Interim Agreement on trade and trade-related matters between the European Economic Community and the European Coal and Steel Community, of the one part, and the Republic of Hungary, of the other part - Protocol 1 on textile and clothing products - Protocol 2 on ECSC products - Protocol 3 on trade between the Republic of Hungary and the Community in processed agricultural products not covered by Annex II to the EEC Treaty - Protocol 4 concerning the definition of the concept of originating products and methods of administrative cooperation - Protocol 5 on specific provisions relating to trade between the Hungary, of the one part, and Spain and Portugal, of the other part - Protocol 6 on mutual assistance in customs matters - Protocol 7 on concessions with annual limits - Final Act - Joint Declarations - Exchanges of Letters - Unilateral Declarations
Date: 1992-02-27
Institutions: European Coal and Steel Community, European Economic Community, Hungary
Subjects: Hungary, agreement (EU), cooperation agreement, economic cooperation, trade cooperation













EUR-Lex - 21992A0430(03) - EN






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21992A0430(03)

Interim Agreement on trade and trade-related matters between the European Economic Community and the European Coal and Steel Community, of the one part, and the Republic of Hungary, of the other part - Protocol 1 on textile and clothing products - Protocol 2 on ECSC products - Protocol 3 on trade between the Republic of Hungary and the Community in processed agricultural products not covered by Annex II to the EEC Treaty - Protocol 4 concerning the definition of the concept of originating products and methods of administrative cooperation - Protocol 5 on specific provisions relating to trade between the Hungary, of the one part, and Spain and Portugal, of the other part - Protocol 6 on mutual assistance in customs matters - Protocol 7 on concessions with annual limits - Final Act - Joint Declarations - Exchanges of Letters - Unilateral Declarations  


Official Journal L 116 , 30/04/1992 P. 0002 - 0129 





INTERIM AGREEMENT on trade and trade-related matters between the  European Economic Community and the European Coal and Steel Community, of the one part, and the  Republic of Hungary, of the other partThe EUROPEAN ECONOMIC COMMUNITY and the  EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as 'the Community`, of the one part, and the Government of the REPUBLIC OF HUNGARY, hereinafter referred to as 'Hungary`, of the other part, Whereas the European Agreement establishing an association between the European Communities and  their Member States and the Republic of Hungary was signed in Brussels on 16 December 1991; Whereas the aim of the European Agreement is to provide an appropriate framework for political  dialogue; it is to establish a gradual free trade area between the Community and Hungary covering  substantially all trade between them; it is to govern commercial and economic relations between the  Parties and includes provisions relating to financial cooperation and assistance and the promotion  of cooperation in cultural matters; Whereas the European Agreement is intended to strengthen and widen the relations established  previously, notably by the Agreement on trade and commercial and economic cooperation between the  European Economic Community and Hungary signed on 26 September 1988 and the Protocol on trade and  commercial and economic cooperation between the European Coal and Steel Community and Hungary  signed on 31 October 1991; Whereas it is necessary to ensure the development of trade relations between the implementation of  the agreements on trade and commercial and economic cooperation and that of the European  Agreement; Whereas to this end it is necessary to implement as speedily as possible, by means of an Interim  Agreement, provisions of the European Agreement on trade and trade related matters; Whereas it is necessary to ensure that pending the entry into force of the European Agreement and  the establishment of the Association Council, the Joint Committee set up by the Agreement on trade  and commercial and economic cooperation can exercise the powers assigned by the European Agreement  to the Association Council which are necessary in order to implement the Interim Agreement, HAVE DECIDED to conclude this Agreement and to this end have designated as their  plenipotentiaries, THE EUROPEAN ECONOMIC COMMUNITY:      Hans van den BROEK, Minister for Foreign Affairs of the Kingdom of the Netherlands, President-in-Office of the Council  of the European Communities; Frans ANDRIESSEN, Vice-President of the Commission of the European Communities; THE EUROPEAN COAL AND STEEL COMMUNITY:  Frans ANDRIESSEN, Vice-President of the Commission of the European Communities; THE GOVERNMENT OF THE REPUBLIC OF HUNGARY:  Béla KADAR, Minister for Foreign Economic Relations of the Republic of Hungary; Who, having exchanged their full powers, formed in good and due form, HAVE AGREED AS FOLLOWS: TITLE IFREE MOVEMENT OF GOODSArticle 1 (EA 7)1.    The Community and Hungary  shall gradually establish a free-trade area in a transitional period lasting a maximum of 10 years  starting from the entry into force of this Agreement (hereinafter called 'the Agreement`) in  accordance with the provisions of the present agreement and in conformity with those of the General  Agreement on Tariffs and Trade. 2.    The combined nomenclature of goods shall be applied to the classification of goods for  imports into the Community. The Hungarian customs tariffs shall be applied to the classification of  goods for imports into Hungary. 3.    Subject to specific provisions in Chapters II and III, for each product the basic duty to  which the successive reductions set out in this Agreement are to be applied shall be that actually  applied erga omnes on the day preceding the date of entry into force of the Agreement. 4.    If, after entry into force of the Agreement, any tariff reduction is applied on an erga omnes  basis, in particular reductions resulting from the tariff agreement concluded as a result of the  GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 3  as from the date when such reductions are applied. 5.    The Community and Hungary shall communicate to each other their respective basic duties. Chapter IIndustrial productsArticle 2 (EA 8)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 and of the Hungarian Customs Tariff with the exception of the products listed in Annex  I. 2.    The provisions of Articles 3 to 7 included do not apply to products mentioned in Articles 9  and 10. Article 3 (EA 9)1.    Customs duties on imports applicable in the Community to products  originating in Hungary other than those listed in Annexes IIa, IIb and III shall be abolished on  the entry into force of the Agreement. 2.    Customs duties on imports applicable in the Community to products originating in Hungary  which are listed in Annex IIa shall be progressively abolished in accordance with the following  timetable: -   on the date of entry into force of this Agreement each duty shall be reduced to 50  % of the  basic duty, - one year after the date of entry into force of this Agreement the remaining duties shall be  eliminated. Customs duties on imports applicable in the Community to products originating in Hungary listed in  Annex IIb shall be progressively reduced, from the date of entry into force of this Agreement, by  annual reductions of 20  % of the basic duty, so as to arrive at a total abolition by the end of  the fourth year after the date of entry into force of the Agreement. 3.    The products of Hungarian origin listed in Annex III shall benefit from a suspension of  customs duties on imports within the limits of annual Community tariff quotas or ceilings  increasing progressively in accordance with the conditions defined in that Annex. At the same time, customs duties on imports applicable to import quantities in excess of the quotas  or ceilings provided for above shall be progressively abolished so as to arrive at a complete  abolition of customs duties on imports of the products concerned at the end of the fifth year at  the latest. 4.    Quantitative restrictions on imports to the Community and measures having equivalent effect  shall be abolished on the date of entry into force of the Agreement with regard to the products  originating in Hungary.Article 4 (EA 10)1.    Customs duties on imports applicable in Hungary to  products originating in the Community which are listed in Annex IV shall be reduced progressively: -   upon entry into force of the Agreement - to two-thirds of the basic duty, - on 1 January 1993 - to one-third of the basic duty, - on 1 January 1994 - to zero. 2.    Customs duties on imports applicable in Hungary to products originating in the Community not  listed in Annexes IV and V shall be reduced progressively: -   on 1 January 1995 - to two-thirds of the basic duty, - on 1 January 1996 - to one-third of the basic duty, - on 1 January 1997 - to zero. 3.    Customs duties on imports applicable in Hungary to products originating in the Community  which are listed in Annex V shall be reduced progressively: -   on 1 January 1995 - to 90  % of the basic duty, - on 1 January 1996 - to 75  % of the basic duty, - on 1 January 1997 - to 60  % of the basic duty, - on 1 January 1998 - to 45  % of the basic duty, - on 1 January 1999 - to 30  % of the basic duty, - on 1 January 2000 - to 15  % of the basic duty, - on 1 January 2001 - to   0  % of the basic duty. 4.    Quantitative restrictions on imports into Hungary and measures having an equivalent effect  thereto of products originating in the Community as listed in Annex VIa shall be progressively  abolished between 1  January 1995 and 31 December 2000 according to the timetable provided in that  Annex. All other quantitative  restrictions and measures having an equivalent effect thereto shall  be abolished upon entry into force of the Agreement. The Joint Committee referred to in Article 36 (hereinafter referred to as 'the Joint Committee`)  shall periodically review the progress achieved in dismantling quantitative restrictions. From the date of entry into force of the Agreement Hungary shall open import ceilings for products  originating in the Community listed in Annex VIb and on the conditions contained therein. Article  5 (EA 11)The provisions concerning the abolition of customs duties on imports shall also apply to  customs duties of a fiscal nature. Article 6 (EA 12)The Community shall abolish in its imports  from Hungary charges having an effect equivalent to customs duties on imports upon the entry into  force of the Agreement. Hungary shall abolish on its imports from the Community charges having an effect equivalent to  customs duties on imports in accordance with the following timetable: >TABLE>Article 7 (EA 13)1.    The Community and Hungary shall progressively abolish  between them at the latest by the end of the fifth year after entry into force of the Agreement any  customs duties on exports and charges having equivalent effect as well as quantitative restrictions  on exports and any measures having equivalent effect except those that might be required for the  administration of international obligations. Article 8 (EA 14)Each party declares its readiness  to reduce its customs duties in trade with the other party more rapidly than is provided for in  Articles 3 and 4 if its general economic situation and the situation of the economic sector  concerned so permit. The Joint Committee may make recommendations to this effect. Article 9 (EA 15)Protocol 1 lays  down the arrangements applicable to the textile products referred to therein. Article 10 (EA  16)Protocol 2 lays down the arrangements applicable to products covered by the Treaty  establishing the European Coal and Steel Community. Article 11 (EA 17)1.    The provisions of  the present Chapter do not preclude the retention by the Community of an agricultural component in  the duties applicable to products listed in Annex VII in respect of products originating in  Hungary. 2.     The provisions of the present Chapter do not preclude the introduction of an agricultural  component by Hungary in the duties applicable to the products listed in Annex VII in respect of  products originating in the Community. Chapter IIAgricultureArticle 12 (EA 18)1.    The provisions of this Chapter shall apply to  agricultural products originating in the Community and in Hungary. 2.    The term 'agricultural products` means the products listed in Chapters 1 to 24 of the  combined nomenclature and of the Hungarian Customs Tariff and the products listed in Annex I, but  excluding fishery products as defined by Regulation (EEC) No  3687/91. Article 13 (EA  19)Protocol 3 lays down the trade arrangements for processed agricultural products which are  listed in such protocol. Article 14 (EA 20)1.    The Community shall abolish at the date of  entry into force of the Agreement the quantitative restrictions on imports of agricultural products  originating in  Hungary maintained by virtue of Council Regulation (EEC) No  3420/83 in the form  existing on the date of signature hereof. 2.    The agricultural products originating in Hungary listed in Annex VIIIa or Annex VIIIb shall  benefit, upon the date of entry into force of this Agreement, from the reduction of levies within  the limit of Community quotas or from the reduction of customs duties upon the conditions provided  in the same Annex. 3.    Agricultural products listed in Annex IXa originating in the Community shall be imported into  Hungary free of quantitative restrictions. Agricultural products originating in the Community  listed in Annex IXb shall be free from quantitative restrictions up to the quantities set out in  that Annex. 4.    The Community and Hungary shall grant each other the concessions referred to in Annexes Xa,  Xb and Xc and XIa, XIb, XIc and XId, on a harmonious and reciprocal basis, in accordance with the  conditions laid down therein. 5.    Taking account of the volume of trade in agricultural products between them, of their  particular sensitivity, of the rules of the common agricultural policy of the Community and of the  rules of the agricultural policy of Hungary and of the consequences of the multilateral trade  negotiations under the General Agreement on Tariffs and Trade, the Community and Hungary shall  examine on a regular basis in the Joint Committee, product by product and on an orderly and  reciprocal basis, the possibilities of granting each other further concessions. Article 15 (EA  21)Notwithstanding other provisions of this Agreement and in particular Article 24, if, given the  particular sensitivity of the agricultural markets, imports of products originating in one Party,  which are the subject of concessions granted in Article 14, cause serious disturbance to the  markets in the other party, both Parties shall enter into consultations immediately to find an  appropriate solution. Pending such solution, the Party concerned may take the measures it deems  necessary. Chapter IIIFisheriesArticle 16 (EA 22)The provisions of this chapter shall apply to fishery  products originating in the Community and in Hungary, which are covered by Regulation (EEC) No  3687/91 on the common organization of the market in the sector of fishery products. Article 17 (EA  23)The provisions of Article 14 (5) shall apply mutatis mutandis to fishery. Chapter IVCommon provisionsArticle 18 (EA 24)The provisions of this Chapter shall apply to  trade in all products except where otherwise provided herein or in Protocols 1, 2 or 3. Article 19  (EA 25)1.    No new customs duties on imports or exports or charges having equivalent effect  shall be introduced, nor shall those already applied be increased, in the trade between the  Community and Hungary from the date of entry into force of the Agreement. 2.    No new quantitative restriction on imports or exports or measure having equivalent effect  shall be introduced nor shall those existing be made more restrictive in the trade between the  Community and Hungary from the date of entry into force of the Agreement. 3.    Without prejudice to the concessions granted under Article 14, the provisions of paragraphs 1  and 2 of this Article shall not restrict in any way the pursuance of the respective agricultural  policies of Hungary and the Community or the taking of any measures under such policies. Article  20 (EA 26)1.    The two parties shall refrain from any measure or practice of an internal fiscal  nature establishing, whether directly or indirectly, discrimination between the products of one  party and like products originating in the territory of the other party. 2.    Products exported to the territory of one of the two parties may not benefit from repayment  of internal  taxation in excess of the amount of direct or indirect taxation imposed on them.  Article 21 (EA 27)1.    This Agreement shall not preclude the maintenance or establishment of  customs unions, free-trade areas or arrangements for frontier trade except insofar as they alter  the trade arrangements provided for in this Agreement. 2.    Consultations between the Parties shall take place within the Joint Committee concerning  agreements establishing such customs unions or free-trade areas and, where requested, on other  major issues related to their respective trade policy with third countries. In particular in the  event of a third country acceding to the Community, such consultations shall take place so as to  ensure that account can be taken of the mutual interests of the Community and Hungary stated in  this Agreement. Article 22 (EA 28)Exceptional measures of limited duration which derogate from  the provisions of Article 4 and Article 19 (1) may be taken by Hungary in the form of increased  customs duties. These measures may only concern infant industries, or certain sectors undergoing restructuring or  facing serious difficulties, particularly where these difficulties produce important social  problems. Customs duties on imports applicable in Hungary to products originating in the Community introduced  by these measures may not exceed 25  % ad valorem and shall maintain an element of preference for  products originating in the Community. The total value of imports of the products which are subject to these measures may not exceed 15  %  of total imports of industrial products from the Community as defined in Chapter I, during the last  year for which statistics are available. These measures shall be applied for a period not exceeding five years unless a longer duration is  authorized by the Joint Committee. They shall cease to apply at the latest at the expiration of the  transitional period. No such measures can be introduced in respect of a product if more than three years have elapsed  since the elimination of all duties and quantitative restrictions or charges or measures having an  equivalent effect concerning that product. Hungary shall inform the Joint Committee of any exceptional measures it intends to take and, at the  request of the Community, consultations shall be held in the Joint  Committee on such measures and  the sectors to which they apply before they are applied. When taking such measures Hungary shall  provide the Joint Committee with a schedule for the elimination of the customs duties introduced  under this Article. This schedule shall provide for a phasing out of these duties starting at the  latest two years after their introduction at equal annual rates. The Joint Committee may decide on  a different schedule. Article 23 (EA 29)If one of the Parties finds that dumping is taking place  in trade with the other party within the meaning of Article  VI of the General Agreement on Tariffs  and Trade, it may take appropriate measures against this practice in accordance with the Agreement  relating to the application of Article VI of the General Agreement on Tariffs and Trade, with  related internal legislation and with the conditions and procedures laid down in Article  27.  Article 24 (EA 30)Where any product is being imported in such increased quantities and under such  conditions as to cause or threaten to cause: -   serious injury to domestic producers of like or directly competitive products in the territory  of one of the Parties, or- serious disturbances in any sector of the economy or difficulties which  could bring about serious deterioration in the economic situation of a region, the Community or Hungary, whichever is concerned, may take appropriate measures under the  conditions and  in accordance with the procedures laid down in Article  27. Article 25 (EA  31)Where compliance with the provisions of Articles 7 and 19 leads to: (i)   re-export towards a third country against which the exporting party maintains, for the  product concerned, quantitative export restrictions, export duties or measures having equivalent  effect, or(ii) a serious shortage, or threat thereof, of a product essential to the exporting  party, and where the situations referred to above give rise, or are likely to give rise to major  difficulties for the exporting party, that party may take appropriate measures under the conditions  and in accordance with the procedures laid down in Article 27. The measures shall be  non-discriminatory and be eliminated when conditions no longer justify their maintenance. Article  26 (EA 32)The Member States and Hungary shall progressively adjust any State monopolies of a  commercial character so as to ensure that, by the end of the fifth year following the entry into  force of this Agreement, no discrimination regarding the conditions under which goods are procured  and marketed exists between nationals of the Member States and of Hungary. The Joint Committee will  be informed about the measures adopted to implement this objective. Article 27 (EA 33)1.    In  the event of the Community or Hungary subjecting imports of products liable to give rise to the  difficulties referred to in Article 24 to an administrative procedure having as its purpose the  rapid provision of information on the trend of trade flows, it shall inform the other party. 2.    In the cases specified in Articles 23, 24 and 25, before taking the measures provided for  therein or, in cases to which paragraph 3 (d) applies, as soon as possible, the Community or  Hungary, as the case may be, shall supply the Joint Committee with all relevant information with a  view to seeking a solution acceptable to the two parties. In the selection of measures, priority must be given to those which least disturb the functioning  of the Agreement. The safeguard measures shall be notified immediately to the Joint Committee and shall be the  subject of periodic consultations within that body, particularly with a view to establishing a  timetable for their abolition as soon as circumstances permit. 3.    For the implementation of paragraph 2, the following provisions shall apply: (a)   As regards Article 24, the difficulties arising from the situation referred to in that  Article shall be referred for examination to the Joint Committee, which may  take any decision  needed to put an end to such difficulties. If the Joint Committee or the exporting party has not taken a decision putting an end to the  difficulties or no other satisfactory solution has been reached within 30 days of the matter being  referred, the importing party may adopt the appropriate measures to remedy the problem. These  measures must not exceed the scope of what is necessary to remedy the difficulties which have  arisen. (b) As regards Article 23, the Joint Committee shall be informed of the dumping case as soon as the  authorities of the importing party have initiated an investigation. When no end has been put to the  dumping or no other satisfactory solution has been reached within 30 days of the matter being  referred to the Joint Committee, the importing party may adopt the appropriate measures. (c) As regards Article 25, the difficulties arising from the situations referred to in that Article  shall be referred for examination to the Joint Committee. The Joint Committee may take any decision needed to put an end to the difficulties. If it has not  taken such a decision within 30 days of the matter being referred to it, the exporting party may  apply appropriate measures on the exportation of the product concerned. (d) Where exceptional circumstances requiring immediate action make prior information or  examination, as the case may be, impossible, the Community or Hungary whichever is concerned may,  in the situations specified in Articles 23, 24 and 25, apply forthwith the precautionary measures  strictly necessary to deal with the situation. Article 28 (EA 34)Protocol 4 lays down rules of  origin, for the application of tariff preferences foreseen in this Agreement. Article 29 (EA  35)The Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in  transit justified on grounds of public morality, public policy or public security; the protection  of health and life of humans, animals or plants; the protection of national treasures of artistic,  historic or archaeological value or the protection of intellectual, industrial and commercial   property or rules relating to gold and silver. Such prohibitions or restrictions shall not,  however, constitute a means of arbitrary discrimination or a disguised restriction on trade between  the Parties. Article 30 (EA 36)Protocol 5 lays down the specific provisions to apply to trade  between Hungary of the one part and Spain and Portugal of the other part. TITLE IIPAYMENTS, COMPETITION AND OTHER ECONOMIC PROVISIONSArticle 31 (EA 59)The Parties  undertake to authorize, in freely convertible currency, any payments on the current account of  balance of payments to the extent that the transaction underlying the payments concerns movements  of goods between the Parties which have been liberalized pursuant to the present Agreement.  Article 32 (EA 62)1.    The following are incompatible with the proper functioning of the  Agreement, in so far as they may affect trade between the Community and Hungary: (i)   all agreements between undertakings, decisions by associations of undertakings and concerted  practices between undertakings which have as their object or effect the prevention, restriction or  distortion of competition; (ii) abuse by one or more undertakings of a dominant position in the territories of the Community  or of Hungary as a whole or in a substantial part thereof; (iii) any public aid which distorts or threatens to distort competition by favouring certain  undertakings or the production of certain goods. 2.    Any practices contrary to this Article shall be assessed on the basis of criteria arising  from the application of the rules of Articles 85, 86 and 92 of the Treaty establishing the European  Economic Community. 3.    The Joint Committee shall, within three years of the entry into force of the Agreement, adopt  by decision the necessary rules for the implementation of paragraphs 1 and 2. 4.   (a)   For the purposes of applying the provisions of paragraph 1 (iii), the Parties recognize  that during the first five years after the entry into force of the Agreement, any public aid  granted by Hungary shall be assessed taking into account the fact that Hungary shall be regarded as  an area identical to those areas of the Community described in Article 92 (3) (a) of the Treaty  establishing the European Economic Community. The Joint Committee shall, taking into account the  economic situation of Hungary, decide whether that period should be extended by further periods of  five years.  (b) Each party shall ensure transparency in the area of public aid, inter alia by reporting  annually to the other party on the total amount and the distribution of the aid given and by  providing, upon request, information on aid schemes. Upon request by one party, the other party  shall provide information on particular individual cases of public aid. 5.    With regard to products referred to in Chapters II and III of Title I: -   the provision of paragraph 1 (iii) does not apply, - any practices contrary to paragraph 1 (i) should be assessed according to the criteria  established by the Community on the basis of Articles 42 and 43 of the  Treaty establishing the  European Economic Community and in particular of those established in Council Regulation No  26/1962. 6.    If the Community or Hungary considers that a particular practice is incompatible with the  terms of the first paragraph of this Article, and: -   is not adequately dealt with under the implementing rules referred to in paragraph 3, or- in  the absence of such rules, and if such practice causes or threatens to cause serious prejudice to  the interest of the other Party or material injury to its domestic industry, including its services  industry, it may take appropriate measures after consultation within the Joint Committee or after 30 working  days following referral for such consultation. In the case of practices incompatible with paragraph 1  (iii) of this Article, such appropriate  measures may,  where the General Agreement on Tariffs and Trade applies thereto, only be adopted in  conformity with the procedures and under the conditions laid down by the General Agreement on  Tariffs and Trade and any other relevant instrument negotiated under its auspices which are  applicable between the Parties. 7.    Notwithstanding any provisions to the contrary adopted in conformity with paragraph 3, the  parties shall exchange information taking into account the limitations imposed by the requirements  of professional and business secrecy. 8.    This Article shall not apply to the products covered by the Treaty establishing the European  Coal and Steel Community which are the subject of Protocol 2. Article 33 (EA 63)1.    The  Parties shall endeavour to avoid the imposition of restrictive measures including measures relating  to imports for balance of payments purposes. In the event of their introduction, the Party having  introduced the same shall present to the other party as soon as possible, a time schedule for their  removal. 2.    Where one or more Member States of the Community or Hungary is in serious balance of payments  difficulties, or under imminent threat thereof, the Community or Hungary, as the case may be, may,  in accordance with the conditions established under the General Agreement on Tariffs and Trade,  adopt restrictive measures, including measures relating to imports, which shall be of limited  duration and may not go beyond what is necessary to remedy the balance of payments situation. The  Community or Hungary, as the case may be, shall inform the other Party forthwith. Article 34 (EA  64)With regard to public undertakings, and undertakings to which special or exclusive rights have  been granted, the Joint Committee shall ensure that as from the third year following the date of  entry into force of the Agreement, the principles of the Treaty establishing the European Economic  Community, notably Article 90, and the principles of the concluding document of the April 1990 Bonn  meeting of the Conference on Security and Cooperation in Europe, notably entrepreneurs' freedom of  decision, are upheld. Article 351.    Hungary shall continue to improve the protection of  intellectual, industrial and commercial property rights  in order to provide, by the end of the  fifth year from the entry into force of the Agreement, a level of protection similar to that  provided in the Community by Community Acts, in particular the ones referred to in Annex XIII,  including comparable means of enforcing such rights. 2.    Mutual assistance between administrative authorities in customs matters of the Parties shall  take place in accordance with the provisions of Protocol No 6. TITLE IIIINSTITUTIONAL, GENERAL AND FINAL PROVISIONSArticle 36 (EA 104)The Joint Committee set  up by the Agreement on Trade and Commercial and Economic Cooperation signed between the European  Economic Community and Hungary on 26 September 1988 shall perform the duties assigned to it by this  Agreement until the Association Council provided for in Article 104 of the Europe Agreement is  established. Article 37 (EA 106)The Joint Committee shall, for the purposes of attaining the  objectives of the Agreement, have the power to take decisions in the cases provided for therein.  The decisions taken shall be binding on the Parties which shall take the measures necessary to  implement the decisions taken. The Joint Committee may also make appropriate recommendations. It shall draw up its decisions and recommendations by agreement between the two Parties. Article  38 (EA 108)1.    Each of the two parties may refer to the Joint Committee any dispute relating to  the application or interpretation of this Agreement. 2.    The Joint Committee may settle the dispute by means of a decision. 3.    Each party shall be bound to take the measures involved in carrying out the decision referred  to in paragraph 2. 4.    In the event of it not being possible to settle the dispute in accordance with paragraph 2 of  this Article, either party may notify the other of the appointment of an arbitrator; the other  party must then appoint a second arbitrator within two months.The Joint Committee shall appoint a third arbitrator. The arbitrators' decisions shall be taken by majority vote. Each party to the dispute must take the steps required to implement the decision of the  arbitrators. Article 39 (EA 113)Within the scope of this Agreement, each party undertakes to  ensure that natural and legal persons of the other party have access free of discrimination in  relation to its own nationals to the competent courts and administrative organs of the Community  and Hungary to defend their individual rights and their property rights, including those concerning  intellectual, industrial and commercial property. Article 40 (EA 114)Nothing in the Agreement  shall prevent a party from taking any measures: (a)   which it considers necessary to prevent the disclosure of information contrary to its  essential security interests; (b) which relate to the production of, or trade in, arms, munitions or war materials or to  research, development or production indispensable for defence purposes, provided that such measures  do not impair the conditions of competition in respect of products not intended for specifically  military purposes; (c) which it considers essential to its own security in the event of serious internal disturbances  affecting the maintenance of law and order, in time of war or serious international tension  constituting threat of war or in order to carry out obligations it has accepted for the purpose of  maintaining peace and international security. Article 41 (EA 115)1.    In the fields covered by  this Agreement and without prejudice to any special provisions contained therein: -   the arrangements applied by Hungary in respect of the Community shall not give rise to any  discrimination between the Member States, their nationals, or their companies or firms, - the arrangements applied by the Community in respect of Hungary shall not give rise to any  discrimination between Hungarian nationals or its companies or firms. 2.    The provisions of paragraph 1 shall not prevent the Parties from applying foreign exchange  laws and regulations that provide different treatment for residents and non-residents within the  meaning of these laws and regulations. Article 42 (EA 116)Products originating in Hungary shall  not enjoy more favourable treatment when imported into the Community than that applied by Member  States among themselves. Article 43 (EA 117)1.    The Parties shall take any general or specific  measures required to fulfil their obligations under the Agreement. They shall see to it that the  objectives set out in the Agreement are attained. 2.    If either Party considers that the other Party has failed to fulfil an obligation under the  Agreement, it may take appropriate measures. Before so doing, it shall supply the Joint Committee  with all relevant information required for a thorough examination of the situation with a view to  seeking a solution acceptable to the Parties. In the selection of measures, priority must be given to those which least disturb the functioning  of the Agreement. These measures shall be notified immediately to the Joint Committee and shall be  the subject of consultations within the Joint Committee if the other Party so requests. Article 44  (EA 119)Protocols 1, 2, 3, 4, 5, 6 and 7 and Annexes I to XI and XIII shall form an integral part  of this Agreement. Article 451.    This Agreement shall be applicable until the entry  into  force of the Europe Agreement signed on 16  December 1991 and at the latest until 31 December   1992. 2.    Either party may denounce this Agreement by notifying the other party. This Agreement shall  cease to apply six months after the date of such notification.  Article 46 (EA 121)This  Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the  European Economic Community and the European Coal and Steel Community are applied and under the  conditions laid down in those Treaties and, on the other hand, to the territory of Hungary.  Article 47 (EA 122)This Agreement is drawn up in duplicate in the Danish, Dutch, English, French,  German, Greek, Italian, Portuguese, Spanish and Hungarian languages, each of these texts being  equally authentic. Article 48This Agreement will be approved by the Parties in accordance with  their own procedures. This Agreement shall enter into force on the first day of the month following the date on which the  Parties notify each other that the procedures referred to in the first paragraph have been  completed. Upon entry into force of this Agreement, Articles 1 and 2 paragraph 2, to 10 of the Agreement  between the European Economic Community and the Republic of Hungary on trade and economic and  commercial cooperation signed in Brussels on 26 September 1988 and the corresponding provisions of  the Protocol between the European Coal and Steel Community and the Republic of Hungary signed in  Brussels on 31 October 1991 shall be suspended. Article 491.    In the event that this Agreement  enters into force after 1 January but before 30 June 1992 for the purposes of Titles I and II of  this Agreement and Protocols 1, 2, 3, 4, 5, 6 and 7 hereto, the terms 'date of entry into force of  the Agreement` shall mean: -   the date of entry into force in relation to obligations taking effect on that date, and- 1  January 1992 in relation to obligations taking effect after the date of entry into force by  reference to the date of entry into force. 2.    In the case of entry into force after 1 January, the provisions of Protocol 7 shall apply. En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente  acuerdo. Til bekraeftelse heraf har undertegnede befuldmaegtigede underskrevet denne aftale. Zu Urkund dessen haben die unterzeichneten Bevollmaechtigten ihre Unterschriften unter dieses  Abkommen gesetzt. AAéò ðssóôùóç ôùí áíùôÝñù, ïé õðïãaaãñáììÝíïé ðëçñaaîïýóéïé Ýèaaóáí ôéò õðïãñáoeÝò ôïõò óôçí ðáñïýóá  óõìoeùíssá. In witness whereof the undersigned plenipotentiaries have signed this Agreement. En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent  accord. In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente  accordo. Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze Overeenkomst  hebben gesteld. Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no final do  presente acordo. Fentiek hiteléuel, az arra meghatalmazottak aláirták a jelen Megállapodást. Hecho en Bruselas, el dieciséis de diciembre de mil novecientos noventa y uno. Udfaerdiget i Bruxelles, den sekstende december nitten hundrede og enoghalvfems. Geschehen zu Bruessel am sechzehnten Dezember neunzehnhunderteinundneunzig. ¸ãéíaa óôéò ÂñõîÝëëaaò, óôéò aeÝêá Ýîé AEaaêaaìâñssïõ ÷ssëéá aaííéáêueóéá aaíaaíÞíôá Ýíá. Done at Brussels on the sixteenth day of December in the year one thousand nine hundred and  ninety-one. Fait à Bruxelles, le seize décembre mil neuf cent quatre-vingt-onze. Fatto a Bruxelles, addì sedici dicembre millenovecentonovantuno. Gedaan te Brussel, de zestiende december negentienhonderd eenennegentig. Feito em Bruxelas, em dezasseis de Dezembro de mil novecentos e noventa e um. Készuelt Bruesszelben az ezerkilencszázkilencvenegyedik év december hó tizenhatodik napján. Por el Consejo y la Comisión de las Comunidades EuropeasFor Raadet og Kommissionen for De  Europaeiske FaellesskaberFuer den Rat und die Kommission der Europaeischen GemeinschaftenÃéá ôï  Óõìâïýëéï êáé ôçí AAðéôñïðÞ ôùí AAõñùðáúêþí ÊïéíïôÞôùíFor the Council and the Commission of the  European CommunitiesPour le Conseil et la Commission des Communautés européennesPer il Consiglio  e la Commissione delle Comunità europeeVoor de Raad en de Commissie van de Europese  GemeenschappenPelo Conselho e pela Comissão das Comunidades EuropeiasAz Európai Koezoességek  Tanácsa és Bizottsága nevében>REFERENCE TO A FILM>Por el Gobierno de la República de HungríaFor  Regeringen for Republikken UngarnFuer die Regierung der Republik UngarnÃéá ôçí êõâÝñíçóç ôçò  AEçìïêñáôssáò ôçò ÏõããáñssáòFor the Government of the Republic of HungaryPour le gouvernement de la  république de HongriePer il governo della Repubblica unghereseVoor de Regering van de Republiek  HongarijePelo Governo da República da HungriaA Magyar Koeztársaság Kormánya nevében>REFERENCE TO  A FILM> ANNEX I List of products referred to in Articles 2 and 12 of the Agreement >TABLE  POSITION> ANNEX II  a List of products referred to in Article 3 (2) first subparagraph  CN  code 1991 2501  00  312501  00  512501  00  912501  00  992503  90  002511  20  002513  19   002513  29  002516  12  102516  22  102516  90  102518  20  002518  30  002526  20  002530   40  002804  61  002804  69  002805  11  002805  19  002805  21  002805  22  002805  30   102805  30  902805  40  102818  20  002818  30  00ex 2844  30  11 Raw cermets, waste or scrap  2844  30  19ex 2844  30  51 Raw cermets, waste or scrap 3201  20  003201  30  003201  90  10ex  3201  90  90 Other extracts of vegetable origin 4104  10  914105  11  914105  11  994105  12   104105  12  904105  19  104105  19  904106  11  904106  12  004106  19  004107  10  104107   29  104107  90  104403  10  107202  19  007202  30  007202  41  107202  41  907202  49   107202  49  507202  49  907202  50  007202  70  007202  80  007202  91  007202  92  007202   93  007202  99  307202  99  807602  00  197801790179038101  10  008101  91  108101  91   908102  10  008102  91  108102  91  908103  10  108103  10  908104  11  008104  19  008107   10  008108  10  108108  10  908109  10  108109  10  908110  00  118110  00  198111  00   118111  00  198112  20  318112  20  398112  30  108112  40  118112  40  198112  91  108112   91  318112  91  398112  91  908113  00  10 ANNEX II  b List of products referred to in Article 3 (2) second subparagraph CN code  1991 7202  21  107202  21  907202  29  007601 ANNEX III (5) List of products referred to in Article 3 (3) >TABLE>Annex to  Annex IIIExtracts from headings>TABLE> ANNEX IV List of products referred to in Article 4 (1) >TABLE>>TABLE  POSITION> ANNEX V List of products referred to in Article 4 (3) >TABLE>>TABLE>  >TABLE> >TABLE> ANNEX VI  a List of products subject to import licensing  >TABLE>In  relation to the list of products subject to import licences contained in the present Annex: 1.   starting on 1 January 1995 and up to 31 December 1997, Hungary shall eliminate quantitative  restrictions on imports originating in the Community of products still subject to such restrictions  at 31 December 1994, up to an amount of 40  % of such imports into Hungary from the Community on  the basis of last available annual statistics; 2. starting on 1 January 1998 and up to 31 December 2000 at the latest, Hungary shall eliminate all  remaining quantitative restrictions; 3. following technical discussions between Parties, Hungary will, as soon as possible, and at the  latest by the end of 1992, convert into harmonized system codes (HS) the product listed in the  present Annex. Trade figures relating to 1993 and following years shall be based on HS codes and  afterwards on the combined nomenclature once adopted; 4. for the year 1993, at the request of the Community, Hungary shall open quantitative ceilings for  specific products imported from the Community still subject to import licences for which no such  ceilings have been fixed in Annex VI b. Such quantities or amounts shall be annually increased by  10  %, reviewed in the Association Council and adjusted in case of a significant increase of  internal consumption in Hungary in order to improve the market access conditions for the  Community.  ANNEX VI  b 1.   Hungary shall open the following ceilings for products originating in  the Community in 1992 (not covering OTP): -   passenger cars (870321-870333 of the Hungarian customs nomenclature)50  000 pieces -  detergents and other household chemicals  (1)US$ 8  000  000 - furniture  (1)US$ 30  000  000 -  footwear  (1)US$ 25  000  000 - pharmaceuticals  (1)  (2)US$ 40  000  000 - jewellery, precious  metal objects  (1)US$ 7  000  000 - miscellaneous  (1)US$ 50  000  0002. These quantities or  amounts shall be increased by 10  % annually until the quantitative restrictions regarding the  products concerned are eliminated. However the rate of increase for passenger cars will be 7  %. 3. These quantities or amounts shall be reviewed in the Association Council in 1993 and annually  afterwards and adjusted in case of a significant increase of internal consumption in Hungary in  order to improve the market access conditions for the Community. Annex to Annex VI  bPassenger cars>TABLE>>TABLE>>TABLE>>TABLE  POSITION>(1)   Products falling within these categories are specified in the Annex.  Those specifications shall be expressed in HS code at the latest by 31 December 1992.  (2) After technical discussions with the Community, Hungary may open subceilings.  ANNEX VII Goods referred to in Article 11 1.   Goods for which the Community retains an  agricultural component in the duties>TABLE>2.   Goods for which Hungary may introduce an  agricultural component in the duties>TABLE> ANNEX VIII  a List of products referred to in Article 14 (2)  (1) The products in this  Annex shall be subject to a levy reduction of 50  %>TABLE> >  ANNEX VIII  b List of products refered to in Article 14 (2)  (1) >TABLE>   Annex to Annex VIII  bMinimum import price arrangement for certain soft fruit for processing1.    Minimum import prices are fixed for each marketing year for the following products:  0810  20  10     Raspberries 0810  30  10 Blackcurrants 0810  30  30 Redcurrants 0810  30  90  Other berries 0811  10  90 Strawberries ex  0811  20  19 Raspberries 0811  20  31 Raspberries  0811  20  39 Blackcurrants 0811  20  51 Red currants.  The minimum import prices are fixed by the Community in consultation with Hungary, taking into  consideration the price evolution, imported quantities and market development in the Community. 2.   The minimum import prices shall be respected in accordance with the following criteria: -   during each three month period of the marketing year the average unit value for each product  listed in paragraph 1, imported into the Community, shall not be lower than the minimum import  price for that product,  - during any period of two weeks the average unit value for each product listed in paragraph 1,  imported in the Community shall not be lower than 90  % of the minimum import price for that  product, in so far as the quantities imported during this period are not less than 4  % of the  normal annual import. 3. In case of non-respect of one of these criteria the Community may introduce measures ensuring  that the minimum import price is respected for each consignment of the product concerned imported  from Hungary. ANNEX IX  a Agricultural products with liberalized treatment (no import licence  required, no quantitative restriction) in case of Community-origin >TABLE> ANNEX IX b Products originating in the Community for which Hungary shall issue import  licences automatically up to the quantities indicated >TABLE> ANNEX X  a Arrangements for imports of live bovine animals into the Community 1.   In  case the number of animals fixed in the framework of the balance sheet arrangements foreseen in  Regulation (EEC) No 805/68 are lower than a reference quantity, a global tariff quota equal to the  difference between that reference quantity and the number of animals fixed under the balance sheet  arrangements will be opened to imports from Hungary, Poland and Czechoslovakia. The reference  quantity shall be: -  217  800 in 1992, -  237  600 in 1993, -  257  400 in 1994, -  277  200 in 1995, -  297  000 in 1996. The reduced levy applicable to animals under this quota will be fixed at 25  % of the full amount  of levy. This arrangement shall apply to live bovine animals for fattening or for slaughter with a live  weight of not less than 160 kg and not more than 300 kg. 2. In case forecasts show that imports into the Community may exceed 425  000 head for any given  year, the Community may take safeguard measures in accordance with Regulation (EEC) No 805/68,  notwithstandig any other rights given under the Agreement. In this context, imported of live bovine animals not covered by the arrangements mentioned in  paragraph 1 shall be limited to young calves with a live weight of not more than 80 kg. Such  imports shall be subject to a management regime in order to ensure regular supply over the year in  question.  ANNEX X  b List of products referred to in Article 14 (4)  (1) The quantities imported  under the CN code referred to in this Annex with the exception of CN codes 0104 and 0204 will be  subject to levy and duty reduction of 20  % in the first year, 40  % in the second year, 60  % in  the successive years>TABLE> ANNEX X  c List of products refered to in Article 14 (4)  (1)  >TABLE> ANNEX XI  a The quantities imported under the tariff headings of the Hungarian Customs  Tariffs referred to in this Annex will be subject to reduction of the applicable duty of 10  % in  the first year, 20  % in the second year, 30  % in succesive years>TABLE>  ANNEX XI  b The quantities imported under the tariff headings of the Hungarian Customs  Tariff referred to in this Annex will be subject to reduction of the applicable duty of 15  % in  the first year 30  % in the second year, 45  % in succesive years>TABLE> ANNEX XI  c Reduced duties applied by Hungary up to the limits indicated to products  originating in the Community  >TABLE> >TABLE> >TABLE> ANNEX XI  d The global quota for the import of consumer goods originating in the  Community applied by Hungary to products in Annex XI  c >TABLE> ANNEX XIII    (1) Community Acts referred to in Article 35 (1)-   first Council  Directive (89/104/EEC) of 21 December 1988 to approximate the laws of the Member States relating to  trade marks, - Council Directive 87/54/EEC of 16 December 1986 on the legal protection of topographies of  semiconductor products, - Council Directive 91/250/EEC of 14 May 1991 on the legal protection of computer programs.    (1)  The Interim Agreement does not contain an Annex XII.