WORLD TRADE G/TMB/N/261
18July1997
ORGANIZATION(97-2986)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
EUROPEAN COMMUNITY
Administrative Arrangements withSriLanka
TheTextiles Monitoring Body hasreceived anotification from theEuropean Commission
pursuant toparagraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members
fortheirinformation.G/TMB/N/261
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*,
HongKong,India,theRepublicofIndonesia,theRepublicofKorea,Macau,theFederationofMalaysia,
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
*This notification waswithdrawn attherequest oftheEuropean Commission.
**This document contains theAdministrative Arrangements concluded withSriLanka. Administrative
Arrangements concluded withtheother Members listed above willbecirculated asseparate documents.G/TMB/N/261
Page3
Dear Ambassador,
Theundersigned representatives oftheEuropean Community andSriLanka would liketonotify
totheTextiles Monitoring Body theAdministrative Arrangements which havebeenagreed between
theEuropean Community andSriLanka under Article 2(17) oftheAgreement onTextiles andClothing
(ATC) -thetextofwhich isattached.
Please accept, Ambassador, theassurance ofourhighest consideration.
Representative ofSriLanka Representative oftheEuropean Community
(Signed) Douglas Jayawardena (Signed) E.Grillo Pasquarelli
20September 1996 20September 1996
Ambassador Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
RuedeLausanne 154
CH-1211 Geneva 21G/TMB/N/261
Page4
Provisions oftheAgreement between theEuropean Community andtheDemocratic Socialist
Republic ofSriLanka ontrade intextile products initialled on31May1986, asamended bythe
agreement inform ofexchange ofletters amending theAgreement between theEuropean Economic
Community andtheDemocratic Socialist Republic ofSriLanka ontradeintextile products, initialled
inBrussels, 17December 1992, which willbenotified asadministrative arrangements under
Article 2,paragraph 17oftheUruguay Round Textiles Agreement.
Article Description
Section 1:Trade Arrangements
Article 2(3) Determination oforigin ofcovered products
Article 4 Reimports after OPT
Article 5 Cottage industries
Article 6 Imports toECforre-export after processing
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,
Certificates oforigin, etc.,
Export certificates, etc.,
Administrative cooperation,
Specimen ofexport licence (textiles) Form 5,
Specimen ofcertificate oforigin
Protocol B Cottage industry
Protocol E OPT operations
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)G/TMB/N/261
Page5
ANNEX
Administrative Arrangements between theEuropean Community andSriLanka
Thefollowing Annex reproduces infullforthebenefit ofMembers thetextsoftheprovisions
ofthebilateral agreement between theEuropean Economic Community andSriLanka, 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/261
Page6
Article 2
3. Theorigin oftheproducts covered bythisAgreement shallbedetermined inaccordance with
therules inforce intheCommunity.
Anyamendment totheserulesoforigin shallbecommunicated toSriLanka andshallnothave
theeffect ofreducing anyquantitative limitestablished inAnnex II.1
Theprocedures forcontrol oftheorigin oftheproducts referred toabove arelaiddown in
Protocol A.
Article 4
SriLanka andtheCommunity recognize thespecial anddifferential character ofreimports
oftextile products intotheCommunity afterprocessing inSriLanka.
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 from suchfabrics andtraditional folklore handicraft products shallnotbe
subject toquantitative limits, provided thattheseproducts meettheconditions laiddown inProtocol B.
Article 6
1. Imports intotheCommunity oftextile products covered bythisAgreement shallnotbesubject
tothequantitative limits established inAnnex II2provided 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 bytheSriLankan authorities, and
toproof oforigin inaccordance withtheprovisions ofProtocol A.
2. Where theCommunity authorities haveevidence thatimports oftextile products havebeen
setoffagainst aquantitative limit established under thisAgreement, butthattheproducts have
subsequently beenre-exported outside theCommunity, theauthorities concerned shall inform the
SriLankan 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/261
Page7
Article 9
1. SriLanka undertakes tosupply theCommunity withprecise statistical information onallexport
licences issued bytheSriLankan authorities forallcategories oftextile products subject tothe
quantitative limits established under thisAgreement aswellasonallcertificates issued bytheSriLanka
authorities forallproducts referred toinArticle 5andsubject totheprovisions ofProtocol B.
TheCommunityshalllikewisetransmittotheSriLankaauthoritiesprecisestatisticalinformation
onimport authorizations ordocuments issued bytheCommunity authorities inrespect ofexport licences
andcertificates issued bySriLanka.
2. "The information referred toinparagraph 1firstindent shall, forallcategories ofproducts,
beforwarded before theendofthemonth following themonth towhich thestatistics relate."
3. SriLanka alsoundertakes tosupply theCommunity withavailable statistical information on
alltextile exports bycountry ofdestination.
TheCommunity shalltransmit totheSriLanka authorities import statistics forallproducts
covered bythesystem ofadministrative control referred toinArticle 8,Paragraph 23andforproducts
covered byArticle 6Paragraph 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 16ofthisAgreement.
6. Forthepurpose ofapplying theprovisions ofArticle 84,theCommunity undertakes toprovide
theSriLankan authorities before 15April ofeachyearwiththepreceding year'sstatistics onimports
ofalltextile products covered bythisAgreement, broken down bysupplying country andCommunity
Member State.
Article 10
1. Incaseofdivergent opinions between SriLanka andthecompetent Community authorities
atthepoint ofentry intotheCommunity ontheclassification ofproducts covered bythepresent
Agreement,classificationshallprovisionallybebasedonindicationsprovidedbytheCommunity,pending
consultations inaccordance withArticle 16withaviewtoreaching agreement ondefinitive classification
oftheproduct concerned.
2. Theauthorities ofSriLanka shallbeinformed ofanyamendment tothetariff andstatistical
nomenclatures inforce intheCommunity oranydecision, made inaccordance withtheprocedures
inforce intheCommunity, relating totheclassification ofproducts covered bythisAgreement.
3Thisprovision related toa"basket exit" mechanism.
4Thisprovision related toa"basket exit" mechanism.G/TMB/N/261
Page8
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. SriLanka andtheCommunity agree tocooperate fullyinpreventing thecircumvention ofthe
present Agreement bytransshipment, rerouting orwhatever other means.
2. Where information available totheCommunity asaresult oftheinvestigations carried out
inaccordance withtheprocedures setoutinProtocol Aconstitutes evidence thatproducts ofSriLanka
origin subject toquantitative limits established under thisAgreement havebeentranshipped, rerouted
orotherwise imported intotheCommunity incircumvention ofthisAgreement, theCommunity may
request theopening ofconsultations inaccordance withtheprocedures described inArticle 16ofthis
Agreement, withaview toreaching agreement onanequivalent adjustment ofthecorresponding
quantitative limits established under theAgreement.
3. Pending theresult oftheconsultations referred toinparagraph 2,SriLanka shall ona
precautionary measure, ifsorequested bytheCommunity make thenecessary arrangement 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 16oftheAgreement, theCommunity shallhavetheright, where clear
evidence ofcircumvention hasbeenprovided, todeduct fromthequantitative limits established under
thisAgreement amounts equivalent totheproducts ofSriLanka origin.
Article 12
"1. Thequantitative limits established under thisAgreement onimports intotheCommunity of
textile products ofSriLankan origin willnotbebroken down bytheCommunity intoregional shares.
2. TheParties shallcooperate inorder toprevent sudden andprejudicial changes intraditional
trade flows resulting inregional concentration ofdirect imports intotheCommunity.
3. SriLanka shall monitor itsexports ofproducts under restraint orsurveillance intothe
Community. Should asudden andprejudicial change intraditional trade flows arise, theCommunity
willbeentitled torequest consultations inorder tofindasatisfactory solution tothose problems. Such
consultations must beheldwithin fifteen working daysoftheirbeing requested bytheCommunity.
4. SriLanka shallendeavour toensure thatexports oftextile products subject toquantitative limits
intotheCommunity arespaced outasevenly aspossible overtheyeardueaccount being taken in
particular ofseasonal factors."
5These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/261
Page9
Article 16
"1. Savewhere itisotherwise provided forinthisAgreement,
Thespecial consultation procedures referred tointhisAgreement shallbegoverned bythe
following rules:
- Anyrequest forconsultations shallbenotified inwriting totheother;
- therequest forconsultations shallbefollowed within areasonable period (andinany
casenotlaterthanfifteen daysfollowing thenotification) byastatement setting out
thereasons andcircumstances which, intheopinion oftherequesting Party, justify
thesubmission ofsucharequest;
- theParties shallenter intoconsultations within onemonth atthelatest ofnotification
oftherequest, withaviewtoreaching agreement oramutually acceptable conclusion
within onefurther month atthelatest.G/TMB/N/261
Page10
PROTOCOL A
TITLE I
Classification
Article 1
1. Thecompetent authorities oftheCommunity undertake toinform SriLanka ofanychanges
inthetariff andstatistical nomenclatures before thedateoftheirentry intoeffect intheCommunity.
2. Thecompetent authorities oftheCommunity undertake toinform SriLanka 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 haveledtothedecisions.
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(2) oftheAgreement.
TITLE II
Origin
Article 2
1. Products originating inSriLanka forexport totheCommunity inaccordance withthe
arrangements established bythisAgreement shallbeaccompanied byacertificate ofSriLanka origin
conforming tothemodel annexed tothisProtocol.
2. Thecertificate oforigin shallbeissued bythecompetent governmental authorities ofSriLanka
iftheproducts inquestion canbeconsidered products originating inthatcountry within themeaning
oftherelevant rules inforce intheCommunity.G/TMB/N/261
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 inSriLanka within themeaning oftherelevant rules inforce intheCommunity.
4. Thecertificate oforigin referred toinparagraph 1shallnotberequired forimport ofgoods
covered byacertificate oforigin Form AorForm APR completed inaccordance withtherelevant
Community rules inorder toqualify forgeneralized tariff preferences.
Article 3
Thecertificate oforigin shallbeissued onlyonapplication having beenmade inwriting by
theexporter or,under theexporter 'sresponsibility, byhisauthorized representative. Thecompetent
governmental authorities ofSriLanka shallensure thatthecertificate oforigin isproperly completed
andforthispurpose theyshallcallforanynecessary documentary evidence orcarry outanycheck
which theyconsider appropriate.
Article 4
Where different criteria fordetermining origin arelaiddown forproducts falling within the
same category, certificates ordeclarations oforigin shallcontain asufficiently detailed description
ofthegoods toenable thecriterion tobedetermined onthebasis ofwhich thecertificate wasissued
orthedeclaration drawn up.
Article 5
Thediscovery ofslight discrepancies between thestatements made inthecertificate oforigin
andthose made inthedocuments produced tothecustoms office forthepurpose ofcarrying outthe
formalities forimporting theproduct shallnotipsofactocastdoubt uponthestatements inthecertificate.
TITLE III
Double-Checking System forCategories ofProducts withQuantitative Limits
Section I
Exportation
Article 6
ThecompetentauthoritiesofSriLankashallissueanexportlicenceinrespectofallconsignments
from SriLanka oftextile products referred toinAnnex II7,uptotherelevant quantitative limits as
6Thisrelates totheEuropean Community 'sgroupings ofcategories ofproducts.
7These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/261
Page12
maybemodified byArticles 78,139and1410oftheAgreement, oranydefinitive orprovisional limit
established under Article 811oftheAgreement.
Article 7
"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
regions(s) oftheCommunity indicated inthose licences."
Itmustcertify 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 8
Thecompetent Community authorities mustbenotified forthwith ofthewithdrawal oralteration
ofanyexport licence already issued.
Article 9
1. Exports shallbesetoffagainst thequantitative limits established fortheyearinwhich shipment
ofthegoods hasbeeneffected, eveniftheexport certificate isissued aftersuchshipment.
2. Forthepurpose ofapplying paragraph 1,shipment ofthegoods isconsidered tohavetaken
place onthedateoftheirloading ontotheexporting aircraft, vehicle orvessel.
8TheseprovisionsrelatetoflexibilitiesandhavebeennotifiedbytheEuropeanCommunitypursuanttoArticle2
oftheATC.
9Thisprovision related toproratacalculations intheevent ofdenunciation oftheAgreement.
10Thisprovision concerned asystem ofregional shares.
11Thisprovision related toa"basket exit" mechanism.
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/261
Page13
Article 10
Thepresentation ofanexport licence, inapplication ofArticle 12below, shallbeeffected not
laterthan31March oftheyearfollowing thatinwhich thegoods covered bythelicence havebeen
shipped.
Section II
Importation
Article 11
Importation intotheCommunity oftextile products subject toquantitative limits shallbesubject
tothepresentation ofanimport authorization ordocument.
Article 12
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,ortotheAgreed Minute No.2,theproducts covered
bytheimport licences canonlybeputintofreecirculation intheregions(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 about thewithdrawal
orcancellation oftheexport licence untilaftertheproducts havebeenimported intotheCommunity,
thequantities involved shallbesetoffagainst thequantitative limitforthecategory andthequota year
inquestion.
Article 13
1. IfthecompetentCommunityauthoritiesfindthatthetotalquantitiescoveredbyexportcertificates
issued bySriLanka foraparticular category inanyAgreement yearexceed thequantitative limit
established inAnnex IIforthatcategory, asmaybemodified byArticles 716,1317and1418ofthe
15Thisprovision related toa"basket exit" mechanism.
16These provisions relate toflexibilities andhave been notified bytheEuropean Community pursuant to
Article 2oftheATC.
17Thisprovision related toproratacalculations intheevent ofdenunciation oftheAgreement.
18Thisprovision concerned asystem ofregional shares.G/TMB/N/261
Page14
Agreement, oranydefinitive orprovisional limit established under Article 819ofthe
Agreement, thesaidauthorities maysuspend thefurther issueofimport authorizations ordocuments.
Inthisevent, thecompetent Community authorities shallimmediately inform theauthorities ofSri
Lanka andthespecial consultation procedure setoutinArticle 16oftheAgreement shallbeinitiated
forthwith.
2. Exports ofSriLanka origin notcovered bySriLanka export licences issued inaccordance
withtheprovisions ofthisProtocol mayberefused theissue ofimport authorizations ordocuments
bythecompetent Community authorities.
However, iftheimport ofsuchproducts areallowed intotheCommunity bythecompetent
Community authorities, thequantities involved shallnotbesetoffagainst theappropriate quantitative
limits setoutinAnnex II20orestablished asaresult oftheapplication ofArticle 821oftheAgreement,
without theexpress agreement ofSriLanka saveasprovided forinArticle 11oftheAgreement.
FORM AND PRODUCTION OFEXPORT CERTIFICATES AND
CERTIFICATES OFORIGIN AND COMMON PROVISIONS
Article 14
1. Theexport licence andthecertificate oforigin maycomprise additional copies dulyindicated
assuch. They shallbemade outinEnglish orFrench. Iftheyarecompleted byhand, entries must
beinkandinprintscript.
These documents shallmeasure 210x297m.Thepaper usedmustbewhite writing paper,
sized, notcontaining mechanical pulpandweighing notlessthan25g/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"copies". 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:
- Anumber indicating thequota year;
2.10. Thesecond andthirdindents ofArticle 14,paragraph 2,ofProtocol Aarereplaced bythe
following text:
19Thisprovision related toa"basket exit" mechanism.
20These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
21Thisprovision related toa"basket exit" mechanism.G/TMB/N/261
Page15
"- twoletter identifying theintended Member Sateofcustoms 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"
"- afive-digit number running consecutively from00001 to99999 allocated totheintended
Member State ofcustoms clearance."
Article 15
Theexport licence andcertificate oforigin maybeissued aftertheshipment oftheproducts
towhich theyrelated. Insuchcases theyshallbeareither theendorsement "délivré aposteriori" or
theendorsement "Issued retrospectively".
Article 16
1. Intheevent oftheft, lossordestruction ofanexport licence oracertificate 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 17
TheCommunity andSriLanka shallcooperate closely toimplement theprovisions ofthis
Agreement. Tothisend,contacts andexchanges ofviews (including ontechnical matters) shallbe
facilitated bybothparties.
Article 18
Inorder toensure theproper application ofthisAgreement, theCommunity andSriLanka
shallassist eachother inchecking theauthenticity andaccuracy ofexport licences andcertificates of
origin issued ordeclarations made under thisProtocol.G/TMB/N/261
Page16
Article 19
SriLanka shallsendtheCommission oftheEuropean Communities thenames andaddresses
ofthegovernmental authorities competent fortheissueandverification ofexport licences andcertificates
origin together withspecimens ofthestamps usedbythese authorities. SriLanka shallalsonotify
theCommission ofanychange inthisinformation.
Article 20
1. Subsequent verification ofcertificates oforigin orexport licences shallbecarried outatrandom,
orwhenever thecompetent Community authorities havereasonable doubt astotheauthenticity ofthe
certificate orlicence orastoaccuracy oftheinformation regarding theproducts inquestion.
2. Insuchcases thecompetent authorities intheCommunity shallreturn thecertificate oforigin
orexport licence oracopythereof tothecompetent governmental authority inSriLanka 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 1above shallbeapplicable tosubsequent verifications ofthe
declarations oforigin referred toinArticle 2ofthisProtocol.
4. Theresults ofthesubsequent verifications carried outinaccordance withparagraphs 1and
2above shallbecommunicated tothecompetent authorities oftheCommunity within three months
atthelatest. Theinformation communicated shallindicate whether thedisputed certificate orlicence
ordeclaration applies tothegoods actually exported andwhether these goods areeligible forexport
inaccordance withthearrangements established bythisAgreement. Theinformation shallalsoinclude,
attherequest oftheCommunity, copies ofalldocumentation necessary todetermine thefactsfully
andinparticular thetrueorigin ofthegoods.
Should suchverifications reveal systematic irregularities intheuseofdeclarations oforigin,
theCommunitymaysubjectimportsoftheproductsinquestiontotheprovisionsofArticle2paragraph1
ofthisProtocol.
5. Forthepurpose ofsubsequent verification ofcertificates oforigin, copies ofthecertificates
aswellasanyexport documents referring tothem shallbekeptforaperiod ofatleastthree years
bythecompetent governmental authority inSriLanka.
6. Recourse totherandom verification procedure specified inthisArticle mustnotconstitute an
obstacle totherelease forhome useoftheproducts inquestion.
Article 21
1. Where theverification procedure referred toinArticle 20orwhere information available to
theCommunity ortoSriLanka indicates orappears toindicate thattheprovisions ofthisAgreement
arebeing contravened, bothparties shallcooperate closely andwithappropriate urgency toprevent
suchcontravention.
2. TothisendSriLanka shallonitsowninitiative orattherequest oftheCommunity, carry
outappropriate enquiries orarrange forsuchenquiries tobecarried outconcerning operations which
areorwhich appear totheCommunity tobeincontravention ofthisAgreement. SriLanka shallG/TMB/N/261
Page17
communicate theresults ofthese enquiries totheCommunity together withanyother pertinent
information enabling thetrueorigin ofthegoods tobedetermined.
3. Subject totheagreement between theCommunity andSriLanka officials designated bythe
Community maybepresent attheenquiries referred toabove.
4. Inpursuance ofthecooperation referred toabove, SriLanka andtheCommunity shallexchange
anyinformation considered byeither party tobeofuseinpreventing thecontravention oftheprovisions
ofthisAgreement. These exchanges mayinclude information ontextile production inSriLanka and
ontradeintextile products ofakindcovered bythisAgreement between SriLanka andother countries,
particularly where theCommunity hasreasonable grounds toconsider thattheproducts inquestion
maybeintransit across theterritory ofSriLanka priortotheirimportation intotheCommunity. This
information shallinclude attherequest oftheCommunity copies ofallrelevant documentation.
5. Where itisestablished thattheprovisions ofthisAgreement havebeencontravened, SriLanka
andtheCommunity mayagree totakesuchmeasures asarenecessary toprevent arecurrence ofsuch
contravention.G/TMB/N/261
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 decategorie
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
10Marks 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 aux
dispositions envigeur danslaCommunauté européenne.
14.Competent authority (name, fulladdress, country)
Autorite compétente (nom, adresse complète, pays) At/A .................................. On/Le ............................
(signature) (stamp-cachet)
1Showtheweight(kg.)andalsoquantityintheunitprescribedforcategorywhereotherthannetweight/Indiquerlepoidsnetenkilogrammes
ainsiquelaquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/261
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
10Marks 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 inboxNo4bytheprovisions 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)
Autorite compétente (nom, adresse complète, pays) At/A .................................... On/Le .............................
(Signature) (Stamp -Cachet)
1Showtheweight(kg.)andalsoquantityintheunitprescribedforcategorywhereotherthannetweight/Indiquerlepoidsnetenkilogrammes
ainsiquelaquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/261
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 ofSriLanka;
(b) garments orother textile articles ofakindtraditionally made inthecottage industry
ofSriLanka obtained manually from thefabrics referred toabove andsewn
exclusively byhandwithout theaidofanymachine;
(c) traditional folklore textile products ofSriLanka made byhand inthecottage
industry ofSriLanka asdefined inalisttobeagreed between bothparties andannexed
tothisProtocol.
Exemption shall begranted onlyforproducts accompanied byacertificate issued bythe
competent SriLankan authorities inaccordance withthespecimen annexed tothisProtocol. Such
certificates shallstateontheground onwhich exemption isbased andshallbeaccepted bythecompetent
Community authorities provided thattheyaresatisfied thattheproducts concerned conform tothe
conditions setoutinthisProtocol. Certificates covering theproducts referred toinparagraph (c)above
shallbearaconspicuous stamp: "FOLKLORE". Incaseofdivergent opinion between SriLanka and
thecompetent Community authorities atthepoint ofentry intotheCommunity astothenature ofsuch
products, consultations shallbeheldwithin onemonth withaview toresolving suchdivergencies.
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 "mutatis mutandi "totheproducts
referred toinparagraph 1.G/TMB/N/261
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
PRODUITS TEXTILES RELEVANT DU FOLKLORE
TRADITIONNEL, DEFABRICATION ARTISANALE, délivré
enconformité avecetsouslesconditions régissant leséchanges de
produits textiles aveclaCommunauté européenne3.Consignee (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 the
European Community andthecountry shown inboxNo.4.
Jesoussigné certifie quel'envoie décrit ci-dessus contient exclusivement lesproduits textiles suivants relevant delafabrication
artisanale dupaysfigurant danslacase4:
a)tissus tisses surdesmétiers actionnés àlamain ouaupied(handlooms);2
b)vètements 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.
12.Competent 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/261
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 tothisProtocol, 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 useofcarry-over
ofportions ofspecific quantitative limits from oneyeartoanother;
4. However theCommunity mayautomatically carry outtheflexibilities inthesense of
paragraph 3uptothefollowing extent:
(a) Transfer between categories upto20percentoftheshare established tothecategory
towhich thetransfer ismade;
(b) carryover ofspecific quantitative limits fromoneyeartoanother upto13.5percent
oftheshare fortheyearofactual utilisation;
(c) advance useofspecific quantitative limits fromoneyeartoanother upto7.5percent
oftheshare fortheyearofactual utilisation.
5. TheCommunity shall inform SriLanka ofanymeasures taken pursuant tothepreceding
paragraphs.
6. Debiting against aspecific quantitative limitreferred toinParagraph 1shallbecarried out
bythecompetent authorities oftheCommunity atthetimeofissuing theprior authorization provided
forbytheCommunity regulation oneconomic outward processing (Regulation 636/82). Aspecific
quantitative limitshallbedebited fortheyearinwhich aprior authorization isissued.
7. Acertificate oforigin shall beissued forallproducts covered bythepresent Protocol by
SriLanka inaccordance withtheprovisions ofProtocol AoftheAgreement, bearing areference to
theprior authorization referred toinParagraph 6asevidence thattheprocessing operation described
intheprior authorization hasbeencarried outinSriLanka.
8. TheCommunity shallprovide SriLanka withthenames, addresses andthespecimens ofstamps
usedbythecompetent authorities oftheCommunity fortheissue oftheprior authorizations referred
toinparagraph 6.
9. Notwithstanding theprovisions ofparagraphs 1to8above SriLanka andtheCommunity will
continue toconsult together toseekamutually acceptable means toenable bothparties totakeadvantage
oftheOPTprovisions intheAgreement withaviewtoeffective development oftradeintextiles between
SriLanka andtheCommunity.G/TMB/N/261
Page23
Joint Declaration Concerning Batik Fabrics
andProducts Thereof
A. TheCommunity andSriLanka agree thatbatik fabric maynotbedescribed ashaving been
produced bythetraditional handicraft batik process unless, foreachofthecolours orshades applied
tothefabric, eachofthefollowing three operations hasbeencarried outbyhand:
(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 SriLanka authorities.
2. Thecompetent SriLanka 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,
FortheEuropean Economic Community FortheGovernment oftheDemocratic
Socialist Republic ofSriLankaG/TMB/N/261
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.SriLanka undertakes, ifsorequested bytheCommunity, to
respect temporary export limits foroneormore regions oftheCommunity. Insuchacase,theselimits
shallnotpreclude theimportation intotheregion(s) concerned ofproducts which wereshipped from
SriLanka onthebasis ofexport licences obtained before thedateofformal notification toSriLanka
bytheCommunity about theintroduction oftheabove limits.
TheCommunity shallinform SriLanka ofthetechnical andadministrative measures suchas
defined intheattached NoteVerbale thatneedtobeintroduced bybothParties inorder toimplement
theabove paragraphs inconformity withtheprinciples oftheInternal Market.
FortheGovernment ofthe FortheCouncil ofthe
Democratic Socialist Republic ofSriLanka European Economic CommunityG/TMB/N/261
Page25
AGREED MINUTE NO.3
InthecontextoftheAgreementbetweentheEuropeanEconomicCommunityandtheDemocratic
Socialist Republic ofSriLanka ontradeintextile andclothing products, applied since 1January 1987,
asextended bytheExchange ofLetter initialled on25October 1991 andfurther extended bythe
Exchange ofLetters initialled on17December 1992, SriLanka agreed that,fromthedateofrequest
forandpending theconsultations referred toinArticle 12paragraph 3,itshallcooperate bynotissuing
export licences thatwould further aggravate theproblems resulting from theregional concentration
ofdirect imports intotheCommunity.
FortheGovernment ofthe FortheCouncil ofthe
Democratic Socialist Republic ofSriLanka European Economic CommunityG/TMB/N/261
Page26
NOTE VERBALE
TheDirectorate-GeneralforExternalRelationsoftheCommissionoftheEuropeanCommunities
presentsitscomplimentstotheMissionoftheDemocraticSocialistRepublicofSriLankatotheEuropean
Communities andhasthehonour torefer totheAgreement ontextile products negotiated between
SriLanka andtheCommunity applied since 1January 1987, asextended bytheexchange ofletters
initialled on25October 1991andasfurther extended bytheexchange ofletters of17December 1992.
TheDirectorate-General wishes toinform theMission oftheDemocratic Socialist Republic
ofSriLanka thattheCommunity hasdecided toapply, starting from1January 1993, theprovisions
ofparagraph 1ofAgreed Minute No.2 totheexchange ofletters initialled on17December 1992.
Consequently, thecorresponding provisions ofArticles 7and12ofProtocol AtotheAgreement shall
alsobeapplied asoftheabove date.
TheDirectorate-General forExternal Relations avails itself ofthisopportunity torenew to
theMission oftheDemocratic Socialist Republic ofSriLanka totheEuropean Communities the
assurance ofitshighest consideration.