RESTRICTED
WORLD TRADE G/TMB/N/169
16July1996
ORGANIZATION(96-2757)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withtheSlovak Republic
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/169
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,1SriLanka,Swaziland,Thailand
andUruguay.
Yours sincerely,
(signed) JeanSaint-Jacques
Counsellor
1ThisdocumentcontainstheAdministrativeArrangementswiththeSlovakRepublic.Arrangementsconcluded
withtheother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/169
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada
andtheGovernment oftheSlovak Republic Relating totheExport
from theSlovak Republic ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed uponbetween theGovernments ofCanada andtheSlovak Republic, pursuant toArticle 2.17
oftheMTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andtheSlovak Republic tobenotified pursuant toArticle 2.1oftheATC.
These provisions willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles
andclothing from theSlovak Republic pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment ofthe
Slovak Republic. Exports ofthetextile products included intherestraints notified under Article 2.1
oftheATC shallbecovered byanoriginal "Export Licence" endorsed andissued bythecompetent
authorities oftheSlovak Republic totheeffect thatthegoods covered bytheexport licence havebeen
debited from theapplicable quantitative limit.
3. Forthepurposeofimplementingthesearrangements,thedateofexportfromtheSlovakRepublic
shallbeusedtodeterminetherestraintperiodinwhichanyshipmentsoftextileproductsshallbecounted.
4. TheGovernment oftheSlovak Republic shallendeavour toensure thatexports toCanada of
allrestrained textile products arespaced outasevenly aspossible during eachrestraint period, due
account being taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment oftheSlovak Republic 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;
(h) F.O.B. orC.I.F. value except fornon-commercial consignments;G/TMB/N/169
Page4
(i) Certification bythecompetent authorities oftheSlovak Republic thatthequantity has
beendebited from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
oftheSlovak Republic shallnotify theGovernment ofCanada ofsuchquantity which maybecredited
bytheGovernment oftheSlovak Republic totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (Swing andCarryover/Carry Forward),
theGovernment oftheSlovak Republic shallrestrain itsexports toCanada ofthetextile products notified
pursuant toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, asmodified
bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1oftheATC,
itisunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments inexcess of
therestraint levels 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 ofthe
Slovak Republic mayexceed thespecified annual quantitative limituptothepercentage specified in
therestraint notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted
fromanyother restraint level. When anyrestraint limitisexceeded bytheapplication ofswing, the
Government oftheSlovak Republic 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 oftheSlovak Republic shallprovide theGovernment ofCanada withmonthly
statistical reports relating toexports ofrestrained textile products, licensed forexport toCanada and
debited fromthequantitative limits foreachrestraint period. These statistics shallinclude thefollowing
information:
(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;G/TMB/N/169
Page5
(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 oftheSlovak Republic withmonthly
statistical reports relating toimport permits issued forimports originating intheSlovak Republic of
textile products listed inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from theSlovak Republic.
Re-Exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheSlovak
Republic when imports intoCanada ofrestrained textile products aresubsequently re-exported from
Canada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheSlovak Republic
from quantitative limits, theGovernment oftheSlovak Republic maythencredit backthequantity
involved totheappropriate quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment oftheSlovak Republic andtheGovernment
ofCanadaexpresstheirwillingnesstoconsult,onrequest,onanymatterarisingfromtheimplementation
oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(signed) (signed)
FortheGovernment of FortheGovernment of
Canada theSlovak Republic
Ottawa, Canada
17May1995G/TMB/N/169
Page6
ANNEX I-RESTRAINT LEVELS 1995
SLOVAK REPUBLIC
GROUP I
(A)
Agreement
ItemNo.(B)
Product Coverage(C)
1995
Restraint
Level (unit)(D)
Growth(E)
Swing(F)
Carryover/
Carry Forward(G)
Conversion
Factor
(m2/unit)Category Short
Description
3a(Note 1) 3.1
3.3Suits, MB;
Jackets and
Blazers, MB74,773 5% 7% 10%(5%) 3.6
5 5.0 Trousers,
overalls &
shorts224,673 7.5% 7% 10%(5%) 1.4
Note 1:HScodes forCareexcluded forcategories 3.1&3.3.G/TMB/N/169
Page7
ANNEX I-RESTRAINT LEVELS 1995
SLOVAK REPUBLIC
GROUP II
(A)
Agreement
ItemNo.(B)
Product Coverage(C)
1995
Restraint
Level (KG)(D)
Growth(E)
Swing(F)
Carryover/
Carry Forward(G)
Conversion
Factor
(m2/unit)Category Short
Description
31a 31.1 Combed
wool fabric89,905 3.75% 7% 10%(5%) 3.8
42a 42.1 Toilet &
kitchen
linen, cotton
terry, woven6,240 7.5% 7% 10%(5%) 2.8
Note: Noswing between products inGroup IandGroup II.