WORLD TRADE
ORGANIZATIONG/TMB/N/456
28 October 2002
(02-5912)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.17
CANADA
Administrative Arrangements with Chinese Taipei
The Textiles Monitoring Body has received a notification from Canada pursuant to
Article 2.17.  The TMB is circulating this notification to WTO Members for their information.G/TMB/N/456
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The Permanent Mission of Canada
to the United Nations
Geneva
23 October 2002
The Honourable András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
Rue de Lausanne 154CH-1211 Genève 21
Dear Mr. Chairman,
Pursuant to Article 2.17 of the Agreement on Textiles and Clothing (ATC), I have the honour
to notify Canada’s administrative arrangements with the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu.  These arrangements are contained in the attached document entitled
"Administrative Arrangement for the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and
Matsu To Be Notified By Canada Pursuant to Article 2 of the Agreement on Textiles and Clothing".
Yours sincerely,
(Signed)
Frédéric Seppey
First SecretaryG/TMB/N/456
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Administrative Arrangement for the Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu To Be Notified By Canada Pursuant to Article 2 of the
Agreement on Textiles and Clothing.
Introduction1. The following sets out the administrative arrangements that have been agreed to by Canada
and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu pursuant to Article 2.17
of the WTO Agreement on Textiles and Clothing (ATC), pertaining to restrained textiles and clothing
products from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
Implementation2. In accordance with the provisions of Article 4.1 of the ATC, these arrangements will be
implemented on the basis of the export control system operated by the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu. Exports of the textile products included in the restraints notified
under Article 2.1 of the ATC will be covered by an original Export Quota Certificate endorsed andissued by the Taiwan Textile Federation (hereinafter referred to as "TTF") of the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu to the effect that the goods covered by the export
quota certificate have been debited from the applicable quantitative limit.
3. For the purpose of implementing these arrangements, the date of export from the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu will be used to determine the restraint
period in which any shipments of textile products will be counted.
4. Export Quota Certificates issued by the TTF in respect of restrained textile products will
contain the following information:
a. Country/Territory of Destination;
b. Origin;
c. License number;
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 setout in the restraint notified under Article 2.1 of the ATC;
h. F.O.B. or C.I.F. value except for non-commercial consignments;
i. Certification by the TTF that the quantity has been debited from the agreed restraint
limit for exports to Canada, or where appropriate, is for immediate re-export or for
inward processing and subsequent re-export from Canada.
5. In the event that any quantity covered by an export quota certificate is not shipped, the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu will notify Canada of such
quantity which may be credited by the Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu to the appropriate restraint limit.
6. Except as provided for in paragraphs 7 to 10 below (Swing and Carryover/Carry Forward),
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu will restrain its exports to
Canada of the apparel and textile products notified pursuant to Article 2.1 of the ATC to the limitsG/TMB/N/456
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notified under Article 2.1 of the ATC, as modified by the provisions of Articles 2.7, 2.8, and 2.14 (b)
of the ATC. Pursuant to Article 4.1 of the ATC, it is understood that Canada will not 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
7. Subject to the specific limitations contained in the restraint notification under Article 2.1 of
the ATC, and following notification to the appropriate Canadian authorities, the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu 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 deducted from any other rest raint level. When any re straint limit is exceeded
by the application of swing, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
will so indicate in subsequent monthly statistical reports.
8. For the purpose of implementing the swing provisions in paragraph 7, the conversion factors
specified in the restraint notification under Article 2.1 of the ATC will apply.
Carryover/Carry Forward9. Following notification to Canada 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 thecorresponding quantitative limit for the following annu al restraint period.  The restraint limit for any
such restraint period will be increased within th e percentage limits specified in the restraint
notification under Article 2.1 of the ATC.
10. Following notification to Canada 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 limit for any such  following restraint period will be reduced by a quantity equal
to the quantity so advanced.
Exchange of Statistics
11. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu will provide Canada
with monthly statistical reports relating to exports of restrained apparel and textile products, licensed
for export to Canada and debited from the quantitative limits for each restraint period. These statistics
will include the following information:
a. Item number and description;
b. Original and adjusted restraint limits for the restraint period;
c. Total quantity issued for the restraint period to date;
d. Notification of any utilization of swing, ca rryover or carry forward provisions and the
quantities involved as provided for in paragraphs 7 to 10 above.
This information should be provided as soon as possible following the end of each month.
12. Canada will provide the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
with monthly statistical reports relating to impor t permits issued for imports originating in the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu of textile products listed in
Annex.G/TMB/N/456
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13. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and Canada 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 for
imports from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
Re-exports
14. Canada will, so far as possible, inform the Separate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu when imports into Canada of restrained textile products are subsequently
re-exported from Canada. Where such re-exports have originally been debited by the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu from quantitative limits, the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu may then credit back the quantity involvedto the appropriate quantitative limits.
Consultations15. Pursuant to Article 8.4 of the ATC, the Se parate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu and Canada express their willingness to consult, on request, on any matter arising
from the implementation or operation of the ATC or of this Arrangement or on any matter germane
thereto.
_____________