WORLD TRADE
ORGANIZATIONG/TMB/N/63/Add.13/Suppl.1
29 May 2002
(02-2931)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Notification under Article 2.1
UNITED STATES
Supplement
The Textiles Monitoring Body has received a supplement to the notification made by the
United States pursuant to Article 2.1
The TMB, in accordance with Article 2.2, is circulating this notification to WTO Members
for their information.G/TMB/N/63/ Add.13/Suppl.1
Page 2
Permanent Mission of the United States
to the World Trade Organization
Geneva
14 May 2002
The Honorable András Szepesi Chairman
Textiles Monitoring Body
World Trade Organization
Rue de Lausanne 154
1211 Geneva
Dear Mr. Chairman,
Thank you for your letter of 22 April, concerning the notification to the Textiles Monitoring
Body (TMB) by the United States under Article 2.1 of the Agreement on Textiles and Clothing (ATC)concerning quantitative restrictions maintained on imports from Chinese Taipei
(G/TMB/N/63/Add.13).  Responses  to your questions follow:
1. Enclosed with this letter is a table showing the quantitative restrictions that were eliminated
on 1 January 2002 as a result of the application of the provisions of ATC Article 2.6 andArticle 2.8.a and 2.8.b.
2. The Working Party report on the accession of Chinese Taipei provides that the increase in
growth rates provided for in Articles 2.13 and 2.14 of the ATC are to be applied from the date
of accession, as appropriate.  Chinese Taipei acceded to the WTO on 1 January 2002.
Accordingly, the growth rates were incr eased by growth rates by 27 per cent.
3. The requested information regarding conversion factors is being provided in the notification
by the United States under Article 2.17.
1
4. As required by Article 2.16, all the flexibility provisions that were in effect under the bilateral
textile agreement will remain in effect under the ATC, and the restriction on the specific capson the combined used of carryover and carry forward as indicated in our notification will be
retained, however, there is no quantitative limit on the combined use of swing, carryover and
carry forward.
5. Explanation of difference between swing, sp ecial swing etc: Swin g - Annual flexibility
increases at designated percentages, either between group limits (a group limit borrows from
another, up to designated percentages), or within group limits (specific limits within a group
limit may be increased by designated percentages, as long as the group limit is not exceeded).
Swing between group limits requires that a decrease in square meters equivalent (sme) be
made in one group limit, in a quantity that is equal to the amount of the increase in the othergroup limit.  Swing for specific limits, within group limits, as is the case with respect to
Chinese Taipei, does not require a decrease in sme to any specific category limit at quantities
                                                     
1 See G/TMB/N/449.G/TMB/N/63/ Add.13/Suppl.1
Page 3
equal to the swing increases provided to ot her categories in the same group, but since the
group limit does not increase for that swing, th ere is relatively less for the other categories to
ship within the group.
Special Swing - Although the term not used in our agreement with Chinese Taipei, normally
means the same type of flexibility as the swing described above, only in quantities or
percentages beyond the normally designated amounts.
Additional Swing - In our agreement with Chinese Taipei, this term simply refers to
additional amounts of swing that may be allowed to the annual specific limits for designated
categories, beyond the normally designated amounts of swing allowed to those limits.
Special Shift - In our agreement with Chinese Taipei, this term refers to designated
percentages that specific limits may be increased and the designated donor category for that
special shift quantity.  The amounts shifted between limits are in square meters equivalent,
except noted to be in dozens.
6. Full product descriptions, as requested, is being provided in the notification by the
United States under paragraph 2.17.
7. Growth rates for subgroups I and II:  Annual increases to Subgroup Limits I and II are derived
as follows:  Subgroup limit I comprises categories 200, 219, 313, 314, 315, 361, 369-S, and604.  The Subgroup I limit is calculated by first summing the limits (in square meter
equivalents) of these categories after the annual growth rate is applied and increased by
7 per cent swing and then reducing that sum by a constant of 16,271,488 square meter
equivalents.  Subgroup II comprises ca tegories 333/334/335, 341, 342, 350/650, 351,
447/448, 636, 641, and 651.  Category 350/650 was integrated for Chinese Taipei on1 January 2002, and therefore was removed from Subgroup II for purposes of calculating
Chinese Taipei’s year 2002 quotas. The Subgroup II limit is calculated by first summing the
limits (in square meter equivalents) of these categories after the annual growth rate is applied,
and increased by 7 percent swing, and then reducing that sum by a constant of 10,143,845
square meter equivalents.  This methodology was agreed to by the United States and Chinese
Taipei on 10 February 1992.
I appreciate the opportunity to provide responses to your questions and will be pleased to
reply to additional questions, if any arise.
Sincerely,
(Signed)
David M. Spooner
Special Textile NegotiatorG/TMB/N/63/ Add.13/Suppl.1
Page 4Chinese Taipei Stages 1, 2, 3 Integration, Less Folklore
1999 1999 2000 2000 1999-2000 Average 2001 Limit Trade 27% Accl. 2002 Limit
Category Rest Stage Label Type SMEF Units SME Units SME Units SME Units Adjustment Growth Rate Units
Group I G 590,414,162 -386,837,929 1.27000% 206,161,651
222 3  KNIT FABRIC G 12.3 12,013,575 147,766,973 7,392,224 90,924,355 9,702,900 119,345,670
223 3  NON-WOVEN FABRICS G 14 374,242 5,239,388 426,816 5,975,424 400,529 5,607,406
229 2  SPECIAL PURPOSE FABRIC G 13.6 4,624,788 62,897,117 5,053,635 68,729,436 4,839,212 65,813,283
300/301/607 CARDED/COMBED, OTHER STPLE FIB YARN SL 8.5 1,766,924 -12,193 1.90500% 1,788,159
607 3 OTHER STP FIB YARN G 6.5 0 0 24,385 158,503 12,193 79,255 1,472,437 (All) No Limit
369 2  --Other G 8.5 64,327 546,780 146 1,241 32,237 274,015
369-L/670-L/870 3 SL 50,978,346 (All) No Limit
369  -L 3  --Luggage SL 3.8 419,495 1,594,081 235,029 893,110 327,262 1,243,596
670  -L 3  --Luggage SL 3.8 15,846,368 60,216,198 14,347,130 54,519,094 15,096,749 57,367,646
870 3  LUGGAGE, SILK & VEG. BLENDS SL 3.8 1,015,277 3,858,053 614,361 2,334,572 814,819 3,096,312
369 3  --Other G 8.5 5,351,176 45,484,996 5,997,415 50,978,028 5,674,296 48,231,516
369  -D 3  --Dishtowels G 8.5 1,048,240 8,910,040 1,085,524 9,226,954 1,066,882 9,068,497
369  -F 3  --FLATGOODS ONLY G 8.5 21,745 184,833 22,834 194,089 22,290 189,465
369  -H 3  --HANDBAGS ONLY G 8.5 2,251 19,134 8,761 74,469 5,506 46,801
465 2  WOOL FLOOR COVERINGS G 1 13 13 660 660 337 337
469 3  OTHER WOOL MANUFACTURES G 3.7 0 0 0 0 0 0
600 3  TEXTURED FILAMENT YARN G 6.5 780,899 5,075,844 791,807 5,146,746 786,353 5,111,295
606 3  NON-TEXTURED FILAMENT YARN G 20.1 5,754 115,655 3,264 65,606 4,509 90,631
665 2  MMF FLOOR COVERINGS G 1 23,013 23,013 41,191 41,191 32,102 32,102
666 3  OTHER MMF FURNISHINGS G 14.4 4,484,153 64,571,803 4,072,583 58,645,195 4,278,368 61,608,499
669 2  --Other G 14.4 191,185 2,753,064 298,394 4,296,874 244,790 3,524,976
669  -P 3  --Bags SL 14.4 2,960 42,624 19,238 277,027 11,099 159,826 353,724 (All) No Limit
669  -N 3  --Other G 14.4 185,729 2,674,498 154,098 2,219,011 169,914 2,446,762
669  -T 3  --Tents SL 14.4 202,174 2,911,306 156,590 2,254,896 179,382 2,583,101 1,149,681 (All) No Limit
670  -H 3  --Handbags SL 3.7 57,830 213,971 202,237 748,277 130,034 481,126 19,520,976 (All) No Limit
670  -F 3  --Flatgoods G 3.7 111,513 412,598 124,060 459,022 117,787 435,812
386,837,929G/TMB/N/63/ Add.13/Suppl.1
Page 51999 1999 2000 2000 1999-2000 Average 2001 Limit Trade 27% Accl. 2002 Limit
Category Rest Stage Label Type SMEF Units SME Units SME Units SME Units Adjustment Growth Rate Units
Group II G 755,000,000 -132,624,620 0 622,375,380
239 2  BABIES' GARM. & CLOTH. ACCESS. SL 6.3 4,185,767 26,370,332 4,939,832 31,120,942 4,562,800 28,745,640 5,889,744 -4,562,800 1.90500% 1,3 52,222
330 2  COTTON HANDKERCHIEFS G 1.4 1,750 2,450 1,716 2,402 1,733 2,426
331 3  Knit Gloves SL 2.9 432,708 1,254,853 310,484 900,404 371,596 1,077,628 514,862 -371,596 0.63500% 144,176
349 2  BRASSIERES, OTHER BODY SUPPORT GAR G 4 57,455 229,820 40,803 163,212 49,129 196,516
353 2  M&B DOWN-FILLED COATS G 34.5 5 173 7 242 6 207
354 2  W&G DOWN-FILLED COATS G 34.5 8 276 0 0 4 138
359  -B 3  --Body Support Garments G 8.5 4,071 34,604 8,430 71,655 6,251 53,134
359-H/659-H 3 --Headwear SL 4,867,714 -2,528,091 0.63500% 2,354,480
359  -H 3  --Headwear SL 11.5 2,592,373 29,812,290 2,463,809 28,333,804 2,528,091 29,073,047
359  -K 3  --Knit Neckwear G 8.5 0 0
359  -P 3  --Pantyhose & Tights G 8.5 25,217 214,345 49,291 418,974 37,254 316,659
359  -S 3  --Shawls & Scarves G 8.5 4,050 34,425 508 4,318 2,279 19,372
359  -VS 3   --Visors G 8.5 171,240 1,455,540 388,663 3,303,636 279,952 2,379,592
431 3  WOOL GLOVES/MITTENS G 1.8 68,499 123,298 58,867 105,961 63,683 114,629
432 2  WOOL HOSIERY G 2.3 6,781 15,596 0 0 3,391 7,799
439 2  BABIES' GARMENTS/CLOTHING ACCESS. G 6.3 75 473 483 3,043 279 1,758
459  -B 3  --Body Support Garments G 3.7 13 48 0 0 7 26
459  -S 3  --Shawls & Scarves G 3.7 9,973 36,900 23,187 85,792 16,580 61,346
630 2  MMF HANDKERCHIEFS G 1.4 1,000 1,400 1,000 1,400 1,000 1,400
631 3  Knit Gloves SL 2.9 5,245,031 15,210,590 5,183,895 15,033,296 5,214,463 15,121,943 5,165,759 -5,214,463 No Limit
632 2  MMF HOSIERY G 3.8 7,125,212 27,075,806 8,573,277 32,578,453 7,849,245 29,827,131
649 3  MMF BRAS & OTH BODY SUPPORT GARM G 4 239,196 956,784 677,566 2,710,264 458,381 1,833,524
653 2  M&B MMF DOWN-FILLED COATS G 34.5 259 8,936 8,018 276,621 4,139 142,796
654 2  W&G MMF DOWN-FILLED COATS G 34.5 108 3,726 169 5,831 139 4,796
659 2  --Other G 14.4 10,035 144,504 7,799 112,306 8,917 128,405
659 3  --Other G 14.4 224,773 3,236,731 220,869 3,180,514 222,821 3,208,622
659  -K 3  --Knit Neckwear G 14.4 882 12,701 0 0 441 6,350
659  -P 3  --Pantyhose & Tights G 14.4 520,960 7,501,824 499,402 7,191,389 510,181 7,346,606
659  -S 3  --Shawls & Scarves G 14.4 383,090 5,516,496 433,167 6,237,605 408,129 5,877,058
831 3  GLOVES & MITTENS, SILK & VEG BLEND G 2.9 426 1,235 1,608 4,663 1,017 2,949
832 2  HOSIERY, SILK & VEG BLENDS G 3.8 185 703 2,300 8,740 1,243 4,723G/TMB/N/63/ Add.13/Suppl.1
Page 61999 1999 2000 2000 1999-2000 Average 2001 Limit Trade 27% Accl. 2002 Limit
Category Rest Stage Label Type SMEF Units SME Units SME Units SME Units Adjustment Growth Rate Units
833 3  M&B SUIT-TYPE COATS, SLK & VEG G 30.3 0 0 0 0 0 0
834 3  OTHER M&B COATS, SILK & VEG G 34.5 1 35 0 0 1 35
835 3  W&G COATS, SILK & VEG BLENDS SL 34.5 4,549 156,941 1,121 38,675 2,835 97,808 20,483 (All) No Limit
836 3  DRESSES, SILK & VEG BLENDS G 37.9 3,449 130,717 2,846 107,863 3,148 119,309
838 3  KNIT SHIRTS & BLOUSES, SILK & VEG G 11.7 15,805 184,919 10,712 125,330 13,259 155,130
839 2  BABIES' SILK GARM & CLOTH ACCESS G 6.3 6,395 40,289 2,338 14,729 4,367 27,512
840 3  N-KNIT SHIRTS & BLOUSES, SILK&VEG G 16.7 7,734 129,158 14,461 241,499 11,098 185,337
842 3  SKIRTS, SILK & VEG. BLENDS G 14.9 6,650 99,085 3,756 55,964 5,203 77,525
844 3  W&G SUITS, SILK & VEG BLENDS G 3.76 2,868 10,784 300 1,128 1,584 5,956
847 3  TROUSERS/BREECHES/SHORTS, SILK&VEG G 14.9 21,571 321,408 39,025 581,473 30,298 451,440
858 3  NECKWEAR, SILK & VEG BLENDS G 6.6 36 238 0 0 18 119
859 2  --Other G 12.5 30,265 378,313 39,603 495,038 34,934 436,675
859  -B 3  --Bras ... G 12.5 54 675 42 525 48 600
859  -S 3  --Shawls & Scarves G 12.5 0 0 328 4,100 164 2,050
Group II Subgroup G 78,202,812 -5,508,904
350/650 3 ROBES SL 139,460 (All) No Limit
350 3  COTTON DRESSING GOWNS, ROBES ETC. SL 42.6 42,112 1,793,971 32,128 1,368,653 37,120 1,581,312
650 3  MMF ROBES, DRESSING GOWNS, ETC. SL 42.6 79,530 3,387,978 104,863 4,467,164 92,197 3,927,592
5,508,904
132,624,620
Limits Not in Group
622 3  GLASS FIBER FABRIC SL 1 776,712 776,712 2,362,670 2,362,670 1,569,691 1,569,691 2,650,000 (All) No Limit
Notes:
- Martial arts uniforms are already exempt  for Chinese Taipei, and are not deducted from Group II here.- For luggage and headwear, conversion factors used is merged factor agreed in bilateral agreement.
Flex:
CO/CF:  Groups max 3%, not more than 1% CO.  SLs max 2%, not more than 1% CO.Categories 340, 633/4/5, 633/4, and 635 entitled to 7.15% CF.G/TMB/N/63/ Add.13/Suppl.1
Page 7Swing:
5% for Group I limit, 1% for Group II limit.
1% for categories 633/4/5, 633/4, and 635.
2.5% for part category 670-H.5% for categories 239, 331, 340, 341, 359-H/659-H, 369-L/670-L/870, 433, 434, 438, 440, 442, 443, 444, 445/6, 447/8, 638/9, 641 , 641-Y, and 647/8.
6% for categories 333/4/5, 335, 338/9, 347/8, 347-W/348-W, 435, and 604.
6.5% for category 313.
None for categories 647-W/648-W, 645/6. 640, 640-Y, and 845.
7% for all other specific limits.
Special Shift:
5% between categories 331 and 631.20% between categories 336 and 636.
10% to category 338/9 from category 638/9.
Additional 10% to category 338/9 provided that four times the second 10% added to category 338/9, in dozens, is deducted from c ategory 638/9.
10% to category 340 from category 640.10% between categories 341 and 641.20% between categories 342 and 642.15% to category 347/8 from category 647/8.
25% between categories 351 and 651.
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