RESTRICTED
WORLD TRADE G/TMB/N/170
16July1996
ORGANIZATION(96-2758)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withSriLanka
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/170
Page2
ThePermanent Mission ofCanada totheUnited Nations
1RueduPré-de-la-Bichette
1202 Geneva
13March 1996
Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Centre William Rappard
154RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
Pursuant toArticle 2.17oftheAgreement onTextiles andClothing, Ihavethehonour tonotify
theAdministrative Arrangements thathave been concluded withthefollowing WTO Members:
Bangladesh,Brazil,CostaRica,Cuba,HongKong,Hungary,India,Indonesia,Korea,Lesotho,Macau,
Malaysia,Mauritius,Pakistan,Philippines,Romania,SlovakRepublic,SriLanka,1Swaziland,Thailand
andUruguay.
Yours sincerely,
(signed) JeanSaint-Jacques
Counsellor
1Thisdocument contains theAdministrative Arrangements withSriLanka. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/170
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada
andtheGovernment oftheDemocratic Socialist Republic ofSriLanka Relating totheExport
from SriLanka ofCertain Textiles andTextile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed uponbetween theGovernment ofCanada andtheGovernment oftheDemocratic Socialist
Republic ofSriLanka, pursuant toArticle 2.17oftheMTN Agreement onTextiles andClothing (ATC)
inorder toimplement thetextiles andclothing restraints between Canada andtheGovernment ofthe
Democratic Socialist Republic ofSriLanka tobenotified pursuant toArticle 2.1oftheATC. These
provisions willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles
andclothing from SriLanka pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasisoftheexport control system operated bytheGovernment oftheDemocratic
Socialist Republic ofSriLanka. Exports ofthetextile products included intherestraints notified under
Article 2.1oftheATC shallbecovered byanoriginal "Export Licence" endorsed andissued bythe
competent authorities oftheGovernment oftheDemocratic Socialist Republic ofSriLanka totheeffect
thatthegoods covered bytheexport licence havebeendebited fromtheapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport fromSriLanka shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheDemocratic Socialist Republic ofSriLanka shallendeavour toensure
thatexports toCanada ofallrestrained textile products arespaced outasevenly aspossible during
eachrestraint period, dueaccount being taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment oftheDemocratic Socialist Republic ofSriLanka
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) ItemnumberanddescriptionofproductascontainedinthenotificationunderArticle2.1
oftheATC;
(g) Quantity expressed intheunitsdesignated foreachproduct inthenotification under
Article 2.1oftheATC. Ifmore thanonesetofmeasures isestablished, allshould
beindicated. Where thequantity isexpressed other thanasdesignated, theequivalent
weight, unitsorm2should becalculated inaccordance withtheconversion factors set
outintherestraint notified under Article 2.1oftheATC;G/TMB/N/170
Page4
(h) F.O.B. orC.I.F. value except fornon-commercial consignments;
(i) CertificationbythecompetentauthoritiesoftheGovernmentoftheDemocraticSocialist
Republic ofSriLanka thatthequantity hasbeendebited fromtheagreed restraint limit
forexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped oranypartofitis
returned regardless ofthereason, theGovernment oftheDemocratic Socialist Republic ofSriLanka
shallnotify theGovernment ofCanada ofsuchquantity which maybecredited bytheGovernment
oftheDemocratic Socialist Republic ofSriLanka totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (Swing andCarryover/Carry Forward),
theGovernment oftheDemocratic Socialist Republic ofSriLanka shallrestrain itsexports toCanada
ofthetextile products notified pursuant toArticle 2.1oftheATCtothelimits notified under Article 2.1
oftheATC, asmodified bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant
toArticle 4.1oftheATC, itisunderstood thattheGovernment ofCanada shallnotbeobliged toaccept
shipments inexcess oftherestraint levels notified under Article 2.1oftheATC, asmodified bythe
provisions ofArticles 2.7,2.8,2.13, 2.14and2.18oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofthe
Democratic Socialist Republic ofSriLanka mayexceed thespecified annual quantitative limitupto
thepercentage specified intherestraint notification under Article 2.1oftheATC, provided thatan
equivalent amount isdeducted from anyother restraint level. When anyrestraint limitisexceeded
bytheapplication ofswing, theGovernment oftheDemocratic Socialist Republic ofSriLanka shall
soindicate 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.G/TMB/N/170
Page5
Exchange ofStatistics
12. TheGovernmentoftheDemocraticSocialistRepublicofSriLankashallprovidetheGovernment
ofCanada withmonthly statistical reports relating toexports ofrestrained textile products, licensed
forexport toCanada anddebited fromthequantitative limits foreachrestraint period. These statistics
shallinclude thefollowing information:
(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;
(c) Total quantity issued fortherestraint period todate;
(d) Notification ofanyutilization ofswing, carryover orcarry forward provisions and
thequantities involved asprovided forinparagraphs 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
13. TheGovernment ofCanada shallprovide theGovernment oftheDemocratic Socialist Republic
ofSriLanka withmonthly statistical reports relating toimport permits issued forimports originating
intheGovernmentoftheDemocraticSocialistRepublicofSriLankaoftextileproductslistedinAnnexI.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from theGovernment oftheDemocratic
Socialist Republic ofSriLanka.
Re-Exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheDemocratic
Socialist Republic ofSriLanka when imports intoCanada ofrestrained textile products aresubsequently
re-exported from Canada. Where suchre-exports haveoriginally beendebited bytheGovernment
oftheDemocratic Socialist Republic ofSriLanka from quantitative limits, theGovernment ofthe
Democratic Socialist Republic ofSriLanka maythencredit backthequantity involved totheappropriate
quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment oftheDemocratic Socialist Republic of
SriLanka andtheGovernment ofCanada express theirwillingness toconsult, onrequest, onanymatter
arising fromtheimplementation oroperation oftheATC orofthisMOU oronanymatter germane
thereto.
Final Provision
ThisMOU willbecome effective onthedatethatbothSriLanka andCanada accede tothe
WTO. Flexibility provisions, i.e.swing, carryover andcarry forward, applicable torestrictions
maintained pursuant toArticle 2oftheATC, shallbethesame asthose provided forinMFA bilateral
agreementsforthe12monthperiodpriortotheentryintoforceoftheWTOAgreement.Noquantitative
limits shallbeplaced ormaintained onthecombined useofswing, carryover andcarry forward. It
isunderstood thattextile andtextile products integrated intoGATT 1994inaccordance toArticles 2.6,G/TMB/N/170
Page6
2.7or2.8oftheATC willbedeleted fromthesaidAnnex I-Restraint Levels andtherefore nolonger
subject toswing, carryover andcarry forward.
(signed) (signed)
FortheGovernment of FortheGovernment of
theDemocratic Socialist Republic ofSriLanka Canada
Colombo, 22December 1994G/TMB/N/170
Page7ANNEX I-RESTRAINT LEVELS (PHASE I)
SRILANKA
GROUP I
(A)
Agreement
ItemNo.(B)
Product Coverage(C)
1995
Restraint Level
(NMB)(D)
Growth(E)
Swing(F)
Carryover/
Carry Forward(G)
Combined
Flexibility (E)&(F)(H)
Conversion Factor
(m2/unit)Category Short Description
01 1.0 Coats, jackets &rainwear 854,515 7.5% 7% 11%(6%) - 1.4
ofwhich
1a 1.1 Coats 102,555 7.5% 7% 11%(5%) - 5.0
02 2.0 Winter outerwear 193,855 7.5% 7% 11%(6%) - 3.2
03/04 3.0 Male casual &finewear 744,167 7.5% 7% 11%(6%) - 3.5
4.0 Female casual &finewear
ofwhich
03/04A 3.1 Finesuits 22,790 7.5% 7% 11%(6%) - 3.8
05 5.0 Trousers, overalls &shorts 769,043 7.5% 7% 11%(6%) - 1.9
06 6.0 Tailored collar shirts, MBC 686,254 7.5% 7% 11%(6%) - 1.7
07/08 7.0 Woven shirts, blouses &similar
articles;1,361,110 7.5% 7% 11%(6%) - 1.5
8.0 Athletic wear (K/C) shirtblouses &
similar articles
T-shirts &sweatshirts
ofwhich
07/08A 7.0 Woven shirts, blouses &similar
articles599,024 7.5% 7% 11%(6%) - 1.5
8.1 K/CShirts, blouses &similar
articles
09 9.0 Underwear 1,018,227 7.5% 7% 11%(6%) - 0.5
10 10.0 Sleepwear &bathrobes 569,750 7.5% 7% 11%(6%) - 2.0
11 11.0 Sweaters 271,254 7.5% 7% 11%(6%) - 1.2
12 12.0 Swimwear 569,750 7.5% 7% 11%(6%) - 1.3
14 14.0 Babies 'garments 284,875 7.5% 7% 11%(6%) - 0.7G/TMB/N/170
Page8ANNEX I-RESTRAINT LEVELS (PHASE I)
SRILANKA
GROUP II
(A)
Agreement
ItemNo.(B)
Product Coverage(C)
1995
Restraint Level
(unit)(D)
Growth(E)
Swing(F)
Carryover/
Carry Forward(G)
Combined
Flexibility (E)&(F)(H)
Conversion Factor
(m2/unit)Category Short Description
41A 41.1 Bedsheets 593,130 7.5% 7% 11%(6%) - 5.2
Note: Noswing between products inGroup Iandproducts inGroup II.