Memorandum of Understanding between the European Community and the Arab Republic of Egypt on trade in textile products - Agreed Minutes
Date: 1997-11-06
Institutions: Egypt, European Community
Subjects: Egypt, cooperation agreement (EU), import policy, quantitative restriction, revision of an agreement, textile product

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Official  Journal  of  the  European  Communities

13.2.98

MEMORANDUM  OF  UNDERSTANDING

between  the  European  Community  and  the  Arab  Republic  of  Egypt  on  trade  in  textile
products

MEMORANDUM  OF  UNDERSTANDING

The Arab Republic of Egypt and the European Community (hereinafter the ‘Community’) on 5
and 6 November 1997 agree that there is a need to renew for two years the existing system of
administrative  cooperation  on  textile  products,  done  and  initialled  as  a  Memorandum  of
Understanding  in  Geneva  on  26  November  1993  as  last  amended  by  exchange  of  letters
initialled  on  13  October  1995.

Both  parties  confirm  their  readiness  to  seek  acceptable  solutions  to  any  problems  which  might
arise and hence to avoid recourse to measures which might be prejudicial to the interest of both
parties.

In  this  spirit  of  cooperation,  both  parties  agree  that  the  trade  in  textile  products  between  the
Community  and  the  Arab  Republic  of  Egypt  shall  be  based  on  the  following  provisions:

1. The Community will undertake not to apply safeguard measures provided for by Article 34
of the Cooperation Agreement between the Community and the Arab Republic of Egypt, as
long as the imports of products listed in the Annex I are not higher than the levels indicated
in  the  said  Annex.

2. The administrative cooperation system agreed during the discussions and set out in Annex II

will  apply  to  the  products  covered  by  this  Memorandum  of  Understanding.

3. The  Community  undertakes  not  to  charge  to  the  agreed  levels  imports  intended  for  inward

processing  or  re-export.

4. The  Egyptian  authorities  undertake  to  organise  their  exports  of  the  products  listed  in

Annex  I  so  that  the  agreed  levels  laid  down  therein  are  not  exceeded.

5. The parties shall cooperate in order to prevent sudden and prejudicial changes in traditional
trade  flows  resulting  in  regional  concentration  of  direct  imports  into  the  Community.

6. Egypt  shall  endeavour  not  to  deprive  certain  regions  of  the  Community  which  have
traditionally  had  relatively  small  shares  of  Community  quotas  of  imports  serving  as  inputs
for  their  processing  industry.

7. The  Egyptian  authorities  may,  in  their  management  of  export,  make  use  of  the  flexibility

provisions  laid  down  in  Annex  III.

8. At the request of either party, consultations may be held to examine specific problems in the
field  of  this  Memorandum  of  Understanding.  Such  consultations  shall  be  held  within  a
maximum  of  10  working  days  following  a  request  by  either  party.

9. The present regime will enter into force on 1 January 1998 and will last until 31 December

1999.

Signed  at  Brussels,  on  6  November  1997.

For  the  Arab  Republic  of  Egypt

For  the  European  Community

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ANNEX  I

Category

CN  Code
1997

Description

Unit

Quantitative  Levels  from
1  January  to  31  December

1998

1999

1

5204 11 00
5204 19 00

Cotton  yarn,  not  put  for  retail
sale

tonnes

56 500

58 500

5205 11 00
5205 12 00
5205 13 00
5205 14 00
5205 15 10
5205 15 90
5205 21 00
5205 22 00
5205 23 00
5205 24 00
5205 26 00
5205 27 00
5205 28 00
5205 31 00
5205 32 00
5205 33 00
5205 34 00
5205 35 10
5205 35 90
5205 41 00
5205 42 00
5205 43 00
5205 44 00
5205 46 00
5205 47 00
5205 48 00

5206 11 00
5206 12 00
5206 13 00
5206 14 00
5206 15 10
5206 15 90
5206 21 00
5206 22 00
5206 23 00
5206 24 00
5206 25 10
5206 25 90
5206 31 00
5206 32 00
5206 33 00
5206 34 00
5206 35 10
5206 35 90
5206 41 00
5206 42 00
5206 43 00
5206 44 00
5206 45 10
5206 45 90

ex 5604 90 00

L 41/4

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Official  Journal  of  the  European  Communities

13.2.98

Category

CN  Code
1997

Description

Unit

Quantitative  Levels  from
1  January  to  31  December

1998

1999

gauze, 

Woven  fabrics  of  cotton,  other
than 
fabrics,
narrow  woven 
fabrics,  pile
fabrics, 
tulle  and  other  net
fabrics

terry 

tonnes

20 000

20 700

2

5208 11 10
5208 11 90
5208 12 11
5208 12 13
5208 12 15
5208 12 19
5208 12 91
5208 12 93
5208 12 95
5208 12 99
5208 13 00
5208 19 00
5208 21 10
5208 21 90
5208 22 11
5208 22 13
5208 22 15
5208 22 19
5208 22 91
5208 22 93
5208 22 95
5208 22 99
5208 23 00
5208 29 00
5208 31 00
5208 32 11
5208 32 13
5208 32 15
5208 32 19
5208 32 91
5208 32 93
5208 32 95
5208 32 99
5208 33 00
5208 39 00
5208 41 00
5208 42 00
5208 43 00
5208 49 00
5208 51 00
5208 52 10
5208 52 90
5208 53 00
5208 59 00

5209 11 00
5209 12 00
5209 19 00
5209 21 00
5209 22 00
5209 29 00
5209 31 00
5209 32 00
5209 39 00
5209 41 00
5209 42 00
5209 43 00
5209 49 10
5209 49 90
5209 51 00
5209 52 00
5209 59 00

5210 11 10
5210 11 90
5210 12 00
5210 19 00

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Category

CN  Code
1997

Description

Unit

Quantitative  Levels  from
1  January  to  31  December

1998

1999

2
(continued)

5210 21 10
5210 21 90
5210 22 00
5210 29 00
5210 31 10
5210 31 90
5210 32 00
5210 39 00
5210 41 00
5210 42 00
5210 49 00
5210 51 00
5210 52 00
5210 59 00

5211 11 00
5211 12 00
5211 19 00
5211 21 00
5211 22 00
5211 29 00
5211 31 00
5211 32 00
5211 39 00
5211 41 00
5211 42 00
5211 43 00
5211 49 10
5211 49 90
5211 51 00
5211 52 00
5211 59 00

5212 11 10
5212 11 90
5212 12 10
5212 12 90
5212 13 10
5212 13 90
5212 14 10
5212 14 90
5212 15 10
5212 15 90
5212 21 10
5212 21 90
5212 22 10
5212 22 90
5212 23 10
5212 23 90
5212 24 10
5212 24 90
5212 25 10
5212 25 90

ex 5811 00 00

ex 6308 00 00

4

6105 10 00
6105 20 10
6105 20 90
6105 90 10

Shirts,  T-shirts,  lightweight  fine
knit  roll,  polo  or  turtle  necked
jumpers  and  pullovers  (other
than  of  wool  or  fine  animal
hair),  undervests  and  the  like,
knitted  or  crocheted

1 000  pieces

Admini-
strative
cooperation

Admini-
strative
cooperation

L 41/6

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Official  Journal  of  the  European  Communities

13.2.98

Category

CN  Code
1997

Description

Unit

Quantitative  Levels  from
1  January  to  31  December

1998

1999

4
(continued)

20

6109 10 00
6109 90 10
6109 90 30

6110 20 10
6110 30 10

6302 21 00
6302 22 90
6302 29 90
6302 31 10
6302 31 90
6302 32 90
6302 39 90

Bed  linen,  other  than  knitted  or
crocheted

tonnes

Admini-
strative
cooperation

Admini-
strative
cooperation

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ANNEX  II

ADMINISTRATIVE  COOPERATION

The system of administrative cooperation to be applied by the Community and the Arab Republic of Egypt
in  their  trade  in  textile  products  will  be  as  follows:

1. The Egyptian authorities (Cotton Textile Consolidation Fund) shall issue an export document for every
consignment of products listed in Annex I of the Memorandum of Understanding. The export document
shall  correspond  to  the  specimen  as  shown  in  Annex  IV  hereto.

(a)

for products for which levels have been agreed and which are intended to enter into free circulation
within  the  Community,  export  licences  shall  only  be  isssued  up  to  the  agreed  Community  levels.
Each  licence  must,  in  particular,  certify  that  the  amount  in  question  has  been  charged  against  the
level  for  the  product  category  concerned.  For  such  products  for  which  no  level  has  been  agreed,
export  licences  are  issued  without  restriction  but  account  is  kept  of  the  quantities  issued.

Where export documents are cancelled the Egyptian authorities shall inform the Commission of the
European Communities immediately, providng all the necessary information to prevent the relevant
quantity  from  being  set  off  against  the  limit  concerned.

(b) The actual date of shipment shall determine the quota year against which goods are to be charged.
To this end, the date shown on the bills of lading or airway bills or any other equivalent document
shall  be  regarded  as  constituting  proof.

2. The  authorities  of  the  Member  States  shall  issue  import  documents  or  authorisations  automatically
within  five  working  days  on  receipt  of  the  request,  provided  that  it  is  accompanied  by  the  export
document  referred  to  subparagraph  1.

3.

In  order  to  facilitate  this  cooperation  system:

— the  Parties  will  exchange  statistics  about  actual  imports  and  exports  as  well  as  import  and  export

documents  issued  during  each  calendar  year,

— in  addition,  the  Parties  will  exchange  cumulative  statistics  on  a  quarterly  basis.  These  data  will  be

communicated  to  the  other  party  before  the  end  of  the  third  month  following  every  quarter.

4. The  classification  of  the  products  referred  to  in  Annex  I  shall  be  based  on  the  tariff  and  statistical
nomenclature  of  the  Community  (hereinafter  called  the  ‘Combined  Nomenclature’  or  in  abbreviated
form  ‘CN’)  and  any  amendments  thereof.

No decision relating to the classification of goods or amendment to the Combined Nomenclature (CN)
concerning  the  category  of  products  in  question,  shall  have  the  effect  of  reducing  the  agreed  levels.

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13.2.98

ANNEX  III

FLEXIBILITIES

The  flexibility  shall  be  as  follows:

1. The  Egyptian  authorities  may  carry  over  unused  levels  from  the  preceding  year  up  to  a  maximum  of

10 %  of  the  levels  for  the  year  in  progress.

2. Advance use of agreed levels for the next year may be made up to a maximum of 10 % of the levels for

the  year  in  progress.

3. The  transfer  between  category  1  and  category  2  is  authorised  within  the  limit  of  7,5 %  of  the  figure

initially  agreed  for  the  category  to  which  the  transfer  is  made.

1 Exporter  (name,  full  address,  country)

Exportateur  (nom,  adresse  complète,  pays)

5 Consignee  (name,  full  address,  country)

Destinataire  (nom,  adresse  complète,  pays)

ANNEX  IV

O R I G I N A L

2

No

3 Quota  period

Année  contingentaire

4 Category  number

Numéro  de  catégorie

E X P O R T   L I C E N C E

(Textile  products)

L I C E N C E   D ’ E X P O R T A T I O N

(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)

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AGREED  MINUTE

With  regard  to  the  question  of  management  of  the  levels  below  which  the  Community
undertakes  not  to  apply  safeguards  measures  provided  for  by  Article  34  of  the  Cooperation
Agreement, the Arab Republic of Egypt makes clear its intention to take the necessary measures
to  ensure  that  Egyptian  exports  of  products  listed  in  Annex  I  do  not  exceed  the  Community
agreed  levels  as  provided  for  under  the  flexibility  provisions  in  the  Memorandum  of
Understanding  itself.

The government of Egypt also takes note of the Community’s desire to resume normal regime of
trade  as  soon  as  possible.  It  recalls  in  this  connection  that  the  system  governing  access  to  the
Community  for  cotton  products  originating  in  Egypt  is  one  of  free  entry  without  quantitative
restrictions  or  equivalent  measures.

Signed  at  Brussels,  on  6  November  1997.

For  the  Arab  Republic  of  Egypt

For  the  European  Community

AGREED  MINUTE

Should the Community and the Arab Republic of Egypt conclude an association agreement, the
Memorandum  of  Understanding  on  textiles  emerging  from  these  negotiations  on  5  and
6  November  1997,  will  take  the  form  envisaged  by  the  provisions  of  the  agreement  and  of  the
joint  declarations  annexed  to  it.

Signed  at  Brussels,  on  6  November  1997.

For  the  Arab  Republic  of  Egypt

For  the  European  Community