Avis juridique important

Council Regulation (EEC) No 2135/89 of 12 June 1989 on common rules for imports of certain textile products originating in the people's Republic of China Official Journal L 212 , 22/07/1989 P. 0001 - 0078

COUNCIL REGULATION (EEC) N° 2135/89 of 12 June 1989 on common rules for imports of certain textile products originating in the People's Republic of China THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas in 1988 the European Economic Community negotiated an Agreement with the People's Republic of China (hereinafter referred to as 'China') on trade in textile products (1); (hereinafter referred to as 'the Agreement'); Whereas the Community and China have decided that the provisions of this Agreement shall be fully implemented as from 1 January 1989 until 31 December 1992; Whereas it is necessary, with a view to implementing the provisions of the Agreement to establish new specific common rules for imports of certain textile products originating in China; Whereas it is necessary to ensure that the purpose of the Agreements should not be obstructed by defletion of trade and that it is therefore necessary to determine the way in which the origin of the products in question is controlled and the methods by which the appropriate administrative cooperation is achieved; Whereas compliance with the quantitative limits on exports established under the Agreement is ensured by a double-checking system; whereas the effectiveness of these measures depends on the Community establishing a set of quantitative limits to be applied to imports of all products from China which are subject to quantitative limitations; Whereas products entering the customs territory of the Community under the arrangements for inward processing or other temporary admission arrangements and intended for re-exportation out of the said territory in the same state or after processing should not be subject to such quantitative limits; (1) OJ N° L 380, 31. 12. 1988, p. 1. Whereas special rules are required for products re-imported under the arrangements for economic outward processing; Whereas, in order to apply quantitative limits in conformity with the Agreement, it is necessary to establish a special management procedure; whereas it is desirable that such common management system be decentralized by allocating the quantitative limits among the Member States, and that the import authorizations be issued by the Member States' authorities in accordance with the double-checking system defined in the Agreement; Whereas, in order to ensure the best possible utilization of the Community quantitative limits, they should be allocated in accordance with the requirements of the Member States and with the quantitative objectives established by the Council; whereas, however, the extent of the disparitities existing in the conditions for importation of these products into the Member States and the particularly sensitive position of the Community textile industry mean that the said conditions can be standardized only gradually; whereas, for these reasons, allocation of supplies cannot immediately be effected on the basis of requirements alone; Whereas the Agreement provides for the possibility of automatic transfers between the shares allocated to the Member States within the Community quantitative limit on the basis of increasing percentages from the first year of application of the Agreement onwards, with a view in particular to giving China more flexibility in using each Community quantitative limit; Whereas it is also necessary to maintain efficient and rapid procedures for altering Community quantitative limits and their allocation to take account of the development of trade flows, needs for additional imports and the Community's obligations under the Agreement; Whereas, in respect of certain textile products under limitations, the Agreement provides for a consultation procedure with China whereby a limit to the growth of imports of a product may be agreed where significant use of its related quantitative limit follows a marked under-use; whereas China also agreed to limit its exports, from the time of the consultation request, to a level established in the Agreement; whereas, in the absence of agreement within the specified time limits, China agreed to limit the growth in its exports to a level established in the Agreement; Whereas, in the case of products not subject to quantitative limitation, the Agreement provides for a consultation procedure whereby, in the event that the volume of imports of a given category of products into the Community or one of its regions exceeds a certain threshold, agreement can be reached with China on the introduction of quantitative limits; whereas China also undertakes to limit its exports from the date of a request for such consultations, at the level indicated by the Community; whereas, if no agreement is reached with China within the period stipulated, the Community may introduce quantitative limits at a specific annual or multiannual level; Whereas the Agreement established a system of cooperation between the Community and China with the aim of preventing circumvention by means of transhipment, re-routing or other means; whereas a consultation procedure is established under which an agreement can be reached with China on an equivalent adjustment to the relevant quantitative limit when it appears that the Agreement has been circumvented; whereas China also agreed to take the necessary measures to ensure that any adjustments could be rapidly applied; whereas, in the absence of agreement with China within the time limit provided, the Community may, where clear evidence of circumvention is provided apply the equivalent adjustment; Whereas, in order, inter alia, to comply with time limits set in the Agreement, it is necessary to establish a rapid and efficient procedure for introducing such quantitative limits and concluding such Agreements with China; Whereas, for practical reasons, it is convenient to make use, for the purposes enumerated above, of the management committee already set up by Regulation (EEC) N° 4136/86 (1); Whereas the provisions of this Regulation must be applied in conformity which the Community's international obligations, in particular with those arising from the Agreement, HAS ADOPTED THIS REGULATION: Article 1 1. This Regulation shall apply to imports into the Community of the textile products referred to in Annex I and originating in China. 2. The classification of products listed in Annex I shall be based on the combined nomenclature, without prejudice to (1) OJ N° L 387, 31. 12. 1986, p. 42. Article 3 (6). The procedures for the application of this paragraph are laid down in Annex V. 3. Subject to the provisions of this Regulation, the importation into the Community of the textile products referred to in paragraph 1 shall not be subject to quantitative restrictions or measures having equivalent effect to such restrictions. Article 2 1. The origin of the products referred to in Article 1 (1) shall be determined in accordance with the rules in force in the Community. 2. The procedures for control of the origin of the products referred to in Article 1 (1) are laid down in Annex IV. Article 3 1. The importation into the Community of the textile products listed in Annex III, originating in China and shipped between 1 January 1989 and 31 December 1992 shall be subject to the annual quantitative limits laid down in that Annex. 2. The release for free circulation in the Community of imports subject to the quantitative limits referred to in paragraph 1 shall be subject to the presentation of an import authorization or equivalent document issued by the Member States' authorities in accordance with Article 11. 3. The authorized imports shall be charged against the quantitative limits laid down for the year in which the products are shipped in China. In this Regulation, shipment of products shall be considered to have taken place on the date of their loading onto the exporting aircraft, vehicle or vessel. 4. Imports of products not subject to quantitative limitation before 1 January 1989 which were in the course of shipment to the Community before that date shall not be subject to the quantitative limits referred to in this Article, provided that they were shipped in China before 1 January 1989. Imports of products not subject to quantitative limitations before 1 January 1989, shipped in China on or after 1 January 1989, shall be subject to and charged against the quantitative limits referred to in paragraph 1. These limits shall not, however, prevent the importation of such products as were shipped in China between 1 January 1989 and the date of entry into force of this Regulation. 5. The release for free circulation of products the importation of which was subject to quantitative limitation before 1 January 1989 and which were shipped before the said date shall continue from that date to be subject to the presentation of the same import documents, and to the same import conditions, as before 1 January 1989. 6. The definition of quantitative limits laid down in Annex III and the categories of products to which they apply shall be adapted in accordance with the procedure laid down in Article 16 where this proves necessary to ensure that any subsequent amendment to the combined nomenclature or any decision amending the classification of such products does not result in a reduction of such quantitative limits. 7. The quantitative limits fixed in Annex III may be adapted in accordance with the procedure laid down in Article 16 in order to take into account changes in classification occurring following the entry into force of the combined nomenclature. Article 4 1. The quantitative limits referred to in Article 3 shall not apply to the cottage industry and folklore products defined in Annex VI which are accompanied on importation by a certificate issued by the competent authorities of China in accordance with the provisions of Annex VI and which fulfil the other conditions laid down therein. 2. The release for free circulation in the Community of the textile products referred to in paragraph 1 and originating in China shall be granted only for those products covered by an import document issued by the competent authorities of the Member States, provided that similar machine-made products are subject to the quantitative limits referred to in Article 3. The said import document shall be issued automatically within a maximum of five working days from the date of presentation by the importer of the certificate referred to in paragraph 1, issued by the competent authorities of China. The import document shall be valid for six months and shall state the grounds for exemption as given in the certificate referred to in paragraph 1. Article 5 1. Where the Commission finds, in accordance with the procedure laid down in Article 16, that difficulties have arisen in the Community or any of its regions as a result of a sudden and substantial increase in one calendar year by comparison with the preceding year in imports of a Group I category product subject to the quantitative limits laid down in Article 3, originating in China, it may, with the approval of the Committee under the procedure set out in Article 16, open consultations with China, in accordance with the procedure set out in Article 15 with a view to seeking naturally acceptable solutions to the difficulties. 2. The consultations with the supplier country concerned which are provided for in paragraph 1 may lead to the conclusion of an arrangement between that supplier country and the Community or the adoption of joint conclusions. 3. The arrangements provided for in paragraph 2 shall be concluded and the measures provided for in the arrangements or joint conclusions referred to in paragraph 2 shall be adopted in accordance with the procedure laid down in Article 16. Article 6 1. The quantitative limits referred to in Article 3 shall not apply to products placed in a free zone or imported under the arrangements governing warehouses, temporary importation or inward processing (suspension system). Where the products referred to in the preceding subparagraph are subsequently released for free circulation, either in the unaltered state or after working or processing, Article 3 (2) shall apply and the products so released shall be charged against the quantitative limit established for the year for which the export licence was issued. 2. Where the authorities in the Member States establish that imports of textile products have been charged against a quantitative limit fixed pursuant to Article 3 and that these products have subsequently been re-exported outside the customs territory of the Community, they shall inform the Commission within four weeks of the quantities concerned and issue additional import authorizations for the same products and the same quantities in accordance with Article 3 (2). Imports effected under cover of such authorizations shall not be charged against the quantitative limit for the current year or the following year. Subject to the conditions laid down in Annex VII, re-imports into the Community of textile products after processing in the countries listed in that Annex shall not be subject to the quantitative limits referred to in Article 3 provided that they are effected in accordance with the Regulations on economic outward processing in force in the Community. Article 7 1. The Community quantitative limits shall be allocated in such a way as to ensure the best possible utilization of these quantitative limits and to attain progressively a more balanced penetration of the markets by means of improved burden sharing among the Member States. 2. The allocation of the Community quantitative limits shall be adjusted in accordance with the procedure laid down in Article 15 and according to the criteria established in paragraph 1 where this proves necessary, particularly in view of trends in patterns of trade, in order to ensure the best possible utilization of the limits. 3. Without prejudice to the provisions of paragraph 2, after 1 June each year China may, after notifying the Commission in advance, transfer the unused quantities of the shares allocated to Member States of a Community quantitative limit provided for in Article 3 to the shares of the same limit allocated to other Member States, provided that less than 80 % of the share of the Member State from which the transfer is being made has been used and subject to the following percentages of the share to which the transfer is being made: - 4 % in 1989, - 8 % in 1990, - 16 % in 1991. The percentage in the fourth year of application of the Agreement shall be determined following consultations between the Parties. 4. In cases referred to in paragraph 1 which are of particular economic importance to one or more Member States, the Commission shall, however, refer proposals for amendment of the allocation directly to the Council. The Council shall act upon such proposals in accordance with Article 113 of the Treaty. Article 8 In order that the Community textile and clothing industry may benefit from the utilization of all the quantitative limits established in Annex III and in particular those established for categories 2, 3 and 37, and in order to contribute to the improvement of supplies to these industries of raw silk, silk waste, angora and cashmere, the Commission shall, at the request of one or more Member States, submit to the Chinese authorities before 1 December of each Agreement year a list of interested manufacturing and processing companies and, where appropriate, the quantities of products requested by the companies concerned. Article 9 1. China may, after notifying the Commission in advance, utilize the shares allocated to Member State in the following ways: (a) Advance utilization during any given year of a portion of a share established for the following year shall be authorized for each category of products up to 5 % of the share for the year of actual utilization. Such advance imports shall be deducted from the corresponding shares established for the following year. (b) Carry-over of amounts not utilized during any given year to the corresponding share for the following year shall be authorized up to 7 % of the share for the year of actual utilization. (c) Transfers of quantities in group I categories shall be made only as follows: - transfers from category 1 to categories 2 and 3 shall be authorized up to 7 % of the share established for the category to which the transfer is made, - transfers between categories 2 and 3 are governed by the provisions of the Appendix to Annex III, - transfers between categories 4, 5, 6, 7 and 8 shall be authorized up to 7 % of the share established for the category to which the transfer is made. Transfers of quantities into the different categories in group II or III may be made from any category in group I, II or III subject to a maximum of 7 % of the share established for the category to which the transfer is made. The table of equivalence applicable to the abovementioned transfers is given in Annex I. (d) The cumulative application of points (a), (b) and (c) may not, in the course of any given year, cause a limit established for the category in question to be exceeded by more than 17 %. 2. In the event of recourse by China to the provisions of paragraph 1, the Commission shall notify the authorities of the Member State concerned, which shall authorize the imports in question in accordance with the double-checking system defined in Annex V. 3. Where a Member State's share has been increased by the application of paragraph 1 above or of Article 10, or where further possibilities for imports into that Member State have been created under Article 10, such increases or further import possibilities shall not be taken into account for the purposes of applying paragraph 1 in the current year or subsequent years. Article 10 1. Member States which find that they require additional imports for their internal consumption or which consider that their share may not be fully utilized shall notify the Commission accordingly. 2. The quantitative limits laid down in Article 3 may be increased in accordance with the procedure laid down in Article 16 where it appears that additional imports are required. 3. As the request of a Member State which finds that it requires additional imports, either on the occasion of fairs or where it has issued import authorizations or equivalent documents for up to 80 % of its national share, the Commission may, after oral or written consultations with the Member States within the Committee referred to in Article 16, open up additional possibilities for imports into that Member State. In an emergency, the Commission shall open consultations within the Committee within five working days following receipt of the request from the Member State concerned and shall take a decision within 15 working days calculated from the same date. Article 11 1. The authorities of the Member States shall issue the import authorizations or equivalent documents provided for in Article 3 (2) up to the amount of their shares, taking into account the measures taken pursuant to Articles 5, 7, 9 and 10. 2. The import authorizations or equivalent documents shall be issued in accordance with Annex V. 3. The quantities of products covered by the import authorizations or equivalent documents provided for in Article 3 shall be charged against the share of the Member State which issued those authorizations or documents. 4. The competent authorities of the Member State shall cancel import authorizations or equivalent documents already issued in cases where the corresponding export licences have been withdrawn or cancelled by the competent authorities in China. However, if the competent authorities of a Member State have not been informed by the competent authorities of China of the withdrawal or cancellation of an export licence until after the related products have been imported into such Member State, the quantities in question shall be set off against the Member State's quota share for the year during which shipment of products took place. Article 12 1. The importation into the Community of textile products listed in Annex I, originating in China and not subject to the quantitative limits referred to in Article 3, shall be subject to a system of administrative control. 2. Should imports into the Community of products falling within any given category, referred to in paragraph 1, not subject to the arrangements laid down in Annex VII and originating in China exceed, in relation to the preceding calendar year's total imports into the Community of products in the same category, the percentages indicated below, such imports may be made subject to quantitative limits under the conditions laid down in this Article: - for all categories of group II products: 5 %, - for all categories of group III products: 10 %. These arrangements may be limited to imports into specific regions of the Community. 3. Should the imports referred to in paragraph 2 into a given region of the Community exceed, in relation to the total quantities calculated for the whole Community according to the percentage specified in paragraph 2, the percentage set for that region in the table below, such imports may be made subject to quantitative limits in the region in question: Germany25,5 %, Benelux9,5 %, France16,5 %, Italy13,5 %, Denmark2,7 %, Ireland0,8 %, United Kingdom21,0 %, Greece1,5 %, Spain7,5 %, Portugal1,5 %. 4. Paragraphs 2 and 3 shall not apply where the percentages specified therein have been reached as a result of a fall in total imports into the Community, and not as a result of an increase in exports of products originating in China. 5. Where the Commission finds, in accordance with the procedure laid down in Article 16, that the conditions set out in paragraphs 2 and 3 are fulfilled and considers that a given category of products should be made subject to a quantitative limit, with the concurring opinion of the Committee under the procedure in Article 16: (a) it shall open consultations with China, in accordance with the procedure specified in Article 15, with a view to reaching an agreement or joint conclusions on a suitable level of limitation for the category of products in question; (b) pending a mutually satisfactory solution, the Commission shall, as a general rule, request China to limit exports of the products in the category concerned to the Community, or to the region or regions of the Community market specified by the Community for a provisional period of three months from the date on which the request for consultation is made. Such provisional limit shall be established at 25 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2 and gave rise to the request for consultation or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher; (c) it may, pending the outcome of the requested consultations, apply to the imports of the category of products in question quantitative limits identical to those requested of China pursuant to point (b). These measures shall be without prejudice to the definitive arrangements to be made by the Community, taking into account the results of the consultations. (d) The Commission shall refer urgent cases to the Committee provided for in Article 16 within five working days of receipt of the request from the Member State or States setting out the reasons for urgency and take a decision within five working days of the end of the Committee's deliberations. (e) Measures taken pursuant to this paragraph shall be the subject of a Commission communication published without delay in the Offical Journal of the European Communities. The consultations with China which are provided for in paragraph 5 (a) may lead to the conclusion of an arrangement between that country and the Community or the adoption of joint conclusions on the introduction and level of quantitative limits. Such arrangements or joint conclusions shall stipulate that the quantitative limits agreed be administered in accordance with a double-checking system. 7. Should the Community and China be unable in the course of consultations to reach a satisfactory solution within one month following the opening of consultations and, at the latest, within two months following notification of the request for consultations, the Community shall have the right to introduce a definitive quantitative limit at an annual level not lower than the level resulting from the application of the formula set out in paragraph 2 or 106 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2 and gave rise to the request for consultations, whichever is the higher. 8. The arrangements provided for in paragraph 6 shall be concluded and the measures provided for either in paragraphs 5 and 7 or in the arrangements or joint conclusions referred to in paragraph 6 shall be decided in accordance with the procedure laid down in Article 16. 9. The annual level of the quantitative limits laid down in accordance with paragraphs 5 to 8 may not be less than the level of imports into the Community or into the region or regions concerned in 1988, of products of the same category in China. 10. Where the development of total imports into the Community of a product which is subject to a quantitative limit fixed in accordance with paragraphs 5 to 8 renders it necessary, the annual level of that quantitative limit shall be increased, after consultation with China, in accordance with the procedure laid down in Article 15, to ensure compliance with the conditions set out in paragraphs 2 and 3. 11. The quantitative limits fixed in accordance with paragraphs 6 and 8 shall provide for an annual growth rate determined by mutual agreement with China in the context of the consultation procedure laid down in Article 15. 12. The quantitative limits established pursuant to paragraphs 5 to 8 shall not apply to products which have already been dispatched to the Community provided that they were shipped from China for export to the Community before the date of notification of the request for consultations. 13. The quantitative limits established pursuant to paragraphs 5 to 8 shall be administered in accordance with Articles 3, 4, 6, 7, 9, 10 and 11, save as otherwise provided in accordance with the procedure laid down in Article 16. Article 13 1. For the textile products subject to the quantitative limits referred to in Article 3, Member States shall notify the Commission within the first 10 days of each month of the total quantities, in the appropriate units and by category of products, for which import authorizations have been issued during the preceding months. 2. For the textile products referred to in Annex VI and originating in China, Member States shall notify the Commission within the first 10 days of each month of the total quantities, in the appropriate units and by category of products, for which import documents have been issued in accordance with Article 4 (2) during the preceding month. For the textile products referred to in Annexes I and II, Member States shall notify the Commission monthly, within 30 days of the end of each month, of the total quantities imported during that month, indicating the combined nomenclature code and using the units and, where appropriate, the supplementary units, used in that code. Imports shall be broken down according to the statistical procedures in force. 3. For products cited in paragraph 1 of Annex VI, Member States shall notify the Commission monthly, within 30 days following the end of each month, of the best information available on the total quantities imported during that month, in the appropriate units and by category of products. 4. In order to enable market trends in the products covered by this Regulation to be monitored, Member States shall communicate to the Commission, before 31 March each year, statistical data on exports for the preceding year. The statistical data relating to the production and consumption of each product shall be forwarded under arrangements to be determined subsequently pursuant to the procedure laid down in Article 16. 5. Where the nature of the products or particular circumstances so require, the Commission may, at the request of a Member State or on its own initiative, alter the time limits for communicating the abovementioned information under the procedure laid down in Article 16. 6. Member States shall notify the Commission under conditions set in accordance with the procedure laid down in Article 16 of all other particulars deemed under that procedure to be necessary in order to ensure compliance with the obligations agreed between the Community and China. 7. In the urgent cases referred to in Article 12 (5) (d), the Member State or States concerned shall send the necessary import statistics and economic data to the Commission and the other Member States by telex. Article 14 1. Where, following the enquiries carried out in accordance with the procedures established under Annex IV, the Commission notes that the information in its possession constitutes proof that products originating in China and subject to the quantitative limits referred to in Article 3 or introduced under Article 12 have been transhipped, re-routed or otherwise imported into the Community through circumvention of such quantitative limits and that there is need for the necessary adjustments to be made, it shall request that consultations be opened, in accordance with the procedure described in Article 15, so that agreement may be reached on an equivalent adjustment of the corresponding quantitative limits. 2. Pending the outcome of the consultations referred to in paragraph 1, the Commission may ask China to take the necessary precautionary steps to ensure that adjustments to the quantitative limits agreed on following such consultations may be carried out for the year in which the request for consultations was lodged, or for the following year if the quantitative limit for the current year is exhausted, where there is clear evidence of circumvention. 3. If the Community and China fail to arrive at a satisfactory solution within the period stipulated in Article 15 and if the Commission notes that there is clear evidence of circumvention, it shall deduct from the quantitative limits an equivalent volume of products originating in China, in accordance with the procedure laid down in Article 16. 4. The agreements provided for in paragraph 1 shall be concluded and the measures provided for either in paragraph 3 or in the agreements referred to in paragraph 1 shall be adopted in accordance with the procedure laid down in Article 16. Article 15 1. The Commission shall conduct the consultations referred to in the Regulation other than those referred to in paragraph 2, in accordance with the following rules: - the Commission shall notify China of the request for consultations, - the request for consultations shall be followed within a reasonable period (and in any case not later than 15 days following the notification) by a statement setting out the reasons and circumstances which, in the Commission's opinion, justify the submission of such a request, - the Commission shall initiate consultations, within one month at the latest of notification of the request, with a view to reaching agreement or a mutually acceptable conclusion within one further month at the latest. 2. The consultations referred to in Article 5 shall be governed by the following rules: - the Commission shall notify China of the request for consultations, together with a statement setting out the reasons and circumstances which, in the Commission's opinion, justify the submission of such a request, - the Commission shall initiate consultations within 15 days at the latest of notification of the request, with a view to reaching agreement or a mutually acceptable conclusion within 15 days at the latest. Article 16 1. The Committee referred to in this Article shall, for the purpose and period of application of this Regulation, be the Textile Committee set up under Article 15 of Regulation (EEC) N° 4136/86. 2. Where reference is made to the procedure laid down in this Article, the chairman, on his own initiative or at the request of a Member State, shall refer the matter to the Committee. 3. The Commission representative shall lay draft measures before the Committee. The Committee shall deliver an opinion on the draft measures within a period which may be fixed by the chairman in accordance with the degree of urgency of the matter. The Committee shall decide by the majority specified in Article 148 (2) of the EEC Treaty for the adoption of acts by the Council on a proposal from the Commission. In the case of votes within the Committee, the votes of Member States' representatives shall be weighted in accordance with the abovementioned Article. The chairman shall not vote. 4. (a) The Commission shall adopt the measures proposed where they are in conformity with the Committee's opinion. (b) Where the measures proposed are not in conformity with the Committee's opinion, or where no opinion has been given, the Commission shall present to the Council, without delay, a proposal for the measures to be taken. The Council shall act by a qualified majority. (c) Should the Council fail to take a decision within one month of the date on which the proposal was laid before it, the Commission shall adopt the proposed measures. 5. The chairman may, on his own initiative or at the request of one of the Member States' representatives, consult the Committee about any other matter relating to the operation of this Regulation. Article 17 The Member States shall inform the Commission forthwith of all measures taken pursuant to this Regulation and of all laws, regulations or administrative provisions concerning arrangements for importation of the products covered by this Regulation. Article 18 Amendments to the Annexes to this Regulation which may be necessary to take into account the conclusion, amendment or expiry of agreements with third countries or amendments made to Community rules on statistics, customs arrangements or common import arrangements shall be adopted in accordance with the procedure laid down in Article 16. Article 19 This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities. It shall apply which effect from 1 January 1989 until 31 December 1992. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Luxembourg, 12 June 1989. For the Council The President F. FERNANDEZ ORDOÑEZ ANNEX I PRODUCTS REFERRED TO IN ARTICLE 1 (1) 1. When the constitutive material of the products of categories 1 to 114 is not specifically mentioned, these products are to be taken to be made exclusively of wool or of fine hair, of cotton or of man-made fibres. 2. Garments which are not recognizable as being garments for men or boys or as being garments for women or girls are classified with the latter. 3. Where the expression 'babies' garments' is used, this is meant also to cover girls' garments up to and including commercial size 86. GROUP I A >TABLE> GROUP I B >TABLE> GROUP II A >TABLE> GROUP II B >TABLE> GROUP III A >TABLE> (1) (2) (3) (4) (5) 48 (cont'd) ex 5107 20 51 ex 5107 20 59 ex 5107 20 91 ex 5107 20 99 ex 5108 20 10 ex 5108 20 90 49 ex 5109 10 10 ex 5109 10 90 ex 5109 90 10 ex 5109 90 90 Yarn of sheep's or lambs' wool or of fine animal hair, put up for retail sale 50 ex 5111 11 00 ex 5111 19 10 ex 5111 19 90 ex 5111 20 00 ex 5111 30 10 ex 5111 30 30 ex 5111 30 90 ex 5111 90 10 ex 5111 90 91 ex 5111 90 93 ex 5111 90 99 ex 5112 11 00 ex 5112 19 10 ex 5112 19 90 ex 5112 20 00 ex 5112 30 10 ex 5112 30 30 ex 5112 30 90 ex 5112 90 10 ex 5112 90 91 ex 5112 90 93 ex 5112 90 99 Woven fabrics of sheep's or lambs' wool or of fine animal hair 51 ex 5203 00 00 Cotton, carded or combed 53 ex 5803 10 00 Cotton gauze 54 ex 5507 00 00 Staple artificial fibres, including waste, carded, combed or otherwise processed for spinning 55 ex 5506 10 00 ex 5506 20 00 ex 5506 30 00 ex 5506 90 10 ex 5506 90 91 ex 5506 90 99 Synthetic staple fibres, including waste, carded or combed or otherwise processed for spinning 56 ex 5508 10 90 ex 5511 10 00 ex 5511 20 00 Yarn of staple synthetic fibres (including waste), put up for retail sale 58 ex 5701 10 10 ex 5701 10 91 ex 5701 10 93 ex 5701 10 99 ex 5701 90 10 ex 5701 90 90 Carpets, carpetines and rugs, knotted (made up or not) (1) (2) (3) (4) (5) 59 ex 5702 10 00 ex 5702 31 10 ex 5702 31 30 ex 5702 31 90 ex 5702 32 10 ex 5702 32 90 ex 5702 39 10 ex 5702 41 10 ex 5702 41 90 ex 5702 42 10 ex 5702 42 90 ex 5702 49 10 ex 5702 51 00 ex 5702 52 00 ex 5702 59 00 ex 5702 91 00 ex 5702 92 00 ex 5702 99 00 ex 5703 10 10 ex 5703 10 90 ex 5703 20 11 ex 5703 20 19 ex 5703 20 91 ex 5703 20 99 ex 5703 30 11 ex 5703 30 19 ex 5703 30 51 ex 5703 30 59 ex 5703 30 91 ex 5703 30 99 ex 5703 90 10 ex 5703 90 90 ex 5704 10 00 ex 5704 90 00 ex 5705 00 10 ex 5705 00 31 ex 5705 00 39 ex 5705 00 90 Carpets and other textile floor coverings, other than the carpets of category 58 60 ex 5805 00 00 Tapestries, hand-made, of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and needleworked tapestries (for example, petit point and cross stitch) made in panels and the like by hand 61 ex 5806 10 00 ex 5806 20 00 ex 5806 31 10 ex 5806 31 90 ex 5806 32 10 ex 5806 32 90 ex 5806 39 00 ex 5806 40 00 Narrow woven fabrics, and narrow fabrics (bolduc) consisting of warp without weft assembled by means of an adhesive, other than labels and similar articles of category 62 Elastic fabrics and trimmings (not knitted or crocheted), made from textile materials assembled from rubber thread 62 ex 5606 00 91 ex 5606 00 99 Chenille yarn (including flock chenille yarn), gimped yarn (other than metallized yarn and gimped horsehair yarn): ex 5804 10 11 ex 5804 10 19 ex 5804 10 90 ex 5804 21 10 ex 5804 21 90 ex 5804 29 10 ex 5804 29 90 ex 5804 30 00 Tulle and other net fabrics but not including woven, knitted or crocheted fabrics, hand or mechanically-made lace, in the piece, in strips or in motifs (1) (2) (3) (4) (5) 62 (cont'd) ex 5807 10 10 ex 5807 10 90 Labels, badges and the like of textile materials, not embroidered, in the piece, in strips or cut to shape or size, woven ex 5808 10 00 ex 5808 90 00 Braids and ornamental trimmings in the piece; tassels, pompoms and the like ex 5810 10 10 ex 5810 10 90 ex 5810 91 10 ex 5810 91 90 ex 5810 92 10 ex 5810 92 90 ex 5810 99 10 ex 5810 99 90 Embroidery, in the piece, in strips or in motifs 63 ex 5906 91 00 ex 6002 10 10 ex 6002 10 90 ex 6002 30 10 ex 6002 30 90 ex 6001 10 00 ex 6002 20 31 ex 6002 43 19 Knitted or crocheted fabric of synthetic fibres containing by weight 5 % or more of elastomeric yarn and knitted or crocheted fabric containing by weight 5 % or more of rubber thread Raschel lace and long-pile fabric of synthetic fibres 65 ex 5606 00 10 ex 6001 10 00 ex 6001 21 00 ex 6001 22 00 ex 6001 29 10 ex 6001 91 10 ex 6001 91 30 ex 6001 91 50 ex 6001 91 90 ex 6001 92 10 ex 6001 92 30 ex 6001 92 50 ex 6001 92 90 ex 6001 99 10 ex 6002 10 10 ex 6002 20 10 ex 6002 20 39 ex 6002 20 50 ex 6002 20 70 ex 6002 30 10 ex 6002 41 00 ex 6002 42 10 ex 6002 42 30 ex 6002 42 50 ex 6002 42 90 ex 6002 43 31 ex 6002 43 33 ex 6002 43 35 ex 6002 43 39 ex 6002 43 50 ex 6002 43 91 ex 6002 43 93 ex 6002 43 95 ex 6002 43 99 ex 6002 91 00 ex 6002 92 10 ex 6002 92 30 ex 6002 92 50 Knitted or crocheted fabric other than those of categories 38 A and 63, of wool, of cotton or of man-made fibres (1) (2) (3) (4) (5) 65 (cont'd) ex 6002 92 90 ex 6002 93 31 ex 6002 93 33 ex 6002 93 35 ex 6002 93 39 ex 6002 93 91 ex 6002 93 99 66 ex 6301 10 00 ex 6301 20 91 ex 6301 20 99 ex 6301 30 90 ex 6301 40 90 ex 6301 90 90 Travelling rugs and blankets, other than knitted or crocheted, of wool, of cotton or of man-made fibres GROUP III B >TABLE> ANNEX II PRODUCTS REFERRED TO IN ARTICLE 13 (2) GROUP IV >TABLE> GROUP V >TABLE> ANNEX III QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 (1) In the case of the Federal Republic of Germany, 19 % of the quantitative limits prescribed in the Annex are reserved for use at the Berlin Fair, with the exception of the following categories: 18, 23, 26, 67, 73, 76 and 83 GROUP I A >TABLE> GROUP I B >TABLE> GROUP II A >TABLE> GROUP II B >TABLE> GROUP III A >TABLE> GROUP III B >TABLE> Appendix >TABLE> ANNEX IV referred to in Articles 2 (2) and 14 (1) PART I Origin Article 1 1. Products listed in Annex I, originating in China, may be imported into the Community in accordance with the arrangements established by this Regulation on production of a certificate of origin conforming to the specimen attached to Annex V. 2. The certificates of origin shall be issued by the competent governmental authorities of China if the products in question can be considered products originating in China within the meaning of the relevant rules in force in the Community. 3. However, products listed in Annex I other than those falling within groups I or II may be imported into the Community in accordance with the arrangements established by the Regulation on production of a declaration by the exporter or supplier on the invoice, or where there is no invoice, on another commercial document relating to the products in question, to the effect that the said products originate in China within the meaning of the relevant rules in force within the Community. 4. Where different criteria for determining origin are fixed in respect of products falling within a single category and a single tariff heading, the certificate or declaration must include a description of the goods which is sufficiently detailed to allow assessment of the criterion on the basis of which the certificate was issued or the declaration made. Article 2 The discovery of slight discrepancies between the entries made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the product shall not ipso facto cast doubt upon the statements in the certificate. Article 3 1. The certificates of origin form A and forms APR presented at the time of importation into the Community in order to obtain a tariff preference shall be accepted in place of the proof of origin stipulated in Article 1. 2. The proof of origin referred to in Article 1 shall not be required where goods are accompanied by a certificate conforming to the specimen and complying with the conditions set out in Annex VI to this Regulation. 3. Non-commercial imports exempt from production of the documents referred to in paragraph 1 in accordance with the provisions of the preferential arrangements concerned shall not be subject to the provisions of this Annex. 4. The conditions upon which this Annex shall apply to non-commercial imports other than those covered by paragraph 3 shall be adopted in accordance with the procedure specified in Article 14 of Regulation (EEC) N° 802/68 (1), as last amended by Regulation (EEC) N° 3860/87 (2). Pending the implementation of these rules, the Member States may continue to apply the national rules in force in this field. PART II Administrative cooperation Article 4 The Commission shall supply the Member States' authorities with the names and addresses of the authorities in China competent to issue certificates of origin and export licences together with specimens of stamps used by these authorities. Article 5 1. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate of origin or export licence or as to the accuracy of the information regarding the true origin of the products in question. In such cases the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the competent governmental authority in China giving, where appropriate, the reasons of form or substance for an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate of origin or export licence or copy thereof. The competent authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or the said licence are inaccurate. (1) OJ N° L 148, 26. 6. 1968, p. 1. (2) OJ N° L 363, 23. 12. 1987, p. 3. 2. The provisions of paragraph 1 above shall also be applicable to subsequent verifications of the declarations of origin referred to in Article 1 (3) of this Annex. 3. The results of the subsequent verificiations carried out in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate or licence or declaration applies to the goods actually exported and whether the goods are eligible for export to the Community under this Regulation. The competent authorities of the Community may also request copies of all documentation necessary to determine the facts fully and, in particular, the true origin of the goods (1). 4. Should such verifications reveal abuse or major irregularities in the use of declarations of origin, the Member State concerned shall inform the Commission of this fact. The Commission shall pass the information on to the other Member States. As the request of a Member State or at the initiative of the Commission, the Committee on Origin shall, as soon as possible and in accordance with the procedure specified in Article 13 or Regulation (EEC) N° 802/68, examine whether it is desirable to require the production of a certificate of origin, in accordance with Article 1 (1) and (2), in respect of the products concerned. The decision shall be taken in accordance with the procedure specified in Article 14 of Regulation (EEC) N° 802/68. 5. Random recourse to the procedure specified in this Article shall not constitute an obstacle to the release for home use of the products in question. Article 6 1. Where the verification procedure referred to in Article 5 or where information available to the competent authorities in the Community indicates that the provisions of this Regulation are being contravened, the said authorities shall request China to carry out appropriate enquiries or arrange for such enquiries to be carried out concerning operations which are or appear to be in contravention of the provisions of this Regulation. The results of these enquiries shall be communicated to the competent authorities of the Community together with any other pertinent information enabling the true origin of the goods to be determined. 2. In pursuance of the action taken under the terms of this Annex, the competent authorities of the Community may exchange any information with the competent governmental authorities of China which is considered of use in preventing the contravention of the provisions of this Regulation. 3. Where it is established that the provisions of this Regulation have been contravened, the Commission, acting according to the procedure laid down in Article 15 of this Regulation may agree with China to take such measures as are necessary to prevent recurrence of such contravention. (1) For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept for at least two years by the competent governmental authority in China. ANNEX V referred to in Articles 1 (2) and 9 (2) PART I Classification Article 1 The classification of the textile products referred to in Article 1 (1) of this Regulation is based on the combined nomenclature. Article 2 On the initiative of the Commission or of a Member State, the Nomenclature Committee established by Council Regulation (EEC) N° 2658/87 (1) will examine urgently, in conformity with the provisions of the aforementioned Regulation, all questions concerning the classification of products referred to in Article 1 (1) of this Regulation within the combined nomenclature (CN) in order to classify them in the appropriate categories. Article 3 The Commission shall inform China of any changes in the combined nomenclature (CN) on their adoption by the competent authorities of the Community. Article 4 The Commission shall inform the competent authorities of China of any decisions adopted in accordance with the procedures in force in the Community relating to the classification of products subject to this Regulation, within one month at the latest of their adoption. Such communication shall include: (a) a description of the products concerned; (b) the relevant category, and the combined nomenclature (CN) code; (c) the reasons which have led to the Decision. Article 5 1. Where a classification decision adopted in accordance with current Community procedures results in a change of classification practice or a change in category of any product subject to this Regulation, the competent authorities of the Member States shall provide 30 days' notice, from the date of (1) OJ N° L 256, 7. 9. 1987, p. 1. the Community's notification, before the decision is put into effect. 2. Products shipped before the date of the application of the decision shall remain subject to earlier classification practice, provided that the goods in question are presented for importation within 60 days of that date. Article 6 Where a classification decision adopted in accordance with the established Community procedures referred to in Article 5 of this Annex involves a category of products subject to a quantitative limit, the Commission shall, without delay, initiate consultations in accordance with Article 15 of this Regulation, in order to reach an agreement on the necessary adjustments to the relative quantitative limits provided for in Annex III to this Regulation. Article 7 1. Without prejudice to any other provision on this subject, where the classification indicated in the documentation necessary for importation of the products covered by this Regulation differs from the classification determined by the competent authorities of the Member State into which they are to be imported, the goods in question shall be provisionally subject to the import regime which, in accordance with the provisions of this Regulation, is applicable to them on the basis of the classification determined by the aforementioned authorities. 2. Member States shall inform the Commission without delay of the cases referred to in paragraph 1 and the Commission shall notify the competent authorities of China of the details of the case in question. 3. Member States, at the time of the communication referred to in paragraph 2, shall specify if, following the application of the provisions of paragraph 1, the quantities of the products which are the subject of divergence have been provisionally debited against a quantitative limit laid down for a category of products other than that indicated in the export licence referred to in Article 11 of this Annex. 4. The Commission shall notify the competent authorities of China of the provisional debits referred to in paragraph 3, within 30 days of the date of such provisional debit. Article 8 In the cases referred to in Article 7 of this Annex, as well as in those cases of a similar nature raised by the competent authorities of China, the Commission, if necessary and in accordance with the procedure provided for in Article 15 of this Regulation, shall enter into consultations with China, in order to reach agreement on the classification definitively applicable for the products causing the divergence. Article 9 The Commission, in agreement with the competent authorities of the Member State or States of importation and of China, may, in the cases referred to in Article 8 of this Annex, determine the classification definitively applicable to the products causing the divergence. Article 10 When a case of divergence referred to in Article 7 cannot be resolved in accordance with Article 9 of this Annex, the Nomenclature Committee is required, in accordance with the provisions of the Regulation setting up the aforesaid Committee, to establish definitvely the classification of the goods concerned. PART II Double-checking system Article 11 1. The competent government authorities of China shall issue an export licence in respect of all consignments of textile products subject to the quantitative limits established in Annex III up to the level of the said limits and the corresponding shares. 2. The original of the export licence shall be presented by the importer for the purposes of the issue of the import authorization (1) referred to in Article 14. Article 12 1. The export licence shall conform to the specimen appended to this Annex and may also contain a translation into another language. It shall certify ,inter alia, that the quantity of goods in question has been set off against the quantitative limit and the share established for the category of the product concerned. 2. Each export licence shall cover only one of the categories of products listed in Annex III to this Regulation. Article 13 Exports shall be set off against the quantitative limits and shares established for the year in which the products covered by the export licence have been shipped within the meaning of Article 3 (3) of this Regulation. (1) In this Annex, the term 'import authorization' shall apply both to import authorization or equivalent document referred to in Article 3 (2) of this Regulation. Article 14 1. The authorities of the Member State designated on the export licence as the country of destination of the goods concerned shall issue an import licence automatically within a maximum of five working days of the presentation by the importer of the original of the corresponding export licence. This presentation must be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped. 2. The import authorizations shall be valid for six months from the date of their issue. 3. The import authorizations shall be valid only in the Member State which issued them. 4. The importer's declaration or request to obtain the import authorization shall contain: (a) the names of the importer and exporter; (b) the country of origin of the products or, when different, the country of export or of purchase; (c) a description of the products, including: - their commercial designation, - a description of the products in accordance with the combined nomenclature (CN) code; (d) the appropriate category and the quantity in the appropriate unit as indicated in Annex III to this Regulation for the products in question; (e) the value of the products, as indicated in box 12 of the export licence; (f) where appropriate, dates of payment and delivery and a copy of the bill of lading and of the purchase contract; (g) date and number of the export licence; (h) any internal code used for administrative purposes; (i) date and signature of importer. 5. Importers shall not be obliged to import the total quantity covered by an import authorization in a single consignment. Article 15 The validity of import authorizations issued by the authorities of the Member States shall be subject to the validity of and the quantities indicated in the export licences issued by the competent authorities of China on the basis of which the import authorizations have been issued. Article 16 Import authorizations or equivalent documents shall be issued without discrimination to any importer in the Community wherever the place of this establishment may be in the Community, without prejudice to compliance with the other conditions required under current rules. Article 17 1. If the competent authorities of a Member State find that the total quantities covered by export licences issued by China for a particular category in any agreement year exceed the share established for that category, the said authorities shall suspend the further issue of import authorization or documents. In this event, these authorities shall immediately inform the authorities of China and the Commission, and the special consultation procedure set out in Article 15 of this Regulation shall be initiated forthwith by the Commission. 2. Exports of China not covered by export licences issued in accordance with the provisions of this Annex shall be refused the issue of import authorization or documents by the competent authorities of a Member State. However, if in exceptional cases the import of such products is allowed into a Member State by the competent authorities, the quantities involved shall not be set off against the appropriate share without the express agreement of the competent authorities of China. PART III Form and production of export certificates and certificates of origin, and common provisions Article 18 1. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be in ink and in printscript. These documents shall measure 210 × 297 mm. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m$. Each part shall have a printed guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye. If the documents have several copies only the top copy, which is the original, shall be printed with the guilloche pattern background. This copy shall be clearly marked as 'original' and the other copies as 'copies'. Only the original shall be accepted by the competent authorities in the Member States as being valid for the provisions of export in accordance with the provisions of this Regulation. 2. Each document shall bear a standardized serial number, whether or not printed, by which it can be identified. 3. This number shall be composed of the following elements: - two letters identifying China as follows: CN, - two letters identifying the Member State of destination as follows: BL = Benelux DE = Federal Republic of Germany DK = Denmark EL = Greece ES = Spain FR = France GB = United Kingdom IR = Ireland IT = Italy PT = Portugal, - a one-digit number identifying the quota year, corresponding to the last figure in the respective Agreement year, e.g. 9 for 1989, - a two-digit number identifying the particular issuing office concerned in the exporting country, - a five-digit number running consecutively from 00001 to 99999 allocated to the respective Member State of destination. Article 19 The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases they shall bear the endorsement 'délivré à posteriori' or 'issued retrospectively'. Article 20 In the event of theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the competent governmental authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate licence or certificate issued in this way shall bear the endorsement 'duplicata' or 'duplicate'. The duplicate shall bear the date of the original licence or certificate. ANNEX VI referred to in Article 4 (1) Cottage industry and folklore products 1. The exemption provided for in Article 4 (1) of the Regulation in respect of the cottage industry products shall apply only to the following products: (a) fabrics woven on hand- or foot-operated looms, being fabrics of a kind traditionally made in the cottage industry of China; (b) garments or other textile articles of a kind traditionally made in the cottage industry of China obtained manually from the fabrics referred to above and sewn exclusively by hand without the aid of any machine; (c) traditional folklore textile products of China made by hand in the cottage industry of China as defined in a list agreed between both parties, and contained in the Annex to Protocol B to the Agreement. 2. Exemption shall be granted only for products accompanied by a certificate issued by the competent Chinese authorities in accordance with the specimen attached to this Annex. Such certificates shall state the grounds on which exemption is based and shall be accepted by the competent Community authorities provided that they are satisfied that the products concerned conform to the conditions set out in Protocol B to the Agreement. Certificates covering the products referred to in paragraph 1 (c) shall bear a conspicuous stamp: 'FOLKLORE'. In case of divergent opinion between China and the competent Community authorities at the point of entry into the Community as to the nature of such products, consultations shall be held within one month with a view to resolving such divergences. Should imports of any of the above products reach such proportions as to cause difficulties to the Community, the two Parties shall open consultations forthwith in accordance with the procedure laid down in Article 16 of the Agreement with a view to finding a quantitative solution to the problem. ANNEX VII referred to in Article 6 (3) Outward processing traffic Article 1 Re-imports into the Community of textile products referred to in the table attached to this Annex, effected in accordance with the Regulations on economic outward processing in force in the Community, shall not be subject to the quantitative limits referred to in Article 3 of the Regulation where they are subject to specific quantitative limits given in the table and have been re-imported into the Member State concerned after processing in China. Article 2 The specific Community quantitative limits laid down in the table attached to this Annex shall be broken down by Member State in accordance with the procedure laid down in Article 16 of the Regulation. Article 3 Re-imports not covered by this Annex may be subject to specific quantitative limits in accordance with the procedure laid down in Article 16 of the Regulation, provided that the products concerned are subject to the quantitative limits laid down in Article 3 of this Regulation. Article 4 1. Transfers between categories and advance use or carry-over of portions of specific quantitative limits from one year to another may be carried out in accordance with the procedure laid down in Article 16 of the Regulation. 2. However, the competent authorities in the Member States may carry out automatic transfers within the following limits: - transfer between categories for up to 20 % of the share established for the category to which the transfer is made, - carry-over of a specific quantitative limit from one year to another for up to 10,5 % of the share established for the actual year of utilization, - advance use of the specific quantitative limits for up to 7,5 % of the share established for the actual year of utilization. 3. Portions of any specific quantitative limits not used in one Member State may be reallocated to another Member State in accordance with the procedure laid down in Article 16 of the Regulation. 4. Member States which find that they need additional imports or which consider that their share is unlikely to be used in full shall inform the Commission thereof. They may ask that the specific quantitative limits be adjusted in accordance with the procedure laid down in Article 16 of the Regulation. 5. The Commission shall inform China of any measures taken pursuant to the preceding paragraphs. Article 5 Debiting against a specific quantitative limit as laid down in Article 1 shall be carried out by the competent authorities of the Member States at the time of issue of the prior authorizations provided for in the Regulation on economic outward processing in force in the Community. A specific quantitative limit shall be debited for the year in which the prior authorization is issued. Article 6 The certificate of origin shall be issued by the competent governmental authorities in the supplier country concerned, in accordance with the Community legislation in force and the provisions of Annex IV for all products covered by this Annex. Article 7 The competent authorities of the Member States shall supply the Commission with the names and addresses of the authorities in the Member States competent to issue the prior authorizations referred to in Article 4 together with specimens of the stamp impressions used by them. Appendix The product descriptions set out in Annex I are repeated in this table in a shortened version (Quantitative outward processing trade objectives) >TABLE>

COUNCIL REGULATION (EEC) N° 2135/89

of 12 June 1989

on common rules for imports of certain textile products originating in the People's Republic of China

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 113 thereof,

Having regard to the proposal from the Commission,

Whereas in 1988 the European Economic Community negotiated an Agreement with the People's Republic of China (hereinafter referred to as 'China') on trade in textile products (1); (hereinafter referred to as 'the Agreement');

Whereas the Community and China have decided that the provisions of this Agreement shall be fully implemented as from 1 January 1989 until 31 December 1992;

Whereas it is necessary, with a view to implementing the provisions of the Agreement to establish new specific common rules for imports of certain textile products originating in China;

Whereas it is necessary to ensure that the purpose of the Agreements should not be obstructed by defletion of trade and that it is therefore necessary to determine the way in which the origin of the products in question is controlled and the methods by which the appropriate administrative cooperation is achieved;

Whereas compliance with the quantitative limits on exports established under the Agreement is ensured by a double-checking system; whereas the effectiveness of these measures depends on the Community establishing a set of quantitative limits to be applied to imports of all products from China which are subject to quantitative limitations;

Whereas products entering the customs territory of the Community under the arrangements for inward processing or other temporary admission arrangements and intended for re-exportation out of the said territory in the same state or after processing should not be subject to such quantitative limits;

(1) OJ N° L 380, 31. 12. 1988, p. 1.

Whereas special rules are required for products re-imported under the arrangements for economic outward processing;

Whereas, in order to apply quantitative limits in conformity with the Agreement, it is necessary to establish a special management procedure; whereas it is desirable that such common management system be decentralized by allocating the quantitative limits among the Member States, and that the import authorizations be issued by the Member States' authorities in accordance with the double-checking system defined in the Agreement;

Whereas, in order to ensure the best possible utilization of the Community quantitative limits, they should be allocated in accordance with the requirements of the Member States and with the quantitative objectives established by the Council; whereas, however, the extent of the disparitities existing in the conditions for importation of these products into the Member States and the particularly sensitive position of the Community textile industry mean that the said conditions can be standardized only gradually; whereas, for these reasons, allocation of supplies cannot immediately be effected on the basis of requirements alone;

Whereas the Agreement provides for the possibility of automatic transfers between the shares allocated to the Member States within the Community quantitative limit on the basis of increasing percentages from the first year of application of the Agreement onwards, with a view in particular to giving China more flexibility in using each Community quantitative limit;

Whereas it is also necessary to maintain efficient and rapid procedures for altering Community quantitative limits and their allocation to take account of the development of trade flows, needs for additional imports and the Community's obligations under the Agreement;

Whereas, in respect of certain textile products under limitations, the Agreement provides for a consultation procedure with China whereby a limit to the growth of imports of a product may be agreed where significant use of

its related quantitative limit follows a marked under-use; whereas China also agreed to limit its exports, from the time of the consultation request, to a level established in the Agreement; whereas, in the absence of agreement within the specified time limits, China agreed to limit the growth in its exports to a level established in the Agreement;

Whereas, in the case of products not subject to quantitative limitation, the Agreement provides for a consultation procedure whereby, in the event that the volume of imports of a given category of products into the Community or one of its regions exceeds a certain threshold, agreement can be reached with China on the introduction of quantitative limits; whereas China also undertakes to limit its exports from the date of a request for such consultations, at the level indicated by the Community; whereas, if no agreement is reached with China within the period stipulated, the Community may introduce quantitative limits at a specific annual or multiannual level;

Whereas the Agreement established a system of cooperation between the Community and China with the aim of preventing circumvention by means of transhipment, re-routing or other means; whereas a consultation procedure is established under which an agreement can be reached with China on an equivalent adjustment to the relevant quantitative limit when it appears that the Agreement has been circumvented; whereas China also agreed to take the necessary measures to ensure that any adjustments could be rapidly applied; whereas, in the absence of agreement with China within the time limit provided, the Community may, where clear evidence of circumvention is provided apply the equivalent adjustment;

Whereas, in order, inter alia, to comply with time limits set in the Agreement, it is necessary to establish a rapid and efficient procedure for introducing such quantitative limits and concluding such Agreements with China;

Whereas, for practical reasons, it is convenient to make use, for the purposes enumerated above, of the management committee already set up by Regulation (EEC) N° 4136/86 (1);

Whereas the provisions of this Regulation must be applied in conformity which the Community's international obligations, in particular with those arising from the Agreement,

HAS ADOPTED THIS REGULATION:

1. This Regulation shall apply to imports into the Community of the textile products referred to in Annex I and originating in China.

2. The classification of products listed in Annex I shall be based on the combined nomenclature, without prejudice to

(1) OJ N° L 387, 31. 12. 1986, p. 42.

Article 3 (6). The procedures for the application of this paragraph are laid down in Annex V.

3. Subject to the provisions of this Regulation, the importation into the Community of the textile products referred to in paragraph 1 shall not be subject to quantitative restrictions or measures having equivalent effect to such restrictions.

1. The origin of the products referred to in Article 1 (1) shall be determined in accordance with the rules in force in the Community.

2. The procedures for control of the origin of the products referred to in Article 1 (1) are laid down in Annex IV.

1. The importation into the Community of the textile products listed in Annex III, originating in China and shipped between 1 January 1989 and 31 December 1992 shall be subject to the annual quantitative limits laid down in that Annex.

2. The release for free circulation in the Community of imports subject to the quantitative limits referred to in paragraph 1 shall be subject to the presentation of an import authorization or equivalent document issued by the Member States' authorities in accordance with Article 11.

3. The authorized imports shall be charged against the quantitative limits laid down for the year in which the products are shipped in China. In this Regulation, shipment of products shall be considered to have taken place on the date of their loading onto the exporting aircraft, vehicle or vessel.

4. Imports of products not subject to quantitative limitation before 1 January 1989 which were in the course of shipment to the Community before that date shall not be subject to the quantitative limits referred to in this Article, provided that they were shipped in China before 1 January 1989.

Imports of products not subject to quantitative limitations before 1 January 1989, shipped in China on or after 1 January 1989, shall be subject to and charged against the quantitative limits referred to in paragraph 1. These limits shall not, however, prevent the importation of such products as were shipped in China between 1 January 1989 and the date of entry into force of this Regulation.

5. The release for free circulation of products the importation of which was subject to quantitative limitation before 1 January 1989 and which were shipped before the said date shall continue from that date to be subject to the presentation of the same import documents, and to the same import conditions, as before 1 January 1989.

6. The definition of quantitative limits laid down in Annex III and the categories of products to which they apply shall be adapted in accordance with the procedure laid down in Article 16 where this proves necessary to ensure that any subsequent amendment to the combined nomenclature or any decision amending the classification of such products does not result in a reduction of such quantitative limits.

7. The quantitative limits fixed in Annex III may be adapted in accordance with the procedure laid down in Article 16 in order to take into account changes in classification occurring following the entry into force of the combined nomenclature.

1. The quantitative limits referred to in Article 3 shall not apply to the cottage industry and folklore products defined in Annex VI which are accompanied on importation by a certificate issued by the competent authorities of China in accordance with the provisions of Annex VI and which fulfil the other conditions laid down therein.

2. The release for free circulation in the Community of the textile products referred to in paragraph 1 and originating in China shall be granted only for those products covered by an import document issued by the competent authorities of the Member States, provided that similar machine-made products are subject to the quantitative limits referred to in Article 3.

The said import document shall be issued automatically within a maximum of five working days from the date of presentation by the importer of the certificate referred to in paragraph 1, issued by the competent authorities of China.

The import document shall be valid for six months and shall state the grounds for exemption as given in the certificate referred to in paragraph 1.

Article 5

1. Where the Commission finds, in accordance with the procedure laid down in Article 16, that difficulties have arisen in the Community or any of its regions as a result of a sudden and substantial increase in one calendar year by comparison with the preceding year in imports of a Group I category product subject to the quantitative limits laid down in Article 3, originating in China, it may, with the approval of the Committee under the procedure set out in Article 16, open consultations with China, in accordance with the procedure set out in Article 15 with a view to seeking naturally acceptable solutions to the difficulties.

2. The consultations with the supplier country concerned which are provided for in paragraph 1 may lead to the conclusion of an arrangement between that supplier country and the Community or the adoption of joint conclusions.

3. The arrangements provided for in paragraph 2 shall be concluded and the measures provided for in the arrangements or joint conclusions referred to in paragraph 2 shall be adopted in accordance with the procedure laid down in Article 16.

1. The quantitative limits referred to in Article 3 shall not apply to products placed in a free zone or imported under

the arrangements governing warehouses, temporary importation or inward processing (suspension system).

Where the products referred to in the preceding subparagraph are subsequently released for free circulation, either in the unaltered state or after working or processing, Article 3 (2) shall apply and the products so released shall be charged against the quantitative limit established for the year for which the export licence was issued.

2. Where the authorities in the Member States establish that imports of textile products have been charged against a quantitative limit fixed pursuant to Article 3 and that these products have subsequently been re-exported outside the customs territory of the Community, they shall inform the Commission within four weeks of the quantities concerned and issue additional import authorizations for the same products and the same quantities in accordance with Article 3 (2).

Imports effected under cover of such authorizations shall not be charged against the quantitative limit for the current year or the following year.

Subject to the conditions laid down in Annex VII, re-imports into the Community of textile products after processing in the countries listed in that Annex shall not be subject to the quantitative limits referred to in Article 3 provided that they are effected in accordance with the Regulations on economic outward processing in force in the Community.

Article 7

1. The Community quantitative limits shall be allocated in such a way as to ensure the best possible utilization of these quantitative limits and to attain progressively a more balanced penetration of the markets by means of improved burden sharing among the Member States.

2. The allocation of the Community quantitative limits shall be adjusted in accordance with the procedure laid down in Article 15 and according to the criteria established in paragraph 1 where this proves necessary, particularly in view of trends in patterns of trade, in order to ensure the best possible utilization of the limits.

3. Without prejudice to the provisions of paragraph 2, after 1 June each year China may, after notifying the Commission in advance, transfer the unused quantities of the

shares allocated to Member States of a Community quantitative limit provided for in Article 3 to the shares of the same limit allocated to other Member States, provided that less than 80 % of the share of the Member State from which the transfer is being made has been used and subject to the following percentages of the share to which the transfer is being made:

- 4 % in 1989,

- 8 % in 1990,

- 16 % in 1991.

The percentage in the fourth year of application of the Agreement shall be determined following consultations between the Parties.

4. In cases referred to in paragraph 1 which are of particular economic importance to one or more Member States, the Commission shall, however, refer proposals for amendment of the allocation directly to the Council. The Council shall act upon such proposals in accordance with Article 113 of the Treaty.

Article 8

In order that the Community textile and clothing industry may benefit from the utilization of all the quantitative limits established in Annex III and in particular those established for categories 2, 3 and 37, and in order to contribute to the improvement of supplies to these industries of raw silk, silk waste, angora and cashmere, the Commission shall, at the request of one or more Member States, submit to the Chinese authorities before 1 December of each Agreement year a list of interested manufacturing and processing companies and, where appropriate, the quantities of products requested by the companies concerned.

Article 9

1. China may, after notifying the Commission in advance, utilize the shares allocated to Member State in the following ways:

(a) Advance utilization during any given year of a portion of a share established for the following year shall be authorized for each category of products up to 5 % of the share for the year of actual utilization.

Such advance imports shall be deducted from the corresponding shares established for the following year.

(b) Carry-over of amounts not utilized during any given year to the corresponding share for the following year shall be authorized up to 7 % of the share for the year of actual utilization.

(c) Transfers of quantities in group I categories shall be made only as follows:

- transfers from category 1 to categories 2 and 3 shall be authorized up to 7 % of the share established for the category to which the transfer is made,

- transfers between categories 2 and 3 are governed by the provisions of the Appendix to Annex III,

- transfers between categories 4, 5, 6, 7 and 8 shall be authorized up to 7 % of the share established for the category to which the transfer is made.

Transfers of quantities into the different categories in group II or III may be made from any category in group I, II or III subject to a maximum of 7 % of the share established for the category to which the transfer is made.

The table of equivalence applicable to the abovementioned transfers is given in Annex I.

(d) The cumulative application of points (a), (b) and (c) may not, in the course of any given year, cause a limit established for the category in question to be exceeded by more than 17 %.

2. In the event of recourse by China to the provisions of paragraph 1, the Commission shall notify the authorities of the Member State concerned, which shall authorize the imports in question in accordance with the double-checking system defined in Annex V.

3. Where a Member State's share has been increased by the application of paragraph 1 above or of Article 10, or where further possibilities for imports into that Member State have been created under Article 10, such increases or further import possibilities shall not be taken into account for the purposes of applying paragraph 1 in the current year or subsequent years.

1. Member States which find that they require additional imports for their internal consumption or which consider that their share may not be fully utilized shall notify the Commission accordingly.

2. The quantitative limits laid down in Article 3 may be increased in accordance with the procedure laid down in Article 16 where it appears that additional imports are required.

3. As the request of a Member State which finds that it requires additional imports, either on the occasion of fairs or where it has issued import authorizations or equivalent documents for up to 80 % of its national share, the Commission may, after oral or written consultations with the Member States within the Committee referred to in Article 16, open up additional possibilities for imports into that Member State.

In an emergency, the Commission shall open consultations within the Committee within five working days following

receipt of the request from the Member State concerned and shall take a decision within 15 working days calculated from the same date.

Article 11

1. The authorities of the Member States shall issue the import authorizations or equivalent documents provided for in Article 3 (2) up to the amount of their shares, taking into account the measures taken pursuant to Articles 5, 7, 9 and 10.

2. The import authorizations or equivalent documents shall be issued in accordance with Annex V.

3. The quantities of products covered by the import authorizations or equivalent documents provided for in Article 3 shall be charged against the share of the Member State which issued those authorizations or documents.

4. The competent authorities of the Member State shall cancel import authorizations or equivalent documents already issued in cases where the corresponding export licences have been withdrawn or cancelled by the competent authorities in China. However, if the competent authorities of a Member State have not been informed by the competent authorities of China of the withdrawal or cancellation of an export licence until after the related products have been imported into such Member State, the quantities in question shall be set off against the Member State's quota share for the year during which shipment of products took place.

1. The importation into the Community of textile products listed in Annex I, originating in China and not subject to the quantitative limits referred to in Article 3, shall be subject to a system of administrative control.

2. Should imports into the Community of products falling within any given category, referred to in paragraph 1, not subject to the arrangements laid down in Annex VII and originating in China exceed, in relation to the preceding calendar year's total imports into the Community of products in the same category, the percentages indicated below, such imports may be made subject to quantitative limits under the conditions laid down in this Article:

- for all categories of group II products: 5 %,

- for all categories of group III products: 10 %.

These arrangements may be limited to imports into specific regions of the Community.

3. Should the imports referred to in paragraph 2 into a given region of the Community exceed, in relation to the total quantities calculated for the whole Community according to the percentage specified in paragraph 2, the percentage set

for that region in the table below, such imports may be made subject to quantitative limits in the region in question:

Germany25,5 %,

Benelux9,5 %,

France16,5 %,

Italy13,5 %,

Denmark2,7 %,

Ireland0,8 %,

United Kingdom21,0 %,

Greece1,5 %,

Spain7,5 %,

Portugal1,5 %.

4. Paragraphs 2 and 3 shall not apply where the percentages specified therein have been reached as a result of a fall in total imports into the Community, and not as a result of an increase in exports of products originating in China.

5. Where the Commission finds, in accordance with the procedure laid down in Article 16, that the conditions set out in paragraphs 2 and 3 are fulfilled and considers that a given category of products should be made subject to a quantitative limit, with the concurring opinion of the Committee under the procedure in Article 16:

(a) it shall open consultations with China, in accordance with the procedure specified in Article 15, with a view to reaching an agreement or joint conclusions on a suitable level of limitation for the category of products in question;

(b) pending a mutually satisfactory solution, the Commission shall, as a general rule, request China to limit exports of the products in the category concerned to the Community, or to the region or regions of the Community market specified by the Community for a provisional period of three months from the date on which the request for consultation is made. Such provisional limit shall be established at 25 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2 and gave rise to the request for consultation or 25 % of the level resulting from the application of the formula set out in paragraph 2, whichever is the higher;

(c) it may, pending the outcome of the requested consultations, apply to the imports of the category of products in question quantitative limits identical to those requested of China pursuant to point (b). These measures shall be without prejudice to the definitive arrangements to be made by the Community, taking into account the results of the consultations.

(d) The Commission shall refer urgent cases to the Committee provided for in Article 16 within five working days of receipt of the request from the Member State or States setting out the reasons for urgency and

take a decision within five working days of the end of the Committee's deliberations.

(e) Measures taken pursuant to this paragraph shall be the subject of a Commission communication published without delay in the Offical Journal of the European Communities.

The consultations with China which are provided for in paragraph 5 (a) may lead to the conclusion of an arrangement between that country and the Community or the adoption of joint conclusions on the introduction and level of quantitative limits.

Such arrangements or joint conclusions shall stipulate that the quantitative limits agreed be administered in accordance with a double-checking system.

7. Should the Community and China be unable in the course of consultations to reach a satisfactory solution within one month following the opening of consultations and, at the latest, within two months following notification of the request for consultations, the Community shall have the right to introduce a definitive quantitative limit at an annual level not lower than the level resulting from the application of the formula set out in paragraph 2 or 106 % of the level of imports reached during the calendar year preceding that in which imports exceeded the level resulting from the application of the formula set out in paragraph 2 and gave rise to the request for consultations, whichever is the higher.

8. The arrangements provided for in paragraph 6 shall be concluded and the measures provided for either in paragraphs 5 and 7 or in the arrangements or joint conclusions referred to in paragraph 6 shall be decided in accordance with the procedure laid down in Article 16.

9. The annual level of the quantitative limits laid down in accordance with paragraphs 5 to 8 may not be less than the level of imports into the Community or into the region or regions concerned in 1988, of products of the same category in China.

10. Where the development of total imports into the Community of a product which is subject to a quantitative limit fixed in accordance with paragraphs 5 to 8 renders it necessary, the annual level of that quantitative limit shall be increased, after consultation with China, in accordance with the procedure laid down in Article 15, to ensure compliance with the conditions set out in paragraphs 2 and 3.

11. The quantitative limits fixed in accordance with paragraphs 6 and 8 shall provide for an annual growth rate determined by mutual agreement with China in the context of the consultation procedure laid down in Article 15.

12. The quantitative limits established pursuant to paragraphs 5 to 8 shall not apply to products which have already been dispatched to the Community provided that they were shipped from China for export to the Community before the date of notification of the request for consultations.

13. The quantitative limits established pursuant to paragraphs 5 to 8 shall be administered in accordance with Articles 3, 4, 6, 7, 9, 10 and 11, save as otherwise provided in accordance with the procedure laid down in Article 16.

Article 13

1. For the textile products subject to the quantitative limits referred to in Article 3, Member States shall notify the Commission within the first 10 days of each month of the total quantities, in the appropriate units and by category of products, for which import authorizations have been issued during the preceding months.

2. For the textile products referred to in Annex VI and originating in China, Member States shall notify the Commission within the first 10 days of each month of the total quantities, in the appropriate units and by category of products, for which import documents have been issued in accordance with Article 4 (2) during the preceding month.

For the textile products referred to in Annexes I and II, Member States shall notify the Commission monthly, within 30 days of the end of each month, of the total quantities imported during that month, indicating the combined nomenclature code and using the units and, where appropriate, the supplementary units, used in that code. Imports shall be broken down according to the statistical procedures in force.

3. For products cited in paragraph 1 of Annex VI, Member States shall notify the Commission monthly, within 30 days following the end of each month, of the best information available on the total quantities imported during that month, in the appropriate units and by category of products.

4. In order to enable market trends in the products covered by this Regulation to be monitored, Member States shall communicate to the Commission, before 31 March each year, statistical data on exports for the preceding year. The statistical data relating to the production and consumption of each product shall be forwarded under arrangements to be determined subsequently pursuant to the procedure laid down in Article 16.

5. Where the nature of the products or particular circumstances so require, the Commission may, at the request of a Member State or on its own initiative, alter the time limits for communicating the abovementioned information under the procedure laid down in Article 16.

6. Member States shall notify the Commission under conditions set in accordance with the procedure laid down in Article 16 of all other particulars deemed under that procedure to be necessary in order to ensure compliance with the obligations agreed between the Community and China.

7. In the urgent cases referred to in Article 12 (5) (d), the Member State or States concerned shall send the necessary

import statistics and economic data to the Commission and the other Member States by telex.

Article 14

1. Where, following the enquiries carried out in accordance with the procedures established under Annex IV, the Commission notes that the information in its possession constitutes proof that products originating in China and subject to the quantitative limits referred to in Article 3 or introduced under Article 12 have been transhipped, re-routed or otherwise imported into the Community through circumvention of such quantitative limits and that there is need for the necessary adjustments to be made, it shall request that consultations be opened, in accordance with the procedure described in Article 15, so that agreement may be reached on an equivalent adjustment of the corresponding quantitative limits.

2. Pending the outcome of the consultations referred to in paragraph 1, the Commission may ask China to take the necessary precautionary steps to ensure that adjustments to the quantitative limits agreed on following such consultations may be carried out for the year in which the request for consultations was lodged, or for the following year if the quantitative limit for the current year is exhausted, where there is clear evidence of circumvention.

3. If the Community and China fail to arrive at a satisfactory solution within the period stipulated in Article 15 and if the Commission notes that there is clear evidence of circumvention, it shall deduct from the quantitative limits an equivalent volume of products originating in China, in accordance with the procedure laid down in Article 16.

4. The agreements provided for in paragraph 1 shall be concluded and the measures provided for either in paragraph 3 or in the agreements referred to in paragraph 1 shall be adopted in accordance with the procedure laid down in Article 16.

Article 15

1. The Commission shall conduct the consultations referred to in the Regulation other than those referred to in paragraph 2, in accordance with the following rules:

- the Commission shall notify China of the request for consultations,

- the request for consultations shall be followed within a reasonable period (and in any case not later than 15 days following the notification) by a statement setting out the reasons and circumstances which, in the Commission's opinion, justify the submission of such a request,

- the Commission shall initiate consultations, within one month at the latest of notification of the request, with a

view to reaching agreement or a mutually acceptable conclusion within one further month at the latest.

2. The consultations referred to in Article 5 shall be governed by the following rules:

- the Commission shall notify China of the request for consultations, together with a statement setting out the reasons and circumstances which, in the Commission's opinion, justify the submission of such a request,

- the Commission shall initiate consultations within 15 days at the latest of notification of the request, with a view to reaching agreement or a mutually acceptable conclusion within 15 days at the latest.

Article 16

1. The Committee referred to in this Article shall, for the purpose and period of application of this Regulation, be the Textile Committee set up under Article 15 of Regulation (EEC) N° 4136/86.

2. Where reference is made to the procedure laid down in this Article, the chairman, on his own initiative or at the request of a Member State, shall refer the matter to the Committee.

3. The Commission representative shall lay draft measures before the Committee. The Committee shall deliver an opinion on the draft measures within a period which may be fixed by the chairman in accordance with the degree of urgency of the matter. The Committee shall decide by the majority specified in Article 148 (2) of the EEC Treaty for the adoption of acts by the Council on a proposal from the Commission. In the case of votes within the Committee, the votes of Member States' representatives shall be weighted in accordance with the abovementioned Article. The chairman shall not vote.

4. (a) The Commission shall adopt the measures proposed where they are in conformity with the Committee's opinion.

(b) Where the measures proposed are not in conformity with the Committee's opinion, or where no opinion has been given, the Commission shall present to the Council, without delay, a proposal for the measures to be taken. The Council shall act by a qualified majority.

(c) Should the Council fail to take a decision within one month of the date on which the proposal was laid before it, the Commission shall adopt the proposed measures.

5. The chairman may, on his own initiative or at the request of one of the Member States' representatives, consult the Committee about any other matter relating to the operation of this Regulation.

Article 17

The Member States shall inform the Commission forthwith of all measures taken pursuant to this Regulation and of all laws, regulations or administrative provisions concerning arrangements for importation of the products covered by this Regulation.

Amendments to the Annexes to this Regulation which may be necessary to take into account the conclusion, amendment or expiry of agreements with third countries or amendments

made to Community rules on statistics, customs arrangements or common import arrangements shall be adopted in accordance with the procedure laid down in Article 16.

Article 19

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities.

It shall apply which effect from 1 January 1989 until 31 December 1992.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Luxembourg, 12 June 1989.

For the Council

The President

F. FERNANDEZ ORDOÑEZ

ANNEX I

PRODUCTS REFERRED TO IN ARTICLE 1 (1)

1. When the constitutive material of the products of categories 1 to 114 is not specifically mentioned, these products are to be taken to be made exclusively of wool or of fine hair, of cotton or of man-made fibres.

2. Garments which are not recognizable as being garments for men or boys or as being garments for women or girls are classified with the latter.

3. Where the expression 'babies' garments' is used, this is meant also to cover girls' garments up to and including commercial size 86.

GROUP I A

>TABLE>

GROUP I B

>TABLE>

GROUP II A

>TABLE>

GROUP II B

>TABLE>

GROUP III A

>TABLE>

(1)

(2)

(3)

(4)

(5)

48

(cont'd)

ex 5107 20 51

ex 5107 20 59

ex 5107 20 91

ex 5107 20 99

ex 5108 20 10

ex 5108 20 90

49

ex 5109 10 10

ex 5109 10 90

ex 5109 90 10

ex 5109 90 90

Yarn of sheep's or lambs' wool or of fine animal hair, put up for retail sale

50

ex 5111 11 00

ex 5111 19 10

ex 5111 19 90

ex 5111 20 00

ex 5111 30 10

ex 5111 30 30

ex 5111 30 90

ex 5111 90 10

ex 5111 90 91

ex 5111 90 93

ex 5111 90 99

ex 5112 11 00

ex 5112 19 10

ex 5112 19 90

ex 5112 20 00

ex 5112 30 10

ex 5112 30 30

ex 5112 30 90

ex 5112 90 10

ex 5112 90 91

ex 5112 90 93

ex 5112 90 99

Woven fabrics of sheep's or lambs' wool or of fine animal hair

51

ex 5203 00 00

Cotton, carded or combed

53

ex 5803 10 00

Cotton gauze

54

ex 5507 00 00

Staple artificial fibres, including waste, carded, combed or otherwise processed for spinning

55

ex 5506 10 00

ex 5506 20 00

ex 5506 30 00

ex 5506 90 10

ex 5506 90 91

ex 5506 90 99

Synthetic staple fibres, including waste, carded or combed or otherwise processed for spinning

56

ex 5508 10 90

ex 5511 10 00

ex 5511 20 00

Yarn of staple synthetic fibres (including waste), put up for retail sale

58

ex 5701 10 10

ex 5701 10 91

ex 5701 10 93

ex 5701 10 99

ex 5701 90 10

ex 5701 90 90

Carpets, carpetines and rugs, knotted (made up or not)

(1)

(2)

(3)

(4)

(5)

59

ex 5702 10 00

ex 5702 31 10

ex 5702 31 30

ex 5702 31 90

ex 5702 32 10

ex 5702 32 90

ex 5702 39 10

ex 5702 41 10

ex 5702 41 90

ex 5702 42 10

ex 5702 42 90

ex 5702 49 10

ex 5702 51 00

ex 5702 52 00

ex 5702 59 00

ex 5702 91 00

ex 5702 92 00

ex 5702 99 00

ex 5703 10 10

ex 5703 10 90

ex 5703 20 11

ex 5703 20 19

ex 5703 20 91

ex 5703 20 99

ex 5703 30 11

ex 5703 30 19

ex 5703 30 51

ex 5703 30 59

ex 5703 30 91

ex 5703 30 99

ex 5703 90 10

ex 5703 90 90

ex 5704 10 00

ex 5704 90 00

ex 5705 00 10

ex 5705 00 31

ex 5705 00 39

ex 5705 00 90

Carpets and other textile floor coverings, other than the carpets of category 58

60

ex 5805 00 00

Tapestries, hand-made, of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and needleworked tapestries (for example, petit point and cross stitch) made in panels and the like by hand

61

ex 5806 10 00

ex 5806 20 00

ex 5806 31 10

ex 5806 31 90

ex 5806 32 10

ex 5806 32 90

ex 5806 39 00

ex 5806 40 00

Narrow woven fabrics, and narrow fabrics (bolduc) consisting of warp without weft assembled by means of an adhesive, other than labels and similar articles of category 62

Elastic fabrics and trimmings (not knitted or crocheted), made from textile materials assembled from rubber thread

62

ex 5606 00 91

ex 5606 00 99

Chenille yarn (including flock chenille yarn), gimped yarn (other than metallized yarn and gimped horsehair yarn):

ex 5804 10 11

ex 5804 10 19

ex 5804 10 90

ex 5804 21 10

ex 5804 21 90

ex 5804 29 10

ex 5804 29 90

ex 5804 30 00

Tulle and other net fabrics but not including woven, knitted or

crocheted fabrics, hand or mechanically-made lace, in the piece, in

strips or in motifs

(1)

(2)

(3)

(4)

(5)

62

(cont'd)

ex 5807 10 10

ex 5807 10 90

Labels, badges and the like of textile materials, not embroidered, in the piece, in strips or cut to shape or size, woven

ex 5808 10 00

ex 5808 90 00

Braids and ornamental trimmings in the piece; tassels, pompoms and the like

ex 5810 10 10

ex 5810 10 90

ex 5810 91 10

ex 5810 91 90

ex 5810 92 10

ex 5810 92 90

ex 5810 99 10

ex 5810 99 90

Embroidery, in the piece, in strips or in motifs

63

ex 5906 91 00

ex 6002 10 10

ex 6002 10 90

ex 6002 30 10

ex 6002 30 90

ex 6001 10 00

ex 6002 20 31

ex 6002 43 19

Knitted or crocheted fabric of synthetic fibres containing by weight 5 % or more of elastomeric yarn and knitted or crocheted fabric containing by weight 5 % or more of rubber thread

Raschel lace and long-pile fabric of synthetic fibres

65

ex 5606 00 10

ex 6001 10 00

ex 6001 21 00

ex 6001 22 00

ex 6001 29 10

ex 6001 91 10

ex 6001 91 30

ex 6001 91 50

ex 6001 91 90

ex 6001 92 10

ex 6001 92 30

ex 6001 92 50

ex 6001 92 90

ex 6001 99 10

ex 6002 10 10

ex 6002 20 10

ex 6002 20 39

ex 6002 20 50

ex 6002 20 70

ex 6002 30 10

ex 6002 41 00

ex 6002 42 10

ex 6002 42 30

ex 6002 42 50

ex 6002 42 90

ex 6002 43 31

ex 6002 43 33

ex 6002 43 35

ex 6002 43 39

ex 6002 43 50

ex 6002 43 91

ex 6002 43 93

ex 6002 43 95

ex 6002 43 99

ex 6002 91 00

ex 6002 92 10

ex 6002 92 30

ex 6002 92 50

Knitted or crocheted fabric other than those of categories 38 A and 63, of wool, of cotton or of man-made fibres

(1)

(2)

(3)

(4)

(5)

65

(cont'd)

ex 6002 92 90

ex 6002 93 31

ex 6002 93 33

ex 6002 93 35

ex 6002 93 39

ex 6002 93 91

ex 6002 93 99

66

ex 6301 10 00

ex 6301 20 91

ex 6301 20 99

ex 6301 30 90

ex 6301 40 90

ex 6301 90 90

Travelling rugs and blankets, other than knitted or crocheted, of wool, of cotton or of man-made fibres

GROUP III B

>TABLE>

ANNEX II

PRODUCTS REFERRED TO IN ARTICLE 13 (2)

GROUP IV

>TABLE>

GROUP V

>TABLE>

ANNEX III

QUANTITATIVE LIMITS REFERRED TO IN ARTICLE 3 (1) In the case of the Federal Republic of Germany, 19 % of the quantitative limits prescribed in the Annex are reserved for use at the Berlin Fair, with the exception of the following categories: 18, 23, 26, 67, 73, 76 and 83

GROUP I A

>TABLE>

GROUP I B

>TABLE>

GROUP II A

>TABLE>

GROUP II B

>TABLE>

GROUP III A

>TABLE>

GROUP III B

>TABLE>

Appendix

>TABLE>

ANNEX IV

referred to in Articles 2 (2) and 14 (1)

PART I

Origin

Article 1

1. Products listed in Annex I, originating in China, may be imported into the Community in accordance with the arrangements established by this Regulation on production of a certificate of origin conforming to the specimen attached to Annex V.

2. The certificates of origin shall be issued by the competent governmental authorities of China if the products in question can be considered products originating in China within the meaning of the relevant rules in force in the Community.

3. However, products listed in Annex I other than those falling within groups I or II may be imported into the Community in accordance with the arrangements established by the Regulation on production of a declaration by the exporter or supplier on the invoice, or where there is no invoice, on another commercial document relating to the products in question, to the effect that the said products originate in China within the meaning of the relevant rules in force within the Community.

4. Where different criteria for determining origin are fixed in respect of products falling within a single category and a single tariff heading, the certificate or declaration must include a description of the goods which is sufficiently detailed to allow assessment of the criterion on the basis of which the certificate was issued or the declaration made.

Article 2

The discovery of slight discrepancies between the entries made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the product shall not ipso facto cast doubt upon the statements in the certificate.

Article 3

1. The certificates of origin form A and forms APR presented at the time of importation into the Community in order to obtain a tariff preference shall be accepted in place of the proof of origin stipulated in Article 1.

2. The proof of origin referred to in Article 1 shall not be required where goods are accompanied by a certificate conforming to the specimen and complying with the conditions set out in Annex VI to this Regulation.

3. Non-commercial imports exempt from production of the documents referred to in paragraph 1 in accordance with the provisions of the preferential arrangements concerned shall not be subject to the provisions of this Annex.

4. The conditions upon which this Annex shall apply to non-commercial imports other than those covered by paragraph 3 shall be adopted in accordance with the procedure specified in Article 14 of Regulation (EEC) N° 802/68 (1), as last amended by Regulation (EEC) N° 3860/87 (2).

Pending the implementation of these rules, the Member States may continue to apply the national rules in force in this field.

PART II

Administrative cooperation

Article 4

The Commission shall supply the Member States' authorities with the names and addresses of the authorities in China competent to issue certificates of origin and export licences together with specimens of stamps used by these authorities.

Article 5

1. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate of origin or export licence or as to the accuracy of the information regarding the true origin of the products in question.

In such cases the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the competent governmental authority in China giving, where appropriate, the reasons of form or substance for an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate of origin or export licence or copy thereof. The competent authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or the said licence are inaccurate.

(1) OJ N° L 148, 26. 6. 1968, p. 1.

(2) OJ N° L 363, 23. 12. 1987, p. 3.

2. The provisions of paragraph 1 above shall also be applicable to subsequent verifications of the declarations of origin referred to in Article 1 (3) of this Annex.

3. The results of the subsequent verificiations carried

out in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the Community within three months at the latest.

The information communicated shall indicate whether the disputed certificate or licence or declaration applies to the goods actually exported and whether the goods are eligible for export to the Community under this Regulation. The competent authorities of the Community may also request copies of all documentation necessary to determine the facts fully and, in particular, the true origin of the goods (1).

4. Should such verifications reveal abuse or major irregularities in the use of declarations of origin, the Member State concerned shall inform the Commission of this fact. The Commission shall pass the information on to the other Member States.

As the request of a Member State or at the initiative of the Commission, the Committee on Origin shall, as soon as possible and in accordance with the procedure specified in Article 13 or Regulation (EEC) N° 802/68, examine whether it is desirable to require the production of a certificate of origin, in accordance with Article 1 (1) and (2), in respect of the products concerned.

The decision shall be taken in accordance with the procedure specified in Article 14 of Regulation (EEC) N° 802/68.

5. Random recourse to the procedure specified in this Article shall not constitute an obstacle to the release for home use of the products in question.

Article 6

1. Where the verification procedure referred to in Article 5 or where information available to the competent authorities in the Community indicates that the provisions of this Regulation are being contravened, the said authorities shall request China to carry out appropriate enquiries or arrange for such enquiries to be carried out concerning operations which are or appear to be in contravention of the provisions of this Regulation. The results of these enquiries shall be communicated to the competent authorities of the Community together with any other pertinent information enabling the true origin of the goods to be determined.

2. In pursuance of the action taken under the terms of this Annex, the competent authorities of the Community may exchange any information with the competent governmental authorities of China which is considered of use in preventing the contravention of the provisions of this Regulation.

3. Where it is established that the provisions of this Regulation have been contravened, the Commission, acting according to the procedure laid down in Article 15 of this Regulation may agree with China to take such measures as are necessary to prevent recurrence of such contravention.

(1) For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept for at least two years by the competent governmental authority in China.

ANNEX V

referred to in Articles 1 (2) and 9 (2)

PART I

Classification

Article 1

The classification of the textile products referred to in

Article 1 (1) of this Regulation is based on the combined nomenclature.

Article 2

On the initiative of the Commission or of a Member State, the Nomenclature Committee established by Council Regulation (EEC) N° 2658/87 (1) will examine urgently, in conformity with the provisions of the aforementioned Regulation, all questions concerning the classification of products referred to in Article 1 (1) of this Regulation within the combined nomenclature (CN) in order to classify them in the appropriate categories.

Article 3

The Commission shall inform China of any changes in the combined nomenclature (CN) on their adoption by the competent authorities of the Community.

Article 4

The Commission shall inform the competent authorities of China of any decisions adopted in accordance with the procedures in force in the Community relating to the classification of products subject to this Regulation, within one month at the latest of their adoption. Such communication shall include:

(a) a description of the products concerned;

(b) the relevant category, and the combined nomenclature (CN) code;

(c) the reasons which have led to the Decision.

Article 5

1. Where a classification decision adopted in accordance with current Community procedures results in a change of classification practice or a change in category of any product subject to this Regulation, the competent authorities of the Member States shall provide 30 days' notice, from the date of

(1) OJ N° L 256, 7. 9. 1987, p. 1.

the Community's notification, before the decision is put into effect.

2. Products shipped before the date of the application of the decision shall remain subject to earlier classification practice, provided that the goods in question are presented for importation within 60 days of that date.

Article 6

Where a classification decision adopted in accordance with the established Community procedures referred to in

Article 5 of this Annex involves a category of products subject to a quantitative limit, the Commission shall, without delay, initiate consultations in accordance with Article 15 of this Regulation, in order to reach an agreement on the necessary adjustments to the relative quantitative limits provided for in Annex III to this Regulation.

Article 7

1. Without prejudice to any other provision on this subject, where the classification indicated in the documentation necessary for importation of the products covered by this Regulation differs from the classification determined by the competent authorities of the Member State into which they are to be imported, the goods in question shall be provisionally subject to the import regime which, in accordance with the provisions of this Regulation, is applicable to them on the basis of the classification determined by the aforementioned authorities.

2. Member States shall inform the Commission without delay of the cases referred to in paragraph 1 and the Commission shall notify the competent authorities of China of the details of the case in question.

3. Member States, at the time of the communication referred to in paragraph 2, shall specify if, following the application of the provisions of paragraph 1, the quantities of the products which are the subject of divergence have been provisionally debited against a quantitative limit laid down for a category of products other than that indicated in the export licence referred to in Article 11 of this Annex.

4. The Commission shall notify the competent authorities of China of the provisional debits referred to in paragraph 3, within 30 days of the date of such provisional debit.

Article 8

In the cases referred to in Article 7 of this Annex, as well as in those cases of a similar nature raised by the competent authorities of China, the Commission, if necessary and in

accordance with the procedure provided for in Article 15 of this Regulation, shall enter into consultations with China, in order to reach agreement on the classification definitively applicable for the products causing the divergence.

Article 9

The Commission, in agreement with the competent authorities of the Member State or States of importation and of China, may, in the cases referred to in Article 8 of this Annex, determine the classification definitively applicable to the products causing the divergence.

Article 10

When a case of divergence referred to in Article 7 cannot be resolved in accordance with Article 9 of this Annex, the Nomenclature Committee is required, in accordance with the provisions of the Regulation setting up the aforesaid Committee, to establish definitvely the classification of the goods concerned.

PART II

Double-checking system

Article 11

1. The competent government authorities of China shall issue an export licence in respect of all consignments of textile products subject to the quantitative limits established in Annex III up to the level of the said limits and the corresponding shares.

2. The original of the export licence shall be presented by the importer for the purposes of the issue of the import authorization (1) referred to in Article 14.

Article 12

1. The export licence shall conform to the specimen appended to this Annex and may also contain a translation into another language. It shall certify ,inter alia, that the quantity of goods in question has been set off against the quantitative limit and the share established for the category of the product concerned.

2. Each export licence shall cover only one of the categories of products listed in Annex III to this Regulation.

Article 13

Exports shall be set off against the quantitative limits and shares established for the year in which the products covered by the export licence have been shipped within the meaning of Article 3 (3) of this Regulation.

(1) In this Annex, the term 'import authorization' shall apply both to import authorization or equivalent document referred to in Article 3 (2) of this Regulation.

Article 14

1. The authorities of the Member State designated on the export licence as the country of destination of the goods concerned shall issue an import licence automatically within a maximum of five working days of the presentation by the importer of the original of the corresponding export licence. This presentation must be effected not later than 31 March of the year following that in which the goods covered by the licence have been shipped.

2. The import authorizations shall be valid for six months from the date of their issue.

3. The import authorizations shall be valid only in the Member State which issued them.

4. The importer's declaration or request to obtain the import authorization shall contain:

(a)

the names of the importer and exporter;

(b)

the country of origin of the products or, when different, the country of export or of purchase;

(c)

a description of the products, including:

- their commercial designation,

- a description of the products in accordance with the combined nomenclature (CN) code;

(d)

the appropriate category and the quantity in the appropriate unit as indicated in Annex III to this Regulation for the products in question;

(e)

the value of the products, as indicated in box 12 of the export licence;

(f)

where appropriate, dates of payment and delivery and a copy of the bill of lading and of the purchase contract;

(g)

date and number of the export licence;

(h)

any internal code used for administrative purposes;

(i)

date and signature of importer.

5. Importers shall not be obliged to import the total quantity covered by an import authorization in a single consignment.

Article 15

The validity of import authorizations issued by the authorities of the Member States shall be subject to the validity of and the quantities indicated in the export licences issued by the competent authorities of China on the basis of which the import authorizations have been issued.

Article 16

Import authorizations or equivalent documents shall be issued without discrimination to any importer in the

Community wherever the place of this establishment may be in the Community, without prejudice to compliance with the other conditions required under current rules.

Article 17

1. If the competent authorities of a Member State find that the total quantities covered by export licences issued by China for a particular category in any agreement year exceed the share established for that category, the said authorities shall suspend the further issue of import authorization or documents. In this event, these authorities shall immediately inform the authorities of China and the Commission, and

the special consultation procedure set out in Article 15 of

this Regulation shall be initiated forthwith by the Commission.

2. Exports of China not covered by export licences issued in accordance with the provisions of this Annex shall be refused the issue of import authorization or documents by the competent authorities of a Member State.

However, if in exceptional cases the import of such products is allowed into a Member State by the competent authorities, the quantities involved shall not be set off against the appropriate share without the express agreement of the competent authorities of China.

PART III

Form and production of export certificates and certificates of origin, and common provisions

Article 18

1. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be in ink and in printscript. These documents shall measure 210 × 297 mm. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m$. Each part shall have a printed guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

If the documents have several copies only the top copy, which is the original, shall be printed with the guilloche pattern background. This copy shall be clearly marked as 'original' and the other copies as 'copies'. Only the original shall be accepted by the competent authorities in the Member States

as being valid for the provisions of export in accordance with the provisions of this Regulation.

2. Each document shall bear a standardized serial number, whether or not printed, by which it can be identified.

3. This number shall be composed of the following elements:

-

two letters identifying China as follows: CN,

-

two letters identifying the Member State of destination as follows:

BL

= Benelux

DE

= Federal Republic of Germany

DK

= Denmark

EL

= Greece

ES

= Spain

FR

= France

GB

= United Kingdom

IR

= Ireland

IT

= Italy

PT

= Portugal,

-

a one-digit number identifying the quota year, corresponding to the last figure in the respective Agreement year, e.g. 9 for 1989,

-

a two-digit number identifying the particular issuing office concerned in the exporting country,

-

a five-digit number running consecutively from 00001 to 99999 allocated to the respective Member State of destination.

Article 19

The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases they shall bear the endorsement 'délivré à posteriori' or 'issued retrospectively'.

Article 20

In the event of theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the competent governmental authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate licence or certificate issued in this way shall bear the endorsement 'duplicata' or 'duplicate'.

The duplicate shall bear the date of the original licence or certificate.

ANNEX VI

referred to in Article 4 (1)

Cottage industry and folklore products

1. The exemption provided for in Article 4 (1) of the Regulation in respect of the cottage industry products shall apply only to the following products:

(a) fabrics woven on hand- or foot-operated looms, being fabrics of a kind traditionally made in the cottage industry of China;

(b) garments or other textile articles of a kind traditionally made in the cottage industry of China obtained manually from the fabrics referred to above and sewn exclusively by hand without the aid of any machine;

(c) traditional folklore textile products of China made by hand in the cottage industry of China as defined in a list agreed between both parties, and contained in the Annex to Protocol B to the Agreement.

2. Exemption shall be granted only for products accompanied by a certificate issued by the competent Chinese authorities in accordance with the specimen attached to this Annex. Such certificates shall state the grounds on which exemption is based and shall be accepted by the competent Community authorities provided that they are satisfied that the products concerned conform to the conditions set out in Protocol B to the Agreement. Certificates covering the products referred to in paragraph 1 (c) shall bear a conspicuous stamp: 'FOLKLORE'. In case of divergent opinion between China and the competent Community authorities at the point of entry into the Community as to the nature of such products, consultations shall be held within one month with a view to resolving such divergences. Should imports of any of the above products reach such proportions as to cause difficulties to the Community, the two Parties shall open consultations forthwith in accordance with the procedure laid down in Article 16 of the Agreement with a view to finding a quantitative solution to the problem.

ANNEX VII

referred to in Article 6 (3)

Outward processing traffic

Article 1

Re-imports into the Community of textile products referred to in the table attached to this Annex, effected in accordance with the Regulations on economic outward processing in force in the Community, shall not be subject to the quantitative limits referred to in Article 3 of the Regulation where they are subject to specific quantitative limits given in the table and have been re-imported into the Member State concerned after processing in China.

Article 2

The specific Community quantitative limits laid down in the table attached to this Annex shall be broken down by Member State in accordance with the procedure laid down in Article 16 of the Regulation.

Article 3

Re-imports not covered by this Annex may be subject to specific quantitative limits in accordance with the procedure laid down in Article 16 of the Regulation, provided that the products concerned are subject to the quantitative limits laid down in Article 3 of this Regulation.

Article 4

1. Transfers between categories and advance use or carry-over of portions of specific quantitative limits from one year to another may be carried out in accordance with the procedure laid down in Article 16 of the Regulation.

2. However, the competent authorities in the Member States may carry out automatic transfers within the following limits:

- transfer between categories for up to 20 % of the share established for the category to which the transfer is made,

- carry-over of a specific quantitative limit from one year to another for up to 10,5 % of the share established for the actual year of utilization,

- advance use of the specific quantitative limits for up to 7,5 % of the share established for the actual year of utilization.

3. Portions of any specific quantitative limits not used in one Member State may be reallocated to another Member State in accordance with the procedure laid down in Article 16 of the Regulation.

4. Member States which find that they need additional imports or which consider that their share is unlikely to be used in full shall inform the Commission thereof. They may ask that the specific quantitative limits be adjusted in accordance with the procedure laid down in Article 16 of the Regulation.

5. The Commission shall inform China of any measures taken pursuant to the preceding paragraphs.

Article 5

Debiting against a specific quantitative limit as laid down in Article 1 shall be carried out by the competent authorities of the Member States at the time of issue of the prior authorizations provided for in the Regulation on economic outward processing in force in the Community. A specific quantitative limit shall be debited for the year in which the prior authorization is issued.

Article 6

The certificate of origin shall be issued by the competent governmental authorities in the supplier country concerned, in accordance with the Community legislation in force and the provisions of Annex IV for all products covered by this Annex.

Article 7

The competent authorities of the Member States shall supply the Commission with the names and addresses of the authorities in the Member States competent to issue the prior authorizations referred to in Article 4 together with specimens of the stamp impressions used by them.

Appendix

The product descriptions set out in Annex I are repeated in this table in a shortened version

(Quantitative outward processing trade objectives)

>TABLE>