WORLD TRADE G/TMB/N/280
22July1997
ORGANIZATION(97-3026)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withMalaysia
TheTextiles Monitoring Body hasreceived thefollowing notification fromtheUnited States
pursuant toparagraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members
fortheirinformation.G/TMB/N/280
Page2
Executive Office ofthePresident
Office oftheUnited States Trade Representative
28February 1997
TheHonourable Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
AttachedyouwillfindmyGovernment'snotificationofAdministrativeArrangementsforBrazil,
Colombia, Costa Rica, Fiji,Haiti, Hungary, India, Indonesia, Korea, Macau, Malaysia1,Philippines,
Qatar,Romania,SriLanka,Thailand,UAEandUruguaymadepursuanttoArticle2.17oftheAgreement
onTextiles andClothing.
Sincerely,
(signed) Ambassador RitaHayes
Chief Textile Negotiator
1This document contains theAdministrative Arrangements concluded with Malaysia. Administrative
Arrangements concluded withtheother Members listed above willbecirculated asseparate documents.
Note: Annex Breferred tointhetextcontains thelistofrestrictions notified bytheUnited States pursuant to
Article 2.1andassuch itisnotpartoftheAdministrative Arrangements.G/TMB/N/280
Page3
MALAYSIA
Thefollowing provisions aredrawn fromtheUnited States-Malaysia bilateral textile andapparel
agreement of12and28January 1994andtheMemorandum ofUnderstanding dated 3November 1994
andhavebeenagreed tobenecessary fortheproper implementation ofrestrictions notified totheTextiles
Monitoring Body under Article 2.1oftheAgreement onTextiles andClothing.
Coverage ofAgreement andClassification
2.(A) Textiles andtextile products covered bythisAgreement arethose summarized inAnnex A.
(B) Tops, yarns, piece goods, made-up articles, garments andother textile manufactured products,
allbeingproductswhichderivetheirchiefcharacteristicsfromtheirtextilecomponentsofcotton,
wool, man-made fibre, silkblends, andnon-cotton vegetable fibres, orblends thereof, inwhich
anyorallofthose fibres incombination represent thechiefweight oftheproduct, aresubject
tothisAgreement. Components ofanarticle which arenotconsidered relevant tothe
classification under theGeneral Rules ofInterpretation oftheLegal Notes toSection XIof
theHarmonized Commodity Code arelikewise tobedisregarded here. Forthepurposes of
thisAgreement, textile products covered byparagraph 2(A)above shallbeclassified as:
(I) Man-made fibretextiles iftheproduct isinchiefweight ofman-made fibres, unless:
(a) theproduct isknitted orcrocheted apparel inwhich wool equals orexceeds
23percentbyweight ofallfibres, inwhich casetheproduct willbeawool
textile; or
(b) theproductisapparel,notknittedorcrocheted,inwhichwoolequalsorexceeds
36percentbyweight ofallfibres, inwhich casetheproduct willbeawool
textile;
(c) theproduct isawoven fabric inwhich wool equals orexceeds 36percent
byweight ofallfibres, inwhich casetheproduct willbeawool textile;
(II) cotton textiles ifnotcovered by(I)andiftheproduct isinchiefweight ofcotton, unless
theproduct isawoven fabric inwhich wool equals orexceeds 36percentbyweight
ofallfibres, inwhich casetheproduct willbeawool textile;
(III) wooltextiles ifneither oftheforegoing applies, andtheproduct isinchiefweight of
wool.
(C) Apparel ofsilkornon-cotton vegetable fibre, ifnoneoftheforegoing applies andtheproduct
isinchief weight ofsilkornon-cotton vegetable fibre, unless:
(I) Cotton withwooland/or man-made fibres intheaggregate equal orexceed 50percent
byweight ofthecomponent fibres thereof andthecotton component equals orexceeds
theweight ofeachofthetotalwooland/or man-made fibrecomponents, inwhich case
theproduct willbeacotton textile;
(II) ifnotcovered by(IV)(a) andwool exceeds 17percentbyweight ofallcomponent
fibres, inwhich casetheproduct willbeconsidered awool textile;G/TMB/N/280
Page4
(III) Ifnotcovered by(IV)(a) or(b)andman-made fibres incombination withcotton and/or
woolintheaggregate equal orexceed 50percentbyweight ofthecomponent fibres
thereof andtheman-made fibrecomponent exceeds theweight ofthetotalwooland/or
totalcotton component, inwhich casetheproduct willbeconsidered aman-made fibre
textile.
Notwithstanding theabove, garments which contain 70percentormore byweight silk(unless
theyalsocontain over17percentbyweight wool), arenotsubject tothisAgreement. Silkand
non-cotton vegetable fibresweaters, asdetermined above, shallbedivided into"silk" sweaters and
"non-cotton vegetable fibre" sweaters. Forthepurpose ofthisdivision, sweaters shallbeclassified
as"silk" ifthesilkcomponent exceeds byweight thenon-cotton vegetable fibrecomponent (ifany).
Sweaters notclassified as"silk" sweaters inaccordance withtheforegoing shall beclassified as
"non-cotton vegetable fibre" sweaters. Garments containing 70percentormore byweight silkand
over17percentbyweight wool shallbeclassified aswool textiles, under sub-paragraph (B)(IV)(b).
(D) Coverage under thisparagraph isintended tobeidentical withtheterms ofArticle 12ofthe
Arrangement Regarding International Trade inTextiles andinconformance withparagraph 24
ofthe31July1986 Protocol ofExtension. Intheevent ofaquestion regarding whether a
product iscovered bythisAgreement byvirtue ofbeing inchief weight ofcotton, wool,
man-made fibre, silkblend, ornon-cotton vegetable fibre, thechief value ofthefibres may
beconsidered.
Merged Categories andConversion Factors
3.(A) Thesystem ofcategories andtheratesofconversion intosquare metres equivalent listed in
Annex Ashallapply inimplementing thisAgreement. Special conversion factors willapply
tothefollowing merged categories.
Category Conversion Factor toSME
638/639 12.96
333/334/335/835 34.5
(B) Forpurposes ofcomputing limits andcharges tolimits theratesofconversion forindividual
categories setoutinAnnex Ashallbeapplied, except asspecified in3(A).
(C) Forpurposes ofthisAgreement, thecategories listed below aremerged andtreated assingle
categories andsub-categories asindicated:
Categories Merged Designation inAgreement Sub-Categories
300,301 300/301 None
613,614,615,617 613/614/615/617 None
331,631 331/631 None
333,334,335,835 333/334/335/835 333,835
336,636 336/636 None
338,339 338/339 None
340,640 340/640 None
341,641 341/641 341
342,642,842 342/642/842 None
347,348 347/348 NoneG/TMB/N/280
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Categories Merged Designation inAgreement Sub-Categories
350,650 350/650 None
351,651 351/651 None
445,446 445/446 None
634,635 634/635 None
638,639 638/639 None
645,646 645/646 None
647,648 647/648 647-K, 648-K
Limits
4.(A) TheGovernment ofMalaysia shalllimitannual shipments ofexports which aretheproducts
ofMalaysia totheUnited States ofAmerica ofcotton, wool, andman-made fibretextiles and
textile products andapparel made ofsilkblends andvegetable fibres other thancotton tothe
group andspecific limits setoutinAnnex B,assuchgroup andspecific limits maybeadjusted
inaccordance withparagraph 5.
Flexibility Adjustments
5.(A)(I) Thegroup andspecific limits setoutinAnnex Bdonotinclude anyadjustments
permitted under paragraph 5.
(II) During anyagreement year, thespecific limits setoutinAnnex Bmaybeincreased
bynotmore than7percent(swing) provided thatacorresponding reduction insquare
metres equivalent ismade inoneormore other specific limits inthesame group or
from theGroup IIlimitduring thesame agreement year.
(III) Thegroup IIlimitmaybeincreased bynotmore than10percent(swing), provided
thatacorresponding reduction insquare metres equivalent ismade inoneormore
specific limits ingroup Iduring thesame agreement year.
(IV) TheGovernment ofMalaysia shallindicate totheGovernment oftheUnited States
thespecific limits orsub-limits itwould liketoincrease andwhich itwould like
decreased.
(V) Within theGroup IIlimit, asitmaybeadjusted pursuant toparagraph 5(A)(III) and
5(B)(I), anyspecific limitwithin Group IImaybeexceeded bynotmorethan7percent
swing, inaddition tocarryover and carry forward permitted pursuant to
paragraph 5(B)(II), provided thattheGroup IIlimitasadjusted isnotexceeded inany
oneagreement year.
(B)(I) Theextent towhich theGroup IIlimitsetforth inAnnex Bmaybeexceeded inany
agreement period bycarry forward and/or carryover is11percent, ofwhich
carry forward shallnotconstitute more than6percent.
(II) Theextent towhich anyspecific limitmaybeexceeded inanyagreement period by
carry forward and/or carryover is11percent, ofwhich carry forward shall not
constitute more than6percent.G/TMB/N/280
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(III) Nocarryover shall beavailable forapplication inthefirstagreement year. No
carry forward shallbeavailable forapplication inthefinalagreement year. Carryover
shallbeavailable inthe1992 agreement year.
(C) Forthepurposes oftheAgreement, ashortfall inaspecific limitorGroup IIlimitoccurs when
exports oftextiles ortextile products from Malaysia totheUnited States ofAmerica during
anyagreement yeararebelow anyspecific limitorGroup IIlimitassetoutinAnnex Bor,
inthecaseofanylimitdecreased pursuant toparagraph 5,when suchexports arebelow the
specific limitorGroup IIlimitasdecreased.
(D) TheGovernment ofMalaysia willnotify theGovernment oftheUnited States when itwishes
touseunused quantity (shortfall) available incategories forcarryover, orforusebyother
categories forswing; subject totheprovisions setoutabove. However, theGovernment of
theUnited States mayapply adjustments under thisparagraph toanyspecific limit orthe
Group IIlimitwhenever thatadjustment appears appropriate tofacilitate theflowoftradeand
thesound administration oftheAgreement. Totheextent thatsuchadjustments areactually
utilized, theywillbeimplemented bymeans ofcarryover andcarry forward, inthatorder.
Anyunused carry forward willbere-credited tothefollowing period 'slimit. Incaseofsuch
adjustments, theGovernment oftheUnited States would immediately notify theGovernment
ofMalaysia. Thisprocedure willnotprejudice theoutcome ofanyconsultations thatmaybe
heldbetweenourgovernmentsconcerningtheamountsofavailablecarryoverandcarryforward.
(E) Special flexibility:
(I) Categories 338/339, 638/639, and347/348 willhaveavailable 15percentspecial
carry forward inthe1992 and1993 periods;
(II) special shiftof15percentwillbeallowed between categories 347/348 and647/648;
(III) special shiftof10percentwillbeallowed between categories 333/334/335/835 and
634/635;
(IV) special swing of5percentwillbeallowed forcategories 338/339, 638/639 and
347/348, beginning in1993. Special swing iscalculated insquare metres equivalent;
(V) special swing of3percentwillbeallowed forcategories 336/636, 345,351/651 and
340/640, beginning in1993. Special swing iscalculated insquare metres equivalent;
(VI) special swing of10percentwillbeallowed forthefabric group;
(IX) special shiftof10percentwillbeallowed between categories 350/650 and351/651.
Overshipment Charges
7.(A) Products ofMalaysia inexcess ofauthorized limits inanyagreement yearmaybedenied entry
intotheUnited States. Anysuchshipments denied entry maybepermitted entry intothe
United States andcharged totheapplicable limitinthesucceeding agreement year.
(B) Products ofMalaysia inexcess ofauthorized limits inanyagreement yearwill,ifallowed entry
intotheUnited States during thatagreement year, becharged totheapplicable limitinthe
succeeding agreement year.G/TMB/N/280
Page7
(C) Anyaction taken pursuant tosub-paragraphs (A)and(B)above, willnotprejudice therights
ofeither sideregarding consultations.
Exports ofCertified Hand-Loomed Folklore Products
8. Inaccordance withArticle 12,paragraph 3oftheArrangement, andsubject tothevisa
certification system, Malaysian exports ofhand-loomed fabrics ofthecottage industry orhand-made
cottage industry products made ofsuchhand-loomed fabrics, ortraditional folklore handicraft textile
products, willnotbesubject totheprovisions oftheAgreement.
Spacing Provisions
9. TheGovernment ofMalaysia shalltothebestofitsabilities space exports from Malaysia to
theUnited States ofAmerica within eachcategory, sub-category orpart-category evenly throughout
eachagreement year, taking intoconsideration normal seasonal factors.
United States 'Assistance inImplementation oftheLimitation Provisions
10. TheGovernment ofMalaysia shalladminister itsexport control system under thisAgreement.
TheGovernmentoftheUnitedStatesofAmericamayassisttheGovernmentofMalaysiainimplementing
thelimitation provisions ofthisAgreement bycontrolling imports oftextiles andtextile products covered
bythisAgreement.
Exchange ofInformation
11. With regard tofraud andcircumvention, eachgovernment agrees tocooperate andtosupply
totheothergovernmentanyinformationwithinitspossessionwhichitreasonablybelievestobenecessary
fortheenforcement ofthisAgreement.
Exchange ofData
12.(A) TheGovernment oftheUnited States ofAmerica shallpromptly supply theGovernment of
Malaysia withdataonmonthly imports ofcotton, man-made fibre, andwooltextiles andtextile
products andapparel made ofsilkblends andvegetable fibres other thancotton intothe
United States ofAmerica from Malaysia.
(B) TheGovernment ofMalaysia shallpromptly supply theGovernment oftheUnited States of
America withdataonmonthly exports ofcotton, man-made fibre, andwooltextiles andtextile
products andapparel made ofsilkblends andvegetable fibres other thancotton fromMalaysia
totheUnited States ofAmerica.
(C) Each government agrees tosupply anyother available statistical datanecessary tothe
implementation ofthisAgreement requested bytheother government.
Mutually Satisfactory Administrative Arrangements
13. Mutually satisfactory administrative arrangements oradjustments maybemade toresolve minor
problems arising intheimplementation ofthisAgreement, including differences inpoints ofprocedure
oroperation.G/TMB/N/280
Page8
Consultations onImplementation Questions
14. TheGovernment oftheUnited States ofAmerica andtheGovernment ofMalaysia agree to
consult upontherequest oftheother, onanyquestion arising intheimplementation ofthisAgreement.
Correct Category/Quantity VisaSystem
18. Theprovisions oftheVisaAgreement aslisted inAnnex Cbetween theGovernment ofthe
United States ofAmerica andtheGovernment ofMalaysia willgovern thecertification ofexports from
Malaysia.
Cooperation inthePrevention ofCircumvention
19.(A) TheGovernment oftheUnited States andtheGovernment ofMalaysia agree totakemeasures
necessary toaddress, toinvestigate and,where appropriate, totakelegaland/or administrative
action toprevent circumvention ofthisAgreement including bytransshipment, rerouting, false
declaration concerning country oforigin andfalsification ofofficial documents.
(B) Bothparties agree tothespeedy implementation ofanelectronic visainformation system as
animportant means ofpreventing circumvention andtransshipment.
(C)(I) Bothpartiesagreetocooperatefully,consistentwiththeirdomesticlawsandprocedures,
ininstances ofcircumvention oralleged circumvention andtoestablish therelevant
facts intheplaces ofimport, export and,where applicable, transshipment. Such
cooperation, totheextent consistent withdomestic lawsandprocedures, willinclude
investigation ofcircumvention practices; exchange ofdocuments, correspondence,
reports andother relevant information totheextent available; andfacilitation ofplant
visits andcontacts byrepresentatives ofeither Party, uponrequest andonacase-by-case
basis;
(II) when either party wishes tovisitcertain plants, theparty seeking theplantvisitorvisits
shallgivewritten notice, including thereasons forsuchvisits totheauthorities ofthe
other party 10daysinadvance stating therein thenumber ofplants theyintend tovisit
andtheproposed dates ofthevisits. Theplants tobevisited willnotbenotified in
advance ofthevisit. When thevisitoccurs, permission from aresponsible person
attheplant shallbeobtained atthetimeofeachvisit. Ifthepermission isdenied,
thenthevisitwillnotgoforward. Suchvisits willbeconducted byauthorized personnel
ofboth governments inaccordance with domestic laws andprocedures. Upon
completion ofsuchplant visits, theparty making therequest forthevisitshallbrief
therespective government officials oftheother party ontheresults ofsuchplantvisits.
(D) Ifeither party believes thatthisAgreement isbeing circumvented, itmayrequest consultations
toaddress thematter ormatters concerned withaview toseeking amutually satisfactory
solution. Each party agrees toholdsuchconsultations promptly, beginning within 30days
ofreceipt ofawritten request byaparty andconcluding within 90days, unless extended by
mutual agreement, andtocooperate fullyinterms oftheelements setoutinparagraph (C)
above.
(E)(I) Shouldthepartiesbeunabletoreachasatisfactorysolutioninthecourseofconsultations
called forunder paragraph (D),thentheGovernments ofMalaysia andtheUnited States
agree thatincases where clearevidence regarding circumvention hasbeenprovided,G/TMB/N/280
Page9
theUnited States maydeduct from thequantitative limits forthatagreement period
amounts notmore thantheamount oftransshipped products ofMalaysian origin. In
addition, theGovernments ofMalaysia andtheUnited States agree thatdeductions
from thequantitative limits established under thisAgreement maybemade inthose
instances inwhich:
(a) clearevidence regarding circumvention hasbeenprovided bytheGovernment
oftheUnited states totheGovernment ofMalaysia; or
(b) theGovernment oftheUnited States hasprovided factual information tothe
Government ofMalaysia demonstrating asubstantial likelihood that
circumvention hasoccurred andhasrequested fromMalaysia cooperation or
information relevant tothepossible circumvention thatisofatypethatis
available toorcould reasonably beobtained bytheGovernment ofMalaysia,
andtheGovernment ofMalaysia, without adequate reason, hasnotprovided
suchinformation orcooperation.
Anysuchaction shallbenotified totheTSBorsuccessor entity withfulljustification;
(II) if,afterthecharges havebeenmade, evidence isdeveloped thatclearly establishes
thatthecharges were inerror because thegoods inquestion were infactnotof
Malaysian origin, andthereisclearevidence demonstrating thetruecountry oforigin,
thentheUnited States shallrestore Malaysia 'squantitative restraints equivalent tothe
amount deducted under thisprovision immediately after theUnited States holds
consultations withthetruecountry oforigin andcharges thegoods tothatcountry.
Ifinareasonable period oftimeaftertheUnited States receives theevidence above, noaction
hasbeentaken orconsultations sought regarding suchcharges, theGovernment ofMalaysia
mayrequest consultations withtheGovernment oftheUnited States withaviewtoseeking
asatisfactory solution. Consistent withdomestic lawsandprocedures, theGovernment of
theUnited States agrees toholdsuchconsultations promptly, beginning within 30days.
(F) Bothparties recognize thatthepreferred resolution ofcases ofcircumvention isforbothparties
totakestrong action against theparticular companies, individuals orpractices involved inthe
circumvention. Should theUnited States choose toexercise theprovisions under paragraph (E)
todeductanamountoramountsfromthequantitativelimitsofMalaysiawhererepeatedinstances
ofcircumventionhavebeendemonstratedwithinthecurrentorimmediatelyprecedingagreement
yearandnoorinadequate measures arebeing applied byMalaysia toaddress theproblem of
repeated circumvention, thentheUnited States maydeduct fromthequantitative limits amounts
uptothreetimes theamounts transshipped, provided thatsuchdeductions aredistributed equally
ineachofthethreefollowing years. Anysuchaction shallbenotified totheTSBorsuccessor
entity withfulljustification.
(G) Where there isclear evidence showing thatgoods originating inanother country havebeen
transshipped through Malaysia totheUnited States asthough theywereproducts ofMalaysia,
theGovernments ofMalaysia andtheUnited States agree totakeappropriate action. Anysuch
actions, together withtheirtiming andscope, maybetaken onlyafterconsultations heldwith
aviewtoarriving atamutually satisfactory solution andshallbenotified totheTSBorsuccessor
entity withfulljustification. Such consultations should beheldpromptly, beginning within
30daysofareceipt ofawritten request byaparty, andconcluding within 90days, unless
extended bymutual agreement. Should theparties beunable toreach amutually satisfactoryG/TMB/N/280
Page10
solution, thentheGovernments ofMalaysia andtheUnited States agree thatincases where
clear evidence regarding circumvention hasbeenprovided, theUnited States mayintroduce
arestraintor,wherearestraintalreadyexists,maydeductfromthequantitativelimitsestablished
under thisAgreement anamount notmore thantheamount ofproducts transshipped through
Malaysia. AssoonasMalaysia hassufficiently established thatthegoods inquestion have
notbeentransshipped through Malaysia, then:
(i) theUnited States shall immediately remove anyrestraint imposed pursuant tothis
provision, or
(ii) theUnited States shallimmediately restore Malaysia 'squantitative restraints inamounts
equivalent totheamount deducted pursuant tothisprovision aftertheUnited States
hasheldconsultations withthetruecountry oforigin andcharged thegoods tothat
country.
Ifinareasonable period oftimeaftertheUnited States receives theevidence above, noaction
hasbeentaken orconsultations sought regarding suchcharges, theGovernment ofMalaysia
mayrequest consultations withtheGovernment oftheUnited States withaviewtoseeking
asatisfactory solution. Consistent withdomestic lawsandprocedures, theGovernment of
theUnited States agrees toholdsuchconsultations promptly, beginning within 30days.
(H) Parties agree thatfalse declaration concerning fibre content, quantities, description or
classifications ofmerchandise alsofrustrates theobjective ofthisAgreement. Where there
isclear evidence thatanysuch false declaration hasbeen made forthepurposes of
circumvention, bothparties agree totakeappropriate measures, consistent withtheirdomestic
lawsandprocedures, against exporters orimporters involved. Should either party believe that
thisAgreement isbeing circumvented bysuchfalsedeclaration andthatno,orinadequate,
administrative measures arebeing applied toaddress and/or totakeaction against such
circumvention, thatpartyshould consult promptly withthepartyinvolved withaviewtoseeking
amutually satisfactory solution. Suchconsultations should beheldpromptly, beginning within
30daysofreceipt ofawritten request, andconcluding within 90days, unless extended by
mutual agreement. Should theparties beunable toreach amutually satisfactory solution, the
Governments ofMalaysia andtheUnited States agree thatincases where clear evidence
regarding suchfalsedeclarations hasbeenprovided, theUnited States maydeduct from the
quantitativelimitsestablishedforthecurrentagreementyearanamountnotmorethantheamount
ofproduct subject tothefalsedeclaration orclassification. Anysuchaction shallbenotified
totheTSBorsuccessor entity withfulljustification. Thisprovision isnotintended toprevent
parties frommaking technical adjustments when inadvertent errors indeclarations havebeen
made.
(I) Parties notethatsome cases ofcircumvention mayinvolve shipments transiting Malaysia with
nochanges oralterations made tothegoods contained insuchshipments inMalaysia. They
notethatitmaynotbegenerally practicable fortheGovernment ofMalaysia toexercise control
oversuchshipments.G/TMB/N/280
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(J) Nodeductions toMalaysia 'squantitative limits willapply toeachparticular instance of
circumvention iftheGovernment ofMalaysia hasprovided theGovernment oftheUnited States
withclear evidence orintelligence ofcircumvention sufficient toallow theUnited States to
denyentry totheparticular circumventing goods priortotheirentry intothecustoms territory
oftheUnited States. Insuchinstances, theparties agree thatthepreferred course would be
fortheGovernment ofMalaysia toinform theGovernment oftheUnited States thatanyvisa
issued onsuchshipment isinvalid.G/TMB/N/280
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ANNEX A
United States 'Textile andApparel Category System Under theHarmonized System
Categories Numbered inthe:
- 200series areofcotton and/or man-made fibre;
- 300series areofcotton;
- 400series areofwool;
- 600series areofman-made fibre;
- 800series areofsilkblends orother non-cotton vegetable fibres.
Category Description Unit Conversion
Factor to
Square Metre
Equivalent
YARN
200 Yarns putupforretail sale,andsewing thread kg. 6.6
201 Specialty Yarns kg. 6.5
300 Carded Yarns, Cotton kg. 8.5
301 Combed Yarns, Cotton kg. 8.5
400 Wool Yarn kg. 3.7
600 Textured Filament Yarns kg. 6.5
603 Yarn containing 85%ormore byweight artificial
staple fibre kg. 6.3
604 Yarn containing 85%ormore byweight synthetic
staple fibre kg. 7.6
606 Non-textured filament kg. 20.1
607 Other staple fibreyarn kg. 6.5
FABRIC
218 OfYarns ofdifferent colours m21.0
219 Duck m21.0
220 Fabric ofSpecial Weave m21.0
222 KnitFabric kg. 12.3
223 Non-Woven Fabrics kg. 14.0
224 Pile&Tufted Fabrics m21.0
225 BlueDenim m21.0
226 Cheesecloth, Batistes, Lawns, orVoiles m21.0
227 Oxford Cloth m21.0
229 Special Purpose Fabric kg. 13.6
313 Sheeting m21.0
314 Poplin &Broadcloth m21.0
315 Printcloth m21.0
317 Twills m21.0G/TMB/N/280
Page13
Category Description Unit Conversion
Factor to
Square Metre
Equivalent
326 Sateens m21.0
410 Woven Fabrics containing 36%ormore byweight
wool m21.0
414 Other Wool Fabrics kg. 2.8
611 Woven Man-Made Fibre Fabric containing 85%or
more byweight artificial staple fibres m21.0
613 Sheeting m21.0
614 Poplin &Broadcloth m21.0
615 Printcloth m21.0
617 Twills &Sateens m21.0
618 Woven Artificial Filament Fabric m21.0
619 Polyester Filament Fabric, lessthan170gr.perm2m21.0
620 Other Synthetic Filament Fabric m21.0
621 Impression Fabric kg. 14.4
622 Glass Fibre Fabric m21.0
624 Woven Man-made Fibre Fabric, containing more
than15percentbutlessthan36percentwoolm21.0
Staple/Filament Combination:
625 Poplin &Broadcloth m21.0
626 Printcloth m21.0
627 Sheeting m21.0
628 Twills &Sateens m21.0
629 Other MMF m21.0
APPAREL:
237 Playsuits, Sunsuits, etc. doz. 19.2
239 Infants 'Apparel kg. 6.3
330 Handkerchiefs doz. 1.4
331 Gloves &Mittens dpr 2.9
332 Hosiery dpr 3.8
333 M&BSuit-Type Coats doz. 30.3
334 Other M&BCoats doz. 34.5
335 W&GCoats doz. 34.5
336 Dresses doz. 37.9
338 M&BKnitShirts doz. 6.0
339 W&GKnitShirts &Blouses doz. 6.0
340 M&BShirts, NotKnit doz. 20.1
341 W&GShirts &Blouses, NotKnit doz. 12.1
342 Skirts doz. 14.9
345 Sweaters doz. 30.8G/TMB/N/280
Page14
Category Description Unit Conversion
Factor to
Square Metre
Equivalent
347 M&BTrousers, Slacks, &Shorts doz. 14.9
348 W&GTrousers, Slacks, &Shorts doz. 14.9
349 Brassieres &Body Supporting Garments doz. 4.0
350 Dressing Gowns, etc. doz. 42.6
351 Nightwear &Pyjamas doz. 43.5
352 Underwear doz. 9.2
353 M&BDown-Filled Coats doz. 34.5
354 W&GDown-Filled Coats doz. 34.5
359 Other Cotton Apparel kg. 8.5
431 Gloves &Mittens dpr 1.8
432 Hosiery dpr 2.3
433 M&BSuit-Type Coats doz. 30.1
434 Other M&BCoats doz. 45.1
435 W&GCoats doz. 45.1
436 Dresses doz. 41.1
438 KnitShirts &Blouses doz. 12.5
439 Infants 'Wear kg. 6.3
440 Shirts &Blouses, NotKnit doz. 20.1
442 Skirts doz. 15.0
443 M&BSuits No. 3.76
444 W&GSuits No. 3.76
445 M&BSweaters doz. 12.4
446 W&GSweaters doz. 12.4
447 M&BTrousers, Slacks &Shorts doz. 15.0
448 W&GTrousers, Slacks &Shorts doz. 15.0
459 Other Wool Apparel kg. 3.7
630 Handkerchiefs doz. 1.4
631 Gloves &Mittens dpr 2.9
632 Hosiery dpr 3.8
633 M&BSuit-type Coats doz. 30.3
634 Other M&BCoats doz. 34.5
635 W&GCoats doz. 34.5
636 Dresses doz. 37.9
638 M&BKnitShirts doz. 15.0
639 W&GKnitShirts &Blouses doz. 12.5
640 M&BShirts, NotKnit doz. 20.1
641 W&GShirts &Blouses, NotKnit doz. 12.1
642 Skirts doz. 14.9
643 M&BSuits No. 3.76G/TMB/N/280
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Category Description Unit Conversion
Factor to
Square Metre
Equivalent
644 W&GSuits No. 3.76
645 M&BSweaters doz. 30.8
646 W&GSweaters doz. 30.8
647 M&BTrousers, Slacks &Shorts doz. 14.9
648 W&GTrousers, Slacks &Shorts doz. 14.9
649 Brassieres &Body Supporting Garments doz. 4.0
650 Dressing Gowns, etc. doz. 42.6
651 Nightwear &Pyjamas doz. 43.5
652 Underwear doz. 13.4
653 M&BDown-Filled Coats doz. 34.5
654 W&GDown-Filled Coats doz. 34.5
659 Other Man-Made Fibre Apparel kg. 14.4
831 Gloves &Mittens dpr 2.9
832 Hosiery dpr 3.8
833 M&BSuit-Type Coats doz. 30.3
834 Other M&BCoats &Jackets doz. 34.5
835 W&GCoats &Jackets doz. 34.5
836 Dresses doz. 37.9
838 KnitShirts, Blouses &Tops doz. 11.7
839 Infants 'Wear kg. 6.3
840 NotKnitShirts &Blouses doz. 16.7
842 Skirts doz. 14.9
843 M&BSuits No. 3.76
844 W&GSuits No. 3.76
845 Sweaters ofVegetable Fibre doz. 30.8
846 Sweaters ofSilkBlend doz. 30.8
847 Trousers, Slacks, &Shorts doz. 14.9
850 Robes &Dressing Gowns doz. 42.6
851 Nightwear &Pyjamas doz. 43.5
852 Underwear doz. 11.3
858 Neckwear kg. 6.6
859 Other Apparel kg. 12.5
MADE-UP &MISCELLANEOUS TEXTILES
360 Pillowcases No. 0.9
361 Sheets No. 5.2
362 Bedspread &Quilts No. 5.8
363 Terry &Other PileTowels No. 0.4
369 Cotton Manufactures, NotSpecified (NSPF) kg. 8.5
464 Blankets kg. 2.4G/TMB/N/280
Page16
Category Description Unit Conversion
Factor to
Square Metre
Equivalent
465 Floor Coverings m21.0
469 Wool Manufactures, NSPF kg. 3.7
665 Floor Coverings m21.0
666 Other Furnishings kg. 14.4
669 Man-Made Fibre Manufactures, NSPF kg. 14.4
670 FlatGoods, Handbags, Luggage kg. 3.7G/TMB/N/280
Page17
ANNEX C
VisaandExempt Certification Arrangement
Between theGovernment ofMalaysia
andtheGovernment oftheUnited States ofAmerica
Concerning Textiles andTextile Products
1. Definition:
A. Forthepurpose ofthisArrangement, theterm"textiles" means textiles andtextile products
ofcotton, wool andman-made fibres, other vegetable fibres, blends ofanyoftheforegoing
fibres andblends containing silk,butdoesnotinclude garments which contain 70percent
ormore silkbyweight, orproducts other thangarments which contain 85percentormore
silkbyweight;
B. theterm"category" includes partcategories andmerged categories asestablished intheBilateral
Agreement.
2. VisaRequirements:
A. Eachshipment oftextiles ortextile products produced ormanufactured inMalaysia andexported
totheUnited States which aresubject totheterms oftheMFA, andasdefined inparagraph 1,
above, regardless ofvalue, ofcotton, wool, man-made fibre, vegetable fibres otherthancotton,
andsilkblend textiles andtextile products incategories 200-239, 300-369, 400-469, 600-670
and831-859, including partcategories andmerged categories, andthose categories which are
noteligible fortheexemptions noted intheexempt certification requirements insection 3below
andthose shipments notexcluded bysection 5below, shallbevisaed bytheGovernment of
Malaysia. Thisvisashallbepresented totheUnited States 'Customs Service before entry,
orwithdrawal fromwarehouse forconsumption, intothecustoms territory oftheUnited States,
(the50States, theDistrict ofColumbia andPuerto Rico);
B. shipments covering merchandise incategories 800-810 and863-899 donotrequire avisa.
However, should additional categories, merged categories orpartcategories beadded tothe
bilateral agreement theentire category orcategories shallbeautomatically included inthe
coverage ofthevisaarrangement. Merchandise exported onorafterthedatethecategory(s)
isadded totheAgreement shallrequire avisa;
C. ashipment shallbevisaed bythestamping oftheoriginal circular visainblueinkonthefront
oftheoriginal commercial invoice. Theoriginal visashallnotbestamped onduplicate copies
oftheinvoice. Theoriginal oftheinvoice withtheoriginal visastamp willberequired to
enter theshipment intotheUnited States. Duplicates oftheinvoice and/or visamaynotbe
usedforthispurpose;
D. eachvisastamp willinclude thefollowing information:
(i) thevisanumber:G/TMB/N/280
Page18
Thevisanumber shallbeinthestandard ninedigitletter format beginning withone
numeric digitforthelastdigitoftheyearofexport, followed bythetwocharacter
alpha country code specified bythe International Organization for
Standardization-(ISO)-(the codeforMalaysia is"MY"), andasixdigitnumeric serial
number identifying theshipment; e.g.,7MY123456);
(ii) thedateofissuance:
Thedateofissuance shallbetheday,month andyearonwhich thevisawasissued;
(iii) thesignature oftheissuing official:
Thesignature shallbethatoftheissuing official oftheMalaysian Government;
(iv) category andquantity information:
thecorrect category(s), merged category(s), partcategory(s), quantity(s), andunit(s)
ofquantity intheshipment intheunit(s) ofquantity provided forintheUnited States '
Department ofCommerce correlation andintheUnited States 'Tariff Schedules of
theUnited States Annotated (HTSUSA) shallbereported inthespaces provided within
thevisastamp. e.g.,"Cat.340-510DZ". Quantities mustbestated inwhole numbers.
Decimals orfractions willnotbeaccepted. Merged category quota merchandise may
beaccompanied byeither theappropriate merged category visaorthecorrect category
visacorresponding totheactual shipment (forexample, quota category 347/348 may
bevisaed as"Cat.347/348" oriftheshipment consists solely ofcategory 347
merchandise, theshipment maybevisaed as"Cat.347", butnotas"Cat.348").
E. Ifthequantity indicated onthevisaislessthanthatoftheshipment, entryshallnotbepermitted.
F. Ifthequantity indicated onthevisaismore thanthatoftheshipment, entry shallbepermitted.
G. Thevisawillnotbeaccepted andentry willnotbepermitted iftheshipment doesnothave
avisa,orifthevisanumber, dateofissuance, signature, category, quantity orunitsofquantity
aremissing, incorrect, illegible orhavebeencrossed outoraltered inanyway.
H. Thecategories andquantities shallbethose determined bytheUnited States 'Customs Service.
I. Ifthevisaisnotacceptable thenanewvisamustbeobtained fromtheMalaysian Government
oravisawaiver issued bytheUnited States 'Department ofCommerce attherequest ofthe
Malaysian Government andpresented totheUnited States 'Customs Service before anyportion
oftheshipment willbereleased. Thewaiver, ifused, onlywaives therequirement topresent
avisawiththeshipment. Itdoesnotwaive thequota requirement.
J. Ifthevisaed invoice isdeficient, theUnited States 'Customs Service willnotreturn theoriginal
document afterentry, butwillprovide acertified copyofthatvisaed invoice foruseinobtaining
anewcorrect original visaed invoice, oravisawaiver.G/TMB/N/280
Page19
K. Ifimport quotas areinforce, onlytheactual quantity intheshipment andthecorrect category
willbecharged totherestraint level.
L. Ifashipment from Malaysia hasbeenallowed entry intothecommerce oftheUnited States
witheither anincorrect visaornovisaandredelivery isrequested butcannot bemade, the
shipment willbecharged tothecorrect category limitwhether ornotareplacement visaor
visawaiver isprovided.
M. TheGovernment oftheUnited States ofAmerica willmake available totheGovernment of
Malaysia uponrequest, information ontheamounts andcategories involved forallitems subject
toquota administered bytheUnited States 'Customs Service including items covered in2(L)
above.
3. Exempt Certification Requirements:
A. Shipments ofcertified handprinted batik, defined asfabric towhich thedesign hasbeenapplied
byhand inunits oftheMalaysian cottage industry, shallbeexempt from thelevels ofthe
bilateral agreement iftheyarecertified priortoleaving Malaysia, bytheplacing oftheoriginal
rectangular-shaped stamped marking inblueinkonthefrontoftheoriginal commercial invoice.
Theoriginal exempt certification shallnotbeaffixed toduplicate copies oftheinvoice. The
original copy oftheinvoice withtheoriginal exempt certification willberequired toenter
theshipment intotheUnited States. Duplicate copies oftheinvoice and/or exempt certification
maynotbeused;
B. requirements forexempt certification stamp:
Each exempt certification stamp willinclude thefollowing information:
(i) dateofissuance;
(ii) signature ofissuing official;
(iii) thebasis fortheexemption, which shallbenoted as:
A. handprinted batik;
B. thename oftheparticular traditional folklore handicraft product (Malaysian
item) ascitedinalisttobeagreed upon bytheGovernment ofMalaysia and
theGovernment oftheUnited States;
C. should ashipment beexported from Malaysia with anincorrect exempt
certification (i.e.thedateofissuance, signature orbasis forexemption is
missing, incorrect orillegible orhasbeencrossed outoraltered inanyway),
thentheexempt certification willnotbeaccepted andentry shall notbe
permitted untilareplacement certification isissued;
D. should ashipment beexported fromMalaysia without anexempt certification
being issued prior tothedateofexportation orifthemerchandise doesnotG/TMB/N/280
Page20
qualify fortheexemption, thenanexempt certification willnotbeaccepted
andentry shallnotbepermitted. Insuchacase, avisaoravisawaiver must
beobtained prior torelease ofanyportion oftheshipment. Ifquotas arein
force, theshipment willbecharged totheappropriate quota level.
4. TheGovernmentofMalaysiashallprovidetheGovernmentoftheUnitedStateseverysixmonths
withalistofallshipments certified exempt bytheGovernment ofMalaysia during theprevious six
months. Thelistshallcontain thefollowing information foreachshipment: description ofitems, units,
andquantities.
5. Shipments notrequiring visas:
Merchandise imported forthepersonal useoftheimporter andnotforresale, regardless of
value, andproperly marked commercial sample shipments valued atUS$250orlessdonotrequire
avisaforentry andshallnotbecharged toagreement levels.
6. Other Provisions:
A. TheGovernment oftheUnited States shallpublish anotice intheFederal Register regarding
thevisaandcertificationsystemsherebyestablished.TheGovernmentofMalaysiashallprovide
theGovernment oftheUnited States withtwoidentical original facsimiles ofthevisaandexempt
certification stamp markings andthesignature ofeachofficial authorized toissueandsignthem.
Amaximum of10officials willbedesignated bytheGovernment ofMalaysia. Anychange
tothestamped markings must beapproved bytheGovernment oftheUnited States prior to
itsuse,tobeeffective sixty daysafterapproval. TheGovernment ofMalaysia shallnotify
theGovernment oftheUnited States ofanychanges ofauthorized officials.
B. Listofpart-categories andmerged categories currently included inthearrangement:
Part-Categories:
347-w
348-w
369-S
369-0
438-W
438-0
647-K
648-K
Merged Categories:
300/301
613/614/615/617
331/631
333/334/335/835
336/636
338/339G/TMB/N/280
Page21
340/640
341/641
342/642/842
347/348
347-w/348-w
350/650
351/651
445/446
634/635
638/639
645/646
647/648
C. Except asprovided inparagraph 5ofthisArrangement andasstated inparagraphs 2Dand
2FofthisArrangement, anyshipment which isnotaccompanied byavalid andcorrect visa
orexempt certification inaccordance withtheforegoing provisions shallbedenied entry by
theGovernment oftheUnited States unless theGovernment ofMalaysia authorizes theentry
andanycharges totheagreement levels.
D. Aninvoice maycover visaed merchandise orexempt certification merchandise butnotboth.
E. ThisArrangement shallbeeffective formerchandise exported onorafter1September 1987.
F. Either Government mayterminate, inwhole orinpart,theabove arrangement bygiving 90days
written notice totheother.