RESTRICTED
WORLD TRADE G/TMB/N/160
16July1996
ORGANIZATION(96-2751)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withIndonesia
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/160
Page2
ThePermanent Mission ofCanada
totheUnited Nations
1ruedePré-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,India,Indonesia1,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 Genevea
1Thisdocument contains theAdministrative Arrangements withIndonesia. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/160
Page3
Memorandum ofUnderstanding Between theGovernment ofCanada and
theGovernment oftheRepublic ofIndonesia Relating totheExport
from Indonesia ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed upon between theGovernments ofCanada andtheRepublic ofIndonesia, pursuant to
Article 2.17oftheMTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextile
andclothing restraints between Canada andtheRepublic ofIndonesia tobenotified pursuant to
Article 2.1oftheATC. These provisions willalsoapply withrespect toanyrestraint introduced by
Canada onimports oftextiles andclothing from Indonesia pursuant totheprovisions ofArticle 6of
theATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment oftheRepublic
ofIndonesia. Exports ofthetextile products included intherestraints notified under Article 2.1of
theATC shallbecovered byanoriginal "Certificate ofOrigin" (Form K)endorsed andissued bythe
competent authorities ofIndonesia totheeffect thatthegoods covered bytheCertificate havebeen
debited from theapplicable quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport fromIndonesia shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment oftheRepublic ofIndonesia shallendeavour toensure thatexports toCanada
ofallrestrained textile products arespaced outasevenly aspossible during eachrestraint period, due
account being taken ofseasonal factors andofnormal channels oftrade.
5. Certificates issued bytheGovernment oftheRepublic ofIndonesia 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 intheunits designated foreachproduct inthenotification under
Article 2.1oftheATC. Ifmore thanonesetofmeasures isestablished, allshould
beindicated; where thequantity isexpressed other thanasdesignated, theequivalent
weight, unitsorsquare metres should becalculated inaccordance withtheconversion
factors setoutintherestraint notified under Article 2.1oftheATC;G/TMB/N/160
Page4
(h) f.o.b. orc.i.f. value except fornon-commercial consignments;
(i) certification bythecompetent authorities ofIndonesia thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byaCertificate ofOrigin isnotshipped, theGovernment
oftheRepublic ofIndonesia shallnotify theGovernment ofCanada ofsuchquantity which maybe
credited bytheGovernment oftheRepublic ofIndonesia totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government oftheRepublic ofIndonesia shallrestrain itsexports toCanada ofthetextile products
notified pursuant toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, as
modified bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1
oftheATC, itsisunderstood thattheGovernment ofCanada shallnotbeobliged toaccept shipments
inexcess oftherestraint 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
Republic ofIndonesia mayexceed thespecified annual quantitative limituptothepercentage specified
intherestraint notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted
fromanyother restraint level. When anyrestraint limitisexceeded bytheapplication ofswing, the
Government oftheRepublic ofIndonesia 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 oftheRepublic ofIndonesia shallprovide theGovernment ofCanada with
monthly statistical reports relating toexports ofrestrained textile products, licensed forexport toCanada
anddebited from thequantitative limits foreachrestraint period. These statistics shallinclude the
following information:
(a) Itemnumber anddescription;G/TMB/N/160
Page5
(b) original andadjusted restraint limits fortherestraint period;
(c) totalquantity issued fortherestraint period todate;
(d) notification ofanyutilization ofswing, carryover orcarry forward provisions andthe
quantities involved asprovided forinparagraph 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
13. TheGovernment ofCanada shallprovide theGovernment oftheRepublic ofIndonesia with
monthly statistical reports relating toimport permits issued forimports originating inIndonesia oftextile
products listed inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablerequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Indonesia.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheRepublic
ofIndonesia when imports intoCanada ofrestrained textile products aresubsequently re-exported from
Canada. Where suchre-exports haveoriginally beendebited bytheGovernment oftheRepublic of
Indonesia fromquantitative limits, theGovernment oftheRepublic ofIndonesia maythencredit back
thequantity involved totheappropriate quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment oftheRepublic ofIndonesia andthe
Government ofCanada express theirwillingness toconsult, onrequest, onanymatter arising from
theimplementation oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed) _______________________ (Signed) _________________________
FortheGovernment ofthe FortheGovernment ofCanada
Republic ofIndonesia
Jakarta
14March 1995G/TMB/N/160
Page6
ANNEX I-RESTRAINT LEVEL
INDONESIA
Group I
(A)
Agreement
Item
No.(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
1 1.0 Coats, jackets &rainwear 708,220 6.96% 7% 10%(5%) - 3.5
2 2.0 Winter outerwear 149,253 6.96% 7% 10%(5%) - 3.2
3a 3.2 Ensembles, MBC 294,406 6.96% 7% 10%(5%) - 3.5
4 4.0 Female casual &finewear 1,272,344 6.96% 7% 10%(5%) - 3.5
5a 5.1*-5.3*
5.5*Trousers, MBWGC;
Shorts1,713,705 6.96% 7% 10%(5%) - 1.7
6 6.0 Tailored collar shirts, MBC 1,122,287 6.96% 7% 10%(5%) - 1.8
7/8 7.0
8.0Woven shirts, blouses &
similar articles
Athletic wear, (k/c) shirts,
blouses &similar articles,
T-shirts &sweatshirts 5,151,474 6.96% 7% 10%(5%) - 1.6
7/8a 8.4ofwhich:
Athletic wear 102,493 6.96% 7% 10%(5%) - 1.6
9 9.0 Underwear 1,121,811 6.96% 7% 10%(5%) - 0.5
10 10.0 Sleepwear &bathrobes 1,081,916 6.96% 7% 10%(5%) - 2.0
11 11.0*Sweaters 1,274,005 6.96% 7% 10%(5%) - 1.2
14Note 114.0 Babies 'garments 389,108 6.96% 7% 10%(5%) - 0.7
*Includes extended fibrecoverage.
Note 1:Babies 'garments expressed inadult units.