WORLD TRADE G/TMB/N/277
22July1997
ORGANIZATION(97-3024)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withKenya
TheTextiles Monitoring Body hasreceived thefollowing notification fromtheUnited States
pursuant toparagraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members
fortheirinformation.G/TMB/N/277
Page2
Executive Office ofthePresident
Office oftheUnited States Trade Representative
14April 1997
TheHonourable Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
Attached youwillfindmyGovernment 'snotification ofAdministrative Arrangements for
Bangladesh, Jamaica, Kenya1,Mauritius andPoland made pursuant toArticle 2.17oftheAgreement
onTextiles andClothing. Inaddition, Iamsubmitting corrected copies ofprevious 2.17notifications
forPakistan andHaiti. InthecaseofPakistan, thecorrected notification includes paragraph 3ofthe
bilateral agreement which wasmistakenly omitted from ouroriginal notification. Inaddition, the
corrected version ofthenotification forHaiti omits paragraph 5ofthebilateral agreement which was
mistakenly included intheoriginal notification.
Sincerely,
(signed) Ambassador RitaHayes
Chief Textile Negotiator
1ThisdocumentcontainstheAdministrativeArrangementsconcludedwithKenya.AdministrativeArrangements
concluded withtheother Members listed above willbecirculated asseparate documents.
Note: Annex Breferred tointhetextcontains thelistofrestrictions notified bytheUnited States pursuant to
Article 2.1andassuch itisnotpartoftheAdministrative Arrangements.G/TMB/N/277
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KENYA
Thefollowing provisions aredrawn from theUnited States-Kenya bilateral textile export
agreement of23August and25October 1994 andhavebeenagreed tobenecessary fortheproper
implementationofrestrictionsnotifiedtotheTextileMonitoringBodyunderArticle2.1oftheAgreement
onTextiles andClothing.
Flexibility Adjustments
Swing
4.(A) Thespecific limits setoutinAnnex Bdonotinclude anyadjustments permitted under
paragraphs 4and5.
(B) During anyagreement period, thespecific limits setoutinAnnex Bmaybeincreased bynot
morethan6percentswing provided thatacorresponding reduction insquare metres equivalent
ismade inoneormore other specific limitduring thesame agreement period.
(C) Nospecific limitmaybedecreased pursuant toparagraph 4(B)toalevelwhich isbelow the
levelofexports charged against thatcategory 'slimitforthatagreement period.
(D) TheGovernment oftheRepublic ofKenya shallindicate totheGovernment oftheUnited States
ofAmerica thespecific limits orsub-limits itwould likeincreased andthose which itwould
likedecreased bycommensurate quantities insquare metres equivalent.
Carryover andCarry Forward
5.(A) Theextent towhich anyspecific limitsetoutinAnnex Bmaybeexceeded inanyagreement
period bycarry forward (borrowing aportion ofthecorresponding specific limit from the
succeeding agreement period) and/or carryover (theuseofanyunused meterage (shortfall)
ofthecorresponding specific limitfortheprevious agreement period) is11percent,ofwhich
carry forward shallnotconstitute more than6percent.
(B) Notwithstandingtheabove,only6percentcarryforwardshallbeavailableinthefirstagreement
period; nocarryover shallbeavailable forapplication inthefirstagreement period.
(C) Notwithstanding theabove, only6percentcarryover shallbeavailable inthelastagreement
period; nocarry forward shallbeavailable forapplication inthefinalagreement period.
(D) Forpurposes oftheAgreement, ashortfall occurs when exports oftextile ortextile products
fromKenya totheUnited States ofAmerica during anagreement period arebelow anyspecific
limitassetoutinAnnex B,(or,inthecaseofanylimitdecreased pursuant toparagraphs 4
and5,when suchexports arebelow thelimitassodecreased).
(E) TheGovernment oftheRepublic ofKenya willnotify theGovernment oftheUnited States
ofAmerica when itwishes touseunused meterage (shortfall) available incategories for
carryover, orforusebyother categories forswing, subject totheprovisions setoutabove.
However, theGovernment oftheUnited States ofAmerica maysupply adjustments under this
section toanyspecific limitwhenever thatadjustment appears appropriate tofacilitate theflow
oftrade andthesound administration oftheAgreement. Totheextent thatsuchadjustments
areactually utilized, theywillbeimplemented bymeans ofcarryover andcarry forward, in
thatorder. Anyunused carry forward willbere-credited tothefollowing period 'slimit. ThisG/TMB/N/277
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procedure willnotprejudice theoutcome ofanyconsultations thatmaybeheldbetween our
governments concerning theamounts ofavailable carryover orcarry forward.
Overshipment Charges
6.(A) Products ofKenya shipped inexcess ofauthorized limits inanyagreement period maybedenied
entry intotheUnited States ofAmerica. Anysuchshipment denied entry maybepermitted
intotheUnited States ofAmerica andcharged totheapplicable limitinthesucceeding agreement
period.
(B) Products ofKenya shipped inexcess ofapplicable limits inanyagreement period will,ifallowed
entry intotheUnited States ofAmerica during thatagreement period shallbecharged tothe
applicable limitinthesucceeding agreement period.
(C) Anyaction taken pursuant tosubparagraphs 6(A)and(B)above, willnotprejudice therights
oftheother sideregarding consultations.
Spacing Provision
7. TheGovernment oftheRepublic ofKenya shalluseitsbestefforts tospace exports ofits
products totheUnited States within eachcategory, sub-category, orpart-category, evenly throughout
eachagreement period, taking intoconsideration normal seasonal factors.
United States 'Assistance inImplementation oftheLimitation Provision
8. TheGovernment oftheRepublic ofKenya shalladminister itsexport control system under
theAgreement. TheGovernment oftheUnited States ofAmerica mayassist theGovernment ofthe
Republic ofKenya inimplementing thelimitation provisions ofthisAgreement bycontrolling, bythe
dateofexport, imports oftextiles andtextile products covered bythisAgreement.
Exchange ofInformation
10. Subject todomestic laws, attherequest oftheother government, eachgovernment agrees to
supply anyinformation within itspossession reasonably believed tobenecessary fortheenforcement
ofthisAgreement.
Exchange ofData
11.(A) TheGovernment oftheUnited States ofAmerica shallpromptly supply theGovernment of
theRepublic ofKenya withdataonmonthly imports ofcotton, wool, man-made fibre, silk-blend
andnon-cotton vegetable fibretextiles andtextile products oftheRepublic ofKenya intothe
United States ofAmerica.
(B) TheGovernment oftheRepublic ofKenya shall promptly supply theGovernment ofthe
United States ofAmerica withdataonmonthly exports ofcotton, wool, man-made fibre,
silk-blend, andnon-cotton vegetable fibretextiles andtextile products oftheRepublic ofKenya
totheUnited States ofAmerica.
Cooperation inthePrevention ofCircumvention
12.(A) TheGovernment oftheUnited States ofAmerica andtheGovernment oftheRepublic ofKenya
agree totakemeasures necessary toprevent circumvention oftheAgreement and/or VisaG/TMB/N/277
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Arrangement bytransshipment, rerouting andfalsedeclaration concerning country oforigin,
andfalsification ofofficial documents. Accordingly, theGovernment oftheUnited States of
America andtheGovernment oftheRepublic ofKenya shallapply orestablish ifsonecessary
legal provisions and/or administrative procedures necessary tocomply withtheAgreement
andtheVisaArrangement. Bothparties agree that,consistent withtheirdomestic lawsand
procedures, they willcooperate fully toaddress problems arising from orrelated to
circumvention.
(B) Should either partybelieve thattheAgreement and/or VisaArrangement isbeing circumvented
bytransshipment, re-routing, false declaration concerning country orplace oforigin, or
falsification ofofficial documents, andthatno,orinadequate measures arebeing applied to
address ortotakeaction against suchcircumvention, bothparties shallconsult withtheview
toseeking amutually satisfactory solution. Each government shallsupply totheother all
available information inregard totheentry orexport ofshipments notinconformity withthe
Agreement and/or VisaArrangement, consistent withtheirdomestic lawsandprocedures.
Suchconsultation should beheldpromptly, andwithin 30dayswhen possible. Ifamutually
satisfactory solution isnotreached, thematter maybereferred totheTSBforrecommendations.
(C) Bothparties agree, consistent withtheirdomestic lawsandprocedures, totakenecessary action
toprevent, toinvestigate, andwhere appropriate, totakelegaland/or administrative action
against circumvention practices within theirterritory. Bothparties agree tocooperate fully,
consistent withtheirdomestic lawsandprocedures, ininstances ofcircumvention oralleged
circumvention oftheAgreement and/or VisaArrangement toestablish therelevant factsin
theplaces ofimport, export and,where applicable, transshipment. Itisagreed thatsuch
cooperation, consistent withdomestic laws andprocedures, willinclude investigation of
circumvention practices which increase restrained exports fromKenya; exchange ofdocuments,
correspondence, reports andother relevant information totheextent available; andfacilitation
ofplant visits andcontacts, upon request. Both parties should endeavour toclarify the
circumstances ofanysuchinstances ofcircumvention, including therespective roles ofthe
exporters orimporters involved.
(D) Where, asaresult ofinvestigation, thereissufficient evidence thatcircumvention hasoccurred
(e.g., where evidence isavailable concerning theplace oftrueorigin, andcircumstances of
suchcircumvention) bothparties agree totakeappropriate action, totheextent necessary to
address theproblem. Such action mayinclude thedenial ofentry ofgoods or,where goods
haveentered, having dueregard totheactual circumstances andtheinvolvement ofthecountry
oftrueorigin, theadjustment ofcharges torestraint levels toreflect thetruecountry oforigin.
Also, where there isevidence thatthegoods havebeentransshipped through theRepublic of
Kenya, suchaction mayinclude theintroduction ofrestraints. Anysuchactions, together with
theirtiming andscope, maybetaken afterconsultation heldwithaviewtoarriving atamutually
satisfactory solution, andshallbenotified totheTSBwithfulljustification. Anysuchagreement
shallalsobenotified totheTSBandtheTSBmaymake suchrecommendations totheparties
concerned asitdeems appropriate. Ifamutually satisfactory solution isnotreached, any
party concerned mayreferthematter totheTSBforprompt review andrecommendation.
(E) Bothparties agree thatfalsedeclaration concerning fibrecontent, quantities, description or
classificationofmerchandisealsofrustratestheobjectiveofthisAgreementorVisaArrangement.
Where there isevidence thatanysuch false declaration hasbeen made forpurpose of
circumvention, bothparties agree totakeappropriate measures, consistent withtheirdomestic
lawsandprocedures, against theexporters orimporters involved. Should either party believe
thatthisAgreement orVisaArrangement isbeing circumvented bysuchfalsedeclaration and
thatno,orinadequate, administrative measures arebeing applied toaddress and/or totakeG/TMB/N/277
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action against suchcircumvention, thatparty should consult promptly withtheparty involved
withaviewtoseeking amutually satisfactory solution. Ifsuchasolution isnotreached, the
matter maybereferred totheTSBforrecommendation. Thisprovision isnotintended to
prevent parties, afternotification, frommaking technical adjustments when inadvertent errors
indeclarations havebeenmade.
Commercial Samples andPersonal Shipments
13. Properly marked commercial sample shipments, valued atUS$250orless,anditems forthe
personal useoftheimporter andnotforresale, neednotbeaccompanied byanexport visaandshall
notbesubject tothelimits established under thisAgreement.
Mutually Satisfactory Administrative Arrangements
15. Mutually satisfactory administrative arrangements oradjustments maybemade toresolve minor
problems arising intheimplementation ofthisAgreement, including differences inpoints ofprocedure
oroperation.
Consultation onImplementation Questions
16. TheGovernment oftheUnited States ofAmerica andtheGovernment oftheRepublic ofKenya
agree toconsult upon therequest oftheother onanyquestion arising intheimplementation ofthis
Agreement.