PROTOCOL for the adaptation of the trade aspects of the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the results of the agricultural negotiations of the Uruguay Round, including the improvements of the existing preferential regime

THE EUROPEAN COMMUNITY, hereinafter referred to as 'the Community`,

of the one part, and

THE GOVERNMENT OF THE REPUBLIC OF HUNGARY,

of the other part,

WHEREAS the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, hereinafter referred to as 'the Europe Agreement`, was signed in Brussels on 16 December 1991 and entered into force on 1 February 1994;

WHEREAS the Republic of Austria, the Republic of Finland and the Kingdom of Sweden joined the European Union on 1 January 1995;

WHEREAS, under the terms of Articles 76, 102 and 128 of the 1994 Act of Accession, the Republic of Austria, the Republic of Finland and the Kingdom of Sweden have to apply, as from 1 January 1995, the provisions of the preferential agreements concluded by the Community with certain third countries, among them Hungary;

WHEREAS the Community has adopted as from 1 January 1995 transitional measures in the form of autonomous tariff quotas taking into account the preferential tariff concessions applied by the Republic of Austria, the Republic of Finland and the Kingdom of Sweden towards the Republic of Hungary, and whereas the Republic of Hungary has adopted as from 1 January 1995 transitional measures in the form of tariff quotas taking into account the preferential tariff regime applied by the Republic of Hungary towards the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, notably concerning the agricultural and processed agricultural products;

WHEREAS the commitments of the Community and the Republic of Hungary in the framework of the negotiations of the Uruguay Round require the amendment of the import tariff regimes in the Community and the Republic of Hungary, in particular concerning the agricultural and processed agricultural products;

WHEREAS the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the implementation of the results of the Uruguay Round are likely to affect the bilateral concessions in the framework of the Europe Agreement, and it is therefore necessary to adapt such Agreement through a protocol for the adaptation of the trade aspects of this Agreement;

WHEREAS the Council decided by Decision 95/131/EC (1) to apply on a provisional basis from 1 January 1995 the bilateral Agreement which was negotiated by the Commission on behalf of the European Community, amending the additional Protocol to the Europe Agreement, on trade in textile products, between the European Community and the Republic of Hungary to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union;

WHEREAS the Council decided by Decision 96/224/EC (2) to apply on a provisional basis from 1 January 1996 the bilateral Agreement which was negotiated by the European Commission on behalf of the European Community, following the review and amendment of the additional Protocol to the Europe Agreement, on trade in textile products, between the European Community and the Republic of Hungary;

HAVE DECIDED to determine by mutual agreement the adaptations to be made on trade provisions of the Agreement following the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, of the one part, and the entry into force of the results of the Uruguay Round in the agricultural field, of the other part, and to this end have designated as their plenipotentiaries:

THE EUROPEAN COMMUNITY:

Manfred SCHEICH

Ambassador,

Permanent Representative of the Republic of Austria,

Chairman of the Permanent Representatives Committee

Günther BURGHARDT

Director-General of the Directorate-General for External Political Relations of the Commission of the European Communities

THE GOVERNMENT OF THE REPUBLIC OF HUNGARY:

Péter BALÁZS

Deputy State Secretary of the Ministry of Economic Affairs

WHO, having exchanged their full powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

Article 1

The additional Protocol to the Europe Agreement, on trade in textile products, shall be amended as follows:

1. Annex II shall be replaced by the text in Annex A to this Protocol.

2. Part 1 of Annex III shall be replaced by the text in Annex B to this Protocol.

3. The second indent of the second subparagraph of Appendix A, Title IV, of Article 14(2) shall be amended as follows:

'- two letters identifying the intended Member State of customs clearance as follows:

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4. The model of the certificate of origin attached to Appendix A shall be replaced by that given in Annex C to this Protocol.

5. The model of the export licence attached to Appendix A shall be replaced by that given in Annex D to this Protocol.

6. The model of the certificate applicable to certain cottage industry and folklore products attached to the Annex to Appendix C shall be replaced by that given in Annex E to this Protocol.

7. The Annex to Appendix B shall be replaced by the text given in Annex F to this Protocol.

Article 2

With regard to processed agricultural products:

1. The text of Protocol 3 to the Europe Agreement shall be replaced by the text given in Annex G to this Protocol.

2. Article 8(1) of the Europe Agreement shall be replaced by the following:

'1. The provisions of this Chapter shall apply to products originating in the Community and in Hungary listed in Chapters 25 to 97 of the Combined Nomenclature of the Community and the Hungarian Customs Tariff based on the Combined Nomenclature, with the exception of the products listed in Annex I and Protocol 3`.

3. Article 18(2) of the Europe Agreement shall be replaced by the following:

'2. The term "agricultural products" means the products listed in Chapters 1 to 24 of the Combined Nomenclature of the Community and the Hungarian Customs Tariff based on the Combined Nomenclature and the products listed in Annex I and Protocol 3, but excluding fishery products as defined by Regulation (EEC) No 3678/91`.

Article 3

With regard to agricultural products:

1. Annexes VIIIa and VIIIb and Annexes IXa and IXb to the Europe Agreement shall be replaced by the texts in Annexes H and I to this Protocol respectively.

2. Article 20(2) and (3) of the Europe Agreement shall be replaced by the following:

'2. The preferential regime granted to imports into the Community of products originating in Hungary is set out in Annex VIII.

3. The preferential regime granted to imports into Hungary of products originating in the Community is set out in Annex IX`.

3. Article 20(4) shall be repealed.

4. Annexes Xa, Xb, Xc, XIa, XIb, XIc, XId to the Agreement shall be repealed.

Article 4

The Annexes shall form an integral part of this Protocol. This Protocol shall form part of the Agreement.

Article 5

This Protocol shall be approved by the Community and the Republic of Hungary in conformity with their own procedures. The parties shall take the appropriate measures for the implementation of this Protocol.

Article 6

This Protocol shall enter into force on the first day of the first month following the Contracting Parties' notification of the accomplishment of the corresponding procedures according to Article 5.

Article 7

This Protocol shall be drawn up in two copies in the following languages: Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Hungarian, each of these texts being equally authentic.

Hecho en Bruselas, el treinta de octubre de mil novecientos noventa y ocho.

Udfærdiget i Bruxelles, den tredivte oktober nitten hundrede og otteoghalvfems.

Geschehen zu Brüssel am dreißigsten Oktober neunzehnhundertachtundneunzig.

¸ãéíå óôéò ÂñõîÝëëåò, óôéò ôñéÜíôá Ïêôùâñßïõ ÷ßëéá åííéáêüóéá åíåíÞíôá ïêôþ.

Done at Brussels on the thirtieth day of October in the year one thousand nine hundred and ninety-eight.

Fait à Bruxelles, le trente octobre mil neuf cent quatre-vingt-dix-huit.

Fatto a Bruxelles, addì trenta ottobre millenovecentonovantotto.

Gedaan te Brussel, de dertigste oktober negentienhonderd achtennegentig.

Feito em Bruxelas, em trinta de Outubro de mil novecentos e noventa e oito.

Tehty Brysselissä kolmantenakymmenentenä päivänä lokakuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkahdeksan.

Som skedde i Bryssel den trettionde oktober nittonhundranittioåtta.

Kelt Brüsszelben, 1998. október 30. napján.

Por la Comunidad Europea

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Ãéá ôçí ÅõñùðáúêÞ Êïéíüôçôá

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

>REFERENCE TO A GRAPHIC>

A Magyar Köztársaság Kormánya részérõl

>REFERENCE TO A GRAPHIC>

(1) OJ L 94, 26.4.1995, p. 1.

(2) OJ L 81, 30.3.1996, p. 264.

ANNEX A

'ANNEX II

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

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ANNEX B

'ANNEX III

HUNGARIAN CEILINGS ON COMMUNITY EXPORTS

PART 1

Community ceilings within the Hungarian global quota

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Notes:

1. In the management of its global quota on consumer goods, Hungary will ensure that preferential treatment is given to textiles and clothing products of Community origin, including as regards classification.

2. The levels of the Community sub-ceilings, outlined in this Annex shall be adjusted in case of a significant increase of internal consumption in Hungary, in order to improve the market access conditions for the Community. In particular, the Community share of the sub-ceilings should not be reduced as a result of an overall increase in the total level of the global quota for consumer goods.

The full product descriptions are to be found in Part 2.`

ANNEX C

'Annex to Appendix A Article 2(1)

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(1) Show net weight (kg) and also quantity in the unit prescribed for category where other than net weight - Indiquer le poids net en kilogrammes ainsi que la quantité dans l'unité prévue pour la catégorie si cette unité n'est pas le poids net. (2) In the currency of the sale contract - Dans la monnaie du contrat de vente. 1 Exporter (name, full address, country) Exportateur (nom, adresse complète, pays) 5 Consignee (name, full address, country) Destinataire (nom, adresse complète, pays) ORIGINAL 2No 3 Quota year Année contingentaire 4 Category number Numéro de catégorie CERTIFICATE OF ORIGIN (Textile products) CERTIFICAT D'ORIGINE (Produits textiles) 6 Country of origin Pays d'origine 7 Country of destination Pays de destination 8 Place and date of shipment - Means of transport Lieu et date d'embarquement - Moyen de transport 9 Supplementary details Données supplémentaires 10 Marks and numbers - Number and kind of packages - DESCRIPTION OF GOODS Marques et numéros - Nombre et nature des colis - DÉSIGNATION DES MARCHANDISES 11 Quantity (1) Quantité (1) 12 fob value (2) Valeur fob (2) 13 CERTIFICATION BY THE COMPETENT AUTHORITY - VISA DE L'AUTORITÉ COMPÉTENTE I, the undersigned, certify that the goods described above originated in the country shown in box No 6, in accordance with the provisions in force in the European Community. Je soussigné certifie que les marchandises désignées ci-dessus sont originaires du pays figurant dans la case 6, conformément aux dispositions en vigueur dans la Communauté européenne. 14 Competent authority (name, full address, country) Autorité compétente (nom, adresse complète, pays) At - À . , on - le . (Signature) (Stamp - Cachet)>END OF GRAPHIC>

`

ANNEX D

'Annex to Appendix A Article 7(1)

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(1) Show net weight (kg) and also quantity in the unit prescribed for category where other than net weight - Indiquer le poids net en kilogrammes ainsi que la quantité dans l'unité prévue pour la catégorie si cette unité n'est pas le poids net. (2) In the currency of the sale contract - Dans la monnaie du contrat de vente. 1 Exporter (name, full address, country) Exportateur (nom, adresse complète, pays) 5 Consignee (name, full address, country) Destinataire (nom, adresse complète, pays) ORIGINAL 2No 3 Quota year Année contingentaire 4 Category number Numéro de catégorie EXPORT LICENCE (Textile products) LICENCE D'EXPORTATION (Produits textiles) 6 Country of origin Pays d'origine 7 Country of destination Pays de destination 8 Place and date of shipment - Means of transport Lieu et date d'embarquement - Moyen de transport 9 Supplementary details Données supplémentaires 10 Marks and numbers - Number and kind of packages - DESCRIPTION OF GOODS Marques et numéros - Nombre et nature des colis - DÉSIGNATION DES MARCHANDISES 11 Quantity (1) Quantité (1) 12 fob value (2) Valeur fob (2) 13 CERTIFICATION BY THE COMPETENT AUTHORITY - VISA DE L'AUTORITÉ COMPÉTENTE I, the undersigned, certify that the goods described above have been charged against the quantitative limit established for the year shown in box No 3 in respect of the category shown in box No 4 by the provisions regulating trade in textile products with the European Community. Je soussigné certifie que les marchandises désignées ci-dessus ont été imputées sur la limite quantitative fixée pour l'année indiquée dans la case 3 pour la catégorie désignée dans la case 4 dans le cadre des dispositions régissant les échanges de produits textiles avec la Communauté européenne. 14 Competent authority (name, full address, country) Autorité compétente (nom, adresse complète, pays) At - À . , on - le . (Signature) (Stamp - Cachet)>END OF GRAPHIC>

`

ANNEX E

'Annex to Appendix C

>START OF GRAPHIC>

(1) In the currency of the sale contract - Dans la monnaie du contrat de vente. (2) Delete as appropriate - Biffer la (les) mention(s) inutile(s). 1 Exporter (name, full address, country) Exportateur (nom, adresse complète, pays) 3 Consignee (name, full address, country) Destinataire (nom, adresse complète, pays) ORIGINAL 2No CERTIFICATE in regard to HANDLOOMS, TEXTILE HANDICRAFTS and TRADITIONAL TEXTILE PRODUCTS, OF THE COTTAGE INDUSTRY, issued in conformity with and under the conditions regulating trade in textile products with the European Community. CERTIFICAT relatif aux TISSUS, TISSÉS SUR MÉTIERS À MAIN, aux PRODUITS TEXTILES FAITS À LA MAIN, et aux PRODUITS TEXTILES RELEVANT DU FOLKLORE TRADITIONNEL, DE FABRICATION ARTISANALE, délivré en conformité avec et sous les conditions régissant les échanges de produits textiles avec la Communauté européenne. 4 Country of origin Pays d'origine 5 Country of destination Pays de destination 6 Place and date of shipment - Means of transport Lieu et date d'embarquement - Moyen de transport 7 Supplementary details Données supplémentaires 8 Marks and numbers - Number and kind of packages - DESCRIPTION OF GOODS Marques et numéros - Nombre et nature des colis - DÉSIGNATION DES MARCHANDISES 9 Quantity Quantité 10 fob value (1) Valeur fob (1) 11 CERTIFICATION BY THE COMPETENT AUTHORITY - VISA DE L'AUTORITÉ COMPÉTENTE I, the undersigned, certify that the consignment described above includes only the following textile products of the cottage industry of the country shown in box No 4: (a) fabrics woven on looms operated solely by hand or foot (handlooms) (2); (b) garments or other textile articles obtained manually from the fabrics described under (a) and sewn solely by hand without the aid of any machine (handicrafts) (2); (c) traditional folklore handicraft textile products made by hand, as defined in the list agreed between the European Community and the country shown in box No 4. Je soussigné certifie que l'envoi décrit ci-dessus contient exclusivement les produits textiles suivants relevant de la fabrication artisanale du pays figurant dans la case 4: (a) tissus tissés sur des métiers actionnés à la main ou au pied (handlooms) (2); (b) vêtements ou autres articles textiles obtenus manuellement à partir de tissus décrits sous (a) et cousus uniquement à la main sans l'aide d'une machine (handicrafts) (2); (c) produits textiles relevant du folklore traditionnel fabriqués à la main, comme définis dans la liste convenue entre la Communauté européenne et le pays indiqué dans la case 4. 12 Competent authority (name, full address, country) Autorité compétente (nom, adresse complète, pays) At - À . , on - le . (Signature) (Stamp - Cachet)>END OF GRAPHIC>

`

ANNEX F

'Annex to Appendix B

OUTWARD PROCESSING TRAFFIC

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ANNEX G

'PROTOCOL 3

on trade between Hungary and the Community processed agricultural products

Article 1

1. The Community and Hungary apply to processed agricultural products the duties, listed in Annex I and Annex II respectively in accordance with the conditions mentioned therein, whether limited by quota or not.

2. The Association Council will decide:

- the extension of the list of processed agricultural products under this Protocol,

- the amendment of the duties mentioned in the Annexes;

- the increase or abolition of tariff quotas.

3. The Association Council may replace the duties established by this by a regime established on the basis of the respective market prices of the Community and Hungary of the agricultural products actually used in the manufacture of processed agricultural products subject to this Protocol. It will establish the list of goods subject to these amounts and as a consequence, the list of basic products, to this end, it will decide the general rules of application.

Article 2

The duties applied conforming to Article 1 may be reduced by decision of the Association Council:

- when in trade between the Community and Hungary the duties applied to the basic products are reduced, or

- in response to reductions resulting from mutual concessions relating to processed agricultural products.

The reductions provided for under the first indent of the first paragraph will be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deduced from the duties applied to these basic agricultural products.

Article 3

The Community and Hungary will inform each other of the administrative arrangements adopted for the products covered by this Protocol.

These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

ANNEX I

(TABLES 1 TO 5)

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ANNEX II

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ANNEX H

'ANNEX VIII

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Annex to Annex H

Minimum import price arrangement for certain soft fruit for processing

The importation into the Community of the products listed in this Annex originating in Hungary will be subject to the conditions described in this Annex

1. Minimum import prices are fixed for the following products:

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2. The minimum import prices, as set out in Article 1, will be respected on a consignment by consignment basis. In the case of a customs declaration value being lower than the minimum import price, a countervailing duty will be charged equal to the difference between the minimum import price and the customs declaration value.

3. If the import prices of a given product covered by this Annex show a trend suggesting that the prices could go below the level of the minimum import prices in the immediate future, the European Commission will inform the Hungarian authorities in order to enable them to correct the situation.

4. At the request of either the Community or Hungary, the Association Committee shall examine the functioning of the system of the revision of the level of the minimum import prices. If appropriate, the Association Committee shall take the necessary decisions.

5. To encourage and promote the development of trade and for the mutual benefit of all parties concerned, a consultation meeting will be organised three months before the beginning of each marketing year in the European Community. This consultation meeting will take place between the European Commission and the interested European producers' organisations for the products concerned, on the one part and the authorities', producers' and exporters' organisations of all the associated exporting countries, on the other part.

During this consultation meeting, the market situation for soft fruit including, in particular, forecasts for production, stock situation, price evolution and possible market development, as well as possibilities to adapt supply to demand, will be discussed.

Exchange of Letters between the Community and Hungary regarding entry prices applied to the import of fruit and vegetables into the Community

A. Letter from Hungary

Sir,

The Agreement on the adaptation of the agricultural part of the Europe Agreement following the implementation of the Uruguay Round and the enlargement of the European Community signed today between the European Community and Hungary does not contain any provisions regarding the entry price regime applied to the import of fruit and vegetables into the Community.

It has been agreed that the Parties will continue consultations on this sector in order to find a solution. Taking into account, inter alia, the experience of the last marketing years, the solution should allow the continuation of trade relations traditionally established between the Community and Hungary for the products concerned. In the mean time, Hungary will not be treated less favourably than other associated countries in this context.

In addition, both parties will continue talks in the framework of the relevant procedures of the Europe Agreement on any other unresolved issues in order to find as soon as possible mutually acceptable solutions.

I should be obliged if you would confirm the agreement of the Council of the European Union to the contents of this letter.

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

For the Government of the Republic of Hungary

B. Letter from the Community

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

"The Agreement on the adaptation of the agricultural part of the Europe Agreement following the implementation of the Uruguay Round and the enlargement of the European Community signed today between the European Community and Hungary does not contain any provisions regarding the entry price regime applied to the import of fruit and vegetables into the Community.

It has been agreed that the Parties will continue consultations on this sector in order to find a solution. Taking into account, inter alia, the experience of the last marketing years, the solution should allow the continuation of trade relations traditionally established between the Community and Hungary for the products concerned. In the mean time, Hungary will not be treated less favourably than other associated countries in this context.

In addition, both parties will continue talks in the framework of the relevant procedures of the Europe Agreement on any other unresolved issues in order to find as soon as possible mutually acceptable solutions.

I should be obliged if you would confirm the agreement of the Council of the European Union to the contents of this letter."

I have the honour to confirm that the Council of the European Union is in agreement with the contents of this letter.

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

On behalf of the Council of the European Union`

ANNEX I

'ANNEX IX

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