702 59 00 floor coverings, other than

ex 5702 99 00 the carpets of categories

ex 5703 90 10 ex 58, 142 and 151 B

ex 5703 90 90

ex 5704 10 00

ex 5704 90 00

ex 5705 00 90

ex 60 ex 5805 00 00 Tapestries, hand-made, of

the type Gobelins,

Flanders, Aubusson,

Beauvais and the like, and

needleworked tapestries

(for example, petit point

and cross stitch) made in

panels and the like by hand

ex 61 ex 5806 10 00 Narrow-woven fabrics, and

ex 5806 20 00 narrow fabrics (bolduc)

ex 5806 39 00 consisting of warp without

ex 5806 40 00 weft assembled by means of

an adhesive, other than

labels and similar articles

of category ex 62 and of

category 137

Elastic fabrics and

trimmings (not knitted or

crocheted), made from

textile materials assembled

from rubber thread

ex 62 ex 5606 00 91 Chenille yarn (including

ex 5606 00 99 flock chenille yarn),

gimped yarn (other than

metallized yarn and gimped

horsehair yarn)

ex 5804 10 11 Tulle and other net fabrics

ex 5804 10 19 but not including woven,

ex 5804 10 90 knitted or crocheted

ex 5804 29 10 fabrics, hand or

ex 5804 29 90 mechanically-made lace, in

ex 5804 30 00 the piece, in strips or in

motifs

ex 5807 10 10 Labels, badges and the like

ex 5807 10 90 of textile materials, not

embroidered, in the piece,

in strips or cut to shape

or size, woven

ex 5808 10 00 Braids and ornamental

ex 5808 90 00 trimmings in the piece;

tassels; pompoms and the

like

ex 5810 10 10 Embroidery, in the piece,

ex 5810 10 90 in strips or in motifs

ex 5810 99 10

ex 5810 99 90

ex 63 ex 5906 91 00 Knitted or crocheted fabric

containing by weight 5% or

more of elastometric yarn

and knitted or crocheted

fabric containing by weight

ex 6002 10 10 5% or more of rubber thread

ex 6002 10 90

ex 6002 30 10

ex 6002 30 90

ex 65 ex 5606 00 10 Knitted or crocheted fabric

other than those of

category ex 63

ex 6002 10 10

ex 6002 30 10

ex 66 ex 6301 10 00 Travelling rugs and

ex 6301 90 90 blankets, other than

knitted or crocheted

GROUP III B

(1) (2) (3) (4) (5)

ex 10 ex 6116 10 10 Gloves, mittens and mitts, 17 pairs 59

ex 6116 10 90 knitted or crocheted

ex 6116 99 00

ex 67 ex 5807 90 90 Knitted or crocheted

clorthing accessories other

than for babies; household

linen of all kinds, knitted

or crocheted; curtains

ex 6113 00 10 (including drapes) and

interior blinds, curtain or

bed valances and other

furnishing articles knitted

or crocheted; knitted or

crocheted

ex 6117 10 00 blankets and travelling

ex 6117 20 00 rugs, other knitted or

ex 6117 80 10 crocheted articles

ex 6117 80 90 including parts of

ex 6117 90 00 garments or of clothing

accessories

ex 6301 90 10

ex 6302 10 90

ex 6302 40 00

ex 67 ex 6303 19 00

(cont'd)

ex 6304 11 00

ex 6304 91 00

ex 6307 10 10

ex 6307 90 10

ex 69 ex 6108 19 90 Women's or girls' slips and 7,8 128

petticoats, knitted or

crocheted

ex 72 ex 6112 39 10 Swimwear 9,7 103

ex 6112 39 90

ex 6112 49 10

ex 6112 49 90

ex 6211 11 00

ex 6211 12 00

ex 75 ex 6103 19 00 Men's or boys' knitted or 0,80 1250

ex 6103 29 00 crocheted suits and

ensembles

ex 85 ex 6215 90 00 Ties, bow ties and cravats 17,9 56

not knitted or crocheted,

other than those of

category 159

ex 86 ex 6212 20 00 Corsets, corset-belts, 8,8 114

ex 6212 30 00 suspender belts, braces,

ex 6212 90 00 suspenders, garters and the

like, and parts thereof,

whether or not knitted or

crocheted

ex 87 ex 6216 00 00 Gloves, mittens and mitts,

ex 6209 90 00 not knitted or crocheted

ex 88 ex 6217 10 00 Stockings, socks and

ex 6217 90 00 sockettes, not knitted or

ex 6209 90 00 crocheted; other clothing

accessories, parts of

garments or of clothing

accessories, other than for

babies, other than knitted

or crocheted

ex 91 ex 6306 29 00 Tents

ex 94 ex 5601 10 90 Wadding of textile

ex 5601 29 00 materials and articles

ex 5601 30 00 thereof; textile fibres,

not exceeding 5 mm in

length (flock), textile

dust and mill neps

ex 95 ex 5602 10 19 Felt and articles thereof,

ex 5602 10 39 whether or not impregnated

ex 5602 10 90 or coated, other than floor

ex 5602 29 90 coverings

ex 5602 90 00

ex 5807 90 10

ex 6210 10 10

ex 6307 90 91

ex 97 ex 5608 90 00 Nets and netting made of

twine, cordage or rope and

made up fishing nets of

yarn, twine, cordage or

rope

ex 98 ex 5609 00 00 Ogher articles made from

yarn, twine, cordage, rope

or cables, other than

textile fabrics, articles

made from such fabrics and

ex 5905 00 10 articles of category ex 97

ex 99 ex 5901 10 00 Textile fabrics coated with

ex 5901 90 00 gum or amylaceous

substances, of a kind used

for the outer covers of

books and the like, tracing

cloth; prepared painting

canvas; buckram and similar

stiffened textile fabrics

of a kind used for hat

foundations

ex 99 ex 5904 10 00 Linoleum, whether or not

(cont'd) ex 5904 91 10 cut to shape; floor

ex 5904 91 90 coverings consisting of a

ex 5904 92 00 coating or covering applied

on a textile backing,

whether or not cut to shape

ex 5906 10 10 Rubberized textile fabrics,

ex 5906 10 90 not knitted or crocheted

ex 5906 99 10 excluding those for tyres

ex 5906 99 90

ex 5907 00 00 Textile fabrics otherwise

impregnated or coated;

painted canvas being

theatrical sceney, studio

back-cloths or the like,

other than of category ex

100

ex 100 ex 5903 10 10 Textile fabrics,

ex 5903 10 90 impregnated, coated,

ex 5903 20 10 covered or laminated with

ex 5903 20 90 preparations of cellulose

ex 5903 90 10 derivates or of other

ex 5903 90 91 artificial plastic

ex 5903 90 99 materials

ex 109 ex 6306 19 00 Tarpaulins, sails, awnings

ex 6306 39 00 and sunblinds

ex 110 ex 6306 49 00 Woven pneumatic mattresses

ex 111 ex 6306 99 00 Camping goods, woven, other

than pneumatic mattresses

and tents

ex 112 ex 6307 20 00 Other made up textile

ex 6307 90 99 articles, woven excluding

those of categories ex 113

and ex 114

ex 113 ex 6307 10 90 Floor cloths, dish cloths

and dusters, other than

knitted or crocheted

ex 114 ex 5908 00 00 Woven fabrics and articles

ex 5909 00 90 for technical uses, other

ex 5910 00 00 than those of category 136

ex 5911 10 00

ex 5911 31 19

ex 5911 31 90

ex 5911 32 10

ex 5911 32 90

ex 5911 40 00

ex 5911 90 10

ex 5911 90 90

GROUP IV

(1) (2) (3) (4) (5)

115 5306 10 11 Flax or ramie yarn

5306 10 19

5306 10 31

5306 10 39

5306 10 50

5306 10 90

5306 20 11

5306 20 19

5306 20 90

115 5308 90 11

(cont'd) 5308 90 13

5308 90 19

117 5309 11 11 Woven fabrics of flax or

5309 11 19 ramie

5309 11 90

5309 19 10

5309 19 90

5309 21 10

5309 21 90

5309 29 10

5309 29 90

5311 00 10

5803 90 90

5905 00 31

5905 00 39

118 6302 29 10 Table linen, toilet linen

6302 39 10 and kitchen linen, of flax

6302 39 30 or ramie, other than

6302 52 00 knitted or crocheted

ex 6302 59 00

6302 92 00

ex 6302 99 00

120 ex 6303 99 90 Curtains (including

drapes), interior blinds,

curtain and bed valances

and other furnishing

articles, not knitted or

crocheted, of

6304 19 30 flat or ramie

ex 6304 99 00

121 ex 5607 90 00 Twine, cordage, ropes and

cables, plaided or not, of

flax or ramie

122 ex 6305 90 00 Sacks and bags, of a kind

used for the packing of

goods, used, of flax, other

than knitted or crocheted

123 5801 90 10 Woven-pile fabrics and

chenille fabrics of flax or

ramie, other than

narrow-woven fabrics

6214 90 90 Shawls, scarves, mufflers,

mantillas, veils and the

like, of flax or ramie,

other than knitted or

crocheted

GROUP V

(1) (2) (3) (4) (5)

124 5501 10 00

5501 20 00

5501 30 00

5501 90 00

5503 10 11

5503 10 19

5503 10 90

5503 20 00

5503 30 00

5503 40 00

124 5503 90 10

(cont'd) 5503 90 90

5505 10 10

5505 10 30

5505 10 50

5505 10 70

5505 10 90

125 A 5402 41 10 Synthetic filament yarn

5402 41 30 (continuous) not put up for

5402 41 90 retail sale

5402 42 00

5402 43 10

5402 43 90

125 B 5404 10 10 Monofilament, strip

5404 10 90 (artificial straw and the

5404 90 11 like) and imitation catgut

5404 90 19 of synthetic materials

5404 90 90

ex 5604 20 00

5604 90 00

126 5502 00 10 Artificial staple fibres

5502 00 90

5504 10 00

5504 90 00

5505 20 00

127 A 5403 31 00 Yarn of artificial

ex 5403 32 00 filaments (continuous) not

5403 33 10 put up for retail sale,

single yarn or viscose

rayon untwisted or with a

twist of not more than 250

turns per metre and single

non-textured yarn of

cellulose acetate

127 B 5405 00 00 Monofilament, strip

(artificial straw and the

like) and imitation catgut

of artificial textile

materials

ex 5604 90 00

128 5105 40 00 Coarse animal hair, carded

or combed

129 5110 00 00 Yarn of coarse animal hair

or of horsehair

130 A 5004 00 10 Silk yarn other than yarn

5004 00 90 spun from silk waste

5006 00 10

130 B 5505 00 10 Silk yarn other than of

5505 00 90 category 130 A; silk-worm

gut

5006 00 90

ex 5604 90 00

131 5308 90 90 Yarn of other vegetable

textile fibres

132 5308 30 00 Paper yarn

133 5308 20 10 Yarn of true hemp

5308 20 90

134 5605 00 00 Metalized yarn

135 5113 00 00 Woven fabrics of coarse

animal hair or of horsehair

136 A 5007 20 19 Weven fabrics of silk or of

ex 5007 20 31 silk waste other than

ex 5007 20 39 unbleached, scoured or

ex 5007 20 41 bleached

5007 20 59

5007 20 61

5007 20 69

5007 20 71

5007 90 30

5007 90 50

5007 90 90

136 B 5007 10 00 Woven fabrics of silk or of

5007 20 11 silk waste other than those

5007 20 21 of category 136 A

ex 5007 20 31

ex 5007 20 39

ex 5007 20 41

5007 20 51

5007 90 10

5803 90 10

ex 5905 00 90

ex 5911 20 00

137 ex 5801 90 90 Woven pile fabrics and

chenille fabrics and

narrow-woven fabrics of

silk, or of silk waste

ex 5806 10 00

138 5311 00 90 Woven fabrics of paper yarn

and other textile fibres

other than of ramie

ex 5905 00 90

139 5809 00 00 Weven fabrics of metal

threads or of metalized

yarn

140 ex 6001 10 00 Knitted or crocheted fabric

6001 29 90 of textile material other

6001 99 90 than wool or fine animal

hair, cotton or man-made

fibres

6002 20 90

6002 49 00

6002 99 00

141 ex 6301 90 90 Travelling rugs and

blankets of textile

material other than wool

or fine animal hair, cotton

or man-made fibres

142 ex 5702 39 90 Carpets and other textile

ex 5702 49 90 floor coverings of sisal,

ex 5702 59 00 of other fibres of the

ex 5702 99 00 Agave family or of Manila

hemp

ex 5705 00 90

144 5602 10 35 felt of coarse animal hair

5602 29 10

145 5607 30 00 Twine, cordage, ropes and

ex 5607 90 00 cables plaited or not,

abaca (Manila hemp) or of

true hemp

146 A ex 5607 21 00 Binder or baler twine for

agricultural machines, of

sisal or other fibres of

the Agave family

146 B 5607 21 00 Twine, cordage, ropes and

5607 29 10 cables of sisal or other

5607 29 90 fibres of the Agave family,

other than the products of

category 146 A

146 C 5607 10 00 Twine, cordage, ropes and

cables, whether or not

plaited or braided, of jute

or of other textile bast

fibres of heading No 5303

147 5003 90 00 Silk waste (including

cocoons unsuitable for

reeling), yarn waste and

garnetted stock, other than

not carded or combed

148 A 5307 10 10 Yarn of jute or of textile

5307 10 90 bast fibres of heading No

5307 20 00 5303

148 B 5308 10 00 Coir yarn

149 5310 10 90 Woven fabrics of jute or of

ex 5310 90 00 other textile bast fibres

of a width of more than 150

cm

150 5310 10 10 Woven fabrics of jute or of

ex 5310 90 00 other textile bast fibres

of a width of not more than

150 cm

5905 00 50 Sacks and bags, of a kind

6305 10 90 used for the packing of

goods, of jute or of other

textile bast fibres, other

than used

151 A 5702 20 00 Floor coverings of coconut

fibres (coir)

151 B ex 5702 39 90 Carpets and other textile

ex 5702 49 90 floor coverings, of jute or

ex 5702 59 00 of other textile bast

ex 5702 99 00 fibres, other than tufted

or flocked

152 5602 10 11 Needle loom felt of jute or

of other textile bast

fibres, other than tufted

or flocked

153 6305 10 10 Used sacks and bags, of a

kind used for the packing

of goods, of jute or of

other textile bast fibres

of heading No 5303

154 5001 00 00 Silk worm cocoons, suitable

for reeling

5002 00 00 Raw silk (not thrown)

5003 10 00 Silk waste (including

cocoons unsuitable for

reeling), yarn waste and

garnetted stock, not carded

or combed

5101 11 00 Wool and carded or combed

5101 19 00

5101 21 00

5101 29 00

5101 30 00

5102 10 10 Fine or coarse animal hair,

5102 10 30 not carded or combed

5102 10 50

5102 10 90

5102 20 00

154 5103 10 10 Waste of wool or fine or

(cont'd) 5103 10 90 coarse animal hair,

5103 20 10 including yarn waste but

5103 20 91 excluding garnetted stock

5103 20 99

5103 30 00

5104 00 00 Garnetted stock of wool or

fine or coarse animal hair

5301 10 00 Flax, raw or processed but

5301 21 00 not spun: flax tow and

5301 29 00 waste (including yarn waste

5301 30 10 and garnetted stocks)

5301 30 90

5305 91 00 Ramie and other vegetable

5305 99 00 textile fibres raw or

processed but not spun:

tow, noils and waste, other

than coir and abaca of

heading No 5304

5201 00 10 Cotton, not carded or

5201 00 90 combed

5202 10 00 Cotton waste (including

5202 91 00 yarn waste and garnetted

5202 99 00 stock)

5302 10 00 True hemp (Cannabis sativa

5302 90 00 L.), raw or processed but

not spun; tow and waste of

true hemp (including yarn

waste and garnetted stock)

5305 21 00 Abaca (Manila hemp or Musa

5305 29 00 textilis Nee), raw or

processed but not spun:

tow, noils and waste or

abaca (including yarn waste

and garnetted stock)

5303 10 00 Jute and other textile bast

5303 90 00 fibres (excuding flax, true

hemp and ramie), raw or

processed but not spun: tow

and waste of true hemp

(including yarn waste and

garnetted stock)

5304 10 00 Other vegetable textile

5304 90 00 fibres, raw or processed

but not spun: tow, noils

and waste of such fibres

(including yarn waste and

garnetted stock)

5305 11 00

5305 19 00

5305 91 00

5305 99 00

156 6106 90 30 Blouses and pullovers

knitted or crocheted of

silk or silk waste for

women and girls

ex 6110 90 90

157 6101 90 10 Garments, knitted or

6101 90 90 crocheted, excluding

graments of categories ex

10, ex 12, ex 13, ex 24,

ex 27, ex 28, ex 67, ex 69,

ex 72, ex 73, ex 75, ex 83

and 156

6102 90 10

6102 90 90

ex 6103 39 00

6103 49 99

ex 6104 19 00

ex 6104 29 00

ex 6104 39 00

6104 49 00

6104 69 99

6105 90 90

6106 90 50

6106 90 90

157 ex 6107 99 00

(cont'd) 6108 99 90

6109 90 90

6110 90 10

ex 6110 90 90

ex 6111 90 00

6114 90 00

159 6204 49 10 Dresses, blouses and

shirt-blouses, not knitted

or crocheted, of silk or

silk waste

6206 10 10

6214 10 00 Shawls, scarves, mufflers,

mantillas, veils and the

like, not knitted or

crocheted, of silk or silk

waste

6215 10 00 Ties, bow ties and cravats

of silk or silk waste

160 6213 10 00 Handkerchiefs of silk or

silk waste

161 6201 19 00 Garments, not knitted or

6201 99 00 crocheted, excluding

garments of categories ex

14, ex 15, ex 18, ex 31, ex

68, ex 72, ex 78, ex 86, ex

87, ex 88 and 159

6202 19 00

6202 99 00

6203 19 90

6203 29 90

6203 39 90

6203 49 90

6204 19 90

6204 29 90

6204 39 90

6204 49 90

6204 59 90

6204 69 90

6205 90 10

6205 90 90

6206 90 10

6206 90 90

ex 6211 20 00

6211 39 00

6211 49 00

ANNEX II

Annual Community quantitative limits referred to in Article 3 (1)

(The product descriptions of teh caregories listed in this Annex are to be found in Annex I to this Agreement)

Quantitative limits

Categories Units

1995 1996

ex 13(1) 1 000 pieces 616 634

ex 18(1) tonnes 759 793

ex 20(1) tonnes 33 35

ex 24(1) 1 000 pieces 142 149

ex 39(1) tonnes 322 337

115 tonnes 979 1 008

117 tonnes 466 480

118 tonnes 1 018 1 059

120 tonnes 401 417

122 tonnes 137 143

123 tonnes 68 71

124 tonnes 749(2) 779(2)

125 A tonnes 16 16

125 B tonnes 29 31

126 tonnes 16 16

127 A tonnes 21 22

127 B tonnes 10 11

136 A tonnes 320 333

140 tonnes 105 109

145 tonnes 21 22

146 A tonnes 125 130

146 B tonnes 188 196

151 B tonnes 1 933 2 011

156 tonnes 2 588 2 679

157 tonnes 10 250 10 506

159 tonnes 3 950 3 990

160 tonnes 44 45

161 tonnes 13 136 13 465

(1) Categories marked by "ex" cover products other than those of wool or fine animal hairs, cotton or synthetic or artificial textile materials.

(2) This limit does not apply to fibres of polyvinyl alcohol falling within CN code ex 5503 90 90.

TITLE I

CLASSIFICATION

Article 1

1. The competent authorities of the Community undertake to inform China of

any changes in the combined nomenclature (CN) before the date of their entry into force in the Community.

2. The competent authorities of the Community undertake to inform the competent authorities of China 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 CN codes;

(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 fo 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 Agreement affects a category subject to quantitative limits, the Contracting Parties agree to enter into consultation in accordance with the procedures described in Article 14 of the Agreement with a view to honouring the obligation under the second subparagraph of Article 2(1) of the Agreement.

5. In case of divergent opinions between China and the competent Community authorities at the point of entry into the Community on the classification of products covered by the Agreement, classification shall provisionally be based on indications provided by the Community, pending consultations in accordance with Article 14 of the Agreement with a view to reaching agreement on definitive classification of the product concerned.

TITLE II

ORIGIN

Article 2

1. Products originating in China for export to the Community in accordance with the arrangements established by the Agreement shall be accompanied by a certificate of Chinese origin conforming to the model annexed to this Protocol.

2. The certificate of origin shall be certified by the competent Chinese authorities if the products in question can be considered to be products originating in that country within the meaning of the relevant rules in force in the Community.

Article 3

The certificate of origin shall be issued only on application having been made in writting by the exporter or, under the exporter's responsibility, by his authorized representative. The competent Chinese authorities shall ensure that the certificate of origin is properly completed and for this purpose they shall call for any necessary documentary evidence or carry out any check which they consider appropriate.

Article 4

Where different criteria for determining origin are laid down for products falling within the same category the certificates or declarations of origin must contain a sufficiently detailed description of the goods so as to enable the Chinese criterion to be determined, on the basis of which the certificate was issued or the declaration drawn up.

Article 5

The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto cast doubt upon the statements in the certificate.

TITLE III

DOUBLE-CHECKING SYSTEM FOR THE CATEGORIES OF PRODUCTS SUBJECT TO COMMUNITY QUANTITATIVE LIMITS

Section I

Exportation

Article 6

The competent authorities of China shall issue an export licence in respect of all consignments from China of textile products referred to in Annex II, up to the relevant quantitative limits as may be modified by Article 3(3), and Article 8 and 9 of the Agreement, as well as of textile products subject to any definitive or provisional quantitative limits established as a result of the application of Article 7 of the Agreement.

Article 7

1. The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory to which the Treaty establishing the European Community applies.

2. Each export licence must certify inter alia that the quantity of the product in question has been set off against the quantitative limit established for the category of the products concerned and shall only cover of the categories of products subject to quantitative limits. It may be used for one or more consignments of the products in question.

Article 8

The competent authorities of the Community must be informed immediately of the withdrawal or modification of any export licence already issued.

Article 9

1. Exports shall be set off against the quantitative limits established for the year in which the 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 onto the exporting aircraft, vehicle or vessel.

Article 10

The presentation of an export licence, in application of Article 12 hereafter, 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.

Article 12

1. The competent authorities of the Community shall issue the import authorization referred to in Article 11 within five working days of the presentation by the importer of the original of the corresponding export licence.

2. The import authorizations shall be valid for six months from the date of their issue for imports throughout the customs territory to which the Treaty throughout the European Community is applied.

3. The competent authorities of the Community shall cancel the import authorization already issued whenever the corresponding export licence has been withdrawn.

However, if the competent authorities of the Community are notified of the withdrawal or the cancellation of the export licence only after the importation of the products into the Community, the relevant quantitites shall be set off against the quantitative limits established for the category and the quota year concerned.

Article 13

1. If competent authorities of the Community find that the total quantities covered by export licences issued by the competent authorities of China of a particular category in any year exceed the quantitative limit established in accordance with Articles 3 and 7 of the Agreement for that category, as may be modified by Article 3 (3), and Articles 8 and 9 of the Agreement, the said authorities may suspend the further issue of import authorizations. In this event, the competent authorities of the Community shall immediately inform the authorities of China and the special consultation procedure set out in Article 14 of the Agreement shall be initiated forthwith.

2. Exports of products of Chinese origin subject to quantitative limits and not covered by Chinese export licences issued in accordance with the provisions of this Protocol may be refused an import authorization by the competent Community authorities.

However, without prejudice to Article 9 of the Agreement, if the import of such products is allowed into the Community by the competent authorities of the Community, the quantities involved shall not be set off against the appropriate quantitative limits established in Annex II or by virtue of Article 7, without the express agreement of the competent authorities of China.

TITLE IV

FORM AND PRODUCTION OF EXPORT CERTIFICATES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS CONCERNING EXPORTS TO THE COMMUNITY

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 in ink and in printed script.

The documents shall measure 210 x 297 mm. The paper used shall be white

writing paper, sized, not containing mechanical pulp, and weighing not less than 25 g/m2. 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 "copies". Only the original shall be accepted by the competent authorities of the Community as being valid for the purpose of export to the Community in accordance with the provisions of the 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 the exporting country as follows: CN,

- two letters identifying the intended Member State of customs clearance as follows:

AT = Austria

BL = Benelux

DE = Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

PT = Portugal

SE = Sweden

- a one-digit number identifying quota year, as follows:

1 for 1995; 2 for 1996; 3 for 1997 and so on,

- a two-digit number from 01 to 99, identifying the particular issuing office concerned in the exporting country,

- a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance.

Article 15

The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases they must bear the endorsement "délivré a posteriori" or "issued retrospectively".

Article 16

1. In the event of a theft, loss or destruction of an export licence or a certificate of origin the exporter may apply to the competent Chinese authorities 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" or "duplicate".

2. The duplicate shall bear the date of the original export licence or certificate of origin.

TITLE V

ADMINISTRATIVE COOPERATION

Article 17

The Community and China shall cooperate closely in the implementation of the provisions of this Protocol. To this end, contacts and exchanges of views, including on technical matters, shall be facilitated by both Parties.

Article 18

In order to ensure the correct application of this Protocol, the Community and China offer mutual assitance for the checking of the authenticity and the accuracy of export licences and certificates of origin issued or of any declarations made within the terms of this Protocol.

Article 19

China shall transmit to the Commission of the European Community the names and addresses of the authorities competent to issue and verify the export licences and the certificates of origin, together with specimens of the stamps used by these authorities and specimen signatures of officials responsible for signing the export licences. China shall also notify the Community of any change in this information.

Article 20

1. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate or licence or as to the accuracy of the information regarding the true origin of the products in question.

2. In such cases, the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the competent Chinese authorities, giving, where appropriate, the reasons of form or substance which justify an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate or to the licence or their copies. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.

2. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the Community within three months ar the latest. The information communicated shall indicate whether the disputed certificate, licence or declaration, applies to the goods actually exported and whether these goods are eligible for export under the arrangements established by the Agreement. The information shall also include, at the request of the Community, copies of all the documentation necessary to fully determine the facts, and in particular the true origin of the goods.

4. 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 two years by the competent Chinese authorities.

5. 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 competent authorities of the Community or of China indicates or appears to indicate that the provisions of this Agreement

are being circumvented or infringed, the two contracting Parties shall cooperate closely and with the appropriate urgency in order to prevent or remedy any such circumvention or infringement.

2. To this end, the competent authorities of China shall, on their 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 circumvention or infringement of the Agreement. China shall communicate the results of these inquiries to the Community, including any other pertinent information enabling the cause of the circumvention or infringement, including the true origin of the goods, to be determined.

3. By agreement between the Community and China, officials designated by the Community may be present at the inquiries referred to in paragraph 2.

4. In pursuance of the cooperation referred to in paragraph 1, the competent authorities of the Community and China shall exchange any information considered by either contracting Party to be of use in preventing or remedying circumvention or infringement of the provisions of the Agreement. These exchanges may include information on the production of textile products in China and on the trade in the type of products covered by this Agreement between China and third countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of China prior to their importation into the Community. This information may include at the request of the Community copies of all available relevant documentation.

5. Where sufficient evidence shows that the provisions of the Agreement have been circumvented or infringed, the competent authorities of China and the Community may agree to take the measures set out in Article 9(4) of the Agreement, and any other measures as are necessary to prevent a recurrence of such circumvention or infringement.

¹

(Figura 1)

¹ (Figura 2)

PROTOCOL B

Outward processing traffic (OPT)

(Referred to in Article 11 of the Agreement)

1. Without prejudice to paragraph 2, only re-imports into the Community of products affected by the specific quantitative limits laid down in the Annex to this Protocol shall be considered re-imports within the meaning of Article 11 of the Agreement.

2. Re-imports not covered by the Annex to this Protocol may be made subject to specific quantitative limits following consultations in accordance with the procedures set out in Article 14 of the Agreement, provided the products concerned are subject to quantitative limits pursuant to the Agreement.

3. Having regard to the interests of both Parties, the Community may at its discretion, or in response to a request under Article 14 of the Agreement:

(a) examine the possibility of transferring from one category to another, using in advance or carrying over from one year to the next, portions of specific quantitative limits;

(b) consider the possibility of increasing specific quantitative limits.

4. However, the Community may apply automatically the flexibility rules set out in paragraph 3 within the following limits:

(a) transfers between categories may not exceed 20% of the quantity for the category to which the transfer is made:

(b) carry-over of a specific quantitative limit from one year to the next may not exceed 10,5% of the quantity set for the year of actual utilization;

(c) advance use of specific quantitative limits from one year to another may not exceed 7,5% of the quantity set for the year of actual utilization.

5. The Community shall inform China of any measures taken pursuant to the preceding paragraphs.

6. The competent authorities in the Community shall debit the specific quantitative limits referred to in paragraph 1 at the time of issue of the prior authorization required by Council Regulation (EC) No 3036/94 which governs economic outward processing arrangements. A specific quantitative limit shall be debited for the year in which a prior authorization is issued.

7. A certificate of origin made out by the organizations authorized to do so under Chinese law shall be issued, in accordance with Protocol A to the Agreement, for all products covered by this Protocol. This certificate shall bear a reference to the prior authorization mentioned in paragraph 6 as evidence that the processing operation it describes has been carried out in China.

8. The Community shall provide China with the names and addresses of, and specimens of the stamps used by, the competent authorities of the Community which issue the prior authorizations referred to in paragraph 6.

9. Without prejudice to the provisions of paragraphs 1 to 8, China and the Community shall continue consultations with a view to seeking a mutually acceptable solution enabling both Contracting Parties to benefit from the Agreement's provisions on outward processing traffic and so ensure the effective development of trade in textile products between China and the Community.

Annex to Protocol B

(The product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

OPT QUOTAS

COMMUNITY QUANTITATIVE LIMITS

Category Unit Years

p.m. p.m. p.m.

PROTOCOL OF UNDERSTANDING CONCERNING THE IMPLEMENTATION OF ARTICLE 12 OF THE AGREEMENT

For the purpose of implementing Article 12 of the Agreement it is understood by both Parties that if exports of raw materials (products listed in the Annex to this Protocol) are made subject to specific measures, practices or policies (such as licences, guidances, fiscal, customs or others) such measures, practices or policies must not have for consequence that the conditions applying to the Community users become less favorable than those applied to users in China notably in terms of actual access and prices.

Consequently China shall abstain from any such measures, practices or policies that may result in double pricing.

The actual implementation of Article 12 of the Agreement as well as of the provisions of Article 11 of the bilateral Agreement on trade in textile products, shall be subject to periodic reviews. Should difficulties appear consultations will be held without delay with a view to solving the problems by appropriate action.

Annex to the Protocol of Understanding

CN codes Description

5002 00 Raw silk

5003 10 Silk waste

5003 90 " "

5004 00 Silk yarn

5005 00 Yarn spun from silk waste

5007 20 11 Silk fabrics, containing at least 85% of silk

5007 20 21 " "

5007 20 51 " "

5007 90 10 Other fabrics

Agreed Minute

In the context of the Agreement between the European Community and the People's Republic of China the two Parties have agreed as follows:

1. In order to ensure the continuity of trade flows, and by derogation from Article 3 (1) of the Agreement, products listed in Annex II shipped from China after 31 December 1994 and subject, pursuant to Council Regulation (EC) No 517/94, to quantitative restrictions may be imported into the Community in 1995, without having to be accompanied by an export licence issued by the Chinese authorities, upon presentation of an import authorization issued after 31 December 1994 by the competent authorities of the Community pursuant to the provisions of the relevant Community regulation in force before the date of initialling of the present Agreement. Quantities thus imported in 1995 into the Community shall be set off against the quantitative limits established in Annex II to the Agreement and the levels for which export licences may be issued by the Chinese authorities for the year 1995 shall be reduced by equivalent quantities provided that the quantities for which import authorizations issued by the competent authorities of the Community are notified to China as soon as possible and not later than 28 February 1995.

2. Products listed in Annex II, not subject to quantitative restrictions in the Republic of Austria, the Republic of Finland and the Kingdom of Sweden before 1 January 1995, shall not be subject to the quantitative limits referred to in Article 3 (1) of the Agreement and to the double checking system specified in Protocol A provided that they have been shipped from the People's Republic of China to the Community before 1 January 1995, are presented for importation in one of these Member States before 31 March 1995 and are exclusively destined for internal consumption in the concerned acceding country.

3. Taking into account the portion of 1995 quotas already allocated to importers by the competent authorities within the EC at the beginning of the

year, and the consequences of such allocation for the export management of the Agreement in 1995, the parties agree to hold consultations, notably on reconciliation of figures, when necessary to deal with any difficulty and to ensure a cooperative implementation of the Agreement.

For the Delegation For the Delegation

of the People's Republic of China of the European Community