RESTRICTED
WORLD TRADE G/TMB/N/158
16July1996
ORGANIZATION(96-2760)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withHungary
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/158
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,CostaRica,Cuba,HongKong,Hungary1,India,Indonesia,Korea,Lesotho,Macau,
Malaysia, Mauritius, Pakistan, Philippines, Romania, Slovak Republic, SriLanka, Swaziland, Thailand
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 withHungary. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/158
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Memorandum ofUnderstanding Between theGovernment ofCanada andthe
Government oftheRepublic ofHungary Relating totheExport
from Hungary ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andHungary, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andHungary tobenotified pursuant toArticle 2.1oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment oftheRepublic
ofHungary. Exports ofthetextile products included intherestraints notified under Article 2.1of
theATC shallbecovered byanoriginal copyoftheHungarian "Export Licence" endorsed andissued
bythecompetent authorities ofHungary totheeffect thatthegoods covered bytheexport licence have
beendebited from theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport from Hungary shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheRepublic ofHungary shallendeavour toensure thatexports toCanada
ofallrestrained textile products arespaced outasevenly aspossible during eachrestraint period, due
account being taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment oftheRepublic ofHungary inrespect ofrestrained
textile products shallcontain thefollowing information:
(a) Country ofdestination;
(b) Country oforigin;
(c) Licence number andquota year;
(d) Importer 'sname andaddress;
(e) Exporter 'sname andaddress;
(f) Category number anddescription ofproduct ascontained inthenotification under
Article 2.1oftheATC;
(g) Quantity expressed intheunitsdesignated foreachproduct inthenotification under
Article 2.1oftheATC;
(h) F.o.b. orc.i.f. value except fornon-commercial consignments;
(i) Certification bythecompetent authorities ofHungary thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.G/TMB/N/158
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6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
oftheRepublic ofHungary shallnotify theGovernment ofCanada ofsuchquantity which maybe
credited bytheGovernment oftheRepublic ofHungary totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (carryover/carry forward), theGovernment
oftheRepublic ofHungary shallrestrain itsexports toCanada ofthetextile products notified pursuant
toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, asmodified bythe
provisions ofArticles 2.13, 2.14and2.18oftheATC. Pursuant toArticle 4.1oftheATC, itis
understood thattheGovernment ofCanada shallnotbeobliged toaccept shipments inexcess ofthe
restraint levels notified under Article 2.1oftheATC, asmodified bytheprovisions ofArticles 2.13,
2.14and2.18oftheATC.
Carryover/carry forward
8. 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.
9. Following notification totheGovernment ofCanada ofthequantities involved, anyrestraint
limitmaybeincreased within thepercentage limits specified inAnnex Ibyaquantity advanced from
thecorresponding restraint limitforthefollowing annual restraint period. Therestraint limitforany
suchfollowing restraint period shallbereduced byaquantity equal tothequantity soadvanced.
Exchange ofstatistics
10. TheGovernment oftheRepublic ofHungary shallprovide theGovernment ofCanada with
quarterlystatisticalreportsrelatingtoexportsofrestrainedtextileproducts,licensedforexporttoCanada
anddebited from thequantitative limits foreachrestraint period. These statistics shallinclude the
following information:
(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;
(c) Total quantity issued fortherestraint period todate;
(d) Notificationofanyutilizationofcarryoverorcarryforwardprovisionsandthequantities
involved asprovided forinparagraphs 8and9above.
Thisinformation should beprovided assoonaspossible following theendofeachquarter.
11. TheGovernment ofCanada shallprovide theGovernment oftheRepublic ofHungary with
monthly statistical reports relating toimport permits issued forimports originating inHungary oftextile
products listed inAnnex I.
12. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired.G/TMB/N/158
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Re-exports
13. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheRepublic
ofHungary when imports intoCanada ofrestrained textile products aresubsequently re-exported from
Canada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheRepublic of
Hungary fromquantitative limits, theGovernment oftheRepublic ofHungary maythencredit back
thequantity involved totheappropriate quantitative limits.
Consultations
14. Pursuant toArticle 8.4oftheATC, theGovernment ofCanada andtheGovernment ofthe
Republic ofHungary express theirwillingness toconsult, onrequest, onanymatter arising fromthe
implementation oroperation oftheATC ofthisMOU oronanymatter germane thereto.
Dateofeffect
15. This MOU wasprepared on15May 1995. Itsprovisions ineffect retroactively from
1January 1995.
(Signed)_________________________ (Signed)___________________________
FortheGovernment FortheGovernment ofthe
ofCanada Republic ofHungary
Budapest Budapest
20December 1995 20December 1995G/TMB/N/158
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ANNEX I-RESTRAINT LEVELS
REPUBLIC OFHUNGARY
GROUP I
(A)
Agreement Item
No.(B)
Product coverage(C)
1995
Restraint level
(NMB)(D)
Growth(E)
Carryover/
Carry forward Category Short description
3a(Note 1) 3.1 Suits, MB; 76,298 5% 10% (5%)
3.3 Jackets andblazers, MB
Note 1:HScodes forchildren areexcluded forsubcategories 3.1and3.3.