AGREEMENT in the form of an Exchange of Letters amending the Additional Protocol on trade in textile products between the European Community and the Republic of Bulgaria

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the negotiations held on 27-28 November 1995 between our respective Delegations with a view to amending the Additional Protocol on trade in textile products between the European Community and the Republic of Bulgaria, applied since 31 December 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 6 December 1994. These negotiations were held in the context of Article 1, paragraph 3 of the aforesaid Additional Protocol.

2. During these negotiations both Parties noted with satisfaction the way in which the Additional Protocol has, in general, been implemented. Moreover, the European Community noted with satisfaction the progress being made in the opening of the Bulgarian market and in particular the Bulgarian undertaking to accelerate its tariff concessions in favour of textiles and clothing products originating within the European Community and exported to the Republic of Bulgaria as outlined in Appendix 1 attached, with application from 1 January 1996. The Republic of Bulgaria undertakes to inform the European Community before 1 January 1996 that the necessary steps have been taken to implement the concessions outlined in Appendix 1.

3. In order to foster the development of further mutually beneficial trade flows it was agreed to amend the Additional Protocol as follows:

3.1. The first subparagraph of Article 2, paragraph 3 of the Protocol is replaced by the following:

'3. The origin of the products covered by this Protocol shall be determined in accordance with the rules of non-preferential origin in force in the Community.`

3.2. Article 2, paragraph 3 of Appendix A is replaced by the following:

'The certificate of origin referred to in paragraph 1 above is not required for the importation of goods covered by a movement certificate EUR1 or a form EUR2 issued in conformity with Protocol 4 to the Europe Agreement in cases where those documents clearly establish that the Republic of Bulgaria is to be considered as the country of origin on the basis of the rules on non-preferential origin in force in the Community.`

3.3. Annex II (EU direct quotas) is replaced by Appendix 2 attached.

3.4. The Annex to Appendix B concerning outward processing traffic is replaced by Appendix 3 attached (OPT quotas).

4. I should be obliged if you would kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this letter, completed by its Appendices and your written confirmation, will constitute an Agreement in the form of an Exchange of Letters between the Community and the Republic of Bulgaria. This Agreement shall enter into force on the first day of the month following that in which the European Community and the Republic of Bulgaria notify each other that they have completed the necessary internal procedures to this effect. In the meantime, the amendments to the Additional Protocol will apply on a provisional basis from 1 January 1996, provided that they are applied on a reciprocal basis.

Please accept, Sir, the assurance of my highest consideration.

For the Council of the European Union

Appendix 1 Bulgarian tariff undertaking

The Government of the Republic of Bulgaria undertakes to implement the following tariff concessions in favour of textiles and clothing products originating within the European Community and imported into the Republic of Bulgaria, to be applied from 1 January 1996.

(a) The products listed below are transferred from Annex VI to Annex IV of the Europe Agreement:

51 01 11 00

51 01 19 00

53 01 10 00

53 01 21 00

53 01 29 00

53 02 10 00

(b) The products listed below are transferred from Annex V to Annex IV of the Europe Agreement:

51 01 21 00

51 01 29 00

51 05 30 00

53 03 10 00

53 03 90 00

54 02 43 00

54 03 31 00

56 04 90 00

63 01 10 00

(c) The products listed below are transferred from Annex VI to Annex V of the Europe Agreement:

53 06 10 00

53 06 20 00

55 15 11 00

55 15 13 00

55 15 99 00

55 16 11 00

55 16 23 00

55 16 43 00

58 01 22 00

58 01 24 00

58 01 25 00

58 01 34 00

58 01 35 00

58 01 36 00

58 04 29 00

58 06 10 00

60 01 10 00

60 01 21 00

60 02 10 00

60 02 92 90

60 02 93 90

61 01 10 00

61 09 90 20

61 11 10 00

61 15 91 00

61 15 92 00

62 11 12 90

62 16 00 90

63 02 10 00

63 03 11 00

63 03 19 00

63 04 11 00

63 04 91 00

58 01 33 00

61 06 90 00

51 02 10 00

Appendix 2

ANNEX II (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Protocol)

>TABLE>

Appendix 3

ANNEX TO APPENDIX B (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Protocol)

>TABLE>

Letter from the Government of the Republic of Bulgaria

Sir,

I have the honour to acknowledge receipt of your letter of . . . which reads as follows:

'Sir

1. I have the honour to refer to the negotiations held on 27-28 November 1995 between our respective Delegations with a view to amending the Additional Protocol on trade in textile products between the European Community and the Republic of Bulgaria, applied since 31 December 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 6 December 1994. Theses negotiations were held in the context of Article 1, paragraph 3 of the aforesaid Additional Protocol.

2. During these negotiations both Parties noted with satisfaction the way in which the Additional Protocol has, in general, been implemented. Moreover, the European Community noted with satisfaction the progress being made in the opening of the Bulgarian market and in particular the Bulgarian undertaking to accelerate its tariff concessions in favour of textiles and clothing products originating within the European Community and exported to the Republic of Bulgaria as outlined in Appendix 1 attached, with application from 1 January 1996. The Republic of Bulgaria undertakes to inform the European Community before 1 January 1996 that the necessary steps have been taken to implement the concessions outlined in Appendix 1.

3. In order to foster the development of further mutually beneficial trade flows it was agreed to amend the Additional Protocol as follows:

3.1. The first subparagraph of Article 2, paragraph 3 of the Protocol is replaced by the following:

"3. The origin of the products covered by this Protocol shall be determined in accordance with the rules of non-preferential origin in force in the Community."

3.2. Article 2, paragraph 3 of Appendix A is replaced by the following:

"The certificate of origin referred to in paragraph 1 above is not required for the importation of goods covered by a movement certificate EUR1 or a form EUR2 issued in conformity with Protocol 4 of the Europe Agreement in cases where those documents clearly establish that the Republic of Bulgaria is to be considered as the country of origin on the basis of the rules on non-preferential origin in force in the Community."

3.3. Annex II (EU direct quotas) is replaced by Appendix 2 attached.

3.4. The Annex to Appendix B concerning outward processing traffic is replaced by Appendix 3 attached (OPT quotas).

4. I should be obliged if you would kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this letter, completed by its Appendices and your written confirmation, will constitute an Agreement in the form of an Exchange of Letters between the Community and the Republic of Bulgaria. This Agreement shall enter into force on the first day of the month following that in which the European Community and the Republic of Bulgaria notify each other that they have completed the necessary internal procedures to this effect. In the meantime, the amendments to the Additional Protocol will apply on a provisional basis from 1 January 1996, provided that they are applied on a reciprocal basis.

Please accept, Sir, the assurance of my highest consideration.`

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Republic of Bulgaria

Appendix 1 Bulgarian tariff undertaking

The Government of the Republic of Bulgaria undertakes to implement the following tariff concessions in favour of textiles and clothing products originating within the European Community and imported into the Republic of Bulgaria, to be applied from 1 January 1996.

(a) The products listed below are transferred from Annex VI to Annex IV of the Europe Agreement:

51 01 11 00

51 01 19 00

53 01 10 00

53 01 21 00

53 01 29 00

53 02 10 00

(b) The products listed below are transferred from Annex V to Annex IV of the Europe Agreement:

51 01 21 00

51 01 29 00

51 05 30 00

53 03 10 00

53 03 90 00

54 02 43 00

54 03 31 00

56 04 90 00

63 01 10 00

(c) The products listed below are transferred from Annex VI to Annex V of the Europe Agreement:

53 06 10 00

53 06 20 00

55 15 11 00

55 15 13 00

55 15 99 00

55 16 11 00

55 16 23 00

55 16 43 00

58 01 22 00

58 01 24 00

58 01 25 00

58 01 34 00

58 01 35 00

58 01 36 00

58 04 29 00

58 06 10 00

60 01 10 00

60 01 21 00

60 02 10 00

60 02 92 90

60 02 93 90

61 01 10 00

61 09 90 20

61 11 10 00

61 15 91 00

61 15 92 00

62 11 12 90

62 16 00 90

63 02 10 00

63 03 11 00

63 03 19 00

63 04 11 00

63 04 91 00

58 01 33 00

61 06 90 00

51 02 10 00

Appendix 2

ANNEX II (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Protocol)

>TABLE>

Appendix 3

ANNEX TO APPENDIX B (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Protocol)

>TABLE>

Joint Declaration

In the context of the negotiations held on 27-28 November 1995 in accordance with Article 1, paragraph 3 of the Additional Protocol to the Europe Agreement on Trade in Textile Products between the European Community and the Republic of Bulgaria, the following declarations were made:

(a) the Delegation of the Republic of Bulgaria declared that the Republic of Bulgaria is prepared to accelerate by one year its tariff dismantling for products of Chapters 50-63 of the Bulgarian Customs Tariff listed in Annex VI to the Europe Agreement, to reach zero duty on 1 January 2001, provided that the European Community reduces its preferential customs duties to a rate equal to two-sevenths of the basic duty rate from 1 January 1996 and

(b) the Commission of the European Communities declared that it was willing to give careful consideration to the Bulgarian proposal outlined in (a) above.