WORLD TRADE G/TMB/N/157
2October 1996
ORGANIZATION(96-3670)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withHong Kong
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/157
Page2
ThePermanent Mission ofCanada
totheUnited Nations
1rueduPré-de-la-Bichette
1202 Geneva
37-WTO-TMB
13March 1996
Dear Ambassador Szepesi,
Pursuant toArticle 2.17oftheAgreement onTextiles andClothing, Ihavethehonour tonotify
theAdministrative Arrangements thathave been concluded withthefollowing WTO Members:
Bangladesh,Brazil,CostaRica,Cuba,HongKong1,Hungary,India,Indonesia,Korea,Lesotho,Macau,
Malaysia, Mauritius, Pakistan, Philippines, Romania, Slovak Republic, SriLanka, Swaziland, Thailand
andUruguay.
Yours sincerely,
(Signed) JeanSaint-Jacques
Counsellor
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
154ruedeLausanne
1211 Geneva
1Thisdocument contains theAdministrative Arrangements withHong Kong. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/157
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Memorandum ofUnderstanding Between theGovernment ofCanada andthe
Government ofHong Kong Relating totheExport from Hong Kong
ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andHong Kong, pursuant toArticle 2.17of
theMTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andHong Kong tobenotified pursuant toArticle 2.1oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shallbe
implemented onthebasis oftheexport control system operated bytheGovernment ofHong Kong.
Exports ofthetextile products included intherestraints notified under Article 2.1oftheATC shall
becovered byanoriginal fourth copy oftheExport Licence endorsed andissued bythecompetent
authorities ofHong Kong totheeffect thatthegoods covered bytheexport licence havebeendebited
from theapplicable quantitative limit.
3. Forthepurpose ofimplementing thesearrangements, thedateofexport fromHong Kong shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. [Deleted]
5. Export licences issued bytheGovernment ofHong Kong inrespect ofrestrained textile products
shallcontain thefollowing information:
(a) Country ofdestination;
(b) country oforigin;
(c) licence number;
(d) importer 'sname andaddress;
(e) exporter 'sname andaddress;
(f) itemnumberanddescriptionofproductascontainedinthenotificationunderArticle2.1
oftheATC;
(g) quantity expressed intheunits designated foreachproduct inthenotification under
Article 2.1oftheATC. Ifmore thanonesetofmeasures isestablished, allshould
beindicated; where thequantity isexpressed other thanasdesignated, theequivalent
weight, unitsorm2should becalculated inaccordance withtheconversion factors set
outintherestraint notified under Article 2.1oftheATC;
(h) f.o.b. andc.i.f. value except fornon-commercial consignments;G/TMB/N/157
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(i) certification bytheGovernment ofHong Kong thatthequantity hasbeendebited from
theagreed restraint limitforexports toCanada, orwhere appropriate, isforimmediate
re-export orforinward processing andsubsequent re-export from Canada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
ofHong Kong shallnotify theGovernment ofCanada ofsuchquantity which maybecredited bythe
Government ofHong Kong totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government ofHong Kong shallrestrain itsexports toCanada ofthetextile products notified pursuant
toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, asmodified bythe
provisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1oftheATC, it
isunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments inexcess of
therestraint levels notified under Article 2.1oftheATC, asmodified bytheprovisions ofArticles 2.7,
2.8,2.13and2.14oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofHong
Kong mayexceed thespecified annual quantitative limituptothepercentage specified intherestraint
notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted from any
other restraint level. When anyrestraint limitisexceeded bytheapplication ofswing, theGovernment
ofHong Kong shallsoindicate insubsequent monthly statistical reports.
9. Forthepurpose ofimplementing theswing provisions inparagraph 8,theconversion factors
specified intherestraint notification under Article 2.1oftheATC shallapply.
Carryover/carry forward
10. Following notification totheGovernment ofCanada ofthequantities involved, portions of
anyquantitative limitwhich arenotusedduring theannual restraint period maybecarried overand
added tothecorresponding quantitative limitforthefollowing annual restraint period. Therestraint
limitforanysuchrestraint period shallbeincreased within thepercentage limits specified intherestraint
notification under Article 2.1oftheATC.
11. Following notification totheGovernment ofCanada ofthequantities involved, anyrestraint
limitmaybeincreasedwithinthepercentagelimitsspecifiedintherestraintnotificationunderArticle2.1
oftheATC byaquantity advanced from thecorresponding restraint limitforthefollowing annual
restraint period. Therestraint limitforanysuchfollowing restraint period shallbereduced byaquantity
equal tothequantity soadvanced.
Exchange ofstatistics
12. TheGovernmentofHongKongshallprovidetheGovernmentofCanadawithmonthlystatistical
reports relating toexports ofrestrained textile products described, licensed forexport toCanada and
debited fromthequantitative limits foreachrestraint period. These statistics shallincluded thefollowing
information:
(a) Itemnumber anddescription;
(b) original andadjusted restraint limits fortherestraint period;G/TMB/N/157
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(c) totalquantity issued fortherestraint period todate;
(d) Notification ofanyutilization ofswing, carryover orcarry forward provisions and
thequantities involved asprovided forinparagraphs 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
13. TheGovernmentofCanadashallprovidetheGovernmentofHongKongwithmonthlystatistical
reports relating toimport permits issued forimports originating inHong Kong oftextile products listed
inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Hong Kong.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment ofHong Kong
when imports intoCanada ofrestrained textile products aresubsequently re-exported from Canada.
Where suchre-exports haveoriginally beendebited bytheGovernment ofHong Kong fromquantitative
limits, theGovernment ofHong Kong maythencredit backthequantity involved totheappropriate
quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment ofHong Kong andtheGovernment of
Canada express theirwillingness toconsult, onrequest, onanymatter arising fromtheimplementation
oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(asagreed bycorrespondence)G/TMB/N/157
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ANNEX I-RESTRAINT LEVELS 1995
HONG KONG
GROUP I
(A)
Agreement
Item
No.(B)
Product coverage(C)
1995
Restraint
level (NMB)(D)
WTO
growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit) Category Short description
1a(Note 1) 1.1
1.3Coats;
Rainwear205,641 0.986% 5% 10%(5%) NA 3.8
1b 1.2*Jackets 791,863 0.986% 5% 8%(5%) NA 3.0
2(Note 1) 2.0 Winter outerwear 461,856 0.870% 5% 10%(5%) NA 2.9
3/4a 3.2*
4.1*
4.2*Ensembles, MBC;
Suits &ensembles, WGC;
Jackets &blazers, WGC1,267,092 1.624% 5% 10%(5%) NA 2.7
3b(Note 2) 3.1
3.3Suits, MB;
Jackets &blazers, MB98,147 0.986% 5% 10%(5%) NA 3.8
4b 4.3*
4.4*Dresses;
Skirts2,002,741 1.508% 5% 10%(5%) NA 2.7
5 5.0*Trousers, overalls &shorts 6,788,830 0.870% 5% 10%(5%) NA 1.6
5a 5.1*
5.2*-ofwhich:
Trousers, MB;
Trousers, WG5,459,268 0.870% 5% 10%(5%) NA 1.6
6(Note 3) 6.0*Tailored collar shirts, MBC 3,131,653 0.870% 5% 10%(5%) NA 1.8
7/8 7.0*
8.0*Woven shirts, blouses &
similar articles;
Athletic wear, (k/c) shirts,
blouses &similar articles,
T-shirts &sweatshirts14,705,895 1.508% 7% 10%(5%) NA 1.5
7/8a
(Note 4)7.1*
7.2*
8.1*-ofwhich:
Woven shirts &similar
articles, MB:
Woven blouses &similar
articles, WG;
k/cshirts, blouses &
similar articles, MBWG10,032,336 1.508% 7% 10%(5%) NA 1.5
7/8b 8.4*-ofwhich:
Athletic wear 96,036 1.508% 7% 10%(5%) NA 1.5
9 9.0*Underwear 8,996,987 1.740% 7% 10%(5%) NA 0.8
*Includes silkandother vegetable fibres.
Note 1:Excludes HScodes forlinings ofsubcategory 1.1andcategory 2.0,ofheadings 61.17 and62.17.
Note 2:Excludes HScodes forchildren ofsubcategories 3.1and3.3.
Note 3:Excludes HScodes forchildren ofcategory 6.0,oflessthansize4.
Note 4:Excludes HScodes forchildren ofsubcategory 8.1.G/TMB/N/157
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ANNEX I-RESTRAINT LEVELS 1995
HONG KONG
GROUP I(cont'd)
(A)
Agreement
Item
No.(B)
Product coverage(C)
1995
Restraint
level (NMB)(D)
WTO
growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit) Category Short description
10a 10.1*Sleepwear, MBWG 417,222 1.740% 5% 10%(5%) NA 2.8
11 11.0*Sweaters 8,916,176 0.870% 7% 10%(5%) NA 1.2
11a 11.1*-ofwhich:
Sweaters, MB 1,475,455 0.870% 7% 10%(5%) NA 1.2
12 12.0 Swimwear 1,166,801 1.740% 5% 10%(5%) NA 1.3
13 13.0 Foundation garments
(NMB)1,161,103 1.624% 5% 10%(5%) NA 0.3
14(Note 5)
(Note 6)14.0 Babies 'garments 781,383 1.566% 5% 10%(5%) NA 0.7
*Includes silkandother vegetable fibres.
Note 5:Export authorization forsubcategories 10.2, 10.3and14.6andbathrobes ofsubcategory 14.9.
Note 6:Excludes tailored collar shirts ofsubcategory 14.3.G/TMB/N/157
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ANNEX I-RESTRAINT LEVELS
HONG KONG
GROUP II
(A)
Agreement
No.(B)
Product coverage(C)
1995
Restraint
level (unit)(D)
WTO
growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit) Category Short description
30b(Note 7) 32.1
32.2
36Cotton fabric, unbleached
(MTK);
Cotton fabric, finished
(MTK);
Poly/cotton fabric (MTK)39,693,396 6.960% 5% 10%(5%) NA 1.0
32a(Note 7) 32.3 Denim fabric (MTK) 7,674,986 6.960% 5% 10%(5%) NA 1.0
41a(Note 8) 41.1 Bedsheets (NMB) 670,575 6.960% 5% 10%(5%) NA 5.2
Note 7:Excludes headings ofChapter 59.
Note 8:Products ofcotton andofman-made fibres.