AGREEMENT in the form of an exchange of letters between the European Community and the Republic of Hungary amending the Additional Protocol of the Europe Agreement on trade in textile products between the European Economic Community and the Republic of Hungary to take into account the expected accession of the Republic of Austria, the Republic of Finland, the Kingdom of Norway and the Kingdom of Sweden to the European Union

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the Additional Protocol to the Europe Agreement on trade in textile products between the European Economic Community and the Republic of Hungary, initialled on 10 December 1992.

2. In order to take into account the likely accession of the Republic of Austria, the Republic of Finland and the Kingdom of Norway and the Kingdom of Sweden to the European Union on 1 January 1995, the European Community considers that the following amendments should be made to the Additional Protocol to the Europe Agreement on trade in textile products between the European Economic Community and the Republic of Hungary:

2.1. Annex II of the Additional Protocol, which sets out the quantitative limits for exports from the Republic of Hungary to the European Union, is replaced by Appendix I to this letter.

Part 1 of Annex III of the Additional Protocol, which sets out the quantitative limits for exports from the European Union to the Republic of Hungary, is replaced by Appendix Ib to this letter.

2.2. Article 14, paragraph 2, subparagraph 2, second indent of Appendix A, Title IV, should be amended as follows:

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

AT = Austria

BL = Benelux

DE = Federal Republic of Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

NO = Norway

PT = Portugal

SE = Sweden`

2.3. The Annex to Appendix A, setting out the model of the certificate of origin, is replaced by Appendix II to this letter.

2.4. The Annex to Appendix A, setting out the model of the export licence, is replaced by Appendix III to this letter.

2.5. The Annex to Appendix C, setting out the model of the certificate applicable to certain cottage industry and folklore products, is replaced by Appendix IV to this letter.

2.6. The Appendix B of the Additional Protocol, which sets out the quantitative limits for economic outward processing operations, is replaced by Appendix V to this letter.

2.7. Should one or more acceding countries not join the European Union, the adjustments calculated for this or these countries shall be deducted from the 'Adjusted limits` set out in Appendices to this letter and the respective amendments mentioned under point 2.2 shall not enter into force.

2.8. Notwithstanding the modifications referred to under points 2.3, 2.4 and 2.5, during a transitional period that will end on 30 June 1995, the competent authorities of the Republic of Hungary shall be authorized to continue issuing the forms that were in use in 1994.

3. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this Agreement in the form of an exchange of letters shall enter into force on the first day of the month following the day on which the Parties have notified each other that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 1995 on the conditions to be specified in an exchange of notes (see Appendix VI).

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

For the Council of the European Union

Appendix I

ANNEX II

COMMUNITY QUANTITATIVE LIMITS FOR THE REPUBLIC OF HUNGARY (The full product descriptions of the categories listed in this Annex are to be found in Annex I of the Protocol)

>TABLE>

Appendix Ib

ANNEX III HUNGARIAN CEILINGS ON COMMUNITY EXPORTS

PART 1 (The full product descriptions are to be found in Annex III, Part 2, of the Protocol)

>TABLE>

Notes

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

2. The levels of the Community subceilings 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 subceilings should not be reduced as a result of an overall increase in the total level of the global quota for consumer goods.

Appendix II

>PICTURE>

Appendix III

>PICTURE>

Appendix IV

>PICTURE>

Appendix V

ANNEX TO APPENDIX B

OUTWARD PROCESSING TRAFFIC Quantitative limits

>TABLE>

Appendix VI

Exchange of notes

The Directorate-General for External Economic Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Hungary to the European Communities and has the honour to refer to the Additional Protocol to the Europe Agreement on trade in textile products between the Republic of Hungary and the European Economic Community, initialled on 10 December 1992 as amended by the exchange of letters initialled on 25 November 1994.

The Directorate-General wishes to inform the Mission of the Republic of Hungary that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Additional Protocol, the European Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Additional Protocol provided that six months notice is given.

The Directorate-General for External Economic Relations would be grateful if the Mission of the Republic of Hungary would confirm its agreement to the foregoing.

The Directorate-General for External Economic Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Republic of Hungary to the European Communities the assurance of its highest consideration.

The Mission of the Republic of Hungary to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the note of the Directorate-General of (date of note verbale) regarding the Additional Protocol to the Europe Agreement on trade in textile products between the Republic of Hungary and the European Economic Community initialled on 10 December 1992, as amended by the exchange of letters initialled on 25 November 1995.

The Mission of the Republic of Hungary wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Additional Protocol, the Government of the Republic of Hungary is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Additional Protocol provided that six months notice is given.

The Mission of the Republic of Hungary to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.

Letter from the Government of the Republic of Hungary

Sir,

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

'Sir,

1. I have the honour to refer to the Additional Protocol to the Europe Agreement on trade in textile products between the European Economic Community and the Republic of Hungary, initialled on 10 December 1992.

2. In order to take into account the likely accession of the Republic of Austria, the Republic of Finland and the Kingdom of Norway and the Kingdom of Sweden to the European Union on 1 January 1995, the European Community considers that the following amendments should be made to the Additional Protocol to the Europe Agreement on trade in textile products between the European Economic Community and the Republic of Hungary:

2.1. Annex II of the Additional Protocol, which sets out the quantitative limits for exports from the Republic of Hungary to the European Union, is replaced by Appendix I to this letter.

Part 1 of Annex III of the Additional Protocol, which sets out the quantitative limits for exports from the European Union to the Republic of Hungary, is replaced by Appendix Ib to this letter.

2.2. Article 14, paragraph 2, subparagraph 2, second indent of Appendix A, Title IV, should be amended as follows:

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

AT = Austria

BL = Benelux

DE = Federal Republic of Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

NO = Norway

PT = Portugal

SE = Sweden"

2.3. The Annex to Appendix A, setting out the model of the certificate of origin, is replaced by Appendix II to this letter.

2.4. The Annex to Appendix A, setting out the model of the export licence, is replaced by Appendix III to this letter.

2.5. The Annex to Appendix C, setting out the model of the certificate applicable to certain cottage industry and folklore products, is replaced by Appendix IV to this letter.

2.6. The Appendix B of the Additional Protocol, which sets out the quantitative limits for economic outward processing operations, is replaced by Appendix V to this letter.

2.7. Should one or more acceding countries not join the European Union, the adjustments calculated for this or these countries shall be deducted from the "Adjusted limits" set out in Appendices to this letter and the respective amendments mentioned under point 2.2 shall not enter into force.

2.8. Notwithstanding the modifications referred to under points 2.3, 2.4 and 2.5, during a transitional period that will end on 30 June 1995, the competent authorities of the Republic of Hungary shall be authorized to continue issuing the forms that were in use in 1994.

3. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this Agreement in the form of an exchange of letters shall enter into force on the first day of the month following the day on which the Parties have notified each other that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 1995 on the conditions to be specified in an exchange of notes (see Appendix VI).

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 Hungary

Appendix I

ANNEX II

COMMUNITY QUANTITATIVE LIMITS FOR THE REPUBLIC OF HUNGARY (The full product descriptions of the categories listed in this Annex are to be found in Annex I of the Protocol)

>TABLE>

Appendix Ib

ANNEX III HUNGARIAN CEILINGS ON COMMUNITY EXPORTS

PART 1 (The full product descriptions are to be found in Annex III, Part 2, of the Protocol)

>TABLE>

Notes

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

2. The levels of the Community subceilings 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 subceilings should not be reduced as a result of an overall increase in the total level of the global quota for consumer goods.

Appendix II

>PICTURE>

Appendix III

>PICTURE>

Appendix IV

>PICTURE>

Appendix V

ANNEX TO APPENDIX B

OUTWARD PROCESSING TRAFFIC Quantitative limits

>TABLE>

Appendix VI

Exchange of notes

The Directorate-General for External Economic Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Hungary to the European Communities and has the honour to refer to the Additional Protocol to the Europe Agreement on trade in textile products between the Republic of Hungary and the European Economic Community, initialled on 10 December 1992 as amended by the exchange of letters initialled on 25 November 1994.

The Directorate-General wishes to inform the Mission of the Republic of Hungary that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Additional Protocol, the European Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Additional Protocol provided that six months notice is given.

The Directorate-General for External Economic Relations would be grateful if the Mission of the Republic of Hungary would confirm its agreement to the foregoing.

The Directorate-General for External Economic Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Republic of Hungary to the European Communities the assurance of its highest consideration.

The Mission of the Republic of Hungary to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the note of the Directorate-General of (date of note verbale) regarding the Additional Protocol to the Europe Agreement on trade in textile products between the Republic of Hungary and the European Economic Community initialled on 10 December 1992, as amended by the exchange of letters initialled on 25 November 1995.

The Mission of the Republic of Hungary wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Additional Protocol, the Government of the Republic of Hungary is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Additional Protocol provided that six months notice is given.

The Mission of the Republic of Hungary to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.