Proposal for a Council Decision on the signing and on the provisional application of an Agreement in the form of a Memorandum of Understanding between the European Community and the Arab Republic of Egypt on trade in textile products initialled on 12 November 2001
Date: 2001-12-20
Institutions: European Commission
Subjects: Egypt, textile product, trade agreement (EU), trade policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.12.2001
COM(2001) 785 final

2001/0302 (ACC)

Proposal for a

COUNCIL DECISION

on the signing and on the provisional application of an Agreement in the form of a
Memorandum of Understanding between the European Community and the Arab
Republic of Egypt on trade in textile products initialled on 12 November 2001

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

2.

3.

4.

In accordance with the Council directives of 29 October 2001, the Commission has
negotiated the renewal of the Memorandum of Understanding with the Arab
Republic of Egypt on trade in textile products.

As a result of these negotiations the Commission initialled a Memorandum of
Understanding on trade in textile products with the Arab Republic of Egypt on
12 November 2001.

Pending the completion of the relevant procedures, the Commission proposed that
the Memorandum is applied provisionally as from 1 January 2002, subject
to
reciprocity.

The Council is invited to approve this proposal for a Council Decision on the
the Memorandum of
the European Community, of
signing, on behalf of
Understanding with the Arab Republic of Egypt on trade in textile products and
authorising its provisional application pending the formal conclusion of
that
Agreement.

2

2001/0302 (ACC)

Proposal for a

COUNCIL DECISION

on the signing and on the provisional application of an Agreement in the form of a
Memorandum of Understanding between the European Community and the Arab
Republic of Egypt on trade in textile products initialled on 12 November 2001

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof, in conjunction with the first sentence of the first subparagraph of
Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

The Commission has negotiated on behalf of
the European Community a
Memorandum of Understanding on trade in textile products with the Arab Republic of
Egypt;

The Memorandum of Understanding was initialled on 12 November 2001.

Subject to its possible conclusion at a later date, the Memorandum of Understanding
should be signed on behalf of the European Community.

It is appropriate to apply this Memorandum on a provisional basis as from 1 January
2002 pending the completion of the relevant procedures for its formal conclusions,
subject to reciprocity.

HAS DECIDED AS FOLLOWS:

Article 1

Subject to a possible conclusion at a later date, the President of the Council is hereby
authorised to designate the persons empowered to sign on behalf of the European Community
the Memorandum of Understanding on trade in textile products with the Arab Republic of
Egypt.

3

Article 2

Subject to reciprocity, the Memorandum referred to in Article 1 shall be applied on a
provisional basis as from 1 January 2002 pending the completion of the procedures for its
conclusion.

The text of the Memorandum of Understanding is attached to this Decision.

Done at Brussels,

For the Council
The President

4

ANNEX

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE EUROPEAN COMMUNITY

AND

THE ARAB REPUBLIC OF EGYPT

ON TRADE IN TEXTILE PRODUCTS

5

MEMORANDUM OF UNDERSTANDING

The European Community (hereinafter the "Community") and the Arab Republic of Egypt on
12 November 2001 agreed that there is a need to renew for two years the existing system of
administrative co-operation 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 and by a Memorandum of Understanding on 6 November 1997
and of 9 December 1999.

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 co-operation, 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.

2.

3.

4.

5.

6.

7.

8.

9.

The Community will undertake not to apply safeguard measures provided for by
Article 34 of the Co-operation 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.

The administrative co-operation system agreed during the discussions and set out in
Annex II will apply to the products covered by this Memorandum of Understanding.

The Community undertakes not to charge to the agreed levels imports intended for
inward processing or re-export.

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.

The Parties shall co-operate in order to prevent sudden and prejudicial changes in
traditional trade flows resulting in regional concentration of direct imports into the
Community.

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.

The Egyptian authorities may, in their management of export, make use of the
flexibility provisions laid down in Annex III.

The Parties shall co-operate fully in order to prevent, to investigate and to take any
appropriate legal and/or administrative action against circumvention of
the
provisions of this Memorandum of Understanding.

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.

6

The present
31 December 2003.

regime will enter

into force on 1st January 2002 and will

last until

Signed at ...........................................

on …………………………………………..

For the European Community

For the Arab Republic of Egypt

7

Category

CN Code

Description

Unit

ANNEX I

1

2001

5204 11 00
5204 19 00
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 00
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 00
5206 41 00
5206 42 00
5206 43 00
5206 44 00
5206 45 00

ex 5604 90 00

Quantitative Levels
from 1 January to
31 December

2002

2003

Cotton yarn, not put for retail sale

Tonnes

64.860

67.130

8

Category

CN Code

Description

Unit

Quantitative Levels
from 1 January to
31 December

2002

2003

2

2001

5208 11 10
5208 11 90
5208 12 16
5208 12 19
5208 12 96
5208 12 99
5208 13 00
5208 19 00
5208 21 10
5208 21 90
5208 22 16
5208 22 19
5208 22 96
5208 22 99
5208 23 00
5208 29 00
5208 31 00
5208 32 16
5208 32 19
5208 32 96
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

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

Tonnes

22.950

23.753

9

Quantitative Levels
from 1 January to
31 December

2002

2003

Category

CN Code

Description

Unit

2001

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

10

Category

CN Code

Description

Unit

Quantitative Levels
from 1 January to
31 December

2002

2003

2001

5212 25 10
5212 25 90

ex 5811 00 00

ex 6308 00 00

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

4

20

turtle-necked

Shirts, T-shirts, lightweight fine knit roll,
and
or
polo
pullovers (other
fine
animal hair), undervests and the like,
knitted or crocheted

jumpers
than of wool or

1.000

pieces

Administrative co-
operation

Bedlinen, other than knitted or crocheted

Tonnes

Administrative
cooperation

11

ANNEX II

ADMINISTRATIVE COOPERATION

The system of administrative co-operation 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 issued
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
is kept of the
quantities issued.

licences are issued without restriction but account

Where export documents are cancelled the Egyptian authorities shall inform
the Commission of the European Communities immediately, providing 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.

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 under paragraph 1.

In order to facilitate this co-operation 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.

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 abbreviate 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.

2.

3.

4.

12

ANNEX III

FLEXIBILITIES

The flexibility shall be as follows:

1.

2.

3.

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.

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.

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.

13

ANNEX IV

Specimen of export licence referred to in paragraph 1 of Annex II

1. Exporter (name, full address, country)

Exportateur (nom, adresse complète, pays)

5. Consignee (name, full address, country)

Destinataire (nom, adresse complète, pays)

ORIGINAL

2. N°

3. Quota year

4. Category number

Année contingentaire

Numéro de catégorie

EXPORT LICENCE

(Textile products)

___________________________

LICENCE D’EXPORTATION

(Produits textiles)

6. Country of origin

7. Country of destination

Pays d’origine

Pays de destination

8. Place and date of shipment – Means of transport

9. Supplementary details

Lieu et date d’embarquement – Moyen de transport

Données supplémentaires

10. Marks and numbers – Number and kind of packages – DESCRIPTION OF GOODS

11. Quantity(1)

Marques et numéros – Nombre et nature des colis – DESIGNATION DES MARCHANDISES

12. FOB
value(2)

Quantité(1)

Valeur fob(2)

13. CERTIFICATION BY THE COMPETENT AUTHORITY – VISA DE L’AUTORITE COMPETENTE

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)

At – A ……………………………, on – le…………………………………

Autorité compétente (nom, adresse complète, pays)

(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.

(Signature)

(Stamp - Cachet)

14

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 Co-operation
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 .................................. on

For the European Community

For the Arab Republic of Egypt

15

AGREED MINUTE

Should the Community and the Arab Republic of Egypt conclude the Association Agreement,
the Memorandum of Understanding on textiles emerging from these negotiations on 12
November 2001, will take the form envisaged by the provisions of the agreement and of the
joint declarations annexed to it.

Signed at .................................. on

For the European Community

For the Arab Republic of Egypt

16