yarn quotas) and between Categories 5 - 8. No swing into Group I from other Groups will be allowed, although swing within and between products in the other Groups will be allowed, again within limits.
(vi) Licensing and Control
details of the new categories were published in a Notice to Importers on 25 November. Copy is at Annex D
Under the previous bilateral agreements product categories often covered a wide range of products. The effect was to make adequate monitoring difficult and to assist the exporter in making the fullest possible use of quotas by using the It was maximum flexibility within particular categories. also difficult to prevent damaging concentration on particula product's within a category. Under the new agreements there are now some 120 different categories (as against about 60 before); and definitions are much more carefully drawn to make quota evasion more difficult. The same categorisation will apply in all the agreements and this will make it possible to monitor developments more closely than before and in this way enable the Community to operate the trigger mechanisms as soon as any threats of disruption come to light. The UK already operates a system of surveillance licensing which has helped to identify new problems. Commission will be proposing common monitoring arrangements. based on the new product categorisations, for all member states. To reduce the scope for evading quotas imports covered by the new agreements will now have to be accompanied by a certificate of origin in addition to the export licence required under the previous agreements.
Arrangements with Mediterranean suppliers
The
8 Four countries have agreed to voluntary restraint on their exports of certain products to the Community in 1978. These are Greece, Turkey, Morocco and Tunisia. Where Group I products are concerned, these countries have agreed to respect the global ceilings for individual member states as well as for the Community as a whole. The Commission have made it clear that if the levels specified for any member state are in danger of being exceeded, they will intervene immediately with the country concerned to check further exports. Spain and Portugal have not so far been prepared to agree to voluntary restraint. They have therefore been notified of levels for certain products which should be adhered to and warned of immediate safeguard action should these levels be exceeded, These arrangements will apply initially for one year, but the Commission have made it clear that the EFC expects restraints of this kind tooperate for the next five years.
Poland and Hungary
9 Quotas under the rules for state trading countries will continue to apply to Poland and Hungary as they did in 1977, until new agreements are signed. All products which would be under
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