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Textile and Apparel Agreements The following provisions are drawn from the United States-Egypt bilateral textile and apparel agreement of March 7 and May 4, 1995, and have been agreed by the United States and Egypt to be necessary for the proper implementation of restrictions notified to the Textile Monitoring Body under Article 2.1 of the Agreement on Textiles & Clothing. CLASSIFICATION 3. (A) Textiles and textile products subject to this agreement are those set forth in Annex 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 the chief weight of the product, are subject to this agreement. Components of an article which are not considered relevant to the classification under the general rules of interpretation of the legal notes of Section XI of the Harmonized System are likewise to be disregarded here. (B) For the purposes of this agreement, textile
products covered by sub-paragraph (A) above shall be classified as: (II) Man-made fiber textiles, if the product is in chief weight man-made fibers, unless:
(III) Wool textiles if neither of the foregoing applies, and the product is in chief weight of wool. (IV) Silk or non-cotton vegetable fiber textiles, if none of the foregoing applies and the product is in chief weight of silk or non-cotton vegetable fiber, unless: (a) cotton with wool and/or man-made fibers in the aggregate equal or exceed fifty (50) percent by weight of the component fibers thereof and the cotton component equals or exceeds the weight of each of the total wool and/or man-made fiber component, in which case the product shall be a cotton textile. (b) if not covered by (IV)(a) and wool exceeds seventeen (17) percent by weight of all component fibers in which case the product shall be considered a wool textile. (c) if not covered by (IV) (a) or (b) and man-made fibers in combination with cotton and/or wool in the aggregate equal or exceed fifty (50) percent by weight of the component fibers thereof and the man-made fiber component exceeds the weight of the total wool and/or total cotton component, in which case the product shall be considered a man-made fiber textile. (V) Notwithstanding the above, garments which contain seventy (70) percent or more by weight silk (unless they also contain over seventeen (17) percent by weight wool), and products other than garments which contain eighty-five (85) percent or more by weight silk are not subject to this agreement. Silk and "non-cotton vegetable fiber" sweaters, as determined above, shall be divided into "silk" sweaters and "non-cotton vegetable fiber" sweaters. For the purpose of this division, sweaters shall be classified as "silk" if the silk component exceeds by weight the non-cotton vegetable fiber component (if any). Sweaters not classified as "silk" sweaters in accordance with the foregoing shall be classified as "non-cotton vegetable fiber" sweaters. Garments containing seventy (70) percent or more by weight silk and over seventeen (17) percent by weight wool shall be classified as wool textiles, under sub-paragraph (B)(IV)(b). (C) Coverage under this paragraph is intended to be identical with the terms of Article 12 of the Arrangement Regarding International Trade in Textiles and in conformance with paragraph 24 of the July 31, 1986 Protocol of Extension. In the event of a question regarding whether a product is covered by this agreement by virtue of being in chief weight of cotton, wool, man-made fibers, silk, or non-cotton vegetable fiber, the chief value of the fibers may be considered. MERGED CATEGORIES AND CONVERSION FACTORS 4. For the purposes of this Agreement, the categories
listed below are merged and treated as single categories as indicated:
FLEXIBILITY ADJUSTMENTS SWING 5. (A) (I) The Group and Specific Limits set out in Annex B do not include any adjustments permitted under paragraph 5. (A) (II) During any Agreement Period, the Group and Specific Limits set out in Annex B may be increased by not more than a six (6) percent swing provided that a corresponding reduction in square meters equivalent is made in one or more of the Group or Specific Limits during the same Agreement Year. With respect to merged categories (e.g. 300/301) any swing adjustment will increase or decrease the sub-limits within the merged limit by the same proportion as the merged limit. (A) (III) Notwithstanding the provisions of paragraph 5(A)(II), the Specific Limit for category 340/640 may be increased by not more than a seven (7) percent swing. (A) (IV) No swing is available among categories within a merged category. (A) (V) Sub-limits within the fabric group (218-326) may be increased by not more than a six (6) percent swing, provided that a corresponding reduction in square meters equivalent is made in one or more other limits or sub-limits during the same Agreement year. Adjustments to any of the sub-limits shall increase or decrease the Group limit in square meters equivalent. (A) (VI) No specific limit may be decreased pursuant to paragraph 5(A)(I) to a level which is below the level of exports charged against that category's limit for that agreement year. (A) (VII) The Government of the Arab Republic of Egypt shall indicate to the Government of the United States the specific limits or sub-limits it would like increased and those which it would like decreased by commensurate quantities in square meters equivalent. SPECIAL SHIFT (B) (I) Up to ten (10) percent special shift calculated in square meters equivalent (SME) from category 338/339 into category 340/640. (B) (II) Up to five (5) percent special shift from category 314 (with a commensurate reduction in the fabric group) into category 340/640.
CARRYOVER AND CARRYFORWARD (C) (I) The extent to which any Group or Specific Limit set out in Annex B may be increased in any Agreement Period by Carryforward (borrowing a portion of the corresponding Group or Specific Limit from the succeeding Agreement Period) and/or Carryover (the use of any unused meterage (Shortfall) of the corresponding Group or Specific Limit for the previous Agreement Period) is eleven (11) percent, of which Carryforward shall not constitute more than six (6) percent.
OVERSHIPMENT CHARGES 7. (A) Products of the Arab Republic of Egypt shipped in excess of authorized limits in any Agreement Period may be denied entry into the United States. Any such shipment denied entry may be permitted into the United States and charged to the applicable limit in the succeeding Agreement Period.
SPACING PROVISIONS 8. The Government of the Arab Republic of Egypt shall use its best efforts to space exports of its products to the United States within each Category, sub-Category or Part Category evenly throughout each Agreement Period, taking into consideration normal seasonal factors. U.S. ASSISTANCE IN THE IMPLEMENTATION OF THE LIMITATION PROVISIONS 9. The Government of the Arab Republic of Egypt shall administer its export control system under the Agreement. The Government of the United States may assist the Government of the Arab Republic of Egypt in implementing the limitation provisions of this Agreement by controlling, by the date of export, imports of textiles and textile products covered by this Agreement. COMMERCIAL SAMPLES AND PERSONAL SHIPMENTS 10. Properly marked commercial samples, valued at $250 or less, regardless of value, and items for the personal use of the importer and not for resale, need not be accompanied by an export visa or certification and shall not be subject to the limits established under this Agreement. EXCHANGE OF INFORMATION 11. Subject to domestic laws, at the request of the other government, each government agrees to supply any information within its possession reasonably believed to be necessary for the enforcement of this agreement. EXCHANGE OF DATA 12. (A) The Government of the United States shall promptly supply the Government of the Arab Republic of Egypt with data on monthly imports of cotton and certain man-made fiber textiles and textile products of the Arab Republic of Egypt into the United States.
COOPERATION IN THE PREVENTION OF CIRCUMVENTION 13. (A) Consistent with domestic laws, regulations and procedures, the Government of the United States and the Government of Egypt agree to take measures necessary to address, to investigate and, where appropriate, to take legal and/or administrative action to prevent circumvention of this Agreement by transshipment, rerouting, false declaration concerning country of origin, falsification of official documents or any other means. (B) Both parties agree to cooperate fully in instances of circumvention or alleged circumvention of the Agreement to address problems arising from circumvention and to establish the relevant facts in the places of import, export and, where applicable, transshipment. Such cooperation, to the extent consistent with domestic laws and procedures, will include investigation of circumvention practices; exchange of documents, correspondence, reports and other relevant information to the extent available; and facilitation of impromptu plant visits when appropriate and contacts by representatives of either party, upon request and on a case-by-case basis. (C) If either party believes that this Agreement is being circumvented, it may request consultations to address the matter or matters concerned with a view to seeking a mutually satisfactory solution. Each party agrees to hold consultations promptly, beginning within 30 days of a request by a party and concluding within 90 days, unless extended by mutual agreement. At the time of its request, the party requesting consultations shall provide the other party information regarding the alleged circumvention subject of the proposed consultations. During the consultations, the parties agree to cooperate fully in terms of the elements set out in paragraph (B) above, including where possible and in accordance with domestic laws and procedures, the provision of original documents and other materials necessary to facilitate legal actions by a party. (D) Should the parties be unable to reach a
satisfactory solution in the course of the consultations called for under
paragraph C, then the Governments of Egypt and the United States agree
that in cases where sound evidence regarding circumvention has been
provided, the United States may deduct from the quantitative limits for
that agreement period amounts at least equivalent to the amount of
transshipped of Egyptian origin. The amounts transshipped shall be the
amounts so determined by U.S. Customs. The country of origin shall be the
country of origin so determined by U.S. Customs in accordance with
established U.S. rules of origin. The Governments of Egypt and the United
States agree that deductions from the quantitative limits established
under this Agreement may be made in those instances in which: (a) the U.S.
possesses sound evidence showing that circumvention has occurred; (b) the
U.S. has requested from the Government of Egypt cooperation or information
relevant to the possible circumvention that is of a type that is available
to or could reasonably be obtained by the Government of Egypt, and (c) the
Government of Egypt has deliberately withheld information or has not
provided such information or cooperation within the period for
consultations outlined in paragraph (C) or any other reasonable time frame
as may be mutually agreed. Any such action shall be notified to the TSB
with full justification. (F) Where there is sound evidence showing that goods originating in another country have been shipped through Egypt to the United States falsely identified as products of Egypt, the two Governments shall cooperate, as long as it is within their powers, to address the problem and appropriate administrative measures should be taken. If no, or inadequate measures, are being applied to address the problem, and/or no action is being taken against such circumvention, then the Government of Egypt and the Government of the United States agree that restraints may be introduced in the relevant category or categories or deductions may be applied to the quantitative limits established under this Agreement in amounts equivalent to the amount of goods so shipped. Any such actions, together with their timing and scope, may be taken after consultations held with a view to arriving at a mutually satisfactory solution and shall be notified to the TSB with full justifications. Such consultations should be held promptly, beginning within 30 days of a request of a party and concluding within 90 days, unless extended by mutual agreement. Should the parties be unable to reach a satisfactory solution, then the Government of the United States may take action as outlined above without prejudice to the rights of the Government of Egypt to refer the matter to the TSB. (G) textile products presented for import by the exchange of available information and documents in accordance with the national laws concerned, with a view to establishing the relevant facts and enabling the government concerned to take appropriate action under national laws and procedures. (H) The parties note that some cases of circumvention may involve shipments transiting through countries or places with no changes or alterations made to the goods contained in such shipments in the places of transit. They note that it may not be generally practicable for such places of transit to exercise control over such shipments." MUTUALLY SATISFACTORY ADMINISTRATIVE ARRANGEMENTS 14. 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. CONSULTATION ON IMPLEMENTATION QUESTIONS 15. The Government of the United States and the Government of the Arab Republic of Egypt each agree to consult upon the request of the other on any question arising in the implementation of this Agreement. ANNEX A
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