Memorandum Of Understanding Between The Government Of Turkey And The Republic Of Latvia Concerning Trade In Textile Products

In order to implement the Customs Union between Turkey and the EU on 1 January 1996, which will permit free circulation of all textiles and clothing products between the EU and Turkey, Turkey will apply as of the date of entry into force the same external tariff as the Common Customs Tariff of the EU and the same rules of commerce as those of the EU on imports of textiles and clothing from third countries.

Therefore, with a view to avoiding any disruption to trade in textiles and clothing products between their two countries or any uncertainty for economic operators as a result of the introduction of the measures referred to above. Latvia and Turkey have agreed upon the following arrangement, which is based as far as possible on the bilateral agreement between the Republic of Latvia and the European Community initialled on 15 June 1993, amended by Exchange of letters initialled on 15 May 1995.

This arrangement shall apply to trade in textile products listed in Annex I to the above–mentioned agreement between Latvia and the European Community.

Exports from Latvia to Turkey of products listed in Annex I to the above–mentioned Agreement between the European Community and Latvia and originating in Latvia shall, at the time of entry into force of this arrangement, be free from quantitative limits.

At the time of entry into force of this arrangement, exports to Turkey of products listed in Annex I to this arrangement, not subject to quantitative limits, shall be subject to the double–checking system specified in Protocol A to the above–mentioned agreement between Latvia and the European Community.

If exports of products in Annex I to the above–mentioned agreement other than those listed in Annex I to this arrangement are made subject, subsequently to the entry into force of this arrangement, to the double–checking system referred to above or to a prior surveillance system introduced by the Community, such measures shall be extended automatically to exports of the products in question from Latvia to Turkey.

Where, in accordance with the provisions of Article 5 of the above–mentioned bilateral agreement between the European Community and the Republic of Latvia, a product listed in Annex I to the Agreement between the European Community and the Republic of Latvia is made subject to a quantitative limit, parallel consultations shall be held between Latvia and Turkey with a view to reaching agreement on an appropriate restraint level also for exports to the Turkish market.

Moreover, where imports into Turkey in a given category listed in Annex I to the Agreement between the European Community and the Republic of Latvia originating in Latvia exceed, in relation to the preceding year’s total imports into Turkey from all sources of products in that category:

— 0,4% for categories of products in Group I,

— 2,4% for categories of products in Group II,

— 8% for categories of products in Groups III, IV and V.

Turkey may request the opening of consultations with a view to reaching agreement on an appropriate restraint level for the products in such category.

In either case, in determining a provisional or a definitive quantitative limit for the Turkish market, Latvia and Turkey shall apply mutatis mutandis the other relevant provisions of Article 5 of above–mentioned agreement between the European Community and the Republic of Latvia.

Should quantitative limits be introduced under the procedures described above. Turkey and Latvia hereby agree to apply to such quantitative limits the same flexibilities and growth rates as those laid down in the above–mentioned agreement between the European Community and the Republic of Latvia. In addition such quantitative limits shall be subject to the double–checking system laid down in Protocol A to the above–mentioned agreement between the European Community and Latvia.

The origin and the classification of the products covered by this agreement shall be determined in accordance with the rules in force in the European Community, which Turkey shall also apply in relation to this arrangement.

Any amendment to these rules of origin or classification shall be communicated to Latvia and shall not have the effect of reducing any quantitative limit established under this arrangement.

The procedures or control of the origin of the products referred to above are laid down in Protocol A to the above–mentioned agreement between the European Community and Latvia.

For the purposes of applying Protocol A the models of the export licences and certificate of origin are set out in Annexes II, III and IV to this arrangement.

Moreover, the standardized number which each certificate of origin and export certificate shall bear will be composed of the following elements:

— two letters identifying Latvia as follows: LV

— two letters identifying Turkey as follows: TR

— a one digit number identifying quota year, corresponding to the last figure in the year in question, e.g. 6 for 1996

— a two digit number running consecutively from 01 to 99 identifying the issuing office

— a five digit number running consecutively from 00001 to 99999.

Latvian exports of cortage industry fabrics woven on hand– or foot–operated looms, garments or other made–up articles obtained manually from such fabrics and traditional folklore handicraft products shall not be subject to quantitative limits, provided that these products meet the conditions laid down in Protocol B to the above–mentioned agreement between the European Community and Latvia.

Nevertheless the model of certificate annexed to protocol B of the above–mentioned agreement between the European Community and Latvia shall be replaced by the specimen set out in Annex V to this arrangement.

Imports into Turkey of textile products covered by this arrangement shall not be subject to quantitative limits, provided that they are declared to be for re–re-export outside Turkey and the European Community in the same state or after processing, within the framework of the administrative system of control which exists within the European Community that Turkey shall also apply in relation to this arrangement.

However, the release for home use of products imported under the conditions referred to above shall be subject to the production of an export certificate issued by the Latvian authorities, and to proof of origin in accordance with the provisions of Protocol A to the above–mentioned agreement between the European Community and Latvia.

Where the Turkish authorities ascertain that imports of textile products have been set off against a quantitative limit established under this arrangement, but that the products have subsequently been re–exported outside Turkey and the European Community, the authorities concerned shall inform the Latvian authorities within four weeks of the quantities involved and authorise imports of identical quantities of the same products, which shall not be set off against the quantitative limit established under this arrangement for the current of the following year, as appropriate.

In view of ensuring the effective functioning of this Agreement, Turkey and Latvia agree to cooperate fully in order to prevent, to investigate and to take any necessary legal and/or administrative action against circumvention by transhipment, re–routing, false declaration concerning the country or place of origin, falsification of documents, false declaration concerning fibre content, quantities description or classification of merchandise and by whatever other means. Accordingly, Latvia and Turkey agree to establish the necessary legal provisions and administrative procedures permitting effective action to be taken against such circumvention, which shall include the adoption of legally binding corrective measures against exporters and/or importers involved.

To this end, both Parties shall apply mutatis mutandis the provisions of Article 6 of the above–mentioned agreement between the European Community and the Republic of Latvia to their trade in textile products covered by this Arrangement.

The terms of this Arrangement shall enter into force on the date at which the EC–Turkey Customs Union is put into full effect.

Annex 1

Products without Quantitative limits

subject to the double checking system

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