Naval agreement, we hear, with ship producing make-up (3,5)

'make-up' is the definition.
(type of eye make-up)

'naval agreement we hear with ship' is the wordplay.
'naval agreement' becomes 'aye' (term for 'yes' at sea, eg in the Navy).
'we hear' indicates a 'sounds like' (homophone) clue.
'with' means one lot of letters go next to another.
'ship' becomes 'liner' (liner is a kind of ship).
'aye' is a homophone of 'eye'.
'eye'+'liner'='EYE LINER'

'producing' acts as a link.