CELEX: 51988PC0266
Language: en
Date: 1988-05-11
Title: Proposal for a COUNCIL DECISION concerning the provisional application of an agreed minute modifying the agreement between the European Economic Community and Hong Kong on trade in textiles products (submitted by the Commission)

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COM (88) 266
Vol. 1988/0084
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM(88 ) 266 final
                                           Brussels , 11 May 1988
                             Proposai for a
                            COUNCIL DECISION
     concerning the provisional application of an agreed minute
   modifying the agreement between the European Economic Community
             and Hong Kong on trade in textiles products
                     ( submitted by the Commission )
                               f      v% \
                £3                .     ;\
                pi -"
 ---pagebreak---                      PROPOSAL POR A COUNCIL DECISION CONCERNING
        THE PROVISIONAL APPLICATION OF AN AGREED MINUTE MODIFYING
          THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
                AND HONG KONG ON TRADE IN TEXTILES PRODUCTS
    Consultations between the Community and Hong Kong were held on 2
    February 1988 , at the request of the latter , during which it was
    agreed to merge a quota and a special additional quantity agreed
    upon during the renegotiation of the said agreement .
    In the present document the Commission sets out the justification
    for this modification and proposed that the Council adopt a
    decision on the provisional application of the modification of
    the bilateral trade agreement with Hong Kong
                                      *
                                      *
1 . During the renegotiation of the MFA bilateral textile agreements
    in 1986 , certain quantitative limits were adjusted to allow for
    classification changes carried out by the Community in the light
    of the introduction of the Harmonised System . Thus in the
    Agreement with Hong Kong , an amount equivalent to 1,664 tonnes
    had to be added to the quota for category 4 products ( T-shirts )
    for the year 1987 to 1991 , which is expressed in pieces in order
    to allow for the inclusion of several Nimexe codes transferred
    from ex-category 83 .
2 . Since the two parties failed to agree at the time on a conversion
    factor for converting this quantity into pieces , it was decided
    to maintain this quantity in tonnes , as a special additional
    quantity "4 S " covering only the Nimexe codes transferred from
    ex-category 83 .
3 . Although the product coverage of category 4 remains unchanged by
    the implementation of the Harmonised System , it is no longer
    possible to maintain the coverage of the special quantities 4 S
    as it was in 1987 . This has given rise to significant management
    problems which are affecting the flow of trade in the products
    concerned .
 ---pagebreak---                                                                        3
                                 - 2 -
4 . At the request of Hong Kong consultations were held in Brussels
    on 2 February 1988 with a view to finding a solution of the
    problem .
    The Commission , with the assistance of the Member States was
    able to agree with Hong Kong that the special quantity 4 S would
    be converted into pieces and added to category 4 , on the basis of
    the conversion factor set out in the bilateral agreement
    ( i.e. 6,48 p/ kg ) which was formerly unacceptable to Hong Kong .
    The annual growth rate applied in order to calculate the combined
    quota for the years 1988 to 1991 was the previously agreed rate
    for category 4 .
    An agreed Minute setting out the above modifications to the
    bilateral agreement was initialled on 2 February 1988 ( see
    Annex ) .
5 . In the light of the circumstances outlined above the Commission
    proposes to the Council to decide the provisional application of
    the Agreed Minute initialled on 2 February 1988 , modifying the
    bilateral Agreement between the Community and Hong Kong on trade
    in textile products initialled on 2 October 1986 , pending formal
    conclusion of the Agreement and of this Agreed Minute .
                                                                         <
 ---pagebreak--- S. 9 . 87                                   Official Journal of (hr European Communities                                  N«. I. 255 / 177
                                                         COUNCIL DECISION
               concerning (he provisional application of the Agreed Minute modifying the Agreement between the
                   European Economic Community and Hong Kong                                on trade in textile products
                                                             ( 87 / 461 / EEC)
THE COUNCIL Of THU EUROPEAN COMMUNITIES,                                   HAS DECIDED AS FOLLOWS :
Having regard to the Treaty establishing the European
Economic Community , and in particular Article 113                                                    Article I
thereof,
                                                                           Pending the completion of the procedures necessary lor its
Having regard to the proposal from the Commission ,                        conclusion , the Agreed Minute modifying the Agreement on
                                                                           trade in textile products between the European Economic
Whereas pending the completion of the procedures necessary                 Community and .        Hong Kong              shall be applied
for its conclusion , the Agreement between the European                    provisionally in the Community, with effect from 1 January
Economic Community and . Hong Kong                           . on          19 88, provided that there is reciprocal provisional
trade in textile products , initialled on 2 Oct . 1986 , has been          application on the part of Hong Kong .
provisionally applied since 1 January 1987 in accordance,
having regard to the Community , with the Council Decision                 The text of the Agreed Minute is attached to this
of 11 December 1986 ( ' );                                                 Decision.
Whereas that Agreement provides for the possibility of
re-examining ,
                                                                                                      Article 2
quantitative adjustments to the quotas for certain categories,
in order to allow for classification changes with a view to the
introduction of the Harmonized System;                                     The Commission is invited to seek the agreement of the
                                                                           Government of * Hong Kong                  on the provisional
Whereas , at the end of consultations between ■ the                        application of the Agreed Minute referred to in Article 1 and
Community and                 Hong Kong             , an Agreed            to notify the Council thereof .
Minute modifying the quota on category 4 products provided
for in the Agreement was initialled on .2 February 1988 .
                                             ■ ! .        /
Whereas pending the completion of the procedures necessary                 Done at Brussels , .
for the conclusion of the Agreement and the Agreed Minute,
the Agreed Minute should be applied provisionally, with                                                            For the Council
effect from 1 January 198$ provided that there is a                                                                 The President
reciprocal provisional application on the part of the
  Hong Kong .
 O' See page 126 of this Official Journal .
 ---pagebreak---                                                                                        5
                                   AGREED    MINUTE
1 . A delegation of the Hong Kong Government, and a delegation of the
     European Community met in Brussels on 2 February 1988 for
     consultations in accordance with Article 14 of the Agreement on
     Trade in Textile products between Hong Kong and tne Community
     initialled  on    2  October   1986  in    Brussels .   These   consultations
     were neld at tne request of Hong Kong to address problems arising
     from   tne   implementation      of   tne     said    Agreement     concerning
     Category 4  (S) .
2 . Having regard to these problems , tne two parties agreed to delete
     tne quantitative limits for " Special Quantity " of Category 4 in
     respect of tne years 1988 , 1989 , 1990 and 1991 established in
     Annex II of tne said Agreement , and , in consequence , to add tne
     following additional quantities to tne quantitative limits for
     Category 4 established in Annex II of tne said Agreement :
                year                Additional Quantity
                                    _* 000 pcs_
                1988                        1 0,954
                1989                        11,031
                1990                        11,108
                1991                        11,186
     Thus , tne  two    parties  agreed   to    amend   tne  quantitative
     established in Annex     II of  tne  said Agreement      as follows    :
     Category    Description           Unit           year    Quantitative
                                                              limits EEC
         4       Shirts , T-shirts 1,000 pees         1988       36 , 098
                 and tne    like                      1989       36,351
                 knitted or                           1990       36,605
                 crocheted                            1991       36,861
 4 . It was further agreed tnat tne regional snares for Category 4
      for tne year 1988 , as indicated informally in November 1987 , will
      be increased in consequence of tne additional quantity in
     paragraph 2 above by not less than tne following quantities :
                                                                                 / • 1
                                                                                f/ T
 ---pagebreak---              Region                      Additional Q u a n t i t y
                                               ' 000    pc s
                 0                             2,365
                 F                                  752
                 I                                  609
                BNL                             1 , 069
                UK                             5,715
                IRL                                  45
                DEN                                 194
                GRE                                  58
                SPA                                  58
                POR                                  13
It        confirmed tnat as regards tne description cf Category 4 in
Annex I and Annex li of tne said Agreement sucn a description
covers      garments        wnicn    were     properly         classified     under
Category 4 ( S ) in 1987 in tne Community , tnese garments being s
( a ) Knitted garments wnicn as regards neading 6105 ( snirts for
      men and boys ) satisfy tne Harmonised System and Combined
      Nomenclature provisions including tneir explanatory notes ;
( b ) Garments wnicn as regards neading 6109 ( T-snirts , singlets
      and other vests ) satisfy the Harmonised System and Combined
      Nomenclature provisions including tneir explanatory notes ;
Tne   two parties       agreed ,  as an exceptional         arrangement for     1988
only ,   tnat ,   a quantity of up to 100 tonnes could be transferred
into tne UK regional snare for Category 4 from any category or
categories in Group II .
Tne two parties agreed tnat products meeting tne provisions in
paragraph 5 above exported from Hong Kong to tne Community and
covered by Category 4(S ) Hong Kong Export Licences dated from
 1 January to 3 February 1988 would be entered into tne Community
on tne basis of tne weights declared on sucn Export Licences . For
tne     purpose      of    debiting    tnese     exports       against    tne    new
quantitative limits for Category 4 , tnese weignts snail be
converted       to  pieces     according   to    tne    appropriate     conversion
factor in Annex I of tne said Agreement ( 6,48 pcs / kg ).
Delegation of tne Hong Kong                       Delegation of tne European
          Government                                   Economic Community
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