WORLD TRADE G/TMB/N/266
22July1997
ORGANIZATION(97-3033)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withColombia
TheTextiles Monitoring Body hasreceived anotification fromtheUnited States pursuant to
paragraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheir
information.G/TMB/N/266
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,
Colombia1,Costa Rica, Fiji,Haiti, Hungary, India, Indonesia, Korea, Macau, Malaysia, Philippines,
Qatar,Romania,SriLanka,Thailand,UAEandUruguaymadepursuanttoArticle2.17oftheAgreement
onTextiles andClothing.
Sincerely,
(signed) Ambassador RitaHayes
Chief Textile Negotiator
1This document contains theAdministrative Arrangements concluded with Colombia. 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/266
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COLOMBIA
Thefollowing provisions aredrawn from theUS-Colombia bilateral textile andapparel
agreement of3April 1992 andtheMemoranda ofUnderstanding of15October 1993 and
18November 1994andhavebeenagreed tobenecessary fortheproper implementation ofrestrictions
notified totheTextiles Monitoring Body under Article 2.1oftheAgreement onTextiles andClothing.
Coverage ofAgreement andClassification
2. Theproducts covered bytheAgreement andtherateofconversion intosquare meters equivalent
aresetoutinAnnex A.Forthepurposes ofthisAgreement, theproduct shallbeclassified asacotton
textile ifthecotton component exceeds 50percentbyweight ofallcomponent fibres thereof, unless
wool equals orexceeds 36percentbyweight ofallfibres, inwhich casetheproduct willbeawool
textile.
Specific Limits
3. During thetermoftheAgreement, theGovernment ofColombia shalllimitineachagreement
yearexports fromColombia totheUnited States ofthetextile products listed inAnnex A,tothespecific
limits setforth inAnnex Bhereto, assuchlimits maybeadjusted inaccordance withparagraph 4.
Thelimits setoutinAnnex Barewithout suchadjustments. Exports aresubject toalimitfortheperiod
inwhich theyareexported.
Flexibility Adjustments
4.(A) During anyagreement year, thespecific limits setoutinAnnex Bmaybeincreased bynot
morethan7percent(swing)providedthatacorrespondingreductioninsquaremetersequivalent
ismade inoneormore other specific limits during thesame agreement year.
(B) Inanyagreement year, exports mayexceed byamaximum of11percentanyspecific limit
setoutinAnnex B,byallocating tosuchlimitforthatagreement yearanyunused portion
ofthecorresponding limit fortheprevious agreement year(carryover) oraportion ofthe
corresponding limitforthesucceeding agreement year(carry forward) subject tothefollowing
conditions:
(I) Carryover maybeutilized asavailable subject tosubparagraph 4(B)upto11percent
ofthereceiving agreement year'sspecific limit. Nocarryover shallbeavailable during
thefirstagreement year.
(II) Carry forward maybeutilized upto6percentofthereceiving agreement year'sspecific
limit.Carryforwardusedshallbechargedagainsttheimmediatelyfollowingagreement
year'sspecific limit. Nocarry forward shallbeavailable during thelastagreement
year.
(C) Forthepurposes oftheAgreement, ashortfall occurs when exporters ofthetextile product
fromColombia totheUnited States during anagreement yeararebelow theapplicable specific
limitassetoutinAnnex B.Intheagreement yearfollowing theshortfall, suchexports from
Colombia totheUnited States maybepermitted toexceed thelimitapplicable tothatyear,
subject totheconditions ofsubparagraph 4(A),bycarryover ofanamount nottoexceed the
actual shortfall intheprevious period.G/TMB/N/266
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(D) TheGovernment ofColombia shallnotify theGovernment oftheUnited States oftheapplication
ofadjustments asavailable under thisparagraph. Anyunused carry forward willberecredited
tothefollowing agreement year'slimit.
USAssistance intheImplementation oftheLimitation Provisions
5.(A) TheGovernment oftheUnited States mayassist theGovernment ofColombia inimplementing
thelimitation provisions oftheAgreement bycontrolling itsimports ofthetextile product
covered bytheAgreement.
Overshipment Charges
(B) Exports fromColombia inexcess oftheauthorized limitinanyagreement yearmaybedenied
entry intotheUnited States. Anysuchshipments denied entry maybepermitted entry into
theUnited States andcharged totheapplicable limitinthesucceeding agreement year. The
Government oftheUnited States shallpromptly inform theGovernment ofColombia ofany
suchcharges.
(C) Exports from Colombia inexcess oftheauthorized limitinanyagreement year, ifallowed
entry intotheUnited States during thatagreement year, willbecharged totheapplicable limit
inthesucceeding agreement year.
Spacing Provisions
6. TheGovernment ofColombia shalluseitsbestefforts tospace exports fromColombia tothe
United States ofthetextile products covered bytheAgreement evenly throughout eachagreement year,
taking intoaccount normal seasonal factors.
Exchange ofData
7. TheGovernmentoftheUnitedStatesshallpromptlysupplytheGovernmentofColombiamonthly
dataonimports oftheproduct subject tothisAgreement; andtheGovernment ofColombia shallsupply
theGovernment oftheUnited States withquarterly dataonexports ofsuchproduct from Colombia
totheUnited States. EachGovernment agrees tosupply promptly anyotherpertinent, rapidly available
statistical datarequested bytheother Government.
Mutually Satisfactory Administrative Arrangements
8. Mutually satisfactory administrative arrangements oradjustments maybemade toresolve minor
problems arising intheimplementation ofthisAgreement, including differences inpoints ofprocedure
oroperation.
Consultation onImplementation Questions
9. TheGovernment oftheUnited States andtheGovernment ofColombia agree toconsult on
anyquestion arising intheimplementation oftheAgreement.
Cooperation inthePrevention ofCircumvention
11. TheGovernment ofColombia andtheGovernment oftheUnited States shallcooperate toavoid
circumvention ofthisAgreement.G/TMB/N/266
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ANNEX A
Conversion Unitof
Category Description Factor Measure
315 Cotton printcloth 1.0 M2
443 Wool men'sandboys'suits 3.76 Nos.G/TMB/N/266
Page6
ANNEX C
Cooperation inthePrevention ofCircumvention
TheGovernment oftheUnited States takes noteofthefactthatthere hasnotbeen any
documented cases ofcircumvention involving Colombia. BothGovernments notethattheyarewilling
andprepared tocooperate witheachother inaddressing specific cases ofcircumvention. Since both
sides areagreed thatcircumvention isnotdesirable, boththeGovernments oftheUnited States and
Colombia agree tothefollowing provisions:
1. TheGovernment oftheUnited States andtheGovernment ofColombia agree totake
measures necessary toaddress, toinvestigate and,where appropriate, totakelegal and/or
administrative action toprevent circumvention bytransshipment, rerouting, falsedeclaration
concerning country oforigin.
2. Bothpartiesagreetocooperatefully,consistentwiththeirdomesticlawsandprocedures,
ininstances ofcircumvention oralleged circumvention toaddress problems arising from
circumvention andtoestablish therelevant factsintheplaces ofimport, export and,where
applicable, transshipment. Suchcooperation, totheextent consistent withdomestic lawsand
procedures, willinclude investigation ofcircumvention practices; exchange ofdocuments,
correspondence, reports andother relevant information totheextent available; andfacilitation
ofjointimpromptu plant visits andcontacts byrepresentatives ofeither party, upon request
andonacase-by-case basis. When either party wishes tovisitcertain plants, theparty seeking
theplant visitorvisits shallgivewritten notice, including thereasons forsuchvisit, tothe
authorities oftheother party (i.e., theUSCustoms authorities intheUSortheMinistry of
Trade inColombia) twoweeks inadvance. Theplant(s) willnotbenotified inadvance of
thevisit. When thevisitoccurs, permission from aresponsible representative oftheplant
willbeobtained before thevisitiscommenced. Ifpermission isdenied, thenthevisitwill
notgoforward. Upon completion ofsuchvisits during eachtrip,thevisiting partshallfurnish
areport totherespective Government officials oftheother party onthevisits.
3. Ifeither party believes thatthisAgreement isbeing circumvented, itmayrequest
consultations toaddress thematter ormatters concerned withaview ofseeking amutually
satisfactory solution. Eachparty agrees toholdsuchconsultations promptly, beginning within
30daysofthereceipt ofarequest byaparty andconcluding within 90days, unless extended
bymutual agreement, andtocooperate fullyinterms oftheelements setoutinparagraph 2
above.
4. Should theparties beunable toreach asatisfactory solution inthecourse ofthe
consultations called forunder paragraph 3,thentheGovernments ofColombia andthe
UnitedStatesagreethatincaseswhereclearevidenceregardingcircumventionhasbeenprovided
totheGovernment ofColombia, thentheUnited States maydeduct fromanyquantitative limits
established bythisbilateral agreement. Such deductions would bemade intheconcerned
agreement period inamounts equivalent totheamount oftransshipped products ofColombian
origin. BoththeGovernment oftheUnited States andtheGovernment ofColombia agree
tomake every effort topunish thespecific andnamed perpetrators ofillegal andfraudulent
acts, attheadministrative, civiland/or criminal levels. Inaddition, theGovernments of
Colombia andtheUnited States agree thatdeductions fromanyquantitative limits established
under atextile andapparel bilateral agreement maybemade inthose instances inwhich: a)
theGovernment oftheUnited States hadprovided factual information totheGovernment ofG/TMB/N/266
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Colombia demonstrating asubstantial likelihood thatcircumvention hasoccurred; andb)the
Government oftheUnited States hasrequested fromtheGovernment ofColombia cooperation
orinformation relevant tothepossible circumvention thatisofatypethatisavailable toor
could reasonably beobtained bytheGovernment ofColombia, andc)theGovernment of
Colombia hasnotprovided suchinformation orcooperation within theperiod forconsultation
outlined inparagraph 3.Anysuchaction shallbenotified totheTSB, oritssuccessor, with
fulljustification.
5. Should theUnited States choose toexercise itsrights under paragraph 4todeduct an
amount oramounts from thequantitative limits ofColombia where repeated instances of
circumvention havebeendemonstrated within thecurrent orimmediately preceding agreement
year, thentheUnited States maydeduct fromthequantitative limitamounts uptothree times
theamounts transshipped, provided thatsuchdeductions aredistributed equally ineachofthe
three following years. Bothparties agree thatthisprovision willbeinvoked bytheUnited
States onlyafterconsultations pursuant toparagraph 3havebeenheldandonlyifmore than
twoinstances ofcircumvention byColombia havebeendemonstrated during thecurrent or
immediately preceding agreement yearandnoorinadequate measures arebeing applied by
Colombia toaddress theproblem circumvention. Anysuchactions shallbenotified tothe
TSBoritssuccessor withfulljustification.
6. Where thereisclearevidence showing thatgoods originating inanother country have
beenshipped through Colombia totheUnited States asthough theywereproducts ofColombia,
theGovernments ofColombia andtheUnited States agree totakeappropriate action. Such
action mayinclude theintroduction ofrestraints intherelevant category orcategories or
deducting theamount ofgoods soshipped fromanyquantitative limits established forthecurrent
agreement yearunder thisAgreement forshipments originating inColombia. Anysuchactions,
together withtheirtiming andscope, maybetaken afterconsultation heldwithaviewofarriving
atamutually satisfactory solution andshallbenotified totheTSB, oritssuccessor, withfull
justification. Suchconsultations should beheldpromptly, beginning with30daysofarequest
byaparty, andconcluding within 90days, unless extended bymutual agreement. Should the
parties beunable toreach asatisfactory solution, thentheGovernments ofColombia andthe
UnitedStatesagreethatincaseswhereclearevidenceregardingcircumventionhasbeenprovided
totheGovernment ofColombia, theUnited States mayintroduce arestraint or,where arestraint
already exists, maydeduct from thequantitative limits established under thisAgreement an
amount equivalent totheamount ofproduct transshipped through Colombia. Both the
Government oftheUnited States andtheGovernment ofColombia willmake every effort to
punish thespecific andnamed perpetrators ofillegal andfraudulent acts,attheadministrative,
civiland/or criminal levels. Intheevent thatColombia 'squotas havebeencharged inerror
orthatrestraints havebeenapplied inerrorunder thisprovision thenassoonasthetruecountry
oforigin hasbeendetermined anddeductions havebeenapplied toitsquotas, thentheUnited
States willimmediately restore theamounts deducted totheircorresponding levels ofrestraint
orremove thenewrestraints introduced under thisprovision.
7. Parties notethatsome casesofcircumvention mayinvolve shipments either which have
nottransitted through Colombia ortransitting through Colombia withnochanges oralterations
made tothegoods contained insuchshipments. They notethatitmaynotbegenerally
practicable forColombia toexercise control oversuchshipments.
8. Parties agree thatfalsedeclaration concerning fibre content, quantities, description
orclassifications ofmerchandise alsofrustrates theobjective oftheAgreement. Where there
isevidence thatanysuchfalsedeclaration hasbeenmade forpurposes ofcircumvention, both
parties agree totakeappropriate measures, consistent withtheirdomestic lawsandprocedures,G/TMB/N/266
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against exporters orimporters involved. Should either party believe thatatextile andapparel
bilateral agreement isbeing circumvented bysuchfalsedeclaration andthatno,orinadequate,
administrative measures arebeing applied toaddress and/or totakeaction against such
circumvention, thatpartyshould consult promptly withthepartyinvolved withaviewtoseeking
amutually satisfactory solution. Suchconsultation should beheldpromptly, beginning within
30daysofarequest byaparty, andconcluding within 90days, unless extended bymutual
agreement. Should theparties beunable toreach asatisfactory solution, theGovernment of
Colombia andtheUnited States agree thatincases where evidence regarding suchfalse
declarations hasbeenprovided, thentheUnited States maydeduct fromthequantitative limits
established foracurrent agreement yearanamount equivalent totheamount ofproduct subject
tothefalsedeclaration orclassification. Thisprovision isnotintended toprevent parties from
making technical adjustments when inadvertent errors indeclarations havebeenmade. Any
suchactions shallbenotified totheTSB, oritssuccessor, withfulljustification.
9. TheGovernments ofColombia andtheUnited States agree thatnodeductions to
Colombia 'squantitative limits established inthisAgreement willbeapplied toeachparticular
instance ofcircumvention iftheGovernment ofColombia hasprovided theappropriate US
Customs officials withclearevidence orintelligence ofcircumvention sufficient toallow these
USofficials todenyentry totheparticular circumventing goods prior totheirentry intothe
Customs territory oftheUnited States. Insuchinstances, theparties agree thatthepreferred
coursewouldbefortheGovernmentofColombiatoinformtheappropriateUSCustomsofficials
allspecifics oftheexported Colombian goods including verification bytheGovernment of
Colombia thatanydocumentation accompanying theshipment, including thevisaorexempt
certification isinvalid.