Textile and Apparel Goods
Section 1: Scope and Coverage
1. This Annex applies to the textile and apparel goods set out
in Appendix 1.1.
2. In the event of any inconsistency between this Agreement and
the Arrangement Regarding International Trade in Textiles (Multifiber
Arrangement), as amended and extended, including any amendment
or extension after January 1, 1994, or any other existing or future
agreement applicable to trade in textile or apparel goods, this
Agreement shall prevail to the extent of the inconsistency, unless
the Parties agree otherwise.
Section 2: Tariff Elimination
1. Except as otherwise provided in this Agreement, each Party
shall progressively eliminate its customs duties on originating
textile and apparel goods in accordance with its Schedule to Annex
302.2 (Tariff Elimination), and as set out for ease of reference
in Appendix 2.1.
2. For purposes of this Annex:
(b) for purposes of determining which rate of customs duty and
staging category is applicable to an originating textile or apparel
good, a good shall be considered a good of a Party
(ii) in the event of an agreement between the Parties pursuant
to
Annex 311 as determined by such agreement. 3. An importing Party and an exporting Party may identify at any
time particular textile and apparel goods that they mutually agree
fall within:
(b) hand-made cottage industry goods made of such hand-loomed fabrics;
or
(c) traditional folklore handicraft goods. The importing Party shall grant duty-free treatment to goods so
identified, if certified by the competent authority of the exporting
Party.
4. Appendix 2.4 applies to the Parties specified in that Appendix
respecting the elimination of tariffs on certain textile and apparel
goods.
Section 3: Import and Export Prohibitions, Restrictions and
Consultation Levels
1. Each Party may maintain a prohibition, restriction or consultation
level only in accordance with Appendix 3.1 or as otherwise provided
in this Annex.
2. Each Party shall eliminate any prohibition, restriction or
consultation level on a textile or apparel good that otherwise
would be permitted under this Annex if that Party is required
to eliminate such measure as a result of having integrated that
good into the GATT as a result of commitments undertaken by that
Party under any successor agreement to the Multifiber Arrangement.
Section 4: Bilateral Emergency Actions (Tariff Actions)
1. Subject to paragraphs 2 through 5 and during the transition
period only, if, as a result of the reduction or elimination of
a duty provided for in this Agreement, a textile or apparel good
originating in the territory of a Party, or a good that has been
integrated into the GATT pursuant to a commitment undertaken by
a Party under any successor agreement to the Multifiber Arrangement
and entered under a tariff preference level set out in Appendix
6, is being imported into the territory of another Party in such
increased quantities, in absolute terms or relative to the domestic
market for that good, and under such conditions as to cause serious
damage, or actual threat thereof, to a domestic industry producing
a like or directly competitive good, the importing Party may,
to the minimum extent necessary to remedy the damage or actual
threat thereof:
(b) increase the rate of duty on the good to a level not to exceed
the lesser of
(ii) the MFN applied rate of duty in effect on December 31, 1993. 2. In determining serious damage, or actual threat thereof, the
Party:
(b) shall not consider changes in technology or consumer preference
as factors supporting a determination of serious damage or actual
threat thereof. 3. A Party shall deliver without delay to any Party that may be
affected by an emergency action taken under this Section written
notice of its intent to take such action, and on request shall
enter into consultations with that Party.
4. The following conditions and limitations apply to any emergency
action taken under this Section:
(b) no action may be taken by a Party against any particular good
originating in the territory of another Party more than once during
the transition period; and
(c) on termination of the action, the rate of duty shall be the
rate that, according to the Schedule for the staged elimination
of the tariff, would have been in effect one year after the initiation
of the action, and beginning January 1 of the year following the
termination of the action, at the option of the Party that has
taken the action
(ii) the tariff shall be eliminated in equal annual stages ending
on the date set out in that Party's Schedule to Annex 302.2 for
the elimination of the tariff. 5. The Party taking an action under this Section shall provide
to the Party against whose good the action is taken mutually agreed
trade liberalizing compensation in the form of concessions having
substantially equivalent trade effects or equivalent to the value
of the additional duties expected to result from the action. Such
concessions shall be limited to the textile and apparel goods
set out in Appendix 1.1, unless the Parties otherwise agree. If
the Parties concerned are unable to agree on compensation, the
exporting Party may take tariff action having trade effects substantially
equivalent to the action taken under this Section against any
goods imported from the Party that initiated the action under
this Section. The Party taking the tariff action shall only apply the action
for the minimum period necessary to achieve the substantially
equivalent effects.
6. For purposes of this Section, a good originating in the territory
of a Party shall be determined in accordance with Section 2.2.
7. Paragraphs 1 through 5 shall also apply to textile and apparel
goods described in Appendix 2.4.
Section 5: Bilateral Emergency Actions (Quantitative Restrictions)
1. Subject to Appendix 5.1, a Party may take bilateral emergency
action against non-originating textile or apparel goods of another
Party in accordance with this Section and Appendix 3.1.
2. If a Party considers that a non-originating textile or apparel
good, including a good entered under a tariff preference level
set out in Appendix 6, is being imported into its territory from
a Party in such increased quantities, in absolute terms or relative
to the domestic market for that good, under such conditions as
to cause serious damage, or actual threat thereof, to a domestic
industry producing a like or directly competitive good in the
importing Party, the importing Party may request consultations
with the other Party with a view to eliminating the serious damage
or actual threat thereof.
3. The Party requesting consultations shall include in its request
for consultations the reasons that it considers demonstrate that
such serious damage or actual threat thereof to its domestic industry
is resulting from the imports of the other Party, including the
latest data concerning such damage or threat.
4. In determining serious damage, or actual threat thereof, the
Party shall apply Section 4(2).
5. The Parties concerned shall begin consultations within 60 days
of the request for consultations and shall endeavor to agree on
a mutually satisfactory level of restraint on exports of the particular
good within 90 days of the request, unless the consulting Parties
agree to extend this period. In reaching a mutually satisfactory
level of export restraint, the consulting Parties shall:
(b) consider the history of trade in textile and apparel goods
between the consulting Parties, including previous levels of trade;
and
(c) seek to ensure that the textile and apparel goods imported
from the territory of the exporting Party are accorded equitable
treatment as compared with treatment accorded like textile and
apparel goods from non-Party suppliers. 6. If the consulting Parties do not agree on a mutually satisfactory
level of export restraint, the Party requesting consultations
may impose annual quantitative restrictions on imports of the
good from the territory of the other Party, subject to paragraphs
7 through 13.
7. Any quantitative restriction imposed under paragraph 6 shall
be no less than the sum of:
(b) 20 percent of such quantity for cotton, man-made fiber and
other non-cotton vegetable fiber good categories, and six percent
for wool good categories. 8. The first period of any quantitative restriction imposed under
paragraph 6 shall begin on the day after the date on which the
request for consultations was made and terminate at the end of
the calendar year in which the quantitative restriction is imposed.
Any quantitative restriction that is imposed for a first period
of less than 12 months shall be prorated to correspond to the
time remaining in the calendar year in which the restriction is
imposed, and the prorated amount may be adjusted in accordance
with the flexibility provisions set out in paragraphs 8(b) and
(c) of Appendix 3.1.
9. For each successive calendar year that the quantitative restriction
imposed under paragraph 6 remains in effect, the Party imposing
it shall:
(b) accelerate the growth rate for quantitative restrictions on
cotton, man-made fiber and non-cotton vegetable fiber textile and
apparel goods if required by any successor agreement to the Multifiber
Arrangement,
and the flexibility provisions set out in paragraphs
8(b) and (c) of Appendix 3.1 apply.
10. A quantitative restriction imposed under paragraph 6 before
July 1 in any calendar year may remain in effect for the remainder
of that year, plus two additional calendar years. Such a restriction
imposed on or after July 1 in any calendar year may remain in
effect for the remainder of that year, plus three additional calendar
years. No such restriction may remain in effect beyond the transition
period.
11. No Party may take an emergency action under this Section with
respect to any particular textile or apparel non-originating good
against which a quantitative restriction is in effect.
12. No Party may adopt or maintain a quantitative restriction
under this Section on a particular textile or apparel good that
otherwise would be permitted under this Annex, if that Party is
required to eliminate such measure as a result of having integrated
that good into the GATT as a result of commitments undertaken
by that Party pursuant to any successor agreement to the Multifiber
Arrangement.
13. No Party may take a bilateral emergency action after the expiration
of the transition period with respect to cases of serious damage,
or actual threat thereof, to domestic industry arising from the
operation of this Agreement except with the consent of the Party
against whose good the action would be taken.
Section 6: Special Provisions
Appendix 6 sets out special provisions applicable to certain textile
and apparel goods.
Section 7: Review and Revision of Rules of Origin 1.
(b) If the consulting Parties fail to reach a mutually satisfactory
solution within 90 days of a request for consultations, on request
of any Party the rule of origin applicable to subheading 6212.10
shall change to the rule of origin set out in Annex 401 applicable
to headings 62.06 through 62.11 with respect to trade between
the requesting Party and the other Parties. Any such change shall
be effective 180 days after the request. The Parties shall take
measures to ease any resulting administrative burden on producers.
(c) Unless the Parties agree otherwise, at any time after the
completion of consultations held under subparagraph (a) and during
the transition period only, a Party that has requested such consultations
may make one additional request for consultations under subparagraph
(a) and take action under subparagraph (b). 2. (a) On request of any Party, the Parties shall consult to consider
whether particular goods should be subject to different rules
of origin to address issues of availability of supply of fibers,
yarns or fabrics in the free trade area.
(c) The Parties shall endeavor to conclude consultations within
60 days of the request. An agreement between two or more Parties
resulting from the consultations shall supersede any prior rule
of origin for such good when approved by each such Party in accordance
with Article 2202(2) (Amendments). If no agreement is reached,
a Party may have recourse to paragraph B.8 of Appendix 6.
(d) Further to subparagraph (a), on request of any Party, the
Parties shall consult to consider whether the rules of origin
set out in Annex 401 applicable to the following provisions should
be amended in view of increasing availability of supply of relevant
yarns or fabrics within the free trade area:
(ii) provisions (a) through (i) of the rule of origin for subheadings
6205.20 through 6205.30,
(iii) goods of subheadings 6107.21, 6108.21 and 6108.31, wholly
of fabric of Canadian tariff item 6002.92.10, Mexican tariff item
6002.92.01, and U.S. tariff item 6002.92.10, and exclusive of
collar, cuffs, waistband, elastic or lace;
(iv) note 2 to Chapter 62 of Annex 401, and
(v) Canadian tariff item 6303.92.10, Mexican tariff item 6303.92.01
and U.S. tariff item 6303.92.aa. 3. The Parties shall review the rules of origin applicable to
textile and apparel goods within five years of the date of entry
into force of this Agreement to take into account the effect of
increasing global competition on textile and apparel goods and
the implications of any integration into the GATT of textile and
apparel goods pursuant to any successor agreement to the Multifiber
Arrangement. The Parties shall give particular consideration to
operative rules in other economic association or integration agreements
and developments relating to textile and apparel production and
trade.
Section 8: Labelling Requirements
The Subcommittee on Labelling of Textile and Apparel Goods established
under Article 913(5) shall perform the functions set out in Annex
913.5.a4.
Section 9: Trade in Worn Clothing and Other Worn Articles
1. The Parties hereby establish a Committee on Trade in Worn Clothing,
comprising representatives of each Party. The Committee shall:
(b) act in a transparent manner and, if no member of the Committee
formally objects, make recommendations to the Commission. 2. The Committee shall assess the potential benefits and risks
that may result from the elimination of existing restrictions
on trade between the Parties in worn clothing and other worn articles,
as defined in heading 63.09 of the HS, including the effects on
business and employment opportunities, and on the market for textile
and apparel goods in each Party.
3. A Party may maintain restrictions in effect on the date of
entry into force of this Agreement on the importation of worn
clothing and other worn articles classified under heading 63.09
of the HS, unless the Parties agree otherwise on the basis of
the recommendations presented to the Commission by the Committee
on Trade in Worn Clothing.
Section 10: Definitions
For purposes of this Annex:
average yarn number, as applied to woven fabrics of cotton
or man-made fibers, means the average yarn number of the yarns
contained therein. In computing the average yarn number, the length
of the yarn is considered to be equal to the distance covered
by it in the fabric, with all clipped yarn being measured as if
continuous and with the count being taken of the total single
yarns in the fabric including the single yarns in any multiple
(folded) or cabled yarns. The weight shall be taken after any
excessive sizing is removed by boiling or other suitable process.
Any one of the following formulas can be used to determine the
average yarn number:
when:
B is the breadth (width) of the fabric in centimeters,
Y is the meters (linear) of the fabric per kilogram,
T is the total single yarns per square centimeter,
S is the square meters of fabric per kilogram,
Z is the grams per linear meter of fabric, and
Z' is the grams per square meter of fabric.
Fractions in the resulting "average yarn number" shall
be disregarded. category means a grouping of textile or apparel goods,
and as set out in Appendix 10.1 for the Parties specified in that
Appendix;
consultation level means a level of exports for a particular
textile or apparel good that may be adjusted in accordance with
paragraph 7 of Appendix 3.1 and includes a designated consultation
level, but does not include a specific limit;
exporting Party means the Party from whose territory a
textile or apparel good is exported;
flexibility provisions means the provisions set out in
paragraphs 8(b) and (c) of Appendix 3.1;
importing Party means the Party into whose territory a
textile or apparel good is imported;
integrated into the GATT means subject to the obligations
of the General Agreement on Tariffs and Trade, an agreement under
the GATT or any successor agreements;
specific limit means a level of exports for a particular
textile or apparel good that may be adjusted in accordance with
paragraph 8 of Appendix 3.1;
square meters equivalent (SME) means that unit of measurement
that results from the application of the conversion factors set
out in Schedule 3.1.3 to a primary unit of measure such as unit,
dozen or kilogram;
tariff preference level means a mechanism that provides
for the application of a customs duty at a preferential rate to
imports of a particular good up to a specified quantity, and at
a different rate to imports of that good that exceed that quantity;
transition period means the 10year period beginning on
January 1, 1994; and
wool apparel means:
(b) woven apparel in chief weight of man-made fibers containing
36 percent or more by weight of wool; and
(c) knitted or crocheted apparel in chief weight of man-made fibers
containing 23 percent or more by weight of wool. Appendix 1.: List of Goods Covered by Annex 300-B
The descriptions listed in this Appendix are provided for ease
of reference only. For legal purposes, coverage shall be determined
according to the terms of the Harmonized System.
HS No. Description
Chapter 30 Pharmaceutical Products
Chapter 39 Plastics and articles thereof
Chapter 42 Articles of leather; saddlery and harness; travel
goods, handbags and similar containers
Chapter 50 Silk
Chapter 51 Wool, fine or coarse animal hair, horsehair yarn
and fabric
Continue on to Appendix 1: Chapter 52 - Cotton
If you have questions or comments, please e-mail
[email protected](a) a textile or apparel good shall be considered an originating
good if the applicable change in tariff classification set out
in Chapter Four (Rules of Origin) has been satisfied in the territory
of one or more of the Parties in accordance with Article 404 (Accumulation);
and
(i) as determined by each importing Party's regulations, practices
or procedures, except that
(a) hand-loomed fabrics of a cottage industry;
(a) suspend the further reduction of any rate of duty provided
for under this Agreement on the good; or
(i) the most-favored-nation (MFN) applied rate of duty in effect
at the time the action is taken, and
(a) shall examine the effect of increased imports on the particular
industry, as reflected in changes in such relevant economic variables
as output, productivity, utilization of capacity, inventories,
market share, exports, wages, employment, domestic prices, profits
and investment, none of which is necessarily decisive; and
(a) no action may be maintained for a period exceeding three years
or, except with the consent of the Party against whose good the
action is taken, have effect beyond the expiration of the transition
period;
(i) the rate of duty shall conform to the applicable rate set
out in that Party's Schedule to Annex 302.2, or
(a) consider the situation in the market in the importing Party;
(a) the quantity of the good imported into the territory of the
Party requesting consultations from the Party that would be affected
by the restriction, as reported in general import statistics of
the importing Party, during the first 12 of the most recent 14
months preceding the month in which the request for consultations
was made; and
(a) increase it by six percent for cotton, man-made fiber and noncotton
vegetable fiber textile and apparel goods, and by two percent
for wool textile and apparel goods, and
(a) The Parties shall monitor the effects of the application of
the rule of origin set out in Annex 401 applicable to goods of
subheading 6212.10 of the Harmonized System (HS). No earlier than
April 1, 1995, a Party may request consultations with the other
Parties to seek a mutually satisfactory solution to any difficulties
that it considers result from the application of that rule of
origin.
(b) In the consultations, each Party shall consider all data presented
by a Party showing substantial production in its territory of
the particular good. The consulting Parties shall consider that
substantial production has been shown if that Party demonstrates
that its domestic producers are capable of supplying commercial
quantities of the good in a timely manner.
(i) Canadian tariff item 5407.60.10, Mexican tariff item 5407.60.02
and U.S. tariff item 5407.60.22,
(a) include or consult with a broadly representative group drawn
from the manufacturing and retailing sectors in each Party; and
BYT , 100T , BT or ST
N = ----- ------ ---- -----
1,000 Z' Z 10
N is the average yarn number,
(a) apparel in chief weight of wool;
3005 90 Wadding, gauze, bandages and the like
ex 3921 12 (Woven, knitted or nonwoven fabric coated, covered or laminated with
plastics)
ex 3921 13
ex 3921 90
ex 4202 12 (Luggage, handbags and flatgoods with an outer surface predominantly
of textile materials)
ex 4202 22
ex 4202 32
ex 4202 92
5004 00 Silk yarn (other than yarn spun from silk waste) not for retail sale
5005 00 Yarn spun from silk waste, not for retail sale
5006 00 Silk yarn and yarn spun from silk waste, for retail sale; silkworm gut
5007 10 Woven fabric of noil silk
5007 20 Woven fabric of silk or silk waste, other than noil silk, 85% or more of
such fibers
5007 90 Woven fabric of silk, nes
5105 10 Carded wool
5105 21 Combed wool in fragments
5105 29 Wool tops and other combed wool, other than combed wool in fragments
5105 30 Fine animal hair, carded or combed
5106 10 Yarn of carded wool, >=85% wool, not for retail sale
5106 20 Yarn of carded, wool, 85% wool, not for retail sale
5107 10 Yarn of combed wool, >=85% wool, not for retail sale
5107 20 Yarn of combed wool, <85% wool, not for retail sale
5108 10 Yarn of carded fine animal hair, not for retail sale
5108 20 Yarn of combed fine animal hair, not for retail sale
5109 10 Yarn of wool or of fine animal hair, >= 85% wool and fine animal hair, for
retail sale
5109 90 Yarn of wool/of fine animal hair, <85% wool and fine animal hair, for retail
sale
5110 00 Yarn of coarse animal hair or of horsehair
5111 11 Woven fabric of carded wool or fine animal hair, >= 85% wool and fine animal
hair, 300 g/m2
5111 19 Woven fabric of carded wool or fine animal hair, >= 85% wool or fine animal
hair, >300 g/m2
5111 20 Woven fabric of carded wool or fine animal hair, <85% wool or fine animal
hair, with man-made fibers
5111 30 Woven fabric of carded wool or fine animal hair, <85% wool or fine animal
hair, with man-made fibers
5111 90 Woven fabric of carded wool or fine animal hair, <85% wool or fine animal
hair, nes
5112 11 Woven fabric of combed wool or fine animal hair, >= 85% wool or fine animal
hair, 200 g/m2
5112 19 Woven fabric of combed wool or fine animal hair, >= 85% wool or fine animal
hair, >200 g/m2
5112 20 Woven fabric of combed wool or fine animal hair, <85% wool or fine animal
hair, with manmade filament
5112 30 Woven fabric of combed wool or fine animal hair, <85% wool or fine animal
hair, with manmade fibers
5112 90 Woven fabric of combed wool or fine animal hair, <85% wool or fine animal
hair, nes
5113 00 Woven fabric of coarse animal hair or of horsehair
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