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 Poland

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the negotiations held on 20-21 November 1995 between our respective Delegations with a view to amending the Additional Protocol on trade in textiles products between the European Community and the Republic of Poland, applied since 1 January 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 5 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 Polish market and in particular the Polish undertaking to accelerate its tariff concessions in favour of textiles and clothing products originating within the European Community and exported to the Republic of Poland as outlined in Appendix 1 attached, with application from 1 January 1996. The Republic of Poland undertakes to notify 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. Annex II (EU direct quotas) is replaced by Appendix 2 attached.

3.2. 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, Agreed Minutes and your written confirmation, will constitute an Agreement in the form of an Exchange of Letters between the Community and the Republic of Poland. This Agreement shall enter into force on the first day of the month following that in which the European Community and the Republic of Poland 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 Polish tariff undertaking

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

The customs duties on the following products are, on 1 January 1996, to be reduced by 30 % of the basic duty rate, on 1 January 1997, to be further reduced by 30 % of the basic duty rate, and on 1 January 1998 the remaining customs duties shall be eliminated:

Combined nomenclature:

5004 00

5006 00

5307 10

5403 20

5403 39

5403 41

5403 42

5403 49

5404 10

5503 10

5503 30

5503 40

5504 10

5506 20

5506 90

5605 00

6111 10

6209 90

6212 90

6215 10

6503 00

6505 90

6601 10

5204 11

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)

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Letter from the Government of the Republic of Poland

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 20-21 November 1995 between our respective Delegations with a view to amending the Additional Protocol on trade in textiles products between the European Community and the Republic of Poland, applied since 1 January 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 5 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 Polish market and in particular the Polish undertaking to accelerate its tariff concessions in favour of textiles and clothing products originating within the European Community and exported to the Republic of Poland as outlined in Appendix 1 attached, with application from 1 January 1996. The Republic of Poland undertakes to notify 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. Annex II (EU direct quotas) is replaced by Appendix 2 attached.

3.2. 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, Agreed Minutes and your written confirmation, will constitute an Agreement in the form of an Exchange of Letters between the Community and the Republic of Poland. This Agreement shall enter into force on the first day of the month following that in which the European Community and the Republic of Poland 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 Poland

Appendix 1 Polish tariff undertaking

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

The customs duties on the following products are, on 1 January 1996, to be reduced by 30 % of the basic duty rate, on 1 January 1997, to be further reduced by 30 % of the basic duty rate, and on 1 January 1998 the remaining customs duties shall be eliminated:

Combined nomenclature:

5004 00

5404 10

6111 10

5006 00

5503 10

6209 90

5307 10

5503 30

6212 90

5403 20

5503 40

6215 10

5403 39

5504 10

6503 00

5403 41

5506 20

6505 90

5403 42

5506 90

6601 10

5403 49

5605 00

5204 11

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>

Agreed Minute

In the context of the negotiations held on 20-21 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 Poland, the Parties agreed that further consultations shall be held not later than 31 March 1996 on the question of the pricing of Polish exports of category 90 and category 50 products.

For the Government of

the Republic of Poland

For the Council of the

European Union