CO«.TEX/SB/694 ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES. Notification under Article 4:4

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GENERAL AGREEMENT ON RESTRICTED CO«.TEX/SB/694 2 June 1981 TARIFFS AND TRADE * Special Distribution Ttiles Surveillance Body Original: English ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES Notification under Article 4:4 Bilateral Agreement between Austria and Hong Kong The Ttiles Surveillance Body has received from Austria a notification of a new bilateral agreement with Hong Kong, concluded under Article 4 of the Arrangement, valid for the period 1 December 1980-31 January 1982.1/ The TSB, pursuant to its procedure regarding bilateral agreements notified under Article 4 JJ', has amined the relevant documentation and is transmitting the tt of the notification to participating countries^/ 1 / In respect of categories included in the previous agreement with Hong Kong (C0M.TEX/SB/544), the period of validity is 1 February 1981 to 31 January 1982. - 7 See C0M.TEX/SB/35, Ann B. For the TSB's observations on this agreement, see C0M.TEX/SB/703, paragraphs 11-13.

Page 2 MEMORANDUM OF UNDERSTANDING (1) Introduction 1. This Memorandum of Understanding sets out the arrangements that have been agreed between Hong Kong and Austria regarding Hong Kong's ports of certain ttile products to-austria. 2. These arrangements have been mnde under the Arrangement Regarding International Trade in Ttiles and in particular under Article 4 thereof. Coverafe 3. These arrangements shall apply to Hong Kong's ports to Austria of the ttile products set out in column (c) of Ann I to this Memorandum. Restraint Period 4. Hong Kong shall restrict perts of the products set out in column (;;) to ti-.i limits set cut in column (e) fcr the periods set cut in column (f) of Ann I, save as provided Ccr in pzrzcrcp.hz 3 to 13 below. v. Austria and Hong rconrj agree that it is desirable for administrative reasons to reccrd in column (g) of Ann I the notional tvielve-r.enth liait for item no. 4 of Ann I. 6. For the purposes of these arrangements, Austria shall admit imports c:" the ttile products of Hcnfj Kong origin set out in Ann I only '..here such inports are covered by pert licences issued by the Ho:<g Kong Trade Industry and Customs Department within the restraint periods set out in colu::.n (f) and endorsed to the effect that the consignments concerned have been debited to the agreed limits. 7. Furthermore, Austria shall admit imports of the ttile products of Hong Kong origin set out in Ann I where such imports are covered by port licences for items no. 1, no. 2 and no. 3 of Ann I issued by the Hong Kong Trade Industry and Customs Department on or before 31 January 1931, under the terms of the i'emorandum of Understanding regarding restrained items between Hong Kong and Austria signed in Vienna on 10 December 1979 and in Hong Kong on 19 December 1979, end for item no. l \, under the terms of the Memorandum of Understanding regarding port authorization items between Hong Kong and Austria signed in Vienna on 10 December 197) ana in Hong Kong on 1Ç December 1979.

Swing ' i 8. The Limits in column (c) in respect of items No. 1, 2 and 3 of Ann I, and the notional twelve-month limit in respect of item No. 4 of Ann I may be increased during the restraint period by up to five per cent provided that a corresponding reduction is applied to the limits for other products. Page 3 9. FOP the purposes of calculating such corresponding reductions, the conversion factors listed it» colu::;u (h) of Ann I shall apply. Carryover and Carry forward 10. If in the period 1 February 19530 to 31 J.ittuary 1931 ports frcm Hone Kong to Austria of any product a:: set out in Ann I to the Memorandum of Understanding regarding re-strained items between ilouc Konc and Austria, signed in Vienna on 10 December 1979 and in Kong Konc on 19 December 1979, are less than the litr.it as set out in Ann I thereto, Hong Kong may, after consultation with Austria, during the period 1 February 1981 to 31 January 1922 approve the port of additional amounts equivalent to such shortfalls provided that such perts : (i) (ii) are in the sane products where the shortfalls occurred; and do not ceed 10 per cent of the annual restraint limit of these products specified in that Memorandum. 11. If in the period 1 February 1980 to 31 January 1931 ports from Hone Konc to Austria of any product as set out in Ann I to the Memorandum of Understanding regarding restrained items between Hong Kong and Austria, signed in Vienna en 10 December 1979 and in Hong Kong on 19 December 1979, should ceed the limit, as set out in Ann I thereto, up to 5% in accordance with the provision of paragraph 10 of that Memorandum, Hons Kong shall inform Austria of the carry forward quantities and debit these to the corresponding limit for the period 1 February 1931 to 31 January 1922 as set out in column (c) of Ann to this Memorandum. 12. Should these arrangements be continued for a further period, the carryover and carry forward provisions set out in Ann 0 of the Arrangement Regarding International Trade in Ttiles shall apply. Re-ports 13. Austria will, as far as possible, inform "Kjng Kong when imports into Austria of the ttile products set out in Ann I that have been debited to the agreed limits arc subsequently re-ported from Austria. Hong Kong may then credit the quantities involve--] to the appropriate limits. To tins end an administrative arrangement has been agreed between Austria and Hong Kong as set out in Ann II.

Page 4 Exchange of Statistics 14. Hong Kong will provide Austria with half-monthly statistics of the ttile products set out in Ann I Licenced for port to Austria and debited to the limits set out in column (c) of Ann I. 15. Austria will provide Hong Kong with quarterly statistics of total imports and of imports from hong Kong and fro.-n other significant suppliers of each of the ttile products set cut in Ann I. Consultations 15. Austria and lions Kong agree to consult, at the request pi" either party, on any natter arising fro:n the implementation of these arrangements. 17. If iion.g Kong considers that, as a result of the restraint imposed by these arrangc^encs, licng Kong is being placed in an inequitable position vis-a-vis a third country, I'.owz Kong ray request Austria to consult with a view to remedial action auch as a reasonable modification of these arrangements. Année 18. Annc::cs I and II hereof shall bo an integral part o; this Memorandum. For Austria For Kong Kon f T Dr. Oerhard V/aas Director Federal Ministry for ''"rade, Commerce and Industry Vienna, 16 December 1930. Tf. PoTward Director Tra.de Industry Sr Customs Hong Kong, 30 Decem&er 1980

Ann I (a) (b) (c) (d) (e) (f) <G> ( '.) Item No. Austrian Statistical Classification No. llonj i'or.2 Statistical Classification f!o. Description Linit in pieces Period'of limitation on ports I.'otior.al tv.olve-r.cnth lir.:it in pic-ces Conversion factors for swing purposes (pieces per ki logram). ' 1 61.03 11 61.03 21 44 111 44 112 44 ",2t 844 122 Shirts, not knitted or croche Lc-d, wholly or mainly of cotton or of discontinuous synthetic fibres 1,050,700 1 February 1981 to 31 January 1Ç82 5.00 2 61.02 53 61.C2 : = 843 511 843 512 643 521 43 522 843 957 643 977 Blouses, not knitted cr crocheted, wholly or mainly of cotton or of i.'ian-:iiado fibres, wor.cn 1 Cirls' and infants' wear s, 9c3,? 0 1 February 1931 to 31 January i932 5.CO COM.TE Page 5

III o 3 o m (a) Item No. (b) Austrian Statistical Classification No. (c) ::3.1G Kor.3 Statistical Classification No. (d) Description (e) V Liait in pieces (f) Fericd cf limitation on ports (c) l.'oticr.ûl twelve-month limit in pieces (hi Conversion factors for swing purpc (pieces per kilogram) CO CD O -o - ï. - * ; 5 :i..i zz il.12 25 321 322 331 332 843 421 843 422 843 431 843 432 843 947 843 948 843 957 843 967 e43 968 843 977 Slacks, shorts, jeans, trousers and divided skirt not knitted or crocheted, wholly or mainly of cotton or of man-made fibres i 1,356,600 1 February 1981 to 31 January 1982 1.76 4 :C-15 21 i\.~-2 53 z i. 12 55 843 321 843 322 843 331 843 332 843 421 843. 422 843 957 843 977 845 231 845 232 845 238 Dresses, knitted or crocheted, of synthetic fibres; dresses, not knitted or crocheted, of cotton or man-made 604,470 fibres; skirts, not knitted cr crocheted, oi' cotton women's 1 Deœ.ber 1930 to 31 January 1982 513,117 3.10

Page 7 Ann II Notwithstanding the provisions of paragraph 6 and in furtherance of paragraph 11, Austria and Hong Kong agree the following administrative arrangement: (a) For presentation to Austria in support of an application for a corresponding import licence, an port licence ceases to bo valid upon the piration of one hundred and twenty days from the date of issue of the port licence.. All port licences covering restrained items will be endorsed to this effect; (b) Austria will provide Hone f'0"c at monthly intervals with a list of port licences which have been presented to Austria in support of applications for import licences indicatins the quantity covered by each corresponding import licence issued; and (c) In respect of port licences of which the validity of one hundred and twenty days referred to in (a) above has pired and which are not shown on the lists of port licences provided by Austria pursuant to (b) above, Hone Kon,«; will notify Austria, as'aaon as possible, the numbers of such port licences and the quantity covered by each port licence with an indication that the quantities will be credited back to Hong Kor.s for re-use if no thine is heard from Austria within three weeks from the date of such notification.

Page 8 MEMORANDUM OF UNDERSTANDING (2) 1. Having amined the current pattern and (k vv:lo.a'.'nt of trade in certain ttile products ported from Ik.ug Kong to Austria, Hong Kong and Austria agree that an port authorization system shall be introduced for the period 1 February 1931 to 31 January 1932 in respect of the products listed in the Ann to this Memorandum. 2.. Hone Kons shall require all ports to Austria of the products listed in the Ann to be covered by port authorisations issued by the hone Kong Trade Industry and Customs ijcpat'lafjut.. An port autlioriv.atic.-ti.-jhall l»- issued only on evidence of a firm contract for the supply of the products involved and shall be valid for up to ô tenths from the date of issue. 3. Export licences to ship products covered by an port authorisation will be issued by Hone Kor.r; on presentation of the relevant port authorization within the letter's validity period. An port licence shall be valid for 23 cays from the date of issue. Hong Kong shall not issue oy.pcrz licences in respect of perts to Austria of products listed ir. the Anne which are not covered by a valid port authorize"ion. 4. Hong Kong shall provice Austria with half-monthly statistical returns showing the quantities cover'.'.; by port authorizations issued to Hong Kong porters in respect of the products listed in the Ann. Hong Kong agrees tu notify Austria immediately upon receipt of any appliestiens Cor port authorizations in ceptionally large amounts in a particular product. 5. Austria shall admit imports of the ttile products of Hong Kong origin listed in the Ann where such imports are accompanied by a copy of an port licence issued by the Hong Kong Trade Industry and Customs Department. 6. If, in the opinion of Austria, the Austrian markst is being disrupted in terms of the definition of marxct disruption in Ann A of the Arrangement Regarding International Trade in Ttiles, by imports from Hong Kong of any product covered by this system, Austria may request consultations under the provisions of the Arrangement Kcgardinc International Trade in Ttiles.. 7. A request for consultations shall be supported as soon as possible, and in any case within 14 days of the date of the request, by a factual statement of the reasons and justification for the request, including the latest data concerning elements of market disruption.

Page 9 8. Austria and Hong Kong, unless otherwise agreed, shall consult as soon as possible within 30 days of the request for such consultations and shall make their best efforts to complete such consultations within 30 days of the commencement. 9. Pending the completion of consultations, Austria may request Hong Kong to limit, during the period covered by this Memorandum, the issue of port authorizations of the product concerned to a level not less than the highest of: (a) the level of the port aulhori;,.atiop.c issued for the product concerned in the immediate preceding period increased by 10%; (b) the average of the level of port author i imitions issued for the product concerned in the preceding,i periods since February 1, 1973, increased by loi; (c) the level of pert authorisations icz^cz since the commencement of the period in which the request for consultations is made, increased by 1C%. Hone Kong agrees that it will honour such?. rcouesc. 10. A "period'* for this purpose shall be 1 robruary to 31 January. 11. In the event that consultations do r.:t result in agreement, Austria shall have the right to request Hong Kong to lir.it ports to Austria of the products ccncerr.c-d curing the period covered by this Memorandum to a level r.ot less' than that calculated according to the formula set out in paragraph 9 above. Hong Kong agrees that it will honour such a request. 12. Austria and Hong Kong agree that these provisions shall not derogate from the rights of Austria and Hong Kong under the Arrangement Regarding International Trade in Ttiles. 13. Hong Kong and Austria agree to consult, at the request of 1 either party, on any matter arising from the implementation of this system. H. The Ann to this Memorandum shall be an integral part of it. For Austria - / ' C / ; ' <"'' -V Dr. Oerhnrd We a s Director Fecinml Ministrv for Trnde, Commerce rind Tnduntry Vienna, 16 December 1930 For Hone Konn Dor Ward' Director Trade Industry i< Cvst-oms Hen? Kong, 30 December 1980

Page 10 Ann UiS-rinn Clat LsLical Cla:;::i flealtun '('. >. liotitf ' Kor.,~ Suit 1st tea L Classi l'i eu I ion t!o. 61.01 23 61.01 25 61.01 29 6*1.01 71 C1.01 73 61.01 75 411 412 421 422 431 432 Jackets, including anoraks and blazers, not knitted or crocheted, wholly or mainly of cotton; of wool or of man-made fibres, men's and boys' wear. 61.01 33 61.01 35 e>v OX 191 192 932 933 934 42 935 942 94 3 944 945 Coats, including raincoats but ciudinj capes and gowns, no" knitted or crocheted, wholly o: mainly of cotton or of rr.sr.-r.aefibres, r.cn's and boys' wear. 51.01 41 61.01 A3 61.01 45 c>: 211 212 221 ' 11 231 232 Cults, r.ot knitted, cr creche'* wholly or mainly cf ccttcn, o: wool cr of man-made fibres. con's ar/j soys' wear. 61.C3 11 61.03 19 51.03 21 ax 51.03 29 3:-: 344 344 344 213 214 222 344 34 4 3 4 4 224 297 293 Pyj.ar.ac and night-shirts, not knitted cr crocheted, wholly o." mainly of cotton or cf r.sr.-r.a... 61.02 51 61.02 71 51.02 73 343 343 843 S43 343 843 311 312 411 412 431 432 343 937 343 977 Dresses, r.ot knitted cr crocheted, of wool; skirts, r.c" knitted cr crocheted, of wc iol - M- p '""^CG fl. wc'03 ' "fants ' *..'3ar Z~r 61.02 33 61.02 35 343 843 S43 843 843 843 S43 121 122 131 132 943 944 945 843 946 343 957 343 963 843 964 343 965 343 965 343 977 Coats, including raincoats but cluding capes arc gowns, not knitted or crocheted, wholly d mainly of cotton or of man-mao. fibres, women's, girls' and infants' wear. 61.02 43 61.02 45 843 843 843 343 843 221 222 224 225 231 843 232 843 234 843 235 343 957 343 977 Costumes and trouser suits, including two- or three-piece suits, not knitted or crochète* wholly or mainly of cotton or of man-made fibres,.. omen's, girls' and infants' '..ear. 51.02 31 fii 1.C2 33 ù 61.C2 35 843 343 343 343 343 111 112 121 122 131 343 132 843 937 343 957 84 3 977 Jackets, no: knitted or crocheted, wholly or mainly of cotton, of wool or cf man-maae fibres, women's, girls' and infants' wear.

Page 11 Austrian Statistical Classification i.'.». i!ori!j Kony Stctiati cal Classification i.'c Dor-.rriptijr. 60.04 49 846 282 846 283 846 286 846 287 846 292 Briefs, drawers, panties, undershorts, and the Like, knitted or crocheted, wholly or mainly of cotton. 60.04 4Q 60.04 21 846 211 846 212 846 846 321 322 Shires, knitted or crocheted, wholly cr mainly of cotton, ore sy.-.thotic fibres, men's and bqi- 60.05 31 60.05 33 60.05 61 60'.05 63 60.05 31 60.05 S3 845 930 8^5 950 845 845 937 957 Blouses, knitted or crocheted, wholly cr mainly of cotton or c synthetic fibres, women's, &iri and "ir.fa.-its» wear. 60.04 49 ox 846 232 346 233 546 236 345 237 346 292 Sin~lots and undershirts, inclu.iir. t " underwear T-shirts, i-.nittoe c?r crocheted, wholly o.- eninly of cottcn, men's, boys' wemtit's, girls' and infants' 60.04 23 60.04 49 846 234 346 285 346 290 846 291 346 292 346 333 846 334 846 343 2X 846 846 344 345 Pyjamas ar.a other ni ht garmer.' knitted or crochôted, wholly or aainly of cotton or of synthsti- 60.05 31 60.05 32 60.05 33 CO.05 61 60.05 C2 C'C.C'j 63 60.0*5 81 rx (.0.05 -.'' CO.05 33 ox 345 111 345 112 645 113 345 114 345 115 345 121 345 122 045 123 845 124 045 125 345 345 345 845 845 131 132 133 134 135 Jacl:cts, sweaters, cardigans, pullovers and jumpers, knitted or crocheted, wholly or mainly of cotton, of wool or of synthetic fibres. 60.05 'X' 60.05 33 60.05 61 ->: : '0.05 >>? '.0.05 63 uo.05 fil c:: r.0.05 n?. ox. f ;<V) 2ii 845 212 345 213 345 221 345 222 845 223 Drer.r.e::, knitted cr crocheted, wholly or mainly of cotton or of wool.

C0M.TEX/S8/694 Page 12 Austrian Statistical Classification No. Hong Kong Classifi Statistical cation No. Description 60.05 31 60.05 32 60.05 33 60.05 61 60.05 62 60.05 63 60.05 31 60.05 82 60.05 33 845 906 845 907 845 913 345 914 345 917 845 926 345 927 845 933 845 934 845 937 845 946 845 947 845 953 845 954 845 957 Slacks, shorts, jeans and trousers, knitted or crocheted wholly or mainly of cotton, of wool or of synthetic fibres. - 6T.01 23 61.01 25 938 939 e>: 943 949 936 937 3-''2 94.: 3-'.2 947 Cycnastic pants, ski-jackets, ski-vests and swi:.-.*.;ear, not knitted cr crocheted, wholly 0 niinly of cot ten or of <r.an-crad< fibres, rr.en's and coys' wear. Uneerwear T-shirts are single-coloured, not puttcrn-.rj r.zr printed T-shirts. i-.ulti-coloured, patterned or printed T-shirts which ar packed and shipped tocethcr with ni.'itchm^fcrlofs ar; acta of underwear arc considered as underwear T-shirts.