Appendix PROTOCOL A

The competent authorities of the Community undertake to inform Hong Kong of any changes in the combined nomenclature (CN) before the date of their entry into effect in the Community.

The competent authorities of the Community undertake to inform Hong Kong of any decisions relating to the classification of products subject to these administrative arrangements within one month of their adoption at the latest. Such communication shall include:

Where a decision on classification results in a change of classification practice or a change of category of any product subject to these administrative arrangements, the competent authorities of the Community shall provide 30 days' notice, from the date of the Community's communication, before the decision is put into effect. Products shipped before the date of application of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation into the Community within 60 days of that date.

Where a Community decision on classification resulting in a change of classification practice or a change of categorization of any product subject to these administrative arrangements affects a category subject to restraint, the Community undertakes to enter into consultations without delay in accordance with the procedures described in Article 12 (1) of these administrative arrangements with a view to agreeing necessary adjustments to the appropriate quantitative limits established under Article 2 of the ATC and mitigating any disruptive effects which might arise from such a Community decision.

Products originating in Hong Kong for export to the Community in accordance with the arrangements established by these administrative arrangements shall be accompanied by a certificate of Hong Kong origin conforming to the model annexed to this Protocol.

The certificate of Hong Kong origin shall be issued by the competent governmental authorities of Hong Kong if the products in question can be considered products originating in that country within the meaning of the relevant rules in force in the Community.

Certificates of Hong Kong origin shall contain a full and detailed description of the goods. In particular, certificates of Hong Kong origin shall indicate:

• in respect of clothing, shipments where the articles in question are incomplete or unfinished,

• in respect of fabrics, including knitted or crocheted fabric, shipments where the products in question are dyed, printed or impregnated or coated;

• and in respect of products of category 39, shipments where the articles in question are embroidered.

The certificate of Hong Kong origin referred to in paragraph 1 shall not be required for import of goods covered by a certificate of origin Form A completed in accordance with the relevant Community rules in order to qualify for generalized tariff preferences.

The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory to which the Treaty establishing the European Community is applied.

Each export licence shall only cover one of the categories of products.

Exports shall be set off against the quantitative limits established under Article 2 of the ATC for the year in which shipment of the goods has been effected, even if the export licence is issued after such shipment.

For the purpose of applying paragraph 1, shipment of the goods is considered to have taken place on the date of their loading on to the exporting aircraft, vehicle or vessel.

The competent Community authorities shall issue such import authorization or document automatically within five working days of the presentation by the importer of the original of the corresponding export licence. The import authorizations shall be valid for six months from the date of their issue for imports throughout the customs territory to which the Treaty establishing the European Community is applied.

The competent Community authorities shall cancel the already issued import authorization or document if the corresponding export licence has been withdrawn. However, if the competent Community authorities have not been notified of the withdrawal or cancellation of the export licence until after the products have been imported into the Community, the quantities involved shall be set off against the quantitative limit established under Article 2 of the ATC for the category and the quota year in question and Hong Kong shall be informed as soon as possible.

If the competent Community authorities find that the total quantities covered by export licences issued by Hong Kong for a particular category in any given year exceed the quantitative limit established under Article 2 of the ATC for that category as increased by the growth rates provided under Article 2 of the ATC and as may be modified by the flexibility provisions notified to the TMB under Article 2 (1) of the ATC, until such time as these products are integrated into GATT 1994 under paragraphs 6, 8 or 9 of Article 2 of the ATC, the said authorities may suspend the further issue of import authorizations or documents. In this event, the competent Community authorities shall immediately inform the authorities of Hong Kong and the special consultation procedure set out in Article 12 (1) of these administrative arrangements shall be initiated forthwith.

Exports of restrained textile products of Hong Kong origin not covered by Hong Kong export licences issued in accordance with the provisions of this Protocol may be refused the issue of import authorizations or documents by the competent Community authorities. However, if the import of such products is allowed into the Community by the competent Community authorities, the quantities involved shall not be set off against the appropriate quantitative limits established under Article 2 of the ATC, without the express agreement of Hong Kong.

The export licence and the certificate of origin of Hong Kong 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 printed script. These documents shall measure 210 x 297 mm. The paper used must be writing paper weighing not less than 25g/m². Only the original, clearly marked ‘original’ shall be accepted by the competent authorities of the Community as being valid for the purposes of export to the Community in accordance with the arrangements established by these administrative arrangements.

Each export licence and certificate of Hong Kong origin shall bear a serial number, whether or not printed, by which it can be identified. The number for the export licence shall be standardized and composed of the following elements:

• two letters identifying Hong Kong as follows: HK,

• two letters identifying the intended Member State of customs clearance as follows,

  AT

• Austria

BL

• Benelux

DE

• Germany

DK

• Denmark

El

• Greece

ES

• Spain

FI

• Finland

FR

• France

GB

• United Kingdom

IE

• Ireland

IT

• Italy

PT

• Portugal

SE

• Sweden,

• a one-digit number identifying quota year, corresponding to the last figure in the respective year, e.g. 7 for 1987,

• two spaces identifying the particular issuing office concerned in Hong Kong.

• a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance.

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 of any such certificate or licence so issued shall bear the endorsement ‘duplicata’.

The duplicate must bear the date of the original export licence or certificate of origin.

Verification of certificates of Hong Kong origin or export licences shall be carried out at random by the Hong Kong authorities.

The competent Community authorities may request subsequent verification of certificates of Hong Kong origin or export licences at random or whenever they have reasonable doubt as to the authenticity of such certificates or licences or as to the accuracy of the information regarding the products in question. In such cases the competent authorities in the Community shall return the certificate of Hong Kong origin or export licence, or a copy thereof to the Hong Kong authorities, giving, where appropriate, the reasons for an enquiry. If the invoice has been submitted, such invoice shall be attached to the certificate or licence or its copy. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.

Should the results of the random verification referred to in paragraph 1 reveal serious contravention of the provisions of these administrative arrangements, the Hong Kong authorities shall notify the competent Community authorities of the results. Where the competent Community authorities have requested verification under paragraph 2, the results of such verification shall be communicated to the competent Community authorities within three months at the latest. The information communicated shall indicate whether the disputed certificate or licence applies to the goods actually exported and whether these goods are eligible for export in accordance with the arrangements established by these administrative arrangements. Where the competent Community authorities so request, the information communicated shall also include copies of such other available documentation as may facilitate the full determination of the facts and, in particular, the true origin of the goods.

For the purpose of subsequent verification of certificate of Hong Kong origin and export licences, copies of these, together with relevant supporting documentation required to be lodged with the Hong Kong authorities for the issue of such certificates or licences, shall be kept for a period of at least two years by the Hong Kong authorities.

Where the verification procedure referred to in Article 17 or where information available to the Community or to Hong Kong indicates or appears to indicate that the provisions of these administrative arrangements are being contravened, both parties shall cooperate closely and with appropriate urgency to prevent such contravention.

To this end, Hong Kong shall, on its own initiative or at the request of the Community, carry out appropriate enquiries or arrange for such enquiries to be carried out concerning operations which are or appear to be in contravention of these administrative arrangements. Hong Kong shall communicate the results of these enquiries to the Community together with such other available information as may facilitate the determination of the true origin of the goods.

By agreement between the Community and Hong Kong, officials designated by the Community may be present at the enquiries referred to in paragraph 2.

In pursuance of the cooperation referred to in paragraph 1, Hong Kong and the Community shall exchange any information considered by either party to be of use in preventing the contravention of the provisions of these administrative arrangements. These exchanges may include information on textile production in Hong Kong and on trade in textile products of a kind covered by these administrative arrangements between Hong Kong and other countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Hong Kong prior to their importation into the Community. This information shall include at the request of the Community copies of all relevant documentation. Hong Kong will provide such information as is available and in accordance with Hong Kong law.

The Community shall, where appropriate at the request of Hong Kong, cooperate jointly with Hong Kong in cases of circumvention which affect Hong Kong, in conformity with procedures in force in the Community.

Where it is established to the satisfaction of both parties that the provisions of these administrative arrangements have been contravened, Hong Kong and the Community agree to take all reasonable measures to prevent a recurrence of such contravention.