title: RECOMMENDATION FOR A COUNCIL REGULATION concerning the conclusion of the Agreement between the European Economic Community and the People's Republic of Hungary on trade in textile products and of the Agreement in the form of an exchange of letters (submitted by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (85) 219
Vol. 1985/0107
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 ---pagebreak---                                                                           C0M(85) 219 f i n a l
     COMMISSION                                                           Brussels, 2Q Hay 1935
        OF THE
EUROPEAN COMMUNITIES
    General S e c re ta ria t                                        FOR OFFICIAL_USE_ONLY
                                 RiCQMMENDATION_FOR_A_COyNCIL_REGULATION
       concerning the conclusion of the Agreement between the European
      Economic Community and the People's Republic of Hungary on tra d e
            in t e x t i l e products and of the Agreement in the form of an
                                           exchange of l e t t e r s
                                                                                /
                              (submitted by the Commission to the Council)
    COMC85) 219 f i n a l
                                        /
   I  :y
 ---pagebreak---                             EXPLANATORY MEMORANDUM
By Decision of 25 February 1982, the Council authorised the Commission
to open negotiations with Hungary with a view to the conclusion of an
agreement on trade in textile products.
In accordance with that Council Decision, and in consultation with the
Article    113  Committee,      the   Commission     conducted   negotiations   with
Hungary from 1 June to 23 July 1982.
Following the negotiations, a draft Agreement was drawn up.
The draft Agreement:
 (i)   covers   all   MF A   products    of    cotton wool,   fine animal    hair or
       man-made fibres originating in Hungary,
 (ii)  calls   for voluntary restraint, at agreed levels, on exports to
       the Community of certain categories of products covered by the
       Agreement,
 (iii) provides    for    a   consultation      procedure   whereby   voluntary  re
       straint measures may be introduced             for categories     of products
       not   initially subject to limitation,            where certain thresholds
       are exceeded,
(iv)   establishes a double checking system for categories of products
       subject   to   limitation,      and    an  origin   control   system for all
       categories covered by the Agreement,
 (v)   includes a flexibility clause allowing the transfer of a certain
       percentage of the quotas from category to category, or from one
       year to another,
(vi)   includes    an    "anti-surge"      clause allowing    in   certain   circum
       stances   the   suspension      of   flexibility or the introduction of
       temporary limits within quotas,
(vii) includes     an   "anti-fraud"       clause allowing in      certain   circum
       stances   thedebiting against         the   quota of the     true country of
       origin of quantities shipped fraudulently,
i)     includes a price        clause which allows       the Community to request
       consultations     to    deal  with    problems   caused by abnormally     low
                                                                                I
       export   prices    and    under    certain circumstances      temporarily to
       suspend imports,
 ---pagebreak---                                                -  2-
   ^ix)        in  exchange     for    limitation,     contains     an   undertaking   by  the
               Community     not   to   introduce     further    quantitative    restrictions
               under Article XIX of the GATT or Article 3 of the MFA, or to
               measures    having an effect equivalent            to quantitative restric-
               tions.
       Following     the     negotiations,       both    parties     further   concluded    an
       Agreement in the form of an exchange of letters that certain products
       of flax and ramie should be subject to quantitative limits under the
       same   conditions,      and    in  accordance       with   the   same  administrative
       arrangements,     as   the   less   sensitive      products    covered  by the draft
       Agreement on textile trade.
  4.   The Heads of the Delegation initialled the text of the draft Agreement
       and the exchange of letters on flax and ramie products on 23 July 1982
       , having    noted    that   they   correctly represented         the results    of the
       negotiations.
  5.  In order to ensure that the successful implementation of the Agreement
      should not be put at risk and to prevent a flood of exports preceding
      its entry into force,        the Community,       following the conclusion of the
      negotiations, proposed to the third countries that until such time as
      the   Agreement     entered     into   force     both    parties    should   apply  its
      provisions    on    an   autonomous     basis    as    from  1 January     1983.  These
      provisions were put into effect by Council Regulation (EEC) N° 3589/82
      of 23 December 1982        ^ ^ , making the importation into the Community of
      textile products originating          in certain third          countries subject to
     authorisation      and    quantitative       limitation,     as   amended    by  Council
     Regulation (EEC) N° 3762/83 of 19 December 1983 (2).
 5.  The Commission considers that the draft Agreement and the exchange of
     letters on flax and ramie products               represent arrangements which are
     acceptable to the Community. It therefore recommends that the Council:
     (i)     approve the Agreement         and the exchange        of letters by adopting
             the regulation, the draft of which is annexed hereto,
     (xi)   pending approval of the Agreement and the exchange of letters,
            take the      necessary     decisions     in   connection    with   the  signing
            thereof.
(1) OJ N° L 374, 31.12.1982, p.106
(2) OJ N° L 380, 31.12.1983, p.l
 ---pagebreak---            Recommendation for a Council Regulation concerning the
           conclusion of the Agreement between the European
           Economic    Community and the People's Republic of
           Hungary on trade in textile products and of the
           Agreement in the form of an exchange of letters
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 113 thereof,
Having regard to the Recommendation from the Commission,
Whereas the Agreement on trade in textile products and the Agreement in
the   form   of an   exchange   of  letters     negotiated  between   the  European
Economic    Community   and   the  People's      Republic  of   Hungary  should  be
approved,
HAS ADOPTED THIS REGULATION:
                                     A rtic le 1
The Agreements between the European Economic Community and the People's
Republic of Hungary on trade in textile products and the Agreement in the
form   of  an exchange    of  letters    are   hereby  approved   on behalf  of the
Community.
The texts of the agreement are annexed to this Regulation.
                                      A rtic le 2
The President of the Council shall give the notification provided for in
Article 19 of the Agreement         .
                                      A rtic le 3
This   Regulation   shall   enter into force on the third day following its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.
Done at Brussels,
                                                           For the Council
                                                              The President
 (l) The date of entry into force of the Agreement will be published in the
     Official Journal of the European Communities by the Secretariat
     General of the Council.
 ---pagebreak--- AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
     AND THE HUNGARIAN PEOPLE'S REPUBLIC ON
            TRADE IN TEX TILE PRODUCTS
           In itia lle d on, 23 July 1982
 ---pagebreak---                                                           AGREEMENT
    between the European Economic Community and                         the Hungarian People's Republic.
                                          on trade in t e x t i l e products
  THE COUNCIL OF THE EUROPEAN COMMUNITIES,
  of the one p a r t , and
  THE GOVERNMENT OF THE HUNGARIAN PEOPLE'S REPUBLIC ,
  of the other p a r t ,
  DESIRING to promote,                with a view to permanent cooperation and in conditions
  providing the utmost security fo r tra d e ,                     the mutual expansion and o rd erly and
  equitable          development           of      trade       in    te x tile      products       between          the
  European Economic Community ( h e r e in a fte r                re ferred to as 'th e         Community’ ) and
  the Hungarian People's Republic ( h e r e in a fte r re ferred to as 'H ungary'),                             '
 RESOLVED to take the                 fu lle s t   possible      account of       the serious       economic and
 social problems at present                   a f fe c tin g the t e x t i l e industry      in both     importing
 and exporting countries,                  in p a r t ic u la r in order to elim inate the real dangers
 of d is to r tio n of the Community market and of disturbance of trade in Hungarian
 t e x t i le products.
 Having regard to the Arrangement                         regarding    In te rn a tio n a l Trade    in   T e x tile s
 (h e r e in a fte r  referred        to as      the     'Geneva    Arrangement'),          and   in   p a r t ic u la r
 A r t ic le 4 th e re o f, and to the conditions set out in the Protocol extending the
Geneva Arrangement,               together with the conclusions adopted on                     22 December 1981
by the T e x tile s Committee,
Acting in t h e i r capacity as p a rtic ip a n ts in the Geneva Arrangement,
HAVE DECIDED to             conclude th is          Agreement and to th is           end have designated as
t h e i r P le n ip o te n tia rie s :
THE COUNCIL OF THE EUROPEAN COMMUNITIES:
 ---pagebreak--- THE GOVERNMENT OF  THE HUNGARIAN PEOPLE'S REPUBLIC:
WHO HAVE AGREED AS FOLLOWS:
 ---pagebreak---                                                  - 2   -
                                              SECTION 1
                                         Trade arrangements
                                              A rtic le 1
 1.    This Agreement s h a ll apply to trade in t e x t i l e products of cotton,        wool,
 fin e animal h air or man-made f ib r e s o r ig in a tin g in Hungary which are lis t e d in
 Annex I .
2.     The c la s s if ic a t io n of the products covered by t h is Agreement is based on
the nomenclature of the Common Customs T a r i f f and on the Nomenclature of Goods
fo r the External Trade S t a t is t i c s of the Community and the S t a t is t i c s of Trade
between i t s Member States (NIMEXE).
3.     The o rig in of the products covered by t h is Agreement s h a ll be determined
in accordance with the rules in force in the Community.
The procedures fo r control of the o r ig in of the products re ferred to above are
la id down in Protocol A.
 ---pagebreak---                                                         - 3 -
                                                     A rtid e 2
 1-           Hungary    agrees       to    establish       and   maintain      fo r    each        calendar       year
 q u a n tita tiv e  lim its     on i t s    exports to the        Community in accordance with                      the
 ta b le in Annex I I to th is Agreement.
 2.        Subject to the provisions of th is Agreement and without prejudice to the
q u a n tita tiv e   arrangements          applicable       to  products     undergoing           the operations
 re ferred to in A r t ic le 3 ( 4 ) ,         the Community undertakes in respect of products
covered         by   th is     Agreement       to   suspend       the    ap p lic a tio n     of      q u a n tita tiv e
r e s t r ic tio n s on     imports       cu rren tly     in   fo rc e ,   and    not      to      introduce        new
q u a n tita tiv e r e s t r ic tio n s under the General Agreement on T a r i f f s and Trade or
A r t ic le 3 of the Geneva Arrangement.
3.         Measures having equivalent              e f fe c t  to q u a n tita tiv e   r e s t r ic tio n s    on the
importation into the Community of the products covered by th is Agreement s h a ll
be p ro h ib ited .
 ---pagebreak---         I
                                                       - 4 -
                                                    A r t ic le 3
    1.    Exports of cottage industry fa b ric s woven on hand- or foot-operated looms,
    garments or other a r t i c l e s obtained manually from such fa b ric s and t r a d i t i o n a l
    fo lk lo r e  handicraft  products      s h a ll    not     be subject to    q u a n tita tiv e   lim its ,
   provided that these products meet the conditions la id down in Protocol 8.
   2.       Imports into the Community o f t e x t i l e products covered by th is Agreement
   s h a ll   not   be subject   to   the    q u a n tita tiv e    lim its established      in    Annex     II,
   provided that they are declared to be fo r re-export from the Community in the
   same state or a f t e r processing, under the a d m in istrative system of control set
   up fo r th is purpose w ithin the Community.
  However,        the release fo r home use of products imported under the conditions
   referred to above s h a ll       be subject         to the production of an export                licence
  issued by the Hungarian a u t h o r i t i e s , and to proof of o r ig in in accordance with
  the provisions of Protocol A.
  3.         Where the   competent     a u th o r itie s     in  the   Community have      evidence that
  imports of t e x t i l e products have been set o f f                against  a q u a n tita tiv e    l im i t
 established under th is Agreement, but th at the products have subsequently been
 re-exported from the Community in the                      same state or a f t e r   processing,          the
 a u th o ritie s concerned s h a ll inform the Hungarian a u th o r itie s w ithin four weeks
 of the q u a n titie s involved and s h a ll authorize imports of id e n tic a l q u a n titie s
of     the same products,         which s h a ll not be set o f f against             the q u a n tita tiv e
 l im i t established fo r the current year.
4.        Re-imports into the Community of t e x t i l e products lis t e d in Annex I which
have been temporarily exported by the Community and subsequently processed in
Hungary sh a ll not be subject to the q u a n tit a tiv e lim its established under th is
Agreement,         provided they are e ffe c te d in accordance with the regulations on
economic outward processing t r a f f i c in force in the Community.
 ---pagebreak---                                      Article 4
 1.     Advance use of a portion of the quantitative limit established for the
 following year shall be authorized for each category of products up to 5% of
 the quantitative limit for the current year.
 Amounts delivered in advance shall be deducted from the quantitative limits
 established for the following year.
 2.    Carryover to the corresponding quantitative limit for the following year
of amounts not used during any given year shall be authorized up to 5% of the
quantitative limit for the cu rrent’year.
3.     In the case of Group I,  transfers shall be allowed only in the following
 cases:
-   amounts may be transferred between categories 2 and 3 up to 3.5% of the
    quantitative limit for the category to which the transfer is made,
-   amounts may be transferred between categories 4,    5,   6, 7 and 8 up to 3.5%
    of the quantitative limit for the category to which the transfer is made.
Amounts may     be transferred to any category    in Group II or     III  from any
category in Group I, II, or III, up to 5% of the quantitative limit for the
category to which the transfer is made.
4.    The table of equivalence applicable to the transfers referred to above is
given in Annex I to this Agreement.
5.      The increase  in  any given   category of   products   resulting  from the
cumulative application of the provisions in paragraphs 1, 2 and 3 above during
a single year must not exceed the following limits:
 ---pagebreak---                                      - 6 -
-  11% for categories of products in Group I,
-  12.5% for categories of products in Group II or III.
6. The Hungarian authorities must give prior notification to the Community of
any recourse to the provisions of paragraphs 1, 2 and 3 above.
 ---pagebreak---                                     Article 5
1.   Should a textile product covered by this Agreement be imported into the
Community from Hungary at prices which are lower than the range of prices
charged under normal conditions of competition, and for this reason cause or
threaten to cause serious injury to Community producers of the same product, a
like product,    or a directly competing product, the Community may invoke
paragraph 5 of the Protocol of Hungary's accession to GATT, and in that event
the following specific provisions shall be applicable.
2.    Consultations shall be held at the request of the Community in order to
ascertain whether the situation described in paragraph 1 exists. If agreement
is reached as to the existence of such a situation, Hungary shall take the
necessary steps to remedy it.
3.    If the consultations referred to above fail to produce agreement within
thirty days of the Community's request for such consultations,         and .should
consignments of the product in question continue to be sent at prices which
are lower than the range of prices charged under normal conditions of
competition,   and for this reason cause or threaten to cause serious injury to
the Community producers referred to in paragraph 1,         the Community,   while
continuing   consultations  with  a  view   to  reaching  a   mutually  acceptable
solution, may refuse to import the said consignments.          Such action may be
continued only for as long as is strictly necessary to prevent or remedy the
situation.
4.   In critical circumstances,   where imports of specific textile products at
prices   below  the   range  of  prices   charged  under   normal   conditions  of
competition could cause injury which it would be difficult to repair,          the
Community may temporarily refuse to import the said products pending agreement
on a solution in the course of consultations.        Such consultations shall be
opened without delay, and in any case within five days of the request by the
Community,   with a view to reaching a mutually acceptable solution.       The two
Parties shall do their utmost to reach a mutually acceptable solution within
five days of the opening of such consultations.
 ---pagebreak---                                        - 8 -
 5. For the purposes of this Article, in order to determine whether the price
 of a textile product is 'below the range of prices charged under normal
 conditions of competition', it may be compared with:
    the prices of like products at a comparable marketing stage on the market
    of the importing country, and
 -  the prices generally charged for such products sold under normal market
    conditions by other exporting countries on the market of the       importing
    country, and
    the   lowest prices charged for   such products   sold under  normal  market
    conditions by any other exporting country in the three months preceding the
    request for consultations,    and not having led to the adoption of any
   measure by the Community.
6.     Hungary may request consultations at any time with a view to examining
such difficulties as may arise from the application of this Article.
 ---pagebreak---                                      - 9 -
                                  SECTION II
                        Administration of the Agreement
                                   Article 6
1. Exports of textile products covered by this Agreement which are subject to
quantitative limits shall be subject to a double-checking system, the details
of which are specified in Protocol A.
2.    The competent authorities in the Member States are required to issue
import authorizations or documents automatically within five working days of
the submission of a request by an importer in accordance with Protocol A.
The said import authorizations or documents shall be valid for six months.
 ---pagebreak---      1
                                         -  10 -
                                        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.     Where the Community finds, under the system of administrative control set
  up,    that the level of imports of products in a given category    not listed in
  Annex     II originating  in  Hungary  exceeds the following percentage of the.
  preceding year's total imports to th e Community of products in that category:
  -    0.2% for categories of products in Group I,
  -    1.2% for categories of products in Group II,
  -    4% for categories of products in Group III
  it may request thé opening of consultations in accordance with the procedure
 described in Article 15 of this Agreement, with a view to reaching agreement
 on the appropriate restraint level for the products in that category.
 3.      Pending a mutually satisfactory solution,   Hungary undertakes,    from the
 date of notification of the request for consultations,     to suspend or limit at
 the level indicated by the Community exports of the category of products in
 question to the Community or to,the region or regions of the Community market
 specified by the Community.
 The Community shall authorize the importation of products of the said category
 shipped from Hungary before the date on which the request for consultations
was submitted.
4.       Should the Parties be unable in the course of consultations to reach a
satisfactory solution within the period specified in Article 15 of this
Agreement the Community shall have the right to introduce a quantitative limit
at . an annual    level not lower than the level of imports of the category in
question specified in the notification of the request for consultations.
 ---pagebreak---                                         - 11 -
The annual   level so fixed shall be revised upwards after consultations in
accordance   with  the  procedure    referred to   in Article 15      with   a view to
fulfilling the conditions set out in paragraph 2, should the trend of total
imports into the Community of the product in question make this necessary.
5. The limits introduced pursuant to paragraph 2 or A may in no case be lower
than the 1980 level of Community imports of products in that category
originating in Hungary.
6.     In accordance with the procedures set out         in paragraphs      2 and 4, a
quantitative limit may be fixed on a regional basis where imports of a given
product   into any region of the Community exceed            the    following   regional
percentages of the amounts determined as laid down in paragraph 2:
                    Federal Republic of Germany             28.5%
                    Benelux                                 10.5%
                    France                                  18.5%
                    Italy                                   15    %
                    Denmark                                   3   %
                    Ireland                                   1 %
                    United Kingdom                          23.5%
                    Greece                                    2   %
7.   The annual growth rate for the quantitative limits introduced under this
Article shall be determined in accordance with the provisions of Protocol C.
8.     The provisions of this Article shall not apply where the percentages
specified in paragraph 2 have been reached as a result of a fall in total
imports into the Community,      and not as a result of an increase in exports of
products originating in Hungary.
9.   In the event of the provisions of paragraph 2 or 4 being applied, Hungary
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 for the current year.
 ---pagebreak---                                     - 12 -
10.    Up to the date on which the statistics referred to in Article 10(6) are
provided, the provisions of paragraph 2 of this Article shall be applied
provisionally on the basis of the annual statistics previously communicated by
the Community.
11.     The provisions of this Agreement which   concern exports of products
subject to the quantitative limits established in Annex II shall also apply to
products for which quantitative limits are introduced under this Article.
 ---pagebreak---                                      - 13 -
                                    Article 8
1.    Where the Community ascertains that the level of imports in any Agreement
year of a given category of Group I products listed in Annex II exceeds the
level of imports in the preceding year by 10% of the level of the quantitative
limit forthe same category for the current year, it may, in order to prevent
palpable injury to the industry,      request the opening of consultations in
accordance with the procedure described in Article 15 of this Agreement with a
view to reaching agreement on:
-  the suspension, wholly or in part, of the provisions of Article 4
   or
-  a modification   of the   quantitative   limit  set out  in Annex   II by the
   establishment of an ad hoc limit below the existing quantitative limit
-  and the corresponding equitable and quantifiable compensation.
2.    The Community shall authorize the importation of products of the said
category shipped from Hungary before the date on which the request for
consultations was submitted.
Pending a mutually satisfactory solution,     Hungary undertakes for a period of
one month from the date of notification of the request for consultations to
restrain exports of the products in the category concerned to the Community or
to the region or regions of the Community market specified by the Community to
one twelfth of the    level of exports reached during the preceding calendar
year.
3.      A quantitative   limit  modified  as   a  result of  the  application of
paragraph 1 in any year preceding the final Agreement year shall be subject to
a growth rate such as to ensure that the level of the quantitative Limit set
out in Annex II for the final Agreement year is regained in that year.
 ---pagebreak---                                        - 14 -
 4.    Should the Parties be unable in the course of consultations to reach a
 satisfactory solution within the period specified in Article 15 of the
 Agreement, Hungary undertakes, if so requested by the Community:
 -  to suspend the provisions of Article 4 wholly or in part for the category
    concerned, in respect of the Community as a whole or any of its regions
 -  to modify the quantitative limit set out in Annex II for the category
    concerned so as to restrain exports to the Community or any of its regions
    to 125% of the leveL of imports attained during the preceding calendar
    year, or to the level of exports reached on the date on which the request
    for consultations is made plus the level of exports laid down in paragraph
    2 during the consultation period, whichever is the higher.
 In the event of the provisions of this paragraph being applied,    the Community
 undertakes to maintain an offer of equitable and quantifiable compensation.
 The application of the measures provided for in this paragraph is limited to
 the Agreement year in which the measures are taken.
 5.   The provisions of paragraph 1 shall not apply to a given category unless
 the quantitative limit established in Annex II for that category represents at
 least 2.5% of total Community imports during 1980.
6.    The provisions of paragraph 1 shall not apply to a given category unless
the level of imports originating in Hungary during the current year represents
at least 50% of the quantitative limit set out in Annex II for that category
in the Community as a whole or in any region or        regions of the Community
concerned.
7.    In no case may a limit modified in accordance with   paragraph 1 or 4     be
lower than the level of       imports   in 1980 of  products   in  that   category
originating in Hungary.
8.    The provisions of this Article also apply where the level referred to in
paragraph 1 is exceeded in any of the Community's regions.      In this case, the
compensation referred to in paragraphs 1 and 4 will concern the region or
regions of the      Community    indicated   in the   Community's    request   for
consultations.
 ---pagebreak---                                     - 15 -
9.   With a view to Limiting recourse to paragraph 1 of this Article,  Hungary
undertakes to inform the Community of any sharp and substantial increase in
the issue of export licences for any category which is likely to Lead to the
fulfilment of the conditions required for the application of this Article.
 ---pagebreak---                                          - 16 -
                                       Article 9
1.     Hungary and the Community agree to cooperate fully in preventing the
circumvention of this Agreement by transshipment, rerouting.or whatever other
means.
2.      Where information available to the Community as a result of the
investigations carried out in accordance with the procedures set out in
Protocol A constitutes evidence that products of Hungarian origin subject to
quantitative limits established under this Agreement have been transshipped,
rerouted or otherwise imported into the Commur.ity in circumvention of this
Agreement,    the   Community   may   request    the  opening    of     consultations   in
accordance with the procedures described in Article 15 of this Agreement, with
a view to reaching agreement on an equivalent adjustment of the corresponding
quantitative limits established under the Agreement.
3.     Pending the result of the consultations referred to in paragraph 2,
Hungary shall as a precautionary measure, if so requested by the Community,
make the necessary arrangements to ensure that adjustments of quantitative
 limits liable to be agreed following the consultations referred to in
paragraph 2 may be carried out for the quota year in which the request to open
consultations in accordance with paragraph 2 was made,             or for the following
year if the quota for the current year is exhausted,           where clear evidence of
circumvention is provided.
4.     Should the parties be unable in the course of consultations to reach a
satisfactory   solution    within   the   period   specified    in    Article 15   of  the
Agreement,    the Community shall       have the   right,    where clear evidence of
circumvention has been provided,          to deduct    from the     quantitative    limits
established   under   this   Agreement    amounts   equivalent     to   the   products  of
Hungarian origin.
 ---pagebreak---                                      - 17 -
                                   Article 10
1.     Hungary undertakes to supply the Community with precise statistical
information on all export licences issued by the Hungarian authorities for all
categories of textile products subject to the quantitative limits established
under this Agreement.
The Community shall similarly transmit to the Hungarian authorities precise
statistical information on import authorizations or documents issued by the
Community authorities in connection with the export licences and the
certificates issued by Hungary.
2.    The information referred to in paragraph 1 shall,    for all categories of
products,   be transmitted by the end of the second month following the quarter
to which the statistics relate.
3.    For the purposes of applying Article 9, the Community may ask Hungary for
available statistical    information  on   all  exports of  textile   products by
country of destination.
4.   The Community shall transmit to Hungary statistical information on the
products   covered  by the   system of   administrative control   referred to  in
 Article 7(2) and on the products covered by Article 3(2).
 ---pagebreak---                                     - 18 -
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 15 of this Agreement.
6.  For the purpose of applying the provisions of Article 7 and Article 8, the
Community undertakes to provide the Hungarian authorities by 15 April of each
year with the preceding year's statistics on imports of all textile products
covered by this Agreement,    broken down by supplying country and Community
Member State.
 ---pagebreak---                                      - 19 -
                                   Article 11
1.   In the event of a difference of opinion between Hungary and the competent
Community   authorities   at  the  point  of   entry into  the Community   on  the
classification of products covered by this Agreement, classification shall
provisionally be based on     indications provided by the Community, pending
consultations in accordance with Article 15 with a view to reaching agreement
on definitive classification of the products concerned.
2.    The authorities of Hungary shall be informed of any amendment to the
Common Customs Tariff or NIMEXE or any decision made in accordance with the
procedures in force in the Community        relating  to  the   classification  of
products covered by this Agreement.
Amendments to the Common Customs Tariff or NIMEXE or decisions which result in
a modification of the classification or products covered by this Agrèement
shall not have the effect of reducing any quantitative limit established in
Annex II.
The  procedures   for   the  application    of  this paragraph are   set   out  in
Protocol A.
 ---pagebreak---                                     - 20 -
                                  Article 12
Hungary shall endeavour to ensure that exports of textile products covered by
this Agreement are spaced out as evenly as possible over the year, due account
being taken nevertheless of seasonal factors.
However, in the event of denunciation of this Agreement as provided for in
Article 19(3),   the quantitative limits established in Annex II shall be
reduced on a pro rata basis.
 ---pagebreak---                                     - 21 -
                                  Article 13 i
Should there be an excessive concentration of imports on any product belonging
to a category subject to quantitative limits under this Agreement,         the
Community may request consultations in accordance with the procedure specified
in Article 15 with a view to remedying this situation.
 ---pagebreak---                                       - 22 -
                                   Article 14
1.    For the purposes of administering this Agreement,     the limits established
in Annex II shall be broken down by the Community into shares for each of its
Member States.
2.   Portions of the quantitative limits established in Annex II not used in a
Member State of the Community may be allocated to another Member          State in
accordance with the procedures in force in the Community.
The Community undertakes to examine with care and to reply within four weeks
to any request made by Hungary      for such    reallocation.    In the event of
reallocation beinc^ agreed,   the flexibility provisions set out in Article 4
shall continue to be applicable to the levels of the original allocation.
3.     Should additional supplies be required in any given region of the
Community, the Community may, where measures taken pursuant to paragraph 2 are
inadequate to cover those requirements,     authorize the importation of amounts
greater than those stipulated in Annex II.
 ---pagebreak---                                       - 23 -
                                    Article 15
The special consultation procedures referred to in this Agreement shall be
governed by the following rules:
- any     request for consultations shall be notified in writing to the     other
   Party,
- where appropriate, the request for consultations shall be followed within a
    reasonable period (and in any case within 15 days of the notification) by a
    report setting out the circumstances which, in the opinion of the requesting
    Party, justify the submission of such a request,
- the Parties shall enter into consultations within one month of notification
    of    the request at the latest, with a view to          reaching agreement or a
    mutually acceptable conclusion within one month at the latest,
 - the period of one month referred to above for the purpose of reaching
    agreement or a mutually acceptable conclusion may be extended by common
    accord.
 2.     The special   consultation procedures referred to in Article 8 of this
 Agreement shall be governed by the following rules:
 - any request    for consultations shall be notified in writing to the other
     Party,  together with a statement setting out the reasons and circumstances
     which,  in the opinion of the requesting Party,    justify the submission of
     such a request;
 - the Parties shall enter into consultations not later than 15 days following
     the notification of the request, with a view to reaching agreement or a
     mutually acceptable conclusion within a further period of 15 days at the
     latest.
  3.    If necessary,   at the request of either of the Parties,     consultations
  shall be held on any problems arising from the application of this Agreement.
  Any consultations held pursuant to this Agreement shall take place in a spirit
  of cooperation and with a desire to reconcile the differences between the two
  Parties.
 ---pagebreak---                                      -24-
                                  Article 16
The parties recognize and confirm that, subject to the provisions of this
Agreement and without prejudice to their rights and obligations under the
General Agreement on Tariffs and Trade, the conduct of their mutual trade in
the textile products defined in Article 1 shall be governed by the provisions
of the Geneva Arrangement.
 ---pagebreak---                                       -25-
                                   Article 1 7 ,
1.   Hungary and the Community undertake to refrain from discrimination in the
allocation of the export    licences and   import authorizations   or documents
referred to in Protocols A and B.
2.   In implementing this Agreement,    the Contracting Parties shall take care
to maintain the traditional commercial practices and trade flows between the
Community and Hungary.
3.   Should either Party find that the application of this Agreement is
disturbing commercial relations between importers in the Community and
suppliers in Hungary,     consultations shall be entered into promptly,       in
accordance with the procedure specified in Article 15 of this Agreement, With
a view to remedying this situation.
 ---pagebreak---                                      - 26 -
                                  A r t i d e 18
This Agreement shall apply to the territories in which the Treaty establishing
the European Economic Community is applied on the one hand,      and under the
conditions laid down in that Treaty and to the territory of Hungary on the
other hand.
 ---pagebreak---                                       - 27 -
                                   A r t i d e 19
1.    This Agreement shall enter into force on the first day of the month
following the date on which the Contracting Parties notify each other of the
completion of the procedures necessary for this purpose.          It shall be
applicable until 31 December 1986.
2.  This Agreement shall apply with effect from 1 January 1983.
3.    Either Party may at any time propose amendments to this Agreement or
denounce it, provided that at least 90 days' notice is given.    In the latter
event the Agreement shall come to an end on the expiry of the period of
notice.
A.    The Annexes and Protocols to this Agreement and the exchanges of letters
shall form an integral part thereof.
 ---pagebreak---                                      - 28 -
                                  A r t i d e 20
This Agreement shall be drawn up in two copies in the Danish,  Dutch, English,
French,  German,  Greek,  Italian and Hungarian languages, each of those texts
being equally authentic.
 ---pagebreak--- A N N E X I ---pagebreak---                                                                      -3c?-
                                                     GROUP I a
                                                                                Te M . c of equivalence
                                  NIMEXE
Ot'sery      CCT heading No         cede                   Description                                     g/pi ece
                                   (1982)                                         p ie c e s /k g
                                                                                1
   1     55.03                  55.05-13:      Cotton yam, not put up for retail
                                19;21;25:      sale
                                27; 29; 33;                                                          11
                                35:37:41;
                                45; 46; 48;
                                52;58; 61;
                               65;67;69;                                                             I
                                72; 78; 92;
                               98
        33.09                                 Other »voven fabrics of cotton:
                              55.09-03 ;          Woven fabrics of coiion,
                              04 ; 05 ; 06 ;      other than gauze, terry fa
                              07 ; 08 ; 09 ;      brics, narrow woven fabrics,
                              10; 12; ! 3 ;       pile fabrics, chenille fabrics,
                              14; 15; 16;         tulle and other net fabrics
                              17; 19; 21 ;
                              29 ; 32 ; 34 ;
                              35 ; 37 ; 38 ;
                             39 ; 41 ; 49 ;
                             51 ; 52 ; 53 ;
                             54 ; 55 ; 56 ;
                             57 ; 59; 61 ;
                             63 ; 64 ; 65 ;
                             66 ; 67 ; 68 ;
                             69 ; 70 ; 71 ;
                             72 ; 73; 74 ;
                             75; 76 ; 77 ;
                             78 ; 79 ; 80 ;
                             8 !; 82 ; 83 ;
                             84 ; 86 ; 90 ;
                            91 ; 92 ; 93 ;
                            98 ; 99
                            55.09-06;        a) Of which other than un
                            07; 08; 51;          bleached or bleached
                            52; 53;54;
                            55; 56;57;
                            59; 61; 63;
                            64;65;66;
                            67;70;71;
                            80; 81; 82;
                            83; 84;86;
                            90; 91; 92;
                            93;93;99
 ---pagebreak---                     v :mexe
    CCT heading No                          Crscripioi
                      <IX2)
                               Woven fabrics of man-made
56.07                          fibres (discontinuous or waste);
A
                               A. Of synthetic textile fibres:
                   56 07-01;        Woven fabrics of synthetic
                   04;0J:07;        fibres    (discontinuous    or
                   03;10;12;        waste) other than narrow
                   15; 19; 20;      woven fabrics, pile fabrics
                   22; 25;29;       (including terry fabrics) and
                   30; 31:35;       chenille fabrics
 •
                   38;39;40;
                   41; 43;45;
                   46; 47;49
                     56.07-01;    a) Of which other than un-
                    05; 07; 08      . bleached or bleached
                     12;15; 19
                    22; 25;29
                    3!:35;38
                    <0;41;43
                    46;47; 49
 ---pagebreak---                                                                        -           -
                                              GROUP I B
                                                                                Title of équivalence
                                mimrxe                     Description
                                  cri·                                               oicccc/ko          ©/piece
                                 (1932)
                                             S 2 5 , r S tS S c « rubbtnrcd'
    69.04                                                                              6.48              154
       I.
        U   n)                 60.04-19:
            b)
            c>  ,
        IV b) » *·)
                  dd)
                               20.22:23;
                               24;26:41;
                               S0;58;7l;
                                                 necked jumpers ^nd p '
                                                 overs, undervests and the bke.
                2 ee)
             d) 1 aa)
                   dd)
                               79; 89 .
                                                  SSj^aS
                                                   T shirts'and lightweight fine
                2 dd)                                    roll polo or turtle necV.ed
                                                   • Oners’ and pullovers, of re*
                                                   S S d textile fibres, other
                                                    than babies' garments
                                               Outer garments and other a-~t,5C*” ·                      221
      69.05                                    knitted or crocheted, not elastic            . „ l
                                               or rubberized :
      A U b) 4bb) U aaa)
                         bbb)                  A. Outer garments and clothing
                         ccc)                        accessories:
                         ddd)                        Jerseys, pullovers, slip-overs,
                         eee)    60.05-01;
                      22 bbb)                        waistcoats, twmsets, c a r a
                                  31; 33;34;         vans bed-jackets and jum
                         ccc)     35:36:39:          pers,’knitted or crocheted, not
                         ddd)     40;41;42;
                         eee)                        elastic or rubberized, of wool,
                                  43                 of cotton or of man-made tex
                          ffi)
                                                     tile fibres
                                               Men’s and boys’ outer garments:
      61.01
      B V d )l
               2                                                                          1.76           568
               3
            «) 1
               2
                3
                                              Women's, girls' and infants' otter
     6102
     D lie ) 6 aa)                            garments:
                 bb)                          B. Other:
                 cc)
                                61.01-62;         Men’s and boys’ »oven
                                64;66;72;         breeches, shorts and trousers
                                74; 76            (including slacks); womens,
                                                  girls' and infants' woven
                               61.02-66;          trousers and slacks, of wool,
                               68; 72             of cotton or of man-made tex
                                                  tile fibres
Chi
                                                                                \A
 ---pagebreak---                                                                      Table of equivalence
                HIMF.XC
                  fM«
                 (1C32)                                          pieces/kg          g/piece
                           Outer garments and other articles,
60.05                      knitted or crocheted, not elastic
A U b) 4 m ) 22
             33            or rubberized:
             44            A. Outer garments and clothing
             55                accessories;
                               II. Other
                           Women's, girls’ and infants’ outer
61.02
B 1U ) 7 bb)               garments:
          cc)               B. Other:
          dd)
                60.05-22;       Blouses and shirt-blouses,
                23; 24;25       knitted, crocheted (not clastic
                                or rubberized), or woven, for
                61.02-78;       women, girls and infants, of
                82; 84          wool, of cotton or of man
                                made textile fibres
                             Men’s and boy's under garments,
 61.03                       including collars, shirt fronts and
  A                          cuffs:
                 61.03-11;       Men's and boys’ shirts,
                 15; 19          woven, of wool, o f cotton or
                                 of man-made textile fibres
 ---pagebreak---                                                                     3q
                                                CROUP SI                                                           6
                                                                   A
                                                                       ------ a
                                                                              1        T a e l* of e c u iv a le -c e
                                 c~''a                 Description
e n tity    OCT heading N ·                                                     p ie c e s /k g              g /p ic c o
                                (1932)
         55.C3                          Terry towelling »nd similar terry
                                        fabrics of cotton:
         62.02                          Ded linen, table linen, toilet linen
         Q ill·)                        and kitchen linen; curtains and
                                        other furnishing articles;
                                         B. Other:
                             55.08-10;        Woven cotton terry fabrics;
                             30;50;80        toilet and kitchen linen of
                                              woven cotton terry fabrics
                             62.02-7 i
    20   62.02                          Bed linen, table linen, toilet linen
         Q la)                          and kitchen linen; curtains and
                                        other furnishing articles:
             e)
                                        B. Other:
                            62.02-12;        Bed linen, woven
                            13; 19
                                        Yarn of man-made fibres (discon
    7.2  56.05                          tinuous or waste), not put up for
         A                              retail sale:
                                        A. Of synthetic textile fibres:
                            56.05-03;        Yarn of discontinuous or
                            05; 07; 09       waste synthetic fibres, not put
                            U; 13; 15        up for retail sale
                            19;21;23
                            25;23:32
                            34; 36;33
                            39;42; 44
                            45; 46;47
                            56.05-21;   a) Of which acrylic
                            23; 25; 28;
                            32;34;36
      23  56.05                           Yarn of man-made fibres (discon
          0                               tinuous or waste), not put up for
                                          retail sale:
                                          B. Of regenerated textile fibres:
                              56.05-51:        Yarn of discontinuous or
                              55;61;65        waste regenerated fibres, not
                              71; 75;81       put up for retail sale
                              85:91:95
                              99
                                                                                I  A
 ---pagebreak---                                                          3r-
                                              D;—ription
                                                                       g/piece
                                 Woven pile fabrics and chenille
                                 fabrics (ether than terry towcl.ir.-j
                                 or similar teny fabrics c f cctfcn
                                 falling within heading No 5>.v4
                                 and fabrics falling within heading
                                 No-58.05):
                   58.04-07;          Woven pile fabrics and chen
                   11; 15; 18         ille fabrics (other.than terry
                   41; 43; 45         fabrics of cotton and narrow
                   61; 63;67          woven fabrics), of wool, of
                   69; 71;75          cotton or of man-made textile
                   77; 78              fibres
                58.04-63        a) of which cotton corduroy
                                  Bed linen, table linen, toilet linen
39 67.02                          and kitchen linen; curtains and
   D U a)                         other furnishing articles:
           c)
   . . ill a) 2                    B. Other:
           c)                           Woven table linen, toilet and
                    62.02-40;
                    42; 44; 46;         kitchen linen, other than ol
                    51; 59; 65;         cotton terry fabric
                    72;74;77
                                                                            lA
 ---pagebreak---                                                                                ~ 36
                                                                         GROUP H          B
                                                                                Table of equivalence
      >                                               NtMEXS I
                                                        cd«                        Pc-cnrtion
                                                                                1 piecco/k9           g/pieee
           Ce·.                                        (i;-2>
                                                                                1
       · ■—     -—
                                                                ' 'i_________________________ ____d
                 12        0 .0 3                                    Stockings, under stockings, socks,                             <1
                           A                                         enkic-soeks, soclccttcs and the ·          24-3 pair*
>■ *                       o r                                       like, knitted or crocheted, not
                               U b)                                  elastic or rubberized:                                I
                           c
                           D                        60.03-1!;             Other (fun women’» stockings
                                                    19; 20; 27;          of synthetic textile fibres
  'i                                                30;90 .
                                                  r               1
                                            __   i                i
‘..  »*     ‘     " *"
                       -1-
                                                                                59
                                                                     Under garments, knitted or cro                 17
                13         0 .0 4                                    cheted, not clastic or rubberized.
                           Q iV b) 1 ec)
                                      2dd)                                Men's and boy's underpants
                                                    60.04-48;             and briefs, women's, girls
                                   d) 1 cc)         56;75; 85
                                      2 ce)                               and infants' (other than ba
                                                                          bies') knickers and bne.s,
                                                                          knitted or crocheted, not elas
                                                                          tic or rubberized, of cotton or
                                                                          sythetic textile fibres
                                                                                . A.
                                                                      Men’s and boys’ outer garments:                JO
               HA           6!.01
                            A Ï                      61.01-01              Men's and boys’ coats of im
                                                                           pregnated, coated, covered nr
                                                                           laminated woven fabricJ a i l
                                                                           ing within heading No 59.0a,
                                                                           59 11 or 59.12
                                                                       Men's and boys’ outer garments:             0-72              I 389
                MB          <51.01
                            3 Vb) I                  61.0M1;               Men’s and boys’ woven over
                                     2               42:44; 46;            coats. raincoats and other
                                     3                                     coats, cloaks and capes other
                                                     47                    than those of category 14 A,
                                                                           of wool, of cotton or of man
                                                                           made textile fibres
                                                                       Women s, girls' and infants' outer                             909
                15 A        61.02                                     garments:
                            0 1 a)
                                                                       B. Other:
                                                     61.02-05               Women’s, girls' and inianie
                                                                            coats of impregnated, coated,
                                                                            covered or laminated woven
                                                                            fabric falling within heading
              1                                                             No 59.08, 59.11 or 59.12
                !JB         61.02                                      Women's, girls' and infants’ outer           0-84            J J90
                            0 lie ) 1 as)                             garments:
                                        bb)
                                        ce)                            B. Other:
                                     2 ea)           61.02-31;             Women’s, girls' and infants’
                                        bb)          32:33:35;             woven overcoats, raincoats
                                       cc)           36;37;39;             and other coats, cloaks and
                                                     40                    capes; jackets and blazers,
                                                                           other than garments of cate
                                                                          gory 15 A, of wool, of cotton
                                                                          or of man-made textile fibres
V? C yn_                                       .                                                                                M
 ---pagebreak---                                                                                T a b le o f e q u iv a le n c e
                                                          NIMCXE                       Description
                                CCT heading N ·                                                                p ie c e s/k g
                                                           <U32)
                        1
                                                                        Men's and boys’ outer garments:                                            jiso
               16        61.01                                                                                o-co
                         D Ve) l                                            Men’s and boys' woven suits
                                         2              61.01-51;
                                                        54; 57              (including coordinate suits
                                         3                                  consisting of two or three
       f,*..                                                                pieces, which are ordered,
                                                                            packed, consigned and nor
                                                                            mally sold together) of wool,
                                                                            of cotton or of man-made tex
                                                                            tile fibres, excluding ski suits
|-    p£-* · ■               ....... — -          “ —        ... ....
   S'
S"
1                                                                                700
                          61.01                                          Men’s and boys’ outer garments:
               17
      · ' '               B V a) i                                           Men's and boys’ woven jack
                                          2             61.01-34;
                                                        36; 37               ets (excluding waister jackets)
                                          3                                  and blazers of wool, of cotton
                                                                             or of man-made textile fibres
                         61.03                                          Men’s and boys’ under garment.,,
               18                                                       including collars, shirt fronts and
                         D
                         C                                              cuffs:
                                                        61.03-51;           Men's and boys’ woven under
                                                        55;59;81 ;          garments other than shirts, of
                                                        85; 89              wool, of cotton or of man-
                                                                            made texile fibres               |
                 19         61.03                                          Handkerchiefs:
                             A                                             A. Of woven cotton fabric, of a
                                                          61.05-20
                                                                                value of more than 15 ECU
                                                                                kg net weight
                                                                                59                            17
                            B I                                           B. Other:
                                  III
                                                          61.05-30;            Handkerchiefs       of   woven
                                                          99                   fabric, of a value of not more
                                                                               than 15 ECU /kgnet weight
                                                                      1
                                        _ _ _ _ _ _
                                                                                23         43S
                                                                          Men's and boys' outer garments:
                 21         61.01
                            B IV                                          Women s, girls'and infants outer j
                            61.02                                         garments:
                            D lid )
                                                                          B. Other:
                                                      '                         Parkas; anoraks, windchea
                                                          61.01-29;            ters, waister jackets and the
                                                          31; 32               like, woven, of wool, o f cot
                                                                               ton or of man-made textile
                                                          61.02-25:
                                                          26; 28                fibres
                  — ...               .. .
 ---pagebreak---                                                                                ivale~.ce
                                       M M e r.E                                                                          g/picce
                                          code
                                                                   D 'scrtpiion                pi ec e s / k D
                   CCT h e ed in j No    IIC3Z)
C e t '^ r y
                                                      Under garments, knitted or cro
      24        eo.04·                                cheted, not elastic o r rubberized:
                D IV b) I bb)
                        d) I bb)      60.04-47:           Men’s and boys' pyjamas,
                                                          knitted or crocheted, of cot
                                      73                  ton or of synthetic textile                                      257
                                                          fibres                                      3,9
                 B IV b) 2 aa)
                               bb)                         Women's, girls' and infants
                                      60.04-51;            (other than babies') knitted or
                         d) 2 aa)
                               bb)     53; 81;83           crocheted pyjamas and night
                                                           dresses, of cotton or synthetic
                                                           fibres·
                                                       Outer garments and other articles,
        2«       60.05                                 knitted or crocheted, not elastic
                  A 11 b) 4cc) U                       or rubberized:
                                   22
                                   33                  A. Outer garments and clothing
                                   44                       accessories:
                                                            II. Other
                                                                                . 323
                                                       Women's, girls' and infants’ outer                      3S
                  61.02                                garments:
                  B II«) 4bb)
                             cc)                       B. Other:
                             dd)
                             ee)        60.05-45;           Women's, girls' and infants’
                                        46; 47; 48          (other than babies') woven
                                                            and knitted or crocheted
                                        61.02-48;           dresses of wool, of cotton or
                                        52; 53; 54          of man-made textile fibres
                                                         Outer garments and othw articles                       2-6        385
            27      60.05                                knitted or crocheted, not elastic
                    A lib ) 4dd)                         or rubberized:
                                                          A. Outer garments and clothing
                                                               accessories;
                                                               II. Other
                                                          Women's, girls' and infants' outer
                    61.02'                                garments:
                    B II e) 5 aa)
                                bb)                       B. Other:
                                cc)                            Women's, girls' and infants'
                                           60.05-51;           (other than babies) woven
                                           52; 54; 58          and knitted or crocheted
                                                               skins, including divided skirts
                                           61.02-57;
                                           53; 62
                                                          Outer garments and other articles,                    t-61        620
             28      6005                                 knitted or ..rochcted, not elastic
                     A Mb) 4 ee)
                                                          or rubberize 1:
                                                          A. Outer garments and clothing
                                                               accessories:
                                                               II. Other:
                                           60.05-61;               Knitted      or crocheted
                                           62; 64                  trousers (except shorts)
                                                                   other than babies'
 ---pagebreak---                                                                    -3°)
                                    Women's, girls' and infants' outer
23   61.02                          garments:
     D Ile ) 3 as)
               fcb)
               ce)
                                    B. Other:                                j
                    6!.02-42;              Women's, girls' and infants’ J
                    43; 44                 (oih-.r than babies') woven
                                           suit« ami costumes (including
                                           coordinate suits consisting of
                                           two or three pieces which are
                                           oudercd packed, consigned
                                            a n d ncmaily sold together),
                                   I        i- .f wool, of cotton or of man
                                            made textile fibres, excluding
                                            ski suits
                    --------- T - ............................... "      ·
30 A  61.04                        J Women's, girls' and infants’ un-
      n i                             der garments.
                      61.04-11;                Women’s, girls' and infants’
                      13. 13                  woven pypuias and night
                                              dresses, of wool, of cotton or
                                              of man-made textile fibres
                                      Women's, girls' and infants' un
30 D  61.04                           dergarments:
      B II
                      61.04-91;
                                              Women's, girls' and Infants
                                              (other than babies') woven
                      93; 98               . under garments, other than
                                              pyjamas and night dresses, o!
                                              wool, of cotton or of man
                                               made textile fibres
                                       Corsets corset-belts, suspender-         t8-2
                                        elastic:
                                                 Brassières, woven, knitted or
                       61.09-50          . crocheted
                                       Under garments, knitted or cro
  68   60.04                           cheted. not clastic or rubucrized.
       A 1
           11  a)                                Babies' garments, girls' gar_
               b)                                merits up to and including
               c)                                conwncru.il size 86.
           m   a)
               b)
               c)                                Babies' under garments of
               d)      60.04-02;                 knitted o r crocheted fabrics,
                       03:04 06;                 not elastic or rubberized
                       07:03 10;
                        11:12   14
 ---pagebreak---                                                                                11
                                                                                Table of equivalence
                            nsm exs                                     Description
                                C~\'
C .n":ry                       (i?32)                                                                        picccs/Hg          g/ pi rce
                          —....
                                                                                1-67    É00
     73  60.C5                                  O u t e r g a r m e n t s a n d o t h e r ar ticles,
         A lib ) 3                              k n i t t e d o r c r o c h e t e d , n o t elastic
                                                or rubberized:
                                                A. O u t e r g a r m e n t s a n d c l o t h i n g
                                                       ac c e ss o rie s :
                                                        II. O t h e r :
                                                                  T r a c!'. su its o f k n i t t e d o r
                            60.05-16;                             c r o c h r t fu I fabric, n o t c l a s
                            »7; 19                                tic o r i u b b c r U c d , c l w o o l,
                                                                  o f cotton or of m a n -m ad e
                                                                   textile fibres
                                                  M e n 's a n d boys’ outer garm ents
      76  61.01
           D I
          61,02                                   VAnncfi's, girls’ a n d i n f a n t s ’ o u t «
           n iu)
                                                  is. O t h e r :
                             61.01-         13;             M e n 's a n d b o y s ’ w o v e n i n
                             15; 17; 19                    d u str ia l         arid      occupational
                                                           d o i h m g ; w o m e n 's , girls' a n d
                             61.02-         12;            infants'               w oven         aprons,
                              14                           s m o c k o v eralls arid o t h e r i n
                                                           dustrial            and       occupational
                                                           c l o t h i n g ( w h e t h e r o r n o t a ls o
                                                           su i t a b l e for d o m e s t i c use), o f
                                                           w o o l, o f c o t t o n o r o f m a n
                                                           m a d e textile fibres
                                                 M e n 's a n d b o y s ’ o u t e r g a r m e n t s :
      78  61.01
          A il                                            M e n ’s a n d b o y s ’ w o v e n b a t h
          B HI              61.01-09;
                            2 4 ;2 5 ;2 6 ;               ro b es, d r ess in g g o w n s , s m o k
              V   0 I                                     in g j a c k e t s a n d s i m i l a r i n d o o r
                            8 1 ;9 2 :9 5 ;
                  8)»       96                            wear, ski s u n s c o n s i s t i n g o f
                    2                                     t w o or three p ie c e s a n d o t h e r
                    3                                    ou ter garm ents, except gar
                                                         m e n t s o f c a t e g o r i e s 6, 14 A,
                                                          14 B, 16, 17, 21, 76 a n d 79. o f
                                                         w o o l, o f c o t t o n o r o f m a n
                                                         m a d e tex tile fibre s
                                                W o m e n 's , girls'               and    outer gar
    81   61.02
         B I b)                                 m ents
             lie)                               B.      O th e r :
                e) 8 a a)
                   9 aa)   61. 02-07;                   W o m e n ’s, g irls’ a n d i n f a n t s ’
                     bb)   2 2 ;2 3 .2 4 ;              w o v e n b a t h ro b e s, d r e s s i n g
                     cc)   85; 9 0 ; 9 1 ;              tow;]·,, b e d ja c k e t s a n d s im ila r
                           92                           i n d o o r w ear a n d o u t e r g a r
                                                        m ents, except garm en ts o f
                                                        c a t e g o r i e s 6, 7, 15 A, 15 B, 21,
                                                        26, 2 7, 29, 76, 79 a n d 80. o f
                                                       w o o l, o f c o t t o n o r o f m a n
                                                       m a d e textile fibres                                                               :ti
 ---pagebreak---                                                         -        v y    ■ -                                        .            ___
                                                                                7 « a b le o f   e q u iv a le n c e
                                   NIMEXS
               CCT fcrsdiRj No        co-te                 DcuripiioB
  Cr.ir~3ty                                                                           p ie c e s /k O                    o /p ic c e
                                                                                — r·*—                     ,
                                              Ouirr garments and other articles,                            i
■    83
            A II a)                           knitted or crocheted, not clastic
                 b) 4 hh) II                  or rubberized:
                            22
                            33
                                              K.  Out;: g3rmer.if ind clothin3
                            /*4                   accessories:
                      ijij) 11                    U. Other:                      ;                          i
                      kk) II
                      it) il    60.05-04;'            Outer parments, knitted                               •
                            22  7 6 ;7 7 ;78;         or crocheted, not elastic                             1
                            33  70; 81;85;            or rubberized, other than
                            44  8 8 ;C9;90;           Garments of categories 5,
                                91                    7, 26, 27, 28,71,72, 73.74
                                                      and 75, of wool, of cotton
                                                      or of man-made textile
                                                      fibres
                                                                                1
 ---pagebreak---                                               GROUP i n A                                                                  13
                       nsm exE                                Dncriprion
       CCT tra in s N®
                          c-d«                                                                      i p i ec es/ kg ' g/piecc
                         (ISS2)
                                                                                - L
33  51.04
                                         W o v e n fab rics o f m an -n K id e
                                         fibres         (continuous),              including
                                                                                a
    A Ilia)                              w o v e n fab rics o f m o n o f il o r strip
                                          fallin g w ith in h e a d i n g N o 51X!
                                          o r 51.02:
                                          A.     W o v e n fab rics           o f s y n t h e ti c
                                                 textile fibres:
                                          S ack s a n d b a g s , o f a k i n d u s e d
    62.03                                  for t h e p a c k i n g o f g o o d s :
    S II b ) 1
                                         1
                                            8. Of other textile              m aterials:
                                            H. Other:
                                                         W o v e n fab rics o f strio or
                       55.04-06
                                                         th e like o f p o l y e t h y l e n e or
                                                         p o l y p r o p y le n e , less t h a n
                       62.03-96
                                                         3 in w i d e ; w o v e n sa ck s oi
                                                         s u c h strip o r th e like
                                             W oven          fab rics o f m a n - m a d e
                                             fibres         (continuous),            including
                                             w o v e n fab rics o f m o n o f il o r strip
                                             fallin g w ith in h e a d i n g N o 51.01
                                             o r 5 1.02:
                                             A.    W o v e n fab rics             of  sy n t h e ti c
                                                   textile fibres:
                                                   W o v e n fab rics o f s n i p o r t h e
                                                   like o f p o l y e t h y l e n e o r p o l y
                                                   p r o p y l e n e , 3 m o r m o r e w id e
                                             W oven          fab rics o f m a n - m a d e
 33  51.04                                   fibres        (continuous),             including
     A IV                                    w o v e n fab rics o f m o n o f i l o r strip
                                             fallin g w ith in h e a d i n g N o 5I.UI
                                             o r 51.02:
                                             A. W o v e n f a b ric s            of   sy n t h e ti c
                                                   tex tile fibres:
                                                   W o v e n fab rics o f sy n t h e ti c
                        51 04-10;                  tex tile        fibres         (continuous)
                        11 1 3 ; 1 5 ;
                                                   o t h e r t h a n t h o s e fo r tyres a n d
                        17 1 8 ; 2 1 ;             those c o n ta in in g elastom eric
                        23 2 5 ; 2 7 ;
                        28 3 2 : 3 4 ;             yarn:
                        36 4 1 ; 48
                         51.04-10;
                                                    a)     Of which other than un
                         15; 1 7 ; 1 8 ;
                                                           bleached or bleached
                         2 3 ,2 5 ;2 7 ;
                         28; 3 2 ; 3 4 ;
                         4 1 ; 48
 ---pagebreak---                                                                                1/.
                                                                                T a b le of e q u iv a le n c e
                              NJMFXi
          CCTfcstdinjN·         crdt                    Deicription
                                                                                g/ pi ece
                               (1932)                                           pieces/fcg
 35  51.04                               Woven fabrics of man-made
     B III                               fibres (continuous), including
                                         woven fabrics of monofil or strip
                                         falling within heading No 51.01
                                         or 51.02:
                                         B. Woven fabrics of regenerated
                                              textiie fibies:
                         5) 04-55:           Woven fabrics of regenerated
                         5ft: 58; 62         textile fibres (continuous)
                         64; 66; 72          other than those for tyres and
                         74; 7 6 ; 8 1       those containing elastomeric
                         89.93; 94           yam:
                         97:93
                         51.04-55;           a) Of which ether than un
                         38;6 2;64;              bleached or bleached
                         72; 74; 76;
                         8 1 ;89;94;
                         97; S3
37       1                             Woven fabnes of man-made
                                       fibres (discontinuous or waste):
                                       B. Of regenerated textile fibres:
                         5607-50:           Woven fabrics of regenerated
                        51; 55;56;          textile fibres (discontinuous
                        59; 60.61;         or waste) ciher than narrow
                        65; 67;68;         woven fabrics, pile fabrics
                        69; 70;71;         (including terry fabrics) and
                        72; 73;74;         chenille fabrics:
                        77; 78; 82;
                        83;84;87
                         56.07-50;           s) Of which other than un
                         5 5;56;59                bleached or bleached
                         6 1 ;65;67
                         69;70;71
                         73; 74; 77
                         78; 83; 84
                         87
                                . ..   .
38 A 60.01                               Knitted or crocheted fabric, not
     Bib)    3                           elastic or rubberized;
                                         B. Of man-made fibres:
                          60.01-40            Knitted or crocheted syn-
                                              thetic curtain fabrics inciud-
                                              ing net curtain fabric
3SB  62.02                               Bed linen, table linen, toilet linen
     A II                                and kitchen linen; curtains and
                                         other furnishing articles:
                          62.02-09       A. Net curtains                      J
                                                                                l A
 ---pagebreak---                                                                                T a b le o f e q u iv a le n c e
                          NIMEXE                      tjæ ription                                            g /p ie c e
          CCTI»e*Si»sN·      C'd*                                                pieces/fco
                                      Hed linen, table linen, toilet linen
*0    62.02                           and kitchen linen, curtain* *nd
      0 IV «)     .                   other furnishing article*:
              e)
                                      B. Other:
                        62.02-83;          Woven curtains (other than
                        85; 89             net curtains) and furnishing
                                           articles, of wool, of cotton or
                                           of man-made textile fibres
                                       Yam of man made fibres (contin
 41    ex 31.01                        uous). not put up for retail sale:      j
       A
                                       A.    Yarn of        synthetic  textile ,
                                             fibres:
                         51.01-05:           Yarn of synthetic textile;
                         06; 07              fibres (continuous), not put ;
                         C9; 10              up for retail sale, other than
                         2 0 ; 22            non-textured       single   yarn
                         27; 29              untwisted or with a twist of
                         35:36               not more than 50 turns per
                         39;40;45            metre
                                         Yarn of man-made fibres (contin
   42    ex 31.01                        uous). not put up for retail sale:
                                         B. Yarn of regenerated textile
                                               fibres:
                           51.01-50;           Yam of regenerated textih
                           61; 67;68:          fibres (continuous), not pu
                           71:77:78            up for retail sale, other lhar
                           80                  single yarn of viscose rayor
                                               untwisted or with a twist o
                                               not more than 250 turns pe
                                               metre and single non-texture<
                                               yarn of any acetate
                        51.03-10;      Yarn of man-made fibres (contin
 43   51.03
                        20            uous), put up for retail sale
       51.04                           Woven fabrics of man-made
44                                     fibres (continuous), including
      A II
                                       woven fabrics of monofil or strip
                                       falling within heading No 51.01
                                      or 51.02:
                                      A.    Woven fabrics of synthetic
                                            textile fibres:
                        51.04-05           Woven fabrics of synthetic
                                           textile fibres (continuous),
                                           containing elastomeric yarn
 ---pagebreak---                                    NIMEXB                      Description
            . CCT ter«dif*$ No        cede                                            pieces/kg g/pi ece
                                     CC52J
    45     51.01                                  Woven fabrics of rhan-made
           0 II                                   fibres (continuous), including
                                                  woven fairies of monofi! or strip
                                                  falling within heading NoSl.Ol
                                                  or 51.02:
                                                  B. Woven fabrics of regenerated
                                                       textile fibres:
                                   51.04-54            Woven fabrics of regenerated
                                                       textile fibres (continuous),
                                                       containing elastomeric yam
    46  ■ ex 53.05                                Sheep's or lamps’ wool or other
                                                  animal hair (fine or coarse), card
                                                  ed or combed:
                                   53.05-10; .         Carded or combed sheep’s or
                                   22;29;32;           lambs’ woo! or other fine ani
                                   39                  mal hair
   47     53.06                                  Yarn of carded sheep’s or lambs'
                                                 wool (woollen yarn), not put up
                                                 for retail sale:
         53.08                                  Yam of fine animal hair (carded
         A
                                                or combed), not pul up for retail
                                                sale:
                                  53.06-21;          Yarn of carded sheep’* or
                                  25:31;35;          lambs’ wool (woollen yam) or
                                  5I:55;7I;          of carded fine animal hair,
                                 75                  not put up for retail sale
                                 53.03-11;
                                 15
 48     53.07                                  Yam of combed sheep's or lambs’
                                               wool (worsted yarn), not put up
                                               for retail sale:
        53.08                                  Yam of fine animal hair (carded
        0                                     or combed), not put up for retail
                                              sale;
                                53.07- 02;         Yam of combed sheep's or
                                08; 12; 18;        lambs’ wool (worsted y; rn) cr
                                30;40;51;          of combed fine animal hair,
                                59; 81;S9        . not put up for retail sale
                               53.08-21;
                               25
49     CX53.IO                               Yarn of sheep's or lamb’s wool,
                                             of horsehair or of other animal
                                             hair (fine or coarse), put up for re
                                             tail sale:
                               53.10-11:          Yarn of sheep's or lambs'
                               15                 wool or of fine animal hair,
                                                  put up for retail sale
 ---pagebreak---                                                               ^6                                        'll-
                                       ·- " "         ---------- ---- ---- “T
                                                                                T i d e of pc,uivele'' ce
                            NtMEXE !                                                                    p/piece
                               cod« J !                                          pieces/fcfl
            OCTfce4‘"3N *     (1532) | :
                          53.U-01:
*3      53.1 S            03 ; 07 ; 11
                          13;17:20
                          30:<0;52
                          54;58;72
                          74; 75;82
                           84;88;9l
                           93; 97
                                                                              1
                                                                               *
                              55.04-00      Cotton, carded or combed ^
   51      55.04
                              55.06-10;
           55.06             bo
                               55.07-10;     Cotton gauze
    53      55.07
                               90
                                             Man-made fibre» (discontinuous
    54      56.04                           (or waste), carded combed o r
            3                                otherwise prepared for spinning.
                                                 Regenerated textile fibre*:
                                                 Regenerated textile fibres
                               56.04-21;         (discontinuous or waste).
                               23;28 '           carded or combed
                                              Man-made fibres (discontinuous
     5$       56.04                           or waste), carded, combed or
              A                               otherwise prepared for spinning. .
                                              A. Synthetic textile fibres:
                                                  Synthetic textile fibres (dis
                                56.04-11;         continuous or waste), carded
                                 13; 15;16;       or combed
                                 17; 18
                                                                                \
 ---pagebreak---                                                                                -7*
                                                                 11                      o/piece
                                                                 |       pieces'/
                                                               "7*--*--Jv-irrkr,c”rr7"
                    Y' m 0r man-made fibre, ( ^ c o n - |i ■
                     tf^o u s or waste), put up for f - .
                     tail sate:
                          Yam of synthetic t«»']*'!
                          fibr-s (discontinuous or
                           was«), put up for retat. sale ,
                                                       - - 4;
                       ‘-"sale*                              % ’
                             Yam of regenerated «*·“*.
                             fibres (discontinuous ·.ƒ«’·
                             waste), put up for re.rulsat^,
                         Carpets, carpeting and rug .
                         ted (made up or not)              . . 1
                                                           r< ■.
                                                    ... '.i'jn — '
                           Other carpets, carpeting, njr?.
59 55.02                   mats and matting, and TCclei.Vj
   ex A                    ‘Schumaclts’ and ‘Karamanjc
       0                   rugs and the like (made up or
                           not):
                           Felt and articles of felt, whethef
   59.02                   or not impregnated or coated:
   ex A
                           A. Felt in the piece or simply cut
                                 to rectangular shape:
            58.02-04;            Woven, knitted or crocheted
            C6; 07;09;           carpets, carpeting, rugs, mats
            55; 61;65;        ' and matting, and ‘Kclcm,
            71; 75;81;           ‘Schumacks’ and ‘Karamame
            85; 90               rugs and the like (made up or
                              ■ not); floor covering, of felt...f,
            59.02-01:
            09
                           Tapestries, hand-made, of the
   53.03                   type Gobelins, [ landers. Aubus-
                           son, Beauvais and the like, and
                            needleworked tapestries (for ex
                            ample. petit point and cross
                            stitch) made in panels and the
                            like by hand:
                                                                   •1* ^
            38.03-00             Tapestries, hand-made
                            Narrow woven fabrics, and nar
61  53.05                   row fabrics (bolduc) consisting o.
    A I a)                  wart) without weft asscmb.cd by
          c                 means of an adhesive, other than
       II                   goods falling within heading
    D                       No 58.06:
            58.05-01;            Narrow woven fabrics not ex
            03;30;40             ceeding 30 cm in width with
            51; 59;61         ■ selvedges (woven, gummed cr
            69; 73;77            made otherwise) on both
            79; 90               edges, other than woven
                                 labels and the like; bolduc
 ---pagebreak---                                                                                IV
                                                            -      V f '
                                               —
                                                                                T a o l e o f e H -v - u r c ;
                                   r;*“ «:.XE                   Description             1'      .         . l,_                          q /p ie c c
                                       c~*e                                             jj    p ie c e s /k g                            y
  C r^r^t        CCTk~vli"8N·        (1932)                                            |                  , ......... ............~ ...... .    r:_" .·
                                      . --------
                                                                                ':
                                 58.06-10;       Woven labels, badf.es and ^ 1
     62      58.06                               like, not embroidered, in the
                                 SO              piece, in strips or cut to shape or
          '                                                                                •
                                                 size
                                                 Chenille yam (including flock .                                          1
             58.07                               chenille yarn), pimped yam (other
                                                 than metallized varn falling with                                       »«
                                                 in heading No 52.01 and gimped                                            i
                                                  horsehair yarn); braids and orna
                                                  mental trimmings in the piece,
                                                  tassels, pompons and the like:
                                  58.07-31:            Chenille yarn (including flock
                                  39;50;80             chenille varn), pimped yarn
                                                       (other than metallized yam
'                                                      and pimped horsehair yarn); 1
                           '                           braids and ornamental trim
                                                       mings in the piece, tassels,
                                                       pompons and the like                 •
                                                                                .
                                  58.08-10;       Tulle and other net fabrics (but
             58.08                                not including woven, knitted or
                                  90
                                                  crocheted fabrics), plain
                                  58.C9-11:       Tulle and other net fabrics (but
             58.09                                 not including woven, knitted or
                                  19;21;31;        crocheted fabrics), figured; hand
                                  35; 39;91;
                                  95:99            or mechanically made lace, in the                                            ‘
                                                   piece, in strips or in motifs
                                                                                '
                                  58.10-21:        Embroidery, in the piece, in strips
             58.10                                 or in motifs
                                  29;41;45:
                                  <9;51;55;
                                  59
            1       ... _ — -· — —
                                      '
       63     60.01                                Knitted or crocheted fabric, not
              B la)                               elastic or rubberized:
                                                  B. Of man-made fibres:
             60.06                                Knitted or crocheted fabric and
             A                                   articles thereof, elastic or rubber-
                                                 ized (including elastic knee-caps
                                                 and elastic stockings):
                                                 A. Fabric:
                                 60.01-30              Knitted or crocheted fabric.
                                                      not elastic or rubberized, of
                                 60.06-11;            synthetic textile fibres, con-
                                 18                   taining elastofibres; knitted
                                                      or crocheted fabric, elastic or
                                                      rubberized
'·   ··'
 ---pagebreak---                                                             ~ k°)      '                                 20
                                                                                T ib le o f e q u iv a le n c e
                              M!?*eXS                 Dcteriptiaa
                                 1—*0
Cr~-~rj     CCTI-«!!' J f!®     (1632)                                       p i e c e s / 1'.9             g/piccc
                            S-i..... .  ------- ---------------------- —
                                        Knitted or crocheted fabric, not
  64    60.01                           elastic or rubberized:
        0 lb) 2
                 3                      B. Of man-made fibres:
                            60.01-51;        Rachel lace and long-pile fab
                            55              ric (imitation fur), knitted or
                                             crocheted, not elastic or rub
                                             berized, of synthetic textile
                                             fibres
                                         Knitted or crocheted fabric, not
   63    60.01                           elastic or rubberized:
         A
         D I b)              60.01-01;        Other than those of categories
             11              10;62:64         38 A, 63 and 64, of wool, ot
                             65; 63;72        cotton or of man-made textile
                             74;75;78         fibres
                             81; 89;92
                             94;96; 97
                                          Travelling rugs and blankets:
          62.01
          A                   62.01-10;        Travelling rugs and blankets,
          B 1                 20;81;85;        of wool, of cotton or of man
              11 *)           93; 95           made textile fibres
                 b)
                 c)
 ---pagebreak---                                                                          _     s o
                                                                 group      ni n
       *                                           ·—■                                             ,                                   ,         ---------
      :                                                                                V ;.«   Z* f C . ’ v J '. i 'C Î
                                        NtMSXe
C—                CCT fcMdi.ij No         c-ie
                                         (1-32)                                                                                g/ p i c c e
                                                                                O ieces/kg
                                                                                • - Vj.*v,i ^ ■ - · · - · · '
'   |0                                                  Gloves, mittens and mitts, knitted jl
              60.02                                     or crocheted, not elastic or rub- F
              A                                                                                59
                                                        berized:                                         17 pairs
                                      60.02-40            Gloves, mittens and mitts,
                                                                                i
                                                          knitted o r crocheted, not                                       1
                                                          elastic or rubberized,                                           1
                                                          impregnated or coated with                                       I
   ·'   —                                                                                1
                                     —
                                                          artificial plastic materials                                     1
                                     M.02-50:              G loves, mittens and mitts,
                                     60;70;80              knitted or crocheted, not
                                                          elastic or rubberized, other
                                                          than·impregnated or' coated
                                                          with artificial plastic
                                                          materi als
                                                     1--
   67       60.05 ■                j
                                                        Ouler garments and other articles,
             A lib) 5              1                    knitted or crocheted, not elastic
             3                                         or rubberized;
            60.06                                       Knitted or crocheted fabric and
            B II                                       articles thereof, elastic or rubber
                III                                    ized (including elastic knee-caps
                                                       and clastic stockings);
                                                       B. Other;
                                    60.05-93;               Clothing accessories and
                                    94; 95;96;             other articles (except gar
                                    97; 98;99              ments), knitted or crocheted,
                                                           riot elastic or rubberized; arti
                                    60.06-92;              cles (other than bathing cos
                                    96; 98                 tumes) of knitted or crocheted
                                                           fabric, clastic or rubberized,
                                                           of wool, of cotton, or cf .
                                                »» ft! a man-made textile fibres             I
                                   60.05-97              a) of which sacks and bags of a kind
                                                              used for the packing of goods,
                                                              made from p o l y eth yl ene or poly pro py len e strip
  69       60.04                                      Under garments, knitted or cro
           0 IVb)2 cc)                                cheted, not elastic or rubberized:
                                                      B. Of other textile materials:
                                                                                128
                                   60.04-54                Women’s, girls' and infants’
                                                           knitted or crocheted petti
                                                          coats and slips, of synthetic
                                                          textile fibres, other than
                                                          babies' garments
70        60.04                                   Under garments, knitted or cro
         B HI                                     cheted, not clastic or rubberized:
                                                  B. Of other textile material*:
                                  60.04-3 i;             Panty-hose (tights)
                                                                                30.4                         3 3
                                  33; 34
                                                                                M
 ---pagebreak---                                                                                Taclc of ciNlvalence
\
                                                                             p icecf./fcg          Q/pioce
   71       co.cs                     Outer garments end other art::!?',
            A lib) J                  knitted or crocheted, not clcsti;·]
                                      rr rubberized:                     · j
                                      A. Outer garments and clothing
                                          accessories:
                                           IL Other:
                                               b) Other
                                                   1. Babies' garments;
                                                       girls' garments up
                                                       to and including
                                                       commercial size
                                                       86 ;
                        60.05-06:                      Babies'     knitted
                        07:08:09                       outer garments, of
                                                       wool, of cotton or
                                                       of man-made tex
                                                       tile fibres
  72       60.05
           A Mb) 2                   Outer garments and other articles,
                                     knitted cr crocheted, not elastic
                                     or rubberized:
                                     A. Outer garments and clothing
                                         accessories:
                                         II. Other
          60.06
          B I                        Knitted cr crocheted fabric and
                                    articles thereof, elastic or rubber
                                    ized (including elastic knee-caps
                                    and elastic stockings):
                                    B. Other:                                   9 ,7               103
                     60.05-    11;      Knitted swimwear
                     13; 15
                     60.06-    91
        61.01
        B II
      (61.02
       B lib)
                                   Men's and boys’ outer garments:  7T
                                  B. Other:
                                     Woven swimwear, of wool, of i
                                     cotton or of man-made textile
 ---pagebreak---                                                             r i                                                 23
                                                                                Tabl e of equivalence
                          NIMEXE                   Description
                                                                             p i ec e o / t' O                 g/piece
                            (li32)
                                     Outer.garments cnd other Ertici«·,                               ___ 650
       74  C0.05      ' '            knitted or crocheted, not elas.i.
           A llb)4c3)                or rubberized:
                      22
                      33             A. Outer garment* and clothing
                      44                 accessories:
                                          II. Other:
                                               Women’s, girls’ and in
                          60.05-71;            fants’ (other than babies )
                          72;73;74             suits and costumes (in
                                               cluding coordinate suits
                                               consisting of two or three
                                               pieces which are ordered
                                               packed, consigned and
                                               normally sold together),
                                               of knitted or crocheted
                                                fabric, not elastic or rub
                                               berized, of wool, of cot
                                                ton or of man-made tex
                                                tile fibres, excluding ski
                                                suits
                                                                                o-co       7 250
                                      Outer garments and other articles
        73  60.05                     knitted or crocheted, not elastic
            A IIb)4il)                or rubberized:
                                      A. Outer garments and clothing
                                           accessories:
                                            11. Other:
                                                 Men’s and boys’ suits (in
                           60.05-66;             cluding coordinate suits
                           68                    consisting of two or three
                                                 pieces which are ordered,
                                                 packed, consigned and
                                                 normally sold together),
                                                 of knitted or crocheted
                                                 fabric, not elastic or rub
                                                 berized, of wool, of cot
                                                 ton or of man-made tex
                                                 tile fibres, excluding ski
                                                 suits
                                                                                40 pair*        25
        77  60.03                     Stockings, under stockings, socks,
            0 11 a)                   ankle-socks, sockettcs and the
                                      like, knitted or crocheted, 'not
                                      elastic or rubberized:
                           60.03-24;       Women’s stockings Of syn
                           26              thetic textile fibres
kyC-'y-n
 ---pagebreak---                                                                                Table of equivalence
                                                                             picccc/i'-O          fj/picce
                                                                           T
                                      Women's, girls' and infants' outer
             61.02                    garments:
             A
                                       A-
                                            commercial size 86.        .·
                                        Women's, girls' and infants’ un
              61.04                     der garments:
              A
                                        A. Babies' garments; girls' gar
                                             ments up to and including
                                             commercial size 86:
                          61.02-01;          Babies’ woven garments of
                          03                 wool, of cotton or of man
                                             made textile fibres
                          61.04-01;
                          C9
        82    60.04                     Under garments, knitted or cro
              B IV a)                   cheted, not elastic or rubberized:
                    c)                  B. Of other textile materials:
                          60.04-38;          Under garments, other than
                          60                 babies', knitted or crocheted,
                                             not elastic or rubberized, of
                                             wool, of fine animal hair or of
                                             regenerated textile fibres
       84    61.06                    Shawls, scarves, mufflers, mantil
             D                        las, veils and the like;
             C
  •          D           61.06-30;         Other than knitted or cro
            E            40;50;60          cheted, of wool, of cotton or
                                           of man-made textile fibres
      85    61.07                    Ties, bow ties and cravats:
            B
           C            61.07-30;          Other than knitted or cro                   179     56
            D           40; 90            cheted, of wool, of coiton or
                                          of man-made textile fibres
     86    6I.C9                    Corsets, corset belts, suspender-                  8-8    114
           A                        belts, brassières, braces, suspen
           B                        ders, garters and the like (includ
           C                        ing such articles of knitted or cro
           E                        cheted fabric), whether or not
                                    elastic:
                       61.09-20;         Corsets, corset-belts, suspen
                       30;40;80          der-belts, braces, suspenders,
                                         garters and the like (including
                                         suc h articles of knitted or cro
                                        cheted fabric), other than
/ O ') _                                brassières, whether or not
                                        clastic
                                                                                \ A
 ---pagebreak---                                                           Teble of equivalence^
                                                                         g/picce
      cor i~·    (!C32)
              61.10-00  Cloves, mittens, mitts, stocking,
87 61.10                socks and sockcltes, not knitted
                        or crocheted
                         Made up accessories for articles
   61.1!                of apparel (for example, dress
                        shields, shoulder and other pads,
                        belts, muffs, sleeve protectors,
                        pockets):
              61.11-00      Other than knitted or cro
                             cheted
 ---pagebreak---                                                                                26.
                                       GROJJP III C
                                                                                Tabl e of e q u i valence
                          NIMSXt                         Description
 f “~rj                                                                                piccer/i.o              f /picce
1
                                         Twine, cordage, ropes and. cables,          I·
                                         plaited or not:
                                             Twine, cordage, ropes and
                                              cables, of synthetic textile
                                              fibres, plaited or not
                                          Tarpaulins, sails, awnings, sun-
                                          blinds, tents and camping goods:
                                               Tents'
                                          Woven fabrics of ^an-made
                                          tores                            0r strip
                                           ? S whhm heading No 51.0!
                                           or 51.02:                                 I
                                           r s t s ' L               M         "
            S9.H
            A 111»)                         cheted goods:
                                            A. Rubberized.textilefabrics not
                                                 comprised in B below.
                                                 HI. Other:
                                                         Woven fabrics of man
                           51.04-03:                     made textile fibres and
                           52                            rubberized textile woven
                                                         fabrics, for tyres
                           59.11-15
                                             Sack, .«4                          “,' d
             62.03                           for the packing of goods.
      93
             B i b)                          B. Of other textile materials:
                 11 a)
                     b) 2                         Sacks and bags, of a >“ n<1
                     c)     62 03-93:                 .5 fnr the packing of
                            95 ; 97 ; 98           U oris of woven fabrics, other
                                                   ?h°.°„ made from polyethylene
                                                   or polypropylene strip
                             59.01-07;
        94     59.01         12; 14;.15;          ag
                              16:18:21:         mill neps
                             29
                                                Felt and articles of felt, whether
                                                or not impregnated or coated.
         95    ex 59.02
                                                                    articles of f«H·
                              59 02-35;               whctheTor not"
                              41; 47 ; 51;            or coated, other than Boor
                               57:59:91;              coverings
                              95:97
                                                                                u
 ---pagebreak---                                                                                27
                                       MMEXI
Cr— try        CC7 fcrrdtrj N·           c.*i·                        Dtscripttoa
                                        0«J> ;                                                a icces/hç
                                                        ___________________________
             59.03                                       Bonded fibre fabrics, similar
    95                                                   bonded yam fabrics, and articles
                                                         of such fabrics, whether or not
                                                         impregnated or coated:
                                     59.03-1 ;                Other than clothing and
                                      19;30 -                 clothing accessories
                               V
                                                          Nets and netting made of twine,
    97       59.05                                        cordage or rope, and made up
                                                          fishing nets of yarn, twine, cor
                                                          dage or rope:
                                      59.05-11;               Nets and netting made of
                                      21 ; 29 ; 91 ;          twine, cordage or rope and
                                      99                      made up fishing nets of yarn,:
                                                              twine, cordage or rope
                                                                                f
   95      Î9.05                                       OtheT articles made from yam,
                                                       twine, cordage, rope or cables,
                                                       other than textile fabrics and arti
                                                       cles made from such fabrics:
                                    $9.06-00                Other articles made from
                                                            yam, twine, cordage, rope or
                                                            cables, other than textile
                                                            fabrics, articles made from
                                                            such fabrics and articles of
                                                            category 97
          50.07                    59.07-10;           Textile fabrics coated with gum
                                   00                 or amylaceous substances, of a
                                                      kind used for the outer covers of
                                                      books and the like; tracing cloth;
                                                      prepared painting canvas; buck
                                                      ram and similar fabrics for hat
                                                      foundations and similar uses
 ICO     50.CS                    59.08-10;          Textile fabrics impregnated, coat
                                  51 ; 61 ; 71 ;     ed, covered or laminated with
                                  79                 preparations of cellulose deriva
                                                     tives or of other artificial plastic
                                                     materials
101     ex $9.04                                   Twine, cordage, ropes and cables,
                                                   plaited or not:
                                 59.04-80                Other than of synthetic textile
                                                         fibres
 ---pagebreak---                                            NIMÜJS8                                          •         Ta b l e o f e q u i v a l e n c e
   C—rrzj          CZ1 h—iL-j fia            rii                       Pr^zipsisa
                                                                                p i e c e c/l:n                 e \/p ic r.n
              ----- ---------- *------
     102      Î9.I0                     59.10-10;        Linoleums and materials pre
                                        31; 39           pared on a textile base in a simi
                                                         lar manner to linoleum, whether
                                                         or not cut to shape or of a kind
                                                         used as floor coverings; floor
                                                         coverings consisting of a coating
                                                         applied on a textile base, cut to
                                                         shape or not
     103      59.11                                      Rubberized textile fabrics other
              A 1                                        than rubberized knitted or cro
                 It                                     cheted goods:
                 III b)
              D                         59.11-11;             Excluding fabrics for tyres
                                        14; 17; 20
     104      59.12                                     Textile fabrics otherwise impreg
                                                        nated or coated; painted canvas
                                                        being theatrical scenery, studio
                                                        back-cloths or the like:
                                       59.12-00              Textile fabrics, impregnated
                                                            or coated, other than those of
                                                            categories 99, 100, 102 and
                                                             103; painted canvas being
                                                            theatrical scenery, studio
                                                            back-cloths or the like
   105      59.13                     59.13-01;        Elastic fabrics and trimmings
                                      II; 13;15;      (other than knitted or crocheted
                                      19;32;34;       goods) consisting of textile mate
                                      35; 39          rials combined with rubber
                                                      threads
 106      59.14                     59.14-00         Wicks, of woven, plaited or knit
                                                    ted textile materials, for lamps,
                                                    stoves, lighters, candles and the
                                                    like; tubular knitted gas-mantle
                                                    fabric and incandescent gas man
                                                   tles
107      59.15                     59.15-10;      Textile hosepiping and similar
                                   90             tubing, with or.without lining, ar
                                                  mour or accessories of other ma
                                                  terials
CM
 ---pagebreak---                                                            - s'<P -                           zr
                         fFIMEX«
 C—zrrj                     C'·*·                   Dcuriptica
                           ti ij« ;                                             piccrr/hc g / pi cce
m     _«, , -       |
                                                                              1
   1CS       59.16    59.16-00       Transmission, conveyor or eleva
                                     tor belts or belting, of textile ma
                v·                   terial, whether or not strengthened
                                     with metal or other material
    109       63.04                  Tarpaulins, sails, awntngs, sun-
              A 1                    blinds, tents and camping goods;
              D 1     62.04-21;           Woven tarpaulins, sails, awn
                      61; 69             ings and sunblinds
                                                                            j
                                      Tarpaulins, sails, awnings, sun- j
    110      63.04                    blinds, tents and camping goods:
             A III
              n ui     62.04-25;           Woven pneumatic mattresses
                       75
     til      62.04                    Tarpaulins, sails, awnings, sun-
               A IV                    blinds, tents and camping goods:
               3 IV                        Camping goods, woven, other
                        62.04-29;
                        79                 than pneumatic mattressts
                                           and tents
                                     —       ------------ 1—    ~        1
   113       62.05                    Other made up tetile articles (ini
             A                        eluding dress pattrns)'·
             3                            Other made uptextile articles,
             D         62.05-01;
             E         10; 30;93;         woven, excluang those o
                      95:99               categories 113 and 114        ... .
              62.05                    Other made up textile articles (in
     113                               cluding dress patterns):
              C
                                       C. Floor cloths, dish cloths,
                                           dusters and the like:
                        62.05-20           Floor cloths, dish cloths,
                                           dusters and the like, other
                                           than knitted or crocheted
              59.17     59.17-10;     Textile fabrics and textile articles
    114                                of a kind commonly used in
              A         29'; 31; 39;
              3 11      49; 51:59;     machinery or plant
              C         71; '79; 91;
              D         93;95; 99
 ---pagebreak---                                            ANNEX I I
For practical reasons the product descriptions used in Annex I are given in the present
Annex in abbreviated form.
                                Community quantitative limits
                                                                           Suant itat ive
Category                Description                    Units     Year      limits EEC
     2      Cotton fabrics                        1    Tonnes  1983           2 I64
                                                               1984          2 175
                                                               1985           2 186
                                                               1986           2 197
     2A     of which: other than grey or               Tonnes  1983          1 668
                      bleached                                 1984          1 676
                                                               1985          1 685
                                                               1986          1 693
    3       Fabrics of discontinuous synthetic         Tonnes  1983 ‘           566
            fibres                                             1984              572
                                                               19&5              577
                                                               1986              583
    3A      Fabrics of synthetic textile fibres:       Tonnes  1983                27 )
            (a) of which: other than grey or                   1984               .27) HNL
                            bleached                           1985                27 )
                                                               1986                28)
    4      Knitted shirts, singlets, T-shirts,       1 000      1983           2 58 I
           sweater-shi rts                           pi eces    1984           2 607
                                                                1985           2 633
                                                                1986           2 659
    5      Jerseys, pullovers _                      1 000      19 O 3         2 170
                                                     pieces     1984           2 213
                                                                1985           2 258
                                                                1986           2,303
    6      Men's and women's woven trousers and      1 000      1983              255
           men's shorts and breeches                 pieces     1984              260
                                                                1905              265
                                                                1986              271
    7      Women's woven and knitted blouses         1 000      1983              3i°
                                                     pieces     1984              315
         ;                                                      1985              319
                                                                1986              324
   8       Men's woven shirts                         1 000     1933              586
                                                      pieces    1984              595
                                                                1985              604
                                                                1986              613
 ---pagebreak---                                               & o   -
Category                   Description                                Quantitative
                                                 Units          Year  limits EEC
                                                                     ------      -- - - -
      9     Cotton towelling, toilet and         Tonnes       1Q 83          205
            kitchen linen of cotton towelling                 198*1          209
                                                              1985           213
                                                              1986           218
    12     Knitted stockings and socks, other    1 000        1983       2  432
           than women's stockings of            pairs         1984   i 2     468
           synthetic yarn                                  I 1985        2   506
                                                           ! 1986        2  543
    13     Men's and women's knitted             1 000     1 1983       4   144
           underpants, knickers and briefs      pieces     1 1984    ! 4    165
                                                           i 1985       4   227
                                                              1986   I 4    270
   15B     Woven women's overcoats, raincoats    1 000        1983          308
          and other coats, cloaks and jackets     pieces      1984          320
                                                              1985          333
                                                              1986          346
   16     Men's woven suits                      1 000 ■      1983          325
                                                 pi eces      1984          330
                                                             1985           335
                                                             1986           340
   17     Men's woven jackets and blazers       1 000        1983           288
                                                 pieces   i 1984            297
                                                             1985           306
                                                             1986           315
  19 +    Cotton hankerchiefs                   Tonnes    j 1983            330
  89                                                         1984           337
                                                             1989           343
                                                             1986           350
  20     Bed linen                              Tonnes   1 1983             960
                                                             1904           9 89
                                                             1983       1 Ô 18
                                                             1906       1 049
 24 +    Men's and women's knitted pyjamas      1 000        1903       1   376
 25                                                          19‘"-I     1  424
                                                pieces
                                                             i>o        1  474
                                                             1986      1   526
                                                         l
 ---pagebreak---                                            -- 6 A ~
                                                                   i
                                                                   ! Quant itative
Category               Description               Units        Year j limits
                                                                      - - - , EEC -,
 30A      Women's woven pyjamas                   1 ÛOO     1983   1 1 325
                                                  pieces    1984        1 358
                                                            1985       1 392
                                                            1986       1 427
 36       Fabrics of continuous regenerated       Tonnes    1983          368
          fibres                                            19 34         379
                                                            19 «5         390
                                                            1986          402
 39      Table linen                              Tonnes    1983.         523
                                                            1984           539
                                                            1965           555
                                                            1986           571
 50      Wool fabrics                             Tonnes    1983           2Ö7
                                                            1984           29 6     !
                                                          . 1985           304
                                                            1986           314
 67      Knitted accessories                      Tonnes    1983           812
                                                            1984           853
                                                            1985           895
                                                            1986           940
 67A     "Rachel" bags                            T onnes    1983          68 8
                                                             1934          722
                                                            1985           759
                                                            1986           796
 69      Petticoats and slips                     1 000     1983           344
                                                  pieces     1984          361
                                                            1985           379
                                                            1980           398
73       Track suits, knitted                     1 000     1983           454     1
                                                  pieces    19 84          468
                                                            1935           482
                                                            1986           496
 ---pagebreak---                                                                       Quant itative
  Category               Description             Units       Year     limits     EEC
                                               '
    74      Women's knitted suits                 1 000     1983            205      !
                                                  pieces    1984   .        213
                                                            1985            222
                                                            1986            231
    76      Woven workwear                        T onnes   1983            614
                                                            1984     1      626
                                                            1985            639
                                                            1986            652
    78      Other men's outerwear, bath robes.    T onnes   1983     ]      420
            et c.                                           1984            428
                                                            1985            437
                                                            1986     i      446
    83      Other knitted outerwear               T onnes   1983            535
                                                            1984            556'
                                                   '        1935            579
                                                            1986            602
   91      Tents                                  Tonnes    1983            350
                                                            1984            364
i
                                                            1985            379
                                                            1986            394
   100     Impregnated fabrics                    Tonnes    1983         4  012
                                                            19 3-1       4  172
                                                            1935         4  339
                                                            1986         4  513
   110     Pneumatic mattresses                   Tonnes    1983         2  724
                                                            1984         2  860
                                                            1989         3  003
                                                            1986          3 153
   111     Tarpaulins, sails                      Ibnnes    1983              37
                                                          ■ 1934             39
                                                            1985             42
                                                            1985             44
 ---pagebreak---                                           ~ 6 *b
                                   Regional quantitative limits
                                                           Member     Year    Li mi t
Category                   Description           Unit      State
           Cotton yarn                          Tonnes     Italy      1983        252
                                                                      19O 4  !    253
                                                                      198$        255
                                                                      1986   !    256
                                                           Benelux    1983        237
                                                                      1984        238
                                                                    I 1985        239
                                                                      1966        241
    11     Knitted gloves and mittens              1 000   Frano.)*    15Ö3        515
                                                   pieces              1984        541
                                                                       19£:>       568
                                                                       1586        596
     14B I Overcoats, raincoats and other          1 000        UK     1983          53
           coats                                  pieces               1984   1      55
                                                                       1965         '57
                                                                       1986          60
     26    Woven and knitted dresses                1 000   Benelux    1983        190
                                                  pieces                1984   [ '193
                                                                        1985        196
                                                                        1986        199
 ---pagebreak---                                       -fll·
                                  PROTOCOL A
                                     TITLE I
                                CLASSIFICATION
                                    Section I
                                    Article 1
1.   The competent authorities of the Community undertake to inform Hungary of
any changes in the Common Customs Tariff or NIMEXE before the date of their
entry into effect in the Community.
2.   The competent authorities of the Community undertake to inform Hungary of
any decisions relating to the classification of products covered by 'the
Agreement not later than one month following their adoption.
This communication shall include:
(a)  a description of the products concerned
(b)  the relevant category, tariff heading or subheading and the NIMEXE code
(c)  the reasons which have led to the decision.
3.    Where a decision    on classification   results in  a change   of earlier
classification practice or a change of category of any product covered by the
Agreement, the competent authorities of the Community shall provide 30 days'
notice,   from the date of the Community's communication,   before the decision
enters into effect.
Products shipped before the date of entry into effect of the decision shall
remain subject to the earlier classification practice, provided that the goods
in question are presented for importation into the Community within 60 days of
that date.
 ---pagebreak---                                         TITLE II
                                         ORIGIN
                                       Article 2
  1.   Products originating in Hungary for export to the Community in accordance
  with the arrangements established by the Agreement shall be accompanied by a
  certificate of origin conforming to the specimen annexed to this Protocol.
  2.   The certificate of origin shall be issued by the competent authorities of
  Hungary if the products in question can be considered products originating in
  that country   within   the meaning    of  the relevant rules in force  in the
  Community.
 3.     However,   products in Group III may be imported into the Community in
 accordance with the arrangements established by the Agreement on production of
 a declaration by the exporter on the invoice or other commercial document
 stating that the products in question originate in Hungary within the meaning
 of the relevant rules in force in the Community.
                                      Article 3
 1.     Certificates and declarations of origin relating to garments falling
within Chapter 60 or 61 of the Common Customs Tariff shall indicate whether
the articles in question are finished or unfinished.
2.      Certificates and declarations of origin relating to woven or knitted
fabrics or products falling within category 95 or 96 shall indicate whether
the products in question are dyed, printed, impregnated or coated.
3.     Certificates and declarations of origin relating to products in category
19, 20, 38B, 39, 40 or 84 shall indicate whether the articles in question are
embroidered.
 ---pagebreak---                                     -u-
                                  Article 4
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.
 ---pagebreak---                                       - 4V-
                                    TITLE III
                             DOUBLE-CHECKING SYSTEM
                      FOR CATEGORIES OF PRODUCT SUBJECT TO
                               QUANTITATIVE LIMITS
                                    Section I
                                      Export
                                    Article 5
The competent authorities of Hungary shall issue an export licence in respect
of every consignment of textile products listed in Annex II up to the relevant
quantitative limit, taking into account any modification of that limit under
Article 4, 12 or 14 of the Agreement, and of textile products subject to a
definitive or provisional quantitative limit established under Article 7 or 8
of the Agreement.
                                    Article 6
1.  The export licence shall conform to the specimen annexed to this Protocol.
It must certify inter alia that the quantity of the product in question has
been set off against the quantitative limit laid down for that category of
product.
2.    Each export licence shall cover only one of the categories of products
listed in Annex II to the Agreement.         It may be used for one or more
consignments of the products in question.
                                    Article 7
The  competent   Community  authorities   must  be  notified forthwith of  the
withdrawal or alteration of any export licence already issued.
 ---pagebreak---                                       Artide 8
  1.    Exports shall be set off against the quantitative limits established for
 the year in which shipment of the goods has been effected, even if the export
  certificate is issued after such shipment.
 2.     For the purposes of paragraph 1, shipment of the goods is considered to
 have taken place on the date of their loading on to the exporting aircraft,
 vehicle or vessel.
                                      Article 9
 The production of an export    licence for the purpose of Article 12 of this
 Protocol must be effected not later than 31 March of the year following that
 in which the goods covered by the licence were shipped.
                                     Section II
                                       Import
                                    Article 10
 Importation into the Community of textile products subject      to quantitative
 limits shall    be subject  to the production of an import authorization or
 document.
                                    Article 11
1.     The competent Community authorities shall issue such import authorization
or document automatically within five working days of the production by the
importer of the original of the corresponding export licence.
The import authorization or document shall be valid for six months.
2. The competent Community authority shall cancel the import authorization or
document issued if the corresponding export licence has been withdrawn.
 ---pagebreak---                                          - if
 However,    if the competent Community authorities have not been notified about
 the withdrawal or cancellation of the export licence until after the products
 have been imported into the Community, the quantities involved shall be set
 off against the quantitative limit for the category and the quota year in
 question.
                                     Article 12
 1.    If the competent Community authorities find that the total volume covered
 by   export licences issued by the competent Hungarian authorities          for a
 particular category in any Agreement year exceeds the quantitative limit
 established in Annex II for that category,            taking into account any
modification of that limit under Article 4, 12 or 14 of the Agreement, or a
definitive or provisional limit established under Article 7 or 8 of the
Agreement,      the said authorities may suspend the further     issue of   import
authorizations     or  documents.     In   that event,   the competent   Community
authorities shall immediately inform the Hungarian authorities and the special
consultation procedure set out in Article 15 of the Agreement shall be
initiated forthwith.
2-       The competent Community authorities may refuse to issue import
authorizations or documents for products of Hungarianorigin not covered by
export licences issued in accordance with the provisions of this Protocol.
However,    without prejudice to Article 9 of the Agreement,   if imports of such
products are allowed into         the Community     by the competent Community
authorities,      the quantities  involved shall   not be set off against the
appropriate quantitative limits set out in Annex II or established as a result
of the application of Article 7 or 8 of the Agreement without the express
agreement of Hungary.
 ---pagebreak---                                         - 70-
                                      TITLE IV
             FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES
                         OF ORIGIN, AND COMMON PROVISIONS
                                     Article 13
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 block capitals.
The documents shall measure 210 x 297 mm.       The paper used must be white sized
writing   paper not   containing mechanical     pulp and   weighing not    less than
25 g/m2 .
If the documents have several copies,         the top copy alone, which is the
original, shall be printed with a guilloche pattern background.             This copy
shall be marked "original" and the other copies "copy".           Only the original
shall be accepted by the competent Community authorities for the purposes of
checking   exports   to  the   Community   in  accordance   with   the  arrangements
established by 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:
-  a number indicating the quota year;
-  numbers running from 00001 to 99999             allocated   to   the  country   of
   destination;
-  the numbering system shall also indicate the country of destination (in box
   7 of the export      licence),   the country of exportation and the issuing
   office.
 ---pagebreak---                                   A r ti cle 14
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 be
marked "délivré a posteriori" or "issued retrospectively".
                                  Article 15
1.    In the event of theft, loss or destruction of an export licence or a
certificate of origin, the exporter may apply to the competent government
authority which issued the document for a duplicate to be made out on the
basis of the export documents in his possession.       The duplicate licence or
certificate so issued shall be marked "duplicata". 2
2.     The duplicate must bear the date of the original export       licence or
certificate of origin.
 ---pagebreak---                                            ~Vr
                                          TITLE V
                               ADMINISTRATIVE COOPERATION
                                        Article 16
    The Community and Hungary shall cooperate closely to implement the provisions
   of the Agreement.     To this end, contacts and exchanges of views (including
   those on technical matters) shall be facilitated by both parties.
                                       Article 17
   In order to ensure the proper application of the Agreement,  the Community and
   Hungary shall assist each other in checking the authenticity and accuracy of
  export licences and certificates of origin issued or declarations made under
  this Protocol.
                                       Article 18
  Hungary shall send the Commission of the European Communities the names and
  addresses of the authorities responsible for issuing export licences and
  certificates of origin together with specimens of the stamps used by these
 authorities.      Hungary shall notify the Commission of any change     in this
  information.
                                      Article 19
 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 export licence or a copy thereof to the competent
authority in Hungary, giving, where appropriate, the reasons of form or
 ---pagebreak---                                     - T 3 -
substance for an enquiry.  If the invoice has been submitted, the invoice or a
copy thereof shall be attached to the certificate or licence or its copy.  The
 ---pagebreak---  authorities shall also provide any information that has been obtained
 suggesting that the particulars given on the said certificate or licence are
  inaccurate.
 3.     The provisions of paragraph 1 shall apply to subsequent verifications of
 the declarations of origin referred to in Article 2 of this Protocol.
 4.   The results of the subsequent verifications carried out in accordance with
 paragraphs 1 and 2 shall be communicated to the competent authorities of the
 Community within three months at the latest.          The information communicated
 shall   indicate  whether the    disputed   certificate,    licence  or   declaration
 applies to the goods actually exported and whether these goods are eligible
 for export in accordance with the arrangements established by the Agreement.
 The information shall also include, at the request of the Community, copies of
 all documentation necessary to determine the full facts, in particular the
 true origin of the goods.
 Should such verifications     reveal   systematic   irregularities   in the    use of
 declarations of origin,     the Community may subject imports of the products
 concerned to the provisions of Article 2(1) of this Protocol.
 5.     For the purpose of subsequent verification of certificates of origin or
export licences, copies of the certificates and any export documents referring
to them shall be kept for at least three years by the competent           authority in
Hungary. 6
6.     Recourse to the random verification procedure referred to in this Article
must not constitute an obstacle to the release for home use of the products in
question.
                                      Article 20
1.    Where the verification procedure referred to in Article 19 or information
obtained by the Community or Hungary       indicate or appear to indicate that the
provisions    of  the  Agreement   have  been   contravened,     both  parties   shall
cooperate closely      and   with   the   appropriate    urgency   to   prevent    such
contravention.
 ---pagebreak--- 2.   To this end any necessary enquiries shall be carried out into   operations
which may be considered to be in contravention of the Agreement.    The results
of these enquiries shall be communicated,   together with any other pertinent
information enabling the true origin of the goods to be determined.
3.   In pursuance of the cooperation referred to in paragraph 1, Hungary ahd
the Community shall exchange any information considered by either partner to
be of use in preventing the contravention of the provisions of the Agreement. 4
 4.    Where it is established that the provisions of the Agreement have been
contravened, Hungary and the Community may agree to take such measures as are
necessary to prevent a recurrence of such contravention.
 ---pagebreak---                                          P R OT OCO L B
1.    The exemption provided for in Article 3 of the Agreement in respect of
cottage industry products shall apply only to the following products:
(a) fabrics woven on hand- or foot-operated looms,               being fabrics of a kind
traditionally made in the cottage industry of Hungary;
(b) garments or other textile articles of a kind traditionally made in the
cottage industry of Hungary, obtained manually from the fabrics referred to
above and sewn exclusively by hand without the aid of any machine;
(c) traditional folklore textile products made by hand in the cottage industry
of Hungary as defined in a list agreed by common accord between the Parties
and appended to this Protocol.
Exemption     shall be granted only for products           accompanied by a certificate
issued by the competent Hungarian authorities in accordance with the specimen
annexed to this Protocol.           Such certificates must state the grounds on which
exemption is based and shall be accepted                   by the competent Community
authorities provided that they           are satisfied      that  the   products  concerned
conform to the conditions set out in this Protocol.                   Certificates for the
products referred to in paragraph (c) must be clearly marked 'FOLKLORE*.                 In
the event of a difference of opinion between                  Hungary    and the competent
 Community authorities at the point of entry into the Community concerning the
nature of the products, consultations shall be held within a month in order to
 settle the difference.        Should imports of any of the above products reach such
proportions as to cause difficulties to the Community, the two Parties shall
enter into consultations in accordance with the procedure laid down in Article
 15 of the Agreement with a view to              finding a quantitative solution to the
 problem.
 2.   The p r o v isi on s of Titles IV and V of Protocol A shall be a p pl ied m u ta tis
muta ndi s to the prod uct s referred to in p a r a gra ph 1.
 ---pagebreak---                                                          ANNEX A
                     Agreed List of textile handicraft products relating to
                                           traditional Hungarian folklore
  This list covers only those textile products linked historically and
  uniquely with traditional Hungarian folklore.
  They are garments in the style of blouses, shirt-blouses and tunics as
  well as waistcoats, aprons, table linen, shawls and scarves.
  These products, of which the names, descriptions and styles are shown
  below, hove the following characteristics:
     they are produced in Hungarian handicraft workshops,
 - they are embellished in the Hungarian folklore styles with embroidery
     executed entirely by hand, with the exception of appliqued embroidery^
     they do not include garments with zips.
                            Names and descriptions                                       Style
   (a) INGVALLAK/BLUZOK                                                              Matyo
         Woven garments of tunic, shirt-blouse and blouse                            Pa Loc
         types, with or without sleeves, richly embroidered                          Sioagard
                                                                                Ka locsa
                                                                                Furta
                                                                                Kunsag
                                                                                Bereg
                                                                                Heves
   (b) LAJBI/MELLECY
         Woven garments of waistcoat type, without s leeves                       j Matyo
        and without any system of fasteni“ng,               - richly                Kunsag
        embroidered
  Cc) K0T0/K0TENY
                                                                                Matyo
        Apron style woven garments richly embroidered                               Kalocsa
  (d) FUTO/TERITO/GARNITURA/ALATET
                                                                                Matyo
        Table      linen and furnishing articles of different                       Pa loc
        kinds      (table mats, table covers, table centres,                        Tura
        table     runner and serviette sets, table cloths and                      Buzsak
        table     cloth and serviette sets), richly embroidered                    Hove j
                                                                                Ka locsa
                                                                                Kunsag
                                                                                Bereg
                                                                                Szur (felt art i c les)
                                                                                Szucs
 (e) VALLKENDO/KENDO/STOLA
       Woven articles of shawl and scarf types, with or                            Matyo
       without fringes, richly embroidered. The fringes                            Sioagard
       are also produced entirely by hand
 (f) 8LUZ0K kevert motivumokkal                                                    Combinations of
       Woven blouses, richly embroidered                                           "folklore" styles
                                                                                from different
                                                                                parts of Hungary
The photographs of the representative samples concerned are in the possession of
tn e  c o m n e tp n t At it h n r i t-i oo o-f t h o Ui  ^ ^    n i _ i „ r>__ , r .i                  ,
 ---pagebreak---                                   P R OT OCO L C
The annual growth rate for the quantitative limits introduced under Article 7
of the Agreement shall be determined as follows:
(a) for products in Group I:
- the rate shall be fixed at 0.5% a year for category 1 products;
(b) for products in categories falling within Group II, III, IV or V, the
growth rate shall be set by agreement between the Parties in accordance with
the consultation procedure described in Article 15 of the Agreement.      Such
growth rate may in no case be lower than the highest rate applied to
corresponding products under bilateral agreements concluded under the Geneva
Arrangement between the Community and other third countries hvaing a level of
trade equal or comparable to that of Hungary.
 ---pagebreak---        I ί 'V . 'tl : · * * * I** rtem*. C**wy»
         £ipafU!iur (ta·, tenir "japttii. ^c)                                                                         ORIGINAI                                    No
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         Oeji'MUifs (tea. tato« complu*.                                                                                Εχρηητ iir.rHCf
                                                                                (T rrti'n ç : c ■ · ' ' · )
                                                                                LICENCE D’ EXPORTATION
                                                                                (PfOClilit* textüAs)
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 ---pagebreak---                                                             - tf —
                                                                                OλICIN£l
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                                                                                (Testile products)                i
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                                                                                (Produits (schiel)
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                                                               Al - A
 ---pagebreak---                                        - 7 - 3 -
              Declaration concerning Article 2(3) of the Agreement
The Community declares that in accordance with the Community rules on origin
referred to in Article 2(3) of the Agreement any amendments to the said rules
will remain based upon criteria not requiring,   in order to confer originating
status,   more extensive   operations  than  those  which  constitute  a   single
complete process.
Done at Brussels,
                                      For the European Economic Co mmunity
 ---pagebreak---                                     —to -
                Declaration concerning Article 12 of protocol A
The Community hereby informs the Government of the People's Republic of
Hungary that neither a lack of full information nor the giving of approximate
information in box 8 of the export       licence,  nor the absence of details
regarding the marks and numbers or the number and kind of packages in box 10,
may constitute valid grounds for a refusal on the part of the Community to
issue an import authorization or document.
                                      For the European Economic Co mmunity
 ---pagebreak---                           JOINT DECLARATION
 In th e course of th e n e g o tia tio n s between th e Community and.
Hungarian d eleg atio n s which re s u lte d in th® i n i t i a l l i n g of
th e t e x t i l e agreement today both d eleg atio n s proposed th a t th e
agreed l i s t o f fo lk lo re products re fe rre d to in Protocol B of
th e Agreement should be extended to include c e rta in hand-embroidered
blouses f a l l i n g w ith in category 7 which, although ty p ic a l fo lk lo re
p ro d u cts, are not a t p resen t approved by th e Hungarian n a tio n a l
fo lk lo re council since th e y combine s ty le s c h a r a c te r is tic of
d if f e r e n t a re a s.
I t was agreed th e co n su lta tio n s would be h eld on t h i s issu e a t a
l a t e r d ate.
D elegation of th e Hungarian                      D elegation of th e European
P eo p le 's Republic                              Economic Community
G. Mkodsi                                          H. G. Krenzler
 ---pagebreak---                                   AGREED MINUTE
 At the initialling of the textile Agreement between the European
 Economic Community and the Hungarian People's Republic on trade in
 textile products the Community indicated that special arrangements
 applied to imports into Greece of category 8 products, in accordance
 with the Act of Accession of Greece to the Communities.
 The Hungarian side maintained that the Community could not invoke
 such a provision against Hungary.
 The parties agreed to hold consultations on the matter early in 1983.
Delegation of the                             Delegation of the
Hungarian People's Republic                   European Economic Community
G. Mikosdi                                    H.G. Krenzler
 ---pagebreak---                                   Joint Declaration
  Having regard to Protocol A concerning the procedure for the issue of
  export licences, the Parties have agreed that from the date of entry into
  force of the Agreement, the provisions set out in the attached Annex will
  be applied to Hungary's exports to the Federal Republic of Germany. The
  Community will give consideration to the question of extending the said
 provisions to Hungary's exports to other regions of the Community, and
 will notify Hungary without delay of any measures adopted in this sphere.
     For the Government of the                         For the European
   Hungarian People's Republic                        Economic Community
              Annex to the Joint Declaration concerning the procedure
                          for the issue of export licences
 1. The competent Hungarian authorities may, at their discretion, issue an
 advance notice of exportation conforming to the specimen mentioned below for
 each contract for the supply of products subject to quantitative limitation
 which are to be exported. The said authorities undertake:
 - to issue, before the shipment of products covered by an advance notice,
    an export licence/export licences, conforming to the specimen annexed
    to Protocol A, and to set off definitively the quantity of goods
    exported against the quantitative limit for the year in which
    exportation takes place,
 - to ensure that the quantity exported does not exceed that specified in
    the advance notice,
- where exportation of goods covered by an advance notice does not take
    place in the course of the year specified in the said notice, to inform
    the competent authorities in the Community of this fact.
2. Where an advance notice has been issued, the number of such notice
shall be indicated on each corresponding export licence.
3. On presentation of an advance notice of exportation, the competent
authorities in the Community shall issue an import authorization or document
in accordance with the provisions of Protocol A, and shall set off the
quantity in question against the corresponding quantitative limit.
4. Where the total quantity or products exported, as indicated in the
export licence(s), is lower than that shown in the corresponding advance
notice, or where goods covered by an advance notice have not been or will
not be exported in the course of the year specified in that notice, the
competent authorities in the Community are required to take account of
such circumstances for the purpose of calculating the imports to be set off
against the relevant quantitative limits.
 ---pagebreak---                     U N IL A T E R A L D E C L A R A T IO N
In answer to a question from the Hungarian delegation concerning
the breakdown of quantitative limits into quota shares for the
Community Member States, the Community delegation w o u l d stress
that the general consultation clause in Article 15(3) can also
be invoked in connection with a modification of the regional
allocation of quantitative limits, as indicated in Article        14(2)
of the Agreement.
                                    For the delegation of the European
                                    Economic Community
 ---pagebreak---                                          CONFIDENTIAL
                   JOINT DECLARATION
The Parties agree that Protocol A t o the bilateral textile agreement
initialled on 23 July 1982 could h e adapted b y mutual agreement to
take account of any technical changes which m ay be found n e c e ssary
in the course of negotiations between the Community an d other
parties t o the MFA.
Brussels, 23 July 1982
    Hungarian
For the People's   Republic             For the European Economic Community
      G. Mikodsi                                 H. G. Krenzler
 ---pagebreak--- OiM h (a                                     h*o.
                                    ~·  é> -
                                                                 CONFIDENTIAL
  Si r.
  At the time when the Agreement on trade in textile products between
  the Community and Hungary was initialled, the Hungarian delegation
  reserved the Hungarian Government's right to request an adjustment
  of the provisions of Article 8 should those provisions be modified in
  a subsequent textile agreement with another supplier country having a
  level of trade comparable to that of Hungary.
  I should be obliged if you would acknowledge receipt of this letter.
  Please accept, Sir, the assurance of my highest consideration.
                                       Dr Gyorgy Mikosdi
                                       Head of the Hungarian Delegation
                                       for textile negotiations with the
                                       European Economic Community
 ---pagebreak---    /hw f é               ÿtjAJKù âaaM           A a ^>  ^  *
                                — <?7 -
                                                               CO N F I D E N T I A L
Si r.
I have the honour to acknowledge the receipt of your letter of today's
date, worded as follows:
"At the time when the Agreement on trade in textile products between the
Community and Hungary was initialled, the Hungarian delegation reserved
the Hungarian Government's right to request an adjustment of the provisions
of Article 8 should those provisions be modified in a subsequent textile
agreement with another supplier country having a level of trade comparable
to that of Hungary."
Please accept, Sir, the assurance of my highest consideration.
                                         Horst G. Krenzler
                                         Special Representative of the
                                         Commission of the European Economic
                                         Community for textile negotiations
 ---pagebreak---                                                           |  Confidential
                     JOINT DECLARATION
 In the course of the negotiations bet w e e n the Community a nd Hung a r y
which resulted in today's initia l l i n g of a textile agreement, the
 Community was not able fully t o agree               t o Hungary's request regarding
the restraint level for category 11 0 (pneumatic mattresses), part
icularly in respect of possibilities for exports to one specific
region of the Community, namely France.
The delegations have a greed that at Hungary's request                 consultations
will take place w i t h a v i e w t o i m p r o v i n g Hungary's possibilities
for exports to that market.
For the Hungarian Delegation                         For th e Community Delegation
       G. MLkodsi                                           H. G. Krenzler
 ---pagebreak---                          - f s -
                 MEMORANIUM OF U N DERSTANDING OU T H E PRICE CLAUSE
 Given the satisfactory implementation of the E E G -Hungary bilateral
agreement in recent years, the fact, in particular, that the
 Community has n ever invoked the price clause, a n d the likelihood
that this situation will continue:
the Community undertakes at Hungary's request to re-examine the
price clause -in the 1983-d.986 bilateral agreement b y 31 December
1 9 8 4 at the latest with a vie w to deciding whether it should be
maintained, made more flexible,      or abolished.
For the delegation of the                     F o r the delegation of the
Hungarian People's Republic                  European Economic Community
G. i&kodsi                                   H. G. Krenzler
 ---pagebreak---                                             AGREEMENT
            in the form of an exchange of Letters between the European Economic
                          Community and the Hungarian People's Republic
   Si r.
   I have tie honour to refer to the Agreement initialled on 23 July 1983
  between the European Economic Community and the Hungarian People's Republic
  on trade in textile products.
  D u n n g ^ t h e negotiations for this Agreement the Community and the Hungarian
  People s Republic also agreed, taking into consideration the fact that both
  were Contracting Parties to the Protocol concerning Hungary's accession to
  GATT, on the following provisions concerning trade in certain products of
  flax or ramie:
  'During the period of validity of the bilateral Agreement referred to
 above the Hungarian People's Republic shall, for each calendar year, comply
 with the quantitative limits on exports of products of flax or ramie to
 the Community, in accordance with Annexes I and II (I: description of
 products; II: level of Hungarian exports).
 These voluntary restraint measures and the administration thereof shall
 by analogy, be subject to the same conditions as those applying to exports
 of products in Group III covered by the Agreement between the Community
 and the Hungarian People's Republic on trade in textile products. The same
 applies to the references in the said Annexes I and II made to Articles
of the Agreement.'
The entry into force and duration of the arrangements provided for by the
above clauses shall be the same as those of the Agreement.
I should be obliged if you would confirm that the foregoing is in
accordance with the conclusions reached following the negotiations on this
question between the European Economic Community and the Hungarian People's
  c U D 1.1 C ·
Please accept, Sir, the assurance of my highest consideration.
                         For the European Economic Community
 ---pagebreak---  Si r,
 I have the honour to acknowledge the receipt of your letter of today's
date, worded as follows:
 "I have the honour to refer to the Agreement initialled on 23 July 1983
between the European Economic Community and the Hungarian People's Reoublic on
trade in textile products.
 During the negotiations for this Agreement the Community and the Hungarian
People's Republic also agreed, taking into consideration the fact that both
were Contracting Parties to the Protocol concerning Hungary's accession to
GATT, on the following provisions concerning trade in certain products of
flax or ramie:
 'During the period of validity of the bilateral Agreement referred to above
the Hungarian People's Republic shall, for each calendar year,, comply with the
quantitative limits on exports of products of flax or ramie to the Community,
in accordance with Annexes I and II (I: description of products; II: level
of Hungarian exports).
These voluntary restraint measures and the administration thereof shall,
by analogy, be subject to the same conditions as those applying to exports of
products in Group III covered by the Agreement between the Community and the
Hungarian People's Republic on trade in textile products. The same applies
to the references in the said Annexes I and II made to Articles of the
Agreement.'
The entry into force and duration of the arrangements provided for by the
above clauses shall be the same as those of the Agreement.
I should be obliged if you would confirm that the foregoing is in accordance
with the conclusions reached following the negotiations on this question
between the European Economic Community and the Hungarian People's Republic."
Please accept, Sir, the assurance of my highest consideration.
                                        For the Government of the People's
                                            Republic of Hungary
 ---pagebreak---                                    ANNEX   I
Category                  Description                  Nimexe code
                                                                  (1982)
     115    Flax or ramie yarn, not pet up for         3« 0 3 -1 0 ; 51; 55; j>7;
            retail sale                                39; 5 0 , * | ; 6 9
     tit   Flax or ramie yarn, put up for retail       54 04-10; 90
           sale
    It7    Woven fabrics of flax or of ramie          54.0 5-21 ; 25; 3 1 ; 55;
                                                      31; 51; 55; 61; 45
    lit    Bed linen of flax or ramie, other than   , 62.02-15
           knitted or crocheted
    115
          Table Ljnen, toilet linen and kitchen
           linen of flax or ramie, other than         62 02-41; 73
          knitted or crocheted
    120
          Curtains (including net curtains) and
          other furnishing articles, of flax or       62 0 2 - 0 1 , 1 7
          ramie, other than knitted or crocheted
    12!  Twine, cordage, ropes and cables,            59 04-60
         plaited or not, of flax or ramie
    122
         Sacks and bags, of a king used for the
         packing of goods, used, of flax, or sisal    6 2 0 3 -9 1
                                                   r
         Pther than knitted or crocheted
         Woven pile fabrics and chenille fabrics,
    125  pf flax or ramie, other than narrow          58.04-        80
         J oven fabrics.
         Shawls, scarves, mufflers, mantillas         61.04-        90
         veils and the like, of flax or ramie,
         >tner than knitted or crocheted-
 ---pagebreak---                           -    3 3   -
                               ANNEX II
                    Community quantitative Limits
Category         Description                      Year Quantitative
                                          Units        limits EEC
  117    Woven fabrics of flax or of    Tonnes    1983     490
         ramie                                    1984     505
                                                  1985     520
                                                  1986     535