WORLD TRADE G/TMB/N/267
22July1997
ORGANIZATION(97-2990)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withCosta Rica
TheTextiles Monitoring Body hasreceived anotification fromtheUnited States pursuant to
paragraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheir
information.G/TMB/N/267
Page2
Executive Office ofthePresident
Office oftheUnited States Trade Representative
28February 1997
TheHonourable Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
AttachedyouwillfindmyGovernment'snotificationofAdministrativeArrangementsforBrazil,
Colombia, Costa Rica1,Fiji,Haiti, Hungary, India, Indonesia, Korea, Macau, Malaysia, Philippines,
Qatar,Romania,SriLanka,Thailand,UAEandUruguaymadepursuanttoArticle2.17oftheAgreement
onTextiles andClothing.
Sincerely,
(signed) Ambassador RitaHayes
Chief Textile Negotiator
1This document contains theAdministrative Arrangements concluded withCosta Rica. Administrative
Arrangements concluded withtheother Members listed above willbecirculated asseparate documents.
Note: Annex Areferred tointhetextcontains thelistofrestrictions notified bytheUnited States pursuant to
Article 2.1andassuch itisnotpartoftheAdministrative Arrangements.G/TMB/N/267
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COSTA RICA
Thefollowing provisions aredrawn from theUnited States -Costa Ricabilateral textile and
apparel agreement of20March 1992 andtheMemorandum ofUnderstanding of23December 1993
andhavebeenagreed tobenecessary fortheproper implementation ofrestrictions notified totheTextile
Monitoring Body under Article 2.1oftheAgreement onTextiles andClothing.
Flexibility Adjustments
7.(A) (I) Thespecific limits setoutinAnnex Adonotinclude anyadjustments permitted under
paragraph 7.
(II) During anyagreement period, thespecific limits setoutinAnnex Amaybeincreased
bynotmore thanseven percentswing, except forcategory 347/348 which mayreceive
7.5percentswing, provided thatacorresponding reduction insquare meters equivalent
ismade inoneormore other specific limits during thesameagreement period. Swing,
ifavailable, isadditional toother available carryover and/or carry forward.
(III) Nospecific limits maybedecreased pursuant toparagraph 7(a)(II)toalevelwhich
isbelow thelevelofexports charged against thatcategory 'slimitforthatagreement
period.
(IV) TheGovernment ofCosta Ricashallindicate totheGovernment oftheUnited States
thespecific limits itwould likeincreased andthose which itwould likedecreased by
commensurate quantities insquare meter equivalents.
(B) (I) Theextent towhich anyspecific limitsetoutinAnnex Amaybeexceeded inany
agreement period bycarry forward (borrowing aportion ofthecorresponding specific
limitfromthesucceeding agreement period) and/or carryover (theuseofanyunused
meterage (shortfall) ofthecorresponding specific limit fortheprevious agreement
period) is11percent,ofwhich carry forward shallnotconstitute morethan6percent.
(II) Nocarryover shallbeavailable forapplication inthefirstagreement period. Nocarry
forward shallbeavailable forapplication inthefinalagreement period.
(C) Forthepurposes oftheAgreement, ashortfall occurs when exports oftextiles ortextile products
ofCosta RicatotheUnited States during anyagreement period arebelow anyspecific limit
assetoutinAnnex A(or,inthecaseofanylimitdecreased pursuant toparagraph 7,when
suchexports arebelow thelimitasdecreased).
(D) TheGovernment ofCosta Ricawillnotify theGovernment oftheUnited States when itwishes
touseunused meterage (shortfall) available incategories forcarryover, orforusebyother
categories forcarry forward, subject totheprovisions setoutabove. Totheextent thatsuch
adjustments areactually utilized, theywillbeimplemented bymeans ofcarryover andcarry
forward, inthatorder. Anyunused carry forward willbere-credited tothefollowing period 's
limit. Thisprocedure willnotprejudice theoutcome ofanyconsultations thatmaybeheld
between ourGovernments concerning theamounts ofavailable carryover andcarry forward.G/TMB/N/267
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Overshipment Charges
9.(A) Products ofCosta Ricashipped inexcess ofauthorized limits inanyagreement period may
bedenied entry intotheUnited States. Anysuchshipment denied entry maybepermitted
intotheUnited States andcharged totheapplicable limitinthesucceeding agreement period.
(B) Products ofCosta Ricashipped inexcess ofapplicable limits inanyagreement period will,
ifallowed entryintotheUnited States during thatagreement period, becharged totheapplicable
limitinthesucceeding agreement period.
(C) Anyaction taken pursuant tosubparagraph 9(A)and9(B)above, willnotprejudice therights
oftheother sideregarding consultations.
(D) TheUnited States Government willnotify theGovernment ofCosta Ricawhen thequota fill
ratereaches 95percent. IftheGovernment ofCosta Ricafindsthatthereisadatadiscrepancy
between theUnited States Government dataandtheGovernment ofCosta Rican export data,
theGovernment ofCosta Ricawillrequest consultations. TheUnited States Government agrees
toconsult aspromptly aspossible toresolve anydataerrors. When themerchandise entered
against thequota reaches alevelwhere thequota canbefilled, theUnited States Government
agrees toofferanadditional twoworking daysbefore finalizing theclosure ofthecategory.
Spacing Provisions
10. TheGovernment ofCosta Ricashalluseitsbestefforts tospace exports ofitsproducts tothe
United States within eachcategory, subcategory orpartcategory evenly throughout eachagreement
period, taking intoconsideration normal seasonal factors.
USAssistance intheImplementation oftheLimitation Provisions
11. TheGovernment ofCosta Ricashalladminister itsexport control system under theAgreement.
TheGovernment oftheUnited States willcontrol bythedateofexport, imports oftextile products
covered bytheAgreement.
Commercial Samples andPersonal Shipments
13. Properly marked commercial sample shipments, valued atUS$250orless,anditems forthe
personal useoftheimporter andnotforresale regardless ofvalue, neednotbeaccompanied byan
export visaandshallnotbesubject tothelimits established under thisAgreement.
Exchange ofInformation
14. Subject todomestic laws, attherequest oftheother government, eachgovernment agrees to
supply anyinformation within itspossession reasonably believed tobenecessary fortheenforcement
ofthisAgreement.
Exchange ofData
15.(A) TheGovernment oftheUnited States shallpromptly supply theGovernment ofCosta Rica
withdataonmonthly imports ofcotton, man-made fibre, wool, silkblend andnon-cotton
vegetable fibretextiles andtextile products ofCosta RicaintotheUnited States.G/TMB/N/267
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(B) TheGovernment ofCosta Ricashallpromptly supply theGovernment oftheUnited States
withdataonmonthly exports ofcotton, man-made fibre, wool, silkblend andnon-cotton
vegetable fibretextiles andtextile products ofCosta RicatotheUnited States.
(C) TheUSGovernment andtheGovernment ofCosta Ricaagree toexchange namesake datavia
computer diskette asagreed inasubsequent technical letter.
(D) Anydiscrepancy noted byoneparty between import andexport datashallbenotified tothe
other party. Bothparties agree thatwhen suchdiscrepancies aresonotified theywillhold
consultations aspromptly aspossible toresolve suchdiscrepancies.
Cooperation inthePrevention ofCircumvention
16.(A) TheGovernment oftheUnited States andtheGovernment ofCosta Ricaagree totakemeasures
necessary toaddress, toinvestigate and,where appropriate, totakelegaland/or administrative
action toprevent circumvention ofthisAgreement including transshipment, rerouting, false
declaration concerning country oforigin, falsification ofofficial documents, oranyothermeans.
(B) Bothparties agree tocooperate fully, consistent withtheirdomestic lawsandprocedures, in
instances ofcircumvention oralleged circumvention oftheAgreement toaddress problems
arising fromcircumvention andtoestablish therelevant factsintheplaces ofimport, export
and,where applicable, transshipment. Suchcooperation, totheextent consistent withdomestic
laws andprocedures, willinclude investigation ofcircumvention practices; exchange of
documents, including theITA370-P forms orsuccessor document, correspondence, reports
andother relevant information totheextent available; andfacilitation ofimpromptu plantvisits
andcontacts byrepresentatives ofeither party, upon request andonacase-by-case basis.
Where theenforcement officials ofeither party plantotravel totheterritory oftheother party
topayvisits tocertain textile orapparel plants, theyshallgiveadvance written notice tothe
Ministry ofForeign Trade ortotheUnited States Department Government ofsuchtravel plan
atleastone(1)week inadvance, stating therein thename ofplants theyintend tovisit. Both
parties agree thatifrequested bytheother party, theplant willnotbenotified inadvance of
aplantvisit. Permission fromaresponsible person attheplantshallbeobtained foreachsuch
plant visittobemade. Upon completion ofsuchplant visits during eachtrip,thevisiting
officials shallreport theirfindings totherespective Government officials oftheother party.
(C) Bothparties alsoagree tocooperate intheimplementation ofabilateral electronic dataexchange
system (EDES).
(D) Ifeither party believes thatthisAgreement isbeing circumvented, itmayrequest consultations
toaddress thematter ormatters concerned withaview toseeking amutually satisfactory
solution. Bothparties agree toadiscovery period togather, exchange andreview allrelevant
information which willconclude within 30daysoftherequest forconsultations. Bothparties
agree toholdfurther consultations promptly ifdeemed necessary byeither party, beginning
within 5daysaftertheconclusion ofthediscovery period andconcluding within 60days, unless
extended bymutual agreement. Bothparties agree tocooperate fullyinterms oftheelements
setoutinparagraph (B)above.
(E) (I) Should theparties beunable toreach asatisfactory solution inthecourse ofthe
consultations called orunder paragraph D,thentheGovernments ofCosta Ricaand
theUnited States agree thatincases where clear evidence regarding circumvention
hasbeenprovided, theUnited States maydeduct fromthequantitative limits forthatG/TMB/N/267
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agreement period amounts equivalent totheamount oftransshipped products of
Costa Rican origin.
(II) Inaddition, theGovernments ofCosta RicaandtheUnited States agree thatdeductions
from thequantitative limits established under thisAgreement maybemade inthose
instances inwhich:
(a) theUSpossessesinformationshowingasubstantiallikelihoodthatcircumvention
hasoccurred, andhasprovided such information totheGovernment of
Costa Rica;
(b) theUShasrequested fromCosta Ricacooperation orinformation relevant to
thepossible circumvention thatisofatypethatislegally available toandcould
reasonably beobtained bytheGovernment ofCosta Rica, and
(c) theGovernmentofCostaRicahasnotprovidedsuchinformationorcooperation
within theperiod forconsultation outlined inparagraph D.
Anysuchaction shallbenotified totheTSBwithfulljustification.
(F) Should theUnited States choose toexercise itsrights under paragraph E(I)todeduct anamount
oramounts fromthequantitative limits ofacountry where more thantwomajor instances of
circumvention havebeendemonstrated within thecurrent orimmediately preceding agreement
year, thentheUnited States maydeduct fromthequantitative limitamounts uptothree times
theamounts transshipped, provided thatsuchdeductions aredistributed equally ineachofthe
three following years.
(G) Where there isclear evidence showing thatgoods originating inanother country havebeen
shipped through Costa RicatotheUnited States asthough theywereproducts ofCosta Rica,
theGovernments ofCosta RicaandtheUnited States agree totakeappropriate action. Such
action mayinclude theintroduction ofrestraints intherelevant category orcategories or
deducting theamount ofgoods soshipped fromthequantitative limits established forthecurrent
agreement yearunder thisAgreement forshipments originating inCosta Rica. Anysuchactions,
together withtheirtiming andscope, maybetaken afterconsultation heldwithaviewofarriving
atamutually satisfactory solution andshallbenotified totheTSBwithfulljustification. Such
consultations should beheldfollowing theprocedures setforth inparagraph (D).Should the
parties beunable toreach asatisfactory solution, thentheGovernments ofCosta Ricaandthe
United States agree thatincases where clear evidence regarding circumvention hasbeen
provided, theUnited States mayintroduce arestraint or,where arestraint already exists, may
deduct fromthequantitative limits established under thisAgreement anamount equivalent to
theamount ofproduct transshipped through Costa Rica. Parties notethatsome cases of
circumvention mayinvolve shipments transitting through thecountry withnochanges or
alterations made tothegoods contained insuchshipments intheplace oftransit andthatin
those cases itshallnotbepracticable toexercise control oversuchshipments.
(H) Parties agree thatfalse declaration concerning fibre content, quantities, description or
classifications ofmerchandise alsofrustrates theobjective ofthisAgreement. Where there is
clearevidence thatanysuchfalsedeclaration hasbeenmade forpurposes ofcircumvention,
bothparties agree totakeappropriate measures, consistent withtheir domestic lawsand
procedures, against exporters orimporters involved. Should either party believe thatthis
Agreement isbeing circumvented bysuch false declaration andthatno,orinadequate,
administrative measures arebeing applied toaddress and/or totakeaction against suchG/TMB/N/267
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circumvention, thatpartyshould consult promptly withthepartyinvolved withaviewtoseeking
amutually satisfactory solution. Suchconsultations should beheldfollowing theprocedures
setforthinparagraph (D).Should theparties beunable toreach asatisfactory solution, then
theGovernments ofCosta RicaandtheUnited States agree thatincases where clearevidence
regarding suchfalsedeclarations hasbeenprovided, thentheUnited States maydeduct from
thequantitative limits established forthecurrent agreement yearanamount equivalent tothe
amount ofproduct subject tothefalsedeclaration orclassification. Thisprovision isnotintended
toprevent parties frommaking technical adjustments when inadvertent errors indeclarations
havebeenmade.
(I) Anyactions taken byeither party inapplication oftheprovisions ofthisAgreement shallbe
notified totheTSBwithfulljustification.
Mutually Satisfactory Administrative Arrangements
17. Mutually satisfactory administrative arrangements oradjustments maybemade toresolve minor
problems arising intheimplementation ofthisAgreement, including differences inpoints ofprocedure
oroperation.
Consultation onImplementation Questions
18. TheGovernment oftheUnited States andtheGovernment ofCosta Ricaeachagree toconsult
upon therequest oftheother onanyquestion arising intheimplementation ofthisAgreement.