CELEX: 21977A0218(02)
Language: en
Date: 1977-02-08 00:00:00
Title: Agreement between the European Economic Community and Macao on trade in textile products

No L 47/8                             Official Journal of the European Communities                                 18 . 2. 77
                                                         AGREEMENT
               between the European Economic Community and Macao on trade in textile products
             THE COUNCIL OF THE EUROPEAN COMMUNITIES,
             of the one part, and
             THE GOVERNMENT OF MACAO,
             of the other part,
             DESIRING to ensure the orderly and equitable development of trade in textiles between the
             European Economic Community ( hereinafter referred to as 'the Community') and Macao,
             HAVING REGARD to the provisions of the Arrangement regarding international trade in
             textiles ( hereinafter referred to as 'the Geneva Arrangement') and in particular Article 4 thereof,
             HAVE DECIDED, in a spirit of mutual cooperation and in conformity with the Geneva Arrange­
             ment, to conclude this Agreement and to this end have designated as their Plenipotentiaries:
             THE COUNCIL OF THE EUROPEAN COMMUNITIES :
             THE GOVERNMENT OF MACAO :
             WHO HAVE AGREED AS FOLLOWS :
                          Article 1                                                          Article 2
1 . The Parties recognize and confirm that, subject
to the provisions of this Agreement and without                     1 . The Community undertakes, in respect of the
prejudice to their rights and obligations under the                 categories of textile products to which this Agreement
General Agreement on tariffs and trade, the conduct                 applies, and subject to the satisfactory operation of
of their mutual trade in textile products shall be                  this Agreement, not to introduce new quantitative
governed by the provisions of the Geneva                            restrictions and to refrain from invoking Article 3 of
Arrangement.                                                        the Geneva Arrangement provided that exports to the
                                                                    Community of these textile products originating in
2. This Agreement shall apply to trade in those                     and coming from Macao do not exceed the quanti­
categories of textile products originating in and                   tative limits established under this Agreement.
coming from Macao which are listed in Annexes I
and II and to those referred to in Article 4 below.
3 . Macao agrees to establish quantitative limits on                2. The Macao authorities undertake to take all
exports to the Community in accordance with the                     appropriate measures to ensure that the agreed
schedule set out in Annex I.                                        quantitative limits are not exceeded.
 ---pagebreak--- 18.2 . 77                             Official Journal of the European Communities                             No L 47/9
3 . The Community shall not object to the                       3 . If, in the opinion of the Community, imports
quantitative limits referred to being exceeded in the            into the Community of textile products in direct
event of additional demand on the Community                      competition with those covered by this Agreement
market, on the understanding that the additional                 cause a real risk of market disruption, the Com­
quantities shall be fixed by common agreement                    munity may request consultations with Macao under
between the two parties.                                         identical conditions to those specified in paragraph 5
                                                                 of this Article .
                          Article 3
                                                                 4. If an excessive concentration of trade in any
                                                                 specific products within a category listed in Annex II
1 . Imports into the Community of textile products               causes a real risk of market disruption in respect of
covered by this Agreement which are for immediate                those products , the Community may request
re-export or for inward processing and subsequent                consultations with Macao under identical conditions
re-export outside the Community shall not be subject             to those specified in paragraph 5 of this Article.
to the quantitative limits established under this
Agreement, provided they are entered as such under
an administrative system of control in force for this            5 . In the cases defined in paragraphs 2, 3 , and 4 of
purpose within the Community.                                    this Article, Macao will, in accordance with the
                                                                 Community's request, limit its exports of the
2. Where Community authorities ascertain that the                products or categories of products in question to the
products imported and referred to in paragraph 1                 Community market or to the Community market in
have been retained for use within the Community,                 one or more of its Member States, pending a
the latter will notify the Government of Macao                   mutually satisfactory conclusion to the said consul­
quarterly of the amounts involved. Macao shall in                tations, to a level indicated by the Community which,
such cases and at the request of the Community set                as an annual rate, may not be lower than 107%
 off such amounts against the quantitative limit or               of the imports recorded for the products or
 limits in question for the current year or for the               categories of products in question during the 12
 following year.                                                  months ending three months before that in which
                                                                  the request for consultation was made.
 3 . In any case where the competent authorities in
 the Community ascertain under an administrative
 system of control in force that imports of textile               6. Consultations shall be held at the request of
                                                                  Macao     in   order  to   review  the   need  for  the
 products covered by this Agreement have been set
 off against quantitative limits established under this           maintenance or modification of any quantitative
 Agreement but have subsequently been re-exported                 restrictions established under this Article, whenever
                                                                  the market conditions which led to the establishment
 outside the Community, the competent authorities
 concerned shall inform the Macao authorities of the              of such restrictions no longer prevail .
 quantities involved and authorize imports of
 equivalent quantities, which shall not be set off
 against the quantitative limits established by the                                        Article 5
 Agreement.
                                                                  1 . Portions of any quantitative limit established
                          Article 4
                                                                  under this Agreement which are not used during
                                                                  any given period may be carried over and added to
                                                                  the corresponding quantitative limits for the
  1 . Both Parties agree to enter promptly into                   following period, within a limit of 10% of the latter
  consultations with each other, at the request of either         ceiling.
  and in conformity with the provisions of the Geneva
 Arrangement, on any matter concerning their trade in
 textiles and in particular on any problems arising                2. Within a limit of 10% of each ceiling established
  from the application of this Agreement. Such                    under this Agreement, advance deliveries shall be
  consultations shall be approached by both Parties               authorized from the corresponding ceiling in force
  in a spirit of compromise and with a view to the                 for the following period. Amounts dispatched in
  conciliation of differences existing between them.               advance shall be deducted from the ceiling for the
                                                                   products in question for the following period.
  2. The Community may, in particular, whenever
  conditions in its market give rise to real risks of
  market disruption, request consultations with Macao             3 . During each period of application of this
  in accordance with the procedure laid down in                   Agreement, unused portions of quantitative ceilings
  paragraph 5 below for the products listed in Annex II.           established under this Agreement for one of the
 ---pagebreak---  No L 47/ 10                             Official Journal of the European Communities                                    18.2 . 77
regions of the Community market may be transferred                  5 . The flexibility provisions contained in this
under the conditions         set   out   below    to  another       Article may be applied by Macao only after written
quantitative ceiling established for the same region                notification to the Community by the Macao
of the Community market.                                            authorities .
Transfers may be effected under this Agreement :
                                                                                                Article 6
 (i)     to categories
       ex 60.05                (Jerseys, pullovers,                 1 . The following textile products shall be imported
            01 and 21 to 39    slipovers, twinsets,                 into the Community from Macao without
                               cardigans, jackets and               quantitative restrictions, on condition that they fall
                               blouses, knitted or                  within one of the definitions set out below :
                               crocheted)
       ex 61.01                ( Men's, boys', women's,                 ( i) cotton handloom fabrics of the cottage industry,
            61 and 69          girls' and infants'                            containing not more than 5% by weight of
       ex 61.02                trousers, shorts and jeans)                    man-made fibres, ( being fabrics which are both
       ex 91 to ex 99                                                         traditionally of the kind woven on handlooms
                                                                              and actually woven on a loom for which the
       ex 61.03                ( Men's shirts)                                motive power is provided entirely by the
            11 to 19                                                          operators (that is where the three primary
                                                                              movements of weaving, namely shedding,
       ex 61.03                ( Pyjamas )                                    picking and beating, are induced by hand or
                                                                              foot and no other source of power is used );
        ex 62.02                (Bed linen table linen,
                               toilet linen and kitchen
                               linen ; curtains and                    ( ii ) handmade goods made up by the cottage
                               other furnishing articles                      industry from such cotton handloom fabrics ;
                               except net curtains)
                                                                     ( iii ) jerseys and pullovers knitted by hand from wool
                                                                              yarns without use of a machine ;
          provided that such transfers do not exceed 7%
          of the quantitative limit for the category to
          which they are made ;                                      ( iv) textile products of traditional Macao folklore
                                                                              cut, sewn, or otherwise fabricated by hand in
                                                                               cottages which are units of the cottage industry.
 (ii) to categories
        61.02.81 to 89          (Women's shirts and
                               blouses )                            2. The admission of these products into the Com­
                                                                     munity without quantitative restrictions shall be
        61.05.30                ( Cotton handkerchiefs)              subject to the proper functioning of the agreed
                                                                     arrangements concerning certification .
       provided that such transfers do not exceed 5 %
       of the quantitative limit for the category to which
       they are made ;
                                                                                                Article 7
 (iii ) in so far as the quantities which are transferred
          to a quantitative limit are debited from other             Macao will make every endeavour to ensure that
          quantitative limits on the basis of the table of           exports of all textile products for which quantitative
          equivalences given in Annex IV ;                           limits may be established under this Agreement are
                                                                     spaced out as evenly as possible over each period
  ( iv) in so far as a transfer is made to a quantitative            of the Agreement, due account being taken, in
          limit only once during each period of application           particular, of seasonal factors .
          of the Agreement.
 4. The preceding flexibility provisions must not, in                                            Article 8
 any given period of the Agreement, lead to the
  ceiling for any category being exceeded by more than               The two Parties agree to exchange all relevant
  15% of the ceiling for the category and period in                  information concerning their trade in textiles in order
  question.                                                           to ensure the smooth functioning of this Agreement.
 ---pagebreak--- 18 . 2 . 77                          Official Journal of the European Communities                          No L 47/ 11
                       Article 9                                CCT heading No
                                                                55.05              Cotton yarn, not put up for retail
1 . The Parties agree that the quantitative limits                                 sale
established under this Agreement shall be managed               55.06              Cotton yarn, put up for retail sale
under a system of double checking, the details of
which are set out in Annex VI to this Agreement.                55.07              Cotton gauze .
2 . Macao therefore undertakes to furnish the Com­                                      Article 12
munity quarterly with statistical information on all
export licences issued by the Macao authorities for             This Agreement shall apply to the territories where
all categories of textile exports to the Community              the Treaty establishing the European Economic
and covered by this Agreement.                                  Community applies, on the conditions laid down in
                                                                that Treaty, and to the territory of Macao.
3 . The Community shall likewise forward quarterly
to the Macao authorities statistical information on
                                                                                        Article 13
imports of the products in question into the Com­
munity.                                                         1 . This Agreement shall enter into force on the first
                                                                day of the month following the date on which the
                                                                Contracting Parties have notified each other of the
                       Article 10                               completion of the procedures necessary for this
                                                                purpose. It shall remain             applicable until
                                                                31 December 1977 .
1 . Both Parties shall take all appropriate measures
to ensure that the traditional trade flows and com­
                                                                2. This Agreement shall enter into force, in the
mercial practices are maintained between the Com­               manner - defined in paragraph 1 of this Article, with
munity and Macao.                                               retroactive effect from 1 October 1975 .
2. Should either Party inform the other that the                3 . Either Party may at any time propose
functioning of this Agreement has given rise to                 modifications to this Agreement or denounce it
difficulties regarding the maintenance of existing              provided that notice is given at least 120 days before
commercial relations between importers in the Com­              the expiry of any 12-month period. In the latter event
munity and their suppliers in Macao, the Parties                the Agreement will come to an end at the expiry of
agree to consult together in accordance with the                the said 12-month period .
procedures in Article 4 ( 1 ) above.
                                                                4 . The Annexes to this Agreement shall form an
                                                                integral part thereof.
                       Article 11
                                                                                        Article 14
Without prejudice to the other provisions of this
Agreement, Macao agrees that the quantitative                   This Agreement shall be drawn up in two copies
restrictions on imports into Ireland of the following           in the Danish, Dutch, English, French, German,
 textile products may be maintained until 30 June 1977          Italian and Portuguese languages, each of these texts
at the latest.                                                  being equally authentic.
 ---pagebreak--- No L 47/ 12                          Official Journal of the European Communities                                       18 . 2. 77
                                                           ANNEX I
            Products in respect of which Macao will exercise voluntary restraint vis-a-vis the Community
                                   as a whole from the entry into force of the Agreement
            The Community hereby informs Macao that the quantitative limits for the textile products
            listed below will be allocated between the Member States as follows :
                                                                                                Quantitative limits
                  CCT                                                                               (1 000 units)
                 heading      Nimexe code               Description             Community
                   No                                                             region   1 . 10 . 1975
                                                                                                 to               1977
                                                                                          31 . 12. 1976
            ex 61.01        61 to 69          Men's , boys ', women's ,          D             6 770            5 691
            ex 61.02        ex 91 to ex 99    girls' and infants' trousers ,      F            3 206            2 7 66
                                              shorts and jeans                    I            1 778             1 694
                                                                                  BNL          1 507             1 351
                                                                                  UK               256              408
                                                                                  IRL                11              17
                                                                                  DK                3.3              53
                                                                                  EEC         13 561           11 9 80
                                                           ANNEX 11
                       Products subject to the special consultation procedure provided for in Article 4
                   CCT
                 heading                                            Description
                    No
            ex 60.05           Jerseys, pullovers, slipovers, twinsets, cardigans, jackets and blouses,
                               knitted or crocheted
            ex 61.01           Men's, boys', women's, girls' and infants' outer garments, other than
            ex 61.02           trousers , shorts and jeans
                 61.03         Men's and boys' under garments, including collars, shirt fronts and cuffs :
                               — Shirts
                               — Other
                 61.05.30      Cotton handkerchiefs
                 62.02 B       Bed linen, table linen,'r toilet linen^and kitchen linen ; curtains and other
                               furnishing articles except net curtains
 ---pagebreak---  18 . 2 . 77                                Official Journal of the European Communities                           No L 47/ 13
                                                                 ANNEX III
                                                                PROTOCOL
                         to the Agreement between the European Economic Community and Macao on trade
                                                             in textile products
                  1 . In accordance with Article 4 of the Agreement on trade in textile products concluded
                  between the Community and Macao, consultations have taken place between the Parties re­
                  garding imports from Macao into the Community of the textile products shown below.
                  2. As agreed at the abovementioned consultations Macao will limit its exports of the products
                  below to the regions of the Community market to the levels indicated.
                                                                            Region of the
           C CT                                                              Community
          heading                            Description                    market where       Unit   Quantitative     Periods
            No                                                             the quantitative              limits
                                                                             limit applies
ex 60.05                    Jerseys , pullovers , slipovers , twinsets ,        BNL          items    600 000
01 and 21 to 39             cardigans , jackets and blouses , knitted or
                            crocheted                                           F            items  2 220 000
                                                                                                                    1 . 10 . 1975
                                                                                                                   to
61.02                       Women's shirts and blouses                          F            items  1 600 000
81 to 89
                                                                                                                   31 . 12 . 1976
ex 61.03                    Men's and boys' shirts                              BNL          items    400 000
11 to 19                                                                        F            items  2 459 200      1 . 1 . 1976
                                                                                                                   to
ex 61.03                    Pyjamas                                             F            items  2 014 000      31 . 12 . 1976
61.05.30                    Cotton handkerchiefs                                BNL         tonnes           90    1 . 10 . 1975
                                                                                                                   to
                                                                                                                   31 . 12 . 1976
                                                                                F           tonnes          83-3   1 . 1 . 1976
                                                                                                                   to
                                                                                                                   31 . 12 . 1976
                                                                                I           tonnes        273-3    1 . 10 . 1975
                                                                                                                   to
                                                                                                                   31 . 12 . 1976
ex 62.02                   Bed linen , table linen , toilet linen and           I           tonnes         320     1 . 10 . 1975
                           kitchen linen ; curtains and other                                                      to
                           furnishing articles of cotton, except net                                               31 . 12 . 1976
                           curtains
                  3. If the abovementioned limits remain in force for one or more additional periods of 12
                  months, the level for that period will not be lower than that in force during the preceding
                  12-month period, with an increase of at least 7%> and, for cotton handkerchiefs, of at least 2%.
 ---pagebreak--- No L 47/ 14                   Official Journal of the European Communities                                18 . 2 . 77
                                                    ANNEX IV
                             Table of equivalences for the application of Article 5
                CCT
               heading                              Description                              Equivalences
                 No
            ex 60.05   Jerseys , pullovers , slipovers , cardigans , jackets and blouses , 5-18 items/kg
                       knitted or crocheted
            ex 61.01   Men's , boys', women's , girls' and infants ' trousers , shorts     2-47 items/kg
            ex 61.02   and jeans
            ex 61.02   Women's shirts and blouses                                          5·55 items/kg
            ex 61.03   Men's and boys ' shirts                                             4·60 items/kg
            ex 61.03   Pyjamas                                                             3-22 items/kg
 ---pagebreak--- 18 . 2 . 77                           Official Journal of the European Communities                               No L 47/ 15
                                                         ANNEX V
                                               Cottage industry textile products
            1 . In accordance with Article 12 (3 ) of the Geneva Arrangement, the Community and Macao
            have agreed, in Article 6 of the Agreement that, subject to certain conditions, exports from
            Macao of certain cottage industry textile products shall be admitted to the Community free of
            quantitative restrictions. The conditions set out in Article 6 (2) of the Agreement provide that
            the admission of these products into the Community without quantitative restrictions shall be
            subject to the proper functioning of the agreed arrangements concerning certification.
            2. The Community and Macao hereby agree that, for the implementation of Article 6 of the
            Agreement, the certificate given below will be used as a model :
            ' Certificate in respect of cottage industry textile products referred to in Article 6 of the Agree­
            ment between the European Economic Community and Macao on trade in textile products :
            — name and address of manufacturer,
            — name and address of exporter,
            — name and address of importer within the Community,
            — description of goods,
            — quantity ( in tonnes ),
            — name of vessel or flight number,
            — port or airport of destination .
            This is to certify that the above shipment consists of:
            (i)   cotton handloom fabrics of the cottage industry, containing not more than 5%> by weight
                  of man-made fibres, being fabrics which are both traditionally of the kind woven on hand­
                  looms and actually woven on a loom for which the motive power is provided entirely by
                  the operators (that is where the three primary movements of weaving, namely shedding,
                  picking and beating, are induced by hand or foot a,nd no other source of power is used);
            (ii) handmade goods made up by the cottage industry from such cotton handloom fabrics ;
            (iii) jerseys and pullovers knitted by hand from wool yarns without use of a machine;
            (iv) textile products of traditional Macao folklore cut, sewn, or otherwise fabricated by hand in
                  cottages which are units of the cottage industry.'
            3. The issuing authority for the above certificates shall be:
            Repartigao Provincial de Servicos de Economia.
 ---pagebreak--- No L 47/ 16                               Official Journal of the European Communities                        18 . 2 . 77
                                                               ANNEX VI
             As agreed between the Parties in Article 9 of the Agreement, the administration of textile
              imports from Macao will be based on a system of double checking. The details of this system
              have been agreed between the Parties and are set out below.
             The competent authorities in the Community will, automatically and without delay, accept
             imports of textile products on submission of the importer's application together with the export
             licence issued by the competent Macao Government authorities (1). The competent authorities
             in the Community will be authorized to request the presentation of the export licence in respect
             of goods originating in Macao of the categories shown in Annex I and (where Article 4 has been
             invoked) in Annex II. These export licences will be issued by the Macao Government authori­
             ties up to the total amount of the agreed quantitative limits.
             The export licences issued by the Macao authorities shall be applicable to the products subject
             to restraint under the Agreement.
             The export licence must specify:
             1 . destination,
             2. serial number,
             3 . importer's name and address,
             4. exporter's name and address,
             5. net quantity (in tonnes or number of items as indicated in the Agreement) and value,
             6. category and classification of product,
             7. certification by the Macao authorities showing that the quantity has been debited against
                 the agreed ceiling for exports to the Community or is for immediate re-export or for in­
                 ward processing and subsequent re-export outside the Community.
             The competent authorities in the Community will not raise difficulties in the event of a dis­
             crepancy between the quantities indicated in the export licence and the shipment or import
            quantities provided it is within reasonable limits, while the Macao authorities, for their part,
             will endeavour to keep any possible discrepancies to a minimum.
             In the event of total or partial withdrawal of an export licence, the Macao authorities will
             notify the competent authorities in the Community of such total or partial withdrawal. The
             competent authorities in the Community will take the administrative measures available to
            them.
            The Macao authorities will forward to the competent authorities in the Community, via the
            Embassies of the Member States of the Community and directly to the Commission, quarterly
            returns showing the quantities covered by the export licences issued against the ceilings for
            exports to the Community, as well as the allocation of these export licences among the Mem­
            ber States of the Community for each category or ceiling in respect of textile exports to the
            Community subject to quantitative limits under this Agreement.
            f1) Reparticao Provincial de Servicos de Economia.