RESTRICTED
WORLD TRADE G/TMB/N/147
5March 1996
ORGANIZATION(96-0786)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notifications under Article 3.2(b)
Hungary
TheTextiles Monitoring Body hasreceived thefollowing notifications fromHungary pursuant
toparagraph 2(b)ofArticle 3.
TheTMB hasreviewed these notifications1and,inaccordance withparagraph 5ofArticle 3,
iscirculating them toWTO Members fortheirinformation.
1SeeG/TMB/R/9.G/TMB/N/147
Page2
Delegation oftheRepublic ofHungary
totheWorld Trade Organization
29June1995
Ambassador András Szepesi
Chairman oftheTextiles Monitoring Body
WTO
Geneva
Dear Sir,
Iwishtoinform youthatduetotechnical delay, theHungarian notification under Article 3.2(b)
oftheAgreement onTextiles andClothing willbetransmitted totheTextiles Monitoring Body not
laterthanthefirsthalfofthenextweek.
Yours sincerely,
(signed) Aniko Ivanka
FirstSecretaryG/TMB/N/147
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Permanent Mission ofHungary totheOffice oftheUnited Nations
andother International Organizations
Geneva, 4July1995
Ambassador András Szepesi
Chairman oftheTextiles Monitoring Body
WTO
Geneva
Dear Sir,
Referring toArticle 3.2(b) oftheAgreement onTextiles andClothing, andwithout prejudice
tothejustification oftherestrictions maintained byHungary under theprovisions ofGATT 1994, I
inform youthatthephase-out programme oftherestrictions concerned isthefollowing:
1. Asofthedayofentering intoforce oftheWTO Agreement, on1January 1995, 20percent
ofthetotalvolume ofHungary 's1992 imports* oftextile andclothing products (mainly underwear
articles) subject toconsumer goods quota havebeenliberalized.
2. From 1January 1998, 25percentoftheremaining volume ofHungary 's1992imports oftextile
andclothing products subject toconsumer goods quota inHungary, notified under Article 3.1ofthe
Agreement (contained indocument G/TMB/N/73) willbeliberalized.
3. From 1January 2002, 50percentofthestillremaining volume ofHungary 's1992 imports
oftextile andclothing products subject toconsumer goods quota willbeliberalized.
4. From 1January 2005, thestillremaining restrictions ontextiles andclothing products under
theconsumer goods quota willbeeliminated.
Sincerely yours,
(signed) Aniko Ivanka
FirstSecretary
*Hungary usestheimport dataof1992 which wasthefirststatistical yearaftertheimplementation
ofHSNomenclature.G/TMB/N/147
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Permanent Mission oftheRepublic ofHungary
totheWorld Trade Organization
563/95
Geneva, 21December 1995
Dear Mr.Szepesi,
Inanswer toyourletter of27October 1995concerning theTMB'srequest ofreceiving more
informationontheglobalquotasystemmentionedindocumentG/TMB/N/732andliberalizationmeasures,
Ihavethepleasure insending youtheadditional information bytheHungarian authorities.
Yours sincerely,
András Lakatos
Counsellor
Acting Permanent Representative
ofHungary totheWTO
Mr.András Szepesi
Chairman
Textiles Monitoring Body
WTO
Centre William Rappard
Genève
2SeealsoG/TMB/N/73/Add.1 issued under Article 3.1.G/TMB/N/147
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1. Operation oftheConsumer Goods Global Quota
TheConsumer goods global quota includes fivetextile categories, which arethefollowing:
- overwear
- second-hand clothing
- other clothing andready-made clothing products
- haberdashery products
- textile piece-goods
Theproduct (HScode) coverage ofthequota according totheabove categories isattached intheAnnex.
Individual value ceilings (expressed in$US) areestablished foreachofthetextile categories. According
totheAgreement onAssociation between Hungary andtheEuropean Communities andtheCentral
European FreeTrade Agreement, country shares areallocated totheEU,theCzech Republic, Poland
andSlovakia. Value ceilings andcountry shares for1995 areindicated below.
1995
Total value ceilings
inmillion US$ XU PL CZ SK
Overwear 94 66 3 1.2 1.8
Second-hand clothing 27 18.6
Other clothing andready-made
clothing products 65 42
Haberdashery products 16.3 7
Textile piece-goods 43 34 2 2 2
Country codes: XU European Union
CZ Czech Republic
SK Slovakia
PL Poland
Theglobal quota isannounced intwoequal partsatthebeginning ofthefirstandthesecond half-year.
Licences arevalid bytheendofthecalendar year.
Traditional importers -ifrequested -mayautomatically obtain 80percentoftheirquota shares in
theprevious year. Further applications maybemade iflicences areusedup.Newimporters shall
submit theirapplications inapreset two-week period. Each ofthem mayapply foramaximum of
10percentofthetotalceiling value (except forhaberdashery products andtextile piece-goods where
thelimitis5percent). Incaseofexcess application thedistribution ofthequota ismade onaprorata
basis.
2. Information onLiberalization Measures
Asofthedayofentering intoforce oftheWTO Agreement, on1January 1995, underwear textile
products havebeenliberalized.
Theunderwear textile category includes products withthefollowing HScodenumbers
61.05 62.05
61.07 62.07G/TMB/N/147
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61.08 62.08
61.09 62.10.10-028
61.15.11 62.10.10-037
61.15.12 62.12
61.15.19
61.15.20
61.15.91-997
61.15.92-990
61.15.93-993
61.15.99-991
Forthecalculation ofthephase-out programme Hungary usesimport volume dataof1992which was
thefirststatistical yearaftertheimplementation ofHSnomenclature.
Imports ofunderwear products in1992 amounted to12,718 tonnes, i.e,constituting 20.11 percent
ofthetotalimport volume in1992 oftextile andclothing products subject totheglobal quota on
31December 1994.
Asconcerns further liberalization oftradeintextile products thephase-out programme fortheremaining
quota restrictions isthefollowing:
1. By1January 1998, imports ofproducts accounting foratleast25percentofthe1992import
volume oftextile andclothing products subject totheglobal quota on1January 1995, willbeliberalized.
2. By1January 2001, imports ofproducts accounting foratleast50percentofthe1992import
volume oftextile andclothing products subject totheglobal quota on1January 1998, willbeliberalized.
3. By1January 2005, thestillremaining global quota restrictions ontextile andclothing products
willbeeliminated.
Thephase-outprogrammedetailedabovewasindicatedinourletterdated4July1995.Theliberalization
under thephase-out programme above means thatimports ofliberalized products would befreeof
quantitative restrictions.
Moreover, Hungary intends toincrease thevalue ofthetotalceilings ofeachtextile category ofthe
consumer goods quota for1996 by5percent.G/TMB/N/147
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ANNEX
Product Coverage oftheGlobal Quota
(Textile andClothing Products)
Overwear
6101 6203
6102 6204
6103 6206
6104 6210 ex6210.10-028
6106 ex6210.10-037
6110 6211
6112
6113
6114
6201
6202
Second-hand Clothing
6309
Other Clothing andReady-Made Clothing Products
6117.10 6304
6117.20 6306
6213 6307.10
6214 6307.90
6215 9404.30
6301 9404.90
6302
Haberdashery Products
5511.10 6303
5511.20
Textile Piece-Goods
5311 5704
5407.20 5705
5602 5805
5603 5811
5701 5903
5702 5906
5703 5907