Canada-Chile Free Trade Agreement

[ Index ]

The Government of Canada and the Government of the Republic of Chile (Chile), resolved to:

STRENGTHEN the special bonds of friendship and cooperation among their nations;

CONTRIBUTE to the harmonious development and expansion of world and regional trade and provide a catalyst to broader international cooperation;

CREATE an expanded and secure market for the goods and services produced in their territories;

REDUCE distortions to trade;

ESTABLISH clear and mutually advantageous rules governing their trade;

ENSURE a predictable commercial framework for business planning and investment;

BUILD on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other multilateral and bilateral instruments of cooperation;

ENHANCE the competitiveness of their firms in global markets;

CREATE new employment opportunities and improve working conditions and living standards in their respective territories;

UNDERTAKE each of the preceding in a manner consistent with environmental protection and conservation;

PRESERVE their flexibility to safeguard the public welfare;

PROMOTE sustainable development;

STRENGTHEN the development and enforcement of environmental laws and regulations;

PROTECT, enhance and enforce basic workers' rights;

FACILITATE the accession of Chile to the North American Free Trade Agreement; and

CONTRIBUTE to hemispheric integration;

HAVE AGREED as follows:

Article A-01: Establishment of the Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994 and Article V of the General Agreement on Trade in Services which are part of the Marrakesh Agreement Establishing the World Trade Organization, hereby establish a free trade area.

Article A-02: Objectives

1. The objectives of this Agreement, as elaborated more specifically through its principles and rules, including national treatment, most-favoured-nation treatment and transparency, are to:
   (a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties;

   (b) promote conditions of fair competition in the free trade area;

   (c) increase substantially investment opportunities in the territories of the Parties;

   (d) create effective procedures for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes; and

   (e) establish a framework for further bilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement.

2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objectives set out in paragraph 1 and in accordance with applicable rules of international law.

Article A-03: Relation to Other Agreements

1. The Parties affirm their existing rights and obligations with respect to each other under the Marrakesh Agreement Establishing the World Trade Organization and other agreements to which such Parties are party.

2. In the event of any inconsistency between this Agreement and such other agreements, this Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in this Agreement.

Article A-04: Relation to Environmental and Conservation Agreements

In the event of any inconsistency between this Agreement and the specific trade obligations set out in:

(a) the Convention on International Trade in Endangered Species of Wild Fauna and Flora, done at Washington, March 3, 1973, as amended June 22, 1979;

(b) the Montreal Protocol on Substances that Deplete the Ozone Layer, done at Montreal, September 16, 1987, as amended June 29, 1990; or

(c) the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, done at Basel, March 22, 1989,

such obligations shall prevail to the extent of the inconsistency, provided that where a Party has a choice among equally effective and reasonably available means of complying with such obligations, the Party chooses the alternative that is the least inconsistent with the other provisions of this Agreement.

Article A-05: Extent of Obligations

The Parties shall ensure that all necessary measures are taken in order to give effect to the provisions of this Agreement, including their observance, except as otherwise provided in this Agreement, by provincial governments.

General Definitions

Article B-01: Definitions of General Application

1. For purposes of this Agreement, unless otherwise specified:
   Canada-United States Free Trade Agreement means the Canada-United States Free Trade Agreement, done on January 2, 1988;

   citizen means a citizen as defined in Annex B-01.1 for the Party specified in that Annex;

   Commission means the Free Trade Commission established under Article N-01(1) (The Free Trade Commission);

   Customs Valuation Code means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, including its interpretative notes, which is part of the WTO Agreement;

   days means calendar days, including weekends and holidays;

   Dispute Settlement Understanding (DSU) means the Understanding on Rules and Procedures Governing the Settlement of Disputes, which is part of the WTO Agreement;

   enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture or other association;

   enterprise of a Party means an enterprise constituted or organized under the law of a Party;

   existing means in effect on the date of entry into force of this Agreement;

   GATS means the General Agreement on Trade in Services, which is part of the WTO Agreement;

   GATT 1994 means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;

   Generally Accepted Accounting Principles means the recognized consensus or substantial authoritative support in the territory of a Party with respect to the recording of revenues, expenses, costs, assets and liabilities, disclosure of information and preparation of financial statements. These standards may be broad guidelines of general application as well as detailed standards, practices and procedures;

   goods of a Party means domestic products as these are understood in the GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party ¹;

   Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;

   measure includes any law, regulation, procedure, requirement or practice;

   NAFTA means the North American Free Trade Agreement, done on December 17, 1992;

   national means a natural person who is a citizen or permanent resident of a Party and any other natural person referred to in Annex B-01.1;

   originating means qualifying under the rules of origin set out in Chapter D (Rules of Origin);

   person means a natural person or an enterprise;

   person of a Party means a national, or an enterprise of a Party;

   province means a province of Canada, and includes the Yukon Territory and the Northwest Territories and their successors,

   Secretariat means the Secretariat established under Article N-02(1) (The Secretariat);

   state enterprise means an enterprise that is owned, or controlled through ownership interests, by a Party;

   territory means for a Party the territory of that Party as set out in Annex B-01.1;

   TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, which is part of the WTO Agreement; and

   WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on April 15, 1994.

2. For purposes of this Agreement, unless otherwise specified, a reference to a province includes local governments of that province.

3. Country-specific definitions of national government are set out in Annex B-01.1.

Annex B-01.1 Country-Specific Definitions

For purposes of this Agreement, unless otherwise specified:

citizen means:

(a) with respect to Canada, a natural person who is a citizen of Canada under the Citizenship Act, R.S.C. 1985, c. C-29, as amended from time to time or under any successor legislation; and

(b) with respect to Chile, a Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile ("Constitución Política de la República de Chile");

national also includes, with respect to Chile, a Chilean as defined in Article 10 of the Political Constitution of the Republic of Chile ("Constitución Política de la República de Chile"); and

national government means:

(a) with respect to Canada, the Government of Canada; and

(b) with respect to Chile, the Government of the Republic of Chile;

territory means:

(a) with respect to Canada, the territory to which its customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with international law and its domestic law, Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and

(b) with respect to Chile, the land, maritime, and air space under its sovereignty, and the exclusive economic zone and the continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law.

National Treatment and Market Access for Goods

Article C-00: Scope and Coverage

This Chapter applies to trade in goods of a Party, including:

(a) goods covered by Annex C-00-A (Trade and Investment in the Automotive Sector); and

(b) goods covered by Annex C-00-B (Textile and Apparel Goods),

except as provided in such Annex.

Section I - National Treatment

Article C-01: National Treatment

1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its interpretative notes, and to this end Article III of the GATT 1994 and its interpretative notes, or any equivalent provision of a successor agreement to which both Parties are party, are incorporated into and made part of this Agreement.
2. The provisions of paragraph 1 regarding national treatment shall mean, with respect to a province, treatment no less favourable than the most favourable treatment accorded by such province to any like, directly competitive or substitutable goods, as the case may be, of the Party of which it forms a part¹.
3. Paragraphs 1 and 2 do not apply to the measures set out in Annex C-01.3.

Section II - Tariffs

Article C-02: Tariff Elimination²

1. Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any customs duty, on a good.³
2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on goods in accordance with its Schedule to Annex C-02.2 ⁴.
3. On the request of a Party, the Parties shall consult to consider accelerating the elimination of customs duties set out in their Schedules. An agreement between the Parties to accelerate the elimination of a customs duty on a good shall supersede any duty rate or staging category determined pursuant to their Schedules for such good when approved by each such Party in accordance with its applicable legal procedures.
4. Except as otherwise provided in this Agreement, either Party may adopt or maintain import measures to allocate in-quota imports made pursuant to a tariff rate quota set out in Annex C-02.2, provided that such measures do not have trade restrictive effects on imports additional to those caused by the imposition of the tariff rate quota.
5. On written request of either Party, a Party applying or intending to apply measures pursuant to paragraph 4 shall consult to review the administration of those measures.

Article C-03: Waiver of Customs Duties

1. Neither Party may adopt any new waiver of customs duties, or expand with respect to existing recipients or extend to any new recipient the application of an existing waiver of customs duties, where the waiver is conditioned, explicitly or implicitly, on the fulfilment of a performance requirement.
2. Except as set out in Annex C-03.2, neither Party may, explicitly or implicitly, condition on the fulfilment of a performance requirement the continuation of any existing waiver of customs duties.
3. If a waiver or a combination of waivers of customs duties granted by a Party with respect to goods for commercial use by a designated person can be shown by the other Party to have an adverse impact on the commercial interests of a person of that Party, or of a person owned or controlled by a person of that Party that is located in the territory of the Party granting the waiver, or on the other Party's economy, the Party granting the waiver shall either cease to grant it or make it generally available to any importer.
4. This Article shall not apply to drawback and duty deferral programs.

Article C-04: Temporary Admission of Goods

1. Each Party shall grant duty-free temporary admission, including exemption from fees as specified in Annex C-04.1 for:
(a) professional equipment necessary for carrying out the business activity, trade or profession of a business person who qualifies for temporary entry pursuant to Chapter K (Temporary Entry for Business Persons);

(b) equipment for the press or for sound or television broadcasting and cinematographic equipment;

(c) goods imported for sports purposes and goods intended for display or demonstration; and

(d) commercial samples and advertising films,

imported from the territory of the other Party, regardless of their origin and regardless of whether like, directly competitive or substitutable goods are available in the territory of the Party.

2. Except as otherwise provided in this Agreement, neither Party may condition the duty-free temporary admission of a good referred to in paragraph 1(a), (b) or (c), other than to require that such good:
(a) be imported by a national or resident of the other Party who seeks temporary entry;

(b) be used solely by or under the personal supervision of such person in the exercise of the business activity, trade or profession of that person;

(c) not be sold or leased while in its territory;

(d) be accompanied by a bond in an amount no greater than 110 per cent of the charges that would otherwise be owed on entry or final importation, or by another form of security, releasable on exportation of the good, except that a bond for customs duties shall not be required for an originating good⁵;

(e) be capable of identification when exported;

(f) be exported on the departure of that person or within such other period of time as is reasonably related to the purpose of the temporary admission; and

(g) be imported in no greater quantity than is reasonable for its intended use.

3. Except as otherwise provided in this Agreement, neither Party may condition the duty-free temporary admission of a good referred to in paragraph 1(d), other than to require that such good:
(a) be imported solely for the solicitation of orders for goods, or services provided from the territory, of the other Party or a non-Party;

(b) not be sold, leased or put to any use other than exhibition or demonstration while in its territory;

(c) be capable of identification when exported;

(d) be exported within such period as is reasonably related to the purpose of the temporary admission; and

(e) be imported in no greater quantity than is reasonable for its intended use.

4. Where a good is temporarily admitted duty free under paragraph 1 and any condition the Party imposes under paragraph 2 and 3 has not been fulfilled, a Party may impose:
(a) the customs duty and any other charge that would be owed on entry or final importation of the good; and

(b) any applicable criminal, civil or administrative penalties that the circumstances may warrant.

5. Subject to Chapters G (Investment) and H (Cross-Border Trade in Services):
(a) each Party shall allow a vehicle or container used in international traffic that enters its territory from the territory of the other Party to exit its territory on any route that is reasonably related to the economic and prompt departure of such vehicle or container;

(b) neither Party may require any bond or impose any penalty or charge solely by reason of any difference between the port of entry and the port of departure of a vehicle or container;

(c) neither Party may condition the release of any obligation, including any bond, that it imposes in respect of the entry of a vehicle or container into its territory on its exit through any particular port of departure; and

(d) neither Party may require that the vehicle or carrier bringing a container from the territory of the other Party into its territory be the same vehicle or carrier that takes such container to the territory of the other Party.

6. For purposes of paragraph 5, "vehicle" means a truck, a truck tractor, tractor, trailer unit or trailer, a locomotive, or a railway car or other railroad equipment.

Article C-05: Duty-Free Entry of Certain Commercial Samples and Printed

Advertising Materials

Each Party shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation of orders for goods, or services provided from the territory, of the other Party or a non-Party; or

(b) such advertising materials be imported in packets that each contain no more than one copy of each such material and that neither such materials nor packets form part of a larger consignment.

Article C-06: Goods Re-Entered after Repair or Alteration⁶

1. Neither Party may apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory.
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.

Article C-07 Most-Favoured-Nation Rates of Duty on Certain Goods

1. Each Party shall eliminate its most-favoured-nation tariff applied to the goods indicated in the Harmonized System tariff items set out in Annex C-07.
2. The schedule set out in Annex C-07 provides for the elimination of the most-favoured-nation tariff of each Party for the affected goods no later than January 1, 1999.

Article C-08: Import and Export Restrictions

1. Except as otherwise provided in this Agreement, neither Party may adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994, including its interpretative notes, and to this end Article XI of the GATT 1994 and its interpretative notes, or any equivalent provision of a successor agreement to which both Parties are party, are incorporated into and made a part of this Agreement.
2. The Parties understand that the GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, export price requirements and, except as permitted in enforcement of countervailing and antidumping orders and undertakings, import price requirements.
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation from or exportation to a non-Party of a good, nothing in this Agreement shall be construed to prevent the Party from:
(a) limiting or prohibiting the importation from the territory of the other Party of such good of that non-Party; or

(b) requiring as a condition of export of such good of the Party to the territory of the other Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.

4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, the Parties, on request of the other Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing and distribution arrangements in the other Party.
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex C-01.3 and Annex C-08.

Article C-09: Customs User Fees

Neither Party may adopt or maintain any customs user fee of the type referred to in Annex C-09 for originating goods.

Article C-10: Wine and Distilled Spirits

1. Neither Party may adopt or maintain any measure requiring that distilled spirits imported from the territory of the other Party for bottling be blended with any distilled spirits of the Party.
2. Annex C-10.2 applies to other measures relating to wine and distilled spirits.

Article C-11: Geographical Indications

As set out in Annex C-11 and taking into account the TRIPS Agreement, the Parties shall protect the geographical indications for the products specified in that Annex.

Article C-12: Export Taxes

Neither Party may adopt or maintain any duty, tax or other charge on the export of any good to the territory of the other Party, unless such duty, tax or charge is adopted or maintained on any such good when destined for domestic consumption.

Article C-13: Other Export Measures

1. Except as set out in Annex C-08, a Party may adopt or maintain a restriction otherwise justified under Articles XI: 2(a) or XX(g), (i) or (j) of the GATT 1994 with respect to the export of a good of the Party to the territory of the other Party, only if:
(a) the restriction does not reduce the proportion of the total export shipments of the specific good made available to the other Party relative to the total supply of that good of the Party maintaining the restriction as compared to the proportion prevailing in the most recent 36-month period for which data are available prior to the imposition of the measure, or in such other representative period on which the Parties may agree;

(b) the Party does not impose a higher price for exports of a good to the other Party than the price charged for such good when consumed domestically, by means of any measure, such as licenses, fees, taxation and minimum price requirements. The foregoing provision does not apply to a higher price that may result from a measure taken pursuant to subparagraph (a) that only restricts the volume of exports; and

(c) the restriction does not require the disruption of normal channels of supply to the other Party or normal proportions among specific goods or categories of goods supplied to the other Party.

2. The Parties shall cooperate in the maintenance and development of effective controls on the export of each other's goods to a non-Party in implementing this Article.

Article C-14: Export Subsidies on Agricultural Goods

1. The Parties share the objective of the multilateral elimination of export subsidies for agricultural goods and shall cooperate in an effort to achieve such an agreement.
2. Effective January 1, 2003, neither Party shall introduce or maintain any export subsidy on any agricultural goods originating in, or shipped from, its territory that are exported directly or indirectly to the territory of the other Party.
3. Where an exporting Party considers that a non-Party is exporting an agricultural good to the territory of the other Party with the benefit of export subsidies, the importing Party shall, on written request of the exporting Party, consult with the exporting Party with a view to agreeing on specific measures that the importing Party may adopt to counter the effect of any such subsidized imports. During the period before January 1, 2003, if the importing Party adopts the agreed-upon measures, the exporting Party shall refrain from applying, or immediately cease to apply, any export subsidy to exports of such good to the territory of the importing Party.
4. Until January 1, 2003, should a Party introduce or re-introduce a subsidy on exports of an agricultural good, the other Party may increase the rate of duty on such exports up to the applied most-favoured-nation tariff in effect at that time.

Section IV - Consultations

Article C-15: Consultations and Committee on Trade in Goods and Rules of Origin

1. The Parties hereby establish a Committee on Trade in Goods and Rules of Origin, comprising representatives of each Party.
2. The Committee shall meet at least once each year, and at any other time on the request of either Party or the Commission, to ensure the effective implementation and administration of this Chapter, Chapter D, Chapter E and the Uniform Regulations. In this regard, the Committee shall:
(a) monitor the implementation and administration by the Parties of this Chapter, Chapter D, Chapter E and the Uniform Regulations to ensure their uniform interpretation;

(b) at the request of either party, review and endeavour to agree on, any proposed modification of or addition to this Chapter, Chapter D, Chapter E or the Uniform Regulations;

(c) recommend to the Commission any modification of or addition to this Chapter, Chapter D, Chapter E or the Uniform Regulations and to any other provision of this Agreement as may be required to conform with any change to the Harmonized System; and

(d) consider any other matter relating to the implementation and administration by the Parties of this Chapter, Chapter D, Chapter E and the Uniform Regulations referred to it by

(i) a Party,

(ii) the Customs Sub-Committee established under Article E-13, or

(iii) the Sub-Committee on Agriculture established under paragraph 4.

3. If the Committee fails to resolve a matter referred to it pursuant to paragraph 2 (b) or (d) within 30 days of such referral, either Party may request a meeting of the Commission under Article N-07.
4. The Parties hereby establish a Sub-Committee on Agriculture that shall:
(a) provide a forum for the Parties to consult on issues relating to market access for agricultural goods, including wine and alcoholic beverages;

(b) monitor the implementation and administration of this Chapter, Chapter D, and the Uniform Regulations as they affect agricultural goods;

(c) meet annually or whenever so requested by either Party;

(d) refer to the Committee any matter under sub-paragraph (b) on which it has been unable to reach agreement;

(e) submit to the Committee for its consideration any agreement reached under this paragraph;

(f) report annually to the Committee; and

(g) follow-up and promote cooperation in matters relating to agricultural goods.

5. Each Party shall to the greatest extent practicable, take all necessary measures to implement any modification of or addition to this Agreement within 180 days of the date on which the Commission agrees on the modification or addition.
6. The Parties shall convene on the request of either Party a meeting of their officials responsible for customs, immigration, inspection of food and agricultural products, border inspection facilities, and regulation of transportation for the purpose of addressing issues related to movement of goods through the Parties' ports of entry.
7. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of origin or an advance ruling relating to a matter under consideration by the Committee or from taking such other action as it considers necessary, pending a resolution of the matter under this Agreement.

Article C-16: Customs Valuation Code

The Customs Valuation Code shall govern the customs valuation rules applied by the Parties to their reciprocal trade. The Parties agree that they will not make use in their reciprocal trade of the options and reservations permitted under Article 20 and paragraphs 2, 3 and 4 of Annex III of the Customs Valuation Code.

Article C-17: Price Band System

1. Chile may maintain its Price Band System as established in Article 12 of Law 18.525 for the products covered by that Law and listed in Annex C-17.1. Chile shall not incorporate new products in the Price Band System or modify the method by which it is calculated and applied in a manner that makes it more trade restrictive than it was on November 13, 1996.
2. With respect to soft wheat flour, the multiplication factor provided for in Article 12 of Law 18.525 shall be established by statute and for a period not less than three years, consistent with Article 14 of that Law.
3. The tariff reductions in the Schedule of Chile to Annex C-02.2 for the products covered by Law 18.525 shall apply only to the ad-valorem tariff component and not to the specific duties or rebates that could result from the application of Law 18.525.

Section V - Definitions

Article C-18: Definitions

For purposes of this Chapter:
advertising films means recorded visual media, with or without sound-tracks, consisting essentially of images showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of any Party, provided that the films are of a kind suitable for exhibition to prospective customers but not for broadcast to thegeneral public, and provided that they are imported in packets that each contain no more than one copy of each film and that do not form part of a larger consignment;

agricultural goods means a good provided for in any of the following: ⁷

(a) Harmonized System (HS) Chapters 1 through 24 (other than a fish or fish product); or

(b)

HS subheading	2905.43	manitol
HS subheading	2905.44	sorbitol
HS heading	33.01	essential oils
HS headings	35.01 to 35.05	albuminoidal substances, modified starches, glues
HS subheading	3809.10	finishing agents
HS subheading	3823.60	sorbitol n.e.p.
HS headings	41.01 to 41.03	hides and skins
HS heading	43.01	raw furskins
HS headings	50.01 to 50.03	raw silk and silk waste
HS headings	51.01 to 51.03	wool and animal hair
HS headings	52.01 to 52.03	raw cotton, cotton waste and cotton carded or combed
HS heading	53.01	raw flax
HS heading	53.02	raw hemp;

commercial samples of negligible value means commercial samples having a value, individually or in the aggregate as shipped, of not more than one U.S. dollar, or the equivalent amount in the currency of either of the Parties, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;

consumed means:

(a) actually consumed; or

(b) further processed or manufactured so as to result in a substantial change in value, form or use of the good or in the production of another good;

customs duty includes any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:

(a) charge equivalent to an internal tax imposed consistently with Article III: 2 of the GATT 1994, or any equivalent provision of a successor agreement to which both Parties are party, in respect of like, directly competitive or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;

(b) anti-dumping or countervailing duty that is applied pursuant to a Party's domestic law and not applied inconsistently with Chapter M (Anti-dumping and Countervailing Duty Matters);

(c) fee or other charge in connection with importation commensurate with the cost of services rendered; and

(d) premium offered or collected on an imported good arising out of any tendering system in respect of the administration of quantitative import restrictions, tariff rate quotas or tariff preference levels;

distilled spirits include distilled spirits and distilled spirit-containing beverages;

drawback program includes measures under which a Party refunds in whole or in part the amount of customs duties paid, or waives or reduces the amount of customs duties owed, on a good imported into its territory on condition that the good is:

(a) subsequently exported to the territory of the other Party;

(b) used as a material in the production of another good that is subsequently exported to the territory of the other Party; or

(c) substituted by an identical or similar good used as a material in the production of another good that is subsequently exported to the territory of the other Party;

duty deferral program includes measures such as those governing foreign-trade zones, "regímenes de zonas francas y regímenes aduaneros especiales", temporary importations under bond, bonded warehouses, "maquiladoras" and inward processing programs;

duty-free means free of customs duties;

goods imported for sports purposes means sports requisites for use in sports contests, demonstrations or training in the territory of the Party into whose territory such goods are imported;

goods intended for display or demonstration includes their component parts, ancillary apparatus and accessories;

local area network apparatus means a good dedicated for use solely or principally to permit the interconnection of automatic data processing machines and units thereof for a network that is used primarily for the sharing of resources such as central processor units, data storage devices and input or output units, including in-line repeaters, converters, concentrators, bridges and routers, and printed circuit assemblies for physical incorporation into automatic data processing machines and units thereof suitable for use solely or principally with a private network, and providing for the transmission, receipt, error-checking, control, signal conversion or correction functions for non-voice data to move through a local area network;

performance requirement means a requirement that:

(a) a given level or percentage of goods or services be exported;

(b) domestic goods or services of the Party granting a waiver of customs duties be substituted for imported goods or services;

(c) a person benefitting from a waiver of customs duties purchase other goods or services in the territory of the Party granting the waiver or accord a preference to domestically produced goods or services;

(d) a person benefitting from a waiver of customs duties produce goods or provide services, in the territory of the Party granting the waiver, with a given level or percentage of domestic content; or

(e) relates in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows;

printed advertising materials means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote,publicize or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge;

repair or alteration does not include an operation or process that either destroys the essential characteristics of a good or creates a new or commercially different good⁸;

total export shipments means all shipments from total supply to users located in the territory of the other Party;

total supply means all shipments, whether intended for domestic or foreign users, from:

(a) domestic production;

(b) domestic inventory; and

(c) other imports as appropriate; and

waiver of customs duties means a measure that waives otherwise applicable customs duties on any good imported from any country, including the territory of the other Party.

Annex C-01.3: Exceptions to Articles C-01 and C-08

Section I - Canadian Measures

1. Articles C-01 and C-08 shall not apply to controls by Canada on the export of logs of all species.
2. Articles C-01 and C-08 shall not apply to controls by Canada on the export of unprocessed fish pursuant to the following existing statutes, as amended:
(a) New Brunswick Fish Processing Act, R.S.N.B. c. F-18.01 (1982), and Fisheries Development Act, S.N.B. c. F-15.1 (1977);

(b) Newfoundland Fish Inspection Act, R.S.N. 1990, c. F-12;

(c) Nova Scotia Fisheries Act, S.N.S. 1977, c. 9;

(d) Prince Edward Island Fish Inspection Act, R.S.P.E.I. 1988, c. F-13; and

(e) Quebec Marine Products Processing Act, No. 38, S.Q. 1987, c. 51.

3. Without prejudice to Chile's rights under the WTO Agreement, Articles C-01 and C-08 shall not apply to:
(a) measures by Canada respecting the importation of any goods enumerated or referred to in Schedule VII of the Customs Tariff, R.S.C. 1985, c. 41 (3rd Supp.), as amended;

(b) measures by Canada respecting the exportation of liquor for delivery into any country into which the importation of liquor is prohibited by law under the existing provisions of the Export Act, R.S.C. 1985, c. E-18, as amended;

(c) Canadian excise duties on absolute alcohol used in manufacturing under the existing provisions of the Excise Act, R.S.C. 1985, c. E-14, as amended; and

(d) measures by Canada prohibiting the use of foreign or non-duty paid ships in the coasting trade of Canada unless granted a license under the Coasting Trade Act, S.C. 1992, c. 31,

to the extent that such provisions were mandatory legislation at the time of Canada's accession to the General Agreement on Tariffs and Trade, 1947, and have not been amended so as to decrease their conformity with the GATT 1994.

4. Articles C-01 and C-08 shall not apply to:
(a) the continuation or prompt renewal of a non-conforming provision of any statute referred to in paragraph 2 or 3; and

(b) the amendment to a non-conforming provision of any statute referred to in paragraph 2 or 3 to the extent that the amendment does not decrease the conformity of the provision with Articles C-01 and C-08.

Used Vehicles:

Chile may continue to prohibit imports of used vehicles provided for in the following Chilean tariff items:

8701.20.00	8702.10.10
8704.22.30	8702.10.90
8704.22.60	8702.90.10
8704.22.70	8702.90.20
8704.22.80	8702.90.90
8704.22.90	8703.21.10
8704.23.10	8703.21.90
8704.23.40	8703.22.10
8704.23.50	8703.22.90
8704.23.60	8703.23.10
8704.23.90	8703.23.90
8704.31.10	8703.24.10
8704.31.20	8703.24.90
8704.31.30	8703.31.10
8704.31.60	8703.31.90
8704.31.70	8703.32.10
8704.31.80	8703.32.90
8704.31.90	8703.33.10
8704.32.10	8703.33.90
8704.32.20	8703.90.10
8704.32.30	8703.90.90
8704.32.60	8704.21.10
8704.32.70	8704.21.20
8704.32.80	8704.21.30
8704.32.90	8704.21.60
8704.90.10	8704.21.70
8704.90.20	8704.21.80
8704.90.30	8704.21.90
8704.90.60	8704.22.10
8704.90.70	8704.22.20
8704.90.80	8704.90.90

For purposes of this Annex: used vehicle means a vehicle of a model year earlier than the year in which the Import Declaration for the vehicle is accepted by the Chilean Customs Service, ("Servicio Nacional de Aduanas"), except where the Import Declaration is accepted prior to April 30 in the current year and the vehicle is of the immediately preceding model year, regardless of the kilometres that the vehicle has travelled.

Annex C-02.2: Tariff Elimination

1. The method for determining the interim rate of customs duty at each stage of reduction for an item is indicated for the item in each Party's Schedule attached to this Annex.
2. For the purpose of the elimination of customs duties in accordance with Article C-02, interim staged rates shall be rounded down, except as set out in each Party's Schedule attached to this Annex, at least to the nearest tenth of a percentage point or, if the rate of duty is expressed in monetary units, at least to the nearest 0.001 of the official monetary unit of the Party.
3.  Tariff rate quota means a mechanism that provides for the application of a customs duty at a certain rate to imports of a particular good up to a specified quantity (in-quota quantity), and at a different rate to imports of that good that exceed that quantity. The in-quota quantities which are set out in the Annexes correspond to calendar years, except where otherwise indicated. If the entry into force of the Agreement corresponds to a date after January 1, 1997 and before December 31 of the same year, the in-quota quantity will be pro-rated on a proportional basis for the remainder of the calendar year.

>Schedule of Canada

>Schedule of Chile

Annex C-03.2: Continuation of Existing Waivers of Customs Duties

Canada
For purposes of Article C-03(2), Canada may:
(a) condition on the fulfilment of a performance requirement the waiver of customs duties under any measure in effect on or before January 1, 1989, on any goods entered or withdrawn from warehouse for consumption before January 1, 1998;

(b) grant waivers of customs duties as set out in Annex C-00-A (Trade and Investment in the Automotive Sector); and

(c) maintain the measures referred to in Article 1002(1) and (4) (as they refer to Annex 1002.1, Part Two), Article 1002(2) and Part Two (Export-Based Waivers of Customs Duties) of Annex 1002.1 of the Canada-United States Free Trade Agreement.

Chile
For the purposes of Article C-03.2, Chile may maintain:
(a) until December 31, 1999 the customs duty exemption measures under Article 3 of Law 18.483; and

(b) until December 31, 1998

(i) fiscal credit measures, ("crédito fiscal"), under Articles 9 and 10 of Law 18.483, and

(ii) fiscal credit measures, ("crédito fiscal"), for exports of domestic components under Articles 11, 11bis, 12 and 12bis of Law 18.483,

provided that the benefits under these measures are available only to automotive manufacturers as defined under Article 1(h) of Law 18.483 registered with the Automotive Commission ("Comisión Automotriz") as of January 1, 1996 and that, as of that date, such benefits are not expanded nor any new benefits provided under these measures.

Annex C-04.1: Temporary Admission of Goods

The temporary admission of goods from Canada specified in paragraph 1 of Article C-04 shall not be subject to payment of the fee established in Article 139 of the Chilean Customs Ordinance (Ordenanza de Aduanas) contained in Decree with Force of Law 30 of the Ministry of Finance, Official Gazette, April 13, 1983, ("Decreto con Fuerza de Ley 30 del Ministerio de Hacienda, Diario Oficial, 13 abril 1983").

Annex C-07: Most-Favoured-Nation Rates of Duty on
Certain Automatic Data Processing Goods and Their Parts

1. List of tariff provisions and MFN tariff elimination dates for Article C-07: ⁹

Automatic Data Processing
Machines (ADP)

Tariff Item	Canada	Chile
8471.10.00	c	b
8471.30.00	c	b
8471.41.00	c	b
8471.49.00	n.a.	b
8471.49.10	c	n.a.
8471.49.20	c	n.a.
8471.49.31	a	n.a.
8471.49.32	a	n.a.
8471.49.33	a	n.a.
8471.49.34	a	n.a.
8471.49.35	a	n.a.
8471.49.36	a	n.a.
8471.49.39	a	n.a.
8471.49.41	c	n.a.
8471.49.42	c	n.a.
8471.49.49	c	n.a.
8471.49.51	c	n.a.
8471.49.52	a	n.a.
8471.49.59	c	n.a.
8471.49.61	a	n.a.
8471.49.69	c	n.a.
8471.49.71	c	n.a.
8471.49.72	c	n.a.
8471.49.79	c	n.a.
8471.50.00	c	b
8471.60.00	n.a.	b
8471.60.10	c	n.a.
8471.60.21	a	n.a.
8471.60.22	a	n.a.
8471.60.23	a	n.a.
8471.60.24	a	n.a.
8471.60.25	a	n.a.
8471.60.26	a	n.a.
8471.60.29	a	n.a.
8471.60.31	c	n.a.
8471.60.32	c	n.a.
8471.60.39	c	n.a.
8471.60.40	c	n.a.
8471.60.50	a	n.a.
8471.60.90	c	n.a.
8471.70.00	n.a.	b
8471.70.10	a	n.a.
8471.70.90	c	n.a.
8471.80.00	n.a.	b
8471.80.10	c	n.a.
8471.80.91	c	n.a.
8471.80.99	c	n.a.
8471.90.00	n.a.	b
8471.90.10	a	n.a.
8471.90.90	c	n.a.

Parts of Computers
Tariff Item	Canada	Chile
8473.30.00	n.a.	b
8473.30.10	a	n.a.
8473.30.21	a	n.a.
8473.30.22	a	n.a.
8473.30.23	a	n.a.
8473.30.91	a	n.a.
8473.30.99	a	n.a.

Computer Power Supplies
Tariff Item	Canada	Chile
8504.40.00	n.a.	b
8504.40.40	c	n.a.
8504.90.00	n.a.	b
8504.90.14	a	n.a.
8504.90.80	a	n.a.

Metal Oxide Varistors
Tariff Item	Canada	Chile
8533.40.10	a	b

Diodes, Transistors and Similar Semiconductor Devices; Photosensitive Semiconductor Devices; Light Emitting Diodes; Mounted Piezo-electric Crystals
Tariff Item	Canada	Chile
8541.10.00	n.a.	b
8541.10.10	a	n.a.
8541.10.90	a	n.a.
8541.21.00	a	b
8541.29.00	a	b
8541.30.00	n.a.	b
8541.30.11	a	n.a.
8541.30.19	a	n.a.
8541.30.20	a	n.a.
8541.40.00	n.a.	b
8541.40.10	a	n.a.
8541.40.90	a	n.a.
8541.50.00	a	b
8541.60.00	a	b
8541.90.00	a	b

Electronic Integrated Circuits and Microassemblies
Tariff Item	Canada	Chile
8542.12.00	a	b
8542.13.00	n.a.	b
8542.13.10	a	n.a.
8542.13.90	a	n.a.
8542.14.00	n.a.	b
8542.14.10	a	n.a.
8542.14.90	a	n.a.
8542.19.00	n.a.	b
8542.19.10	a	n.a.
8542.19.90	a	n.a.
8542.30.00	a	b
8542.40.00	a	b
8542.50.00	a	b
8542.90.00	a	b

2. The Parties agree that local area network apparatus is provided for under heading 84.71 of the Harmonized System.
3. For greater certainty, in Article C-07, most-favoured-nation (MFN) rate of duty does not include any other concessionary rate of duty.

Annex C-08: Import and Export Measures

Chile

1. Chile reserves the right not to apply Articles C-08 and C-13 to the copper and other reserves for national industry and authorized entities, according to the provisions of Articles 7, 8 and 9 of Law 16.624.
2. Notwithstanding paragraph 1, Chile shall bring the provisions of Law 16.624 into conformity with this Agreement within two years of the entry into force of the Agreement.

Annex C-09: Existing Customs User Fees

Chile

Chile shall not levy the charges established under:
(a) Article 190 of Law 16.464; or

(b) Article 62 of Supreme Decree 172 of the Undersecretariat of Aviation, Official Gazette, April 10, 1974, Regulation of Aeronautical Rates and Duties, ("Decreto Supremo 172 de la Subsecretaría de Aviación, Diario Oficial, abril 10, 1974, Reglamento de Tasas Aeronáuticas e Impuestos"),

on originating goods, effective on the date of entry into force of the Agreement.

Annex C-10.2: Wine and Distilled Spirits

Canada

1. Except as provided in paragraphs 3 through 6, in respect of any measure related to the internal sale and distribution of wine and distilled spirits, Article C-01 shall not apply to:
(a) a non-conforming provision of any existing measure;

(b) the continuation or prompt renewal of a non-conforming provision of any existing measure; or

(c) an amendment to a non-conforming provision of any existing measure to the extent that the amendment does not decrease its conformity with Article C-01.

2. The Party asserting that paragraph 1 applies to one of its measures shall have the burden of establishing the validity of such assertion.

3. (a) Any measure related to the listing of wine and distilled spirits of the other Party shall
(i) conform with Article C-01,

(ii) be transparent, non-discriminatory and provide for prompt decision on any listing application, prompt written notification of such decision to the applicant and, in the case of a negative decision, provide for a statement of the reason for refusal,

(iii) establish administrative appeal procedures for listing decisions that provide for prompt, fair and objective rulings,

(iv) be based on normal commercial considerations,

(v) not create disguised barriers to trade, and

(vi) be published and made generally available to persons of the other Party;

(b) Notwithstanding paragraph 3(a) and Article C-01, and provided that listing measures of British Columbia otherwise conform with paragraph 3(a) and Article C-01, automatic listing measures in the province of British Columbia may be maintained provided they apply only to existing estate wineries producing less than 30,000 gallons of wine annually and meeting the existing content rule.

4. (a) Where the distributor is a public entity, the entity may charge the actual cost-of-service differential between wine or distilled spirits of the other Party and domestic wine or distilled spirits. Any such differential shall not exceed the actual amount by which the audited cost of service for the wine or distilled spirits of the exporting Party exceeds the audited cost of service for the wine or distilled spirits of the importing Party;

(b) Notwithstanding Article C-01, Article I (Definitions) except for the definition of "distilled spirits", Article IV.3 (Wine), and Annexes A, B, and C, of the Agreement between Canada and the European Economic Communityconcerning Trade and Commerce in Alcoholic Beverages, dated February 28, 1989, shall apply with such changes as the circumstances may require;

(c) All discriminatory mark-ups on distilled spirits shall be eliminated immediately on the date of entry into force of this Agreement. Cost-of-service differential mark-ups as described in subparagraph (a) shall be permitted;

(d) Any other discriminatory pricing measure shall be eliminated on the date of entry into force of this Agreement.

5. (a) Any measure related to distribution of wine or distilled spirits of the other Party shall conform with Article C-01;

(b) Notwithstanding subparagraph (a), and provided that distribution measures otherwise ensure conformity with Article C-01, a Party may

(i) maintain or introduce a measure limiting on-premise sales by a winery or distillery to those wines or distilled spirits produced on its premises, and

(ii) maintain a measure requiring existing private wine store outlets in the provinces of Ontario and British Columbia to discriminate in favour of wine of those provinces to a degree no greater than the discrimination required by such existing measure;

(c) Nothing in this Agreement shall prohibit the Province of Quebec from requiring that any wine sold in grocery stores in Quebec be bottled in Quebec, provided that alternative outlets are provided in Quebec for the sale of wine of the other Party, whether or not such wine is bottled in Quebec.

6. Unless otherwise specifically provided in this Annex, the Parties retain their rights and obligations under the GATT 1994 and agreements negotiated under the WTO Agreement.

7. The Parties will refer issues related to this Annex to the Subcommittee on Agriculture established under Article C-15.

8. For purposes of this Annex:

wine includes wine and wine-containing beverages.

Annex C-11

Geographical Indications

1. Immediately upon obtaining protection for the geographical indication Chilean Pisco (“Pisco Chileno”) in Canada under the Trade-marks Act, Chile shall protect the geographical indication “Canadian Whisky” and shall not permit the import or sale of any product as “Canadian Whisky” unless it has been manufactured in Canada in accordance with the laws and regulations of Canada, governing the manufacture of “Canadian Whisky” for consumption in Canada.
2. Until Chile fully implements its obligations under the TRIPS Agreement, and in order to protect the “Canadian Whisky” referred to above, Chile shall prohibit the importation of any product marked “Canadian Whisky” unless that product is accompanied by a certification from the competent Canadian authority that the product complies with the Canadian requirements referred to in paragraph 1.

Annex C-17.1

Price Band System

The products covered by Law 18.525, in accordance with the Chilean tariff classification, are the following¹⁰ :

Wheat and Wheat Flour
1001.9000
1101.0000

Edible Vegetable Oils
1507.1000
1507.9000
1508.1000
1508.9000
1509.1000
1509.9000
1510.0000
1511.1000
1511.9000
1512.1110
1512.1120
1512.1910
1512.1920
1512.2100
1512.2900
1513.1100
1513.1900
1513.2100
1513.2900
1514.1000
1514.9000
1515.2100
1515.2900
1515.5000
1515.9000

Sugar
1701.1100
1701.1200
1701.9100
1701.9900

Annex C-00-A

Trade and Investment in the Automotive Sector

Canada

Existing Measures¹¹

1. Canada may maintain with the United States of America the Agreement Concerning Automotive Products between the Government of Canada and the Government of the United States of America, signed at Johnson City, Texas, January 16, 1965 and entered into force on September 16, 1966, in accordance with Article 1001, and Article 1002(1) and (4) (as they refer to Annex 1002.1, Part One), and Annex 1002.1, Part One (Waivers of Customs Duties) of the Canada - United States Free Trade Agreement, which provisions are incorporated into and made a part of the NAFTA for such purpose.
2. For greater certainty, the differences in treatment pursuant to paragraph 1 shall not be considered to be inconsistent with Article G-03 (Investment - Most-Favoured-Nation Treatment).

Annex C-00-B

Textile and Apparel Goods

Section 1: Scope and Coverage¹

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 WTO Agreement on Textiles and Clothing 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.

The Parties may identify at any time particular textile and apparel goods that they mutually agree fall within:
(a) hand-loomed fabrics of a cottage industry;

(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.

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 WTO and entered under a tariff preference level set out in Appendix 5.1, is being imported into the territory of the other 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:
(a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; or

(b) increase the rate of duty on the good to a level not to exceed the lesser of

(i) the mostfavourednation (MFN) applied rate of duty in effect at the time the action is taken, and

(ii) the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement.

2. In determining serious damage, or actual threat thereof, the Party:
(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

(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 the other Party 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:
(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;

(b) no action may be taken by a Party against any particular good originating in the territory of the other 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

(i) the rate of duty shall conform to the applicable rate set out in that Party's Schedule to Annex C-02.2, or

(ii) the tariff shall be eliminated in equal annual stages ending on the date set out in that Party's Schedule to Annex C-02.2 for the elimination of the tariff.

5. The Party taking an action under this Section shall provide to the other Party 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 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 other Party. The Party taking the tariff action shall only apply the action for the minimum period necessary to achieve the substantially equivalent effects.

1. sA Party may take bilateral emergency action against non-originating textile or apparel goods of the other Party in accordance with this Section and Appendix 4.1.
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 5.1, is being imported into its territory from the other 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 3(2).
5. The Parties shall begin consultations within 60 days of the request for consultations and shall endeavour to agree on a mutually satisfactory level of restraint on exports of the particular good within 90 days of the request, unless the Parties agree to extend this period. In reaching a mutually satisfactory level of export restraint, the Parties shall:
(a) consider the situation in the market in the importing Party;

(b) consider the history of trade in textile and apparel goods between the 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.³

6. If the 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:
(a) the quantity of the good imported into the territory of the Party requesting consultations from the other Party, 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

(b) 20 per cent of such quantity for cotton, manmade fibre and other non-cotton vegetable fibre good categories, and six per cent 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 Appendix 4.1.
9. For each successive calendar year that the quantitative restriction imposed under paragraph 6 remains in effect, the Party imposing it shall:
(a) increase it by six per cent for cotton, man-made fibre and non-cotton vegetable fibre textile and apparel goods, and by two per cent for wool textile and apparel goods, and

(b) accelerate the growth rate for quantitative restrictions on cotton, man-made fibre and non-cotton vegetable fibre textile and apparel goods as required by the WTO Agreement on Textiles and Clothing,

and the flexibility provisions set out in Appendix 4.1 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. Neither 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. Neither 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 under the WTO Agreement on Textiles and Clothing.
13. Neither 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 other Party.

Appendix 5.1 sets out special provisions applicable to certain textile and apparel goods.

For purposes of this Annex:
average yarn number, as applied to woven fabrics of cotton or man-made fibres, 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 of the following formulas can be used to determine the average yarn number:

N =	BYT ,	100T ,	BT	or	ST
	1,000	Z'	Z		10

when:

N is the average yarn number,
B is the breadth (width) of the fabric in centimetres,
Y is the metres (linear) of the fabric per kilogram,
T is the total single yarns per square centimetre,
S is the square metres of fabric per kilogram,
Z is the grams per linear metre of fabric, and
Z' is the grams per square metre of fabric.

Fractions in the resulting "average yarn number" shall be disregarded;

exporting Party means the Party from whose territory a textile or apparel good is exported;

flexibility provisions means the provisions set out in Appendix 4.1;

importing Party means the Party into whose territory a textile or apparel good is imported;

integrated into the WTO means subject to the obligations of the WTO Agreement;

product category means a grouping of textile or apparel goods defined in the Correlation: Textile and Apparel Categories with the Harmonized Tariff Schedule of the United States, 1995 (or successor publication), published by the United States Department of Commerce, International Trade Administration, Office of Textiles and Apparel, Trade and Data Division, Washington, D.C.;

specific limit means a level of exports for a particular textile or apparel good that may be adjusted in accordance with Appendix 4.1;

square metres equivalent (SME) means that unit of measurement that results from the application of the conversion factors set out in Appendix 5.2 to a primary unit of measure such as unit, dozen or kilogram;

tariff preference level (TPL) 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 six-year period beginning on the date of entry into force of this Agreement;

wool apparel means:

(a) apparel in chief weight of wool;

(b) woven apparel in chief weight of manmade fibres containing 36 per cent or more by weight of wool; and

(c) knitted or crocheted apparel in chief weight of manmade fibres containing 23 per cent or more by weight of wool;

wool fabric means:

(a) fabric in chief weight of wool;

(b) woven fabric in chief weight of man-made fibres containing 36 per cent or more by weight of wool; and

(c) knitted or crocheted fabric in chief weight of man-made fibres containing 23 per cent or more by weight of wool; and

WTO Agreement on Textiles and Clothing means the Agreement on Textiles and Clothing which is part of the WTO Agreement.

Note: For purposes of reference only, descriptions are provided next to the corresponding item. For legal purposes, coverage shall be determined according to the terms of the Harmonized System.

HS No.	Description
Chapter 30 Pharmaceutical Products
3005.90	Wadding, gauze, bandages and the like
Chapter 39 Plastics and articles thereof
ex 3921.12	(Woven, knitted or non-woven fabric coated, covered or laminated with plastics)
ex 3921.13
ex 3921.90
Chapter 42 Articles of leather; saddlery and harness; travel goods, handbags and similar containers
ex 4202.12	(Luggage, handbags and flatgoods with an outer surface predominantly of textile materials)
ex 4202.22
ex 4202.32
ex 4202.92
Chapter 50 Silk
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; silk-worm 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 fibres
5007.90	Woven fabric of silk, nes
Chapter 51 Wool, fine or coarse animal hair, horsehair yarn and fabric
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, ³85% wool, not for retail sale
5106.20	Yarn of carded, wool, <85% wool, not for retail sale
5107.10	Yarn of combed wool, ³85% 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, ³85% 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, ³85% wool and fine animal hair, ² 300 g/m2
5111.19	Woven fabric of carded wool or fine animal hair, ³85% 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 fibres
5111.30	Woven fabric of carded wool or fine animal hair, <85% wool or fine animal hair, with man-made fibres
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, ³85% wool or fine animal hair, ²200 g/m2
5112.19	Woven fabric of combed wool or fine animal hair, ³85% 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 man-made filament
5112.30	Woven fabric of combed wool or fine animal hair, <85% wool or fine animal hair, with man-made fibres
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
Chapter 52 Cotton
5203.00	Cotton, carded or combed
5204.11	Cotton sewing thread ³85% cotton, not for retail sale
5204.19	Cotton sewing thread, <85% cotton, not for retail sale
5204.20	Cotton sewing thread, for retail sale
5205.11	Cotton yarn, ³85% cotton, single, uncombed, ³714.29 decitex, not for retail sale
5205.12	Cotton yarn, ³85% cotton, single, uncombed, 714.29 >decitex³232.56, not for retail sale
5205.13	Cotton yarn, ³85% cotton, single, uncombed, 232.56>decitex³192.31, not for retail sale
5205.14	Cotton yarn, ³85% cotton, single, uncombed, 192.31 >decitex³125, not for retail sale
5205.15	Cotton yarn, ³85% cotton, single, uncombed, <125 decitex, not for retail sale
5205.21	Cotton yarn, ³85% cotton, single, combed, ³714.29, not for retail sale
5205.22	Cotton yarn, ³85% cotton, single, combed, 714.29 >decitex³232.56, not for retail sale
5205.23	Cotton yarn, ³85% cotton, single, combed, 232.56 >decitex³192.31, not for retail sale
5205.24	Cotton yarn, ³85% cotton, single, combed, 192.31 >decitex³125, not for retail sale
5205.26	Cotton yarn, ³85% cotton, single, combed, 125 >decitex³106.38, not for retail sale
5205.27	Cotton yarn, ³85% cotton, single, combed, 106.38 >decitex³83.33, not for retail sale
5205.28	Cotton yarn, ³85% cotton, single, combed, <83.33 decitex, not for retail sale
5205.31	Cotton yarn, ³85% cotton, multiple, uncombed, ³714.29 decitex, not for retail sale, nes
5205.32	Cotton yarn, ³85% cotton, multiple, uncombed, 714.29 >decitex³232.56, not for retail sale, nes
5205.33	Cotton yarn, ³85% cotton, multiple, uncombed, 232.56 >decitex³192.31, not for retail sale, nes
5205.34	Cotton yarn, ³85% cotton, multiple, uncombed, 192.31 >decitex³125, not for retail sale, nes
5205.35	Cotton yarn, ³85% cotton, multiple, uncombed, <125 decitex, not for retail sale, nes
5205.41	Cotton yarn, ³85% cotton, multiple, combed, ³714.29 decitex, not for retail sale, nes
5205.42	Cotton yarn, ³85% cotton, multiple, combed, 714.29 >decitex³232.56, not for retail sale, nes
5205.43	Cotton yarn, ³85% cotton, multiple, combed, 232.56 >decitex³192.31, not for retail sale, nes
5205.44	Cotton yarn, ³85% cotton, multiple, combed, 192.31 >decitex³125, not for retail sale, nes
5205.46	Cotton yarn, ³85% cotton, multiple, combed, 125 >decitex ³106.38, not for retail sale, nes
5205.47	Cotton yarn, ³85% cotton, multiple, combed, 106.38 >decitex³83.33, not for retail sale, nes
5205.48	Cotton yarn, <85% cotton, single, uncombed, <83.33 decitex, not for retail sale
5206.11	Cotton yarn, <85% cotton, single, uncombed, ³714.29, not for retail sale
5206.12	Cotton yarn, <85% cotton, single, uncombed, 714.29 >decitex³232.56, not for retail sale
5206.13	Cotton yarn, <85% cotton, single, uncombed, 232.56 >decitex³192.31, not for retail sale
5206.14	Cotton yarn, <85% cotton, single, uncombed, 192.31 >decitex³125, not for retail sale
5206.15	Cotton yarn, <85% cotton, single, uncombed, <125 decitex, not for retail sale
5206.21	Cotton yarn, <85% cotton, single, combed, ³714.29 decitex, not for retail sale
5206.22	Cotton yarn, <85% cotton, single, combed, 714.29 >decitex³232.56, not for retail sale
5206.23	Cotton yarn, <85% cotton, single, combed, 232.56 >decitex³192.31, not for retail sale
5206.24	Cotton yarn, <85% cotton, single, combed, 192.31 >decitex³125, not for retail sale
5206.25	Cotton yarn, <85% cotton, single, combed, <125 decitex, not for retail sale
5206.31	Cotton yarn, <85% cotton, multiple, uncombed, ³714.29, not for retail sale, nes
5206.32	Cotton yarn, <85% cotton, multiple, uncombed, 714.29 >decitex³232.56, not for retail sale, nes
5206.33	Cotton yarn, <85% cotton, multiple, uncombed, 232.56 >decitex³192.31, not for retail sale, nes
5206.34	Cotton yarn, <85% cotton, multiple, uncombed, 192.31 >decitex³125, not for retail sale, nes
5206.35	Cotton yarn, <85% cotton, multiple, uncombed, <125 decitex, not for retail sale, nes
5206.41	Cotton yarn, <85% cotton, multiple, combed, ³714.29, not for retail sale, nes
5206.42	Cotton yarn, <85% cotton, multiple, combed, 714.29 >decitex³232.56, not for retail sale, nes
5206.43	Cotton yarn, <85% cotton, multiple, combed, 232.56 >decitex³192.31, not for retail sale, nes
5206.44	Cotton yarn, <85% cotton, multiple, combed, 192.31 >decitex³125, not for retail sale, nes
5206.45	Cotton yarn, <85% cotton, multiple, combed, <125 decitex, not for retail sale, nes
5207.10	Cotton yarn (other than sewing thread)³85% cotton, for retail sale
5207.90	Cotton yarn (other than sewing thread) <85% cotton, for retail sale
5208.11	Plain weave cotton fabric, ²85% cotton, ²100g/m2, unbleached
5208.12	Plain weave cotton fabric, ²85% cotton, >100g/m2, ²200g/m2, unbleached
5208.13	Twill weave cotton fabric, ³85% cotton, ²200g/m2, unbleached
5208.19	Woven fabric of cotton, ³85% cotton, ²200g/m2, unbleached, nes
5208.21	Plain weave cotton fabric, ³85% cotton, ²100g/m2, bleached
5208.22	Plain weave cotton fabric, ³85% cotton, >100g/m2, ²200g/m2, bleached
5208.23	Twill weave cotton fabric, ³85% cotton, ²200g/m2, bleached
5208.29	Woven fabric of cotton, ³85% cotton, ²200g/m2, bleached, nes
5208.31	Plain weave cotton fabric, ³85% cotton, ²100g/m2, dyed
5208.32	Plain weave cotton fabric, ³85% cotton, >100g/m2, ² 200g/m2, dyed
5208.33	Twill weave cotton fabric, ³85% cotton, ²200g/m2, dyed
5208.39	Woven fabric of cotton, ³85% cotton, ²200g/m2, dyed, nes
5208.41	Plain weave cotton fabric, ³85% cotton, ²100g/m2, yarn dyed
5208.42	Plain weave cotton fabric, ³85% cotton, >100g/m2, ²200 g/m2, yarn dyed
5208.43	Twill weave cotton fabric, ³85% cotton, ²200g/m2, yarn dyed
5208.49	Woven fabric of cotton, ³85% cotton, ²200g/m2, yarn dyed, nes
5208.51	Plain weave cotton fabric, ³85% cotton, ²100g/m2, printed
5208.52	Plain weave cotton fabric, ³85% cotton, >100g/m2, ²200 g/m2, printed
5208.53	Twill weave cotton fabric, ³85% cotton, ²200g/m2, printed
5208.59	Woven fabric of cotton, ³85% cotton, ² 200g/m2, printed, nes
5209.11	Plain weave cotton fabric, ³85% cotton, >200g/m2, unbleached
5209.12	Twill weave cotton fabric, ³85% cotton, >200g/m2, unbleached
5209.19	Woven fabric of cotton, ³85% cotton, >200g/m2, unbleached, nes
5209.21	Plain weave cotton fabric, ³85% cotton, >200g/m2, bleached
5209.22	Twill weave cotton fabric, ³85% cotton, >200g/m2, bleached
5209.29	Woven fabric of cotton, ³85% cotton, >200g/m2, bleached, nes
5209.31	Plain weave cotton fabric, ³85% cotton, >200g/m2, dyed
5209.32	Twill weave cotton fabric, ³85% cotton, >200g/m2, dyed
5209.39	Woven fabric of cotton, ³85% cotton, >200g/m2, dyed, nes
5209.41	Plain weave cotton fabric, ³85% cotton, >200g/m2, yarn dyed
5209.42	Blue denim fabric of cotton, ³85% cotton, >200g/m2
5209.43	Twill weave cotton fabric, other than denim,³85% cotton, >200g/m2, yarn dyed
5209.49	Woven fabric of cotton, ³85% cotton, >200g/m2, yarn dyed, nes
5209.51	Plain weave cotton fabric, ³85% cotton, >200g/m2, printed
5209.52	Twill weave cotton fabric, ³85% cotton, >200g/m2, printed
5209.59	Woven fabric of cotton, ³85% cotton, >200g/m2, printed, nes
5210.11	Plain weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, unbleached
5210.12	Twill weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, unbleached
5210.19	Woven fabric of cotton, <85% cotton, with man-made fibre, ²200g/m2, unbleached, nes
5210.21	Plain weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, bleached
5210.22	Twill weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, bleached
5210.29	Woven fabric of cotton, <85% cotton, with man-made fibre, ²200g/m2, bleached, nes
5210.31	Plain weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, dyed
5210.32	Twill weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, dyed
5210.39	Woven fabric of cotton, <85% cotton, with man-made fibre, ²200g/m2, dyed, nes
5210.41	Plain weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, yarn dyed
5210.42	Twill weave cotton fabric, <85% cotton, with man-made fibre, ™B2ó200g/m2, yarn dyed
5210.49	Woven fabric of cotton, <85% cotton, with man-made fibre, ²200g/m2, yarn dyed, nes
5210.51	Plain weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, printed
5210.52	Twill weave cotton fabric, <85% cotton, with man-made fibre, ²200g/m2, printed
5210.59	Woven fabric of cotton, <85% cotton, with man-made fibre, ²200g/m2, printed, nes
5211.11	Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, unbleached
5211.12	Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, unbleached
5211.19	Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, unbleached, nes
5211.21	Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, bleached
5211.22	Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, bleached
5211.29	Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, bleached, nes
5211.31	Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, dyed
5211.32	Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, dyed
5211.39	Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, dyed, nes
5211.41	Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, yarn dyed
5211.42	Blue denim fabric of cotton, <85% cotton, with man-made fibre, >200g/m2
5211.43	Twill weave cotton fabric, other than denim, <85% cotton, with man-made fibre, >200g/m2, yarn dyed
5211.49	Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, yarn dyed, nes
5211.51	Plain weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, printed
5211.52	Twill weave cotton fabric, <85% cotton, with man-made fibre, >200g/m2, printed
5211.59	Woven fabric of cotton, <85% cotton, with man-made fibre, >200g/m2, printed, nes
5212.11	Woven fabric of cotton, weighing ²200g/m2, unbleached, nes
5212.12	Woven fabric of cotton, weighing ²200g/m2, bleached, nes
5212.13	Woven fabric of cotton, weighing ²200g/m2, dyed, nes
5212.14	Woven fabric of cotton, ²200g/m2, of yarns of different colours, nes
5212.15	Woven fabric of cotton, weighing ²200g/m2, printed, nes
5212.21	Woven fabric of cotton, weighing >200g/m2, unbleached, nes
5212.22	Woven fabric of cotton, weighing >200g/m2, bleached, nes
5212.23	Woven fabric of cotton, weighing >200g/m2, dyed, nes
5212.24	Woven fabric of cotton, >200g/m2, of yarns of different colours, nes
5212.25	Woven fabric of cotton, weighing >200g/m2, printed, nes
Chapter 53 Other vegetable textile fibres; paper yarn and woven fabric of paper yarn
5306.10	Flax yarn, single
5306.20	Flax yarn, multiple
5307.10	Yarn of jute or of other textile bast fibres, single
5307.20	Yarn of jute or other textile bast fibres, multiple
5308.20	True hemp yarn
5308.90	Yarn of other vegetable textile fibres
5309.11	Woven fabric, ³85% flax, unbleached or bleached
5309.19	Woven fabric, ³85% flax, other than unbleached or bleached
5309.21	Woven fabric of flax, <85% flax, unbleached or bleached
5309.29	Woven fabric of flax, <85% flax, other than unbleached or bleached
5310.10	Woven fabric of jute or of other textile bast fibres, unbleached
5310.90	Woven fabric of jute or of other textile bast fibres, other than unbleached
5311.00	Woven fabric of other vegetable textile fibres; woven fabric of paper yarn

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Chapter 54 Man-made filaments
5401.10	Sewing thread of synthetic filaments
5401.20	Sewing thread of artificial filaments
5402.10	High tenacity yarn (other than sewing thread), nylon or other polyamide fibre, not for retail sale
5402.20	High tenacity yarn (other than sewing thread), of polyester filaments, not for retail sale
5402.31	Textured yarn nes, of nylon or other polyamide fibre,²50 tex/single yarn, not for retail sale
5402.32	Textured yarn nes, of nylon or other polyamide fibre,>50 tex/single yarn, not for retail sale
5402.33	Textured yarn nes, of polyester filaments, not for retail sale
5402.39	Textured yarn of synthetic filaments, nes, not for retail sale
5402.41	Yarn of nylon or other polyamide fibre, single, untwisted, nes, not for retail sale
5402.42	Yarn of polyester filaments, partially oriented, single, nes, not for retail sale
5402.43	Yarn of polyester filaments, single, untwisted, nes, not for retail sale
5402.49	Yarn of synthetic filaments, single, untwisted, nes, not for retail sale
5402.51	Yarn of nylon or other polyamide fibre, single, >50 turns per metre, not for retail sale
5402.52	Yarn of polyester filaments, single, >50 turns per metre, not for retail sale
5402.59	Yarn of synthetic filaments, single, >50 turns per metre, nes, not for retail sale
5402.61	Yarn of nylon or other polyamide fibre, multiple, nes, not for retail sale
5402.62	Yarn of polyester filaments, multiple, nes, not for retail sale
5402.69	Yarn of synthetic filaments, multiple, nes, not for retail sale
5403.10	High tenacity yarn (other than sewing thread), of viscose rayon filaments, not for retail sale
5403.20	Textured yarn nes, of artificial filaments, not for retail sale
5403.31	Yarn of viscose rayon filaments, single, untwisted, nes, not for retail sale
5403.32	Yarn of viscose rayon filaments, single, >120 turns per metre, nes, not for retail sale
5403.33	Yarn of cellulose acetate filaments, single, nes, not for retail sale
5403.39	Yarn of artificial filaments, single, nes, not for retail sale
5403.41	Yarn of viscose rayon filaments, multiple, nes, not for retail sale
5403.42	Yarn of cellulose acetate filaments, multiple, nes, not for retail sale
5403.49	Yarn of artificial filaments, multiple, nes, not for retail sale
5404.10	Synthetic monofilament, ³67 decitex, no cross sectional dimension >1 mm
5404.90	Strip and the like of synthetic textile material of an apparent width ² 5mm
5405.00	Artificial monofil, 67 decitex, cross sectional dimension >1mm; strip of art. tex. mat. width ²5mm
5406.10	Yarn of synthetic filaments (other than sewing thread), for retail sale
5406.20	Yarn of artificial filaments (other than sewing thread), for retail sale
5407.10	Woven fabric of high tenacity filament yarn of nylon or other polyamides, or polyester
5407.20	Woven fabric obtained from strip or the like of synthetic textile materials
5407.30	Fabric specified in Note 9 Section XI (layers of parallel synthetic textile yarn)
5407.41	Woven fabric, ³85% nylon or other polyamide filaments, unbleached or bleached, nes
5407.42	Woven fabric, ³85% nylon or other polyamide filaments, dyed, nes
5407.43	Woven fabric, ³85% nylon or other polyamide filaments, yarn dyed, nes
5407.44	Woven fabric, ³85% nylon or other polyamide filaments, printed, nes
5407.51	Woven fabric, ³85% textured polyester filaments, unbleached or bleached, nes
5407.52	Woven fabric, ³85% textured polyester filaments, dyed, nes
5407.53	Woven fabric, ³85% textured polyester filaments, yarn dyed, nes
5407.54	Woven fabric, ³85% textured polyester filaments, printed, nes