WORLD TRADE G/TMB/N/257
18July1997
ORGANIZATION(97-2984)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
EUROPEAN COMMUNITY
Administrative Arrangements withPakistan
TheTextiles Monitoring Body hasreceived anotification from theEuropean Commission
pursuant toparagraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members
fortheirinformation.G/TMB/N/257
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
*Thisnotification waswithdrawn attherequest oftheEuropean Commission.
**This document contains theAdministrative Arrangements concluded with Pakistan. Administrative
Arrangements concluded withtheother Members listed above willbecirculated asseparate documents.G/TMB/N/257
Page3
Brussels, 17September 1996
Dear Ambassador,
Theundersigned representatives oftheEuropean Community andPakistan would liketonotify
totheTextiles Monitoring Body theAdministrative Arrangements which havebeenagreed between
theEuropean Community andPakistan under Article 2(17) oftheAgreement onTextiles andClothing
(ATC) -thetextofwhich isattached.
Please accept, Ambassador, theassurance ofourhighest consideration.
(Signed) Representative ofPakistan (Signed) Representative ofthe
Chaudary Muhammad Ilyas European Community
Enrico Grillo Pasquarelli
Ambassador Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
RuedeLausanne, 154
CH-1211 Geneva 21G/TMB/N/257
Page4
Provisions oftheAgreement between theEuropean Economic Community andtheIslamic
Republic ofPakistan ontrade intextile products, initialled inBrussels, on12September 1986, as
amended bytheAgreement intheformofExchange ofLetters amending theAgreement between the
European Economic Community andtheIslamic Republic ofPakistan ontrade intextile products,
initialled inBrussels, on12December 1992, which willbenotified asAdministrative Arrangements
under Article 2,para17oftheUruguay Round Textiles Agreement.
Article Description
Section 1:Trade arrangements
Article 2(3) Determination oforigin ofcovered products
Article 4 Re-imports after OPT
Article 5 Cottage industry
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,paragraph 1asamended Consultations
Protocol A,asamended Classification,
Origin,
Double-checking,
Export certificates,
Certificates oforigin etc.,
Export certificate etc.,
Administrative cooperation,
Specimen ofexport licence (Textiles) Form 5,
Specimen ofcertificate oforigin.
Protocol B Cottage industry
Protocol E OPT operations
Agreed Minute No.2(1992) Temporary specific management system
Agreed Minute No.3(1992) Regions withtraditionally small quotas
Agreed Minute No.4(1992) Regional concentration
Note verbale (1992) Refers toAgreed Minute No.2(1992)G/TMB/N/257
Page5
ANNEX
Administrative Arrangements between the
European Community andthePakistan
Thefollowing Annex reproduces infullforthebenefit ofMembers thetextsoftheprovisions
ofthebilateral agreement between theEuropean Economic Community andPakistan, 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 havebeennotified totheTMB (e.g.thequantitative limits inquestion
andtherelevant flexibility provisions orareprovisions which arenotintended toform partofthe
Administrative Arrangements. These provisions havebeenidentified bywayoffootnotes anditshould
therefore benoted thatthefootnotes areintended forexplanation anddonotformpartoftheprovisions
themselves.G/TMB/N/257
Page6
Article 2
Theorigin oftheproducts covered bythisAgreement shallbedetermined inaccordance with
therules inforce intheCommunity.
Anyamendment tothese rulesoforigin shallbecommunicated toPakistan andshallnothave
theeffect ofreducing anyquantitative limitestablished inAnnex II.1
Theprocedures forcontrol oftheorigin oftheproducts referred toabove arelaiddown in
Protocol A.
Article 4
Pakistan andtheCommunity recognize thespecial anddifferential character ofre-imports of
textile products intotheCommunity afterprocessing inPakistan.
Provided thattheyareeffected inaccordance withtheregulations oneconomic outward
processing inforce intheCommunity, these re-imports 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 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 licence issued bythePakistani authorities, andtoproof
oforigin inaccordance withtheprovisions ofProtocol A.
2. Where theCommunity authorities haveevidence thatimports oftextile products havebeen
setoffagainst aquantitative limit established under thisAgreement, butthattheproducts have
subsequentlybeenre-exportedoutsidetheCommunity,theauthoritiesconcernedshallinformthePakistani
authorities within fourweeks ofthequantities involved andauthorize imports ofidentical quantities
ofthesame products, which shallnotbesetoffagainst thequantitative limitestablished under this
Agreement forthecurrent orthefollowing year.
1These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
2These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/257
Page7
Article 9
1. Pakistan undertakes tosupply theCommunity withprecise statistical information onallexport
licences issued bythePakistani authorities forallcategories oftextile products subject tothequantitative
limits established under thisAgreement aswellasonallcertificates issued bythePakistani authorities
forallproducts referred toinArticle 5andsubject totheprovisions ofProtocol B.
TheCommunity shalllikewise forward tothePakistani authorities precise statistical information
onimport authorizations ordocuments issued bytheCommunity authorities inrespect ofexport licences
issued byPakistan.
2. "The information referred toinparagraph 1firstindent shall, forallcategories ofproducts,
beforwarded before theendofthemonth following themonth towhich thestatistics relate".
3. Pakistan alsoundertakes tosupply theCommunity withavailable statistical information on
alltextile exports bycountry ofdestination.
TheCommunityshallforwardtothePakistaniauthoritiesimportstatisticsforallproductscovered
bythesystem ofadministrative control referred toinArticle 8,paragraph 23andforproducts covered
byArticle 6,paragraph 1.
4. Theinformation referred toinparagraph 3shall, forallcategories ofproducts, beforwarded
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
thePakistani authorities before 15April ofeachyearwiththepreceding year'sstatistics onimports
ofalltextile products covered bythisAgreement, broken down bysupplying country andCommunity
Member State.
Article 10
1. Should therebedivergent opinions between Pakistan andthecompetent Community authorities
atthepoint ofentry intotheCommunity ontheclassification ofproducts covered bythisAgreement,
classification shall provisionally bebased onindications provided bytheCommunity, pending
consultations inaccordance withArticle 16withaviewtoreaching agreement ondefinitive classification
oftheproduct concerned.
2. Theauthorities ofPakistan 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/257
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. Pakistan andtheCommunity agree tocooperate fullyinpreventing thecircumvention ofthe
present Agreement bytranshipment, rerouting orwhatever other means.
2. Where information available totheCommunity asaresult oftheinvestigations carried out
inaccordance withtheprocedures setoutinProtocol Aconstitutes evidence thatproducts ofPakistani
origin subject toquantitative limits established under thisAgreement havebeentranshipped, re-routed
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 thisAgreement.
3. Pending theresult oftheconsultations referred toinparagraph 2,Pakistan 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 16oftheAgreement, theCommunity shallhavetheright, where clear
evidence ofcircumvention hasbeenprovided, todeduct fromthequantitative limits established under
thisAgreement amounts equivalent totheproducts ofPakistani origin.
Article 12
"1. Thequantitative limits established under thisAgreement onimports intotheCommunity of
textile products ofPakistani origin willnotbebroken down bytheCommunity intoregional shares.
2. TheParties shallcooperate inorder toprevent sudden andprejudicial changes intraditional
trade flows resulting inregional concentration ofdirect imports intotheCommunity.
3. PakistanshallmonitoritsexportsofproductsunderrestraintorsurveillanceintotheCommunity.
Should asudden andprejudicial change intraditional tradeflows arise, theCommunity willbeentitled
torequest consultations inorder tofindasatisfactory solution tothose problems. Suchconsultations
must beheldwithin fifteen working daysoftheirbeing requested bytheCommunity.
4. Pakistan 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/257
Page9
Article 16
1. Savewhere itisotherwise provided forinthisAgreement, thespecial consultation procedures
referred tointhisAgreement shallbegoverned bythefollowing rules:
- Anyrequest forconsultations shallbenotified inwriting totheother party;
- 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/257
Page10
PROTOCOL A
TITLE I
Classification
Article 1
1. Thecompetent authorities oftheCommunity undertake toinform Pakistan ofanychanges in
thetariff andstatistical nomenclatures before thedateoftheirentry intoeffect intheCommunity.
2. Thecompetent authorities oftheCommunity undertake toinform Pakistan 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.
TITLE II
Origin
Article 2
1. ProductsoriginatinginPakistanforexporttotheCommunityinaccordancewiththearrangements
established bythisAgreement shallbeaccompanied byacertificate ofPakistani origin conforming
tothemodel annexed tothisProtocol.
2. Thecertificate oforigin shallbeissued bythecompetent governmental authorities ofPakistan
iftheproducts inquestion canbeconsidered products originating inthatcountry within themeaning
oftherelevant rules inforce intheCommunity.
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 inPakistan within themeaning oftherelevant rules inforce intheCommunity.
6Thisrelates totheEuropean Community 'sgroupings ofcategories ofproducts.G/TMB/N/257
Page11
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
Itistheunderstanding ofbothParties thatthecertificate oforigin shallcontinue tobeissued
onlyonapplication having beenmade inwriting bytheexporter or,under theexporter 'sresponsibility,
byhisauthorized representative. Thecompetent governmental authorities ofPakistan 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
Thecompetent authorities ofPakistan shallissueanexport licence inrespect ofallconsignments
fromPakistan oftextile products referred toinAnnex II7uptotherelevant quantitative limits asmay
bemodified byArticles 78,139and1410oftheAgreement andoftextile products subject toanydefinitive
orprovisional quantitative limits established asaresult oftheapplication ofArticle 811oftheAgreement.
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/257
Page12
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
region(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
130cmistobeapplied".
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 licence isissued aftersuchshipment.
2. Forthepurpose ofapplying paragraph 1,shipment ofthegoods isconsidered tohavetaken
place onthedateoftheirloading ontotheexporting aircraft, vehicle orvessel.
Article 10
Thepresentation ofanexport licence, inapplication ofArticle 12,shallbeeffected notlater
than31March oftheyearfollowing thatinwhich thegoods covered bythelicence havebeenshipped.
Section II
Importation
Article 11
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/257
Page13
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,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 arenotified about thewithdrawal or
cancellation oftheexport licence onlyaftertheproducts havebeenimported intotheCommunity, the
quantities involved shallbesetoffagainst thequantitative limitforthecategory andthequota year
inquestion.
Article 13
1. IfthecompetentCommunityauthoritiesfindthatthetotalquantitiescoveredbyexportcertificates
issued byPakistan 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,
thecompetentCommunityauthoritiesshallimmediatelyinformtheauthoritiesofPakistanandthespecial
consultation procedure setoutinArticle 16oftheAgreement shallbeinitiated forthwith.
2. Exports ofPakistani origin notcovered byPakistani export licences issued inaccordance with
theprovisions ofthisProtocol mayberefused theissueofimport authorizations ordocuments bythe
competent Community authorities.
However, iftheimport ofsuchproducts isallowed intotheCommunity bythecompetent
Community authorities, thequantities involved shallnotbesetoffagainst theappropriate quantitative
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/257
Page14
limits setoutinAnnex II21orestablished asaresult oftheapplication ofArticle 822oftheAgreement,
without theexpress agreement ofPakistan, saveasprovided forinArticle 11oftheAgreement.
Form andProduction ofExport Licences andCertificates
ofOrigin, andCommon Provisions
Article 14
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 export licence andcertificate ororigin shallbearastandardized serial number, whether
ornotprinted, bywhich itcanbeidentified.
Thisnumber shallbecomposed ofthefollowing elements:
- twoletters identifying Pakistan asfollows: PK;
"- 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"
21These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
22Thisprovision related toa"basket exit" mechanism.G/TMB/N/257
Page15
- aone-digit number identifying quota year, corresponding tothelastfigure inyear,
e.g.7for1987;
- atwo-digit number running consecutively from01to99identifying theissuing office
inPakistan;
- afive-digit number running consecutively from00001 to99999 allocated totheintended
Member State ofcustoms clearance.
Article 15
Theexport licence andcertificate oforigin maybeissued aftertheshipment oftheproducts
towhich theyrelate. Insuchcases theyshallbeareither theendorsement "délivré aposteriori" or
theendorsement "Issued retrospectively".
Article 16
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 17
TheCommunity andPakistan shall cooperate closely toimplement theprovisions ofthis
Agreement. Tothisend,contacts andexchanges ofviews (including ontechnical matters) shallbe
facilitated bybothparties.
Article 18
Inorder toensure thattheAgreement isproperly applied, theCommunity andPakistan shall
assist eachother inchecking theauthenticity andaccuracy ofexport licences andcertificates oforigin
issued ordeclaration made under thisProtocol.
Article 19
Pakistan shallsendtheCommission oftheEuropean Communities thenames andaddresses
ofthegovernmental authorities competent fortheissueandverification ofexport licences andcertificates
oforigin together withspecimens ofthestamps usedbythese authorities. Pakistan shallalsonotify
theCommission ofanychange inthisinformation.G/TMB/N/257
Page16
Article 20
1. Subsequent verification ofcertificates oforigin orexport licences shallbecarried outatrandom,
orwhenever thecompetent Community authorities havereasonable doubt astotheauthenticity ofthe
certificate orlicence orastotheaccuracy oftheinformation regarding theproducts inquestion.
2. Insuchcases thecompetent authorities intheCommunity shallreturn thecertificate oforigin
orexport licence oracopythereof tothecompetent governmental authority inPakistan 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 these goods areeligible forexport in
accordance withthearrangements established bythisAgreement. Theinformation, shallalsoinclude,
attherequest oftheCommunity, copies ofalldocumentation necessary todetermine thefactsfully
andinparticular thetrueorigin ofthegoods.
Should suchverifications reveal systematic irregularities intheuseofdeclaration oforigin,
theCommunity maysubmit imports oftheproducts inquestion totheprovisions ofArticle 2paragraph
1ofthisProtocol.
5. Forthepurpose ofsubsequent verification ofcertificates oforigin, copies ofthecertificates
aswellasanyexport documents referring tothemshallbekeptforatleastthreeyears bythecompetent
governmental authority inPakistan.
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 ortoPakistan indicates orappears toindicate thattheprovisions ofthisAgreement
arebeing contravened, bothparties shallcooperate closely andwithappropriate urgency toprevent
suchcontravention.
2. TothisendPakistan shallonitsowninitiative orattherequest oftheCommunity, carry out
appropriate enquiries orarrange forsuchenquiries tobecarried outconcerning operations which are,
orappear totheCommunity tobeincontravention ofthisAgreement. Pakistan shallcommunicate
theresults ofthese enquiries totheCommunity together withanyother pertinent information enabling
thetrueorigin ofthegoods tobedetermined.
3. Subject toagreement between theCommunity andPakistan, officials designated bythe
Community maybepresent attheenquiries referred toinparagraph 2.G/TMB/N/257
Page17
4. Pursuant ofthecooperation referred toabove, Pakistan andtheCommunity shallexchange
anyinformation considered byeither party tobeofuseinpreventing thecontravention oftheprovisions
oftheAgreement. These exchanges mayinclude information ontextile production inPakistan and
ontradeintextile products ofakindcovered bythisAgreement between Pakistan andother countries,
particularly where theCommunity hasreasonable grounds toconsider thattheproducts inquestion
maybeintransit across theterritory ofPakistan prior totheirimportation intotheCommunity. This
information shallinclude attherequest oftheCommunity copies ofallrelevant documentation.
5. Where itisestablished thattheprovisions ofthisAgreement havebeencontravened, Pakistan
andtheCommunity mayagree totakesuchmeasures asarenecessary toprevent arecurrence ofsuch
contravention.G/TMB/N/257
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 envigeur 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 thannetweight/Indiquer lepoids netenkilogrammes ainsique
laquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/257
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 thatonlythegoods described above havebeencharged against thequantitative limitestablished for
theyearshown 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/257
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 ofPakistan;
(b) hand-made cottage industry products made ofthehandloom fabrics described in(a);
(c) traditional folklore textile products ofPakistan made byhandinthecottage industry
ofPakistan asdefined inalisttobeagreed between bothparties andannexed tothis
Protocol.
Exemption shall begranted onlyforproducts accompanied byacertificate issued bythe
competent Pakistani 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 toinsubparagraph (c)
above shallbearaconspicuous stamp: "FOLKLORE". Incaseofdivergent opinion between Pakistan
andthecompetent Community authorities atthepoint ofentry intotheCommunity astothenature
ofsuchproducts, 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/257
Page21
Agreed ListofTraditional Folklore Handicraft Textile Products ofPakistan
Referred toinParagraph 1(c)ofProtocol B
Listoftraditional folklore handicraft textile products ofPakistan agreed between theCommunity
andPakistan according tosubparagraph (c)ofProtocol B.
Products listed below areindicated byPakistan asbeing uniquely andhistorically traditional
folklore textile products made byhandinthecottage industry ofPakistan.
1. Dupatta
Long scarfabout fourfeetormore longandthree feetormore wideofthincotton fabric with
colourful design worn bywomen tocover thehead.
2. Ghilaf
Embroidered decorative tubular caseopenatbothendswithdrawstring enclosures.
3. Izarband
Cotton beltinmulticolored continuous lengths ofunwoven threads
4. Shisha embroidered Baluchi shirtordress
Traditional mirror embroidery onplain, printed orstriped material, worn bythepeople of
Sindh andBaluchistan. Short, medium orlongaccording totheareas fromwhich theycome.
5. Cimmarband
Antique andembroidered widebeltsworn around thewaist, withheavy mirrored embroidery.
6. Quetta jackets
Loose vestworn overkurta bymenandwomen. Made either ofprinted material orof
embroidered material withmirror onplain colours.
7. Ajrak kaftan (maxi)
Traditional Sindhi printed dress ofankle length (blueandredprints), worn bywomen inSindh
region. Ajrak short dress/shirts arealsoworn bymeninthisarea.
8. Pushtoon starkhat
Cotton printed, dyed orplain longdresses, ankle length withextra wideorsimple sleeves.
Women ofNorth-West Frontier Province wear thisdress.
9. Burqa
Loose tunic ordress withhoodattached, worn byladies when going outofthehouse. Worn
asanouter covering andoften gaily embroidered orhandprinted.G/TMB/N/257
Page22
10. Multani choli
Short bodice withorwithout sleeves.
11. Embroidered kurta-shirt
Type ofshirtorloose tunic worn throughout Pakistan overloose trousers. Embroidered in
different colours. Adapted fromAngarkha byKingAhmad ShahAbdali. Worn shortorlong;
triangular inserts atthearmpits.
12. Sindh kameez (shirt)
Cotton, plain dyedandhandprinted shirtwithextra widesleeves (long) worn withshalwar
bywomen inSindh.
13. Peshawari waistcoat
Small jacket typeofdress worn overkameez (shirt) bythewoman andmenintheNorth-West
Frontier Province. Heavily embroidery withorwithout mirror andgolden embroidery.
14. Mohenjodaro julaba/Sindhi shirt
Short orfull-length printed dress worn withshalwar (trousers), mostly bymenandwomen
intheareas ofMohenjodaro valley.
15. Multani kurta shirt
Crochet worked short orlongtunicworn bythepeasants inPunjab. Crocheted work located
attheneckandfront; triangular inserts atthearmpits.
16. Rillikurta shirt
Kurta (shirt) ofheavy fabric patchworked decorations appliqued byhand, worn bywomen
ofSindh.
17. Sindhi julaba
Very loose ankle-length dress inhandloom orhand-blocked material withahook attached at
lower part. Extending tolowest hem. Worn inthevillages ofSindh. Canalsobeembroidered.
18. Batwa
Drawstring pouches, bags, purses orastring bag.Gaily printed orhand-embroidered orwith
mirrors ormade withcoloured strings.
19. Swati smocking dress
Large andshort dress withorwithout sleeves (maroon colour), worn withsmocking bythe
ladies ofSwat andother areas ofNorth-West Frontier Province.G/TMB/N/257
Page23
20. Baluchi kameez (shirt)
Embroidered topworn bythewomen ofBaluchistan overshalwar orTurkish trousers. Flared
tunic withextra widesleeves tapering toabuttoned cuff.
21. Cotton embroidered kaftan
Kaftan inthetraditional embroidery ofMultan, Makran, DeraGhazi Khan andNuchki -long,
loose-fitting dress withembroidery around topandbottom withsideslitsofabout 28inches
tothelower hem.
22. Ghagra
Ankle-length, loose-fitting skirtwithdrawstring around thewaist orhooks, worn witheither
afitted orloose choli (blouse), withtraditional colours embroidered orhand-printed. Worn
intheTharparker areaofSindh.G/TMB/N/257
Page24
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 À
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.
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/257
Page25
PROTOCOL E
Re-imports inthesense ofArticle 4paragraph 2ofthisAgreement intotheCommunity of
products listed intheAnnex tothisProtocol shallbesubject totheprovisions oftheAgreement except
asspecifically provided forbytheparticular provisions setoutbelow:
1. Only re-imports intotheCommunity subject tothespecific quantitative limits setoutinthe
Annex totheProtocol, asmaybemodified bytheapplications ofparagraphs 2and3shallbeconsidered
re-imports inthesense ofArticle 4,paragraph 2.
2. Re-imports 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 utilization;
(c) advance useofspecific quantitative limits fromoneyeartoanother upto7.5percent
oftheshare fortheyearofactual utilization.
5. TheCommunity shall inform Pakistan 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 shallbeissued forallproducts covered bythepresent Protocol byPakistan
inaccordance withtheprovisions ofProtocol AoftheAgreement, bearing areference totheprior
authorization referred toinparagraph 6asevidence thattheprocessing operation described intheprior
authorization hasbeencarried outinPakistan.
8. TheCommunity shallprovide Pakistan withthenames, addresses andthespecimens ofstamps
usedbythecompetent authorities oftheCommunity fortheissue oftheprior authorizations referred
toinparagraph 6.
9. Notwithstanding theprovisions ofparagraphs 1to8above Pakistan andtheCommunity will
continue toconsult together toseekamutually acceptable means toenable bothparties totakeadvantage
oftheOPTprovisions intheAgreement withaviewtoeffective development oftradeintextiles between
Pakistan andtheCommunity.G/TMB/N/257
Page26
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. Insuchacase,theselimits shallnotpreclude theimportation intotheregion(s)
concerned ofproducts which wereshipped fromPakistan onthebasisofexport licences obtained before
thedateofformal notification toPakistan bytheCommunity about theintroduction oftheabove limits.
TheCommunity shallinform Pakistan ofthetechnical andadministrative measures suchas
defined intheattached NoteVerbale thatneedtobeintroduced bybothParties inorder toimplement
theabove paragraphs inconformity withtheprinciples oftheInternal Market.
FortheGovernment ofthe FortheCouncil ofthe
Islamic Republic ofPakistan European Economic CommunityG/TMB/N/257
Page27
AGREED MINUTE NO.3
Inthecontext oftheagreement between theEuropean Economic Community andtheIslamic
Republic ofPakistan ontrade intextile andclothing products, initialled inBrussels on
12December 1992, theParties agreed thatPakistan shallendeavour nottodeprive certain regions of
theCommunity which havetraditionally hadrelatively small shares oftheCommunity quotas ofimports
ofproducts serving asinputs fortheirprocessing industry.
TheCommunity andPakistan further agreed toholdconsultations, should theneedarise, in
order toavert anyproblems which might occur inthisrespect.
Theparties agreed thatthisAgreed Minute replaces thecorresponding Exchange ofLetters
oftheAgreement onthissubject.
FortheGovernment ofthe FortheCouncil ofthe
Islamic Republic ofPakistan European Economic CommunityG/TMB/N/257
Page28
NOTE VERBALE
TheDirectorate-GeneralforExternalRelationsoftheCommissionoftheEuropeanCommunities
presentsitscomplimentstotheMissionoftheIslamicRepublicofPakistantotheEuropeanCommunities
andhasthehonour torefertotheAgreement ontextile products negotiated between theIslamic Republic
ofPakistan andtheCommunity applied since 1January 1987, asextended bytheexchange ofletters
initialled on15December 1991 andasfurther extended bytheExchange ofLetters of
12December 1992.
TheDirectorate-General wishes toinform theMission oftheMission oftheIslamic Republic
ofPakistan thattheCommunity haddecided toapply, starting from 1January 1993, theprovisions
ofparagraph 1ofAgreed Minute No.2totheExchange ofLetters initialled on12December 1992.
Consequently, thecorresponding provisions ofArticles 7and12ofProtocol AtotheAgreement shall
alsobeapplied asoftheabove date.
TheDirectorate-General forExternal Relations avails itself ofthisopportunity torenew to
theMission oftheIslamic Republic ofPakistan totheEuropean Communities theassurance ofitshighest
consideration.G/TMB/N/257
Page29
AGREED MINUTE NO.4
Inthecontext oftheAgreement between theEuropean Economic Community andtheIslamic
Republic ofPakistan ontradeintextile andclothing products, applied since1January 1987, asextended
bytheExchange ofLetters initialled on15December 1991 andfurther extended bytheExchange of
Letters initialled on12December 1992. Pakistan agreed that,fromthedateofrequest forandpending
theconsultations referred toinArticle 12paragraph 3,itshallcooperate bynotissuing export licences
thatwould further aggravate theproblems resulting fromtheregional concentration ofdirect imports
intotheCommunity.
FortheGovernment ofthe FortheCouncil ofthe
Islamic Republic ofPakistan European Economic Community