Agreement in the form of an Exchange of Letters

between the European Community and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union

A. Letter from the European Community

Sir,

Following the initiation of negotiations between the European Communities (EC) and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu under Article XXIV:6 and Article XXVIII of GATT 1994 for the modification of concessions in the Schedules of Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the EC, the following is agreed between the EC and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu in order to conclude the negotiations initiated following the EC's notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994.

The EC agrees to incorporate in its Schedule for the customs territory of EC 25, the concessions that were included in its previous schedule of EC 15.

The EC agrees that it will incorporate in its schedule for the EC 25 the following concession:

87120030 (bicycles not motorised): A lowering of the current bound EC duty of 15 % to 14,0 %.

This Agreement shall enter into force upon the Exchange of Letters of agreement, following consideration by the parties in accordance with their own procedures. The EC shall use its best endeavours to put in place the appropriate implementing measures before 1 March 2006 and under no circumstances later than 1 July 2006.

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

On behalf of the European Community

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B. Letter from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu

Sir,

Reference is made to your letter stating:

"Following the initiation of negotiations between the European Communities (EC) and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu under Article XXIV:6 and Article XXVIII of GATT 1994 for the modification of concessions in the Schedules of Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the EC, the following is agreed between the EC and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu in order to conclude the negotiations initiated following the EC's notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994.

The EC agrees to incorporate in its Schedule for the customs territory of EC 25, the concessions that were included in its previous schedule of EC 15.

The EC agrees that it will incorporate in its schedule for the EC 25 the following concession:

87120030 (bicycles not motorised): A lowering of the current bound EC duty of 15 % to 14,0 %.

This Agreement shall enter into force upon the Exchange of Letters of agreement, following consideration by the parties in accordance with their own procedures. The EC shall use its best endeavours to put in place the appropriate implementing measures before 1 March 2006 and under no circumstances later than 1 July 2006."

I hereby have the honour to express my Government's agreement.

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

On behalf of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu

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