WORLD TRADE G/TMB/N/163
21October 1996
ORGANIZATION(96-3524)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withMacau
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/163
Page2
ThePermanent Mission ofCanada
totheUnited Nations
1rueduPré-de-la-Bichette
1202 Geneva
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,HongKong,Hungary,India,Indonesia,Korea,Lesotho,Macau1,
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 withMacau. Arrangements concluded withthe
other WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/163
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Memorandum ofUnderstanding Between theGovernment ofCanada and
theGovernment ofMacau Relating totheExport from
Macau ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andMacau, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraintsbetweenCanadaandMacautobenotifiedpursuanttoArticle2.1oftheATC.Theseprovisions
willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles andclothing
from Macau pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasisoftheexport control system operated bytheGovernment ofMacau. Exports
ofthetextile products included intherestraints notified under Article 2.1oftheATC shallbecovered
byanoriginal "Export Licence" endorsed andissued bythecompetent authorities ofMacau tothe
effect thatthegoods covered bytheexport licence havebeendebited fromtheapplicable quantitative
limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport fromMacau shallbe
usedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment ofMacau shallendeavour toensure thatexports toCanada ofallrestrained
textile products arespaced outasevenly aspossible during eachrestraint period, dueaccount being
taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment ofMacau inrespect ofrestrained textile products
shallcontain thefollowing information:
(a) Country ofdestination;
(b) Country oforigin;
(c) Licence number andquota year;
(d) Importer 'sname andaddress;
(e) Exporter 'sname andaddress;
(f) ItemnumberanddescriptionofproductascontainedinthenotificationunderArticle2.1
oftheATC;
(g) Quantity expressed intheunitsdesignated 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;G/TMB/N/163
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(h) F.o.b. orc.i.f. value except fornon-commercial consignments;
(i) Certification bythecompetent authorities ofMacau thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
ofMacau shall notify theGovernment ofCanada ofsuchquantity which maybecredited bythe
Government ofMacau totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government ofMacau shallrestrain itsexports toCanada ofthetextile products notified pursuant to
Article 2.1oftheATCtothelimits notified under Article 2.1oftheATC, asmodified bytheprovisions
ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1oftheATC, itisunderstood
thattheGovernment ofCanada shallnotbeobliged toaccept shipments inexcess oftherestraint levels
notified under Article 2.1oftheATC, asmodified bytheprovisions ofArticles 2.7,2.8,2.13and
2.14oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofMacau
mayexceed thespecified annual quantitative limit uptothepercentage specified intherestraint
notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted from any
other restraint level. When anyrestraint limitisexceeded bytheapplication ofswing, theGovernment
ofMacau 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. TheGovernment ofMacau shallprovide theGovernment ofCanada withmonthly statistical
reports relating toexports ofrestrained textile products, licensed forexport toCanada anddebited
from thequantitative limits foreachrestraint period. These statistics shall include thefollowing
information:G/TMB/N/163
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(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;
(c) Total quantity 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. TheGovernment ofCanada shallprovide theGovernment ofMacau withmonthly statistical
reports relating toimport permits issued forimports originating inMacau oftextile products listed
inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Macau.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment ofMacau when
imports intoCanada ofrestrained textile products aresubsequently re-exported fromCanada. Where
suchre-exports haveoriginally beendebited bytheGovernment ofMacau from quantitative limits,
theGovernment ofMacau maythencredit backthequantity involved totheappropriate quantitative
limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment ofMacau andtheGovernment ofCanada
express theirwillingness toconsult, onrequest, onanymatter arising from theimplementation or
operation oftheATC orofthisMOU oronanymatter germane thereto.
(Asagreed tobycorrespondence)G/TMB/N/163
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Commission forCanada
13thFl.,OneExchange Square
8Connaught Place
Hong Kong
Macau, 3January 1995
TheGovernment ofMacau presents itscompliments totheGovernment ofCanada through
itsCommission inHong Kong, andhasthehonour ofinforming thatitaccepts theterms ofthe
MemorandumofUnderstandingrelatingtotheExportfromMacauofCertainTextileProductstoCanada,
sentunder theCommission forCanada 'sNote XBTD2167 of29December 1994.
ThesaidMemorandum ofUnderstanding (extension oftheMOU andadoption ofadministrative
arrangements) shallconstitute theagreement between theGovernments ofMacau andCanada onthose
matters andishereby assuchacknowledged bytheGovernment ofMacau.
TheGovernment ofMacau avails itselfofthisopportunity torenew theexpression ofitshighest
esteem totheGovernment ofCanada, through itsCommission inHong Kong.
(Signed) Maria Gariela dosRemédios César
Director
Macau Economic ServicesG/TMB/N/163
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ANNEX I-RESTRAINT LEVELS
MACAU
(A)
Agreement
Item
No.(B)
Product coverage(C)
1992
Restraint
level (unit)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit)
Category Short description
A(1.0-14.0, 16.0)* Allclothing (M2) 4,277,637 6% N/A 11%(6%) 11% N/A
1 1.0* Coats, jackets, rainwear 341,694 6% 6% 11%(6%) 15% 3.5
2 2.0* Winter outerwear 53,723 6% 6% 11%(6%) 15% 2.8
3a 3.1*
3.3*Suits, MBC;
Jackets andblazers,
MBC17,910 6% 6% 11%(6%) 15% 3.6
3b 3.2* Ensembles, MBC - - - - - 3.8
4a 4.1*
4.2*Suits andensembles
WGC;
Jackets andblazers,
WGC- - - - - 3.8
4b 4.3*
4.4*Dresses;
Skirts- - - - - 3.8
5 5.0* Trousers, overalls and
shorts569,490 6% 6% 11%(6%) 15% 1.5
6 6.0* Tailored collar shirts,
MBC227,795 6% 6% 11%(6%) 15% 1.7
7/8 7.0*
8.0*Woven shirts, blouses
andsimilar articles
Athletic wear, (k/c)
shirts, blouses and
similar articles, T-shirts
andsweatshirts- - - - - 1.7
9 9.0* Underwear - - - - - 1.0
10 10.0* Sleepwear andbathrobes - - - - - 3.4
11 11.0* Sweaters 487,711 6% 6% 11%(6%) 15% 1.1
12 12.0* Swimwear - - - - - 1.0
13 13.0* Foundation garments - - - - - 1.0
14 14.0* Babies 'garments - - - - - 1.5
16 16.0* Smocks andsopcoats - - - - - 3.5
*Includes extended fibrecoverage.
Note: -Swing isallowed between ItemNos. 1,2,3a,5,6and11only.
-N/Ameans notapplicable.