CELEX: 21992A1231(25)
Language: fi
Date: 1993-12-02 00:00:00
Title: Kirjeenvaihtona tehty sopimus Euroopan talousyhteisön ja Kiinan kansantasavallan välisen tekstiilituotteiden kauppaa koskevan sopimuksen muuttamisesta - Yhteisesti hyväksytyt pöytäkirjamerkinnät - Verbaalinootit - Noottien vaihdot

11 / Nide 30                                       Euroopan yhteisöjen virallinen lehti                                  121
292A 1231(25 )
N:o L 1 10/ 104                          EUROOPAN YHTEISÖJEN VIRALLINEN LEHTI                                       30.04.94
                                                             AGREEMENT
               in the form of an exchange of letters amending the Agreement between the European Economic
                            Community and the People's Republic of China on trade in textile products
                                                              Letter No 1
               Sir,
               1.     I have* the honour to refer to the consultations held from 2 to 5 December 1992 between
                      our respective delegations for the purpose of amending the Agreement on trade in textile
                      products between the European Economic Community and the People's Republic of China
                      applied since 1 January 1989 ( hereinafter 'the Agreement').
               2.     As a result of these consultations, both Parties agreed to amend the following provisions of
                      the Agreement:
               2.1 .  Annex I, Annex III and the Annex to Protocol E which set out the products concerned by
                      the Agreement, the quantitative restrictions for exports and the OPT operations
                      respectively, from the People's Republic of China to the European Economic Community,
                      are replaced for the period 1 January 1993 to 31 December 1994 by Appendix 1 ,
                      Appendix 2 and Appendix 3 to this letter, respectively.
               2.2.   In Article 5 ( 1 ), the figure of 5% is replaced by 2% , with a possibility of reaching 5%
                      after consultations in conformity with Article 16 (2 ).
                      In Article 5 (2 ), the figure of 7% is replaced by 5% , with a possibility of reaching 7%
                      after consultations in conformity with Article 16 ( 2 ).
               2.3 .  Article 6 ( 6 ) and Protocol C of the Agreement are deleted .
               2.4 .  Article 8 ( 1 ) and ( 2 ) are replaced by the following:
                      ' 1 . The quantitative limits established under this Agreement on imports into the
                            Community of textile products of Chinese origin will not be broken down by the
                             Community into regional shares .
                       2 . 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.
                       3 . China shall monitor its exports of products under restraint or surveillance into the
                             Community. Should a sudden and prejudicial change in traditional trade flows arise,
                            the Community will be entitled to request consultations in order to find a satisfactory
                            solution to those problems . Such consultations must be held within 15 working days of
                            their being requested by the Community.
                       4. China shall endeavour to ensure that exports of textile products subject to quantitative
                            limits into the Communtiy are spaced out as evenly as possible over the year due
                            account being taken in particular of seasonal factors.'
               2.5 .  Article 10 and all references to this Article in the Agreement are deleted .
               2.6 .  Article 15 ( 3 ) is replaced by the following:
                      'The information referred to in paragraphs 1 and 2 above shall, for all categories of
                      products, be forwarded before the end of the month following the month to which the
                      statistics relate .'
               2.7.   The following is added at the beginning of Article 16 (2 ):
                      ' 1 . Save where it is otherwise provided for in this Agreement, . . .'
               2.8 .  The second sentence of Article 20 ( 1 ) is replaced by the following:
                      'It shall be applicable until 31 December 1994. Thereafter, the application of all the
                      provisions of this Agreement shall be extended automatically for a period of one more year
                      up to 31 December 1995, unless either Party notifies the other at least six months before
 ---pagebreak--- 122                                   Euroopan yhteisöjen virallinen lehti                               11 /Nide 30
           31 December 1994 that it does not agree with this extension. However, if the Agreement
           on trade in textiles and clothing products resulting from the Uruguay Round GATT trade
           negotiations is concluded and enters into force at an earlier date, this Agreement shall be
           automatically terminated as of the date agreed for the implementation of the results of the
           Uruguay Round GATT trade negotiations .'
    2.9 .  The first sentence of Article 7 ( 1 ) of Protocol A is replaced by the following:
           ' 1 . The export licence shall conform to the model annexed to this Protocol and it shall be
                 valid for exports throughout the customs territory to which the Treaty establishing the
                 European Economic Community is applied . However, where the Community has made
                 recourse to the provisions of Article 8 in accordance with the provisions of Agreed
                 Minute No 1 , or to Agreed Minute No 2, the textile products covered by the export
                 licences can only be put into free circulation in the region(s) of the Community
                 indicated in those licences .'
    2.10. The second indent of Article 12 ( 1 ) of Protocol A to the Agreement is replaced by the
           following:
           The import authorizations shall be valid for six months from the date of their issue for
           imports throughout the customs territory to which the Treaty establishing the European
           Economic Community is applied . However, where the Community has recourse to the
           provisions of Article 8 in accordance with the provisions of Agreed Minute No 1 , or to
           Agreed Minute No 2, the products covered by the import licences can only be put into free
           circulation in the region(s) of the Community indicated in those licences .'
    2.11 . The second and fifth indents of Article 14 (2 ) of Protocol A are replaced by the
           following:
           '— two letters identifying the intended Member State of customs clearance as follows :
                 BL   =  Benelux,                                     FR    = France,
                 DE   =  Germany,                                     GB    = United Kingdom,
                 DK    = Denmark,                                     IE    = Ireland ,
                 EL    = Greece,                                      IT    = Italy,
                 ES = Spain,                                          PT = Portugal',
           '— a five-digit number running consecutively from 00001 to 99999 allocated to the
                 intended Member State of customs clearance.'
    2.12 . Paragraph 3 ( b) of Protocol E to the Agreement is deleted .
    2.13 . The Agreed Minute to the Agreement of 1989 concerning special flexibilities provisions for
           the Berlin Fair for Germany is deleted and replaced by the joint declaration set out in
           Appendix 8 to this letter.
    2.14 . The Agreed Minute to the Agreement of 1989 concerning Article 10 ( 2) of the Agreement
           is replaced by Agreed Minute No 3 set out in Appendix 6 to this letter.
    2.15. All the Agreed Minutes and joint declarations annexed to this exchange of letters shall
           form an integral part of the Agreement.
    3.     The Parties agreed that this Agreement in the form of an exchange of letters shall enter into
           force on the first day of the month following the day on which the Parties have notified
           each other that the legal procedures necessary to this end have been completed .
           The Parties also agreed that this Agreement in the form of an exchange of letters and the
           amendments hereby to the Agreement of 1989, as extended , shall be applied provisionally
           from 1 January 1993 .
    4.     I should be obliged if you kindly confirm the acceptance of your Government of the
           foregoing.
    Please accept, Sir, the assurance of my highest consideration.
                                                                              For the Council
                                                                       of the European Communities
 ---pagebreak--- 11 /Nide 30                                           Euroopan yhteisöjen virallinen lehti                                        123
                                                                     Appendix 1
            (The contents of Appendix 1 are identical to those of Appendix 1 to the Agreement with Singapore; see pages
                                                                      16 to 42)
                                                                     Appendix 2
                                                                     ANNEX III
            (The full product descriptions of the categories listed in this Annex are to . be found in Annex I to the
                                                                     Agreement)
                                                     COMMUNITY QUANTITATIVE LIMITS
                     Category                          Unit                      1993                1994                  1 995
            1                            tonnes                                   3 399               3 467                 3 536
            2n                            tonnes (')                            25 720 («)          26 234 (')            26 759
            of which 2 (a)                tonnes                                  3 335               3 402                 3 470
            3                             tonnes                                  5 189              5 345                  5 505
            of which 3 (a)               tonnes                                     631                 650                   669
            4 (a)                         1 000 pieces                          43 223              45 384                47 653
            5n                            1 000 pieces (3)                      11 470 (3)          11 929 (3)            12 406
            6                             1 000 pieces (5)                      16 122 (s)          16 767 {*)            17 438
            7                             1 000 pieces (*)                        7 966 (6)           8 285 {<)             8 616
            8                             1 000 pieces (7)                      10 654 f)           10 974 (7)            11303
            9                             tonnes                                  4 600              4 876                  5 169
            10                            i 000 pairs                           52 695              54 803                56 995
            12                            1 000 pairs                           17 604              18 484                19408
            13                            1 000 pieces                         414 892             419 041              423 232
            15                            1 000 pieces (s)                      11 500 (8)          11960 (*)             12 438
            16                            1 000 pieces                          13 000              13 488                13 993
            18                            topnes                                  4 298               4 513                 4 739
            19                            1 000 pieces                          83 530              86 871                90 346
            20/39                         tonnes                                  7180                7 539                 7 916
            21 ( 10)                      1 000 pieces C)                       il ill H            11667 (')             12250
            22                            tonnes                                13 111              13 898                14 732
            23                            tonnes                                  9195                9 655               10 137
            24 (")                        1 000 pieces                          29 362              30 390                31453
            26                            1 000 pieces ( ,2)                      4 099 C 2)          4 304 C 2)            4 519
            31                            1 000 pieces                          51000               52 530                54106
            32                            tonnes                                  3 407               3 543                 3 685
            33 (**)                       tonnes                                17500               18 288                19110
            37                            tonnes                                10 519              11 150                11 819
            of which 37 (a)               tonnes                                  3 111               3 298                 3 496
            73 n                          1 000 pieces                            3 295               3 460                 3 633
            76                            tonnes (")                              4 501 ( ,4)         4 726 C4)             4 962
            78                            tonnes                                21 000              21 630                22 279
            83                            tonnes                                  6 300               6 489                 6 684
              (*) Possibility of transfer to and from category 3 of up to 40% of the category to which the transfer is made.
            (**) Quantitative limits apply also to products declared for re-export outside the Community­
 ---pagebreak--- 24                                             Euroopan yhteisöjen virallinen lehti                                                    li /Nide 30
      (') The following additional quantities may be exported to the Community by China:
          Fabrics of category 2 below 115 cm in width                           tonnes              1993                1 331
                                                                                                    1994                1 358
                                                                                                    1995                1 385
          Fabrics of category 2 for medical gauze                               tonnes              1993                1840
          (CN codes 5208 11 10 and 5208 21 10)                                                      1994                1 877
                                                                                                    1995                1914
     (2) For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments (other than
          babies' garments) of a maximum commercial size of 130 cm, for three garments whose commercial size exceeds 130 cm
          may be applied for up to 5 % of the quantitative limits .
     (3) These figures include the following .quantities reserved for European industry' for a period of 180 days each year:
                                                           1993 :     562 000 pieces
                                                           1994 :     584 000 pieces
                                                           1995:      608 000 pieces.
     C) For products of category 5 (other than anoraks, windcheaters, waister jackets and the like ) of fine animal hair, the
          following sublimits apply whithin the quantitative limits established for category 5:
                                                           1993 :     140 000 pieces
                                                           1994:      144 000 pieces
                                                           1995:      148 000 pieces.
     (3 ) These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                           1993 :   1 000 000 pieces
                                                           1994:    1 040 000 pieces
                                                           1995 :   1 082 000 pieces.
          The following additional quantities of shons (CN codes 6203 41 90, 6203 42 90, 6203 43 90 and 6203 49 50) may be
          exported to the Community by China :
                                                           1 993 :    994 000 pieces
                                                           1994 :   1 034 000 pieces
                                                           1995 :   1 075 000 pieces.
      6 ) These figures include the following quantities reserved for the European industry for a period of 180 days each year:
                                                           1993 :     607 000 pieces
                                                           1994 :     631 000 pieces
                                                           1995 :     657 000 pieces.
      7) These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                           1993 :   1 000 000 pieces
                                                           1994 :   1 030 000 pieces
                                                           1995 :   1 06 1 000 pieces.
      s ) These figures include the following quantities reserved for European industry for a period of 180 days each year;
                                                           1 993 :    260 000 pieces
                                                           1994 :     270 000 pieces
                                                           1995 :     281 000 pieces .
      s ) These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                           1993 :     839 000 pieces
                                                           1994 :     881 000 pieces
                                                           1995 :     925 000 pieces .
   ( 10) For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments ( other than
          babies' garments) of a maximum commercial size of 130 cm, for three garments whose commercial size exceeds 130 cm
          may be applied for up to 5 % of the quantitative limits.
   (") For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments (other than
          babies' garments) of a maximum commercial size of 130 cm, for three garments whose commercial size exceeds 130 cm
          may be applied for up to 5 % of the quantitative limits.
   ( !J) These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                           1993 :     292 000 pieces
                                                           1994:      307 000 pieces
                                                           1995 :     322 000 pieces.
   ( u) For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments (other than
       • babies' garments ) of a maximum commercial size of 130 cm, for three garments whose commercial size exceeds 130 cm
          may be applied for up to 5 % of the quantitative limits.
   f 4) These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                          1993 :    150 tonnes
                                                          1 994 :   158 tonnes
                                                          1995 :    165 tonnes.
 ---pagebreak--- 11 /Nide 30                                    Euroopan yhteisöjen virallinen lehti                            125
                                                           Appendix 3
                                                    ANNEX TO PROTOCOL E
            (The product descriptions of the categories listed in this Annex are to be found in Annex I to the
                                                           Agreement)
                                                         OPT QUOTAS
                                             COMMUNITY QUANTITATIVE LIMITS
                   Category                      Unit                 1993              1994         1995
             4                      1 000 pieces                       200               215          231
             5                      1 000 pieces                       500               530          562
             6                      1 000 pieces                     1800              1 908        2 022
             7                      1 000 pieces                       500               530          562
             8                      1 000 pieces                     1200              1254         1310
            15                      1 000 pieces                       400               424          449
            16                      1 000 pieces                       800               845          893
            18                      tonnes                             100               108           116
            21                      1 000 pieces                     1500              1 613        1733
            24                      1 000 pieces                       100               105           111
            26                      1 000 pieces                       900               968        1040
            31                      1 000 pieces                    5 000 "           5 225         5 460
            73                      1 000 pieces                       200               215          231
            76                      tonnes                             800               860          925
            78                      tonnes                              50                52            55
            83                      tonnes                              50                52            55
                                                           Appendix 4
                                                      Agreed Minute No 1
            In the context of the Agreement between the European Economic Community and the People's
            Republic of China on trade in textile and clothing products, initialled on 8 December 1992, the
            Parties agreed that Article 6 of the Agreement does not preclude the Community, if the conditions
            are fulfilled , from applying the safeguard measures for one or more of its regions in conformity
            with the principles of the internal market.
            In such an event, China shall be informed in advance of the relevant provisions of Protocol A to
            the Agreement to be applied, as appropriate.
                             For the Government                                   For the Council
                    of the People's Republic of China                      of the European Communities
 ---pagebreak--- 126                                 Euroopan yhteisöjen virallinen lehti                               1 1 /Niue 30
                                                 Appendix S
                                           Agreed Minute No 2
    Notwithstanding Article 8 ( 1 ) of this Agreement, for imperative technical or administrative
    reasons or to find a solution to economic problems resulting from regional concentration of
    imports, or in order to combat circumvention and fraud of the provisions of this Agreement, the
    Community will establish for a limited period of time a specific management system in conformity
    with the principles of the internal market.
    However, if the Parties are unable to reach a satisfactory solution during the consultations
    provided for in Article 8 (3 ), China undertakes, if so requested by the Community, to respect
    temporary export limits for one or more regions of the Community. In such a case, these limits
    shall not preclude the importation into the region(s) concerned of products which were shipped
    from China on the basis of export licences obtained before the date of formal notification to
    China by the Community about the introduction of the above limits.
    The Community shall inform China of the technical and administrative measures, such as defined
    in the attached note verbale, that need to be introduced by both Parties in order to implement the
    above paragraphs in conformity with the principles of the internal market.
                   For the Government                                 For the Coimcil
            of the People's Republic of China                  of the European Communities
                                               Note verbale
    The Directorate-General for External Relations of the Commission of the European Communities
    presents its compliments to the Mission of the People's Republic of China to the European
    Communities and has the honour to refer to the Agreement on textile products negotiated
    between the People's Republic of China and the Community applied since 1 January 1989, as
    extended by the exchange of letters of 7 December 1992 .
    The Directorate-General wishes to inform the Mission of the People's Republic of China that the
    Community has decided to apply, starting from 1 January 1993 , the provisions of paragraph 1 of
    Agreed Minute No 2 to the exchange of letters initialled on 8 December 1992. Consequently, the
    corresponding provisions of Articles 7 and 12 of Protocol A to the Agreement shall also be
    applied as of the above date.
    The Directorate-General for External Relations avails itself of this opportunity to renew to the
    Mission of the People's Republic of China to the European Communities the assurance of its
    highest consideration.
 ---pagebreak--- Il /Nide 30                                 Euroopan yhteisöjen virallinen lehti                                    127
                                                        Appendix 6
                                                   Agreed Minute No 3
            In the context of the Agreement between the European Economic Community and the People's
            Republic of China on trade in textile and clothing products, initialled in Brussels on 8 December
            1992, the Parties agreed that China shall endeavour not to deprive certain regions of the
            Community which have traditionally had relatively small shares of Community quotas of imports
            of products serving as inputs for their processing industry.
            The Community and China further agreed to hold consultations, should the need arise, in order to
            avert any problems which might occur in this respect.
            The Parties agreed that this Agreed Minute replaces the corresponding Agreed Minute of the
            Agreement on this subject.
                           For the Government                                  For the Council
                   of the People's Republic of China                   of the European Communities
                                                         Appendix 7
                                                   Agreed Minute No 4
            In the context of the Agreement between the European Economic Community and the People's
            Republic of China on trade in textile and clothing products , applied since 1 January 1989 , as
            extended by the exchange of letters initialled on 8 December 1992, China agreed that, from the
            date of request for and pending the consultations referred to in Article 8 ( 3 ), it shall cooperate by
            not issuing export licences that would further aggravate the problems resulting from the regional
            concentration of direct imports into the Community.
                           For the Government                                  For the Council
                    of the People's Republic of China                  of the European Communities
 ---pagebreak--- 128                                 Euroopan yhteisöjen virallinen lehti                              11 /Nide 30
                                            Exchange of notes
    The Directorate-General for External Relations of the Commission of the European Communities
    presents its compliments to the Mission of the People's Republic of China to the European
    Communities and has the honour to refer to the Agreement on textile products between the
    People's Republic of China and the Community applied since 1 January 1989, as extended by the
    exchange of letters initialled on 8 December 1992.
    The Directorate-General wishes to inform the Mission of the People's Republic of China that
    whilst awaiting the completion of the necessary procedures for the conclusion and the coming into
    force of the extended Agreement, the Community is prepared to allow the provisions of the
    Agreement to apply de facto from 1 January 1993 . This is on the understanding that either Party
    may at any time terminate this de facto application of the extended Agreement provided that 120
    days' notice is given .
    The Directorate-General for External Relations would be grateful if the Mission would confirm its
    Agreement to the foregoing.
    The Directorate-General for External Relations avails itself of this opportunity to renew to the
    Mission of the People's Republic of China to the European Communities the assurance of its
    highest consideration .
 ---pagebreak--- 1 l /Nide 30                                  Euroopan yhteisöjen virallinen lehti                             129
                                                           Appendix 8
                                             Joint declaration on the Berlin Fair
             In the context of the Agreement between the European Economic Community and the People's
             Republic of China on trade in textile and clothing products, applied since 1 January 1989, and
             further extended by the exchange of letters initialled on 8 December 1992, the two Parties agreed
             that the following Berlin Fair quantities, that were included in the German regional quotas for
             1992 :
                                  Category:     1                317       tonnes
                                                2              1 338       tonnes
                                                2(a )            159       tonnes
                                                3                196       tonnes
                                                3(a )             27       tonnes
                                                4              2 061       1 000   pieces
                                                5                705       1 000   pieces
                                                6              1 689       1 000   pieces
                                                7                302       1 000   pieces
                                                8                992       1 000   pieces
                                                9                294       tonnes
                                              10           .,  2 215       1 000   pairs
                                              12                 843       1 000   pairs
                                              13               3 192       1 000   pieces
                                               19              5 431       1 000   pieces
                                              20/39              372       tonnes
                                              21                 964       1 000 pieces
                                              22                 332       tonnes
                                              24               1 138       1 000 pieces
                                              32                 184       tonnes
                                              37                 567       tonnes
                                              37(a )             158       tonnes
             are made available for the years 1993 , 1994, 1995 on the understanding that such quantities may
             be used exclusively at European fairs and that they take definitively care of China's interests
             regarding any future allocation of quantities for fairs that could be decided by the Community.
             Flexibilities provided for in Article 5 of the Agreement will apply to the above categories .
                             For the Government                                  For the Council
                     of the People's Republic of China                   of the European Communities
 ---pagebreak--- 130                                  Euroopan yhteisöjen virallinen lehti                                  li /Nide 30
                                                   Appendix 9
                                            Agreed Minute No 5
    In the context of the settlement of the overshipment, which occurred in 1992 concerning the
    sublimit for cashmere pullovers in category 5, China undertakes to ensure improved regular
    supplies of cashmere raw materials in terms of qualities and prices to European producers of
    cashmere made-up products.
    The actual implementation of this undertaking as well as active action by China to combat fraud
    and transhipments of cashmere products will be taken into account by the European Community
    in defining the calendar and modalities for the resorption of quantities overshipped in 1992 .
    As a first step in the resorption of the 1992 overshipments, whose magnitude will be determined
    on the basis of Community import statistics for 1992, an annual deduction of 45 000 pieces has
    been agreed for the years 1993 , 1994 and 1995 .
    Consultations will be held at the request of either party to review trade developments on this
    subject.
                    For the Government                                  For the Council
             of the People's Republic of China                   of the European Communities
                                                  Appendix 10
                                            Agreed Minute No 6
    In the context of the Agreement between the European Economic Community and the People's
    Republic of China on trade in textile and clothing products, applied since 1 January 1989 , as
    extended by the exchange of letters initialled on 8 December 1992, the Parries agreed that by
    derogation to the provisions of Article 4 ( 1 ) of the Agreement, the quantitative limits provided for
    in Annex III in respect of products of category 33 cover all imports including products declared to
    be for re-export outside the Community. Exports of these products will consequently be subject to
    the normal double-checking system.
                    For the Government                                   For the Council
             of the People's Republic of China                   of the European Communities
 ---pagebreak--- 1 l / Nide 30                                 Euroopan yhteisöjen virallinen lehti                              131
                                                            Appendix 11
                                                     Agreed Minute No 7
               In the context of the Agreement between the European Economic Community and the People's
               Republic of China on trade in textile and clothing products, applied since 1 January 1989, as
               extended by the exchange of letters initialled on 8 December 1992, China undertakes to limit its
               exports to the European Community of surgical dressing (CN code 3005 90 31 ) to the following
               quantities:
                                                    1993       3 200 tonnes
                                                    1994       3 360 tonnes
                                                    1995       3 528 tonnes .
              Exports of these products will be made subject to normal double-checking system provisions of
              the Agreement.
                             For the Government                                 For the Council
                      of the People's Republic of China                  of the European Communities
 ---pagebreak--- 132                                     Euroopan yhteisöjen virallinen lehti                                11 /Nide 30
                                                    Letter No 2
    Sir,
    I have the honour to acknowledge receipt of your letter of . .       which reads as follows :
         'Sir,
         1.     I have the honour to refer, to the consultations held from 2 to 5 December 1992
                between our respective delegations for the purpose of amending the Agreement on trade
               in textile products between the European Economic Community and the People's
               Republic of China applied since 1 January 1989 (hereinafter "the Agreement").
        2.     As a result of these consultations, both Parties agreed to amend the following provisions
               of the Agreement:
        2.1 .  Annex I, Annex III and the Annex to Protocol E which set out the products concerned
               by the Agreement, the quantitative restrictions for exports and the OPT operations,
               respectively from the People's Republic of China to the European Economic
               Community, are replaced for the period 1 January 1993 to 31 December 1994 by
               Appendix 1 , Appendix 2 and Appendix 3 of this letter, respectively.
       2.2.    In Article 5 ( 1 ), the figure of 5 % is replaced by 2% , with a possiblity of reaching 5 %
               after consultations in conformity with Article 16 ( 2 ).
               In Article 5 (2 ), the figure of 7% is replaced by 5 % , with a possiblity of reaching 7%
               after consultations in conformity with Article 16 (2 ).
       2.3 .   Article 6 ( 6 ) and Protocol C of the Agreement are deleted .
       2.4 .   Article 8(1 ) and ( 2 ) are replaced by the following:
               " 1 . The quantitative limits established under this Agreement on imports into the
                     Community of textile products of Chinese origin will not be broken down by the
                     Community into regional shares .
                 2 . 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.
                 3 . China shall monitor its exports of products under restraint or surveillance into the
                     Community. Should a sudden and prejudicial change in traditional trade flows
                     arise, the Community will be entitled to request consultations in order to find a
                     satisfactory solution to those problems. Such consultations must be held within 15
                     working days of their being requested by the Community.
                 4 . China shall endeavour to ensure that exports of textile products subject to
                     quantitative limits into the Community are spaced out as evenly as possible over
                     the year due account being taken in particular of seasonal factors ."
       2.5 .   Article 10 and all references to this Article in the Agreement are deleted.
       2.6.    Article 15 ( 3 ) is replaced by the following :
               "The information referred to in paragraphs 1 and 2 above shall, for all categories of
               products, be forwarded before the end of the month following the month to which the
               statistics relate ."
       2.7.    The following is added at the beginning of Article 16 (2 ):
               " 1 . Save where it is otherwise provided for in this Agreement, ..."
       2.8 .   The second sentence of Article 20 ( 1 ), is replaced by the following:
               "It shall be applicable until 31 December 1994. Thereafter, the application of all the
               provisions of this Agreement shall be extended automatically for a period of one more
               year up to 31 December 1995, unless either Party' notifies the other at least six months
               before 31 December 1994 that it does not agree with this extension. However, if the
               Agreement on trade in textiles and clothing products resulting from the Uruguay Round
 ---pagebreak--- 11 / Nide 30                                      Euroopan yhteisöjen virallinen lehti                              133
                        GATT trade negotiations is concluded and enters into force at an earlier date, this
                        Agreement shall be automatically terminated as of the date agreed for the
                        implementation of the results of the Uruguay Round GATT trade negotiations ."
                 2.9 .  The first sentence of Article 7 ( 1 ) of Protocol A is replaced by .the following:
                        " 1 . The export licence shall conform to the model annexed to this Protocol and it shall
                              be valid for exports throughout the customs territory to which the Treaty
                              establishing the European Economic Community is applied . However, where the
                              Community has made recourse to the provisions of Article 8 in accordance with
                              the provisions of the Agreed Minute No 1 , or to the Agreed Minute No 2, the
                              textile products covered by the export licences can only be put into free circulation
                              in the region(-s) of the Community indicated in those licences."
                 2.10. The second indent of Article 12 ( 1 ) of Protocol A to the Agreement is replaced by the
                        following:
                        "The import authorizations shall be valid for six months from the date of their issue for
                        imports throughout the customs territory to which the Treaty establishing the European
                        Economic Community is applied . However, where the Community has recourse to the
                        provisions of Article 8 in accordance with the provisions of the Agreed Minute No 1 , or
                        to Agreed Minute No 23 the products covered by the import licences can only be put
                        into free circulation in the region(s ) of the Community indicated in those licences ."
                 2.11 . The second and fifth indents of Article 14 (2 ) of Protocol A are replaced by the
                        following:
                        "— two letters identifying the intended Member State of customs clearance as
                              follows :
                              BL    =   Benelux,                                     FR    = France,
                              DE    =   Germany,                                     GB    = United Kingdom,
                              DK    =   Denmark,                                     IE    = Ireland ,
                              EL    =   Greece,                                      IT    = Italy,
                              ES = Spain,                                            PT    = Portugal ",
                              a five-digit number running consecutively from 00001 to 99999 allocated to the
                              intended Member State of customs clearance ."
                 2.12 . Paragraph 3 ( b ) of Protocol E to the Agreement is deleted .
                 2.13 . The Agreed Minute to the Agreement of 1989 concerning special flexibilities provisions
                        for the Berlin Fair for Germany is deleted and replaced by the joint declaration set out
                        in Appendix 8 to this letter.
                 2.14 . The Agreed Minute to the Agreement of 1989 concerning Article 10 ( 2 ) of the
                        Agreement is replaced by Agreed Minute No 3 set out in Appendix 6 to this letter.
                 2.15 . All the Agreed Minutes and joint declaractions annexed to this exchange of letters shall
                        form an integral part of the Agreement.
                 3.     The Parties agreed that this Agreement in the form of an exchange of letters shall enter
                        into force on the first day of the month following the day on which the Parties have
                        notified each other that the legal procedures necessary to this end have been
                        completed .
                        The Parties also agreed that this Agreement in the form of an exchange of letters and
                        the amendments hereby to the Agreement of 1989 , as extended , shall be applied
                        provisionally from 1 January 1993 .
                 4.     I should be obliged if you kindly confirm the acceptance of your Government of the
                        foregoing.
                        Please accept, Sir, the assurance of my highest consideration.'
             I have the honour to confirm that my Government is in agreement with the contents of your
             letter .
             Please accept, Sir, the assurance of my highest consideration.
                                                                                       For the Government
                                                                               of the People's Republic of China
 ---pagebreak--- 134                                             Euroopan yhteisöjen virallinen lehti                                       11 /Nide 30
                                                              Appendix 1
    (The contents of Appendix 1 are identical to those of Appendix 1 to the Agreement with Singapore; see pages
                                                               16 to 42 )
                                                              Appendix 2
                                                              ANNEX III
    (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the
                                                              Agreement)
                                               COMMUNITY QUANTITATIVE LIMITS
              Category                           Unit                      1993              . 1994                 1995
    1                             ronnes                                   3 399               3 467                3 536
    2n                             tonnes (')                             25 720 (')         26 234 (')            26 759
    of which 2 (a)                 tonnes                                  3 3 35              3 402                3 470
    3                             tonnes                                   5 189               5 345                5 505
    of which 3 (a )               tonnes                                      631                 650                  669
    4 (2 )                         1 000 pieces                           43 223             45 384                47 653
    5 (4)                          1 000 pieces (3)                       11470 ( 3)          11 929 ( 3)          12 406
    6                              1 000 pieces (3 )                      16 122 < 5)         16 767 (5)           17 438
    7                              1 000 pieces (6)                         7 966 (é )          8 285 (6)            8 616
    8                              1 000 pieces (7)                       10 654 (7)          10 974 (7)           11303
    9                             tonnes                                   4 600               4 876                5 169
    10                             1 000 pairs                            52 695             54 803                56 995
    12                             1 000 pairs                            17 604              18 484               19 408
    13                             1 000 pieces                         414 892             419 041               423 232
    15                             1 000 pieces (")                       11500 (*)           11960 («)            12 438
    16                             1 000 pieces                           13 000              13 488               13 993
    18                             tonnes                                  4 298               4 513                4 739
    19                             1 000 pieces                           83 530              86 871               90 346
    20/39 ,                       tonnes                                   7180                7 539                 7916
    21' ( ,0)                      1 000 pieces (9)                       11 111 O            11667 Π              12 250
    22                             tonnes                                 13 111              13 898               14 732
    23                             tonnes                                  9 195               9 655               10 137
    24 (")                         1 000 pieces                           29 362             30 390                31453
    26                             1 000 pieces ('-)                       4 099 ( 12)         4 304 ( 12)          4519
    31                             1 000 pieces                           51 000             52 530                54 106
    32                             tonnes                                  3 407 .             3 543                 3 685
    33 {**)                        tonnes                                 17 500              18 288               19 110
    37                             tonnes                                 10 519              11 150               11 819
    of which 37 (a )               tonnes                                  3 111                3 298                3 496
    73 (»)                         1 000 pieces                             3 295              3 460                 3 633
    76                             tonnes ( M )                            4 501 ( ,4)         4 726 ( M)            4 962
     78                            tonnes                                 21000              21630                 22 279
                                   tonnes                                   6 300               6 489                6 684
     83
      {'') Possibility of transfer to and from category 3 of up to 40% of the category to which the transfer is made.
     (**) Quantitative limits apply also to products declared for re-export outside the Community.
 ---pagebreak--- 11 /Nide 30                                             Euroopan yhteisöjen virallinen lehti                                                    135
             (') The following additional quantities may be exported to the Community by China :
                    Fabrics of category 2 below 115 cm in width                            tonnes            1993                1 331
                                                                                                             1994                1 358
                                                                                                             1 995               1 385
                    Fabrics of category 2 for medical gauze                               tonnes             1993                1 840
                    ( CN codes 5208 11 10 and 5208 21 10 )                                                   1994                1 877
                                                                                                             1995                1 914
             (2 ) For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments ( other than
                    babies' garments) of a maximum commercial size of 130 cm, for three garments whose commercial size exceeds 130 cm
                    may be applied for up to 5% of the quantitative limits.
             (■') These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                                    1993 :       562 000 pieces
                                                                    1994:        5S4 000 pieces
                                                                    1995:        608 000 pieces.
             ( 4 ) For products of category 5 (other than anoraks, windcheaters, waister jackets and the like) of fine animal hair, the
                    following sublimits apply whithin the quantitative limits established for category 5:
                                                                    199.5 :      140 000 pieces
                                                                    1994:        144 000 pieces
                                                                    1995 :       148 000 pieces.
              (5 ) These figures include the following quantities reserved for European industry for a period of 180 days each year:
                                                                    1993 :     1 000 000 pieces
                                                                    1994 :     1 040 000 pieces
                                                                    1995 :     1 082 000 pieces .
                    The following additional quantities of shorts ( CN codes 6203 41 90, 6203 42 90 , 6203 43 90 and 6203 49 50 ) may be
                    exported to the Community by China :
                                                                    1993 :       994 000 pieces
                                                                    1994 :     1 034 000 pieces
                                                                     1995 :    1 075 000 pieces.
              H These figures include the following quantities reserved for the European industry for a period of 180 davs each vear:
                                                                     1993 :      607 000 pieces
                                                                     1994 :      631 000 pieces
                                                                     1995 :      657 000 pieces .
              ( 7 ) These figures includc the following quantities reserved for European industry for n period of 180 days each year :
                                                                     199.i :   1 000 000 pieces
                                                                     1994 :    1 030 000 pieces
                                                                     1995 :    1 061 000 pieces .
              (s ) These figures include the following quantities reserved for European industry for a period of ISO days each year :
                                                                     1993 :      260 000 pieces
                                                                     1 994 :     270 000 pieces
                                                                     1995 :      281 000 pieces.
               (9) These figures include the following quantities reserved for European industry for a period of 180 davs each year:
                                                                     1993 :       839 000 pieces
                                                                     1994 :       8S 1 000 pieces
                                                                     1995 :       925 000 pieces.
            ( ) For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments {other than
                     babies' garments) of a maximum commercial size of 130 cm, for three garments whose commercial size exceeds 130 cm
                      may be applied for up to 5% of the quantitative limits.
            (") For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments (other than
                      babies' garments ) of a maximum commercial size of 130 cm , for three garments whose commercial size exceeds 130 cm
                      may be applied for up to 5% of the quantitative limits.
            ( i2 } These figures include the following quantities reserved for European industry for a period of 180 days each vear:
                                                                     1993 :       292 000 pieces
                                                                     1994:        307 000 pieces
                                                                     1995 :       322 000 pieces.
             ( n ) For the purpose of setting off exports against the agreed quantitative limits a conversion rate of five garments (other than
                      babies' garments) of a maximum commercial size of 130 cm , for three garments whose commercial size exceeds 130 cm
                      may be applied for up to 5 % of the quantitative limits.
             ( M ) These figures include the following quantities reserved for European industry for a period of ISO days each year:
                                                                     1993 ;     150 tonnes
                                                                     1994 :     158 tonnes
                                                                     1 995 :    165 tonnes .
 ---pagebreak--- 136                                    Euroopan yhteisöjen virallinen lehti                            11 /Nide 30
                                                   Appendix 3
                                            ANNEX TO PROTOCOL E
    (The product descriptions of the categories listed in this Annex are to be found in Annex I to the
                                                   Agreement)
                                                 OPT QUOTAS
                                      COMMUNITY QUANTlTATIVE LIMITS
           Category                      Unit                 1993              1994          1995
     4                     1 000 pieces                        200               215           231
     5                     1 000 pieces                        500               530           562
     6                     1 000  pieces                     1 800             1908         2 022
     7                     1 000  pieces                       500               530           562
     8 '                   1 000  pieces                     1200              1 254         1310
    15                     1 000  pieces                       400               424           449
    16                     1 000 pieces                        800               845           893
    18                     tonnes                              100               108           1 16
    21                     1 000 pieces                      1 500             1 613        1 733
    24                     1 000 pieces                        100               105           111
    26                     1 000 pieces                        900               968         1 040
    31                     1 000 pieces                     5 000             5 225         5 460
    73                     1 000 pieces                        200               215           231
    76                     tonnes                              800               860           925
    78                     tonnes                               50                52             55
    83                     tonnes                               50                52             55 '
                                                   Appendix 4
                                              Agreed Minute No 1
    In the context of the Agreement between the European Economic Community and the People's
    Republic of China on trade in textile and clothing products , initialled on 8 December 1992 , the
    Parties agreed that Article 6 of the Agreement does not preclude the Community, if the conditions
    are fulfilled, from applying the safeguard measures for one or more of its regions in conformity
    with the principles of the internal market.
    In such an event, China shall be informed in advance of the relevant provisions of Protocol A to
    the Agreement to be applied, as appropriate.
                    For the Government                                    For the Council
            of the People's Republic of China                      of the European Communities
 ---pagebreak--- Il /Nide 30                                  Euroopan yhteisöjen virallinen lehti                              137
                                                         Appendix 5
                                                   Agreed Minute No 2
            Notwithstanding Article 8 ( 1 ) of this Agreement, for imperative technical or administrative
            reasons or to find a solution to economic problems resulting from regional concentration of
            imports, or in order to combat circumvention and fraud of the provisions of this Agreement, the
            Community will establish for a limited period of time a specific management system in conformity
            with the principles of the internal market.
            However, if the Parties are unable to reach a satisfactory solution during the consultations
            provided for in Article 8 ( 3 ), China undertakes, if so requested by the Community, to respect
            temporary export limits for one or more regions of the Community. In such a case , these limits
            shall not preclude the importation into the region(s ) concerned of products which were shipped
            from China on the basis of export licences obtained before the date of formal notification to
            China by the Community about the introduction of the above limits.
            The Community shall inform China of the technical and administrative measures, such as defined
            in the attached note verbale, that need to be introduced by both Parties in order to implement the
            above paragraphs in conformity with the principles of the internal market.
                           For the Government                                   For the Council
                    of the People's Republic of China                   of the European Communities
                                                        Note verbale
            The Directorate-General tor External Relations of the Commission of the European Communities
            presents its compliments to the Mission of the People's Republic of China to the European
            Communities and has the honour to refer to the Agreement on textile products negotiated
            between the People's Republic of China and the Community applied since 1 January 1989 , as
            extended by the exchange of letters of 7 December 1992 .
            The Directorate-General wishes to inform the Mission of the People's Republic of China that the
            Community has decided to apply, starting from 1 January 1993 , the provisions of paragraph 1 of
            Agreed Minute No 2 to the exchange of letters initialled on 8 December 1992 . Consequently, the
            corresponding provisions of Articles 7 and 12 of Protocol A to the- Agreement shall also be
            applied as of the above date.
            The Directorate-General for External Relations avails itself of this opportunity to renew to the
            Mission of the People's Republic of China to the European Communities the assurance of its
            highest consideration .
 ---pagebreak--- 138                                Euroopan yhteisöjen virallinen lehti                                     li / Nide 30
                                                Appendix 6
                                           Agreed Minute No 3
    In the context of the Agreement between the European Economic Community and the People's
    Republic of China on trade in textile and clothing products, initialled in Brussels on 8 December
    1992, the Parties agreed that China shall endeavour not to deprive certain regions of the
    Community which have traditionally had relatively small shares of Community quotas of imports
    of products serving as inputs for their processing industry.
    The Community and China further agreed to hold consultations, should the need arise, in order to
    avert any problems which might occur in this respect.
    The Parties agreed that this Agreed Minute replaces the corresponding Agreed Minute of the
    Agreement on this subject.
                   For the Government                                 For the Council
           of the People's Republic of China                   of the European Communities
                                                 Appendix 7
                                           Agreed Minute No 4
    In the context of the Agreement between the European Economic Community and the People's
    Republic of China on trade in textile and clothing products, applied since 1 January 1989, as
    extended by the exchange of letters initialled on 8 December 1992, China agreed that, from the
    date of request for and pending the consultations referred to in Article 8 ( 3 ), it shall cooperate by
    not issuing export licences that would further aggravate the problems resulting from the regional
    concentration of direct imports into the Community .
                   For the Government                                 For the Council
            of the People's Republic of China                  of the European Communities
 ---pagebreak--- 1 l /Nide 30                                  Euroopan yhteisöjen virallinen lehti                             139
                                                      Exchange or notes
             The Mission of the People's Republic of China to the European Communities presents its
             compliments to the Directorate-General for External Relations of the Commission of the
             European Communities and has the honour to refer to the Agreement on textile products between
             the People's Republic of China and the Community applied since 1 January 1989 , as extended by
             the exchange of letters initialled on 8 December 1992.
             The Mission of the People's Republic of China wishes to confirm to the Directorate-General that
             whilst awaiting the completion of the necessary procedures for the conclusion and the coming into
             force of the extended Agreement, China is prepared to allow the provisions of the Agreement to
             apply de facto from 1 January 1993 . This is on the understanding that either Party may at any
             time terminate this de facto application of the extended Agreement provided that 120 days' notice
             is given .
             The Directorate-General for External Relations would be grateful if the Mission would confirm its
             Agreement to the foregoing.
             The Mission of the People's Republic of China to the European Communities avails itself of this
             opportunity to renew to the Directorate-General for External Relations the assurance of its
             highest consideration .
 ---pagebreak--- 140                                  Euroopan yhteisöjen virallinen lehti                             11 /Nide 30
                                                  Appendix 8
                                     Joint declaration on the Berlin Fair
    In the context of the Agreement between the European Economic Community and the People's
    Republic of China on trade in textile and clothing products, applied since 1 January 1989, and
    further extended by the exchange of letters initialled on 8 December 1992, the two Parties agreed
    that the following Berlin Fair quantities, that were included in the German regional quotas for
    1992 :
                          Category:    1                 317      tonnes
                                       2               1 338      tonnes
                                       2(a )             159      tonnes
                                       3                 196      tonnes
                                       3(a )              27      tonnes
                                       4              2 061       1 000   pieces
                                       5                 705      1 000   pieces
                                       6               1 689      1 000   pieces
                                       7                 302      1 000   pieces
                                       8                 992      1 000   pieces
                                       9                 294      tonnes
                                      10              2215        1 000   pairs
                                      12                 843      1 000   pairs
                                      13              3 192       1 000   pieces
                                      19              5 431       1 000   pieces
                                     20/39               372      tonnes
                                      21                 964      1 000 pieces
                                     22                  332      tonnes
                                     24                1 138      1 000 pieces
                                     32                  184      tonnes
                                      37                 567      tonnes
                                     37(a )              158      tonnes
    are made available for the years 1993 , 1994, 1995 on the understanding that such quantities may
    be used exclusively at European fairs and that they take definitively care of China's interests
    regarding any future allocation of quantities for fairs that could be decided by the Community.
    Flexibilities provided for in Article 5 of the Agreement will apply to the above categories .
                    For the Government                                  For the Council
            of the People's Republic of China                   of the European Communities
 ---pagebreak--- Il /Nide 30                                  Euroopan yhteisöjen virallinen lehti                                  141
                                                          Appendix 9
                                                    Agreed Minute No 5
            In the context of the settlement of the overshipment, which occurred in 1992 concerning the
            sublimit for cashmere pullovers in category 5, China undertakes to ensure improved regular
            supplies of cashmere raw materials in terms of qualities and prices to European producers of
            cashmere made-up products.
            The actual implementation of this undertaking as well as active action by China to combat fraud
            and transhipments of cashmere products will be taken into account by the European Community
            in defining the calendar and modalities for the resorption of quantities overshipped in 1992.
            As a first step in the resorption of the 1992 overshipments, whose magnitude will be determined
            on the basis of Community import statistics for 1992 , an annual deduction of 45 000 pieces has
            been agreed for the years 1993 , 1994 and 1995.
            Consultations will be held at the request of either Party to review trade developments on this
            subject.
                            For the Government                                  For the Council
                     of the People's Republic of China                   of the European Communities
                                                          Appendix 10
                                                    Agreed Minute No 6
            In the context of the Agreement between the European Economic Community and the People's
            Republic of China on trade in textile and clothing products, applied since 1 January 1989 , as
            extended by the exchange of letters initialled on 8 December 1992, the Parties agreed that by
            derogation to the provisions of Article 4 ( 1 ) of the Agreement, the quantitative limits provided for
             in Annex III in respect of products of category 33 cover all imports including products declared to
             be for re-export outside the Community. Exports of these products will consequently be subject to
             the normal double-checking system.
                            For the Government                                   For the Council
                     of the People's Republic of China                   of the European Communities
 ---pagebreak--- 142                                Euroopan yhteisöjen virallinen lehti                              11 /Nide 30
                                                Appendix 11
                                          Agreed Minute No 7
    In the context of the Agreement between the European Economic Community and the People's
    Republic of China on trade in textile and clothing products, applied since 1 January 1989 , as
    extended by the exchange of letters initialled on 8 December 1992, China undertakes to limit its
    exports to the European Community of surgical dressing (CN code 3005 90 31 ) to the following
    quantities:
                                         1993       3 200 tonnes
                                         1994       3 360 tonnes
                                         1995       3 528 tonnes .
    Exports of these products will be made subject to normal double-checking system provisions of
    the Agreement.
                   For the Government                                  For the Council
            of the People's Republic of China                  of the European Communities