COM.TEX/SB/323 Page 2
MEMORANDUM OF UNDERSTANDING
1. Having examined the current pattern and development of trade in certain textile products exported from Hong Kong to Austria, Austria and Hong Kong agree that an export authorization system involving the following arrangements shall be introduced for the period 1 February 1978 to
31 January 1979 in respect of the products listed in the Annex to this Memorandum.
2. Hong Kong shall require all exports to Austria of the products listed in the Annex to be covered by export authorizations issued by the Hong Kong Trade Industry and Customs Department. An export authorization shall be issued only on evidence of a firm contract for the supply of the goods involved and shall be valid for up to six months from the date of issue.
3. Export licences to ship goods covered by an export authorization will be issued by Hong Kong on presentation of the relevant export authorization within the latter's validity period. An export licence shall be valid for twenty-eight days from the date of issue. Hong Kong shall not issue export licences in respect of exports to Austria of products listed in the Annex which are not covered by a valid export authorization.
4. Hong Kong shall provide Austria with half-monthly statistical returns showing the quantities covered by export authorizations issued to Hong Kong exporters in respect of the products listed in the Annex. Hong Kong agrees to notify Austria immediately upon receipt of any applications for export authorizations in exceptionally large amounts in a particular product.
5.
Austria shall admit imports of the textile products of Hong Kong origin listed in the Annex where such imports are accompanied by a copy of an export licence issued by the Hong Kong Trade Industry and Customs Department.
6. Austria may request Hong Kong to suspend the issue of export authoriza- tions if, in the opinion of Austria, the Austrian market is being disrupted in terms of the definition of market disruption in Annex A of the Arrangement Regarding International Trade in Textiles, by imports from Hong Kong of any of the products covered by these arrangements. Such a request shall be accompanied by a request for consulations under Article 3 of the Arrangement Regarding International Trade in Textiles and by a detailed factual statement of the reasons and justification for the request for consultations, including the latest data concerning elements of market disruption.
7. Upon receipt of such a request for suspension and for consultations, Hong Kong shall suspend immediately the issue of export authorizations in respect of the relevant product. Hong Kong may, however, continue to issue export licences against valid export authorizations issued before such a suspension.