WORLD TRADE
ORGANIZATIONG/TMB/N/440
14 June 2002
(02-3306)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.17
CANADA
Administrative Arrangements with China
The Textiles Monitoring Body has received a notification from Canada pursuant to
paragraph 17 of Article 2.  The TMB is circulating this notification to WTO Members for theirinformation.G/TMB/N/440
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The Permanent Mission of Canada
to the United Nations
27 March 2002
Mr. András Szepesi
ChairmanTextiles Monitoring Body
World Trade Organization
Centre William Rappard
Rue de Lausanne 154
CH-1211 Genève 21
Dear Mr. Szepesi,
Pursuant to Article 2.17 of the Agreement on Textiles and Clothing (ATC), I have the honour
to notify Canada’s administrative arrangements with China.  These arrangements are contained in the
attached "Administrative Memorandum of Understanding".
Yours sincerely,
(Signed)
A. R. (Sandy) Moroz
Counsellor
AttachmentG/TMB/N/440
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ADMINISTRATIVE MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF CANADA
AND
THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA
RELATING TO THE EXPORT
FROM CHINA OF
CERTAIN TEXTILE AND APPAREL PRODUCTS
TO CANADAG/TMB/N/440
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ADMINISTRATIVE MEMORANDUM OF UNDERSTANDING BETWEEN THE
GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE PEOPLE’S
REPUBLIC OF CHINA RELATING TO THE EXPORT FROM CHINA OF
 CERTAIN TEXTILE AND APPAREL PRODUCTS TO CANADA.
Introduction
1. This Administrative Memorandum of Understa nding (AMOU) sets out the administrative
arrangements that have been agreed upon between the Governments of Canada and China, pursuant to
Article 2.17 of the WTO Agreement on Textiles and Clothing (ATC) in order to implement thetextiles and clothing restraints between Canada and China to be notified pursuant to Article 2.1 of the
ATC.
Implementation
2. In accordance with the provisions of Article 4.1 of the ATC, these arrangements shall be
implemented on the basis of the export control system operated by the Government of the People’s
Republic of China.  Exports of the textile and apparel products included in the restraints notified
under Article 2:1 of the ATC shall be covered by an original 1 st copy of the Export Licence endorsed
and issued by the competent authorities of China to the effect that the goods covered by the export
licence have been debited from the applicable quantitative limit.
3. For the purpose of implementing these arrangements, the date of export from China shall be
used to determine the restraint period in which any shipments of textile products shall be counted.
4. Export licences issued by the Government of the People’s Republic of China in respect of
restrained textile products shall contain the following information:
(a) Country of destination;
(b) country of origin;
(c) licence number;
(d) importer's name and address;
(e) exporter's name and address;
(f) item number and description of product as contained in the notification under
Article 2.1 of the ATC;
(g) quantity expressed in the units designated for each product in the notification under
Article 2.1 of the ATC.  If more than one set of measures is established, all should be
indicated;  where the quantity is expressed other than as designated, the equivalent
weight, units or m 2 should be calculated in accordance with the conversion factors set
out in the restraint notified under Article 2.1 of the ATC;
(h) f.o.b. or c.i.f. value except for non-commercial consignments;
(i) certification by the Government of the People’s Republic of China that the quantity
has been debited from the agreed restraint limit for exports to Canada, or whereG/TMB/N/440
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appropriate, is for immediate re-export or for inward processing and subsequent
re-export from Canada.
5. In the event that any quantity covered by an export licence is not shipped, the Government of
the People’s Republic of China shall notify the Government of Canada of such quantity which may be
credited by the Government of the People’s Republic of China to the appropriate restraint limit.
6. Except as provided for in paragraphs 8 to 11 below (Swing and Carry-Over/Carry-Forward),
the Government of the People’s Republic of China shall restrain its exports to Canada of the textile
and apparel products notified pursuant to Article 2.1 of the ATC to the limits notified under
Article 2.1 of the ATC, as modified by the provisions of Article 2.7, 2.8, 2.13 and 2.14 of the ATC.
Pursuant to Article 4.1 of the ATC, it is understood that the Government of Canada shall not be
obliged to accept shipments in excess of the restraint levels notified under Article 2.1 of the ATC, as
modified by the provisions of Article 2.7, 2.8, 2.13 and 2.14 of the ATC.
Swing
7. Subject to the specific limitations contained in the restraint notification under Article 2.1 of
the ATC, and following notification to the appropria te Canadian authorities, the Government of the
People’s Republic of China may exceed the specified annual quantitative limit up to the percentagespecified in the restraint notification under Article 2.1 of the ATC, provided that an equivalent amount
is deducted from any other restraint level.  When an y restraint limit is exceeded by the application of
swing, the Government of the People’s Republic of China shall so indicate in subsequent monthly
statistical reports.
8. For the purpose of implementing the swing provisions in paragraph 7, the conversion factors
specified in the restraint notification under Article 2.1 of the ATC shall apply.
Carryover/Carry forward
9. Following notification to the Government of Canada of the quantities involved, portions of
any quantitative limit which are not used during the annual restraint period may be carried over andadded to the corresponding quantitative limit for the following annual restraint period.  The restraint
limit for any such restraint period shall be increased  within the percentage limits specified in the
restraint notification under Article 2.1 of the ATC.
10. Following notification to the Government of Canada of the quantities involved, any restraint
limit may be increased within the percentage limits specified in the restraint notification under
Article 2.1 of the ATC by a quantity advanced from the corresponding restraint limit for the following
annual restraint period.  The restraint limit for any such following restraint period shall be reduced bya quantity equal to the quantity so advanced.
Exchange of statistics
11. The Government of the People’s Republic of China and the Government of Canada shall
exchange electronic statistical reports relating to exports of restrained textile and apparel productslicensed for export to Canada in accordance with the Agreed Minute on Electronic Visa Information
System signed 26 February 1997.
12. Both Governments reserve the right to request additional statistics as may be reasonably
required, including statistics relating to the export or import of products not contained in thenotification, under Article 2.1 of the ATC, of Canada`s restraints on imports from China.G/TMB/N/440
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Re-exports
13. The Government of Canada shall, so far as possible, inform the Government of the People’s
Republic of China when imports into Canada of restrained textile and apparel products aresubsequently re-exported from Canada.  Where such re-exports have originally been debited by the
Government of the People’s Republic of China from quantitative limits, the Government of the
People’s Republic of China may then credit back the quantity involved to the appropriate quantitative
limits.
Consultations
14. Pursuant to Article 8.4 of the ATC, the Government of the People’s Republic of China and
the Government of Canada express their willingness to consult, on request, on any matter arising from
the implementation or operation of the ATC or of this AMOU or on any matter germane thereto.G/TMB/N/440
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ANNEX – RESTRAINT LEVELS
CHINA
GROUP I
(B)
Product Coverage(A)
Agreement
Item No.Category Short Description(C)
2002
Restraint
Level (unit)(D)
Growth(E)
Swing(F)
Carry-over/
Carry
Forward(G)
Combined
Flexibility
(E) & (F)(H)
Conversion
Factor
(m2/unit)
1a 1.2 Jackets 1,826,742 7.94% 6% 10%(5%) -- 3.5
1b 1.1 Coats 818,280 7.94% 6% 10%(5%) -- 5.0
2 2.0 Winter outerwear 615,969 6.35% 7% 10%(5%) -- 3.5
2a 2.0 Quilted shirt-like
garments withtailored collar,MBC274,000 6.35% 6.5% 8%(5%) -- 2.7
3a 3.1
3.3Suits, MBC;
Jackets &
blazers, MBC376,345 9.52% 7% 11%(5%) -- 4.4
3/4a 3.2
4.2Ensembles,
MBC;
Jackets &
blazers, WGC4,777,156 9.52% 7% 11%(5%) -- 4.4
4b 4.3
4.4Dresses;
Skirts2,810,999 9.52% 7% 11%(5%) -- 3.0
5 5.0* Trousers,
coveralls & shorts17,287,958 6.35% 5% 10%(5%) -- 1.9
5a 5.1*
5.2*- of which:
Trousers, MB;Trousers, WG14,343,763 7.94% 7% 11%(5%)-
-- 1.9
7/8a 8.2
8.3T-shirts;
Sweatshirts13,608,135 6.35% 6% 10%(5%) -- 1.7
8c 8.4 Athletic wear 7,626,802 9.52% 7% 11%(5%) -- 3.5
9 9.0 Underwear 5,899,198 9.52% 7% 11%(5%) -- 0.8
10 10.0 Sleepwear &
bathrobes5,316,183 7.94% 7% 11%(5%) -- 3.4
11 11.0* Sweaters 3,249,252 4.76% 6% 10%(5%) -- 1.4
13 13.0 Foundation
garments (NMB)2,476,144 9.52% 7% 11%(5%) -- 0.3
*Includes silk not more than 70% by weight or other vegetable fibres not more than 85% by weight.G/TMB/N/440
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ANNEX – RESTRAINT LEVELS
CHINA
GROUP II
(B)
Product Coverage(A)
Agreement
Item No.Category Short Description(C)
2002
Restraint
Level (KGM)(D)
Growth(E)
Swing(F)
Carry-over/
Carry
Forward(G)
Combined
Flexibility
(E) & (F)(H)
Conversion
Factor
(m2/unit)
31a 31.1 Combed wool fabric 284,523 4.76% - 10%(5%) -- 4.75
32a 32.2 Cotton, fabric,
finished3,368,166 5.55% 10% 10%(10%) -- 5.1
36 36 Poly/cotton fabric 10,162,812 6.35% 10% 10%(10%) -- 7.2
36a 36.2- of which:
Poly/cotton fabric,
finished4,812,531 5.55% 10% 10%(10%) -- 7.2
41a 41.1 Bed sheets (NMB) 3,202,148 9.52% 7% 10%(5%) -- 6.25
41b 41.2 Pillow cases (NMB) 6, 404,292 9.52% 7% 10%(5%) -- 1.25
42a 42.1 Toilet & kitchen
linen, cotton terry,woven3,313,640 9.52% 7% 10%(5%) -- 3.4
43 43 Hosiery (PAR) 9,706,456 9.52% 7% 10%(5%) -- 0.05
Note:  No swing between products in Group I and products in Group II.
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