CELEX: 
Language: en
Date: 1975-11-17 00:00:00
Title: Regulation (EEC) No 2992/75 of the Council of 10 November 1975 concluding the Agreement between the European Economic Community and the Republic of India on trade in textile products and laying down provisions for its application #Agreement between the European Economic Community and the Republic of India on trade in textile products

No L 297/ 8                         Official Journal of the European Communities                             17. 11.75
                                REGULATION (EEC) No 2992/75 OF THE COUNCIL
                                                  of 10 November 1975
               concluding the Agreement between the European Economic Community and the
               Republic of India on trade in textile products and laying down provisions for its
                                                        application
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                        together with a special consultation procedure
                                                                  enabling safeguard measures to be adopted where
                                                                  there is a risk of market disruption ; whereas, in
 Having regard to the Treaty establishing . the                   accordance with this procedure, India has
 European Economic Community, and in particular                   undertaken to apply voluntary restraint in respect of
 Article 113 thereof;
                                                                  its exports to certain Member States ; whereas the
                                                                  voluntary restraint in question will be administered
 Having regard to Council Regulation ( EEC ) No                   in accordance with the system of double checking
 1023/70 (*) of 25 May 1970 establishing a common                 provided for in the Agreement ;
 procedure for administering quantitative quotas , and
 in particular Article 2 thereof;                                Whereas it is therefore necessary to retain
                                                                 provisionally quantitative restrictions on imports of
 Having     regard    to    the   proposal     from    the       these products into the Member States concerned, to
 Commission ;                                                    suspend quantitative restrictions in the other
                                                                 Member States and subsequently to replace these
                                                                 various measures by liberalization measures which
 Whereas the Agreement negotiated between the                     will be uniform throughout the Community ;
 European Economic Community and the Republic of
 India on trade in textile products should be
 included ;                                                      Whereas products brought into the customs territory
                                                                 of the Community under the inward processing
                                                                 traffic system or temporary entry arrangements and
Whereas the Community is obliged under the                       re-exported from that territory without further
Agreement to permit the import of certain textile                processing or after undergoing working should not
products within quantitative limits to which India               be subject to the Community quantitative quotas or
 undertakes to adhere by applying voluntary restraint             to the voluntary restraint measures adopted in
in respect of its exports to the Community ; whereas             respect of exports to certain Member States,
it is therefore necessary to introduce Community
quantitative quotas, to fix the volume thereof for
 1975 , 1976 and 1977 and to establish the criteria for
                                                                 HAS ADOPTED THIS REGULATION :
their allocation, with account being taken of the
system of double checking provided for in the
Agreement ;
                                                                                         Article 1
Whereas in view of the considerable disparities in
the conditions to which imports of the products in               The Agreement between the European Economic
question into the Member States are currently                    Community and the Republic of India on trade in
subject, and in view of the particularly sensitive               textile products is hereby concluded on behalf of the
nature of the textile industry in the Community, the             Community.
standardization of these import conditions can only
be achieved by progressive stages ; whereas these
quotas should be allocated taking into account, in               The text of the Agreement is annexed to this
particular, the fact that the volumes admitted under             Regulation .
the present import conditions are being adapted by
progressive stages to market supply requirements ;
                                                                                         Article 2
Whereas the Agreement provides in respect of certain
other textile products for the suspension by the                The President of the Council shall notify the other
Community of the quantitative import restrictions                Contracting Party that, as regards the Community,
                                                                the procedures necessary for the entry into force of
(!) OJ No L 124, 8 . 6. 1970, p. 1 .                             the Agreement have been completed.
 ---pagebreak--- 17 . 11 . 75                            Official Journal of the European Communities                                     No L 297/9
                            Article 3                               from India shall be subject to Community
                                                                    quantitative quotas and the volumes of the quotas
1.     Imports into the Community of the textile                    for 1975 , 1976 and 1977 are shown for each of these
products set out below originating in and coming                    products :
                                                                                                   Volume
                      CCT                                                                    ( in 'metric tons)
                   heading No                        Description
                                                                                    1975            1976           1977
                   55.09              Other woven fabrics of cotton               34 940           37 390         40 000
                   of which
                ex 55.09              Woven fabrics of cotton other than
                                      unbleac hed or bleached                      3 500            3 750          4 000
                ex 61.02              Women's cotton shirts and blouses               954             954          1 014
                ex 62.02              Cotton household linen                       7 592            8 015          8 544
However the volume of the quotas fixed for 1975                     3.    Import authorizations shall be granted in
are reduced by the amount of imports affected in                    accordance with the system of double checking
that year before the entry into force of the                        defined in Annex V to the Agreement.
Agreement.
                                                                    4.    Products brought into the customs territory of
2. The quotas shall be allocated, in accordance                     the Community under the inward processing traffic
with the procedure laid down in Article 11 of                       system or temporary entry arrangements and re­
Regulation (EEC) No 1023/70, in such a way as to                    exported from that territory without further
ensure the expansion and orderly development of                     processing or after undergoing working shall not be
trade in textiles and to permit carryover and                       set off against the quotas provided for in paragraph 1 .
anticipation from year to year.
                                                                                                   Article 4
The allocation shall be made, however, on the basis
of the import volumes admitted on the conditions                     1.   Imports into the Community of the textile
currently applied in the Member States and shall                    products set out below originating in and coming
provide for annual rates of increase that are                       from India shall not be subject to quantitative
appreciably higher for the Member States whose                      restrictions except that for 1975 , 1976 and 1977
import volumes are relatively the lowest in such a                  imports into the Member States indicated on the
way as to adapt them by progressive stages to                       table below shall be limited to the quantities
market supply requirements.                                          indicated in the table .
                                                                                                             Quantities
         CCT
     heading No                         Description                 Member State
                                                                                           1975                 1976         1977
     55.08             Terry towelling and similar terry          United                   450                  481          515
                       fabrics, of cotton                         Kingdom             metric tons          metric tons   metric tons
ex 60.04               T -shirts                                  France              2 250 000            2 407 500     2 575990
                                                                                         units                units         units
ex 61.03               Men's cotton shirts                        United                663 960              710 437       760 167
                                                                  Kingdom                units                units         units
ex 61.05               Cotton handkerchiefs                       United              4 344 933            4 649 078     4 974 512
                                                                  Kingdom                dozen                dozen        dozen
 ---pagebreak--- No L 297/ 10                       Official Journal of the European Communities                                17. 11,75
However, the quantities fixed for the year 1975 shall            ( i ) cotton handloom fabrics of the cottage industry,
be reduced by the amount of imports effected in that                   containing not more than 5 °/o by weight of
year before the entry into force of the Agreement.                     manmade fibres, being fabrics which are both
                                                                       traditionally of the kind woven on handlooms
2. Import authorizations shall        be issued by the                 and actually woven on a loom for which the
competent authorities of the            Member States                  motive power is provided entirely by the
concerned in accordance with the       system of double                operators (that is where the three primary
checking defined in Annex V tp the    Agreement.                       movements of weaving namely shedding,
3.     Products introduced into the customs territory                  picking and beating, are induced by hand or
of the Community under the inward processing                           foot and no other source of power is used);
traffic system or temporary entry arrangements and
re-exported from that territory without further                ( ii) goods made up by the cottage industry from
processing or after undergoing working shall not be                    such cotton handloom fabrics ;
set off against the quantities provided for in
paragraph 1 .                                                ( iii ) traditional Indian folklore handicraft textile
                                                                       products cut, sewn or otherwise fabricated by
4.     The quantities provided for under paragraph 1                   hand in cottages which are units of the cottage
may be adapted in accordance with the procedure                        industry.
provided for in Article 11 of Regulation (EEC) No
1023 /70 .
                                                                                          Article 6
                        Article 5
Imports into the Community of the textile products           This Regulation shall enter into force on the third
referred to below, originating in and coming from            day following that of its publication in the Official
India and accompanied by a certificate issued and             Journal of the European Communities.
endorsed by the relevant Indian authorities in
accordance with Annex IV to the Agreement, shall             Articles 3 , 4 and 5 shall apply from the date of entry
not be subject to quantitative restrictions :                 into force of the Agreement.
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States .
              Done at Brussels, 10 November 1975 .
                                                                                 For the Council
                                                                                   The President
                                                                                  G. MARCORA
 ---documentbreak---   17. 11 . 75                         Official Journal of the European Communities                            No L 297/11
                                                        AGREEMENT
               between the European Economic Community and the Republic of India on trade in
                                                        textile products
               THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
               of the one part,
               THE GOVERNMENT OF THE REPUBLIC OF INDIA,
               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 India;
               HAVING regard to the provisions of the Arrangement regarding International Trade in
               Textiles (hereinafter referred to as the Geneva Arrangement) and especially Article 4 thereof;
               HAVE DECIDED , in a spirit of mutual cooperation and in accordance with the Geneva
               Arrangement, to conclude this Agreement and to this end have designated as Plenipotentiaries :
               THE COUNCIL OF THE EUROPEAN COMMUNITIES :
               THE GOVERNMENT OF THE REPUBLIC OF INDIA :
               WHO HAVE AGREED AS FOLLOWS :
                         Article 1                                  shares set out in Annex I not taken up by a Member
                                                                   State of the Community may be re-allocated to
                                                                    another Member State within the limits decided by
 1 . The Parties recognize and confirm that, subject               the Community in accordance with the procedures in
to the provisions of this Agreement and without                    force in the Community. The Community undertakes
prejudice to their rights and obligations under the                to respond within four weeks of its receipt to any
General Agreement on Tariffs and Trade, the                        request made by India for such reallocation. It is
conduct of their mutual trade in textiles shall be                 understood that any reallocation so effected would
governed      by   the    provisions     of   the    Geneva        not need to be confined within any limits set in
Arrangement.                                                       flexibility provisions established elsewhere in this
                                                                   Agreement.
2. This Agreement shall apply to trade in those
categories of textile products, originating in and
dispatched from India, which are listed in Annexes I
and II hereto and to those referred to in Article 5 .                                     Article 2
3 . India agrees to establish quantitative limits on
exports to the Community in accordance with the                    1 . The Community undertakes, in respect of the
schedule set out in Annex I. Quantities of the quota               categories of textile products to which this
 ---pagebreak--- No L 297/ 12                      Official Journal of the European Communities                               17. 11 . 75
Agreement applies and subject to the satisfactory                                       Article 4
operation of this Agreement, not to introduce new
quantitative restrictions, to suspend the application
of any at present in force and to refrain from              1.        The following Indian textile products shall,
invoking the provisions of Article 3 of the Geneva          subject to the conditions indicated hereafter, be
Arrangement provided that exports to the                    admitted into the Community without quantitative
Community of such textile products originating in           limit :
and dispatched from India do not exceed the
quantitative limits established under the provisions
of this Agreement.                                              ( i) cotton handloom fabrics of the cottage industry,
                                                                     containing not more than 5 °/o by weight of
2.    The Indian Government undertakes to take the                   man-made fibres, being fabrics which are both
appropriate measures to ensure that the quantitative                 traditionally of the kind woven on handlooms
limits established under this Agreement are not                      and actually woven on a loom for which the
exceeded .                                                           motive power is provided entirely by the
                                                                     operators (that is where the three primary
3.    The Community shall not object to the                          movements of weaving, namely shedding,
aforementioned quantitative limits being exceeded in                 picking and beating, are induced by hand or
the event of additional demand developing on the                     foot and no other source of power is used);
market of the Community, on the understanding that
the additional quantities shall be fixed by common            ( ii ) goods made up by the cottage industry from
agreement between both Parties.                                      such cotton handloom fabrics ;
4.    Both    Parties  undertake    to    cooperate  in
implementing the measures necessary for the purpose         ( iii) traditional Indian folklore handicraft textile
of this Article .                                                    products cut, sewn or otherwise fabricated by
                                                                     hand in cottages which are units of the cottage
                                                                     industry.
                        Article 3
                                                            2.        Admission into the Community of these
1 . Imports into the Community of those textile             products without quantitative limit shall be subject
products to which this Agreement applies which are          to the satisfactory operation of agreed arrangements
for immediate re-export or for inward processing            for certification .
and subsequent re-export outside the Community
shall not be subject to quantitative limits established
under this Agreement, provided they are entered as
such under an administrative system of control in                                       Article 5
force for this purpose within the Community.
2 . In any case where Community authorities                 1 . Both Parties agree to enter promptly into
ascertain that imports described in paragraph 1 have        consultations with each other, at the request of
been retained for consumption within the                    either and in conformity with the provisions of the
Community, the latter will notify the Government of         Geneva Arrangement, on any matter concerning their
India on a quarterly basis of the amounts involved .        trade in textiles and in particular on any problems
India shall in such cases and at the request of the         arising from the application of this Agreement.
Community, charge such amounts against the                  Consultations held under the provisions of this
quantitative limit or limits in question for the            Article shall be approached by both Parties in a
current Agreement year or for the next following            spirit of compromise and with a view to the
Agreement year.                                             conciliation of differences existing between them.
3.    In any case where the competent authorities
within the Community ascertain under an                     2.        The Community may, in particular, whenever
administrative system of control in force that              conditions in its market give rise to real risks of
imports of textile products to which this Agreement         market disruption, request consultations with India
applies have been charged against quantitative limits       in accordance with the procedures set out in
established under this Agreement but subsequently           paragraph 5 with regard to the products referred to
re-exported outside the Community, the competent            below and to those listed in Annex II.
authority concerned will inform the Indian
authorities of the quantities involved and authorize
imports of the same quantities which shall not be           3.        If, in the opinion of the Community, imports
charged to the quantitative limits under the                into the Community of textile products of fibres
Agreement.                                                  other than cotton in direct competition with those
 ---pagebreak---  17. 11 . 75                          Official Journal of the European Communities                                 No L 297/ 13
 listed in Annex I and II cause real risks of market                            and bleached) from any other category
 disruption,        the     Community       may      request                   shown in Annex I, provided such
 consultations with India under identical conditions                           transfers do not exceed 10 % of the
 to those specified in paragraph 5 .                                           quantitative limit for the category or
                                                                                subcategory into which they are made;
 4.    If an excessive concentration of trade in any
  specific product within the categories listed in                       ( ii) between the categories :
 Annex I causes a real risk of market disruption in
 respect of that product, the Community may request                           — ex 61.02 (Nimexe No 87) (women's
 consultations with India under identical conditions                                            shirts and blouses, of cotton)
 to those specified in paragraph 5 .
                                                                              — ex 62.02 (Nimexe Nos 11 , 41 , 43 , 47,
                                                                                               71       and     73 )    (cotton
5 . In those cases defined in paragraphs 2, 3 and 4,                                           household linens),
India shall limit, in accordance with the
 Community's request, exports of the products or
categories of products in question, destined for the                           provided such transfers do not exceed
 Community market or for its market in one or more                             10 °/o of the quantitative limit for the
of its Member States, pending a mutually satisfactory                          category into which they are made ;
conclusion to the said consultations, at a level
indicated by the Community which, at an annual                          (iii) from category 55.09 (other woven fabrics
rate, shall not be lower than 107 °/o of the imports                           of cotton) into
recorded for the said product or category thereof
during the 12 months ending three months before
that in which the request for consultation was made.                           ( aa) — subcategory ex 55.09 (cotton
                                                                                         fabrics, other than grey and
                                                                                         bleached)
6.     Consultations shall be held at the request of
India     in     order  to   review   the   need   for  the
                                                                                     — category ex 62.02 (Nimexe Nos
maintenance or modification of any quantitative                                          11 , 41 , 43 , 47, 71 and 73 ) (cotton
limit established under this Article, whenever market                                    household linens),
conditions which led to the establishment of such
quantitative limit no longer prevail .                                               provided such transfers do not
                                                                                     exceed 7 °/o of the quantitative limit
                                                                                     for the category or subcategory into
                           Article 6                                                 which they are made;
If, having regard to the provisions of the Geneva                              (bb ) category ex 61.02 (Nimexe No 87)
Arrangement, India considers that as a result of the                                 (women's shirts and blouses of
quantitative limits established under this Agreement,                                cotton) provided that such transfers
it is being placed in an inequitable position as                                     do     not     exceed     5 °/o  of    the
compared with a third country, India may request                                     quantitative limit for the category
consultations with the Community with a view to                                      into which they are made.
taking appropriate action consistent with both
Parties' international rights and obligations .                 2 . Portions of any quantitative limit established
                                                                under this Agreement which are not used during any
                                                                Agreement year may be carried over and added to
                           Article 7                            the corresponding quantitative limit in the following
                                                                Agreement year, within a limit of 10 °/o of the latter.
1 . ( a) Within any one Agreement year, unused
          portions of quantitative limits established           3.    Within      a   limit   of    10 °/o   of each    of the
          under this Agreement may be transferred to            quantitative limits established under this Agreement,
          another quantitative limit so established,            advance deliveries shall be authorized from the
          under the conditions set out below .                  corresponding quantitative limit established for the
                                                                following Agreement year. Amounts delivered in
     (b) Transfers may only be effected under this              advance shall be deducted from the quantitative
          Agreement as follows :                                limits for the products in question for the following
                                                                Agreement year.
           (i ) into category 55.09 (other woven fabrics
                of cotton ) and, therein, into subcategory      4. The flexibility provisions set out in paragraphs
                ex 55.09 (cotton fabrics other than grey        1 , 2 and 3 shall not, in any given Agreement year,
 ---pagebreak--- No L 297/ 14                       Official Journal of the European Communities                                  17 . 11.75
result in a quantitative limit for any category being        difficulties regarding the maintenance of existing
exceeded by more than the following percentage of            commercial relations between importers in the
the quantitative limit for that category for that            Community and their suppliers in India, the Parties
Agreement year:                                              agree to consult together in accordance with the
                                                             procedures set out in Article 5 .
    55.09 (other woven fabrics of cotton)         20 °/o
ex 55.09 (cotton fabrics, other than grey                                              Article 12
           or bleached)                           20 %
                                                             Without prejudice to the other provisions of this
ex 61.02 (Nimexe No 87) (women's shirts and                  Agreement, India agrees that quantitative restrictions
           blouses of cotton)                     15 °/«     with regard to imports into Ireland of the following
ex 62.02 (Nimexe Nos 11 , 41 , 43 , 47, 71 , 73 )            textile products from India may be maintained until
           (cotton household linens )             20 °/o     30 June 1977 at the latest:
5 . The flexibility provisions set out in
paragraphs 1 , 2 and 3 may only be applied by India                CCT
                                                                                                 Description
                                                                heading No
following written notification to the Community by
the Indian authorities .
                                                                   55.05         Cotton yarn, not put up for retail sale
                        Article 8
                                                                   55.06         Cotton yarn, put up for retail sale
India shall endeavour to ensure that exports of all                55.07         Cotton gauze
textile products for which quantitative limits may be
established under this Agreement are spaced out as
evenly as possible over each of the Agreement years,
due account being taken, in particular, of seasonal                                    Article 13
factors .
                                                             This Agreement shall apply to the territories where
                        Article 9
                                                             the Treaty establishing the European Economic
                                                             Community applies, on the conditions established in
The two Parties agree to exchange all useful                 the said Treaty, and to the territories where the
information concerning their mutual trade in textiles        Constitution of the Republic of India applies.
in order to ensure the successful implementation of
this Agreement.                                                                        Article 14
                                                             1.     This Agreement shall enter into force on the
                       Article 10
                                                             first day of the month following the date on which
1.     The Parties agree that the quantitative limits        the    Parties    have    notified   each     other   of   the
established under this Agreement shall be managed            completion of the procedures necessary for the
under a system of double checking, the details of             purpose (1 ). It shall remain in force until 31 December
which are set out in Annex V.                                1977.
2. India therefore agrees to. furnish the                    2.     This Agreement shall apply with effect from
Community with precise statistical information, on a          1 January 1975 .
quarterly basis, of all export authorizations issued by      3 . Either Party may at any time propose
the Indian authorities for all categories of textile         modifications to this Agreement or denounce it
exports to the Community to which this Agreement             provided that notice is given at least 120 days before
applies .                                                    the expiry of any 12-month period; in the latter
3.     The Community will likewise forward to the            event the Agreement will come to an end at the
Indian authorities, on a quarterly basis, precise            expiry of the said 12-month period.
statistical information of imports of such products          4. The Annexes to this Agreement shall form an
into the Community.                                          integral part thereof.
                       Article 1 1                                                     Article 15
1.     Both Parties shall take all possible measures to      This Agreement shall be drawn up in two copies in
ensure that traditional channels and methods of              the Danish, Dutch, English, French, German and
trade between the Community and India are                    Italian languages, each of these texts being equally
maintained.                                                  authentic.
2. Should the Community inform India that the                (*) The date of entry into force will be published in the
application of this Agreement has given rise to                  Official Journal of the European Communities.
 ---pagebreak--- 17 . 11.75                           Official Journal of the European Communities                                 No L 297/ 15
                                                          ANNEX I
           Products for which India will exercise restraint towards the whole Community from the entry
                                                into force of this Agreement
           The Community hereby notifies India that the quantitative limits for the textile products listed
           below will be allocated between the Member States as follows :
                                                                             ^        Quantitative limits
                   Products category                                                   (in metric tons)
                    or subcategory                    Member State
                                                                               1975          1976          1977
           55.09                                  Germany                      4 590        5 512          6 412
           Other woven fabrics
                                                  France                       3 836        4 480          5 221
           of cotton
                                                  Italy                        1 000        1300           1 690
                                                  Benelux                      1687         2 025          2 355
                                                  United Kingdom              22 825       22 939         23 054
                                                  Ireland                        136           163           195
                                                  Denmark                        866           971         1 073
                                                  EEC                         34 940       37 390         40 000
           of which                               Germany                        343           419           498
           ex 55.09
                                                  France                         366           432           502
           Cotton fabrics
           other than grey or                     Italy                          219           267           318
           bleached
                                                  Benelux                        273           322           360
                                                  United Kingdom               1 810        1 819          1 828
                                                  Ireland                         70            70            71
                                                  Denmark                        419           421           423
                                                  EEC                          3 500        3 750          4 000
           ex 61.02                               Germany                        250           250           268
           ( Nimexe No 87)                        France                         115           115           128
           Women's shirts and
           blouses of cotton                      Italy                          130           130           139
                                                  Benelux                        148           148           150
                                                  United Kingdom                 122           122           140
                                                  Ireland                           5             5             5
                                                  Denmark                        184           184           184
           l                                      EEC                            954           954         1 014
           ex 62.02                               Germany                      2 291        2 556          2 789
           ( Nimexe Nos 11 ,                      France                         138           207           310
           41 , 43, 47, 71 and 73 )
           Cotton household                       Italy                          197           256           333
           linens
                                                  Benelux                        292           315           400
                                                  United Kingdom               4 008        4 008          4 028
                                                  Ireland                           9            13           21
                                                  Denmark                        657           660           663
                                                  EEC                          7 592         8 015         8 544
 ---pagebreak--- No L 297/ 16                          Official Journal of the European Communities                                      17. 11 . 75
                                                             ANNEX 11
                     Products subject to special consultation procedures under Article 5 of the Agreement
                            CCT heading No                                            Description
                 55.08                                      Terry towelling and similar terry fabrics, of cotton
             ex 60.04                                       T-shirts
             ex 61.03 ( Nimexe No 15 )                       Men's shirts of cotton
             ex 61.05 (Nimexe No 30 )                        Cotton handkerchiefs
                                                            ANNEX III
             1 . In accordance with Article 5 of the Agreement, consultations have been held between
                 the Parties regarding imports from India into the Community of the textile products listed
                 below.
             2. As agreed in the consultations mentioned above, India shall limit exports of the products
                 listed below to the regions of the Community market and to the quantitative limits
                 indicated.
                                                                     Community region                Annual quantity
                         CCT                                               to which
                      heading No                Description               restriction                  (with effect
                                                                          is applied              from 1 January 1975 )
                     55.08             Terry towelling and           United Kingdom                 450 metric tons
                                       similar terry fabrics, of
                                       cotton
                 ex 60.04              T-shirts                      France                  2 250 000 units
                 ex 61.03              Men's shirts of cotton        United Kingdom            663 960 units
                 ( Nimexe No 15 )
                 ex 61.05              Cotton handkerchiefs          United Kingdom          4 344 933 dozen
                 ( Nimexe No 30)
             3. Should the quantitative limits referred to above remain in force for a further period or
                 periods of 12 months, the level for that period shall not be lower than the level specified
                 for the preceding 12-month period, increased by not less than 7 %>.
 ---pagebreak--- 17 . 11.75                            Official Journal of the European Communities                               No L 297/ 17
                                                          ANNEX IV
                                           Handloom and textile handicraft articles
            1 . In accordance with Article 12 (3 ) of the Geneva Arrangement, the Community and India
                 have agreed, in Article 4 of the Agreement that, subject to certain conditions, Indian
                 exports of certain handloom and textile handicraft products would be admitted into the
                 Community without quantitative limit. The conditions set out in Article 4 (2) of the
                 Agreement specify that admission of such products into the Community without quantitative
                 limit shall be subject to the satisfactory operation of agreed arrangements for certification.
            2. The Community and India hereby agree that in carrying out the provisions of Article 4 of
                 the Agreement the following form of certificate shall be used.
                 'Certificate in regard to cotton handloom fabrics and products thereof
                Name and address of manufacturer,
                Name and address of exporter,
                Name and address of importer within the Community,
                Description of goods,
                Quantity (metric tons),
                Name of ship 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 handlooms 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 and no
                       other source of power is used);
                  (ii) goods made up by the cottage industry from such cotton handloom fabrics ;
                (iii) traditional Indian folklore handicraft textile products cut, sewn or otherwise fabricated
                       by hand in cottages which are units of the cottage industry .
                                                                                        Signed                 '
           3 . The bodies which shall be authorized to issue the above certificates are the Textile
                Commissioner in Bombay, or one of his branch offices in Ahmedabad, Amritsar, Calcutta,
                Coimbatore, Kanpur and Madras.
           4. In addition, such descriptive certificate shall be endorsed by a Government agency to the
                effect that the consignment is approved for export, without any quantitative ceilings, as
                provided for in the Agreement and in the Geneva Arrangement.
 ---pagebreak--- No L 297/ 18                         Official Journal of the European Communities                                17 . 11.75
                                                         ANNEX V
                                                  System of double checking
             As agreed between the Parties in Article 10 of the Agreement, the administration of textile
             imports from India 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 within the Community will, automatically and without delay, accept
             imports of textile products on submission of the importer's application together with the
             original export licence. The competent authorities within the Community shall be entitled to
             require the presentation of an export licence in respect of goods originating in India of the
             categories shown in Annex I and (in any case where the provisions of Article 5 have been
             invoked) of Annex II. These export licences wjll be issxjed by the Indian authorities up to the
             total amount of the agreed ceilings.
             The export licences issued by the Indian 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 weight (in kilogrammes or metric tons) and value,
             6. category and description of product,
             7. the issue of a certificate by the Indian authorities showing that the quantity has been debited
                  against the agreed ceiling for exports to the Community or, where appropriate, is for
                  immediate re-export or for inward-processing and subsequent re-export outside the
                  Community.
              The competent authorities within the Community will not raise difficulties in the event of a
              discrepancy between the weight indicated in the export licence and the shipment or import
              weight provided it is within reasonable limits, while the Indian authorities, for their part, will
              endeavour to keep any discrepancies to a minimum.
              In the event of total or partial withdrawal of an export licence, the Indian authorities will
              notify the competent authorities within the Community of such total or partial withdrawal.
              The competent authorities within the Community will take the appropriate measures in
              accordance with their existing administrative provisions .
              The Indian authorities will forward to the competent authorities within the Community, via
              the embassies of the Member States of the Community and directly to the Commission,
              quarterly returns showing the total net weight in metric tons covered by the export licences
              issued against the quantitative limits for exports to the Community, as well as the allocation
              of these export licences amongst the Member States of the Community, for all categories of
              textile exports to the Community subject to quantitative limits under this Agreement.
 ---pagebreak--- 17 . 11.75                        Official Journal of the European Communities                             No L 297/ 19
                                                     ANNEX VI
                                                  Conversion factors
           In the course of negotiating the Agreement, it was noted that restrictions: previously in force
           in one Member State had been expressed in square yards, whereas under the Agreement metric
           weight units are used for the Community as a whole. It was further noted that in order to
           arrive at base levels for quantitative limits in the new Agreement the relationship between
           square yards and metric tons had been directly derived from customs statistics relating to
           imports of the products in question from India.
           The Indian delegation expressed concern lest, nevertheless, the effect of this change might
           prove to be restrictive in terms of the trade opportunities provided. For the avoidance of
           doubt, it was confirmed on behalf of the Community that the change of unit of measurement
           was in no way intended to have this effect.
           It was further agreed that for a transitional period of two years ( 1975 and 1976) the Customs
           authorities of the Member State concerned (the United Kingdom) would maintain a running
           check on both the tonnage and square yardage of imports from India and that if during this
           transitional period the square yard equivalent of the quantitative limits expressed in metric
           tons was not reached, additional imports would be accepted to a level not exceeding the
            square yard equivalent derived as indicated above. In case a new ratio emerges by the end of
            1976, the quantitative limit for 1977, expressed in metric tons, will be fixed on the basis of
           the new ratio and appropriate growth factor.
 ---pagebreak--- No L 297/20                           Official Journal of the European Communities                             17. 11 . 75
                                                          ANNEX VII
                                         Exchange of letters on cotton household linens
            Sir,
            In concluding the negotiations held between the Government of India and the European
            Economic Community which have led this day to the signing of an Agreement regarding the
            trade in textile products, I have the honour to confirm the following record of understanding:
                  In the view of the Indian delegation the quantitative limits for the products falling within
                  category ex 62.02 (cotton household linens) for the years 1976 and 1977, as shown in
                  Annex I, did not take fully into account the potential of Indian exports to the Community
                  market.
                  A review will be held, at the request of India, in order to assess the position and to
                  determine, on a mutually agreed basis, whether and to what extent an upward revision of
                  the quantitative limits in question should be made.
            I should be grateful for your confirmation that the above correctly represents our understanding
            in the matter.
            Please accept, Sir, the assurances of my highest consideration.
                                                                  For the Government of the Republic of India.
            Sir,
            I have the honour to refer to your letter of today's date in the following terms :
                 'In concluding the negotiations held between the Government of India and the European
                 Economic Community which have led this day to the signing of an Agreement regarding
                 the trade in textile products, I have the honour to confirm the following record of
                 understanding:
                     In the view of the Indian delegation the quantitative limits for the products falling
                     within category ex 62.02 (cotton household linens) for the years 1976 and 1977, as
                     shown in Annex I, did not take fully into account the potential of Indian exports to
                     the Community market.
                     A review will be held, at the request of India, in order to assess the position and to
                     determine, on a mutually agreed basis, whether and to what extent an upward revision
                     of the quantitative limits in question should be made.
                 I should be grateful for your confirmation that the above correctly represents our
                 understanding in the matter.'
           I confirm that this correctly sets out our understanding in the matter.
           Please accept, Sirj the assurances of my highest consideration.
                                                               For the Council of the European Communities.