RESTRICTED
WORLD TRADE G/TMB/N/161
16July1996
ORGANIZATION(96-2752)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
Canada
Administrative Arrangements withKorea
TheTextiles Monitoring Bodyhasreceived anotification fromCanada pursuant toparagraph 17
ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheirinformation.G/TMB/N/161
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,India,Indonesia,Korea1,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 withKorea. Arrangements concluded withthe
other WTO Members mentioned above willbecirculated asseparate documents.G/TMB/N/161
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Memorandum ofUnderstanding Between theGovernment oftheRepublic ofKorea
andtheGovernment ofCanada Relating totheExport from Korea
ofCertain Textiles andTextile Products forImport intoCanada
Introduction
1. ThisMemorandum ofUnderstanding (MOU) setsouttheadministrative arrangements thathave
beenagreeduponbetweentheGovernmentsoftheRepublicofKoreaandCanadapursuanttoArticle2.17
oftheMTN Agreement onTextiles andClothing (ATC) inorder toimplement thetextiles andclothing
restraints between Korea andCanada tobenotified pursuant toArticle 2.1oftheATC. These provisions
willalsoapply withrespect toanyrestraint introduced byCanada onimports oftextiles andclothing
from Korea pursuant totheprovisions ofArticle 6oftheATC.
Implementation
2. Inaccordance withtheprovisions ofArticle 4.1oftheATC, these arrangements shall be
implemented onthebasis oftheexport control system operated bytheGovernment oftheRepublic
ofKorea. Exports oftextiles andtextile products included intherestraints notified under Article 2.1
oftheATCshallbecovered byanoriginal "Export Licence" endorsed andissued bytheproper Korean
authoritiestotheeffectthatthegoodscoveredbytheexportlicencehavebeendebitedfromtheapplicable
quantitative limit.
3. Forthepurpose ofimplementing these arrangements, thedateofexport fromKorea shallbe
usedtodetermine therestraint period inwhich anyshipments oftextiles ortextile products shallbe
counted.
4. TheGovernment oftheRepublic ofKorea shallendeavour toensure thatexports toCanada
ofallrestrained textiles andtextile products arespaced outasevenly aspossible during eachrestraint
period, dueaccount being taken ofseasonal factors andofnormal channels oftrade.
5. Export licences issued bytheGovernment oftheRepublic ofKorea 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, unitsorsquare meters should becalculated inaccordance withtheconversion
factors setoutintherestraint notified under Article 2.1oftheATC;G/TMB/N/161
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(h) F.o.b. orc.i.f. value except fornon-commercial consignments;
(i) Certification bytheKorean authority thatthequantity hasbeendebited fromtheagreed
restraint limitforexports toCanada.
6. Intheevent thatanyquantity covered byanexport licence isnotshipped, theGovernment
oftheRepublic ofKorea shallnotify theGovernment ofCanada ofsuchquantity which maybecredited
bytheGovernment oftheRepublic ofKorea totheappropriate restraint limit.
7. Except asprovided forinparagraphs 8to11below (swing andcarryover/carry forward), the
Government oftheRepublic ofKorea shallrestrain itsexports toCanada ofalltextiles andtextile
products notified pursuant toArticle 2.1oftheATCtothelimits notified under Article 2.1oftheATC,
asmodified bytheprovisions ofArticles 2.7,2.8,2.13and2.14oftheATC. Pursuant toArticle 4.1
oftheATC, itisunderstood 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 ofKorea 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 ofKorea 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. TheGovernmentoftheRepublicofKoreashallprovidetheGovernmentofCanadawithmonthly
statistical reports relating toexports ofrestrained textiles andtextile products licensed forexport to
Canada anddebited fromthequantitative limits foreachrestraint period. These statistics shallinclude
thefollowing information:G/TMB/N/161
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(a) Itemnumber anddescription;
(b) Original andadjusted restraint limits fortherestraint period;
(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. TheGovernmentofCanadashallprovidetheGovernmentoftheRepublicofKoreawithmonthly
statistical reports relating toimport permits issued forimports originating inKorea oftextiles andtextile
products notified pursuant toArticle 2.1oftheATC.
14. BothGovernmentsreservetherighttorequestadditionalstatisticsasmaybereasonablyrequired,
including statistics relating totheexport orimport ofproducts notcontained inthenotification under
Article 2.1oftheATC, ofCanada 'srestraints onimports form theRepublic ofKorea.
Re-exports
15. TheGovernment ofCanada shall, sofaraspossible, inform theGovernment oftheRepublic
ofKoreawhenimportsintoCanadaofrestrainedtextilesandtextileproductsaresubsequentlyre-exported
from Canada. Where suchre-exports haveoriginally beendebited bytheKorean Government from
quantitative limits, theGovernment oftheRepublic ofKorea maythencredit backthequantity involved
totheappropriate quantitative limits.
Consultations
16. Pursuant toArticle 8.4oftheATC, theGovernment ofCanada andtheGovernment ofthe
Republic ofKorea express theirwillingness toconsult, onrequest, onanymatter arising from the
implementation oroperation oftheATC orofthisMOU oronanymatter germane thereto.
(Signed)______________________ (Signed)______________________________
FortheGovernment ofCanada FortheGovernment ofthe
Republic ofKorea
Michael G.Woods Young-Wook Noh
Charge d'Affaires Director-General
Embassy ofCanada Trade Promotion Bureau
Seoul Ministry ofTrade, Industry
andEnergy
[Seoul, 22December 1994]