WORLD TRADE G/TMB/N/164
2August 1996
ORGANIZATION(96-3066)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withMalaysia
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/164
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, Costa Rica, Cuba, Hong Kong, Hungary, India, Indonesia, Korea, Lesotho, Macau,
Malaysia1,Mauritius,Pakistan,Philippines,Romania,SlovakRepublic,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 withMalaysia. Arrangements concluded with
theother WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/164
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Memorandum ofUnderstanding Between theGovernment ofCanada and
theGovernment ofMalaysia Relating totheExport
from Malaysia ofCertain Textile Products toCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreed uponbetween theGovernments ofCanada andMalaysia, pursuant toArticle 2.17ofthe
MTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Canada andMalaysia tobenotified pursuant toArticle 2.1oftheATC. These
provisions willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles
andclothing from Malaysia pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasisoftheexport control system operated bytheGovernment ofMalaysia. Exports
ofthetextile products included intherestraints notified under Article 2.1oftheATC shallbecovered
byanoriginal "Export Licence" endorsed andissued bythecompetent authorities ofMalaysia tothe
effect thatthegoods covered bytheexport licence havebeendebited fromtheapplicable quantitative
limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport fromMalaysia shall
beusedtodetermine therestraint period inwhich anyshipments oftextile products shallbecounted.
4. TheGovernment ofMalaysia 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 ofMalaysia 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/164
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(h) f.o.b. orc.i.f. value except fornon-commercial consignments;
(i) certification bythecompetent authorities ofMalaysia thatthequantity hasbeendebited
from theagreed restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
ofMalaysia shallnotify theGovernment ofCanada ofsuchquantity which maybecredited bythe
Government ofMalaysia totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government ofMalaysia shallrestrain itsexports toCanada ofthetextile products notified pursuant
toArticle 2.1oftheATC tothelimits notified under Article 2.1oftheATC, asmodified bythe
provisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1oftheATC, it
isunderstood 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,andfollowingnotificationtotheappropriateCanadianauthorities,theGovernmentofMalaysia
mayexceed thespecified annual quantitative limit uptothepercentage specified intherestraint
notification under Article 2.1oftheATC, provided thatanequivalent amount isdeducted from any
other restraint level. When anyrestraint limitisexceeded bytheapplication ofswing, theGovernment
ofMalaysia 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 ofMalaysia shallprovide theGovernment ofCanada withmonthly statistical
reports relating toexports ofrestrained textile products described, licensed forexport toCanada and
debited fromthequantitative limits foreachrestraint period. These statistics shallinclude thefollowing
information:
(a) Itemnumber anddescription;G/TMB/N/164
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(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 forinparagraphs 8to11above.
Thisinformation should beprovided assoonaspossible following theendofeachmonth.
13. TheGovernment ofCanada shallprovide theGovernment ofMalaysia withmonthly statistical
reports relating toimport permits issued forimports originating inMalaysia oftextile products listed
inAnnex I.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification, under
Article 2.1oftheATC, ofCanada 'srestraints onimports from Malaysia.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment ofMalaysia when
imports intoCanada ofrestrained textile products aresubsequently re-exported fromCanada. Where
suchre-exports haveoriginally beendebited bytheGovernment ofMalaysia fromquantitative limits,
theGovernment ofMalaysia maythencredit backthequantity involved totheappropriate quantitative
limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment ofMalaysia andtheGovernment ofCanada
express theirwillingness toconsult, onrequest, onanymatter arising from theimplementation or
operation oftheATC orofthisMOU oronanymatter germane thereto.G/TMB/N/164
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ANNEX 1-RESTRAINT LEVELS
MALAYSIA
GROUP I
(A)
Agreement
Item
No.(B)
Product coverage(C)
1994
Restraint
level (NMB)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit) Category Short description
1a 1.2
1.3Jackets;
Rainwear900,804 6% 5% 10%(5%) 15% 2.8
2 2.0 Winter outerwear 154,782 5% 6% 10%(5%) 15% 3.4
3/4a 3.2
4.0Ensembles, MBC;
Female casual &finewear948,662 6% 7% 10%(5%) 15% 3.5
5a 5.1-5.3
5.5Trousers, MBWGC;
Shorts774,517 6% 7% 10%(5%) 15% 1.9
6 6.0 Tailored collar shirts, MBC 1,541,579 4% 5% 10%(5%) 15% 1.7
7/8 7.0
8.0Woven shirts, blouses &
similar articles;
Athletic wear, k/cshirts,
blouses &similar articles,
T-shirts andsweatshirts4,016,077 5% 6% 10%(5%) 15% 1.4
7/8a
8.4-ofwhich,
Athletic wear 631,749 6% 7% 10%(5%) 15% 1.8
9 9.0 Underwear 5,281,866 6% 7% 10%(5%) 15% 0.5
11 11.0 Sweaters 618,927 3% 7% 10%(5%) 15% 1.2
14 14.0 Babies garments 2,120,000 6% 7% 10% (5%) 15% 0.7G/TMB/N/164
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ANNEX I-RESTRAINT LEVELS
MALAYSIA
GROUP II
(A)
Agreement
No.(B)
Product coverage(C)
1994
Restraint
level (unit)(D)
Growth(E)
Swing(F)
Carryover/
carry
forward(G)
Combined
flexibility
(E)&(F)(H)
Conversion
factor
(m2/unit) Category Short description
25 25.0 Acrylic staple yarn 410,093 6% - 10%(5%) 15% -
Note: Noswing between products inGroup Iandproducts inGroup II.