98/669/EC: Council Decision of 29 June 1998 on the conclusion of an Agreement in the form of an Exchange of Letters amending and extending the Agreement between the European Community and the Socialist Republic of Vietnam on trade in textile and clothing products

The Agreement in the form of an Exchange of Letters amending and extending the Agreement between the European Community and the Socialist Republic if Vietnam on trade in textile and clothing products shall be approved on behalf of the Community. The text of the Agreement is attached to this Decision.

The President of the Council is hereby authorised to designate the persons empowered to sign the Agreement in order to bind the Community.

This Decision shall be published in the Official Journal of the European Communities.

1 Vietnam agrees to limit its exports to the Community of products listed in Annex II to the amounts set out therein for each Agreement year. In the allocation of quantities for export to the Community, Vietnam shall not discriminate against companies fully or partially owned by Community investors.

2 Exports of textile products set out in Annex II shall be subject to a double-checking system as specified in Protocol A.

3 In administering the quantitative limits referred to in paragraph 1, Vietnam shall ensure that the Community textile industry benefits from utilisation of such limits. In particular, Vietnam undertakes to reserve, as a priority, 30 % of the quantitative limits for firms in that industry for a period of three months beginning on 1 January of each year. For this purpose, contracts made with such firms during the period in question and submitted to the Vietnamese authorities during the same period shall be taken into consideration.

4 To facilitate the implementation of these provisions, the Community shall provide the competent Vietnamese authorities, before 31 October of each year, with a list of interested manufacturers and processors and of the indicative quantity of products requested for each firm. To this end, the firms concerned must make direct contact with the relevant Vietnamese bodies during the period specified in paragraph 3, in order to verify what quantities are available under the reserve referred to in paragraph 3.

5 Subject to the provisions of this Agreement, and without prejudice to the quantitative system applicable to products subject to the operations referred to in Article 4, the Community undertakes to suspend the application of quantitative restrictions currently in force in respect of products covered by this Agreement.

6 Exports of products referred to in Annex IV to the Agreement which are not subject to quantitative limits shall be subject to the double-checking system referred to in paragraph 2.’

Vietnam shall ensure that the supply of raw silk and silk waste to Community industry shall be made at conditions not less favourable than to Vietnamese domestic users.’

1 In any Agreement year, advance use of a portion of the quantitative limit established in Annex II for the following year shall be authorised for each category of products up to 5 % of the quantitative limit for the current year. Amounts delivered in advance shall be deducted from the corresponding quantitative limit established for the following year.

2 Carryover to the corresponding quantitative limit for the following year of amounts not used during any given Agreement year shall be authorised for each product category up to 7 % of the specific quantitative limit for the current year.

3 Transfers between categories 4, 5, 6, 7 and 8 shall be limited to 7 % of the quantitative limit laid down for the category to which the transfer is made. Amounts may be transferred into any category in Groups II, III, IV and V from any category in Groups I, II, III, IV and V up to 7 % of the specific quantitative limit laid down for the category to which the transfer is made.

4 The table of equivalence applicable to the transfers referred to above is given in Annex I to this Agreement.

5 The increase in any category of products resulting from the cumulative application of the provisions in paragraphs 1, 2 and 3 during an Agreement year must not exceed 17 %.

6 The Vietnamese authorities shall give the Community prior notification of any recourse to the provisions of paragraphs 1, 2 and 3.’

1 Vietnam agrees to limit its exports to the Community of products listed in Annex II to the amounts set out therein for each Agreement year. In the allocation of quantities, for export to the Community, Vietnam shall not discriminate against companies fully or partially owned by Community investors.

2 Exports of textile products set out in Annex II shall be subject to a double-checking system as specified in Protocol A.

3 In administering the quantitative limits referred to in paragraph 1, Vietnam shall ensure that the Community textile industry benefits from utilisation of such limits. In particular, Vietnam undertakes to reserve, as a priority, 30 % of the quantitative limits for firms in that industry for a period of three months beginning on 1 January of each year. For this purpose, contracts made with such firms during the period in question and submitted to the Vietnamese authorities during the same period shall be taken into consideration.

4 To facilitate the implementation of these provisions, the Community shall provide the competent Vietnamese authorities, before 31 October of each year, with a list of interested manufacturers and processors and of the indicative quantity of products requested for each firm. To this end, the firms concerned must make direct contact with the relevant Vietnamese bodies during the period specified in paragraph 3, in order to verify what quantities are available under the reserve referred to in paragraph 3.

5 Subject to the provisions of this Agreement, and without prejudice to the quantitative system applicable to products subject to the operations referred to in Article 4, the Community undertakes to suspend the application of quantitative restrictions currently in force in respect of products covered by this Agreement.

6 Exports of products referred to in Annex IV to the Agreement which are not subject to quantitative limits shall be subject to the double-checking system referred to in paragraph 2.”

Vietnam shall ensure that the supply of raw silk and silk waste to Community industry shall be made at conditions not less favourable than to Vietnamese domestic users.”

1 In any Agreement year, advance use of a portion of the quantitative limit established in Annex II for the following year shall be authorised for each category of products up to 5 % of the quantitative limit for the current year. Amounts delivered in advance shall be deducted from the corresponding quantitative limit established for the following year.

2 Carryover to the corresponding quantitative limit for the following year of amounts not used during any given Agreement year shall be authorised for each product category up to 7 % of the specific quantitative limit for the current year.

3 Transfers between categories 4, 5, 6, 7 and 8 shall be limited to 7 % of the quantitative limit laid down for the category to which the transfer is made. Amounts may be transferred into any category in Groups II, III, IV and V from any category in Groups I, II, III, IV and V up to 7 % of the specific quantitative limit laid down for the category to which the transfer is made.

4 The table of equivalence applicable to the transfers referred to above is given in Annex I to this Agreement.

5 The increase in any category of products resulting from the cumulative application of the provisions in paragraphs 1, 2 and 3 during an Agreement year must not exceed 17 %.

6 The Vietnamese authorities shall give the Community prior notification of any recourse to the provisions of paragraphs 1, 2 and 3.”