RESTRICTED
WORLD TRADE G/TMB/N/172
16July1996
ORGANIZATION(96-2759)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withThailand
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/172
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, Costa Rica, Cuba, Hong Kong, Hungary, India, Indonesia, Korea, Lesotho, Macau,
Malaysia,Mauritius,Pakistan,Philippines,Romania,SlovakRepublic,SriLanka,Swaziland,Thailand1
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 withThailand. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/172
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada and
theGovernment oftheKingdom ofThailand Relating tothe
Export from Thailand ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andThailand, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andThailand tobenotified pursuant toArticle 2.1oftheATC. These
provisions willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles
andclothing from Thailand pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment oftheKingdom
ofThailand. Exports ofthetextile products included intherestraints notified under Article 2.1of
theATC shallbecovered byanoriginal "Export Certificate" endorsed andissued bythecompetent
authorities ofThailand totheeffect thatthegoods covered bytheexport certificate havebeendebited
from theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport fromThailand shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheKingdom ofThailand shallendeavour toensure thatexports toCanada
ofallrestrained textile products arespaced outasevenly aspossible during eachrestraint period, due
account being taken ofseasonal factors andofnormal channels oftrade.
5. Export certificates issued bytheGovernment oftheKingdom ofThailand inrespect ofrestrained
textile products shallcontain thefollowing information:
(a) Country ofdestination;
(b) country oforigin;
(c) certificate number andquota year;
(d) importer 'sname andaddress;
(e) exporter 'sname andaddress;
(f) itemnumberanddescriptionofproductascontainedinthenotificationunderArticle2.1
oftheATC;
(g) quantity expressed intheunits designated foreachproduct inthenotification under
Article 2.1oftheATC. Ifmore thanonesetofmeasures isestablished, allshould
beindicated; where thequantity isexpressed other thanasdesignated, theequivalent
weight, unitsorsquare metres should becalculated inaccordance withtheconversion
factors setoutintherestraint notified under Article 2.1oftheATC;G/TMB/N/172
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(h) f.o.b. orc.i.f. value except fornon-commercial consignments;
(i) certification bythecompetent authorities ofThailand thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport certificate isnotshipped, oranypartof
itisreturned, regardless ofthereason, theGovernment oftheKingdom ofThailand shallnotify the
Government ofCanada ofsuchquantity which maybecredited bytheGovernment oftheKingdom
ofThailand totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government oftheKingdom ofThailand shallrestrain itsexports toCanada ofthetextile products
notified pursuant toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, as
modified bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1
oftheATC, itisunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments
inexcess oftherestraint levels notified under Article 2.1oftheATC, asmodified bytheprovisions
ofArticles 2.7,2.8,2.13and2.14oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofthe
Kingdom ofThailand mayexceed thespecified annual quantitative limituptothepercentage specified
intherestraint notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted
from anyother restraint level. When anyrestraint limitisexceeded bytheapplication ofswing, the
Government oftheKingdom ofThailand 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 oftheKingdom ofThailand shallprovide theGovernment ofCanada with
monthly statistical reports relating toexports ofrestrained textile products, licensed forexport toCanada
anddebited from thequantitative limits foreachrestraint period. These statistics shallinclude the
following information:
(a) Itemnumber anddescription;G/TMB/N/172
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(b) original andadjusted restraint limits fortherestraint period;
(c) totalquantity issued fortherestraint period todate;
(d) notification ofanyutilization ofswing, carryover orcarry forward provisions andthe
quantities involved asprovided forinparagraphs 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
13. TheGovernment ofCanada shallprovide theGovernment oftheKingdom ofThailand with
monthly statistical reports relating toimport permits issued forimports originating inThailand oftextile
products listed inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Thailand.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheKingdom
ofThailand when imports intoCanada ofrestrained textile products aresubsequently re-exported from
Canada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheKingdom of
Thailand fromquantitative limits, theGovernment oftheKingdom ofThailand maythencredit back
thequantity involved totheappropriate quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment oftheKingdom ofThailand andthe
Government ofCanada express theirwillingness toconsult, onrequest, onanymatter arising from
theimplementation oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed)__________________________ (Signed)______________________
FortheGovernment ofCanada FortheGovernment ofthe
Kingdom ofThailand
Bangkok Bangkok
Date: 31August 1995 Date: 31August 1995G/TMB/N/172
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ANNEX I-1995 RESTRAINT LEVELS (PHASE I)
THAILAND
Group I
(A)
Agreement item
No.(B)
Product coverage(C)
1995
Restraint level
(NMB)(D)
WTO
growth(E)
Swing(F)
Carryover/
carry
forward(G)
Conversion
factor (m2/unit)
Category Short description
1a 1.1
1.2Coats
Jackets1,144,013 6.96% 7% 10%(5%) 3.2
1b -ofwhich:
1.1 Coats 129,507 6.96% 7% 10%(5%) 3.2
2 2.0 Winter outerwear 129,135 6.96% 7% 10%(5%) 3.5
3a 3.2 Ensembles, MBC 277,343 6.96% 7% 10%(5%) 3.5
4 4.0 Female casual andfinewear 1,212,221 6.96% 7% 10%(5%) 3.5
5 5.0 Trousers, overalls and
shorts 2,006,935 6.96% 7% 10%(5%) 1.9
6 6.0 Tailored collar shirts, MBC 860,898 6.96% 7% 10%(5%) 2.1
7/8 7.0
8.0Woven shirts, blouses and
similar articles;
Athletic wear, k/cshirts,
blouses andsimilar articles,
T-shirts andsweatshirts2,550,951 6.96% 7% 10%(5%) 1.7
7/8a
7.0
8.1-ofwhich:
Woven shirts, blouses and
similar articles;
k/cshirts, blouses and
similar articles1,291,385 6.96% 7% 10%(5%) 1.7
7/8b
8.4-ofwhich:
Athletic wear (Note 1) 145,263 6.96% 7% 10%(5%) 1.7
9 9.0 Underwear 1,578,419 6.96% 7% 10%(5%) 0.5
10 10.0 Sleepwear andbathrobes 690,132 6.96% 7% 10%(5%) 2.0
11 11.0 Sweaters 1,418,604 6.96% 7% 10%(5%) 1.2
12 12.0 Swimwear 926,443 6.96% 7% 10%(5%) 1.3
14 14.0 Babies 'garments 959,269 6.96% 7% 10%(5%) 0.7
Note 1:Special swing of20%from items 3aand/or 4.G/TMB/N/172
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ANNEX I-RESTRAINT LEVELS
THAILAND
Group II
(A)
Agreement item
No.(B)
Product coverage(C)
1995
Restraint level
(NMB)(D)
WTO
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Conversion
factor (m2/unit)
Category Short description
34 34.0 Nylon fabric (KGM) 142,242 6.96% 7% 10%(5%) 14.5
34A 34.2 -ofwhich
Nylon fabric, finished
(KGM) 54,620 6.96% 7% 10%(5%) 14.5
42A 42.1 Toilet andkitchen, linen,
cotton terry, woven (KGM) 465,089 6.96% 7% 10%(5%) 2.8
43(Note 1) 43.0 Hosiery (PAR) 3,984,219 6.96% 7% 10%(5%) 0.05
Note: Noswing between products inGroup andproducts inGroup II.
Note 1:Excludes HScodes forMBwool hosiery ofcategory 43.1.