WORLD TRADE G/TMB/N/264
22July1997
ORGANIZATION(97-3031)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withBangladesh
TheTextiles Monitoring Body hasreceived anotification fromtheUnited States pursuant to
paragraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheir
information.G/TMB/N/264
Page2
Executive Office ofthePresident
Office oftheUnited States Trade Representative
14April 1997
TheHonourable Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
Attached youwillfindmyGovernment 'snotification ofAdministrative Arrangements for
Bangladesh1,Jamaica, Kenya, Mauritius andPoland made pursuant toArticle 2.17oftheAgreement
onTextiles andClothing. Inaddition, Iamsubmitting corrected copies ofprevious 2.17notifications
forPakistan andHaiti. InthecaseofPakistan, thecorrected notification includes paragraph 3ofthe
bilateral agreement which wasmistakenly omitted from ouroriginal notification. Inaddition, the
corrected version ofthenotification forHaiti omits paragraph 5ofthebilateral agreement which was
mistakenly included intheoriginal notification.
Sincerely,
(signed) Ambassador RitaHayes
Chief Textile Negotiator
1Thisdocument contains theAdministrative Arrangements concluded with Bangladesh. Administrative
Arrangements concluded withtheother Members listed above willbecirculated asseparate documents.G/TMB/N/264
Page3
BANGLADESH
Thefollowing provisions aredrawn fromtheUnited States -Bangladesh bilateral textile and
apparel agreement of10December 1994, asamended, andhavebeenagreed tobenecessary forthe
proper implementation ofrestrictions notified totheTextiles Monitoring Body under Article 2.1of
theAgreement onTextiles andClothing.
Coverage ofAgreement
2. Forpurposes ofthisAgreement, theterm"Textiles" means textiles andtextile articles of
cotton, wool, man-made, silkblend andnon-cotton vegetable fibres. Textiles andtextile products
covered bythisAgreement arethose limited under theAnnex.2
Merged Categories
3. Forthepurposes ofthisAgreement, thecategories listed below aremerged andtreated as
single categories asindicated:
Category Designation Conversion Unit
inAgreement Factor toSME
336and636 336/636 37.90 doz
338and339 338/339 6.00 doz
340and640 340/640 20.10 doz
342and642 342/642 14.90 doz
347and348 347/348 14.90 doz
351and651 351/651 43.50 doz
352and652 352/652 11.30 doz
638and639 638/639 12.96 doz
645and646 645/646 30.80 doz
647and648 647/648 14.90 doz
Flexibility Adjustments
5.(A) (I) TheSpecific Limits setforthintheAnnex donotinclude anyadjustments permitted
under paragraph 5.
(II) Seven (7)percentswing shall beavailable forallcategories. Six(6)percent
carry forward andamaximum ofeleven (11)percentcarryover areavailable inall
categories; combined carry forward andcarryover shall notexceed eleven
(11)percent. Carry forward shallnotbeavailable inthefinalagreement year.
(III) Inaccordance with paragraph 5,carryover andcarry forward shall beavailable
between the1994 and1995 agreement periods. Carry forward shall beavailable
between the1994 agreement period andthefirstyear oftheUruguay Round
Agreement which willbegin on1January 1995.
2TheAnnex referred tointhetextcontains thelistofrestrictions notified bytheUnited States pursuant to
Article 2.1andassuch itisnotpartoftheAdministrative Arrangements.G/TMB/N/264
Page4
(IV) Inaddition toregular flexibility, special shift, which shallbecalculated onthebase
levelofthereceiving category, shallbeavailable asfollows:
(a) Special shiftshall beavailable between categories 347/348 and847inthe
amount of15percent.
(b) Special shiftshallbeavailable between categories 334and335intheamount
of15percent.
(c) Special shiftshallbeavailable between categories 335and635intheamount
of15percent.
(d) Special shiftshallbeavailable intocategories 641and647/648 (indozens)
from anyother specific limitexcept 331intheamount of15percent.
(e) Special shiftof11.25 percentshallbeavailable foreither category 338/339
or638/639, provided thatanequivalent amount insquare metres isdeducted
from theother category inthesame agreement year. Thesquare metre
equivalent conversion factor for638/639 shallbe12.96.
(f) Special shiftshallbeavailable between categories 334and634intheamount
of15percent.
(g) Special shiftfromcategory 342/642 intocategory 336/636 shallbeavailable
intheamount of15percent.
(h) Special carry forward of20percentforthefollowing categories willbe
available forapplication in1994 only:
334,340/640, 341,351/651, 363,634,635,641,647/648, and847.
(i) Allother categories subject torestraint willreceive special carry forward of
15percentforapplication in1994 only.
USAssistance intheImplementation ofLimitation Provisions
6. TheGovernment ofBangladesh shall administer itsexport control system under this
Agreement. TheGovernment oftheUnited States hastherighttoassist inimplementing theabove
understanding.
Exchange ofData
7. Each party agrees tosupply promptly theother party information within itspossession
reasonably believed tobenecessary totheenforcement ofthisAgreement subject tonational laws.
VisaandExempt Certification System
8. Both Governments agree tomaintain thevisaandexempt certification system effected by
exchange ofletters dated 17April 1987 and25May1988, asamended.G/TMB/N/264
Page5
Commercial Samples andPersonal Shipments
9. Merchandise imported forthepersonal useoftheimporter andnotforresale, regardless of
value, andproperly marked commercial sample shipments valued at250dollars orlessdonotrequire
avisaorexempt certification forentry andshallnotbecharged toagreement levels.
Cooperation inPrevention ofCircumvention
Customs cooperation
10. Both Governments notethattheyarewilling andprepared tocooperate witheachother in
addressing specific cases ofcircumvention. Since bothsidesagree thatcircumvention isnotdesirable,
boththeGovernments oftheUnited States andBangladesh agree tothefollowing provisions:
(A) TheGovernment oftheUnited States andtheGovernment ofBangladesh agree to
takemeasures necessary toaddress, toinvestigate and,where appropriate, totake
legaland/or administrative action toprevent circumvention ofthisAgreement, such
asbytransshipment, rerouting, false declaration concerning country oforigin or
falsification ofofficial documents.
(B) Both parties agree tocooperate fully, consistent with their domestic laws and
procedures, ininstances ofcircumvention oralleged circumvention oftheAgreement
toaddress problems arising fromcircumvention andtoestablish therelevant factsin
theplaces ofimport, export and,where applicable, transshipment. Suchcooperation,
totheextent consistent withdomestic lawsandprocedures, willinclude investigation
ofcircumvention practices, exchange ofdocuments, correspondence, reports and
other relevant information totheextent available; andfacilitation ofjointplant visits
andcontacts byrepresentatives ofbothparties upon request andonacase-by-case
basis. When either party wishes tovisitcertain plants, theparty seeking theplant
visitorvisits shallgivewritten notice, including thereasons forsuchvisits, tothe
authorities oftheother party (i.e., theUSCustoms authorities intheUSA orthe
Ministry ofCommerce inBangladesh) twoweeks inadvance. Theplants willnotbe
notified inadvance ofthevisit. When thevisitoccurs, permission fromaresponsible
representative oftheplant willbeobtained before thevisitiscommenced. Upon
completion ofsuchvisits during eachtrip,thevisiting party shallfurnish areport to
therespective Government officials oftheother party onthevisits.
(C) Ifeither party believes thatthisAgreement isbeing circumvented, itmayrequest
consultations toaddress thematter ormatters concerned withaview toseeking a
mutually satisfactory solution. Eachparty agrees toholdsuchconsultations promptly,
beginning within 30daysofthereceipt, byaparty, ofawritten request accompanied
byanexplanation fortherequest fromtheother party andconcluding within 90days,
unless extended bymutual agreement, andtocooperate fullyinterms oftheelements
setoutinparagraph (B)above.
(D) Should theparties beunable inthecourse oftheconsultations toreach asatisfactory
solution within theperiod specified inparagraph (C),thentheGovernments of
Bangladesh andtheUnited States agree thattheUnited States mayintroduce a
restraint, orwhere arestraint already exists, maydeduct fromthequantitative limits
forthatagreement period, amounts notmore thantheamount oftransshipped
products ofBangladesh origin, incases:G/TMB/N/264
Page6
(I) where clear evidence regarding circumvention hasbeen provided bythe
Government oftheUnited States totheGovernment ofBangladesh; or
(II) where theGovernment oftheUnited States hasprovided factual information
totheGovernment ofBangladesh demonstrating asubstantial likelihood that
circumvention hasoccurred andhasrequested from theGovernment of
Bangladesh cooperation orinformation relevant tothepossible circumvention
thatisofatypethatisavailable toorcould reasonably beobtained bythe
Government ofBangladesh, andtheGovernment ofBangladesh haswithout
adequate reason withheld suchinformation orcooperation; or
(III) where there isclear evidence showing thatgoods originating inanother
country havebeenshipped through Bangladesh totheUnited States asthough
theywere products ofBangladesh.
TheUnited States andtheGovernment ofBangladesh agree thatthere maybeshipments
transiting through Bangladesh withnochange oralterations made tothegoods contained in
suchshipments inBangladesh. Boththeparties agree thatitmaynotbegenerally practicable
forBangladesh toexercise control oversuchshipments.
(E) Should theUnited States finditnecessary toresort totheprovisions ofparagraph (D)(I)or
(II)todeduct anamount oramounts fromthequantitative limits ofBangladesh where repeated
instances ofcircumvention have been demonstrated within thecurrent orimmediately
preceding agreement year, thentheUnited States maydeduct from thequantitative limit
amounts uptothree times theamounts transshipped, provided thatsuch deductions are
distributed equally ineachofthethree following years. Both parties agree thattheabove
provision willberesorted tobytheUnited States onlyifnotlessthanthree instances of
circumvention byBangladesh have been demonstrated during thecurrent orimmediately
preceding agreement yearandno,orinadequate measures arebeing applied byBangladesh
toaddress theproblem ofrepeated circumvention.
(F) Parties agree thatfalse declaration concerning fibre content, quantities, description or
classifications ofmerchandise alsofrustrates theobjective ofthisAgreement. Where there
isclearevidence thatanysuchfalsedeclaration hasbeenmade forpurposes ofcircumvention,
bothparties agree totakeappropriate measures, consistent withtheir domestic lawsand
procedures, against exporters orimporters involved. Should either party believe thatthis
Agreement isbeing circumvented bysuch false declaration andthatno,orinadequate,
administrative measures arebeing applied toaddress and/or totakeaction against such
circumvention, thatparty should consult promptly withtheparty involved withaview to
seeking amutually satisfactory solution. Such consultations should beheldpromptly,
beginning within 30daysofthereceipt ofawritten request byaparty accompanied byan
explanation fortherequest from theother party andconcluding within 90days, unless
extended bymutual agreement. Should theparties beunable toreach asatisfactory solution,
thentheGovernment ofBangladesh andtheUnited States agree thatincases where clear
evidence regarding suchfalsedeclarations hasbeen provided, thentheUnited States may
deduct from thequantitative limits established forthecurrent agreement yearanamount
equivalent totheamount ofproduct subject tothefalsedeclaration orclassification. Any
suchaction shallbenotified totheTMB withfulljustification. Thisprovision isnotintended
toprevent parties frommaking technical adjustments when inadvertent errors indeclarations
havebeenmade. Bothparties agree thatanydifferences ordiscrepancies inthedeclaration
given byanexporter which arebased onadecision indicated bytheExport Promotion Bureau
ofBangladesh willnotberegarded asafalsedeclaration made forpurposes ofcircumvention.G/TMB/N/264
Page7
(G) Intheevent ofaneedarising totakerecourse toanyadjustment assetoutinparagraphs (D),
(E),and(F),theUnited States willexplore withBangladesh shallpossible avenues forfinding
amutually satisfactory solution before taking suchaction, together withitstiming andscope.
Action taken under theparagraphs (D),(E),and(F)maybereferred byeither party tothe
TMB forrecommendation.