GENERAL AGREEMENT ON TARIFFS AND TRADE

Transcription

1 GENERAL AGREEMENT ON TARIFFS AND TRADE Textiles Surveillance Body RESTRICTED COM.TEX/SB/1186* 8 December 1986 Special Distribution ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES Notification under Article 4:4 Bilateral Agreement between the United States and Hong Kong The Textiles Surveillance Body received a notification from the United States extending and modifying its bilateral agreement with Hong Kong. The agreement was rewritten to incorporate the agre d extensions and modifications for the period 1 January December The TSB, pursuant to2its procedures regarding bilateral agreements notified under Article 4, has examined the relevant documentation and is forwarding the text of the notification to participating countries for their information. 1 The text of the agreement and previous modifications are contained in COM.TEX/SB/818, , 945, 946, 968, 1026, 1057, 1145 and See COM.TEX/SB/35, Annex B *English only /Anglais seulement/ingles solamente

2 COM.TEX/SB/1186 Page 2 GOVERNMENT SECRETARIAT LOWER ALBERT ROAD HONG KONG 4 August 1986 Mr. Donald Anderson, Consul-General, American Consulate-General, 26 Garden Road, Hong Kong. Sir, I refer to your note No. 6 of today's date proposing an Agreement between the Governments of the United States of America and Hong Kong under Article 4 of, and in conformity with, the Arrangement Regarding International Trade in Textiles, and confirm that it is acceptable to my Government. Accept, Sir, the renewed assurances of my highest consideration. (S.A. Webb-Johnson) Secretary for Trade & Industry

3 COM.TEX/SB/1186 Page 3 American Consulate General of the United States of America Hong Kong, August 4, 1986 No. 6 Sir: I nave the honor to refer to the Arrangement Regarding International Trade in Textiles (hereafter referred to as the Arrangement), done at Geneva on December 20, 1973, as extended by the protocol adopted on December 22, I also refer to discussions between representatives of the Government of Hong Kong and the Government of the United States of America in Hong Kong from March 19 to March 20, 1986; in Hawaii from June 16 to June 20, 1986; and in Washington from June 26 to June 30, 1986, covering exports of cotton, wool, man-made fiber, silk blend and other vegetable fiber textiles and textile products of Hong Kong origin to the United ktates of America. As a result of these discussions, I propose on behalf of the Government of the United States of America, under Article 4 of, and in conformity with, the Arrangement, the following Agreement relating to trade in cotton, wool, man-made fiber, silk blend and other vegetable fiber textiles and textile products between Hong Kong and the United States of America. Mr. Steuart Webb-Johnson Secretary for Trade and Industry Hong Kong

4 COM.TEX/SB/1186 Page 4 I. This Agreement modifies and extends the Agreement between the Government of the United States of'america and the Government of Hong Kong dated June 23, For the sake of clarity it has been decided that the latter Agreement should be re-written to incorporate the modifications and extensions which have been agreed and this Agreement represents the outcome of that effort and accordingly shall be the bilateral instrument which governs textile trade between Hong Kong and the United States of America. Term 2. (a) The term of this Agreement shall be from January 1, 1986 through December 31, 1991, except as provided in paragraph 16. The duration has been agreed in recognition by the Government of the United States of America of the importance to the Government of Hong Kong of stability in the textile trade and the need to ensure that stability and certainty throughout the full life of this Agreement. (b) An agreement year' shall be a calendar year commencing on January 1 and ending December 31. Coverage and Structure 3. Textiles and textile products covered by this agreement are as follows:

5 COM.TEX/SB/1186 Page 5 (a) Group I - Being products other than apparel (including yarn, tabric, and other made-up and miscellaneous products) cotton, wool and/or man-made fiber (Categories 300, 301, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 360, 361, 362, 363, 369, 400, 410, , 429, 464, 465, 469, 600, 601, 602, 603, 604, 605, 610, 611, 612, 613, 614, 625, 626, 627, 665, 666, 669, 670). of (b) Group II - Being apparel of cotton, wool, and/or man-made fiber (categories 330, 331, 332, 333, 341, 352, 435, 446, 634, 642, 650, 334, 342, 353, 436, 447, 635, 643, 651, 335, 345, 354, 438, 448, 636, 644, 652, 336, 347, 359, 440, 459, 637, 645, 653, 337, 348, 431, 442, 630, 638, 646, 654, 338, 339, 349, 350, 432, 433, 443, 444, 631, 632, 639, 640, 647, 649, 659). 340, 351, 434, 445, 633, 641, 649, tc) Group III - Being apparel, other than sweaters, of silk blend and/or other vegetable fiber (Categories 831, 832, 833, 834, 835, 636, 838, 840, 042, 843, 844, 847, 850, 851, M52, 85dr 859). (di Sweaters of silk blend and/or otner vegetable fiber (Categories 845, 846). () Products of silk blend and/or other vegetable fiber not covered by (c) or (d) preceding including yarn, fiber, other made-up and miscellaneous products of silk blend and/or other vegetable fiber (Categories 800, 810, 863, 870, 871, 899).

6 COM.TEX/SB/1186 Page 6 The determination of whether a textile or textile product is of cotton, wool, man-made fiber, silk blend or other vegetable fiber shall be made in accordance with the terms of paragraph 8. The categories referred to above are those described in Annex B. Limits 4. (a) During the term of this Agreement, the Government of Hong Kong shall limit annual exports from Hong Kong of cotton, wool, man-made fiber, silk blend and other vegetable fiber textiles and textile products of Hong Kong origin to the United States of America, to the Group Limits, Specified Limits, and Sub-Limits set forth in Annex A hereto, as such limits may be adjusted in accordance with paragraphs 5 and 6. The limits set out in Annex A are without such adjustments. All textiles and textile products in categories not subject to Specified Limits may be exported from Hong Kong to the United States of America only in accordance with paragraph 7. (b) Shipments valued at U.S. 250 dollars or less which are exported from Hong Kong to the United States of America shall not be subject to the limits in Annex A or the procedures of paragraph 7. As a gesture of goodwill, and without prejudice to its position on cotton, wool, and man-made fiber textiles or textile products, Hong Kong will suspend the application of this provision with regard to silk blend and other vegetable fiber textiles and textile products, except with regard to commercial samples and items for the personal use of the importer, pending a mutually satisfactory outcome of planned consultations concerning such shipment.

7 COM.TEX/SB/1186 Page 7 Swing 5. (a) During any agreement year, the Group Limits set out in Annex A (or pursuant to an amendment thereof), as they may be adjusted under paragraph 6, may be exceeded by not more than one percent provided that the total of the Group Limits ot Groups I, II and III is not exceeded. (b) In relation to Groups I and II, as they may be adjusted under paragraph 6 and paragraph 5(a), the Group Limits for such groups may, for the 1986 agreement year only, oe exceeded by an additional one percent provided that the total of the Group I and II limits, as they may have been adjusted under paragraph 6 and paragraph 5(a), is not exceeded. (c) During any agreement year, and within the applicable Group Limit for such an agreement year, as it may be adjusted under paragraphs 6, 5(a) and 5(b), the Specitied Limits and Sub-Limits set out in Annex A (or pursuant to any amendment thereof) may be exceeded by not more than tne percentages set out in Annex C. (d) For the purposes of (a), (b) and (c) preceding, calculations shall be in square yards equivalent on the basis of the conversion factors set out in Annex B and, in the case of merged categories, as set out in paragraph 9. As regards merged category 633/634/635. the conversion factor ot the affected Sub-Limit or Sub-Limits will apply. Carryforward and Carryover 6. (a) Any Group Limit, Specified Limit or Suo-Limit set out in Annex A may, after consultation between the Government of Hong Kong and the Government of the United States of America, be exceeded in any agreement year by carryforward and/or carryover as provided in paragraph 5 of Annex B of the Arrangement.

8 COM. TEX/SB/ 1186 Page 8 (b) Following consultations pursuant to paragraph 6(a) aoove, between the Government ot Hung Kong and the Government of the United States of America in Hong Kong from Match ii to March 21, 192, it was agreed that in respect ot Category 648 Hong Kong will be accorded 7.15 percent carryforward in each agreement year for the life of this Agreement. {c) Following turther consultations pursuant to paragraph 6(a) above, between the Government ot Hong Kong and tne Government of the United States of America in Washington from June 26 to June 30, 1986, it was agreed that any Group Limit, Specified Limit and Sub-Limit set out in Annex A may, in any agreement year, oe exceeded by carryforward and/or carryover in the following manner: (i) to a maximum of 3 percent ot which carryover snall not represent more than 1 percent in the case of any Group Limits, and (ii) to a maximum ot 2 percent of which carryover shall not represent more than 1 percent in the case of any Specified Limit or Sub-Limit. (d) Adjustments made under this paragraph are in addition to those permitted under paragraph 5. Export Authorization System 7. In view of the well established and effective Hong Kong system of export authorization and licensing, and tne desire of both Governments to eliminate real risks of market disruption, the following procedures shall apply to each category not subject to a Specified Limit: (a) The Government ot Hong Kong shall provide reports on

9 COM.TEX/SB/ 1186 Page 9 export authorizations (EAS) issued for exports to the United States of America of such categories as frequently and in such detail as may be Requested. (b) The Government of United States ot America may request consultations with a view to agreement on an appropriate level of restraint for any category not given a Specified Limit for any agreement year whenever, in the view of the Government of the United States of America, conditions in its market are such that a limitation on further trade in any such category is necessary in order to eliminate a real risk of market disruption. (c) The request for such consultations shall be supported as soon as possible, and in any case within 21 days of the date of the request, by a statement of market conditions in the United States of America which in the opinion of the Government of the United States of America make necessary the request for consultations. The statement shall include data similar to that contemplated in paragraphs I and II of Annex A ot the Arrangement. (d) Upon receipt of a request for such consultations, tie Government of Hong Kong, as requested by the Government of the United States of America, shall cease or otherwise limit further issuance of EAS for a period of seven (7) U.S. working days. The Government of the United States of America may request Hong Kong to extend the period of seven (7) U.S. working days mentioned above and may also request Hong Kong to limit the issuance of EAs to a level different from that specified in paragrapn 7(e) (I) and (II) below, whichever is applicable. The Government of Hong Kong shall consider an-, such request sympathetically and shall respond promptly. Unless agreed otherwise, the Government of Hong Kong shall have the right, following the expiry ot the period ot seven (7) U.S. working days mentioned above, to resume the issuance of EAs up to the level specified in paragraph 7(e) (I) or (II) below,

10 COM.TEX/SB/1186 Page 10 whichever is applicable. EAs thus issued, as well as EAs issued prior to receipt of the request for consultations, may be honored by the issuance of export licenses by the Government of Hong Kong. The two Governments, unless otherwise agreed, shall consult as soon as possible within 30 days of the request for such consultations and shall make their best efforts to complete such consultations within 30 days of the commencement. (e) (I) In the event that consultations do not result in agreement, the Government of the United States of America shall have the right to request the Government of Hong Kong to limit exports of the relevant products during the agreement year in which the request for consultations is made to a level not less than the highest of: (a) The level of the trade in the relevant product or category for the immediately preceding year plus either 15 percent of that level (in the case of cotton, man-made fiber, silk blend and other vegetable fiber products) or 6 percent of that level (in the case of wool products), (b) The average of the level of trade in the relevant product or category for all previous years since January 1, 1981, (January 1, 1985 in the case of silk blend and other vegetable fiber) plus either 15 percent of that level (in the case of cotton, man-made fiber, silk blend and other vegetable fiber products), or 6 percent of that level (in the case of wool products), or

11 COM. TEX/SB/ 1186 Page 11 (c) The limit requested by the Government of the United States of America for the cessation of issuance of EAs in accordance with paragraph 7(d) hereof. (II) Except as provided for in paragraph 7(e) (IV) below, in respect of any product or category where a limit has been established for a single agreement year and where, in the immediately subsequent agreement year the Government of the United States of America makes another request for consultations under paragraph 7(b) of this Agreement, and, in the event that such consultations do not result in agreement, the Government of the United States of America shall have the right to request the Government of Hong Kong to limit exports of the relevant products during the agreement year in which the request for consultations is made, to a level not less than tne higher of: (a) The limit established for the immediately preceding year plus either 8 percent of that limit (in the case of cotton, man-made fiber, silk blend and other vegetable fiber products) or 3 percent of that limit (in the case of wool products). (b) The limit requested by the Government of the United States of America for the cessation of issuance of EAs in accordance with. paragraph 7(d) hereof. (III) Where the Government of United States of America makes a request under paragraph 7(e) (I) or (II) hereof, the Government of Hong Kong agrees that it will honor such a request.

12 COM.TEX/SB/1186 Page 12 (IV) in respect of any product or category for which a limit is established in any one agreement year, either Government may, prior to the start of the immediately following agreement year, elect to convert that limit into a Specified Limit effective as such, from January 1 of the immediately following agreement year. Where such a conversion is made, the Specified Limit so created shall, from the date of effectiveness, be accorded growth at 2.5 percent per annum for cotton, man-made fiber, silk blend and other vegetable fiber products, and 1 percent per annum for wool products. The Specified Limit so created shall, from the year of effectiveness, be accorded flexibility, (as provided for in paragraph 5) at 7 percent, and in subsequent years the flexibility provisions as set out in paragraph 6 of the Agreement shall also apply. In the event a silk blend or other vegetable fiber category under paragraph 3(e) is converted into a Specified Limit, appropriate arrangements for swing (both in and out of such category) will be made. (V) Should two requests in respect of the same product or category be made under paragraph 7(b) hereof during the term of this Agreement but in different agreement years, not being consecutive years, the provisions of paragraph 7(e) (I) shall apply to the second of the two requests. (VI) The two Governments agree that the provisions of paragraph 7 hereof shall not derogate from the rights of the two Governments under paragraph 17 of this Agreement. (VII) For the purpose of paragraph 7 hereof, the phrase "level of trade" shall mean the level of trade established by consultations to be held within the first six months of each agreement year, or, where such consultations have not been completed, the level of trade by date of export.

13 COM. TEX/SB/ 1186 Page 13 (f) In the implementation of this provision, the Government of Hong Kong shall advise the Government of the United States of America immediately upon receipt of any unusual concentration of applications for EAs in a particular category. (g) The two Governments shall consult as early as possible, with regard to problems that may arise if paragraph 7 hereof is invoked near the end of an agreement year, to consider the possibilities of avoiding undue hardship to the trade. Classifications 8. (a) Tops, yarns, piece goods, made-up articles, garments and other textile manufactured products, all being products which derive their chief characteristics from their textile components, of cotton, wool, man-made fiber, or blends thereof, in which any or all of those fibers in combination represent either the chief value of the fibers or 50 percent or more by weight (or 17 percent or more by weight of wool) of the product, are subject to this Agreement. (b) For the purposes of this Agreement, textile products shall be classified as cotton, wool or man-made fiber textiles if wholly or in chief value of any of these fibers. Any product covered by subparagraph (a) above but not in chief value of cotton or wool or man-made fiber snail be classified as: (i) Cotton textiles if containing 50 percent or more by weight of cotton, or if the cotton component exceeds by weight the wool and/or the man-made fiber component,

14 COM. TEX/SB/ 1186 Page 14 (ii) Wool textiles if not cotton, and the wool equals or exceeds 17 percent by weight of all component fibers; and foregoing applies. (iii) Man-made fiber textiles if neither of the (c) Tops, yarns, piece goods, made-up articles, garments and other textile manufactured products, all being products which derive their chief characteristics from their textile components of cotton, wool, man-made fiber, silk blend, and other vegetable fiber, or blends thereof, in which (i) the chief value is silk and/or other vegetable fiber or (ii) 50 percent or more by weight is silk or other vegetable fiber or (iii) 50 percent or more by weight is a combination of silk, other vegetable fiber, cotton, wool or man-made fiber, are subject to this Agreement. For the purposes of this Agreement, such products shall be classified as silk blend and other vegetable fiber. Notwithstanding the above, garments which contain 70 percent or more silk by weight, and products other than garments which contain 85 percent or more silk by weight, are not subject to this Agreement. Silk blend and other vegetable fiber sweaters, as determined above, shall be divided into 'silk blends sweaters and mother vegetable fiber' sweaters. For the purpose of this division, sweaters shall be classified as "silk blend' sweaters if the silk component exceeds by weight the other vegetable fiber component. Sweaters not classified as 'silk blends sweaters in accordance with the foregoing shall be classified as *other vegetable fiber" sweaters.

15 COM.TEX/ SB/ 1186 Page 15 (d) For the purposes of the application of sub-paragraphs (a), (b) and (c) above, a product shall first be considered under the provisions of sub-paragraphs (a) and (b) and, only in the event of those two sub-paragraphs not applying, shall it then fall to be considered under sub-paragraph (c). If sub-paragraph (c) does apply to the product in question it shall accordingly be classified under that sub-paragraph. Merged Categories 9. (a) The system of categories and the rates of conversion into square yards equivalent listed in Annex B hereto shall apply in implementing this Agreement, except as provided for in paragraph 9 hereof. (b) For the purposes of this Agreement and with reference to the particular circumstances of Hong Kong's trade patterns with the United States of America, the categories below are merged as indicated and treated as single categories, with limits for categories and subcategories as set out in Annex A. Categories Merged Designation in Agreement 1) 2) 3) 4) 5) 6) 7) 8) 333 and and and and and , 634 and and and / / / / / /634/ / /646

16 COM. TEX/ SB/ 1186 Page 16 For the purposes of paragraph 5, the conversion factors for individual categories set out in Annex B shall be applied, except that for Categories 333 and 334 the conversion factor shall be 39.5 square yards equivalent per dozen, for Categories 633 and 634 the conversion factor shall be 40.6 square yards equivalent per dozen, and for Categories 638 and 639 the conversion factor shall be 15.5 square yards equivalent per dozen. (c) Merged Category 338/339 is divided into two categories 'cotton tank tops, knit (338/339 - tank tops)" and "cotton shirts and blouses other than tank tops, knit (338/339 - other)'. (d) The Government of the United States of America reserves the right to consult with the Government of Hong Kong, under the provisions of paragraph 18, should the trade patterns referred to above change significantly. Implementation and Administration 10. (a) Changes in the implementation and interpretation of this Agreement (such as changes in practices, rules, procedures, categorization, etc.) whicn have the effect of upsetting the balance of rights and obligations between the parties, or which affect the economic content of this Agreement, or which affect the ability of either party to use or benefit fully from this Agreement, or which result in any disruption to trade shall normally be avoided. The Government initiating the relevant change shall endeavor to consult prior to the time that such action may affect trade between Hong Kong and the United States of America with a view toward making appropriate adjustments to this Agreement. Should consultation

17 COM.TEX/SB/1186 Page 17.prior to implementation not be feasible, both Governments agree to consult at the request of either party at the soonest possible date, with a view toward reaching a mutually satisfactory solution within 30 days of the request. (b) Mutually satisfactory administrative arrangements or adjustments may be made to resolve minor problems arising in the implementation of this Agreement, including differences in points of procedure or operation. 11. The two Governments recognize that the successful nplemedtation of this Agreement depends in large part on alignment of the classification practices of both Governments. The two Governments shall monitor classification procedures and shall consult on actual or potential classification differences. Visa System 12. A visa system, in the form attached as Annex D, shall apply to facilitate implementation of this Agreement. Statistics 13. (a) The two Governments recognize that the successful implementation of this Agreement depends in large part upon mutual cooperation on statistical questions. The Government ot the United States of America shall promptly supply tne Government of Hong Kong with data on monthly imports of cotton, wool, man-made fiber, silk blend and other vegetable fiber textile products from Hong Kong. The Government of Hong Kong shall promptly supply the Government of the United States of America with pertinent data on anticipated exports in categories not subject to Specified Limits and data on monthly

18 COM.TEX/SB/1186 Page 18 export of cotton, wool, man-made fiber, silk blend and other vegetable fiber textile products to the United States of America. (b) Each Government agrees to supply promptly any other available statistical data necessary to the implementation of this Agreement requested by the other Government. Spacing 14. The Government of Hong Kong shall use its best efforts to space exports from Hong Kong to the United States of America within each category or sub-category (or combination of categories) evenly throughout each agreement year, taking into consideration normal seasonal factors. Equity and Extension of the Arrangement 15. (a) If, having regard to the provisions of the Arrangement (and any extension thereof), the Government ot Hong Kong considers that Hong Kong is being placed in an inequitable position vis-a-vis a third country (including in relation to any matter concerning coverage under this Agreement), tne Government of Hong Kong may request consultations with the Government of the United States of America with a view to taking appropriate remedial action. The Government of the United States of America shall consult with the Government ot Hong Kong in the event of sucn a request. (b) Either Government may request consultations, following any extension of the Arrangement, with the objective of revising this Agreement to ensure conformity with the said extension should that, in either Government's view, be necessary.

19 COM.TEX/SB/ 1186 Page 19 Termination 16. This Agreement may be terminated either by mutual consent of the two Governments at any time, or by either Government, effective at the end of an agreement year upon written notice to the other Government to be given at least 180 days prior to the end of such agreement year. MFA Rights 17. Each Government reserves its right under the Arrangement with respect to textiles and textile products not subject to this Agreement. For textiles and textile products covered by this Agreement, it is agreed that either of the parties may have recourse to any and all of the provisions of the Arrangement, save that the Government of the United States of America waives its rights under Article 3 of the Arrangement with respect to products covered by this Agreement as long as this Agreement remains in effect. Consultation Provisions 18. In addition to the consultation provisions elsewhere in this Agreement, the Government of Hong Kong and the Government of the United States of America agree to consult, at the request of either Government, on any question arising in the application of this Agreement.

20 COM. TEX/SB/ 1186 Page 20 If the foregoing proposal is acceptable to the Government of Hong Kong, this note and your note of acceptance on behalf of the Government of Hong Kong shall constitute an agreement between the Government of the United States of America and the Government of Hong Kong. consideration. Accept, Sir, the renewed assurances of my highest 60v722;

21 Sixth Year 238,835,129 60,950,667 9,004,056 61,255,271 37,402,896 1,381, , ,270 3,691, ,146 COM.TEX/SB/1186 Page21 Annex A Category or Sub- Category Unit of Measure First Year Second Year Third Year Fourth Year Fttn Yeear Group I: Cotton Wool and Man-ade Fiber Non APparel SYE 220,095, ,745, ,963, ,882, ,009,882 Cotton Sheeting Printcloths Twills and Sateens Duck Shop Towels (1) SYD SYD SYD SYD LB 54,871,508 7,958,275 56,860,838 33,058,710 1,220,787 55,218,296 8,157,232 57,713,751 33,885,178 1,251,307 56,598,753 8,361,163 58,579,457 34,732,307 1,282,590 58,014,722 6,570,192 59,456,149 35,600,615 1,314,05 59,464,065 8,784,447 60,350,021 36,490,630 1,347,52 Man-made Fioers Spun Noncellulosic Yarn Sewing Thread (1) LB LB 365, , , , , , , , , ,654 Group II: Cotton Wool anu Man-maae Fiber- Apparel SYE 829,125,00U 835,343, ,696, ,4b1, ,776,951 Cotton Gloves 331 Coats, Men ana doys 333/334 OPR 3,512, ,272 3,54,, ,741 3,583, ,262 3,019,229 24L,836 3,655, ,464

22 Sixtn Year COM.TEX/SB/1186 Page 22 Category Unit or Sub- of Category Measure First Year Second Year Third Year Fourth Year Fittn Year Coats, Women, Girls and infants , , , , ,966 Dresses , , , , ,094 Playsuits, Sunsuits Washsuits, Rompers, Creepers, etc , , , , ,583 Shirts ana Blouses other than Tank Tops, knit 338/339 2,567,758 2,580,597 2,593,500 2,606,468 2,o19,SOU Tank Tops 338/339 (1) 1,904,542 1,914,065 1,923,635 1,933,253 1,942,919 Shirts, not knit Blouses, not knit OZ 2,458,900 2,490,594 2,471,195 2,503,047 2,48J,551 2,515,562 2,495,969 2,528,i40 2,5U8,449 2,54U,781 Skirts , , , , ,ib3 344,235 Sweaters , , , ,148 Trousers, Slacks and Shorts (outer) Men and aoys 347/34a (347) 5,877,494 2,892,679 5,906,881 2,907,142 5,936,415 2,921,678 5,9b6,u97 2,936,286 *,9 9P,927 2,95U,9b7 Women, Girls ana Infants (348) 4,454,188 4,476,459 4,498,841 4,52i,335 4,54i,942 Dressing Gowns ,282 LOH,d91 110, , ,d65 Pajamas and otner Nightwear 351 1,051,231 1,056,487 1,061,769 1,U67, , , ,048 2,632,598 1,952,634 2,520,991 2,553, , , 399 6,025,907 2,965,722 4,566, ,573 1,072,413 1,077,775

23 60,415 90, ,883 69,138 8,935 11,977 1,225,337 54, ,575 1,111,654 COM.TEX/SB/1168 Page 23 Category Unit or Sub- of Category Measure First Year Second Year Third Year Fourt Year Fiftn Year Sixtn Year Underwear 352 4,745,525 4,864,163 4,985,767 5,110,411 5,238,171 Coveralls, Overalls, Jumpsuits Outer Vests Infants' sets 359 (1) 359 (2) 359 (3) LB LB LB 988,380 2,059,992 5,912,153 1,008,148 2,101,192 6,030,396 1,028,311 2,143,216 6,151,004 1,048,877 2,180,080 6,274,024 1,069,855 2,229,802 b,399,004 5,369,125 1,091,252 2,274,398 6,527,494 Wool Coats, Men and Boys 434 Coats, Women, Girls and Infants 435 Dresses 436 Shirts and Blouses, knit 438 Skirts 442 Suits, Men ana Boys 443 Suits, Women, Girls and infants 444 Sweaters 445/446 9,100 5d,926 88, ,552 65,782 8,715 11,396 1,195,157 9,191 59,221 88, ,380 66,440 8,759 11,510 1,201,133 9,283 59,17 88, ,227 67, 104 8,803 11,625 1,207,139 9,376 59,815 89, ,093 b7,775 8,847 11,741 1,213,175 9,470 60,114 89, ,978 68,453 8,891 11,858 1,219,241 Trousers, SlacKs and Shorts (outer) 447/448 52,880 53,144 53,410 53,677 53,945 Man-made tier Gloves 631 Coats 633/634/635 DPR 452,158 1,031, ,462 1,047, ,049 1,063, ,925 1,079, ,098 1,095,226

24 COM.TEX/SB/1168 Page 24 Men and Eays Women, Girls ana Infants Dresses Playsuits, Sunsuits WasthSuits, Rompers, Creepers, etc. Shirts ana Blouses, knit Shirts, not knit Blouses, not Knit Skirts Suits Women, Girls and Infants Sweaters Trousers, Slacxs and Shorts (outer), Men and aoys Trousers, Slacks and Shorts (outer), Women Girls dnd Infants Brassieres, etc. Underwear Coveralls, Jveralls Jumpsuits Swimsuits Category Unit or Sub- of Category Measure (633/634) (635) / / (1) 393,737 LB 659 (2) LB First Year Second Year Tihird Year Fourti. Year 787, , ,557 4,268, , , ,757 26,660 1,232, , , ,098 3,650, , , , ,196 4,289, , , ,201 27,327 1,238, ,031 1,003, ,575 3,728, , , , ,926 4,311, , , ,731 28,100 1,244, ,557 1,013, ,414 3,802, , , , , 749 4,332, , , ,349 28,710 1,250, ,271 1,023, ,024 3,878,75U Fiftn Year 417, , , ,668 4,354, , , ,058 29,428 1,257, ,178 1,033, ,215 3,956,325 Sixth Year unise 424, , , ,685 4,378,045 77U, , ,859 30,164 1,263, ,282 1,044, , 195 4,035,402 1,092,420 1,114,268 1,136,553 1,159,284 1,182,470 1,208, , , , ,U16 465, ,000

25 Fiftn Year 50,066, , , , ,826 Sixtai Year 51,318,141 94, , , , ,914 1,125,437 1,126, COM.TEX/SB/116 category or Sub- Category Uni of measure First Year Second Year Third mear Fourth Year Group III: Silk Blend and Other Vegetable Fiber-Apparei Other Than sweaters SYE 47,291,478 47,646,164 48,122,626 48,964,772 Coats, Women, Girls and Infants ,859 90,758 91,666 92,583 Dresses Shirts and blouses, not knit Skirts , , , , , , , , , , , ,587 Trousers, Slacks and Shorts (outer) , , , ,76s Sweaters, otner vegetable fiber, not made from knit to shape component parts knitted elsewhere 845 (1) 1,121,345 1,122,466 1,123,588 1,124,712 Sweaters, other vegetable fiber, made from knit to shape component parts knitted elsewhere 845 (1) 2,616,472 2,619,088 2,621,707 2,624,329 2,626,953 Sweaters, silk olend, not made from knit to snape component parts knitted elsewhere 846 (1) 182, , r ,94 183, ,460

26 Category Unit First Year Secona Year Third Year Fourth Year Fiftn Year Sixtn Year or Sub- of Category Measure COM.TEX/SB/1168 Page 26 Sweaters, silk Diend made from knit to shape Components a4 parts knitted elsewhere 846 (2) 425, , , , ,bi3 428,071 FOOTNOTE TO ANNEX A In respect ot the export of silk blend ana other vegetable fioer products, restraint nuulu tase ectect from AuguSt 1, 1986 and, for l98s agreement year only, the limits for sucn product should be utilized only up to the following limits: Group III Limit 19,704,783 SYE Category ,441 category ,958 Category ,815 Category ,333 Category ,657 Category 845 (1) 467,227 Category 845 (23 1,090,197 Category 846 (1) 76,060 Category 846 (2) 177,474

27 COM.TEX/SB/1186 ANNEX B Page 27 Category Description Conversion of Factor Measures Yarn Cotton 300 Carded 4.6 LB. 301 Combed 4.6 LB. Wool 400 Tops and Yarn 2.0 LB. Man-made Fiber 600 Textured 3.5 LB. 601 Continuous Cellulosic 5.2 LB. 602 Continuous Noncellulosic 11.6 LB. 603 Spun Cellulosic 3.4 LB. 604 Spun Noncellulosic 4.1 LB. 605 Other Yarns 3.5 LB. Silk Blend and Other Vegetaole Fioer 800 Yarn, Thread 4.6 LB. Fabric Cotton 310 Ginghams 1.0 SYD. 311 Velveteens 1.0 SYD. 312 Corduroy 1.0 SYD. 313 Sheeting 1.0 SYD. 314 Broadclotn 1.0 SYD. 315 Printcloths 1.0 SYD. 316 Shirtings 1.0 SYD. 317 Twills and Sateens 1.0 SYD. 318 Yarn-dyed 1.0 SYD. 319 Duck 1.0 SYD. 320 Other fabrics, not knit 1.0 SYD.

28 COM.TEX/SB/1186 Page 28 Category Description -26- Conversion of Factor Measures Wool 410 Woolens and worsted 1.0 SYD. 411 Tapestries and Upholstery 1.0 SYD. 425 Knit 2.0 LB. 429 Other fabrics 1.0 SYD. Man-made fiber 610 Continuous Cellulosic, not knit 1.0 SYD. 611 Spun Cellulosic, not knit 1.0 SYD. 612 Continuous Noncellulosic, not knit 1.0 SYD. 613 Spun Non-cellulosic not knit 1.0 SYD. 614 Otner fabrics, not knit 1.0 SYD. 625 Knit 7.8 LB. 626 Pile and tufted 1.0 SYD. 627 Specialty 7.8 LB. Silk blend and other vegetable fiber 810 Fabrics 1.0 SYD. Apparel Cotton 330 Handkerchiefs Gloves 3.5 DPR. 332 Hosiery 4.6 DPR. 333 Suit-types Coats, M and B Other Coats, M and B Coats, W, G and Dresses (including uniforms) Playsuits, Sunsuits, Washsuits, Creepers, Rompers, etc

29 COM.TEX/SB/1186 Page 29 Category Description Conversion ot Factor Measures 338 Knit Shirts (including T-shirts, other and Sweatshirts) M and B "I Knit Shirts and Blouses (including T-shirts, other and Sweatshirts) W, G and I Shirts, not knit Blouses, not knit Skirts Sweaters Trousers, Slacks and Shorts (outer) M and B Trousers, Slacks and Shorts (outer), W, G and I Brassieres, etc Dressing Gowns, including Bathrobes, and Beach Robes, Lounging Gowns, House Coats, and Dusters Pajamas and Other Nightwear Underwear (including Union Suits) Down and Feather filled Coats, Jackets Vests M and B Down and Feather filled Coats, Jackets Vests, W, G and Other Apparel 4.6 LB. Wool 431 Gloves 2.1 DPR. 432 Hosiery 2.8 DPR 433 Suit-type Coats, M and B Other Coats, M and B 54.0.

30 COM.TEX/ SB/ 1186 Pa ge 30 category Description Conversion of Factor Measures 435 Coats, W, G and I Dresses Knit Shirts and Blouses Shirts and Blouses, not knit Skirts Suits, M and B Suits, W, G and I Sweaters, K and B Sweaters, W, G and I Trousers, Slacks, and Shorts (outer), M and B Trousers, Slacks and Shorts (outer), W, G and I Other Wool Apparel 2.0 LB. man-made fiber 630 Handkerchiefs Gloves 3.5 DPR. 632 Hosiery 4.6 DPR. 633 Suit-type Coats M and B Other Coats, M and B Coats, W. G and I Dresses Playsuits, Sunsuits Washsuits, etc Knit Shirts (including T-shirts), 14 and B Knit Shirts and Blouses (including T-shirts), W, G and I Shirts, not knit Blouses, not knit 14.5.

31 Category Description Conversion of Factor Measures 642 Skirts Suits, M and B Suits, W, G and I Sweaters, M and B Sweaters, W, G and I Trousers, Slacks, and Shorts (outer), M and B Trousers, Slacks, and Shorts (outer), W, G and I Brassieres, etc Dressing Gowns, including Bathrobes and Beach Robes Pajamas and other Nightwear Underwear Down and Feather filled Coats, Jackets, Vests, M and B Down and Feather filled Coats, Jackets, Vests, W, G and I Other Apparel 7.8 LB. Silk Blend and Other Vegetable Fiber 831 Gloves 3.5 DPR. 832 Hosiery 4.6 DPR. 833 Suit-type Coats, M and B Other Coats, M and B Coats, W, G and I Dresses Knit Shirts Blouses and Shirts and not knit Blouses, COM.TEX/SB/1186 Page 31

32 COM.TEX/SB/1186 Page 32 Category Description Conversion Ot Factor Measures 842 Skirts suits, N & B Suits, W, G and I 54.0 UZ. 845 Sweaters, Otner Vegetable Fiber Sweaters, Silk Blend Trousers, Slacks and Shorts (outer) Dressing Gowns Pajamas & other Nightwear Underwear Neckties 3.6 I.B. 859 Other Apparel 6.8 LB. Made-ups and Miscellaneous Cotton 360 Pillowcases 1.1 NO. 361 Sheets 6.2 NU. 362 Bedspreads and Quilts 6.9 NO. 363 Terry and Otner Pile Towels 0.5 NO. 369 Other Cotton Manufactures 4.6 LB. Wool 464 Blankets and Auto Robes 1.3 LB. 465 Floor Covering 0.1 SFT. 469 other Wool Manufactures 2.0 I.B. Man-made fiber 665 Floor Coverings 0.1 SFT. 666 Other Furnishings 7.8 I.B. 669 Other Man-made Fiber Manufactures Luggdge, Handbags, Flat Goods 2.U LB.

33 COM.TEX/ SB/ 1186 Page 33 Category Description conversion Factor of Measures Silk Blend and Other Vegetable Fiber Towels Luggage Handbags & Goods Flat Other Silk blend and Other Vegetable Fiber Manufactures NO. LB. LB. LB.

34 CON.TEX/SB/ 1186 Page 34 Category or Sub-category Number / / / /348 (347) (348) (1) 359 (2) 359 (3) 369 (1) Tank Other Tops ANNEX C Per centage

35 Sub-category Number Percentage 445/ / (1) /6 34/635 6 (633/634) 6 (635) / (1) (2) COM.TEX/ SB/ 1186 Page 35

36 COM.TEX/SB/ 1186 Page 36 Annex D 1. Each shipment of textiles and textile apparel products under the terms of the Agreement produced or manufactured in Hong Kong and exported to the United States of America shall be accompanied by an export visa issued by the Government of Hong Kong. The export visa shall be a signed copy of a Hong Kong export license with a stamp on the front, reading 'Approved for export to the USA,* signed by an authorized official of the Government of Hong Kong. The category or categories and quantities in the shipment shall be correctly indicated on the visa. Visas covering shipments of products classified in merged categories with subcategories shall cite the quantity or quantities and subcategory or subcategories in which the goods are classified. Visas covering shipments for products classified in categories which have been merged without subcategories shall cite all the categories comprising the merged category. Where a shipment is valued at 250 dollars (U.S. dollars) or less, the visas need not indicate the category or categories but shall indicate 'at 250 collars or less". 2. The names and facsimile signatures of the officials authorized to issue and sign textile export visas shall be supplied by the Government of Hong Kong. The Government of Hong Kong shall notify the Government of the United States ot America of any changes of authorized officials and shall provide facsimiles of newly authorized officials' signatures. A limited number of officials shall be authorized to issue visas.

37 COM.TEX/SB/ 1186 Page Textiles and textile apparel products produced or manufactured in Hong Kong included under the terms of the Agreement and exported to the United States of America which are not accompanied by a valid and correct visa in accordance with this Annex shall be denied entry by the Government of the United States of America. However, where the quantity indicated on the visa is above that of the shipment, entry may be permitted. 4. The Government of the United States of America and the Government of Hong Kong shall take all appropriate steps to ensure compliance with this visa arrangement and the Agreement.