EXCHANGE OF LETTERS between the European Community and the Republic of Bulgaria amending the Interim Agreement on trade and trade-related matters between the European Economic Community and the European Coal and Steel Community, of the one part, and the Republic of Bulgaria, of the other part, and the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, both as amended by the Additional Protocol signed on 21 December 1993

A. Letter from the Community

Brussels, 30 June 1994

Sir. . . . . .

The Interim Agreement between the European Economic Community and the European Coal and Steel Community and the Republic of Bulgaria, which contains the provisions on trade and trade-related matters found in the Europe Agreement, was signed in Brussels on 8 March 1993 in order to bring about a rapid implementation of those provisions. When the Interim Agreement was signed the envisaged date of entry into force was 1 June 1993. However, the actual date of entry into force of the Interim Agreement was 31 December 1993. The Parties therefore agreed that Bulgaria should exceptionally be allowed to carry-over certain quotas and ceilings which were granted by the Interim Agreement for 1993, but have not been utilized by Bulgaria due to the late entry into force. The modalities for the carry-over shall be as follows:

1. Bulgaria shall be granted additional amounts under the tariff quotas and ceilings provided for in the Interim Agreement for 1993 for products imported into the Community under CN codes referred to in Annex III, which have not been used due to the late entry into force of the Interim Agreement.

In conformity with paragraph 2 of Protocol 7 to the Interim Agreement there shall be deducted from these additional amounts those products for which import certificates have been issued under the EC Council Regulation applying generalized tariff preferences between 1 January 1993 and 30 December 1993.

For the imports into the Community, Bulgaria shall be entitled to 40 % of these additional amounts as of 1 July 1994, the remaining 60 % as of 1 January 1995. The additional imports shall benefit from the same terms and conditions as provided for in Article 2 of the Additional Protocol.

2. From 1 July 1994, the beginning of the third year, and for the fourth and fifth years as defined in Article 4 (3) (1a) of the Additional Protocol Bulgaria shall be granted additional quantities for imports into the Community of products under the CN codes referred to in Annexes XIII a and XIII b of the Interim Agreement and the Europe Agreement. These additional quantities shall be calculated as three equal shares of the quantities granted under the Interim Agreement for 1993, but not utilized due to the late entry into force. The additional quantities shall be calculated pro rata assuming as date of entry into force 1 June 1993.

An exception shall be made from the preceding paragraph for products imported under CN codes 0104 and 0204 as well as ex 0406 90. Additional quantities for these products shall be granted to Bulgaria from 1 July 1994 and for the following years calculated on the basis of five equal shares of the quantities not utilized in 1993 due to the late entry into force of the Interim Agreement.

3. Beginning with the entry into force of this amendment and for the two years thereafter, Bulgaria shall be entitled to additional quantities for imports into the Community of products under the CN codes referred to in Annex II of Protocol 3 of the Interim Agreement.

The quantities shall be calculated as three equal shares of the quantities granted but not used in 1993 due to the late entry into force of the Agreement.

4. This amendment shall take effect on 1 July 1994. The Parties shall notify each other of the completion of the procedures necessary for that purpose.

I should be grateful if you could confirm that your Government is in agreement with the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the European Community

B. Letter from Bulgaria

Brussels, 30 June 1994

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'The Interim Agreement between the European Economic Community and the European Coal and Steel Community and the Republic of Bulgaria, which contains the provisions on trade and trade-related matters found in the Europe Agreement, was signed in Brussels on 8 March 1993 in order to bring about a rapid implementation of those provisions. When the Interim Agreement was signed the envisaged date of entry into force was 1 June 1993. However, the actual date of entry into force of the Interim Agreement was 31 December 1993. The Parties therefore agreed that Bulgaria should exceptionally be allowed to carry-over certain quotas and ceilings which were granted by the Interim Agreement for 1993, but have not been utilized by Bulgaria due to the late entry into force. The modalities for the carry-over shall be as follows:

1. Bulgaria shall be granted additional amounts under the tariff quotas and ceilings provided for in the Interim Agreement for 1993 for products imported into the Community under CN codes referred to in Annex III, which have not been used due to the late entry into force of the Interim Agreement.

In conformity with paragraph 2 of Protocol 7 to the Interim Agreement there shall be deducted from these additional amounts those products for which import certificates have been issued under the EC Council Regulation applying generalized tariff preferences between 1 January 1993 and 30 December 1993.

For the imports into the Community, Bulgaria shall be entitled to 40 % of these additional amounts as of 1 July 1994, the remaining 60 % as of 1 January 1995. The additional imports shall benefit from the same terms and conditions as provided for in Article 2 of the Additional Protocol.

2. From 1 July 1994, the beginning of the third year, and for the fourth and fifth years as defined in Article 4 (3) (1a) of the Additional Protocol Bulgaria shall be granted additional quantities for imports into the Community of products under the CN codes referred to in Annexes XIIIa and XIIIb of the Interim Agreement and the Europe Agreement. These additional quantities shall be calculated as three equal shares of the quantities granted under the Interim Agreement for 1993, but not utilized due to the late entry into force. The additional quantities shall be calculated pro rata assuming as date of entry into force 1 June 1993.

An exception shall be made from the preceding paragraph for products imported under CN codes 0104 and 0204 as well as ex 0406 90. Additional quantities for these products shall be granted to Bulgaria from 1 July 1994 and for the following years calculated on the basis of five equal shares of the quantities not utilized in 1993 due to the late entry into force of the Interim Agreement.

3. Beginning with the entry into force of this amendment and for the two years thereafter, Bulgaria shall be entitled to additional quantities for imports into the Community of products under the CN codes referred to in Annex II of Portocol 3 of the Interim Agreement.

The quantities shall be calculated as three equal shares of the quantities granted but not used in 1993 due to the late entry into force of the Agreement.

4. This amendment shall take effect on 1 July 1994. The Parties shall notify each other of the completion of the procedures necessary for that purpose.

I should be grateful if you could confirm that your Government is in agreement with the contents of this letter.`

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of of the Republic of Bulgaria