WORLD TRADE
ORGANIZATIONG/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5G/TMB/N/370/Corr.6
25 June 2001
(01-3149)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Articles 2.6 and 2.7(a)
Notification under Articles 2.8(a) and 2.11
Notification under Articles 2.8(b) and 2.11
CANADA
Corrigendum
The Textiles Monitoring Body has received a further notification from Canada containing
corrections to the notifications made pursuant to Articles 2.6, 2.7(a), 2.8(a), 2.8(b) and 2.11.
The TMB, in accordance with Articles 2.7(a) and 2.11, is circulating this notification to
WTO Members.G/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
G/TMB/N/370/Corr.6
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Department of Foreign Affairs
and International Trade
Canada
28 May 2001
Mr. András Szepesi
Chairman
Textiles Monitoring Body
World Trade OrganizationCentre William Rappard
Rue de Lausanne 154
CH-1211 Genève 21
Dear Mr. Szepesi:
I am writing in response to the question raised by the Textiles Monitoring Body regarding a
discrepancy between the size of the Canadian universe currently being used for purposes of
integration under the Agreement on Textiles and Clothing (ATC) and that in the data received by the
WTO in 1992 on import volumes into Canada, the EU, the US and Norway (i.e., the negotiators’
working document).
The discrepancy between the negotiators’ working document and the subsequent notification
by Canada of its first phase of integration has been traced to the addition in Canada’s universe ofcertain HS Heading 3921 products between 1990 and 1994. Specifically, the discrepancy pertains to
the inclusion in Canada’s universe of 19 tariff lines, from 3921.90.20.00 to 3921.90.90.99.  A review
of the historical records of the departments and agencies involved in the original compilation of
Canada’s ATC universe did not yield any information as to the rationale for this change.
Accordingly, a detailed analysis of import record s, in collaboration with the Canada Customs and
Revenue Agency (CCRA), was undertaken to ascertain what proportion of the imports under these
tariff lines contained textile products.
Following an extensive review of the data available, including analysis of laboratory results
of classification rulings conducted since the implementation of the HS tariff in 1988, Canadianauthorities have concluded that it is not possible to adequately substantiate the textiles component of
the volumes reported in its current ATC universe in  the following 10-digit tariff lines integrated as
part of Canada’s second stage of integration: 3921.90.20.00 to 3921.90.90.91, inclusive. Canada is
therefore withdrawing from its universe and its second stage of integration all of the volume of
imports under these 10-digit tariff lines. The volume of imports under these 10-digit tariff lines totals222,501,583 square-metre equivalents (or SMEs).
With respect to HS tariff line 3921.90.90.99, it would appear from the available information
that the vast majority of imports entered under this line does in fact consist of products under theG/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
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ATC Annex. However, the CCRA indicated that based on its review, it was not able to confirm with
absolute assurance that all of the 1990 volume report ed for this tariff line related solely to products
falling under the ATC Annex. To address this, a detailed review was conducted of all theclassification rulings by the Canadian Cust oms Laboratory of the CCRA between 1988 and 1991,
when the Canadian tariff was restructured and this particular 10-digit tariff line was merged into a
broader grouping that included other, non-ATC, products.  Of the rulings conducted during this four-
year period, 91 per cent confirmed the textile content of imports under this 10 digit tariff line.  Canada
is therefore reducing by 10 per cent the volume reported as textile imports under the 10-digit tariff
line 3921.90.90.99. The amended volume for this 10-digit tariff line is 100,494,500 SMEs, a reduction
of 11,666,056 SMEs.
The above adjustments reduce the Canadian ATC universe to 3,123,854,191 SMEs, and
reduce Canada’s second stage of integration to 404,960,371 SMEs, which is below the 17 per cent
threshold required under the ATC. The above adjustments do not affect the volumes of imports
integrated in the first and third stages, although the reduction in Canada’s universe has theconsequential effect of raising the integration percentages.
As indicated in Canada’s original notifications of each of its three stages of integration, it was
Canada’s intention to integrate 16.35 per cent in the first stage, 18.70 per cent in the second stage and
18.03 per cent in the third stage. In order to address the errors identified above, Canada is making thefollowing adjustments to the lists of products integrat ed in the first three stages so as to respect the
original levels of integration for the first two phases, and to maintain the third phase at 18.16 per cent,
which was the revised, higher figure following a number of adjustments to Canada’s third stage
integration outlined in my letter of 9 March 2001.
(a) the total volume of 48,574,726 SMEs accounted for by the tariff lines listed in
Annex 1 is being transferred from the first stage of integration to the second stage,
thereby maintaining Canada’s commitment for the first stage with an integration level
of 16.36 per cent;
(b) the total volume of 130,631,282 SMEs accounted for by the tariff lines indicated in
Annex 2, which is composed exclusively of products which had never been subject torestraints by Canada, is being transferred from the third stage to the second stage,
thereby restoring Canada’s second stage of integration to 18.70 per cent; and
(c) the total volume of 88,238,982 SMEs accounted for by the tariff lines indicated in
Annex 3, which is composed of products which were not previously integrated byCanada nor notified for integration in the third stage, are being added to the third
stage of integration, thereby maintaining Canada’s third stage at 18.16 per cent.
Canadian authorities would note that the transfer of 48,574,726 SMEs from the first stage to
the second stage is not strictly required to reach the minimum threshold of 17 per cent stipulatedunder the ATC for the second stage.  Canada has chosen to transfer this volume because of its
approach of maintaining the levels of integrati on that Canada had notified during each of the three
stages, as opposed to simply reaching the required minimum threshold in each stage.
In addition to indicating the new products being added to Canada’s third stage of integration,
Annex 3 identifies those products currently under restraint, as well as the relevant restraint categories
and the affected WTO Member. These products will be removed from the restraint levels under the
identified categories as of 1 January 2002.   As in earlier cases, Canada will not be reducing the
restraint levels for these categories to compensate  for the removal of these products from the coverageG/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
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of these restraint categories. Canadian authorities wish to point out that the volume of unrestrained
imports not yet integrated in any of Canada’s first three stages of integration exceeds significantly the
total volume of 73,229,038 SMEs of restrained products listed in Annex 3. Canada has chosen toinclude these retrained items as part of its overall approach to the integration process under the ATC.
I trust the foregoing addresses the questions raised by the TMB.
Sincerely,
(Signed)
Ian Burney
Director
Trade Controls Policy DivisionG/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
G/TMB/N/370/Corr.6
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ANNEX 1
ITEMS TRANSFERRED FROM THE 1ST TO THE 2ND PHASE
HS TARIFF LINE DESCRIPTION SMEs
5504.10.00.00 Viscose fibres, artificial staple, not carded or combed 2,241,076
5503.10.00.20 Aramid fibres, synthetic staple, not carded or combed 3,299,614
5503.30.00.00 Acrylic/modacrylic fibres, synthe tic staple, not carded or combed 43,034,036
TOTAL 48,574,726G/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
G/TMB/N/370/Corr.6
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ANNEX 2
ITEMS TRANSFERRED FROM 3RD TO 2ND PHASE
HS TARIFF LINE DESCRIPTION SMEs
5113.00.00.00 Woollen fabrics (all) horsehair or coarse animal hair 93,462
5204.11.00.00 Cotton (>84%) sewing threads 648,384
5204.19.00.00 Cotton (<85%) sewing threads 87,126
5204.20.00.00 Cotton, sewing threads, retail 206,566
5401.10.00.10 M-M synthetic filaments, sewing threads, nylon/polyamides 1,475,416
5401.10.00.20 M-M synthetic filaments, sewing threads, polyester 4,419,967
5401.10.00.90 M-M synthetic filaments, sewing threads, nes 2,337,733
5401.20.00.00 M-M artificial filaments, sewing threads 74,494
5407.20.00.00 M-M fabrics, made from synthetic strip yarns 8,097,360
5407.30.00.00 M-M fabrics, made from synthetic bonded yarns 122,916
5408.31.00.19 M-M mixed fabrics, monofilament yarn or strip/cotton, unbl. 187,554
5408.31.00.29 M-M mixed fabrics, monofilament yarn or strip/cotton, blea. 669,576
5408.32.00.90 M-M mixed fabrics, monofilament yarn or strip/cotton, col. 1,779,642
5408.34.00.90 M-M mixed fabrics, monofilament yarn or strip/cotton, printed 756,996
5508.10.00.10 M-M (>84%) synthetic staple fibres, sewing threads 1,707,499
5508.10.00.20 M-M (<85%) synthetic staple fibres, sewing threads 305,441
5508.20.00.00 M-M artificial staple fibres, sewing threads 22,413
5601.10.10.00 Sanitary towels & tampons (part of wadding) 1,686,674
5601.10.90.00 Napkins/liners for babies (part of wadding) 1,152,254
5601.21.10.00 Wadding, cotton 4,323,612
5601.21.20.00 Wadding, articles, cotton 0
5601.22.10.10 Wadding, polyester 1,804,112
5601.22.10.20 Wadding, M-M synthetic fibres nes 1,231,656
5601.22.10.30 Wadding, M-M artificial fibres 1,820,444
5601.22.20.00 Wadding, articles, M-M fibres 0
5601.29.10.00 Wadding, textile fibres nes 1,342,019
5601.29.20.00 Wadding, articles, textile fibres nes 768,874
5607.10.10.00 Twine/cord/rope/cable (circ. <25.4mm) jute/textile bast fibres 414,661
5607.29.10.00 Twine/cord/rope/cable (circ. <25.4mm) sisal/textile fibres of agave 3,330,496
5607.30.10.00 Twine/cord/rope/cable (circ. <25.4mm) abaca/hard leaf fibres 646,971
5607.30.20.00 Twine/cord/rope/cable (circ. >25.4mm) abaca/hard leaf fibres 872,683
5607.49.10.10 Twine/cord/rope/cable (circ. <25.4mm) polyethylene 1,926,223
5607.49.10.20 Twine/cord/rope/cable (circ. <25.4mm) polypropylene 3,210,688
5607.49.20.21 Twine/cord/rope/cable (circ. 25.5-43mm) polypropylene 2,392,156
5607.50.10.10 Twine/cord/rope/cable (circ. <25.4mm) nylon 3,130,991
5607.50.10.20 Twine/cord/rope/cable (circ. <25.4mm) polyester 2,578,452
5801.22.10.10 Cotton, cut weft pile fabrics, corduroy, unbl. 239,082
5801.22.10.90 Cotton, cut weft pile fabrics, corduroy, blea./blea./col. 4,884,341
5801.22.90.00 Cotton/textile fibre, cut weft pile fabrics, corduroy, 637,122
5801.31.00.00 Man-made, uncut weft pile fabrics, corduroy, unbl./blea./col. 36,610
5801.32.00.00 Man-made, cut weft pile fabrics, corduroy 13,743
5801.33.00.00 Man-made, other weft pile fabrics 25,271
5801.34.00.00 Man-made, uncut warp pile fabrics 15,246G/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
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HS TARIFF LINE DESCRIPTION SMEs
5801.35.00.11 Nylon, cut warp pile fabrics 80,647
5801.35.00.19 Man-made synthetic fibre, cut warp pile fabrics 5,544,178
5801.35.00.20 Man-made artificial fibre, cut warp pile fabrics 516,568
5801.36.00.00 Man-made chenille fabrics 11,002
5801.90.10.00 Silk (>50%) (excl. wool & hair) woven pile fabrics 1,216
5801.90.90.00 Textile fibres nes, woven pile fabrics 135,621
5803.90.19.00 Gauze fabrics, wool (>135g/m2) grey 2,136
5811.00.00.00 Quilted textile products (in the piece) 872,202
6001.22.00.19 Knitted broad fabrics, looped pile, man-made fibre nes 7,445,028
6002.10.10.00 Narrow knitted fabrics, elastic, lace solely vegetable fibre 1,111,254
6002.10.20.00 Narrow knitted fabrics, elastic, lace not of vegetable fibre 212,874
6002.10.90.10 Narrow knitted fabrics, with elastomeric yarn, man-made fibres 429,318
6002.10.90.90 Narrow knitted fabrics, with elastomeric yarn, natural fibres 186,624
6002.20.10.00 Narrow knitted fabrics, non-elastic, lace solely vegetable fibre 105,192
6002.20.20.00 Narrow knitted fabrics, non-elastic, lace (not 100% vegetable fibre ) 856,626
6002.20.90.10 Narrow knitted fabrics, non-elastic, cotton 215,196
6002.20.90.20 Narrow knitted fabrics, non elastic, man-made fibre 416,292
 6002.20.90.90 Narrow knitted fabrics, non-elastic, natural fibre (excl. cotton) 95,184
6002.41.00.00 Narrow knitted fabrics, elastic, man-made fibre 14,826
6002.42.10.00 Warp knit broad fabrics, lace solely cotton or cotton/vegetable 23,640
6002.42.20.00 Warp knit broad fabrics, lace cotton blends 22,044
6002.42.90.00 Warp knit broad fabrics, non-lace, cotton 483,270
6002.49.10.00 Warp knit broad fabrics, lace solely vegetable fibres 504
6002.49.20.00 Warp knit broad fabrics, lace not solely of vegetable fibres 24,666
6002.49.30.00 Warp knit broad fabrics, textile fibres nes, used for 1,920
6002.49.90.00 Warp knit broad fabrics, textile fibres nes 15,006
6002.91.00.10 Single knit broad fabrics, wool/fine hair 48,264
6002.91.00.20 Double knit/interlock broad fabrics, wool/fine hair 17,472
6002.91.00.90 Single/double knit broad fabrics, assembled by sewing/gum, wool/fine 81,036
6002.92.00.20 Double knit/interlock broad fabrics, cotton 779,520
6002.92.00.90 Single/double knit broad fabrics, assembled by sewing/gum, cotton 13,648,410
6002.93.00.11 Single knit broad fabrics, for apparel, polyester (>84%) 2,857,470
6002.93.00.12 Single knit broad fabrics, for apparel, polyester (<85%) 1,827,522
6002.93.00.13 Single knit broad fabrics, for apparel, man-made fibre nes 954,204
6002.93.00.14 Double knit/interlock broad fabrics, for apparel, man-made fibre nes 812,706
6002.93.00.19 Single/double knit broad fabrics, assembled by sewing/gum, man-made 9,945,042
6002.93.00.21 Single knit broad fabrics, for non-apparel, polyester (>84%) 1,285,470
6002.93.00.22 Single knit broad fabrics, for non-apparel, polyester (<85%) 2,034,594
6002.93.00.23 Single knit broad fabrics, for non-apparel, man-made nes 339,972
6002.93.00.24 Double knit/interlock broad fabri cs, for non-apparel, man-made nes 1,146,390
6002.93.00.29 Single/double knit broad fabrics, assembled by sewing/gum, M-M for 1,904,970
6002.99.00.00 Single/double knit broad fabrics, natural fibre (excl. 3,186,060
6302.10.00.00 Bed linen, knitted & crocheted 180,090
6302.21.00.19 Bed linen nes, woven, flannelette cotton, printed 43,401
6302.21.00.29 Bed linen nes, woven, percale cotton, printed 30,653
6302.21.00.99 Bed linen nes, woven, muslin cotton, printed 1,541,114
6302.22.00.19 Bed linen, woven, flannelette man-made fibre, printed 29,015G/TMB/N/2/Corr.4
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HS TARIFF LINE DESCRIPTION SMEs
6302.22.00.29 Bed linen, woven, percale man-made fibre, printed 124,495
6302.22.00.99 Bed linen, woven, muslin man-made fibres, printed 277,559
6302.29.00.00 Bed linen, woven, natural fibre nes (excl. cotton) printed 84,583
6302.31.00.19 Bed linen, woven, flannelette cotton 49,019
6302.31.00.29 Bed linen, woven, percale cotton 388,075
6302.31.00.99 Bed linen nes, woven, muslin cotton 815,471
6302.32.00.19 Bed linen, woven, flannelette man-made fibre 13,149
6302.32.00.29 Bed linen, woven, percale man-made fibre 330
6302.32.00.99 Bed linen, woven, muslin man-made fibre 251,660
6302.39.00.00 Bed linen nes, woven, natural fibre nes (excl. cotton) 245,225
6302.52.00.10 Tablecloths, woven, flax 164,652
6302.52.00.20 Tablecloths & serviette sets, woven, flax 10,344
6302.52.00.90 Table linen, woven, flax 24,016
6302.91.00.00 Toilet/kitchen linen, woven, cotton 3,767,528
6302.92.00.00 Toilet/kitchen linen, woven, flax 160,566
6302.93.00.00 Toilet/kitchen linen, woven, man-made fibre  75,672
6302.99.00.00 Toilet/kitchen linen, woven, natural fibre (excl. cotton/flax) 61,989
6304.11.00.00 Bedspreads, knitted/crocheted 6,078
6304.19.00.10 Bedspreads, woven, cotton 519,970
6304.19.00.20 Bedspreads, woven, polyester 187,960
6304.19.00.30 Bedspreads, woven, acrylic/modacrylic 42,896
6304.19.00.90 Bedspreads, woven, textile fibre nes 366,710
TOTAL 130,631,282G/TMB/N/2/Corr.4
G/TMB/N/214/Corr.5
G/TMB/N/370/Corr.6
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ANNEX 3
Items Added to Third Stage
HS TARIFF LINE DESCRIPTION SMEs
Category 21 Cotton yarns
5207.10.00.10 Cotton (>84%) yarn, embroidery, for retail 101,405
5207.10.00.20 Cotton (>84%) yarn, crochet/hand-knit, for retail 581,876
5207.10.00.90 Cotton (>84%) yarn, nes, for retail 488,690
5207.90.00.00 Cotton (<85%) yarn, nes, for retail 940,992
Category 22.1 Nylon filament yarns (restrained from South Korea)
5402.10.00.10 M-M synthetic filaments, high tenacity yarn, nylon 9,463,395
5402.10.00.20 M-M synthetic filaments, high tenacity yarn, aramids 1,872,962
5402.41.00.10 M-M synthetic filaments, single yarn  (0-4 turns/m) nylon/polyamides 1,970,995
5402.41.00.21 M-M synthetic filaments, single yarn (poy) (5-50 turns/m) 760,480
5402.41.00.29 M-M synthetic filaments, single yarn (5-50 turns/m) nylon/polyamides 26,075,055
5402.51.00.00 M-M synthetic filaments, single yarn (>50 turns/m) nylon/polyamides 1,010,769
5402.61.00.00 M-M synthetic filaments, plied yarn, nylon/polyamides 11,274,042
5406.10.00.10 M-M synthetic filament yarn, nylon/polyamides, retail 1,028,605
Category 22.2 Nylon staple yarns (restrained from South Korea)
5511.10.00.10 Nylon/polyamides (>84%) synthetic, staple fibre yarn, retail 159,304
Category 23.1 Polyester filament yarns (restrained from South Korea)
5402.43.00.00 M-M synthetic filaments, single yarn nes (<50 turns/m) polyester 11,990,816
5402.52.00.00 M-M synthetic filaments, single yarn (>50 turns/m) polyester 2,703,285
5402.62.00.00 M-M synthetic filaments, plied yarn, polyester 4,808,089
5406.10.00.20 M-M synthetic filament yarn, polyester, retail 111,241
Category 29.4 Other man-made filament yarns
5404.10.00.10 M-M synthetic monofilaments (length <30cm) 1,127,425
5404.10.00.20  M-M synthetic monofilaments (length >30cm) 11,315,343
5406.10.00.90 M-M synthetic filament yarn, nes, retail 454,213
sub-total for restrained SMEs 73,229,038
sub-total for unrestrained SMEs 15,009,944
TOTAL 88,238,982
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