WORLD TRADE G/TMB/N/256
18July1997
ORGANIZATION(97-3151)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
EUROPEAN COMMUNITY
Administrative Arrangements withMalaysia
TheTextiles Monitoring Body hasreceived anotification from theEuropean Commission
pursuant toparagraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members
fortheirinformation.G/TMB/N/256
Page2
European Commission
Directorate-General I
Brussels, 26September 1996
Dear Ambassador,
Iwould liketosubmit totheTextiles Monitoring Body theAdministrative Arrangements which
have been agreed between theEuropean Community andthePeople 'sRepublic ofBangladesh*,
Hong Kong, India, theRepublic ofIndonesia, theRepublic ofKorea, Macau, theFederation of
Malaysia**,Pakistan, Peru, theRepublic ofSingapore, SriLanka andtheKingdom ofThailand under
Article 2(17) oftheAgreement onTextiles andClothing.
Ithasbeenagreed between theCommission andtheauthorities ofthecountries concerned that
these provisions should benotified jointly. Theoriginal textsofthese jointnotifications areattached.
Please accept, Ambassador, theassurance ofmyhighest consideration.
(Signed) Enrico GRILLO PASQUARELLI
Ambassador Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
RuedeLausanne, 154
CH-1211 Geneva 21
*Thisnotification waswithdrawn attherequest oftheEuropean Commission.
**This document contains theAdministrative Arrangements concluded with Malaysia. Administrative
Arrangements concluded withtheother Members listed above willbecirculated asseparate documents.G/TMB/N/256
Page3
Brussels, 25September 1996
Dear Ambassador,
Theundersigned representatives oftheEuropean Community andtheFederation ofMalaysia
would liketonotify totheTextiles Monitoring Body oftheAdministrative Arrangements which have
beenagreed between theEuropean Community andtheFederation ofMalaysia under Article 2(17)
oftheAgreement onTextiles andClothing (ATC) -thetextofwhich isattached.
Please accept, Ambassador, theassurance ofourhighest consideration.
(Signed) Representative oftheFederation ofMalaysia (Signed) Representative
totheEuropean Communities European Community
Mr.Mohd Dom Mohd Zain Enrico Grillo Pasquarelli
Minister Counsellor Head ofUnit
Ambassador Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
RuedeLausanne, 154
CH-1211 Geneva 21G/TMB/N/256
Page4
Provisions oftheAgreement between theEuropean Economic Community andMalaysia on
trade intextile products, initialled inBrussels on28June1986, asamended bytheAgreement inthe
formofanExchange ofLetters amending theAgreement between theEuropean Economic Community
andMalaysia ontrade intextile products, initialled inBrussels, on3December 1992, which willbe
notified asadministrative arrangements under Article 2(17) oftheUruguay Round Textiles Agreement.
Article Description
Section 1:Trade arrangements
Article 2(3) Determination oforigin ofcovered products
Article 4 Reimports afterOPT
Article 5 Cottage industry
Article 6 Imports toECforre-export afterprocessing
Article 9,asamended Exchange ofstatistical information
Article 10 Amendments toclassification
Article 11 Circumvention
Article 12,asamended Regional concentration
Article 16(1) asamended Consultations
Protocol A,asamended Classification,
Origin,
Double checking,
Export certificates,
Certificate oforigin etc.,
Export certificate etc.,
Administrative cooperation,
Specimen ofexport licence (textiles) Form 5,
Specimen ofcertificate oforigin
Protocol B Cottage industry
Protocol E OPToperations
Joint Declaration (1986) Batik fabrics andproducts thereof
Agreed Minute No.2(1992) Temporary specific management system
Agreed Minute No.3(1992) Regions withtraditionally small quotas
Note Verbale (1992) Refers toAgreed Minute No.2(1992)
Agreed Minute No.4(1992) Regional concentrationG/TMB/N/256
Page5
ANNEX
Administrative Arrangements Between the
European Community andMalaysia
Thefollowing Annex reproduces infullforthebenefit ofMembers thetextsoftheprovisions
ofthebilateral agreement between theEuropean Economic Community andMalaysia asamended,
which arereferred tobyreference toArticle numbers inthenotification oftheadministrative
arrangements totheTextiles Monitoring Body ("TMB") pursuant toparagraph 17ofArticle 2ofthe
Agreement onTextiles andClothing ("ATC").
Where theprovisions referto"theAgreement" thereference istoaprovision ofthebilateral
agreement between theparties (andnottoArticles oftheATC).
Certain Articles referred tointhetextsdonotformpartoftheadministrative arrangements.
Theprovisions ofthese Articles haveeither beennotified totheTMB (e.g.thequantitative limits in
question andtherelevant flexibility provisions orareprovisions which arenotintended toformpart
oftheadministrative arrangements. These provisions havebeenidentified bywayoffootnotes and
itshould therefore benoted thatthefootnotes areintended forexplanation anddonotform partof
theprovisions themselves.G/TMB/N/256
Page6
Article 2
3. Theorigin oftheproducts covered bythisAgreement shallbedetermined inaccordance with
therules inforce intheCommunity.
Anyamendment totheserulesoforigin shallbecommunicated toMalaysia andshallnothave
theeffect ofreducing anyquantitative limitestablished inAnnex II.1
Theprocedures forcontrol oftheorigin oftheproducts referred toabove arelaiddown in
Protocol A.
Article 4
Malaysia andtheCommunity recognize thespecial anddifferential character ofreimports of
textile products intotheCommunity afterprocessing inMalaysia.
Provided thattheyareeffected inaccordance withtheregulations oneconomic outward
processing inforce intheCommunity, these reimports arenotsubject tothequantitative limits set
outinAnnex IIwhen theyaresubject tothespecific arrangements laiddown inProtocol E.
Article 5
Exports ofcottage industry fabrics woven onhand- orfoot-operated looms, garments orother
articles obtained manually fromsuchfabrics andtraditional folklore handicraft products shallnotbe
subject toquantitative limits, provided thatthese products meettheconditions laiddown Protocol B.
Article 6
1. Imports intotheCommunity oftextile products covered bythisAgreement shallnotbesubject
tothequantitative limits established inAnnex II2,provided thattheyaredeclared tobeforre-export
outside theCommunity inthesamestateorafterprocessing, within theframework oftheadministrative
system ofcontrol which exists within theCommunity.
However, therelease forhome useofproducts imported under theconditions referred toabove
shallbesubject totheproduction ofanexport certificate issued bytheMalaysian authorities, andto
proof oforigin inaccordance withtheprovisions ofProtocol A.
2. Where theCommunity authorities haveevidence thatimports oftextile products havebeen
setoffagainst aquantitative limit established under thisAgreement, butthattheproducts have
subsequently been re-exported outside theCommunity, theauthorities concerned shall inform the
Malaysian authorities within fourweeks ofthequantities involved andauthorize imports ofidentical
quantities ofthesame products, which shallnotbesetoffagainst thequantitative limitestablished
under thisAgreement forthecurrent orthefollowing year.
1These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
2These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/256
Page7
Article 9
1. Malaysia undertakes tosupply theCommunity withprecise statistical information onallexport
licencesissuedbytheMalaysianauthoritiesforallcategoriesoftextileproductssubjecttothequantitative
limits established under thisAgreement aswellasonallcertificates issued bytheMalaysian authorities
forallproducts referred toinArticle 5andsubject totheprovisions ofProtocol B.
TheCommunityshalllikewisetransmittotheMalaysianauthoritiesprecisestatisticalinformation
onimport authorizations ordocuments issued bytheCommunity authorities inrespect ofexport licences
andcertificates issued byMalaysia.
2. "Theinformation referred toinparagraph 1shall, forallcategories ofproducts, beforwarded
before theendofthemonth following themonth towhich thestatistics relate."
3. Malaysia willtotheextent possible transmit totheCommunity available statistical information
onalltextile exports bycountry ofdestination.
TheCommunity shalltransmit totheMalaysian authorities import statistics forallproducts
covered bythesystem ofadministrative control referred toinArticle 8,paragraph 23andforproducts
covered byArticle 6(1).
4. Theinformation referred toinparagraph 3shall, forallcategories ofproducts, betransmitted
before theendofthethirdmonth following thequarter towhich thestatistics relate.
5. Should itbefound onanalysis oftheinformation exchanged thatthere aresignificant
discrepancies between thereturns forexports andthose forimports, consultations maybeinitiated
inaccordance withtheprocedure specified inArticle 16.
6. Forthepurpose ofapplying theprovisions ofArticle 84,theCommunity undertakes toprovide
theMalaysian authorities before 15April ofeachyearwiththepreceding year'sstatistics onimports
ofalltextile products covered bythisAgreement, broken down bysupplying country andCommunity
member State.
Article 10
1. Incaseofdivergent opinions between Malaysia andthecompetent Community authorities at
thepoint ofentry intotheCommunity ontheclassification ofproducts covered bythisAgreement,
classification shall provisionally bebased onindications provided bytheCommunity, pending
consultations inaccordance withArticle 16withaviewtoreaching agreement ondefinitive classification
oftheproduct concerned.
2. Iftheabove provisional classification results inprovisional debit against aquantitative limit
foracategory ofproducts other thanthecategory indicated ontheexport documents issued bythe
competent Malaysian authorities, theCommunity shallinform Malaysia ofsuchprovisional debitwithin
30days.
3Thisprovision related toa"basket exit" mechanism.
4Thisprovision related toa"basket exit" mechanism.G/TMB/N/256
Page8
3. Theauthorities ofMalaysia shallbeinformed ofanyamendment tothetariff andstatistical
nomenclatures inforce intheCommunity oranydecision, made inaccordance withtheprocedures
inforce intheCommunity, relating totheclassification ofproducts covered bythisAgreement.
Anyamendment tothetariff andstatistical nomenclatures inforce intheCommunity orany
decision which results inamodification oftheclassification ofproducts covered bythisAgreement
shallnothavetheeffect ofreducing anyquantitative limitestablished inAnnex II.5
Theprocedures fortheapplication ofthisparagraph aresetoutinProtocol A.
Article 11
1. Malaysia andtheCommunity agree tocooperate fullyinpreventing thecircumvention ofthis
Agreement bytranshipment, rerouting orwhatever other means.
2. Where information available totheCommunity asaresult oftheinvestigations carried out
inaccordance withtheprocedures setoutinProtocol Aconstitutes evidence thatproducts ofMalaysian
origin subject toquantitative limits established under thisAgreement havebeentranshipped, rerouted
orotherwise imported intotheCommunity incircumvention ofthisAgreement, theCommunity may
request theopening ofconsultations inaccordance withtheprocedures described inArticle 16,with
aview toreaching agreement onanequivalent adjustment ofthecorresponding quantitative limits
established under thisAgreement.
3. Pending theresult oftheconsultations referred toinparagraph 2,Malaysia shall asa
precautionary measure, ifsorequested bytheCommunity make thenecessary arrangements toensure
thatadjustments ofquantitative limits liable tobeagreed following theconsultations referred toin
paragraph 2,maybecarried outforthequota yearinwhich therequest toopen consultations in
accordance withparagraph 2wasmade, orforthefollowing yearifthequota forthecurrent yearis
exhausted, where clear evidence ofcircumvention isprovided.
4. Should theParties beunable inthecourse ofconsultations toreach asatisfactory solution within
theperiod specified inArticle 16,theCommunity shall have theright, where clear evidence of
circumventionhasbeenprovided,todeductfromthequantitativelimitsestablishedunderthisAgreement
amounts equivalent totheproducts ofMalaysian origin.
Article 12
"1. Thequantitative limits established under thisAgreement onimports intotheCommunity of
textile products ofMalaysian origin willnotbebroken down bytheCommunity intoregional shares.
2. TheParties shallcooperate inorder toprevent sudden andprejudicial changes intraditional
trade flows resulting inregional concentration ofdirect imports intotheCommunity.
3. MalaysiashallmonitoritsexportsofproductsunderrestraintorsurveillanceintotheCommunity.
Should asudden andprejudicial change intraditional tradeflows arise, theCommunity willbeentitled
torequest consultations inorder tofindasatisfactory solution tothose problems. Suchconsultations
must beheldwithin 15working daysoftheirbeing requested bytheCommunity.
5These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/256
Page9
4. Malaysia shallendeavour toensure thatexports oftextile products subject toquantitative limits
intotheCommunity arespaced outasevenly aspossible overtheyeardueaccount being taken in
particular ofseasonal factors."
Article 16
"1. Savewhere itisotherwise provided forinthisAgreement,
Thespecial consultation procedures referred tointhisAgreement shallbegoverned bythe
following rules:
- anyrequest forconsultations shallbenotified inwriting totheother party;
- therequest forconsultations shallbefollowed within areasonable period (andinany
casenotlaterthan15daysfollowing thenotification) byastatement setting outthe
reasons andcircumstances which, intheopinion oftherequesting Party, justify the
submission ofsucharequest;
- theParties shallenter intoconsultations within onemonth atthelatest ofnotification
oftherequest, withaviewtoreaching agreement oramutually acceptable conclusion
within onefurther month atthelatest."G/TMB/N/256
Page10
PROTOCOL A
TITLE I
Classification
Article 1
1. Thecompetent authorities oftheCommunity undertake toinform Malaysia ofanychanges
inthetariff andstatistical nomenclatures before thedateoftheirentry intoeffect intheCommunity.
2. Thecompetent authorities oftheCommunity undertake toinform Malaysia ofanydecisions
relating totheclassification ofproducts subject totheAgreement within onemonth oftheiradoption
atthelatest. Such communication shallinclude:
(a) Adescription oftheproducts concerned;
(b) therelevant category andtherelated tariff andstatistical references;
(c) thereasons which haveledtothedecision.
3. Where adecision onclassification results inachange ofclassification practice orachange
ofcategory ofanyproduct subject totheAgreement, thecompetent authorities oftheCommunity shall
provide 30days'notice, fromthedateoftheCommunity 'scommunication, before thedecision isput
intoeffect. Products shipped before thedateofapplication ofthedecision shallremain subject tothe
earlier classification practice, provided thatthegoods inquestion arepresented forimportation into
theCommunity within 60daysofthatdate.
4. Where aCommunity decision onclassification resulting inachange ofclassification practice
orachange ofcategorization ofanyproduct subject totheAgreement affects acategory subject to
restraint, thetwoparties agree toenterintoconsultations inaccordance withtheprocedures described
inArticle 16(1) oftheAgreement withaviewtohonouring theobligation under thesecond subparagraph
ofArticle 10(3) oftheAgreement.
TITLE II
Origin
Article 2
1. Products originating inMalaysia forexport totheCommunity inaccordance with the
arrangements established bythisAgreement shallbeaccompanied byacertificate ofMalaysian origin
conforming tothemodel annexed tothisProtocol.
2. Thecertificate oforigin shallbeissued bythecompetent governmental authorities ofMalaysia
iftheproducts inquestion canbeconsidered products originating inthatcountry within themeaning
oftherelevant rules inforce intheCommunity.G/TMB/N/256
Page11
3. However, theproducts inGroup III6maybeimported intotheCommunity inaccordance with
thearrangements established bythisAgreement onproduction ofadeclaration bytheexporter onthe
invoice orother commercial document relating totheproducts totheeffect thattheproducts inquestion
originate inMalaysia within themeaning oftherelevant rules inforce intheCommunity.
4. Thecertificate oforigin referred toinparagraph 1shallnotberequired forimport ofgoods
covered byacertificate ororigin Form AorForm APR completed inaccordance withtherelevant
Community rules inorder toqualify forgeneralized tariff preferences.
Article 3
Where different criteria fordetermining origin arelaiddown forproducts falling within the
same category, certificates ordeclarations ororigin shallcontain asufficiently detailed description
ofthegoods toenable thecriterion tobedetermined onthebasis ofwhich thecertificate wasissued
orthedeclaration drawn up.
Article 4
Thediscovery ofslight discrepancies between thestatements made inthecertificate ororigin
andthose made inthedocuments produced tothecustoms office forthepurpose ofcarrying outthe
formalities forimporting theproduct shallnotipsofactocastdoubt uponthestatements inthecertificate.
TITLE III
Double Checking System forCategories of
Products withQuantitative Limits
Section I
Exportation
Article 5
ThecompetentauthoritiesofMalaysiashallissueanexportlicenceinrespectofallconsignments
fromMalaysia oftextile products referred toinAnnex II7uptotherelevant quantitative limits asmay
bemodified byArticles 78,139and1410oftheAgreement andoftextile products subject toanydefinitive
orprovisional quantitative limits established asaresult oftheapplication ofArticle 811oftheAgreement.
6Thisrelates totheEuropean Community 'sgroupings ofcategories ofproducts.
7These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
8TheseprovisionsrelatetoflexibilitiesandhavebeennotifiedbytheEuropeanCommunitypursuanttoArticle2
oftheATC.
9Thisprovision related toproratacalculations intheevent ofdenunciation oftheAgreement.
10Thisprovision concerned asystem ofregional shares.
11Thisprovision related toa"basket exit" mechanism.G/TMB/N/256
Page12
Article 6
"1. Theexport licence shallconform tothemodel annexed tothisProtocol anditshallbevalid
forexports throughout thecustoms territory towhich theTreaty establishing theEuropean Economic
Community isapplied. However, where theCommunity hasmade recourse totheprovisions of
Article 812inaccordance withtheprovisions oftheAgreed Minute No.1, ortotheAgreed Minute
No.2,thetextile products covered bytheexport licences canonlybeputintofreecirculation inthe
region(s) oftheCommunity indicated inthose licences."
Itmust certify interaliathatthequantity oftheproduct inquestion hasbeensetoffagainst
thequantitative limitprescribed forthecategory oftheproduct inquestion.
2. Each export licence shallonlycover oneofthecategories ofproducts listed inAnnex II13of
thisAgreement. Itmaybeusedforoneormore consignments oftheproducts inquestion.
3. Where theconversion rateprovided forinAnnex II14isapplied thefollowing notemust be
inserted inbox9oftheexport licence: "conversion rateforgarments ofacommercial sizenotexceeding
130cm.istobeapplied".
Article 7
Thecompetent Community authorities mustbenotified forthwith ofthewithdrawal oralteration
ofanyexport licence already issued.
Article 8
1. Exports shallbesetoffagainst thequantitative limits established fortheyearinwhich shipment
ofthegoods hasbeeneffected, eveniftheexport licence isissued aftersuchshipment.
2. Forthepurpose ofapplying paragraph 1,shipment ofthegoods isconsidered tohavetaken
place onthedateoftheirloading ontotheexporting aircraft, vehicle orvessel.
Article 9
Thepresentation ofanexport licence, inapplication ofArticle 11,shallbeeffected notlater
than31March oftheyearfollowing thatinwhich thegoods covered bythelicence havebeenshipped.
Section II
Importation
Article 10
Importation intotheCommunity oftextile products subject toquantitative limits shallbesubject
tothepresentation ofanimport authorization ordocument.
12Thisprovision related toa"basket exit" mechanism.
13These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
14These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/256
Page13
Article 11
1. Thecompetent Community authorities shall issue suchimport authorization ordocument
automatically within fiveworking daysofthepresentation bytheimporter oftheoriginal ofthe
corresponding export licence.
"Theimport authorizations shallbevalidforsixmonths fromthedateoftheirissueforimports
throughout thecustoms territory towhich theTreaty establishing theEuropean Economic Community
isapplied. However, where theCommunity hasrecourse totheprovisions ofArticle 815inaccordance
withtheprovisions oftheAgreed Minute No.1,ortheAgreed Minute No.2,theproducts covered
bytheimport licences canonlybeputintofreecirculation intheregion(s) oftheCommunity indicated
inthose licences."
2. Thecompetent Community authorities shallcancel thealready issued import authorization or
document ifthecorresponding export licence hasbeenwithdrawn.
However, ifthecompetent Community authorities havenotbeennotified ofthewithdrawal
orcancellation oftheexport licence onlyaftertheproducts havebeenimported intotheCommunity,
thequantities involved shallbesetoffagainst thequantitative limitforthecategory andthequota year
inquestion.
Article 12
1. Ifthecompetent Community authorities findthatthetotalquantities covered byexport licences
issued byMalaysia foraparticular category inanyAgreement yearexceed thequantitative limit
established inAnnex II16forthatcategory, asmaybemodified byArticles 717,1318and1419ofthe
Agreement, oranydefinitive orprovisional limitestablished under Article 820oftheAgreement, the
saidauthorities maysuspend thefurther issue ofimport authorizations ordocuments. Inthisevent,
thecompetent Community authorities shallimmediately inform theauthorities ofMalaysia andthe
special consultation procedure setoutinArticle 16oftheAgreement shallbeinitiated forthwith.
2. Exports ofMalaysian origin notcovered byMalaysian export licences issued inaccordance
withtheprovisions ofthisProtocol mayberefused theissue ofimport authorizations ordocuments
bythecompetent Community authorities.
15Thisprovision related toa"basket exit" mechanism.
16These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
17These provisions relate toflexibilities andhave been notified bytheEuropean Community pursuant to
Article 2oftheATC.
18Thisprovision related toproratacalculations intheevent ofdenunciation oftheAgreement.
19Thisprovision concerned asystem ofregional shares.
20Thisprovision related toa"basket exit" mechanism.G/TMB/N/256
Page14
However, iftheimport ofsuchproducts isallowed intotheCommunity bythecompetent
Community authorities, thequantities involved shallnotbesetoffagainst theappropriate quantitative
limits setoutinAnnex IIorestablished asaresult oftheapplication ofArticle 821oftheAgreement,
without theexpress agreement ofMalaysia, saveasprovided forinArticle 11oftheAgreement.
FORM AND PRODUCTION OFEXPORT CERTIFICATES AND CERTIFICATES
OFORIGIN, AND COMMON PROVISIONS
Article 13
1. Theexport licence andthecertificate oforigin maycomprise additional copies dulyindicated
assuch. They shallbemade outinEnglish orFrench. Iftheyarecompleted byhand, entries must
beininkandinblock capitals.
These documents shallmeasure 210x297mm. Thepaper usedmustbewhite writing paper,
sized, notcontaining mechanical pulpandweighing notlessthat25g/m2.Eachpartshallhaveaprinted
guilloche-pattern background making anyfalsification bymechanical orchemical means apparent to
theeye.
Ifthedocuments haveseveral copies onlythetopcopywhich istheoriginal shallbeprinted
withtheguilloche-pattern background. Thiscopyshallbeclearly marked as"original" andtheother
copies as"copy". Onlytheoriginal shallbeaccepted bythecompetent authorities intheCommunity
asbeing valid forthepurposes ofexport totheCommunity inaccordance withthearrangements
established bythisAgreement.
2. Each document shallbearastandardized serial number, whether ornotprinted, bywhich it
canbeidentified.
Thisnumber shallbecomposed ofthefollowing elements:
- twoletters identifying Malaysia asfollows: MY,
"- twoletters identifying theintended Member State ofcustoms clearance asfollows:
AT = Austria
BL = Benelux
DE = Federal Republic ofGermany
DK = Denmark
EL = Greece
ES = Spain
FI = Finland
FR = France
GB = United Kingdom
IE = Ireland
IT = Italy
PT = Portugal
SE = Sweden"
21Thisprovision related toa"basket exit" mechanism.G/TMB/N/256
Page15
- aone-digit number identifying quota year, corresponding tothelastfigure inyear,
e.g.7for1987,
- atwo-digit number running consecutively from01to99identifying theissuing office,
- afive-digit number running consecutively from00001 to99999 allocated totheintended
member State ofcustoms clearance."
Article 14
Theexport licence andcertificate oforigin maybeissued aftertheshipment oftheproducts
towhich theyrelate. Insuchcases theyshallbeareither theendorsement "délivré aposteriori" or
theendorsement "issued retrospectively".
Article 15
1. Intheevent oftheft, lossordestruction ofanexport licence orcertificate oforigin, theexporter
mayapply tothecompetent governmental authority which issued thedocument foraduplicate tobe
made outonthebasisoftheexport documents inhispossession. Theduplicate ofanysuchcertificate
orlicence soissued shallbeartheendorsement "duplicata".
2. Theduplicate must bearthedateoftheoriginal export licence orcertificate oforigin.
TITLE V
Administrative Cooperation
Article 16
TheCommunity andMalaysia shall cooperate closely toimplement theprovisions ofthis
Agreement. Tothisend,contacts andexchanges ofviews (including ontechnical matters) shallbe
facilitated bybothparties.
Article 17
Inorder toensure thattheAgreement isproperly applied, theCommunity andMalaysia shall
assist eachother inchecking theauthenticity andaccuracy ofexport licences andcertificates oforigin
issued ordeclaration made under thisProtocol.
Article 18
Malaysia shallsendtheCommission oftheEuropean Communities thenames andaddresses
ofthegovernmental authorities competent fortheissueandverification ofexport licences andcertificates
oforigin together withspecimens ofthestamps usedbythese authorities. Malaysia shallalsonotify
theCommission ofanychange inthisinformation.
Article 19
1. Subsequent verification ofcertificates oforigin orexport licences shallbecarried outatrandom,
orwhenever thecompetent Community authorities havereasonable doubt astotheauthenticity ofthe
certificate orlicence orastotheaccuracy oftheinformation regarding theproducts inquestion.G/TMB/N/256
Page16
2. Insuchcases thecompetent authorities intheCommunity shallreturn thecertificate oforigin
orexport licence oracopythereof tothecompetent governmental authority inMalaysia giving, where
appropriate, thereasons offormorsubstance foranenquiry. Iftheinvoice hasbeensubmitted, such
invoice oracopythereof shallbeattached tothecertificate orlicence oritscopy. Theauthorities
shallalsoforward anyinformation thathasbeenobtained suggesting thattheparticulars given onthe
saidcertificate orlicence areinaccurate.
3. Theprovisions ofparagraph 1shallbeapplicable tosubsequent verifications ofthedeclarations
oforigin referred toinArticle 2ofthisProtocol.
4. Theresults ofthesubsequent verifications carried outinaccordance withparagraphs 1and
2shallbecommunicated tothecompetent authorities oftheCommunity within three months atthe
latest. Theinformation communicated shallindicate whether thedisputed certificate orlicence or
declaration applied tothegoods actually exported andwhether thesegoods actually exported andwhether
thesegoods areeligible forexport inaccordance withthearrangements established bythisAgreement.
Theinformation, shallalsoinclude, attherequest oftheCommunity, copies ofalldocumentation
necessary todetermine thefactsfullyandinparticular thetrueorigin ofthegoods.
Should suchverifications reveal systematic irregularities intheuseofdeclaration oforigin,
theCommunitymaysubjectimportsoftheproductsinquestiontotheprovisionsofArticle2paragraph1
ofthisProtocol.
5. Forthepurpose ofsubsequent verification ofcertificates oforigin, copies ofthecertificates
aswellasanyexport documents referring tothemshallbekeptforatleasttwoyears bythecompetent
governmental authority inMalaysia.
6. Recourse totherandom verification procedure specified inthisArticle mustnotconstitute an
obstacle totherelease forhome useoftheproducts inquestion.
Article 20
1. Where theverification procedure referred toinArticle 19orwhere information available to
theCommunity ortoMalaysia indicates orappears toindicate thattheprovisions ofthisAgreement
arebeing contravened, bothparties shallcooperate closely andwithappropriate urgency toprevent
suchcontravention.
2. TothisendMalaysia shallonitsowninitiative orattherequest oftheCommunity, carry out
appropriate enquiries orarrange forsuchenquiries tobecarried outconcerning operations which are,
orappear tobetheCommunity tobeincontravention ofthisAgreement. Malaysia shallcommunicate
theresults ofthese enquiries totheCommunity together withanyother pertinent information enabling
thetrueorigin ofthegoods tobedetermined.
3. Subject toagreement between theCommunity andMalaysian officials designated bythe
Community maybepresent attheenquiries referred toabove.
4. Inpursuance ofthecooperation referred toinparagraph 1,Malaysia andtheCommunity shall
exchange anyinformation considered byeither party tobeofuseinpreventing thecontravention of
theprovisions oftheAgreement. These exchanges mayinclude information ontextile production in
Malaysia andontrade intextile products ofakindcovered bythisAgreement between Malaysia and
other countries, particularly where theCommunity hasreasonable grounds toconsider thattheproducts
inquestion maybeintransit across theterritory ofMalaysia prior totheir importation intotheG/TMB/N/256
Page17
Community. Thisinformation shallinclude attherequest oftheCommunity copies ofallrelevant
documentation.
5. Where itisestablished thattheprovisions ofthisAgreement havebeencontravened, Malaysia
andtheCommunity mayagree totakesuchmeasures asarenecessary toprevent arecurrence ofsuch
contravention.G/TMB/N/256
Page18
ANNEX TOPROTOCOL A,ARTICLE 2(1) Appendix III
1.Exporter (name, fulladdress, country)
Exportateur (nom, adresse complète, pays)ORIGINAL 2.No.
3.Quota year
Année contingentaire4.Category number
Numéro decatégorie
5.Consignee (name, fulladdress, country)
Destinataire (nom, adresse complète, pays)CERTIFICATE OFORIGIN
(Textile products)
______________________________
CERTIFICAT D'ORIGINE
(Produits textiles)
6.Country oforigin
Paysd'origine7.Country ofdestination
Paysdedestination
8.Place anddateofshipment -Means oftransport
Lieuetdated'embarquement -Moyen detransport9.Supplementary details
Données supplémentaires
10.Marks andnumbers -Number andkindofpackages -DESCRIPTION OFGOODS
Marques etnuméros -Nombre etnature descolis-DESIGNATION DESMARCHANDISES11.Quantity1
Quantité112.F.o.b. value2
Valeur f.o.b.2
13.CERTIFICATION BYTHE COMPETENT AUTHORITY/VISA DEL'AUTORITE COMPETENTE
I,theundersigned, certify thatthegoods described above originated inthecountry shown inboxNo.6,inaccordance withthe
provisions inforce intheEuropean Community.
Jesoussigné certifie quelesmarchandises désignées ci-dessus sontoriginaires dupaysfigurant danslacase6,conformément
auxdispositions envigueur danslaCommunauté européenne.
14.Competent authority (name, fulladdress, country)
Autorité compétente (nom, adresse complète, pays) At/A ..................................... On/le ..............................
(Signature) (Stamp -Cachet)
1Show theweight (kg.) andalsoquantity intheunitprescribed forcategory where other thannetweigh/Indiquer lepoids netenkilogrammes ainsique
laquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/256
Page19
ANNEX TOPROTOCOL A,ARTICLE 7(1) Appendix IV
1.Exporter (name, fulladdress, country)
Exportateur (nom, adresse complète, pays)ORIGINAL 2.No.
3.Quota year
Année contingentaire4.Category number
Numéro decatégorie
5.Consignee (name, fulladdress, country)
Destinataire (nom, adresse complète, pays)EXPORT LICENCE
(Textile products)
______________________________
LICENCE D'EXPORTATION
(Produits textiles)
6.Country oforigin
Paysd'origine7.Country ofdestination
Paysdedestination
8.Place anddateofshipment -Means oftransport
Lieuetdated'embarquement -Moyen detransport9.Supplementary details
Données supplémentaires
10.Marks andnumbers -Number andkindofpackages -DESCRIPTION OFGOODS
Marques etnuméros -Nombre etnature descolis-DESIGNATION DESMARCHANDISES11.Quantity1
Quantité112.F.o.b. value2
Valeur f.o.b.2
13.CERTIFICATION BYTHE COMPETENT AUTHORITY/VISA DEL'AUTORITE COMPETENTE
I,theundersigned, certify thatthegoods described above havebeencharged against thequantitative limitestablished forthe
yearshown inboxNo.3inrespect ofthecategory shown inboxNo.4bytheprovisions regulating trade intextile products
withtheEuropean Community.
Jesoussigné certifie quelesmarchandises désignées ci-dessus ontétéimputées surlalimite quantitative fixée pourl'année
indiquée danslacase3pourlacatégorie désignée danslacase4danslecadre desdispositions régissant leséchanges de
produits textiles aveclaCommunauté européenne.
14.Competent authority (name, fulladdress, country)
Autorité compétente (nom, adresse complète, pays) At/A .................................... On/le ..............................
(Signature) (Stamp -Cachet)
1Show theweight (kg.) andalsoquantity intheunitprescribed forcategory where other thannetweight/Indiquer lepoids netenkilogrammes ainsique
laquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/256
Page20
PROTOCOL B
1. Theexemption provided forinArticle 5oftheAgreement inrespect ofcottage industry products
shallapply onlytothefollowing products:
(a) Fabrics woven onhand- orfoot-operated looms, being fabrics ofakindtraditionally
made inthecottage industry ofMalaysia;
(b) garments orother textile articles ofakindtraditionally made inthecottage industry
ofMalaysia obtained manually fromthefabrics referred toabove andsewnexclusively
byhandwithout theaidofamachine;
(c) traditional folklore textile products ofMalaysia made byhandinthecottage industry
ofMalaysia asdefined inalisttobeagreed between bothparties.
Exemption shall begranted onlyforproducts accompanied byacertificate issued bythe
competent Malaysian authorities inaccordance withthespecimen annexed tothisProtocol. Such
certificates shallstatetheground onwhich exemption isbased andshallbeaccepted bythecompetent
Community authorities provided thattheyaresatisfied thattheproducts concerned conform tothe
condition setoutinthisProtocol. Certificates covering theproducts referred toinparagraph (c)above
shallbearaconspicuous stamp: "FOLKLORE". Incaseofdivergent opinion between Malaysian
andthecompetent Community authorities atthepoint ofentry intoCommunity astothenature of
suchproducts, consultations shallbeheldwithin onemonth withaviewtoresolving suchdivergences.
Should imports ofanyoftheabove products reach suchproportions astocause difficulties tothe
Community, thetwoParties shallopenconsultations forthwith inaccordance withtheprocedure laid
down inArticle 16oftheAgreement withaviewtofinding aquantitative solution totheproblem.
2. Theprovisions ofTitleIVandVofProtocol Ashallapply "mutadis mutandis" totheproducts
referred toinparagraph 1ofthisProtocol.G/TMB/N/256
Page21
ANNEX TOPROTOCOL B Appendix V
1.Exporter (name, fulladdress, country)
Exportateur (nom, adresse complète, pays)ORIGINAL 2.No.
CERTIFICATE inregard toHANDLOOMS, TEXTILE
HANDICRAFTS andTRADITIONAL TEXTILE PRODUCTS,
OFTHE COTTAGE INDUSTRY, issued inconformity withand
under theconditions regulating trade intextile products withthe
European Community
_______________________
CERTIFICAT relatif auxTISSUS, TISSES SUR METIERS A
MAIN, auxPRODUITS TEXTILES FAITS ALAMAIN, etaux
PRODUITSTEXTILESRELEVANTDUFOLKLORE
TRADITIONNEL, DEFABRICATION ARTISANALE, délivré
enconformité avecetsouslesconditions régissant leséchanges de
produits textiles aveclaCommunauté européenne3Consignee (name, fulladdress, country)
Destinataire (nom, adresse complète, pays)
4.Country oforigin
Paysd'origine5.Country ofdestination
Paysdedestination
6.Place anddateofshipment -Means oftransport
Lieuetdated'embarquement -Moyen detransport7.Supplementary details
Données supplémentaires
8.Marks andnumbers -Number andkindofpackages -DESCRIPTION OFGOODS
Marques etnuméros -Nombre etnature descolis-DESIGNATION DESMARCHANDISES9.Quantity
Quantité10.F.o.b. value1
Valeur f.o.b.1
11.CERTIFICATION BYTHE COMPETENT AUTHORITY/VISA DEL'AUTORITE COMPETENTE
I,theundersigned, certify thattheconsignment described above includes onlythefollowing textile products ofthecottage
industry ofthecountry shown inboxNo.4:
(a)fabrics woven onlooms operated solely byhand orfoot(handlooms)2;
(b)garments orother textile articles obtained manually from thefabrics described under (a)andsewn solely byhand without
theaidofanymachine (handicrafts)2;
(c)traditional folklore handicraft textile products made byhand, asdefined inthelistagreed between theEuropean Community
andthecountry shown inboxNo.4.
Jesoussigné certifie quel'envoi décrit ci-dessus contient exclusivement lesproduits textiles suivants relevant delafabrication
artisanale dupaysfigurant danslacase4:
a)tissus tissés surdesmétiers actionnés àlamain ouaupied(handlooms)2;
b)vêtements ouautres articles textiles obtenus manuellement àpartir detissus décrits sousa)etcousus uniquement àlamain
sansl'aided'unemachine (handicrafts)2;
c)produits textiles relevant dufolklore traditionnel fabriqués àlamain, comme définis danslalisteconvenue entre la
Communauté européenne etlepaysindiqué danslacase4.
12Competent authority (name, fulladdress, country)
Autorité compétente (nom, adresse complète, pays) At/A .................................... On/le ..............................
(Signature) (Stamp -Cachet)
1Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.
2Delete asappropriate/Biffer la(les)mention(s) inutile(s).G/TMB/N/256
Page22
PROTOCOL E
Reimports inthesense ofArticle 4paragraph 2ofthisAgreement intotheCommunity of
products listed intheAnnex tothisProtocol shallbesubject totheprovisions oftheAgreement except
asspecifically provided forbytheparticular provisions setoutbelow:
1. Only reimports intotheCommunity subject tothespecific quantitative limits setoutinthe
annex totheProtocol, asmaybemodified bytheapplication ofparagraphs 2and3shallbeconsidered
reimports inthesense ofArticle 4,Paragraph 2.
2. Reimports notcovered bytheannex maybesubmitted tospecific quantitative limits following
consultations inaccordance withtheprocedures setoutinArticle 16oftheAgreement, provided the
products concerned aresubject tothequantitative limits established under Annex IItotheAgreement.
3. TheCommunity may, atitsowndiscretion, andbearing inmind theinterest ofbothparties,
orintheframework ofarequest setoutinArticle 16oftheAgreement:
(a) Examine thepossibilities oftransfers between categories andadvance useorcarry-over
ofportions ofspecific quantitative limits from oneyeartoanother;
4. HowevertheCommunitymayautomaticallycarryouttheflexibilitiesinthesenseofparagraph3
uptothefollowing extent:
(a) transfer between categories upto20percentoftheshare established forthecategory
towhich thetransfer ismade.
(b) carry-over ofspecific quantitative limits fromoneyeartoanother upto10.5percent
oftheshare fortheyearofactual utilisation.
(c) advance useofspecific quantitative limits fromoneyeartoanother upto7.5percent
oftheshare fortheyearofactual utilization.
5. TheCommunity shall inform Malaysia ofanymeasures taken pursuant tothepreceding
paragraphs.
6. Debiting against aspecific quantitative limitreferred toinparagraph 1shallbecarried out
bythecompetent authorities oftheCommunity atthetimeofissuing theprior authorization provided
forbytheCommunityregulationoneconomicoutwardprocessing,Regulation(EEC)636/82.Aspecific
quantitative limitshallbedebited fortheyearinwhich aprior authorization isissued.
7. AcertificateoforiginshallbeissuedforallproductscoveredbythepresentProtocolbyMalaysia
inaccordance withtheprovisions ofProtocol AoftheAgreement, bearing areference totheprior
authorization referred toinParagraph 6asevidence thattheprocessing operation described intheprior
authorization hasbeencarried outinMalaysia.
8. TheCommunity shallprovide Malaysia withthenames, addresses andthespecimens ofstamps
usedbythecompetent authorities oftheCommunity fortheissue oftheprior authorizations referred
toinparagraph 6.
9. Notwithstanding theprovisions ofparagraphs 1to8above Malaysia andtheCommunity will
continue toconsult together toseekamutually acceptable means toenable bothparties totakeadvantage
oftheOPTprovisions intheAgreement withaviewtoeffective development oftradeintextiles between
Malaysia andtheCommunity.G/TMB/N/256
Page23
JOINT DECLARATION CONCERNING BATIK FABRICS
AND PRODUCTS THEREOF
A. TheCommunity andMalaysia agree thathandicraft batikisproduced byatraditional process
bywhich colours andshades areadded toableached orwhite fabric. Theprocess iscarried outby
handinthree stages namely:
(a) Waxing (application ofwaxbyhandtothefabric);
(b) dyeing/painting (application ofcolour either bythetraditional cottage method ofdyeing
orbyhand-painting;
(c) de-waxing (boiling thefabric toremove thewax).
B. Theparties hereby further agree tothefollowing arrangements:
1. Thecompetent Community authorities willaccept astraditional folklore handicraft
textile products within themeaning ofArticle 1(c)ofProtocol Ballbatik fabrics,
irrespective ofthemethod ofmanufacture ofthebasic fabric, andallproducts made
ormade uptherefrom, whether sewn byhandoronahand- orfoot-operated sewing
machine, provided thattheprocess ofapplying colours andshades tothefabric has
been thetraditional handicraft batik process described atAabove, andsubject to
appropriate certification bythecompetent Malaysian authorities.
2. Thecompetent Malaysian authorities willissue certificates conforming tothemodel
annexed toprotocol Bforbatik fabrics orproducts thereof onlywhen suchfabrics
orproducts havebeenproduced bytheprocesses, including inparticular thetraditional
handicraft batik process, specified inthepreceding paragraph.
Done atBrussels, 28June1986
Head ofDelegation ofMalaysia Head ofDelegation ofthe
European Economic CommunityG/TMB/N/256
Page24
AGREED MINUTE NO.2
Notwithstanding Article 12paragraph 1ofthisAgreement, forimperative technical or
administrative reasons ortofindasolution toeconomic problems resulting fromregional concentration
ofimports, orinorder tocombat circumvention andfraud oftheprovisions ofthisAgreement, the
Community willestablish foralimited period oftimeaspecific management system inconformity
withtheprinciples oftheInternal Market.
However, iftheparties areunable toreach asatisfactory solution during theconsultations
provided forinArticle 12paragraph 3,theCommunity mayalsointroduce temporary limits forone
ormore ofitsregions. Insuchacasethese limits shallnotpreclude theimportation intotheregion(s)
concerned ofproducts which wereshipped fromMalaysia onthebasisofexport licences obtained before
thedateofformal notification toMalaysia bytheCommunity about theintroduction oftheabove limits.
TheCommunity shallinform Malaysia ofthetechnical andadministrative measures suchas
defined intheattached NoteVerbale thatneedtobeintroduced bybothParties inorder toimplement
theabove paragraphs inconformity withtheprinciples oftheInternal Market.
FortheGovernment ofthe FortheCouncil ofthe
Malaysia European Economic CommunityG/TMB/N/256
Page25
AGREED MINUTE NO.3
Inthecontext oftheagreement between theEuropean Economic Community andMalaysia
ontradeintextile andclothing products, initialled inBrussels on3December 1992, theParties agreed
thatMalaysia shallendeavour nottodeprive certain regions oftheCommunity which havetraditionally
hadrelatively small shares oftheCommunity quotas ofimports ofproducts serving asinputs fortheir
processing industry.
TheCommunity andMalaysia further agreed toholdconsultations, should theneedarise, in
order toavert anyproblems which might occur inthisrespect.
Theparties agreed thatthisAgreed Minute replaces thecorresponding Exchange ofLetters
oftheAgreement onthissubject.
FortheGovernment oftheMalaysia FortheCouncil ofthe
European Economic CommunityG/TMB/N/256
Page26
NOTE VERBALE
TheDirectorate-GeneralforExternalRelationsoftheCommissionoftheEuropeanCommunities
presents itscompliments totheMission ofMalaysia totheEuropean Communities andhasthehonour
torefertotheAgreement ontextile products negotiated between Malaysia andtheCommunity applied
since 1January 1987, asextended bytheexchange ofletters initialled on8November 1991 andas
further extended bytheexchange ofletters of3December 1992.
TheDirectorate-General wishes toinform theMission oftheMission ofMalaysia thatthe
Community haddecided toapply, starting from1January 1993, theprovisions ofparagraph 1ofAgreed
Minute No.2totheexchange ofletters initialled on3December 1992. Consequently, thecorresponding
provisions ofArticles 6and11ofProtocol AtotheAgreement shallalsobeapplied asoftheabove
date.
TheDirectorate-General forExternal Relations avails itself ofthisopportunity torenew to
theMission ofMalaysia totheEuropean Communities theassurance ofitshighest consideration.G/TMB/N/256
Page27
AGREED MINUTE NO.4
Inthecontext oftheAgreement between theEuropean Economic Community andMalaysia
ontrade intextile andclothing products, applied since 1January 1987, asextended bytheExchange
ofLetters initialled on8November 1991 andfurther extended bytheExchange ofLetters initialled
on3December 1992, Malaysia agreed that,fromthedateofrequest forandpending theconsultations
referred toinArticle 12paragraph 3,itshallcooperate bynotissuing export licences thatwould further
aggravate theproblems resulting fromtheregional concentration ofdirect imports intotheCommunity.
FortheGovernment ofMalaysia FortheCouncil ofthe
European Economic Community