WORLD TRADE G/TMB/N/259
18July1997
ORGANIZATION(97-2985)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
EUROPEAN COMMUNITY
Administrative Arrangements withthePhilippines
TheTextiles Monitoring Body hasreceived anotification from theEuropean Commission
pursuant toparagraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members
fortheirinformation.G/TMB/N/259
Page2
European Commission
Directorate-General
Brussels, 26September 1996
Dear Ambassador,
Iwould liketonotify totheTextiles Monitoring Body theAdministrative Arrangements which
have been agreed between theEuropean Community andtheRepublic ofthePhilippines under
Article 2.17oftheAgreement onTextiles andClothing -thetextofwhich isattached.
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-1311 Geneva 21G/TMB/N/259
Page3
Provisions oftheAgreement between theEuropean Community andtheRepublic ofthe
Philippines ontrade intextile products, initialled on28June1986, asamended bytheAgreement in
theform ofanExchange ofLetters amending theAgreement between theEuropean Economic
Community andtheRepublic ofthePhilippines ontrade intextile products, initialled inBrussels, on
27November 1992, which willbenotified asadministrative arrangements under Article 2(17) ofthe
Uruguay Round Textiles Agreement.
Article Description
Section 1:Trade arrangements
Article 2(3) Determination oforigin ofcovered products
Article 4 Reimports afterOPT
Article 5 Cottage industry
Article 6 Imports toECforre-export afterprocessing
Article 9,asamended Exchange ofstatistical information
Article 10 Amendments toclassification
Article 11 Circumvention
Article 12,asamended Regional concentration
Article 16(1), asamended Consultations
Protocol A,asamended Classification,
Origin,
Double-checking
Export certificates,
Certificate oforigin etc.,
Export certificate etc.,
Administrative cooperation,
Specimen ofexport licence (textiles) Form 5,
Specimen ofcertificate oforigin
Protocol B Cottage industry
Protocol E OPToperations
Agreed Minute No.2(1992) Temporary specific management system
Agreed Minute No.3(1992) Regions withtraditionally small quotas
Note verbale (1992) Refers toAgreed Minute No.2(1992)
Agreed Minute No.4(1992) Regional concentration
Agreed Minute No.3(1986) Exceptional flexibilities
Agreed Minute No.7(1986) Flexibilities between ASEAN countriesG/TMB/N/259
Page4
ANNEX
Administrative Arrangements between the
European Community andthePhilippines
Thefollowing Annex reproduces infullforthebenefit ofMembers thetextsoftheprovisions
ofthebilateral agreement between theEuropean Economic Community andthePhilippines, 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/259
Page5
Article 2
3. Theorigin oftheproducts covered bythisAgreement shallbedetermined inaccordance with
therules inforce intheCommunity.
Anyamendment tothese rules oforigin shallbecommunicated tothePhilippines andshall
nothavetheeffect ofreducing anyquantitative limitestablished inAnnex II.1
Theprocedures forcontrol oftheorigin oftheproducts referred toabove arelaiddown in
Protocol A.
Article 4
ThePhilippinesandtheCommunityrecognizethespecialanddifferentialcharacterofre-imports
oftextile products intotheCommunity afterprocessing inthePhilippines.
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 bythePhilippine authorities, andtoproof
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 shallauthorize imports
ofidentical quantities ofthesame products andinform thePhilippines authorities within fourweeks
ofthequantities involved 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/259
Page6
Article 9
1. ThePhilippines undertake tosupply theCommunity withprecise statistical information onall
export licences issued bythePhilippine authorities forallcategories oftextile products subject tothe
quantitative limits established under thisAgreement.
TheCommunityshalllikewisetransmittothePhilippineauthoritiesprecisestatisticalinformation
onimport authorizations ordocuments issued bytheCommunity authorities inrespect ofexport licences
issued bythePhilippines.
2. "The information referred toinparagraph 1firstindent shall, forallcategories ofproducts,
beforwarded before theendofthemonth following themonth towhich thestatistics relate".
3. ThePhilippines alsoundertake tosupply theCommunity wherever possible withavailable
statistical information onalltextile exports bycountry ofdestination.
TheCommunity shalltransmit tothePhilippine authorities import statistics forallproducts
covered bythesystem ofadministrative control referred toinArticle 8(2)3andforproducts covered
byArticle 6(1).
4. Theinformation referred toinparagraph 3shall, forallcategories ofproducts, betransmitted
before theendofthethirdmonth following thequarter towhich thestatistics relate.
5. Should itbefound onanalysis oftheinformation exchanged thatthere aresignificant
discrepancies between thereturns forexports andthose forimports, consultations maybeinitiated
inaccordance withtheprocedure specified inArticle 16.
6. Forthepurpose ofapplying theprovisions ofArticle 8,4theCommunity undertakes toprovide
thePhilippine authorities before 15April ofeachyearwiththepreceding year'sstatistics onimports
ofalltextile products covered bythisAgreement, broken down bysupplying country andCommunity
Member State.
7. ThePhilippines andtheCommunity shallexchange totheextent possible available statistical
information ontrade intextile products.
Article 10
1. Should there bedivergent opinions between thePhilippines andthecompetent Community
authorities atthepoint ofentry intotheCommunity ontheclassification ofproducts covered bythis
Agreement,classificationshallprovisionallybebasedonindicationsprovidedbytheCommunity,pending
consultations inaccordance withArticle 16withaviewtoreaching agreement ondefinitive classification
oftheproduct concerned.
2. Iftheabove provisional classification results inprovisional debit against aquantitative limit
foracategory ofproducts other thanthecategory indicated ontheexport documents issued bythe
competent Philippine authorities, theCommunity shallinform thePhilippines ofsuchprovisional debit
within 30days.
3Thisprovision related toa"basket exit" mechanism.
4Thisprovision related toa"basket exit" mechanism.G/TMB/N/259
Page7
3. Theauthorities ofthePhilippines shallbeinformed ofanyamendment tothetariffandstatistical
nomenclatures inforce intheCommunity oranydecision, made inaccordance withtheprocedures
inforce intheCommunity, relating totheclassification ofproducts covered bythisAgreement.
Anyamendment tothetariff andstatistical nomenclatures inforce intheCommunity orany
decision which results inamodification oftheclassification ofproducts covered bythisAgreement
shallnothavetheeffect ofreducing anyquantitative limitestablished inAnnex II.5
Theprocedures fortheapplication ofthisparagraph aresetoutinProtocol A.
Article 11
1. ThePhilippines andtheCommunity agree tocooperate fullyinpreventing thecircumvention
ofthisAgreement bytransshipment, re-routing orwhatever other means.
2. Where information available totheCommunity asaresult oftheinvestigations carried out
inaccordance withtheprocedures setoutinProtocol Aconstitutes evidence thatproducts ofPhilippine
origin subject toquantitative limits established under thisAgreement havebeentransshipped, re-routed
orotherwise imported intotheCommunity incircumvention ofthisAgreement, theCommunity may
request theopening ofconsultations inaccordance withtheprocedures described inArticle 16,with
aview toreaching agreement onanequivalent adjustment ofthecorresponding quantitative limits
established under thisAgreement.
3. Pending theresult oftheconsultations referred toinparagraph 2,thePhilippines shallasa
precautionary measure, ifsorequested bytheCommunity make thenecessary arrangements toensure
thatadjustments ofquantitative limits liable tobeagreed following theconsultations referred toin
paragraph 2,maybecarried outforthequota yearinwhich therequest toopen consultations in
accordance withparagraph 2wasmade, orforthefollowing yearifthequota forthecurrent yearis
exhausted where clear evidence ofcircumvention isprovided.
4. Should theparties beunable inthecourse ofconsultations toreach asatisfactory solution within
theperiod specified inArticle 16,theCommunity shall have theright, where clear evidence of
circumventionhasbeenprovided,todeductfromthequantitativelimitsestablishedunderthisAgreement
amounts equivalent totheproducts ofPhilippine origin.
Article 12
1. Thequantitative limits established under thisAgreement onimports intotheCommunity of
textile products ofPhilippine origin willnotbebroken down bytheCommunity intoregional shares.
2. TheParties shallcooperate inorder toprevent sudden andprejudicial changes intraditional
trade flows resulting inregional concentration ofdirect imports intotheCommunity.
3. ThePhilippines shall monitor exports ofproducts under restraint orsurveillance intothe
Community. Should asudden andprejudicial change intraditional tradeflows arise, theCommunity
willbeentitled torequest consultations inorder tofindasatisfactory solution tothose problems. Such
consultations mustbeheldwithin fifteen working daysoftheirbeing requested bytheCommunity.
5These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/259
Page8
4. ThePhilippines shallendeavour toensure thatexports oftextile products subject toquantitative
limits intotheCommunity arespaced outasevenly aspossible overtheyeardueaccount being taken
inparticular ofseasonal factors.
Article 16
"1. Savewhere itisotherwise provided forinthisAgreement,
Thespecial consultation procedures referred tointhisAgreement shallbegoverned bythe
following rules:
- anyrequest forconsultations shallbenotified inwriting totheother party;
- therequest forconsultations shallbefollowed within areasonable period (andinany
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;
- theperiod ofonemonth referred toabove forthepurpose ofreaching agreement on
amutually acceptable conclusion maybeextended bycommon accord.G/TMB/N/259
Page9
PROTOCOL A
TITLE I
Classification
Article 1
1. Thecompetent authorities oftheCommunity undertake toinform thePhilippines ofanychanges
inthetariff andstatistical nomenclatures before thedateoftheirentry intoeffect intheCommunity.
2. ThecompetentauthoritiesoftheCommunityundertaketoinformthePhilippinesofanydecisions
relating totheclassification ofproducts subject totheAgreement within onemonth oftheiradoption
atthelatest. Such communication shallinclude:
(a) Adescription oftheproducts concerned;
(b) therelevant category andtherelated tariff andstatistical references;
(c) thereasons which haveledtothedecision.
3. Where adecision onclassification results inachange ofclassification practice orachange
ofcategory ofanyproduct subject totheAgreement, thecompetent authorities oftheCommunity shall
provide 30days'notice, fromthedateoftheCommunity 'scommunication, before thedecision isput
intoeffect. Products shipped before thedateofapplication ofthedecision shallremain subject tothe
earlier classification practice, provided thatthegoods inquestion arepresented forimportation into
theCommunity within 60daysofthatdate.
4. Where aCommunity decision onclassification resulting inachange ofclassification practice
orachange ofcategorization ofanyproduct subject totheAgreement affects acategory subject to
restraint, thetwoparties agree toenterintoconsultations inaccordance withtheprocedures described
inArticle 16(1) oftheAgreement withaviewtohonouring theobligation under thesecond subparagraph
ofArticle 10(3) oftheAgreement.
TITLE II
Origin
Article 2
1. Products originating inthePhilippines forexport totheCommunity inaccordance withthe
arrangements established bythisAgreement shallbeaccompanied byacertificate ofPhilippine origin
conforming tothemodel annexed tothisProtocol.
2. Thecertificate oforigin shall beissued bythecompetent governmental authorities ofthe
Philippines iftheproducts inquestion canbeconsidered products originating inthatcountry within
themeaning oftherelevant rules inforce intheCommunity.G/TMB/N/259
Page10
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 inthePhilippines within themeaning oftherelevant rules inforce intheCommunity.
4. Thecertificate oforigin referred toinparagraph 1shallnotberequired forimport ofgoods
covered byacertificate ororigin Form AorForm APR completed inaccordance withtherelevant
Community rules inorder toqualify forgeneralized tariff preferences.
Article 3
Thecertificate ororigin shallbeissued beonlyonapplication having beenmade inwriting
bytheexporter or,under theexporter 'sresponsibility, byhisauthorized representative. Thecompetent
governmentalauthoritiesofthePhilippinesshallensurethatthecertificateoforiginisproperlycompleted
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 ofthePhilippines shall issue anexport licence inrespect ofall
consignments from thePhilippines oftextile products referred toinAnnex II7uptotherelevant
quantitative limits asmaybemodified byArticles 78,139and1410oftheAgreement andoftextile
6Thisrelates totheEuropean Community 'sgroupings ofcategories ofproducts.
7These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
8TheseprovisionsrelatetoflexibilitiesandhavebeennotifiedbytheEuropeanCommunitypursuanttoArticle2
oftheATC.
9Thisprovision related toproratacalculations intheevent ofdenunciation oftheAgreement.
10This provision concerned asystem ofregional shares.G/TMB/N/259
Page11
products subject toanydefinitive orprovisional quantitative limits established asaresult ofthe
application ofArticle 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
region(s) oftheCommunity indicated inthose licences."
Itmust certify interaliathatthequantity oftheproduct inquestion hasbeensetoffagainst
thequantitative limitprescribed forthecategory oftheproduct inquestion.
2. Each export licence shallnotonlycover oneofthecategories ofproducts listed inAnnex II13
ofthisAgreement.
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.
11This provision related toa"basked exit" mechanism.
12This provision related toa"basked exit" mechanism.
13These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
14These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.G/TMB/N/259
Page12
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,ortheAgreed Minute No.2,theproducts covered
bytheimport licences canonlybeputintofreecirculation intheregion(s) oftheCommunity indicated
inthose licences."
2. Thecompetent Community authorities shallcancel thealready issued import authorization or
document ifthecorresponding export licence hasbeenwithdrawn.
However, ifthecompetent Community authorities havenotbeennotified ofthewithdrawal
orcancellation oftheexport licence untiltheproducts havebeenimported intotheCommunity, the
quantities involved shallbesetoffagainst thequantitative limitforthecategory andthequota year
inquestion.
Article 13
1. Ifthecompetent Community authorities findthatthetotalquantities covered byexport licences
issued bythePhilippines foraparticular category inanyAgreement yearexceed thequantitative limit
established inAnnex II16forthatcategory, asmaybemodified byArticles 717,1318and1419ofthe
Agreement, oranydefinitive orprovisional limitestablished under Article 8oftheAgreement, the
saidauthorities maysuspend thefurther issue ofimport authorizations ordocuments. Inthisevent,
thecompetent Community authorities shallimmediately inform theauthorities ofthePhilippines and
thespecial consultation procedure setoutinArticle 16oftheAgreement shallbeinitiated forthwith.
15This provision related toa"basked exit" mechanism.
16These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
17TheseprovisionsrelatetoflexibilitiesandhavebeennotifiedbytheEuropeanCommunitypursuanttoArticle2
oftheATC.
18This provision related toproratacalculations intheevent ofdenunciation oftheAgreement.
19This provision concerned asystem ofregional shares.G/TMB/N/259
Page13
2. Exports ofPhilippine origin notcovered byPhilippine export licences issued inaccordance
withtheprovisions ofthisProtocol mayberefused theissue ofimport authorizations ordocuments
bythecompetent Community authorities.
However, iftheimport ofsuchproducts isallowed intotheCommunity bythecompetent
Community authorities, thequantities involved shallnotbesetoffagainst theappropriate quantitative
limits setoutinAnnex II20orestablished asaresult oftheapplication ofArticle 821oftheAgreement,
without theexpress agreement ofthePhilippines saveasprovided forinArticle 11oftheAgreement.
FORM AND PRODUCTION OFEXPORT LICENCES 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
beininkandinblock capitals.
These documents shallmeasure 210x297mm. Thepaper usedmustbewhite writing paper,
sized, notcontaining mechanical pulpandweighing notlessthat25g/m2.Eachpartshallhaveaprinted
guilloche-pattern background making anyfalsification bymechanical orchemical means apparent to
theeye.
Ifthedocuments haveseveral copies onlythetopcopywhich istheoriginal shallbeprinted
withtheguilloche-pattern background. Thiscopyshallbeclearly marked as"original" andtheother
copies as"copy". Onlytheoriginal shallbeaccepted bythecompetent authorities intheCommunity
asbeing valid forthepurposes ofexport totheCommunity inaccordance withthearrangements
established bythisAgreement.
2. Each document shallbearastandardized serial number, whether ornotprinted, bywhich it
canbeidentified. Thisnumber shallbecomposed ofthefollowing elements:
- Twoletters identifying thePhilippines asfollows: PH,
"- 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
SW = Sweden"
20These limits arethose notified bytheEuropean Community pursuant toArticle 2oftheATC.
21This provision related toa"basked exit" mechanism.G/TMB/N/259
Page14
- aone-digit number identifying quota year, corresponding tothelastfigure inyear,
e.g.7for1987,
- atwo-digit number running consecutively from01to99identifying theissuing office,
"- afive-digit number running consecutively from00001 to99999 allocated totheintended
Member State ofcustoms clearance."
Article 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 andthePhilippines shallcooperate closely toimplement theprovisions of
thisAgreement. Tothisend,contacts andexchanges ofviews (including ontechnical matters) shall
befacilitated bybothparties.
Article 18
Inorder toensure thattheAgreement isproperly applied, theCommunity andPhilippines shall
assist eachother inchecking theauthenticity andaccuracy ofexport licences andcertificates oforigin
issued ordeclarations made under thisProtocol.
Article 19
ThePhilippinesshallsendtheCommissionoftheEuropeanCommunitiesthenamesandaddresses
ofthegovernmental authorities competent fortheissueandverification ofexport licences andcertificates
oforigin together withspecimens ofthestamps usedbythese authorities. ThePhilippines shallalso
notify theCommission ofanychange inthisinformation.
Article 20
1. Subsequent verification orcertificates oforigin orexport licences shallbecarried outatrandom,
orwhenever thecompetent Community authorities havereasonable doubt astotheauthenticity ofthe
certificate orlicence orastotheaccuracy oftheinformation regarding theproducts inquestion.G/TMB/N/259
Page15
2. Insuchcases thecompetent authorities intheCommunity shallreturn thecertificate oforigin
orexpert licence oracopythereof tothecompetent governmental authority inthePhilippines giving,
where appropriate, thereasons orformorsubstance foranenquiry. Iftheinvoice hasbeensubmitted,
suchinvoice 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 together withanyother pertinent information particularly regarding thetrueorigin ofthegoods.
Should suchverifications reveal systematic irregularities intheuseofdeclarations oforigin,
theCommunity maysubject imports oftheproducts inquestion totheprovisions ofArticle 2(1)of
thisprotocol.
5. Forthepurpose ofsubsequent verification ofcertificates oforigin, copies ofthecertificates
aswellasanyexport documents referring tothemshallbekeptforatleasttwoyears bythecompetent
governmental authority inthePhilippines.
6. Recourse totherandom verification procedure specified inthisArticle mustnotconstitute an
obstacle totherelease forhome useoftheproducts inquestion.
Article 21
1. Where theverification procedure referred toinArticle 19orwhere information available to
theCommunity ortothePhilippines indicates orappears toindicate thattheprovisions ofthisAgreement
arebeing contravened, bothparties shallcooperate closely andwithappropriate urgency toprevent
suchcontravention.
2. TothisendthePhilippines shallonitsowninitiative orattherequest oftheCommunity, carry
outappropriate enquiries orarrange forsuchenquiries tobecarried outconcerning operations which
are,orappear tobetheCommunity tobeincontravention ofthisAgreement. ThePhilippines shall
communicate theresults ofthese enquiries totheCommunity together withanyother pertinent
information enabling thetrueorigin ofthegoods tobedetermined.
3. Subject toagreement between theCommunity andthePhilippines officials designated bythe
Community maybepresent attheenquiries referred toabove.
4. Inpursuance ofthecooperation referred toinparagraph 1,thePhilippines andtheCommunity
shallexchange anyinformation considered byeither party tobeofuseinpreventing thecontravention
oftheprovisions oftheAgreement. These exchanges mayinclude information ontextile production
inthePhilippines andontrade intextile products ofakindcovered bythisAgreement between the
Philippines andother countries, particularly where theCommunity hasreasonable grounds toconsider
thattheproducts inquestion maybeintransit across theterritory ofthePhilippines prior totheir
importation intotheCommunity. Thisinformation shallinclude attherequest oftheCommunity copies
ofallrelevant documentation.G/TMB/N/259
Page16
5. Where itisestablished thattheprovisions ofthisAgreement have been contravened, the
Philippines andtheCommunity mayagree totakesuchmeasures asarenecessary toprevent arecurrence
ofsuchcontravention.G/TMB/N/259
Page17
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)
1Showtheweight(kg.)andalsoquantityintheunitprescribedforcategorywhereotherthannetweight/Indiquerlepoidsnetenkilogrammes
ainsiquelaquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/259
Page18
APPENDIX TOPROTOCOL A,ARTICLE 7(1) Appendix IV
1.Exporter (name, fulladdress, country)
Exportateur (nom, adresse complète, pays)ORIGINAL 2.No.
3.Quota year
Année contingentaire4.Category number
Numéro decatégorie
5.Consignee (name, fulladdress, country)
Destinataire (nom, adresse complète, pays)EXPORT LICENCE
(Textile products)
______________________________
LICENCE D'EXPORTATION
(Produits textiles)
6.Country oforigin
Paysd'origine7.Country ofdestination
Paysdedestination
8.Place anddateofshipment -Means oftransport
Lieuetdated'embarquement -Moyen detransport9.Supplementary details
Données supplémentaires
10.Marks andnumbers -Number andkindofpackages -DESCRIPTION OFGOODS
Marques etnuméros -Nombre etnature descolis-DESIGNATION DESMARCHANDISES11.Quantity1
Quantité112.F.o.b. value2
Valeur f.o.b.2
13.CERTIFICATION BYTHE COMPETENT AUTHORITY/VISA DEL'AUTORITE COMPETENTE
I,theundersigned, certify thatthegoods described above havebeencharged against thequantitative limitestablished forthe
yearshown inboxNo.3inrespect ofthecategory shown inboxNo.4bytheprovisions regulating trade intextile products
withtheEuropean Community.
Jesoussigné certifie quelesmarchandises désignées ci-dessus ontétéimputées surlalimite quantitative fixée pourl'année
indiquée danslacase3pourlacatégorie désignée danslacase4danslecadre desdispositions régissant leséchanges de
produits textiles aveclaCommunauté européenne.
14.Competent authority (name, fulladdress, country)
Autorité compétente (nom, adresse complète, pays) At/A .................................... On/Le ..............................
(Signature) (Stamp -Cachet)
1Show theweight (kg.) andalsoquantity intheunitprescribed forcategory where other thannetweigh/Indiquer lepoids netenkilogrammes ainsique
laquantité dansl'unité prévue pourlacatégorie sicetteunité n'estpaslepoids net.
2Inthecurrency ofthesalecontract/Dans lamonnaie ducontrat devente.G/TMB/N/259
Page19
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 ofthePhilippines;
(b) garments orother textile articles ofakindtraditionally made inthecottage industry
ofthePhilippines obtained manually from thefabrics referred toabove andsewn
exclusively byhandwithout theaidofamachine;
(c) traditional folklore textile products ofthePhilippines made byhand inthecottage
industry ofthePhilippines asdefined inalisttobeagreed between bothparties.
Exemption shall begranted onlyforproducts accompanied byacertificate issued bythe
competent Philippine authorities inaccordance withthespecimen annexed tothisProtocol. Such
certificates shallstatetheground onwhich exemption isbased andshallbeaccepted bythecompetent
Community authorities provided thattheyaresatisfied thattheproducts concerned conform tothe
condition setoutinthisProtocol. Certificates covering theproducts referred toinparagraph (c)above
shallbearaconspicuous stamp: "FOLKLORE". Incaseofdivergent opinion between thePhilippines
andthecompetent Community authorities atthepoint ofentry intoCommunity astothenature of
suchproducts, consultations shallbeheldwithin onemonth withaviewtoresolving suchdivergences.
Should imports ofanyoftheabove products cause difficulties totheCommunity, thetwoParties shall
openconsultations forthwith inaccordance withtheprocedure laiddown inArticle 16oftheAgreement
withaviewtofinding appropriate solutions.
2. Theprovisions ofTitleIVandVofProtocol Ashallapply "mutadis mutandis "totheproducts
referred toinparagraph 1ofthisProtocol.G/TMB/N/259
Page20
ANNEX TOPROTOCOL B Appendix V
1.Exporter (name, fulladdress, country)
Exportateur (nom, adresse complète, pays)ORIGINAL 2.No.
CERTIFICATE inregard toHANDLOOMS, TEXTILE
HANDICRAFTS andTRADITIONAL TEXTILE PRODUCTS,
OFTHE COTTAGE INDUSTRY, issued inconformity withand
under theconditions regulating trade intextile products withthe
European Community
_______________________
CERTIFICAT relatif auxTISSUS, TISSES SUR METIERS A
MAIN, auxPRODUITS TEXTILES FAITS ALAMAIN, etaux
PRODUITSTEXTILESRELEVANTDUFOLKLORE
TRADITIONNEL, DEFABRICATION ARTISANALE, délivré
enconformité avecetsouslesconditions régissant leséchanges de
produits textiles aveclaCommunauté 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 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)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/259
Page21
PROTOCOL E
Reimports inthesense ofArticle 4paragraph 2ofthisAgreement intotheCommunity of
products listed intheAnnex tothisProtocol shallbesubject totheprovisions oftheAgreement except
asspecifically provided forbytheparticular provisions setoutbelow:
1. Only reimports intotheCommunity subject tothespecific quantitative limits setoutinthe
annex totheProtocol, asmaybemodified bytheapplications ofparagraphs 2and3shallbeconsidered
reimports inthesense ofArticle 4,paragraph 2.
2. Reimports notcovered bytheannex maybesubmitted tospecific quantitative limits following
consultations inaccordance withtheprocedures setoutinArticle 16oftheAgreement, provided the
products concerned aresubject tothequantitative limits established under Annex IItotheAgreement.
3. TheCommunity may, atitsowndiscretion, andbearing inmind theinterest ofbothparties,
orintheframework ofarequest setoutinArticle 16oftheAgreement:
(a) Examine thepossibilities oftransfers between categories andadvance useorcarry-over
ofportions ofspecific quantitative limits from oneyeartoanother.
4. HowevertheCommunitymayautomaticallycarryouttheflexibilitiesinthesenseofparagraph3
uptothefollowing extent:
(a) Transfer between categories upto20percentoftheshare established forthecategory
towhich thetransfer ismade;
(b) carryover ofspecific quantitative limits fromoneyeartoanother upto10.5percent
oftheshare fortheyearofactual utilization;
(c) advance useofspecific quantitative limits fromoneyeartoanother upto7.5percent
oftheshare fortheyearofactual utilization.
5. TheCommunity shallinform thePhilippines 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 (EEC) No.636/82.
Aspecific quantitative limitshallbedebited fortheyearinwhich aprior authorization isissued.
7. Acertificate oforigin shallbeissued forallproducts covered bythepresent Protocol bythe
Philippines inaccordance withtheprovisions ofProtocol AoftheAgreement, bearing areference
tothepriorauthorization referred toinparagraph 6asevidence thattheprocessing operation described
intheprior authorization hasbeencarried outinthePhilippines.
8. TheCommunity shallprovide thePhilippines withthenames, addresses andthespecimens
ofstamps usedbythecompetent authorities oftheCommunity fortheuseoftheprior authorizations
referred toinparagraph 6.G/TMB/N/259
Page22
9. Notwithstanding theprovisions ofparagraphs 1to8above thePhilippines andtheCommunity
willcontinue toconsult together toseekamutually acceptable means toenable bothparties totake
advantage oftheOPTprovisions intheAgreement withaviewtotheeffective development oftrade
intextiles between thePhilippines andtheCommunity.G/TMB/N/259
Page23
AGREED MINUTE NO.2
Notwithstanding Article 12,paragraph 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,thePhilippines undertake, ifsorequested bytheCommunity,
torespect temporary export limits foroneormore regions oftheCommunity. Insuchacase, these
limits shallnotpreclude theimportation intotheregion(s) concerned ofproducts which wereshipped
fromthePhilippines onthebasis ofexport licences obtained before thedateofformal notification to
thePhilippines bytheCommunity about theintroduction oftheabove limits.
TheCommunity shallinform thePhilippines ofthetechnical andadministrative measures such
asdefined intheattached NoteVerbale thatneedtobeintroduced bybothParties inorder toimplement
theabove paragraphs inconformity withtheprinciples oftheInternal Market.
FortheGovernment ofthe FortheCouncil ofthe
Republic ofthePhilippines European Economic CommunityG/TMB/N/259
Page24
AGREED MINUTE NO.3
Inthecontext oftheagreement between theEuropean Economic Community andtheRepublic
ofthePhilippines ontradeintextile andclothing products, initialled inBrussels on27November 1992,
theParties agreed thatthePhilippines shallendeavour nottodeprive certain regions oftheCommunity
which havetraditionally hadrelatively small shares oftheCommunity quotas ofimports ofproducts
serving asinputs fortheirprocessing industry.
TheCommunity andthePhilippines further agreed toholdconsultations, should theneedarise,
inorder toavert anyproblems which might occur inthisrespect.
Theparties agreed thatthisAgreed Minute replaces thecorresponding Agreed Minute ofthe
Agreement onthissubject.
FortheGovernment ofthe FortheCouncil ofthe
Republic ofthePhilippines European Economic CommunityG/TMB/N/259
Page25
NOTE VERBALE
TheDirectorate-GeneralforExternalRelationsoftheCommissionoftheEuropeanCommunities
presents itscompliments totheMission oftheRepublic ofthePhilippines totheEuropean Communities
andhasthehonour torefertotheAgreement ontextile products negotiated between theRepublic of
thePhilippines andtheCommunity applied since1January 1987, asextended bytheexchange ofletters
initialled on15November 1991andasfurther extended bytheexchange ofletters of27November 1992.
TheDirectorate-General wishes toinform theMission oftheRepublic ofthePhilippines that
theCommunity haddecided toapply, starting from 1January 1993, theprovisions ofparagraph 1
ofAgreed Minute No.2totheexchange ofletters initialled on27November 1992. Consequently,
thecorresponding provisions ofArticles 7and12ofProtocol AtotheAgreement shallalsobeapplied
asoftheabove date.
TheDirectorate-General forExternal Relations avails itself ofthisopportunity torenew to
theMission oftheRepublic ofthePhilippines totheEuropean Communities theassurance ofitshighest
consideration.G/TMB/N/259
Page26
AGREED MINUTE NO.4
Inthecontext oftheAgreement between theEuropean Economic Community andtheRepublic
ofthePhilippines ontrade intextile andclothing products, applied since 1January 1987, asextended
bytheExchange ofLetters initialled on15November 1991 andfurther extended bytheExchange
ofLetters initialled on27November 1992, thePhilippines agreed that,from thedateofrequest for
andpending theconsultations referred toinArticle 12paragraph 3,itshallcooperate bynotissuing
export licences thatwould further aggravate theproblems resulting from theregional concentration
ofdirect imports intotheCommunity.
FortheGovernment ofthe FortheCouncil ofthe
Republic ofthePhilippines European Economic Community