WORLD TRADE
ORGANIZATIONG/TMB/N/63/Add.12/Suppl.1
29 May 2002
(02-2933)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.1
UNITED STATES
Supplement
The Textiles Monitoring Body has received a supplement to the notification made by the
United States pursuant to Article 2.1.
The TMB, in accordance with Article 2,2, is circulating this notification to WTO Members
for their information.G/TMB/N/63/ Add.12/Suppl.1
Page 2
Permanent Mission of the United States
to the World Trade Organization
Geneva
13 May 2002
The Honorable András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Rue de Lausanne 1541211 Geneva
Geneva, Switzerland
Dear Mr. Chairman,
Thank you for your letter of 1 March, concerning the notification to the Textiles Monitoring
Body (TMB) by the United States under Article 2.1 of the Agreement on Textiles and Clothing (ATC)
concerning quantitative restrictions mainta ined on imports from Ch ina (G/TMB/N/63/Add.12).
Answers to the specific questions you have posed follow:
1. The notification contains relevant information for the quantitative restrictions in force under
the U.S.-China bilateral agreement concerning trade in textiles and textile products on
10 December 2001, as provided in the Report of the Working Party on China’s accession.
2. Enclosed with this letter is a table showing the quantitative restrictions that were eliminated
on 1 January 2002 as a result of the application of the provisions of ATC Article 2.6 and
Article 2.8.a and 2.8.b.
3. Pursuant to the Working Party Report, which requires that the provisions of the ATC
regarding growth rates "be applied, as appropriate, from the date of accession," it wasdetermined to be appropriate to apply an accelerated growth rate of 25 per cent pro-rated for
that period of time (11 – 31 December 2001) when China was a Member of the WTO in
Stage 2.  Thus, adjusted quotas for Stage 2 were be calculated using the pro-rated Stage 2
growth rate.  In order to determine China’ s quota growth rate for the years 2002-2004, we
increased the pro-rated Stage 2 growth rate used to determine China’s notional 2001 quotasby 27 per cent, which is what is required for Stage 3 under the ATC.   A detailed example of
the methodology is shown below, using China’s quota on Category 342 - Cotton Skirts:
Stage 2
Accelerated Stage 3Pro-Rated Accelerated
Category CY 2000 SL Growth Growth Rate Adj. 2001 SL Growth Rate 2002 SL
342 271,958 doz. 1.00000% 1.01438% 274,717 doz. 1.28827% 278,256 doz.
Stage 2 accelerated, pro-rated growth rate = 1.0 % + (1.0 % x (.25x(21/365)))
Stage 3 growth acceleration is 27 %.G/TMB/N/63/ Add.12/Suppl.1
Page 3
4. Information related to the composition of the four product groups subject to group limits is
being provided in the notification by the United States under Article 2.17.1
5. Category 225:  Category 225 has always been subject to Group III.
6. Use of Zero versus letter O: In all part category designations (i.e., 359O), the "O" is the letter
"O", which refers to “other.”    For all other uses, it is a digit 0.
7. The requested information regarding conversion factors is being provided in the notification
by the United States under Article 2.17.
8. Full product descriptions, as requested, is being provided in the notification by the
United States under Article 2.17.
9. As required by Article 2.16, all the flexibility provisions that were in effect under the bilateral
textile agreement will remain in effect under the ATC, and the restriction on the specific caps
on the combined used of carryover and carry forward as indicated in our notification will beretained, however, there is no quantitative limit on the combined use of swing, carryover and
carry forward.
10. Meaning of term "nte" in note: "NTE"means "not to exceed."
I appreciate the opportunity to provide responses to your questions and will be pleased to
reply to additional questions, if any arise.
Sincerely,
(Signed)
David M. Spooner
Special Textile Negotiator
                                                     
1 See G/TMB/N/450.G/TMB/N/63/ Add.12/Suppl.1
Page 4China - Integration, Phases I, II and III
Category Rest Stage Label Type SMEF 1999 1999 2000 2000 1999-2000 Average 2001 Limit Trade 27% Accel. 2002 Limit
Units SME Units SME Units SME Units Adjustment Growth Rate Units
Group I G 1,504,859,22
8-349,288,659 1.28827% 1,170,457,405
239 2  BABIES' GARM. & CLOTH. ACCESS. SL 6.3 3,146,994 19,826,062 3,506,230 22,089,249 3,326,612 20,957,656 3,203,733 -3,326,612 No Limit
331 3  Knit Gloves SL 2.9 2,707,558 7,851,918 3,782,018 10,967,852 3,244,788 9,409,885 5,395,947 -3,244,788 1.93240% 2,192,728
350 3  COTTON DRESSING GOWNS, ROBES ETC. SL 42.6 181,739 7,742,081 128,008 5,453,141 154,874 6,597,632 179,017 (All) No Limit
369  -D 3  --Dishtowels SL 8.5 4,703,860 39,982,810 4,767,659 40,525,102 4,735,760 40,253,960 4,948,672 (All) No Limit
369  -H 3  --HANDBAGS ONLY SL 8.5 3,694,614 31,404,219 4,710,566 40,039,811 4,202,590 35,722,015 5,309,997 (All) No Limit
369  -L 3  --Luggage SL 8.5 3,498,435 29,736,698 3,428,938 29,145,973 3,463,687 29,441,340 3,561,433 (All) No Limit
607 3  OTHER STAPLE FIBER YARN SL 6.5 102,875 668,688 34,240 222,560 68,558 445,627 3,439,014 (All) No Limit
631 3  Knit Gloves SL 2.9 888,473 2,576,572 1,254,492 3,638,027 1,071,483 3,107,301 1,380,743 -1,071,483 3.22067% 319,220
644/844 Suits SL 3,761,602 -186,482 1.28827% 3,621,177
844 3 WOMEN'S S/V BLEND SUITS 3.76 228,790 860,250 144,173 542,090 186,482 701,172
649 3  MMF BRAS & OTH BODY SUPPORT GARM SL 4 1,033,092 4,132,368 931,280 3,725,120 982,186 3,928,744 1,016,435 (All) No Limit
650 3  MMF ROBES, DRESSING GOWNS, ETC. SL 42.6 108,174 4,608,212 131,860 5,617,236 120,017 5,112,724 123,498 (All) No Limit
659  -S 3  --Shawls & Scarves SL 14.4 371,347 5,347,397 315,126 4,537,814 343,237 4,942,613
666 3  OTHER MMF FURNISHINGS SL 14.4 3,246,676 46,752,134 3,199,528 46,073,203 3,223,102 46,412,669 3,729,047 -3,223,102 2.57653% 518,981
666  -C 3 CURTAINS SL 14.4 91,889 1,323,202 197,807 2,848,421 144,848 2,085,811 1,352,645 (All) No Limit
669  -P 3  --Bags SL 14.4 1,807,535 26,028,504 2,120,185 30,530,664 1,963,860 28,279,584 2,143,733 (All) No Limit
670  -L 3  --Luggage SL 3.7 16,573,755 61,322,894 16,657,073 61,631,170 16,615,414 61,477,032 17,061,813 (All) No Limit
831 3  GLOVES & MITTENS, SILK & VEG BLEND SL 2.9 464,696 1,347,618 466,875 1,353,938 465,786 1,350,779 615,741 (All) No Limit
833 3  M&B SUIT-TYPE COATS, SLK & VEG SL 30.3 8,018 242,945 21,653 656,086 14,836 449,531 31,294 (All) No Limit
835 3  W&G COATS, SILK & VEG BLENDS SL 34.5 113,672 3,921,684 130,278 4,494,591 121,975 4,208,138 126,713 (All) No Limit
836 3  DRESSES, SILK & VEG BLENDS SL 37.9 318,963 12,088,698 273,328 10,359,131 296,146 11,223,933 298,827 (All) No Limit
840 3  N-KNIT SHIRTS & BLOUSES, SILK&VEG SL 16.7 461,211 7,702,224 453,748 7,577,592 457,480 7,639,916 492,918 (All) No Limit
842 3  SKIRTS, SILK & VEG. BLENDS SL 14.9 241,838 3,603,386 279,927 4,170,912 260,883 3,887,157 282,485 (All) No Limit
847 3  TROUSERS/BREECHES/SHORTS, SILK&VEG SL 14.9 1,356,750 20,215,575 1,549,751 23,091,290 1,453,251 21,653,440 1,285,162 (All) No Limit
349,288,659
Group II 127,329,142 -87,027,167 1.28827% 40,821,172
330 2  COTTON HANDKERCHIEFS G 1.4 2,633,496 3,686,894 2,325,393 3,255,550 2,479,445 3,471,223
349 2  BRASSIERES, OTHER BODY SUPPORT GAR G 4 2,910,235 11,640,940 3,153,083 12,612,332 3,031,659 12,126,636
353 2  M&B DOWN-FILLED COATS G 34.5 14,926 514,947 17,012 586,914 15,969 550,931G/TMB/N/63/ Add.12/Suppl.1
Page 5Category Rest Stage Label Type SMEF 1999 1999 2000 2000 1999-2000 Average 2001 Limit Trade 27% Accel. 2002 Limit
Units SME Units SME Units SME Units Adjustment Growth Rate Units
354 2  W&G DOWN-FILLED COATS G 34.5 3,929 135,551 1,360 46,920 2,645 91,253
359  -B 3  --Body Support Garments G 8.5 3,131 26,614 891 7,574 2,011 17,094
359  -H 3  --Headwear G 8.5 5,322,918 45,244,803 4,364,610 37,099,185 4,843,764 41,171,994
359  -K 3  --Knit Neckwear G 8.5 0 0 285 2,423 143 1,216
359  -M 3  --Martial Arts G 8.5 12,261 104,219 17,489 148,657 14,875 126,438
359  -P 3  --Pantyhose & Tights G 8.5 1,203 10,226 1,494 12,699 1,349 11,467
359  -S 3  --Shawls & Scarves G 8.5 7,657 65,085 41,413 352,011 24,535 208,548
431 3  WOOL GLOVES/MITTENS G 1.8 267,458 481,424 354,354 637,837 310,906 559,631
432 2  WOOL HOSIERY G 2.3 2,903 6,677 5,216 11,997 4,060 9,338
439 2  BABIES' GARMENTS/CLOTHING ACCESS. G 6.3 7,735 48,731 11,741 73,968 9,738 61,349
459  -K 3  --Knit Neckwear G 3.7 0 0 342 1,265 171 633
459  -S 3  --Shawls & Scarves G 3.7 144,897 536,119 491,811 1,819,701 318,354 1,177,910
630 2  MMF HANDKERCHIEFS G 1.4 1,142,120 1,598,968 654,530 916,342 898,325 1,257,655
632 2  MMF HOSIERY G 3.8 178,512 678,346 144,992 550,970 161,752 614,658
653 2  M&B MMF DOWN-FILLED COATS G 34.5 287,455 9,917,198 409,199 14,117,366 348,327 12,017,282
654 2  W&G MMF DOWN-FILLED COATS G 34.5 346,981 11,970,845 416,506 14,369,457 381,744 13,170,168
659 2  --Other G 14.4 7,425 106,920 9,306 134,006 8,366 120,470
659 3  --Other G 14.4 15,425 222,120 14,227 204,869 14,826 213,494
659  -K 3  --Knit Neckwear G 14.4 1,645 23,688 15 216 830 11,952
659  -P 3  --Pantyhose & Tights G 14.4 4,975 71,640 0 0 2,488 35,827
87,027,167
Group III 264,124,797 -216,524,865 1.28827% 48,213,146
222 3  KNIT FABRIC G 12.3 112,515 1,383,935 42,505 522,812 77,510 953,373
223 3  NON-WOVEN FABRICS G 14 46,337 648,718 40,443 566,202 43,390 607,460
229 2  SPECIAL PURPOSE FABRIC G 13.6 538,653 7,325,681 529,440 7,200,384 534,047 7,263,039
369 2  --Other G 8.5 142,029 1,207,247 83,535 710,048 112,782 958,647
369 3  --Other G 8.5 16,933,280 143,932,880 16,047,490 136,403,665 16,490,385 140,168,273
369  -F 3  --FLATGOODS ONLY G 8.5 97,036 824,806 104,329 886,797 100,683 855,806
369  -M 3  --Bar-Mops G 8.5 0 0 12,852 109,242 6,426 54,621
464 3  WOOL BLANKETS G 2.4 18,219 43,726 135,989 326,374 77,104 185,050
465 2  WOOL FLOOR COVERINGS G 1 37,738 37,738 67,374 67,374 52,556 52,556
469 2  OTHER WOOL MANUFACTURES G 3.7 0 0 600 2,220 300 1,110
469 3  OTHER WOOL MANUFACTURES G 3.7 119,503 442,161 169,449 626,961 144,476 534,561G/TMB/N/63/ Add.12/Suppl.1
Page 6Category Rest Stage Label Type SMEF 1999 1999 2000 2000 1999-2000 Average 2001 Limit Trade 27% Accel. 2002 Limit
Units SME Units SME Units SME Units Adjustment Growth Rate Units
600 3  TEXTURED FILAMENT YARN G 6.5 200 1,300 1,080 7,020 640 4,160
606 3  NON-TEXTURED FILAMENT YARN G 20.1 0 0 163 3,276 82 1,648
621 3  IMPRESSION FABRIC G 14.4 2 29 0 0 1 14
622 3  GLASS FIBER FABRIC G 1 878,951 878,951 2,016,608 2,016,608 1,447,780 1,447,780
665 2  MMF FLOOR COVERINGS G 1 463,475 463,475 694,032 694,032 578,754 578,754
669 2  --Other G 14.4 297,843 4,288,939 294,193 4,236,379 296,018 4,262,659
669  -N 3  --Other G 14.4 203,773 2,934,331 291,825 4,202,280 247,799 3,568,306
670  -F 3  --Flatgoods G 3.7 1,915,812 7,088,504 2,145,410 7,938,017 2,030,611 7,513,261
670  -H 3  --Handbags G 3.7 12,423,621 45,967,398 13,259,506 49,060,172 12,841,564 47,513,787
216,524,865
Group IV 12,182,087 -11,818,130 2.57653% 373,334
832 2  HOSIERY, SILK & VEG BLENDS G 3.8 0 0 1,034 3,929 517 1,965
834 3  OTHER M&B COATS, SILK & VEG G 34.5 56,858 1,961,601 33,431 1,153,370 45,145 1,557,503
838 3  KNIT SHIRTS & BLOUSES, SILK & VEG G 11.7 788,399 9,224,268 547,015 6,400,076 667,707 7,812,172
839 2  BABIES' SILK GARM & CLOTH ACCESS G 6.3 40,858 257,405 62,346 392,780 51,602 325,093
843 3  M&B SUITS, SILK & VEG BLENDS G 3.76 800 3,008 0 0 400 1,504
850 3  ROBES, DRESSING GOWNS, ETC, SILK&V G 42.6 268 11,417 254 10,820 261 11,119
851 3  NIGHTWEAR & PJ'S, SILK & VEG G 43.5 1,101 47,894 386 16,791 744 32,364
858 3  NECKWEAR, SILK & VEG BLENDS G 6.6 5 33 123 812 64 422
859 2  --Other G 12.5 186,964 2,337,050 137,011 1,712,638 161,988 2,024,850
859  -B 3  --Bras ... G 12.5 1,028 12,850 46 575 537 6,713
859  -S 3  --Shawls & Scarves G 12.5 4,480 56,000 2,628 32,850 3,554 44,425
11,818,130
Levels Not in Group
870 3  LUGGAGE, SILK & VEG. BLENDS SL 3.7 32,932,191 121,849,107 37,505,508 138,770,380 35,218,850 130,309,745 33,601,090 (All) No Limit
Flex:
CO:  Group limits: 3%, except for Group IV which is 5%.  SLs: 2%.
CF:  Group limits: 2%, except for Group IV which is 3%.  SLs: 3%.
CO/CF Cap:  3% for both Group limits and SLs.
5% Swing to all Group limits, provided it is taken out of another Group limit.
5% Swing to all SLs.
No swing available for categories 315 and 845.
10% between categories 341 and 641.
10% between categories 342 and 642.
(once a yarn-dyed sublimit is established, there will be 10% special swing between categories 340 and 640).
______________