RESTRICTED
WORLD TRADE G/TMB/N/159
16July1996
ORGANIZATION(96-2750)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withIndia
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/159
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,Hungary,India1,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 withIndia. Arrangements concluded withthe
other WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/159
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Memorandum ofUnderstanding Between theGovernment ofCanada
andtheGovernment ofIndia Relating totheExport from
India ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed uponbetween theGovernments ofCanada andIndia, pursuant toArticle 2.17oftheMTN
Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing restraints
between Canada andIndia tobenotified pursuant toArticle 2.1oftheATC. These provisions will
alsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles andclothing from
India pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasisoftheexport control system operated bytheGovernment ofIndia. Exports
ofthetextile products included intherestraints notified under Article 2.1oftheATC shallbecovered
byanoriginal "Export Licence" endorsed andissued bythecompetent authorities ofIndiatotheeffect
thatthegoods covered bytheexport licence havebeendebited fromtheapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport from India
(i.e.consignment tothecarrier) willbeusedtodetermine within which restraint period anytextiles
ortextile products willbecounted.
4. TheGovernment ofIndia 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 ofIndia 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/159
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(h) F.o.b. orc.i.f. value except fornon-commercial consignments;
(i) Certification bythecompetent authorities ofIndia thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport certificate isnotshipped, oranypartof
itisreturned, regardless ofthereason, theGovernment ofIndiawillnotify theGovernment ofCanada
ofsuchquantities which maybecredited bytheGovernment ofIndiatotheappropriate restraint level.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government ofIndia shallrestrain itsexports toCanada ofthetextile products notified pursuant to
Article 2.1oftheATCtothelimits notified under Article 2.1oftheATC, asmodified bytheprovisions
ofArticles 2.7,2.8,2.13and2.14oftheATC.
Swing
8. Subject tothespecific limitations contained intherestraint notification under Article 2.1of
theATC, andfollowing notification totheappropriate Canadian authorities, theGovernment ofIndia
mayexceed thespecified annual quantitative limit uptothepercentage specified intherestraint
notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted from any
other restraint level. When anyrestraint limitisexceed bytheapplication ofswing, theGovernment
ofIndia shallsoindicate 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.
Exchange ofstatistics
12. TheGovernment ofIndia shallprovide theGovernment ofCanada withmonthly statistical
reports relating toexports ofrestrained textile products, licensed forexport toCanada anddebited
from thequantitative limits foreachrestraint period. These statistics shall include thefollowing
information:
(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;
(c) Total quantity issued fortherestraint period todate;G/TMB/N/159
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(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 ofIndia withmonthly statistical
reports relating toimport permits issued forimports originating inIndia oftextile products listed in
Annex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from India.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment ofIndia when
imports intoCanada ofrestrained textile products aresubsequently re-exported fromCanada. Where
suchre-exports haveoriginally beendebited bytheGovernment ofIndia fromquantitative limits, the
Government ofIndia maythencredit backthequantity involved totheappropriate quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment ofIndia andtheGovernment ofCanada
express theirwillingness toconsult, onrequest, onanymatter arising from theimplementation or
operation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed) ___________________________ (Signed) _________________________
FortheGovernment ofCanada FortheGovernment ofIndia
Ottawa
2March 1995G/TMB/N/159
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ANNEX I-RESTRAINT LEVELS (PHASE I)
INDIA
GROUP I
(A)
Agreement
Item
No.(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
A Clothing (MTK) 28,517,414 6.96% 7% 11%(6%) - -
1a 1.2 Jackets 587,424* 6.96% 7% 11%(6%) - 3.0
2 2.0 Winter outerwear 645,402* 6.96% 7% 11%(6%) - 3.5
3a 3.2 Ensembles, MBC * 2.7
4 4.0 Female casual &fine
wear* 2.7
5 5.0 Trousers, overalls &
shorts923,895* 6.96% 7% 11%(6%) - 1.6
6 6.0 Tailored collar shirts 2,893,753* 6.96% 7% 11%(6%) - 1.7
7 7.0 Woven shirts, blouses &
similar articles* 1.3
8a 8.1,
8.3,
8.4Athletic wear, (k/c)
shirts, blouses &similar
articles, &sweatshirts* 1.3
8b 8.2 T-shirts * 1.0
9 9.0 Underwear (MBWGC) 5,348,000 6.96% 7% 11%(6%) - 0.5
*Within group limit, Agreement ItemNo.A.
GROUP II
(A)
Agreement
Item
No.(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
31a 31.1 Combed wool fabric
(MTK)1,242,452 6.96% 6% 11%(6%) - 4.0m2/KGM
41a 41.1 Bedsheets (NMB) 953,274 6.96% 7% 11%(6%) - 6.25m2/NMB
32a 32.3 Denim Fabrics (KG) 1,940,458 6.96% 7% 11%(6%) - 2.0m2/KGM