2002/72/EC: Council Decision of 21 January 2002 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: 2002-01-21
Institutions: Council of the European Union
Subjects: Egypt, export licence, protocol to an agreement, textile product, trade agreement (EU)

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Official Journal of the European Communities

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II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 21 January 2002

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

(2002/72/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 133 thereof, in conjunc-
tion 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
The Commission has negotiated on behalf of
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 provi-
sional 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

The signing of the Memorandum of Understanding between
the European Community and the Arab Republic of Egypt on
trade in textile products is hereby approved on behalf of the

Community, subject to the Council Decision concerning the
conclusion of the said Memorandum.

The text of the Memorandum is attached to this Decision.

Article 2

The President of the Council is hereby authorised to designate
the person empowered to sign the Memorandum of Under-
standing on behalf of the Community subject to its conclusion.

Article 3

to reciprocity,

Subject
the Memorandum of Understanding
shall be applied on a provisional basis as from 1 January 2002
the procedures for its formal
pending the completion of
conclusion.

Done at Brussels, 21 January 2002.

For the Council

The President

M. ARIAS CAÑETE

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

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 cooperation
on textile products, done and initialled as a Memorandum of Understanding in Geneva on 26 November
1993 as last amended by an Exchange of Letters initialled on 13 October 1995 and by a Memorandum of
Understanding of 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 interests 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 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. The Parties shall cooperate 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 Under-
standing.

9. 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.

This regime will enter into force on 1 January 2002 and will

last until 31 December 2003.

Signed at … on …

For the European Community

For the Arab Republic of Egypt

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ANNEX I

Category

CN code 2001

Description

Unit

Quantitative levels from
1 January to 31
December

2002

2003

1

2

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

5208 11 10
5208 11 90
5208 12 16
5208 12 19
5208 12 96
5208 12 99

Cotton yarn, not put for retail sale

Tonnes

64 860

67 130

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

Tonnes

22 950

23 753

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Category

CN code 2001

Description

Unit

Quantitative levels from
1 January to 31
December

2002

2003

2
(cont.)

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

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

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Category

CN code 2001

Description

Unit

Quantitative levels from
1 January to 31
December

2002

2003

2
(cont.)

4

20

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

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

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

1 000 pieces

Administrative
cooperation

Bedlinen, other than knitted or crocheted

Tonnes

Administrative
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 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 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, 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.

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 under paragraph 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’) and any amendments thereof.

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

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.

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ANNEX IV

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Agreed minute

With regard to the question of management of the levels below which the Community undertakes not to
apply safeguard 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 the 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

Agreed minute

Should the Community and the Arab Republic of Egypt conclude the Association Agreement, the Memor-
andum 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