WORLD TRADE
ORGANIZATIONG/TMB/N/325
28 May 1998
(98-2220)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements with the Czech Republic
The Textiles Monitoring Body has received a notification from Canada pursuant to
paragraph 17 of Article 2.  The TMB is circulating this notification to WTO Members for their
information.G/TMB/N/325
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The Permanent Mission of Canada to the United Nations
1 rue du Pré-de-la Bichette
1202 Geneva
29 April 1998
Ambassador András Szepesi
ChairmanTextiles Monitoring Body
World Trade Organization
Centre William Rappard
154 Rue de Lausanne
1211 Geneva
Dear Ambassador Szepesi,
Pursuant to Article 2.17 of the Agreement on Textiles and Clothing, I have the honour to
notify the Administrative Arrangement that has been concluded with the WTO Member Czech
Republic.
Yours sincerely,
(Signed) A. R. Sandy Moroz
First SecretaryG/TMB/N/325
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Memorandum of Understanding Between the Government of Canada and
the Government of the Czech Republic Relating to
the Export from the Czech Republic of Certain Textile Products to Canada
Introduction
1. This Memorandum of Understanding (MOU) sets out the administrative procedures that have
been agreed upon between the Governments of Canada and the Czech Republic, pursuant toArticle 2.17 of the MTN Agreement on Textiles and Clothing (ATC) in order to implement the
textiles and clothing restraints between Canada and the Czech Republic to be notified pursuant to
Article 2.1 of the ATC.  These provisions will also apply with respect to any restraint introduced by
Canada on imports of textiles and clothing from the Czech Republic pursuant to the provisions of
Article 6 of the ATC.
Implementation
2. In accordance with the provisions of Article 4.1 of the ATC, these procedures shall be
implemented on the basis of the export control system operated by the Government of the
Czech Republic.  Exports of the textile products included in the restraints notified under Article 2.1 of
the ATC shall be covered by an original "Export Licence" endorsed and issued by the competent
authorities of the Czech Republic to the effect that the goods covered by the export licence have been
debited from the applicable quantitative limit.
3. For the purpose of implementing these procedures, the date of export from the Czech
Republic shall be used to determine the restraint period in which any shipments of textile products
shall be counted.
4. The Government of the Czech Republic shall endeavour to ensure that exports to Canada of
all restrained textile products are spaced out as evenly as possible during each restraint period, dueaccount being taken of seasonal factors and of normal channels of trade.
5. Export licences issued by the competent authorities of the Czech Republic in respect of
restrained textile products shall contain the following information:
(a) Country of destination;
(b) Country of origin;(c) Licence number and quota year;
(d) Importer's name and address;
(e) Exporter's name and address;
(f) Item number and description of product as contained in the notification under
Article 2.1 of the ATC;
(g) Quantity expressed in the units designated for each product in the notification under
Article 2.1 of the ATC.  If more than one set of measures is established, all should be
indicated;  where the quantity is expressed other than as designated, the equivalent
weight, units or M2 should be calculated in accordance with the conversion factors
set out in the restraint notified under Article 2.1 of the ATC;G/TMB/N/325
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(h) F.O.B. or C.I.F. value except for non-commercial consignments;
(i) Certification by the competent authorities of the Czech Republic that the quantity has
been debited from the agreed restraint limit for exports to Canada.
6. In the event that any quantity covered by an export licence is not shipped, the competent
organizations of the Czech Republic shall notify the competent Canadian authorities of such quantity
which may be credited by the authorities of the Czech Republic to the appropriate restraint limit.
7. Except as provided for in paragraphs 8 to 11 below (swing and carryover/carry forward), the
Government of the Czech Republic shall restrain its exports to Canada of the textile products notified
pursuant to Article 2.1 of the ATC to the limits modified under Article 2.1 of the ATC, as modified by
the provisions of Articles 2.7, 2.8, 2.13 and 2.14 of the ATC.  Pursuant to Article 4.1 of the ATC, it is
understood that the Government of Canada shall no t be obliged to accept shipments in excess of the
restraint levels notified under Article 2.1 of the ATC, as modified by the provisions of Articles 2.7,
2.8, 2.13 and 2.14 of the ATC.
Swing
8. Subject to the specific limitations contained in the restraint notification under Article 2.1 of
the ATC, and following notification to the appropria te Canadian authorities, the Government of the
Czech Republic may exceed the specified annual quantitative limit up to the percentage specified in
the restraint notification under Article 2.1 of the ATC, provided that an equivalent amount is deductedfrom any other restraint level.  When  any restraint limit is exceeded by the application of swing, the
authorities of the Czech Republic shall so indicate in subsequent monthly statistical reports.
9. For the purpose of implementing the swing provisions in paragraph 8, the conversion factors
specified in the restraint notification under Article 2.1 of the ATC shall apply.
Carryover/Carry Forward
10. Following notification to the appropriate Canadian authorities of the quantities involved,
portions of any quantitative limit which are not used during the annual restraint period may be carried
over and added to the corresponding quantitative limit for the following annual restraint period.  The
restraint limit for any such restraint period shall be increased within the percentage limits specified in
the restraint notification under Article 2.1 of the ATC.
11. Following notification to the appropriate Canadian authorities of the quantities involved, any
restraint limit may be increased within the percentage limits specified in the restraint notification
under Article 2.1 of the ATC by a quantity advanced from the corresponding restraint limit for the
following annual restraint period.  The restraint lim it for any such following restraint period shall be
reduced by a quantity equal to the quantity so advanced.
Exchange of Statistics
12. The appropriate authorities of the Czech Republic shall provide the appropriate Canadian
authorities with monthly statistical reports relating to exports of restrained textile products licensed
for export to Canada and debited from the quantitative limits for each restraint period.  These statistics
shall include the following information:
(a) Item number and description.
(b) Original and adjusted restraint limits for the restraint period.G/TMB/N/325
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(c) Total quantity issued for the restraint period to date.
(d) Notification of any utilization of swing, carryover or carry forward provisions and the
quantities involved as provided for in paragraphs 8 to 11 above.
This information should be provided as soon as possible following the end of each month.
13. The appropriate Canadian authorities shall provide the appropriate authorities of the
Czech Republic with monthly statistical reports relating to import permits of textile products issuedfor imports originating in the Czech Republic, as notified to the WTO under Article 2.1.
14. Both Governments reserve the right to request additional statistics as may be reasonably
required, including statistics relating to the export or import of products not contained in the
notification, under Article 2.1 of the ATC, of Canada 's restraints on imports from the Czech Republic.
Re-exports
15. The appropriate Canadian authorities shall, so far as possible, inform the appropriate
authorities of the Czech Republic when imports into Canada of restrained textile products aresubsequently re-exported from Canada.  Where such re-exports have originally been debited by the
appropriate authorities of the Czech Republic from quantitative limits, the appropriate authorities of
the Czech Republic may then credit back the quantity involved to the appropriate quantitative limits.
Consultations
16. Pursuant to Article 8.4 of the ATC, the Gove rnment of Canada and the Government of the
Czech Republic express their willingness to consult, on request, on any matter arising from the
implementation or operation of the ATC or of this Memorandum of Understanding or on any matter
germane thereto.
Entry into Force
17. This Memorandum of Understanding shall enter into force at the date of its signature.
Done at Prague on 5 March, 1998, in two originals in English and Czech languages, both
being equally authentic.
(Signed) (Signed)
For the Government of Canada For the Government of the
Czech Republic
_______________