WORLD TRADE G/TMB/N/290
22July1997
ORGANIZATION(97-3010)
Original: English Textiles Monitoring Body
AGREEMENT ONTEXTILES AND CLOTHING
Notification under Article 2.17
UNITED STATES
Administrative Arrangements withUruguay
TheTextiles Monitoring Body hasreceived anotification fromtheUnited States pursuant to
paragraph 17ofArticle 2.TheTMB iscirculating thisnotification toWTO Members fortheir
information.G/TMB/N/290
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Executive Office ofthePresident
Office oftheUnited States Trade Representative
28February 1997
TheHonourable Ambassador András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
RuedeLausanne
1211 Geneva
Dear Ambassador Szepesi,
AttachedyouwillfindmyGovernment'snotificationofAdministrativeArrangementsforBrazil,
Colombia, Costa Rica, Fiji,Haiti, Hungary, India, Indonesia, Korea, Macau, Malaysia, Philippines,
Qatar, Romania, SriLanka, Thailand, UAE andUruguay1made pursuant toArticle 2.17ofthe
Agreement onTextiles andClothing.
Sincerely,
(signed) Ambassador RitaHayes
Chief Textile Negotiator
1This document contains theAdministrative Arrangements concluded with Uruguay. Administrative
Arrangements 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/290
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URUGUAY
Thefollowing paragraphs aredrawn from theUnited States -Uruguay bilateral textile and
apparel agreement of31October 1994 andhave been agreed tobenecessary fortheproper
implementation ofrestrictions notified totheTextiles Monitoring Body under Article 2.1ofthe
Agreement onTextiles andClothing.
Flexibility Adjustments
5.(A) (I) AnySpecific Limit setoutinAnnex Bmaybeexceeded, inaddition toanyadjustment
pursuant toparagraph 5(B)inanyagreement period bycarry forward (borrowing a
portion ofthecorresponding Specific Limit from thesucceeding agreement period)
and/or carryover (theuseofanyunused meterage (shortfall) ofthecorresponding
Specific Limit fortheprevious agreement period) ofnotmore than11percent, of
which carry forward shallnotconstitute more than7percent.
(II) Nocarryover shallbeavailable forapplication inthefirstagreement period. Nocarry
forward shallbeavailable forapplication inthefinalagreement period.
(III) Anyunused meterage (shortfall) available inacategory maybeusedforcarryover
subject totheprovisions setoutinthisAgreement.
(B) During anyagreement period, theSpecific Limits setoutinAnnex Bmaybeexceeded by
"Swing" ofupto7percentforwool specific limits and6percentforcotton specific limits
provided thatacorresponding reduction insquare meters equivalent (SME) ismade inone
ormore specific limits during thecorresponding agreement period assetforth inAnnex B.
Spacing Provisions
7. TheGovernment oftheOriental Republic ofUruguay shalluseitsbestefforts tospace exports
from Uruguay totheUnited States oftextile products setoutinAnnex Aevenly throughout each
agreement period, taking intoconsideration normal seasonal factors.
USAssistance inImplementation oftheLimitation Provisions
8. TheGovernment oftheOriental Republic ofUruguay shalladminister itsexport control system
under thisAgreement. TheGovernment oftheUnited States ofAmerica mayassist theGovernment
oftheOriental Republic ofUruguay inimplementing thelimitation provisions ofthisAgreement by
controlling imports oftextile products onthebasis ofthedateofexport oftextile products setoutin
Annex A.
Overshipment Charges
9.(A) Exports fromUruguay inexcess ofauthorized limits maybedenied entryintotheUnited States
ofAmerica. Anysuchshipments denied entry maybepermitted entry intotheUnited States
ofAmerica andcharged totheapplicable limitinthesucceeding agreement period.
(B) Exports fromUruguay inexcess ofauthorized limits will,ifallowed entryintotheUnited States
ofAmerica during thatagreement period, becharged totheapplicable limitinthesucceeding
agreement period.G/TMB/N/290
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(C) Anyaction taken pursuant toparagraph 9(A)and9(B)above willnotprejudice therights of
either sideregarding consultations.
Exchange ofData
10.(A) TheGovernment oftheUnited States ofAmerica shallpromptly supply theGovernment of
theOriental Republic ofUruguay withdataofmonthly imports oftextile products setoutin
Annex AintotheUnited States ofAmerica from Uruguay.
(B) TheGovernment oftheOriental Republic ofUruguay shallpromptly supply theGovernment
oftheUnited States ofAmerica withdataonmonthly exports oftextile products setoutin
Annex Afrom Uruguay totheUnited States ofAmerica.
(C) Each Government agrees tosupply promptly anyother available statistical datanecessary to
theimplementation ofthisAgreement requested bytheother Government.
Administrative Arrangements
11. Mutuallysatisfactoryadministrativearrangementsoradjustmentsmaybemadeuponconsultation
toresolve minor problems arising intheimplementation ofthisAgreement, including differences in
points ofprocedure oroperation.
Consultation onImplementation Questions
12. TheGovernment oftheUnited States ofAmerica andtheGovernment oftheOriental Republic
ofUruguay agree toconsult upontherequest oftheother onanyquestion arising intheimplementation
ofthisAgreement.
VisaArrangement
15. TheGovernment oftheUnited States ofAmerica andtheGovernment oftheOriental Republic
ofUruguay willabide bytheVisaArrangement established byanexchange ofnotes on24August 1984
and13September 1984.
Cottage Industry Products
17. Inaccordance withArticle 12,paragraph 3,oftheArrangement, Uruguayan exports of
hand-made cottage industry products made ofhand-loomed fabrics willnotbesubject totheprovisions
ofthisAgreement.
Cooperation inthePrevention ofCircumvention
TheGovernment oftheUnited States takes noteofthefactthatthere hasnever beenanycase
ofcircumvention involving Uruguay.
18.(A) Consistent withtheirdomestic lawsandprocedures, theGovernment oftheUnited States of
America andtheGovernment oftheOriental Republic ofUruguay agree totakemeasures
necessary toaddress, toinvestigate and,where appropriate, totakelegaland/or administrative
action toprevent circumvention ofthisAgreement including bytransshipment rerouting, false
declaration concerning country oforigin orfalsification ofofficial documents.G/TMB/N/290
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(B) Bothparties agree tocooperate fully, consistent withtheirdomestic lawsandprocedures, in
instances ofcircumvention oralleged circumvention oftheAgreement toaddress problems
arising fromcircumvention andtoestablish therelevant factsintheplaces ofimport, export
and,where applicable, transshipment. Suchcooperation, totheextent consistent withdomestic
laws andprocedures, willinclude investigation ofcircumvention practices; exchange of
documents, correspondence, reports andother relevant information totheextent available;
andfacilitation ofjointplantvisits andcontacts byrepresentatives ofeither party, uponrequest
andonacase-by-case basis. When either party wishes tovisitcertain plants, theparty seeking
theplant visitorvisits shallgivewritten notice, including thereasons forsuchvisits, tothe
authorities oftheother party (i.e.,theUSCustoms authorities intheUnited States ofAmerica
ortheMinistry ofEconomy andFinances ofUruguay) twoweeks inadvance. Theplants will
notbenotified inadvance ofthevisit. When thevisitoccurs, permission fromaresponsible
representative oftheplant willbeobtained before thevisitiscommenced. Upon completion
ofsuchvisits during eachtrip,thevisiting party shall furnish areport totherespective
government officials oftheother party onthevisits.
(C) Ifeither party reasonably believes thatthisAgreement isbeing circumvented, itmayrequest
consultations toaddress thematter ormatters concerned withaview toseeking amutually
satisfactory solution. Eachparty agrees toholdsuchconsultations promptly, beginning within
30daysofreceipt byaparty ofarequest accompanied byanexplanation fortherequest from
theother party, andconcluding within 90days, unless extended bymutual agreement, and
tocooperate fullyinterms oftheelements setoutinparagraph (B)above. Anysuchactions
shallbenotified totheTSBwithfulljustification.
(D) Should theparties beunable toreach asatisfactory solution inthecourse oftheconsultations
called forunder paragraph (C),thentheGovernments oftheOriental Republic ofUruguay
andtheUnited States ofAmerica agree thatincases where clear evidence regarding
circumventionhasbeenprovided,theUnitedStatesofAmericamaydeductfromthequantitative
limits oftherelevant category orcategories inwhich transhipment hasoccurred amounts not
morethantheamount oftransshipped products ofUruguayan origin. Theamounts transshipped
shallbetheamounts andthecountry oforigin shallbethecountry oforigin sodetermined
byUSCustoms. Inaddition, theGovernments oftheOriental Republic ofUruguay andthe
United States ofAmerica agree thatdeductions from thequantitative limits oftherelevant
category orcategories inwhich transshipment hasoccurred established under thisAgreement
maybemade inthose instances inwhich: (a)theUSpossesses factual information which it
hasprovided totheauthorities oftheGovernment oftheOriental Republic ofUruguay showing
asubstantial likelihood thatcircumvention hasoccurred; (b)theUShasrequested from the
Oriental Republic ofUruguay cooperation orinformation relevant tothepossible circumvention
thatisofatypethatisavailable toorcould bereasonably obtained bytheGovernment ofthe
Oriental Republic ofUruguay, and(c)theGovernment oftheOriental Republic ofUruguay
hasnotprovided suchinformation orcooperation within theperiod forconsultation outlined
inparagraph (C).Anysuchactions shallbenotified totheTextiles Surveillance Body orits
successor withfulljustification.
(E) Should theUnited States choose toexercise itsrights under paragraph (D)todeduct anamount
oramounts fromthequantitative limits ofacountry where repeated instances ofcircumvention
havebeendemonstrated within thecurrent orimmediately preceding agreement year, thenthe
United States maydeduct from thequantitative limitfortherelevant category orcategories
inwhich transshipment hasoccurred amounts uptothree times theamounts transhipped,
provided thatsuchdeductions aredistributed equally ineachofthethree following years.
Bothparties agree thattheabove provision willberesorted tobytheUnited States onlyifnot
lessthanthreeinstancesofcircumventionbyUruguayhavebeendemonstratedduringthecurrentG/TMB/N/290
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orimmediately preceding agreement yearandnoorinadequate measures arebeing applied
byUruguay toaddress theproblem ofrepeated circumvention.
(F) Where there isclear evidence showing thatgoods originating inanother country havebeen
shipped through Uruguay totheUnited States asthough theywereproducts ofUruguay, the
Governments oftheOriental Republic ofUruguay andtheUnited States ofAmerica agree to
takeappropriate action. Suchaction mayinclude theintroduction ofrestraints intherelevant
category orcategories ordeducting from therelevant category orcategories inwhich
transshipment hasoccurred theamount ofgoods soshipped from thequantitative limits
established forthecurrent agreement yearunder thisAgreement forshipments originating in
Uruguay. Anysuchaction, together withtheirtiming andscope, maybetaken onlyafter
consultation heldwithaviewofarriving atamutually satisfactory solution andshallbenotified
totheTextiles Surveillance Body oritssuccessor withfulljustification. Suchconsultations
willbeheldpromptly, beginning within 30daysofreceipt byaparty ofarequest accompanied
byanexplanation fortherequest fromtheother party, andconcluding within 90days, unless
extended bymutual agreement. Should theparties beunable toreach asatisfactory solution,
thentheGovernments oftheOriental Republic ofUruguay andtheUnited States ofAmerica
agree thatincases where clearevidence regarding circumvention hasbeenprovided, theUnited
States mayintroduce arestraint or,where arestraint already exists, maydeduct from the
quantitative limits established under thisAgreement anamount equivalent totheamount of
product transhipped through Uruguay inthecategory inwhich transshipment hasoccurred.
(G) Partiesnotethatsomecasesofcircumventionmayinvolveshipmentstransitingthroughcountries
orplaces withnochanges oralterations made tothegoods contained insuchshipments inthe
places oftransit. They notethatitmaynotbegenerally practicable forsuchplaces oftransit
toexercise control oversuchshipments.
(H) Parties agree thatfalse declaration concerning fibre content, quantities, description or
classifications ofmerchandise alsofrustrates theobjective ofthisAgreement. Where there
isclearevidence thatanysuchfalsedeclaration hasbeenmade forpurposes ofcircumvention,
bothparties agree totakeappropriate measures, consistent withtheir domestic lawsand
procedures, against exporters orimporters involved. Should either party believe thatthis
Agreement isbeing circumvented bysuch false declaration andthatno,orinadequate,
administrative measures arebeing applied toaddress and/or totakeaction against such
circumvention, thatpartyshould consult promptly withthepartyinvolved withaviewtoseeking
amutually satisfactory solution. Such consultations should beheldpromptly, beginning 30
daysafterreceipt byaparty ofarequest accompanied byanexplanation fortherequest from
theother party, andconcluding within 90days, unless extended bymutual agreement. Should
theparties beunable toreach asatisfactory solution, thentheGovernments oftheOriental
Republic ofUruguay andtheUnited States ofAmerica agree thatincases where clearevidence
regarding suchfalsedeclarations hasbeenprovided, thentheUnited States maydeduct from
thequantitative limits established forthecurrent agreement yearanamount equivalent tothe
amount ofproduct subject tothefalsedeclaration orclassification. Thisprovision isnot
intended toprevent parties from making technical adjustments when inadvertent errors in
declarations havebeenmade. Anysuchaction shallbenotified totheTextiles Surveillance
Body oritssuccessor withfulljustification.
(I) Intheevent ofaneedarising totakerecourse toanyadjustment assetoutinparagraphs (D),
(E),(F)and(H)theUnited States willexplore withUruguay allpossible avenues forfinding
amutually satisfactory solution before taking suchaction, together withitstiming andscope.
Action taken under Paragraph (D),(E),(F),or(H)maybereferred byeither party tothe
Textiles Surveillance Body oritssuccessor forrecommendation.G/TMB/N/290
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ANNEX A
CATEGORY DESCRIPTION FACTOR MEASURE
334 Other Men'sandBoys'Coats 34.5 Dozen
335 Women 's&Girls'Coats 34.5 Dozen
410 Woven Fabrics 1.0 m2
410A Woollen Fabric 1.0 m2
410B Worsted Fabric 1.0 m2
433 Men's&Boys'Wool Suit-
typeCoats 30.10 Dozen
434 Men's&Boys'Other Wool
Coats 45.10 Dozen
435 Women 's&Girls'Wool
Coats 45.10 Dozen
442 Wool Skirts 15.0 Dozen