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Agreement between the European Community and the Russian Federation
on trade in textile products (initialled in Brussels on 28 March 1998)
Official Journal L 169 , 15/06/1998 p. 0002 - 0027
Text:
AGREEMENT between the European Community and the Russian Federation
on trade in textile products
THE EUROPEAN COMMUNITY,
of the one part, and
THE RUSSIAN FEDERATION
of the other part,
hereinafter referred to as 'the Parties`,
DESIRING to promote, with a view to permanent cooperation and in conditions
providing for predictability of trade, the mutual expansion and orderly
and equitable development of trade in textile products between the European
Community (hereinafter 'the Community`) and the Russian Federation (hereafter
'Russia`),
RESOLVED to take the fullest possible account of the serious economic
and social problems at present affecting the textile industry in both
the Community and Russia,
HAVING REGARD to the objectives and provisions of the Partnership and
Cooperation Agreement between the European Communities and their Member
States and the Russian Federation (hereinafter referred to as 'the Partnership
and Cooperation Agreement`) which entered into force on 1 December 1997,
BEARING IN MIND Russia's process of accession to the Word Trade Organisation
(WTO),
HAVE AGREED AS FOLLOWS:
Article 1
1. The Parties confirm that the provisions of the Partnership and Cooperation
Agreement shall apply to trade in the textile and clothing products (hereinafter
referred to as 'textile products`) listed in Annex I save where this Agreement
makes specific provision concerning such products.
2. The cooperation between the textile and clothing industries in the
Community and in Russia and the elimination of the quantitative restrictions
in trade in textiles and clothing is the fundamental objective of this
Agreement.
3. All quantitative restrictions currently applied to trade in textile
products originating in either Party shall be eliminated on 1 May 1998.
4. The Parties hereby agree that no new quantitative restrictions on trade
between the Community and Russia in the textile and clothing products
listed in Annex I shall be introduced save as is provided in this Agreement.
Article 2
1. The classification of the products covered by this Agreement and imported
into the Community is based on the tariff and statistical nomenclature
of the Community (hereinafter called 'the Combined Nomenclature` or, in
abbreviated form, 'CN`) and any amendments thereof. The products nomenclature
of foreign economic activity (hereinafter called in abbreviated form 'TN
VED SNG`) shall be applied to the classification of goods for imports
of those products into Russia.
2. The Parties agree that the introduction of changes, such as changes
in practices, rules, procedures, and categorisation of textile products,
including those changes relating to the Harmonised System and the Combined
Nomenclature and the TN VED SNG in respect of the products set out in
Annex I should not affect the balance of rights and obligations between
the Parties under this Agreement; should not adversely affect the access
available to a Party; should not impede the full utilisation of such access,
or disrupt trade under this Agreement. The Party initiating any such changes
shall inform the other Party before their entry into force.
3. The origin of the products covered by this Agreement and imported into
the Community shall be determined in accordance with the rules of origin
in force in the Community. The origin of the products covered by this
Agreement and imported into Russia shall be determined in accordance with
the rules of origin in force in the Russian Federation.
The Parties shall notify each other of any amendments to the respective
rules of origin.
Article 3
1. Without prejudice to the provisions of Article 4, imports of textile
products from the territory of either Party may only be made subject to
quantitative restraint in accordance with Article 17 of the Partnership
and Cooperation Agreement.
2. For a period of three years following the date on which this Agreement
enters into application:
- the level of any quantitative restraint fixed under the provisions referred
to in paragraph 1 in respect of imports of textile products shall be set
at a level not lower than the actual level of exports or imports from
the Party concerned during the 12-month period terminating two months
preceding the month in which the request for consultation was made or
the date on which the measures were introduced,
- for those categories of textile products previously subject to quantitative
limits and set out in Annex II, any quantitative restraint fixed under
the provisions referred to in paragraph 1 for category of products shall
be set at a level not lower than the level of the 1997 quota for the category
in question and shall not be triggered until imports into the Community
of products of Russian origin of that category have reached 5 % of the
total imports into the Community for that category.
3. The Parties agree to consult fully, pursuant to Article 5 in the event
of the application of this Article.
Article 4
1. Circumvention by transhipment, re-routing, false declaration concerning
country or place of origin, and falsification of official documents, frustrates
the effective functioning of this Agreement. Accordingly, the Parties
will establish the necessary legal provisions and/or administrative procedures
to address and take action against such circumvention. The Parties, consistent
with their domestic laws and procedures, will cooperate fully to address
problems arising from circumvention.
2. Should either Party believe that this Agreement is being circumvented
by transhipment, re-routing, false declaration concerning country or place
of origin, or falsification of official documents, and that no, or inadequate,
measures are being applied to address and/or to take action against such
circumvention, the Party should consult with the other with a view to
seeking a mutually satisfactory solution. Such consultations should be
held promptly, and within 30 days when possible.
3. The Parties will take necessary action, consistent with their domestic
laws and procedures, to prevent, to investigate and, where appropriate,
to take legal and/or administrative action against circumvention practices
within their territory. The Parties agree to cooperate fully, consistent
with their domestic laws and procedures, in instances of circumvention
or alleged circumvention of this Agreement, to establish the relevant
facts in the places of import, export and, where applicable, transhipment.
Such cooperation, consistent with domestic laws and procedures, will include:
investigation of circumvention practices which increase restrained exports
to the territory of the Party maintaining such restraints: exchange of
documents, correspondence, reports and other relevant information to the
extent available; and facilitation of plant visits and contacts, on request
and on a case-by-case basis. The Party should endeavour to clarify the
circumstances of any such instances of circumvention or alleged circumvention,
including the respective roles of the exporters or importers involved.
4. Where, as a result of investigation, there is sufficient evidence that
circumvention has occurred (e.g. where evidence is available concerning
the country or place of true origin, and the circumstances of such circumvention)
the Parties shall take appropriate action, to the extent necessary to
address the problem. Also, where there is evidence of the involvement
of the territory of either Party through which goods have been transhipped,
such action may include the introduction of restraints with respect to
the Party concerned. Any such actions, together with their timing and
scope, may be taken after consultations held with a view to arriving at
a mutually satisfactory solution between the Parties. The Parties may
agree on other remedies in consultation.
5. False declaration concerning fibre content, quantities, description
or classification of merchandise also frustrates the objective of this
Agreement. Where there is evidence that any such false declaration has
been made for purposes of circumvention, the Parties shall take appropriate
measures, consistent with domestic laws and procedures against the exporters
or importers involved. Should either Party believe that this Agreement
is being circumvented by such false declaration and that no, or inadequate,
administrative measures are being applied to address and/or to take action
against such circumvention, that Party should consult promptly with the
other with a view to seeking a mutually satisfactory solution. This provision
is not intended to prevent Parties from making technical adjustments when
inadvertent errors in declarations have been made.
6. In order to facilitate the cooperation provided for under this Article,
Russia undertakes to issue automatic export authorisations according to
the relevant Russian legislation in respect of exports of textile products
previously subject to quantitative limits and set out in Annex II.
For those categories subject to the issue of export licences the competent
authorities of the Community will issue import authorisations only on
the presentation of export authorisations issued by the competent Russian
authorities.
Russia undertakes to transmit, on a weekly basis, information on quantities
covered by the automatic export authorisations referred to above. This
may be carried out by way of an electronic linkage between the competent
Russian authorities and the Système intégré de gestion de licences (hereinafter
referred to as 'SIGL`) as established by the Community. The Community
will ensure full technical and financial assistance in setting up such
linkage, within the limits of TACIS programme.
In case of significant and unjustified discrepancies between the information
received through the electronic linkage with SIGL and the export authorisations
submitted to the competent authorities of the Community, either Party
may request consultations under Article 5 of the Agreement in order to
identify the reasons for the discrepancies. Should these discrepancies
be due to fraudulent transhipment of products not originating in Russia
the Parties will agree appropriate measures in order to avoid their recurrence.
This system of double checking shall be maintained for as long as both
Parties so desire.
7. Following a request from one Party the other Party shall provide data
on a monthly basis in respect of its exports of the specific categories
of textile products exported to the Party making the request.
Article 5
1. Save where it is otherwise provided, the special consultation procedures
referred to in this Agreement shall be governed by the following rules:
- any request for consultations shall be notified in writing to the other
Party,
- the request for consultation shall be followed within 15 days of the
notification by a statement setting out the reasons and circumstances
which, in the opinion of the requesting Party, justify the submission
of such a request,
- the Parties shall enter into consultations within one month of notification
of the request at the latest, with a view to reaching agreement or a mutually
acceptable conclusion within one further month at the latest.
2. If necessary, at the request of either of the Parties, consultations
shall be held on any problems arising from the application of this Agreement.
Any consultations held under this Article shall take place in a spirit
of cooperation and with a desire to reconcile the differences between
the Parties.
Article 6
1. This Agreement shall apply provisionally from the date of signature
and shall enter into force on the first day of the month following the
date on which the Parties notify each other of the completion of the procedures
necessary for that purpose.
2. This Agreement shall be in force for the duration of the Partnership
and Cooperation Agreement.
3. Either Party may at any time propose to hold consultations in accordance
with Article 5 with a view to agreeing amendments to this Agreement.
4. Without prejudice to the removal of restrictions laid down by Article
1, the operation of this Agreement shall in any event be reviewed if Russia
becomes a Member of the WTO during the validity of this Agreement.
5. Either Party may, at any time, denounce this Agreement by notifying
the other Party in written form. This Agreement shall cease to apply six
months after the date of such notification.
6. The Annexes attached to this Agreement shall form an integral part
thereof.
Article 7
This Agreement shall be drawn up in duplicate in the Danish, Dutch, English,
Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish
and Russian languages, each of these texts being equally authentic.
Done at Brussels, 23 July 1998.
For the Russian Federation
For the European Community
ANNEX I
PRODUCTS REFERRED TO IN ARTICLE 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 recognisable 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 to cover
garments up to and including commercial size 86.
ANNEX II
(The full descriptions of the categories listed in this Annex are to be
found in Annex I to the Agreement)
Categories: 1, 2, 2(a), 3, 4, 5, 6, 7, 8, 9, 12, 13, 15, 16, 20, 21, 22,
24, 29, 33, 37, 39, 50, 74, 83, 90, 115, 117 and 118.
End of the document
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