CELEX: 51975PC0377
Language: en
Date: 1975-07-18
Title: Proposal for a COUNCIL REGULATION concluding an Agreement between the European Economic Community and the Republic of India on trade in textile products and laying down provisions for its application (submitted to the Council by the Commission)

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COM (75) 377
Vol. 1975/0150
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 ---pagebreak--- COMMISSION OF THE EUROHBAN CGMMUMT1ES
                                       I
                                       i
                                               COM(75)377 final.
                                               Brussels , 18 July 1975
                                  Proposal for a
                                COUNCIL 'REGULATION
                  concluding an Agreement "between the European
                  Economic Community and the Republic of India
                  on trade in textile products and laying down
                          provisions for its application
                  ( submitted to the Council by the Commission )
     CQM(75 ) 377 final .
 ---pagebreak---                                  EXPLAITATORY MÎORAEDUM
1.       By a Decision of -15 October 1974 "the Council authorized the Commission
to open negotiations with India on behalf €bxr !theC eonc&ucioii       "   "      ' \ cr
of an agreement on trade in textile products .          This agreement negotiated
under Article 4 of the Arrangement Regarding International Trade in Textiles
will take over from the Agreement concluded in 1970 on the "basis of the
earlier long-Term Arrangement Regarding International Trade in Cotton
                                                                               t
Textiles .         The provisions of the 1970 Agreement have been maintained in
force de facto by mutual agreement .              '-1
2.       In accordance with the Decision referred to above and in oonsultation
with the Article 113 Committee , the Commission held negotiations with India
during November 1974 and January and April 1975 *                    -
These negotiations resulted in a draft agreement being drawn up , '       It
provides in particular for;
    ( i ) voluntary restraint to keep exports to the Community of certain
            cotton products intended for domestic consumption at agreed levels ;
  ( ii ) in retr.yn , the suspension by the Community of the quantitative
            restrictions in force in the Member States on the relevant products
            and its agreement not to invoke the safeguard provisions of the
            Multifibres Arrangement provided that the agreed ceilings are adhered
            to :
          ■   .            -V   r  .v : -,   ,
( iii ) the adoption of a "consultation clause" enabling the Community , where
            there is a real risk of disturbance of the market in certain of the
            products in question , to enter into consultations with India on agreed
            conditions with a view to arriving at mutually acceptable solutions .
The Heads of Delegation , satisfied that this draft agreement reflected the
outcome of the negotiations , initialled the text on 5 June . .
 ---pagebreak---  3.    In view of the fact that the draft agreement fixes Community voluntary
 restraint ceilings for 1975 » 197 6 and 1977 » it is necessary to establish
 the criteria to be applied in allocating these Community ceilings .        This
 allocation willVta ortabliohcd' in accordance with the procedure laid dotvn
 Article 11 of Regulation No 1023/70 since the ceilings are administered
 on the basis of a system of double checking , the instrument in question
being a voluntary restraint agreement .      The exporting country is notified
 of the allocation and issues export licences certifying that the quantities
 involved have been set off against the ceilings , and the Community auto­
matically accepts the imports on presentation of these export licences .
The allocation criteria referred to ebove are those that were followed in
the preparatory work carried out in the Council for the adoption of the
decisions on the opening of bilateral negotiations under the Arrangement
Regarding International Trade in Textiles .      The allocation^" will therefore
be based on these criteria and in particular on the results of the work
already done .
In addition , this agreement also establishes ceilings in respect of certain
Member States .
4.    The Commission considers that the draft agreement constitutes an
acceptable result for the Community .      It propooee to ; the Council the
co-palus ion. of uhis a^ree^ent- ^nd ths adoption of the: provicionn &r its
application by . the adoption of the Regulation , the draft of which ic
annexed .
  This allocation will be the subject of a separate regulation to be adopted
  by the Commission , likewise on the basis of Regulation lTo 1023/?0 .
 ---pagebreak---                             PROPOSAL FOR A COUNCIL REGULATION
              concluding an Agreement between the European
              Economic Community and the Republic of India-1 . :
              on trade in textile products- and laying down
              provisions for its application
                               ' - ;    _ ; 'ϊ. · ·/, ·    :   · · . ; . ο "· ·■ ■ · .                ·   -      ·· .
THE COUNCIL OP THE EUROPEAN COI-HIUIJITIES . 7 "                             ' '       ^                              '
                                                                                               '•           . • i
Having regard to the Treaty establishing the European Economic Community .
end in prrticular Article 113 thereof ;
                                             :    ...   ..   ■                      :      ■  * "■>     .             i
Having regard to Council Regulation (EEC ) No 1023/70 of 25 May 1970
establishing a common procedure for administering quantitative quotas , and
in particular Article 2 thereof ;
Having regard to the proposal from the Commission ;                                       ~       . c- !
Whereas the Agreement on trade in textile products negotiated between the
European Economic Community and the Republic of India should be concluded
and provisions for its application laid down ;                            ^            ^
Whereas the Community is obliged under the Agreement to permit the
importation of certain textile products within quantitative limits which
India undertakes to adhere to by applying voluntary restraint in respect
of its exports to the Community ;                                   "             '     ?
Whereas 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 their allocation , with account being taken of the system
of double checking provided for in the Agreement ;                                . r        "
                ■ ;• . . ..  .         i 3-
% No L 124 , 8.6.1970.
 ---pagebreak--- Whereas in view of the considerable disparities in the conditions to which
imports of the products in question into the Member States are currently
subject , and given the particularly sensitive nature of the textile
industry in the Community , the standardization of these import conditions
c en be achieved only progressively ;  whereas the main criterion for the
allocation of these Community quantitative quotas should be that the
volumes admitted under the present import conditions should be progressively
adapted to market supply requirements ;
Whereas the Agreement provides in respect of certain other textile products
for the suspension by the Community of the quantitative restrictions on
imports , together with a special consultation procedure enabling safeguard
measures to be adopted where there is a risk of market disruption ;   whereas ,
in accordance with this procedure , India has undertaken to apply voluntary
restraint in respect of its exports to certain Member States ?
whereas the voluntary restraint in question will be administered in
accordance with the system of double checking provided for in the Agreement ;
Whereas it is therefore necessary to provide for the provisional retention
of quantitative restrictions on imports of these produces into the Member
States concerned , the suspension of quantitative restrictions in the other
Member Ste,tes and the subsequent replacement of these various measures by
uniform liberalisation measures applicable throughout the Community
Whereas products brought into the customs territory of the Community under
the inward processing traffic system or temporary entry arrangements and
re-exported from that territory without further processing or after under­
going working should not be set off against the Community quantitative
quotas or the voluntary restraint measures adopted in respect of exports
to certain Member States ;
 ---pagebreak--- HAS ADOPTED THIS REGULATION : i . • :•           ■.          L. r <     . 'i ; ' ? .       '
                                       - s •              ■'      r'    y        ' ' " i ' - -• 1 ' • ■ ■ -■      °
                                     Article 1
The Agreement "between the European Economic Conmunity and the Republic of
India on trade in textile products , the text of which is set out in Annex I
to this Regulation,, is hereby concluded on behalf of the Community.
                                    Article 2
The President of the Council is hereby authorized to designate the person
enpowered to sign the Agreement and to - confer on hia the powers he requires
to enter into an undertaking on behalf of the Co:3nunity.
                                    Article 3
1.   Imports into the Coniaunity of the textile products on the list in
Annex II originating in and coining fron India shall be subject to Conmunity
quantitative quotas .            :        '            .     ,      • •                                        • :i
2.   The volumes of the quotas for 1975 » 1976 and 1977 are fixed in the list
referred to in paragraph 1 . .               . L         . .
     However, the volumes of theaquotas fixed for 1975 are reduced by the aaiount
of imports effected in that year before the entry into force of the Agreement .
3.   The quotas shall be allocated , in accordance with the procedure laid . •
down in Article 11 of Regulation (EEC ) No . 1023/70, in such a way as to
ensure the expansion afid orderly development of trade in textiles end to
permit carryover and carryforward from year to year .
                                              -,                     '                                      '■     -H-Ï
The allocation shall be uade , however , on the basis of the import volumes
admitted on the conditions currently applied in the lieraber States and >
                    • , .         " f     ".        ..
shall provide for annual rates of increase that are appreciably higher for
the Member States whose import voluaes are relatively the lowest so as to
adapt thea progressively to market supply requirements .                                        '               . , ,,
 ---pagebreak--- 4.      Import authorizations ehall be granted in . accordance with the system
of double checking defined in the Agreement .
                                                    r  • • t • r -v /
5»      Products "brought into the customs tomtory of the Community under the
inward processing traffic - system or temporary entry arrangements and            *-
re-exported ; froa that territory without further processing or after under­
going working shall not be . set off against the quotas provided for in
paragraph 1 .
                                                      Article 4
l ,3 "' Without prejudice to the provisions of Article 5 » imports into the
Community of the textile products in Annex III originating in and coming
from India ehall not be subject to quantitative restrictions .
                                                        • . 1 •
                                                    Article 5
         ■ :      v;J' r:..    . ir i                                         ' '
1 . 'For the years 1975 ? 1976 and 1977 » imports into the Member States indicated
in the list in Annex III of the textilicproducts referred to in Artiole 4 shall
be limited to the volumes indicated in the said list .
        However , the volumes of quantitative restrictions fixed for the year
1975 shall be reduced by the amount of imports effected in that year before the
entry into force of the Agreement .
2.      Import authorisations shall be issued by the competent authorities of the
MAcber States concerned in accordance with the system of double checking defined
in the Agreement .          ';                          '* x
                         ,7           z r:< 'o ■' >       . r..'      -.v ■ ■
3.      Products introduced into the customs territory 6f the Community under
inward processing rules or teaporary admission rules and reexported outside
that territory in the same state or aft br further processing shall not be
counted against the quantitative restrictions provided for in paragraph 1 . ,
4»      The volumes 'of quantitative restrictions provided for under paragraph 1 .
may be adapted in accordance with the procedure provided for in Article 11
of Regulation (EEC) No. 1023/70.
 ---pagebreak---                                      Article o
 Imports into the Coraaunity of the textile products referred to below,
originating in and coming frou India and accompanied by a certificate
 issued and endorsed by the relevant Indian authorities in accordance with
the provisions of the Agreement , shall not be subject to quantitative
restrictions :
      ( i ) cotton handloo:i fabrics of the cottage industry containing not
            nore than 5$ by ifeight of man lade fibesj being fabrics which are
            both traditionally of the kind woven on handloo^s and actually
            woven on a looa 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 poT.:er is used)}
    ( ii ) goods aade^-up by the cottage industry fro:a such cotton handloom
            fabrics ?
      iii   traditional Indian folklore handicraft textile products cut , sown
            or otherwise fabricated by hand in cottages which are units of the
            cottage industry .
                                      Article 7
1.     This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Coixjunities .
2.     Articles 3 to 6 inclusive shall apply fron the date of entry into
foroe of the Agreeaent .
This Regulation shall be binding in its entirety and directly applicable
in all ilenber States .
Done At Brussels ,                                             For the Council
                                                                The Président
 ---pagebreak---                  AGREEMENT BETWEEN
          THE EUROPEAN ECONOMIC COMMUNITY
        .    AND THE REPUBLIC OF INDIA
           ON TRADE OF TEXTILE PRODUCTS
( REFERRED TO IN ARTICLE 1 OF THE REGULATION )
 ---pagebreak---                                                           ANNEX I
The CouQoil of the European Communities
                              of the one part .
The Government of the Republio of India of the other part .
Desiring to ensure the orderly and equitable development of trade
in textiles between the European Economic Community, hereinafter
called "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 its Article 4 ,
Eave decided, in a spirit of mutual co-operation and in conformity
with the said Geneva Arrangement , to conclude this Agreement and to
this end have designated as their Plenipotentiaries >
THE COUNCIL OP THE EUROPEAN COMMUNITIES S
THE GOVERNMENT OP THE REPUBLIC OP DTDIA
Who have agreed as follotrs t
 ---pagebreak---                           Article 1
1*      The Parties recognise and confirm that f subject to the provisions
of this Agreement and without prejudice to their rights and obligations under
the General Agreement on Tariffs and Trade , the conduot of their mutual
trade in textiles shall he governed by the provisions of the Geneva
Arrangement *
2.      This Agreement shall apply to trade in those categories of
textiles products , originating in and despatched from India, which are
listed in Annexes I and II hereto and to those referred to in Artiole 5
hereof.
3.      India agrees to establish quantitative limits on exports to the
Community in accordance with the schedule set out in Annex I hereto *
Quantities of the quota 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 the Community in accordance with the
procedures in force in the Community. The Community undertakes to
respond within 4 weeks of its receipt to any request made by India
for such re-allocation. It is understood that any re-allocation eo
effected would not need to be confined within any limits set in
flexibility provisions established elsewhere in this Agreement *
                                                                 m*» •
 ---pagebreak---                           Article 2
1*     Tho Community undertakes , in respect of the categories of
textiles products to which this Agreement applies , and subject to
the satisfactory operation of this Agreement , not to introduce
new quantitative restrictions , to suspend the application of any
at present in force and to refrain from invoking the provisions
of Article 3 of the Geneva Arrangement provided that exports to the
Community of such textiles products originating in and despatched
from India do not exceed the quantitative limits established under
the provisions of this Agreement *
2•     The Indian Government undertakes to take the appropriate
measures to ensure that the quantitative limits established under
thiB Agreement are not exceeded*
3*     The Community shall not object to the aforementioned quanti­
tative limits being exceeded in the event of additional demand
developing on the market of the Community, on the understanding
that the additional quantities shall be fixed by common agreement
between both Parties *
4*     Both Parties undertake to cooperate in implementing the
measures necessary for the purpose of this Article *
 ---pagebreak---                       Article 3
 L* Imports Into the Community of those textile products to which this
Agreement applies which are for immediate re-export or for inward
 processing and subsequent re-export outside the Community shall not
be subject to quantitative limits established under this Agreementv
provided they are entered as such under an administrative system of
 oontrol in force for this purpose within the Community*
 2* In any case where Community authorities ascertain that imports
desoribed in paragraph 1 above have been retained for consumption
within the Community, the latter will notify the Government of India
on a quarterly basis of the amounts involved* India shall in such
oases and at the request of the Community, charge such amounts against
the quantitative limit or limits in question for the current Agreement
year or for the next following Agreement year*
3*    In any case where the competent authorities within the Community
ascertain under an administrative system of control in force that
imports of textile products to which this Agreement applies have
been charged against quantitative limits established under this
Agreement but subsequently re-exported outside the Community, the
eompetent authority concerned will inform the Indian authorities
of the quantities involved and authorise imports of the same quantities
which shall not be charged to the quantitative limits under the
Agreement *
                                                             A^u ,
 ---pagebreak---                              Article k
1.     The following Indian textiles products shall , subject to the
conditions indicated hereafter , be admitted into the Community without
quantitative limit :
       (i)     cotton handloom fabrics of 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 textiles products
               cut , sewn or otherwise fabricated by hand in cottages which
               are units of the cottage industry .
2.     Admission into the Community of these products without quantitative
limit shall be subject to the satisfactory operation of agreed arrangements
for certification *
                                                                   AA A
 ---pagebreak---  )
                             Article 5
   1*     Both Parties agree to enter promptly into consultations with
   each other, at the request of either and in conformity with the
   provisions of the Geneva Arrangement , on any matter concerning their
   trade in textiles and in particular on any problems arising from . the
   application of this Agreement * Consultations held under the provisions
   of this Artiole shall be approached by both Parties in a spirit of
   compromise and with a view to the conciliation of differences existing
   between them *
   2*     The Community may, in particular, whenever conditions in its
   market give rise to real risks of market disruption, request consultations
   with India in accordance with the procedures set out in paragraph 5
   below with regard to the products referred to below and to those listed
   in Annex II hereto *
3*       If, in the opinion of the Community, imports into the Community
of textile products of fibres other than cotton in direct competition
with those listed in Annex I and II hereto cause real risks of market
disruption, the Community may request consultations with India under
identical conditions to those specified in paragraph 5 of this Article *
 ---pagebreak---                             - 2 -
                   Article 5 cont'd
4*      If an excessive concentration of trade in any specific product
within the categories listed in Annex I hereto causes a real risk of
market disruption in respect of that product , the Community may request
consultations with India under identical conditions to those specified in
paragraph 5 of this Article *
5*      In those cases defined in paragraphs 2 , 3 and 4 of this Article ,
India shall limit , in accordance with the Community* s request , exports
of the products or categories of products in question , destined for
the Community market or for its market in one or more of its Member
States , pending a mutually satisfactory conclusion to the said consultations ,
at a level indicated by the Community which , at an annual rate , shall not
be lower than 107 % of the imports recorded for the said product or
category thereof during the 12 months ending 3 months before thact in which
the request for consultation was made *
6*      Consultations shall be held at the request of   India in order to
review the need for the maintenance or modification of any quantitative
limit established under this Article , whenever market conditions which
led to the establishment of such quantitative limit no longer prevail *
                                                                     •  »
 ---pagebreak---                               Article 6
        If, having regard to the provisions of the Geneva Arrangement ,
India considers that as a result of the quantitative limits esta­
blished under this Agreement , it is being placed in an inequitable
position as compared with a third country, India may request con­
sultations with the Community with a view to taking appropriate
action consistent with both Parties' international rights and obli­
gations *
 ---pagebreak---                                  Article 7
1* (a) Within any one Agreement year, unused portions of quantitative
        limits established under this Agreement may "be transferred to
        another quantitative limit so established , under the conditions
        set out below.
    (b) Transfers may only be effected under this Agreement as follows t
        (i)    into category 55.09 (cotton fabrics ) and, therein,
               into the sub-category ex 55-09 (cotton fabrics other
               than grey and bleached) from any other category shown
               in Annex I hereto , provided such transfers do not exceed
               10 $ of the quantitative limit into which they ex® made }
         (ii ) between the catégories s
                     61.02.8? (women's shirts and blouses of cotton)
                    ex-62.02 (household linens)
                provided such transfers do not exceed 10$ of the
                quantitative limit for the category into which they
                are made .
         (iii) from category 55.09 (cotton fabrics) into t
                (a )-sub-category ex-55-09 ( cotton fabrics, other than
                x                            grey and bleached)
                    -category ex-62.02 (household linens)
                    provided such "transfers do not exceed 7 % the
                    quantitative limit for the category or sub-category
                  • into which they are madef
                 (b)category 61.02.87 (women's shirts and blouses of cotton)
                     provided that such transfers do not exceed 5 1" of the
                     quantitative limit for the category into which they
                     are made .
 2. Portions of any quantitative limit established under this Agreement
     which are not used during any Agreement year may be carried over and ad­
     ded to the corresponding quantitative limit in the following Agreement
     year, within a limit of 10 £ of the latter.
  3. Within a limit of 10 % of each of the quantitative limits established
   " under this Agreement, advance deliveries shall be authorised from the
      corresponding quantitative limit established for the following Agreement
      year. Amounts delivered in advance shall be deducted ft-om the quantitative
      limits for the products in question for the following Agreement year.
 ---pagebreak---                             Article 7 cont'd
4* The preceding flexibility provisions shall not , in any given
   Agreement year , result in a quantitative limit for any category
   being exceeded by more than the following percentage of the quan­
   titative limit for that category for that Agreement year S
   55.09 (cotton fábrica );* 20 >
   ex-55*0? (cotton fabrics , other than grey or bleached ): w 20 %
   61*02.87 (women* 8 shirts and blouses of cotton): H 15
   ex-62.02 .(household linens); f* 20$
5* The flexibility provisions contained in this Article may only
   be applied by India following written notification to the Community
   by the Indian authorities .
                                                                   V ^
 ---pagebreak---                           Article 8
       India shall endeavour to ensure that exports of all textiles
preducts for which quantitative limits may be established tinder
this Agreement are spaced out as evenlyy as possible over each
of the Agreement years , due account being taken, in particular ,
of seasonal factors *
 ---pagebreak---                              Article   9
              The tvo Parties agree to exchange all UBeful Information
         concerning their mutual trade in terfile. to order to ensure
         the successful implementation of this Agreement.
                                     •                                 • »
Iri . il
 ---pagebreak---                    Artiole 10
1*  The Parties agree that the quantitative limits established under
this Agreement shall be managed under a system of double control , the
details of which are set out in Annex V to this Agreement *
2*   India therefore agrees to furnish the Community with precise
statistical information, on a quarterly basis , of all export
authorisations issued by the Indian authorities for all categories
of textile exports to the Community to which this Agreement applies .
3*  The Community will likewise forward to the Indian authorities
pn a quarterly basis , precise statistical information of imports
of such products into the Community.
 ---pagebreak---                           Artici© 11
1.      Both parties shall take all possible measures to ensure that
traditional channels and methods of trade between the Community and
India are maintained . :
2.      Should the Community inform India that the application of
this Agreement has given, rise to difficulties regarding the main­
tenance of existing commercial relations between importers in the
Community and their suppliers in Indiai the Parties agree to consult
together in accordance with the procedures set out in Article 5 above
                                                               /YU\
 ---pagebreak---                   Article 12
     Without prejudice to the other provisions of this Agreement ,
India agrees that quantitative restrictions with regard to imports
into Ireland of the following textile products from India may "be
maintained until 30.6*77 at the latest *
     CCT Headinir No .       Produit riftKr-rin+.i nn
       . .   55*05     Cotton yarn , not put by for retail sale
             55*06 Cotton yarn, put by for retail sale
             55*07     Cotton gauze .
                                                               / m*
 ---pagebreak---                      Article 13
      This Agreement shall apply to the territories where the Treaty
establishing the European Economic Community applies , on the conditions
established in the Baid Treaty, and to the territories to which the
Constitution of the Republic of India applies *
                                                              (ym
 ---pagebreak---                         Article 14
1*      This Agreement shall enter into force on the first day of the
month following the date on which the Contracting Parties have notified
each other cf the completion of the procedures necessary for the purpose*
It shall remain in force until 31 December 1977 *
2*      This Agreement shall enter into force , in the manner defined
in paragraph 1 of this Article , with effect from 1 January 1975 *
3. ■ Either Party may at any time propose modifications to this
Agreement or denounce it provided that notice is given at least 120
days before the expiry of any twelve-month period; in the latter event
the Agreement will come to an end at the expiry of the said twelve-month
period.
4*      The Annexes to this Agreement shall form an integral part thereof
 ---pagebreak---                      Article ls
     This Agreement shall toe drawn up in two oopies in the German,
French, Italian, Dutch, Danish, English and Hindi languages, each of these
texts toeing equally authentic *
 ---pagebreak---                                             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 :
   Products category               Member            quantitative limits ( metrie tons )
                                   State
   or sub-category                                1975              1976             1977
   55.09                              FRG        h . 590           5.512            6.412
   eotton fabrics
                                       F         3.836             4.480            5.221
                                       I         1.000             1.300            1.690
                                      BNL        1.687             2.025            2.355
                                       UK     22.825              22.939           23.054
                                      Irl            136             163                195
                                       DK            866             971            1.073
                                    - EEC     34.940              37.390           40.000
   of which                      i
   ex 55.09                           FRG            3^3             419                498
   cotton fabrics other
                                       F       •     366             ^32                502
   than grey or bleached
                                       I             219             267                318
                                      BNL            273             322                360
                                       DK        1.810             1.819            1.828
                                      Irl             70              70                 71
                                       DK            419             421                423
                                      EEC        3.500             3.750            4.000
                                      FRG            250             250              . 268
                                       F             115             115                128
   61.02.87                            I             130             130                139
   vomen's shirts and                 BNL            148             148                150
   blouses of eotton                   DK            122             122                140
                                      Irl              5               5                  5
                                       DK            184             184                184
                                      EEC            954             95H            1.014
                                      FRG        2.291             2.556            2.789
   ex 62.02
                                       F             138             207                310
                                       I             197             256                333
   ( 62.02.11,41,43,47,               BNL            292             315                400
           71,73 )                     DK {      4.008             4.008            4.028
                                      Irl              9              13                 21 .
                                       DK            657             660                663
                                      EEC        7.592             8.015            8.5V»
kl
 ---pagebreak---                             AMEX II
         Produots subject to special consultation procedures tinder
                       the provisions of Article 5
CCT Headi ng ïïo .                         Product description
      55*08                 Terry towelling of cotton
 ex 6O.O4                   "T^shirts
6l.O3.i5                    Mén( 8 shirts of cotton
6I .O5. B. 30               Cotton handkerchiefs
 ---pagebreak---                        AUNEX III
 1.     In donformity with Article 5 of the Agreement on trade in textile
 products conoluded between the Community and India, 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 région       Animal Quantité
CCT Heading No.        Products covered    to which restriction    (with effect
                                           is applied             from 1.1.1975 )
55*08           Terry towelling of cotton       UK                    450 tons
ex 60.04        T* shirts                     France              2.250.000 unit*
6l.O3.i5        Mens * shirts of cotton         UK                   663*960 unit/
6l.O5.3O        Cotton handkerchiefs            UK                4.344.933 doz.
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---           1
                               KmEX IV
TTnnfll oom and textile handicraft art ids a
1 . In accordance with Article 12, paragraph 3 of the Geneva Arrangement
     regarding International Trad® in Textiles , the Community and India
   , have agreed, in Article 4 of this Agreement on trade in textiles
     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, paragraph 2 of the above-mentioned Agreement
     specifies 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 pro­
     visions of Article 4 of this Agreement the following form of certi­
      ficate shall be used .
            ^Certificate in regard to cotton handloom fabric s__andjDroduct a thereof
                            Name and address of manufacturer
                            Warae and address of exporter
                            25ame and address of EEC importer
                            Description of goods
                            Quantity (metric tons )
                            Same of ship or flight number
                            Port or airport of destination
            This is to certify that the above shipment is I
             (i )   cotton handloom fabrics of the cottage industry, containing
                    not more than 5 $ *y weight of man-made fibres , being fabrics
                    which are both traditionally of the kind woven on handlooms and
                    aotvallv woven on a loom for which the motive power is provided
                    entirely by the operators (that is where the three primary move­
                    ments of weaving, namely shedding, picking and beating, are
                    induced by hand or foot and no other source of power is used ;?
             (li )  Goods made up by the cottage industry from such
                    eotton handloom fabrics ?
              (Hi ) traditional Indian folklore handicraft textiles products out,
                     e®wn or otherwise fabricated by hand in cottages which are
                    units of the cottage industry®                            w
                                                      Signod .. a .
   3. The bodies which shall be authori'eJ to issue th© above certificates
       are the Textile Commissioner in Bombay, or one of his
       in Ahsnedabad, toritjar, Calcutta, Coiinbatore , Kanpur and Madras.
   A In addition such descriptive certificate shall be endorsed by a
   4° Government agency to the effect that the ^onsigment is approved
        for export , without any quantitative ceilings, as
        the Agreement on trade in textiles concluded between the Community
        and India and in the Geneva Arrangement regarding International
        Trade in Textiles®
                                                                      *
 ---pagebreak---                              Annex v
As agreed between the Parties in Article 10 of the Agreement , the
 administration of textiles 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 will be issued 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 I
1 * destination
2 * serial number
3 * importer 's name and address
4* exporter 's name and address
5* net weight (in kilograms or metric tons ) and value
6* category and description of product
7 * certificate issued by the Indian authorities showing that the quantity
    has been debited against the agreed ceiling for exports to the Community or
    were 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 wei^it 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 authorities of the Member States
of the Community will take the appropriate measures in accordance with their
existing administrative provisions .
 ---pagebreak---                            ÀMEX V cont'd
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 the Community, as well as the allocation
of theae export licences amongst the member States of the Community, for
all categories of textiles exports to the Community subjeot to quantitative
limits under this Agreement *
                                                              !
 ---pagebreak---                   ANNEX vl
            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 yardG , 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 ,
tho effect of thi3 change might prove to be restrictive in terms of
tho 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        1976 ) the Customs authorities of the Member State
concerned (the tJnited Kingdom) would maintain
a running check on both tho tonnago and square yardage of imports
from India and that if during this transitional period the square'
yard equivalent of the quantitative limits expressed in tons was not
reached, additional imports would be accepted to a level not
exceeding the pc tnare yard equivalent derived as indicated above.
 In case a new ratio emerges by tho end of 1976, the quantitative
 limit for 1977 cxpreeced in tons , will be fixed on the basis of new
 ratio and appropriate growth factor*
                                                         íxiU
 ---pagebreak---                                                                ANNEX VII •)
Sir .
      In concluding the negotiations held bstween the government
of India and the Europnan Economic Community which have led this
c«ay 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 ( household
      linens ) for the years 197'J end 1977 1       shown in Annex I , did
      not t?ke fully into account the potential of Indier. 's 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 nbewe
correctly represents our understanding in the matter .
      Please accept , Sir , the ncsur-'inccs of r.:y highest consideration .
 ---pagebreak---                                                               ANNEX VII
 Your Sxcellency ,
        I have the honour to refer to your letter of today 's   date
 in the following terms :
        " In concluding the negotiations hold between the Government
of India and Lhe 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 tho view of the Indian delegation the quantitative limits
        for the products falling within category ex 62.02 ( ho-.;.~ehold
        linens ) for the years 1976 and 1377 » as shown in Annex I ,
        did not take fully into account the potential of Indian 's
        exports to the Comrnunity narket .
        A review will be held , at tho request of India , in order to
        assess the position and to determine , on a mutually agreed
        basis , whether and to what c;:tent on upward revision of the
        quantitative limits in question should be made .
        I should bo grateful for your confirmation that the above "
correctly represents our urd erst arming in the matter ."
        I confirm that this correctly sets out our understanding
 in the matter *
        Please accept t Your Excellency , the rssurances of ny highest
 consideration .
                                                          • (VU-
 ---pagebreak---                                                             mm. ii
                                                                          ;       '     . "j
                                                  ( referred to in                î         >
                                                  Article 3        t*1® Régulation )
                                                                           i              •   '
                                                                           ;    . t       u
                         Comniunity ceilings
CCT heaaing Ho           Description                       Volumes                  ,
                                                        ( in tonnes ) <
                                              mi         ML i 1221;i    •
      55.09     Woven fabrics of cotton      34 940     37 390     1 40 000
     of which
   ex 55.09    Woven fabrics of cotton ,
                other than unbleached
                or "bleached                  3 500      3 750       .      4 000
                               ?
   ex 61 . 02  Women's cotton shirts and                             ;                ï
               "blouses                         954         954      : 1 014
   ex 62.02    Cotton household linen       ' 7 592      8 015 "      | 8 544
 ---pagebreak---                                                                                                ANNEX III
                                                                                               ( referred in Article 5
                                                                                                 of the Regulation )
CCT Heading No .   Description             Uombev State
                                                             •
                                                               \
                                                                i
                                                                i
                                                                i
                                                                                     Volume , •                           |
                                                           .    j
                                                                i |   1975               1976      .. .           1977 ■
                                                               1
     55.08       Terry towelling and      United Kingdofii      I         450            481 .                     5X5 '
                 siailar terry fabrica , <                                tonnes         tonnes    ; *             tonnes I
                 of cotton                                     !
! ex 60 . Oh     T-shirts                 France                    2 250 000     Γ Τ-07 500                2 575  990
                                                               ]          unit s         unit s                    unit s I
l
                                                               1
i ex 61.03       Men's cotton shirts      United Kingdo^n             663 960       710 437                   760  167
1                                                                         units          unit s                    unit s i
! ex 61.05       Cotton handkerchiefs      United Kingdoa           4 314 933    4 649 078                  4 974 512
                                                                           dosen         do zen                    dozen  1