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Trade and Commerce

REF: CTIA 94-1; CTIA 7430.000; DOS 94-35

Location Signed: Sofia
Date Signed or Amended: December 23, 1993
Effected by exchange of notes at Sofia Dec.2 and 23, 1993
Entered into force December 23, 1993
Effective January 1, 1993

AGREEMENT BETWEEN THE UNITED STATES AND BULGARIA RELATING TO TRADE IN TEXTILES AND TEXTILE PRODUCTS, WITH ANNEXES

Amendment: 7430.001

No. 328

The Embassy of the United States of America presents its compliments to the Ministry of Foreign Affairs of the Republic of Bulgaria and has the honor to refer to discussions between representatives of the Government of the Republic of Bulgaria and the Government of the United States of America in Washington, D.C. from February 2-3, 1993 concerning exports of textiles and textile products of the Republic of Bulgaria exported to the United States. As a result of these discussions, the Embassy of the United States of America proposes, on behalf of the Government of the United States, the following Agreement relating to trade in cotton, wool, man-made fiber, non-cotton vegetable fiber and silk-blend textiles and textile products between the Government of Bulgaria and the Government of the United States.

Agreement Term

1. The term of this Agreement will be the period from January 1, 1993 through December 31, 1995. Each "Agreement Period" or "Agreement Year" shall be a twelve-month period from January first of a given year to December thirty-first of the same year.

Coverage of Agreement and Classification by Fiber

2. The textiles and textile products covered by this Agreement are those summarized in Annex A. The system of categories and the rates of conversion into square meters equivalent (SME) listed in Annex A shall apply in implementing this Agreement.

3. (A) Tops, yarns, piece goods, made-up articles, garments, and other textile manufactured products (being products which derive their chief characteristics from their textile components) of cotton, wool, man-made fibers, silk blends, non-cotton or blends thereof, in which any or all of these fibers in combination represent the chief weight of the product, are subject to this Agreement. Components of an article which are not considered relevant to the classification under the General Rules of Interpretation or the Legal Notes to Section of the Harmonized System are likewise to be disregarded here

(B) For the purposes of this Agreement, textile products covered by paragraph (2) above shall be classified as:

(I) Man-made fiber textiles, if the product is in chief weight of man-made fibers, unless:

(A) the product is knitted or crocheted apparel in which wool equals or exceeds 23 percent by weight of all fibers, in which case the product will be a wool textile; or

(B) the product is apparel, not knitted or crocheted, in which wool equals or exceeds 36 percent by weight of all fibers; in which case the product will be a wool textile;

(C) the product is a woven fabric in which wool equals or exceeds 36 percent by weight of all fibers, in which case the product will be a wool textile.

(II) Cotton textiles, if not covered by (I) and if the product is in chief weight of cotton, unless the product is a woven fabric in which wool equals or exceeds 36 percent by weight of all fibers, in which case the product will be a wool textile.

(III) Wool textiles, if neither of the foregoing applies, and the product is in chief weight of wool.

(IV) Silk blend or non-cotton vegetable fiber textiles, if none of the foregoing applies and the product is in chief weight of silk or non-cotton vegetable, unless:

(A) cotton with wool and/or man-made fibers in the aggregate equal or exceed 50 percent by weight of the component fibers thereof and the cotton component equals or exceeds the weight of each of the total wool or man-made fiber components, in which case the product will be considered a cotton textile.

(B) If not covered by (IV) (A) and wool exceeds 17 percent by weight of all component fibers, in which case the product will be considered a wool textile.

(C) If not covered by (IV) (A) or (B) and man-made fibers in combination with cotton and/or wool in the aggregate equal or exceed 50 percent by weight of the component fibers thereof and the man-made fiber component exceeds the weight of the total wool and/or total cotton component, in which case the product will be considered a man-made fiber textile.

(C) Notwithstanding the above, garments which contain 70 percent or more by weight silk (unless they also contain over 17 percent by weight wool), and products other than garments which contain 85 percent or more by weight silk, are not subject to this Agreement. Silk blend and non-cotton vegetable fiber sweaters, as determined above, shall be divided into "silk blend" sweaters and "non-cotton vegetable fiber" sweaters. For the purposes of this provision sweaters shall be classified as "silk blend" if the silk component exceeds by weight the non-cotton vegetable fiber component (if any). Sweaters not classified as "silk blend" sweaters in accordance with the foregoing shall be classified as "non-cotton vegetable fiber" sweaters. Garments containing 70 percent or more by weight silk and over 17 percent by weight wool shall be classified as wool textiles, under subparagraphs (B) (IV) (B).

(D) Coverage under this paragraph is intended to be identical with the terms of the Arrangement Regarding the International Trade in textiles and in conformance with the July 31, 1986, Protocol of Extension. In the event of a question regarding whether a product is covered by this Agreement by virtue of being in chief weight of cotton, wool, man-made fiber, silk blend, or non-cotton vegetable fiber the chief value of the fibers may be considered.

SPECIFIC LIMITS

4. Commencing with the first Agreement Period and during each subsequent term of this Agreement, the Government of the Republic of Bulgaria shall limit exports to the United States of cotton, wool, manmade fiber, silk-blend and non-cotton vegetable fiber textiles and textile products of Bulgaria to the Specific Limits set out in Annex B, and as such Specific Limits may be adjusted in accordance with paragraph 5.

FLEXIBILITY ADJUSTMENTS

SWING

5.(A)(I) The Specific Limits set out in Annex B do not include any adjustments permitted under parag raph 5.

(A)(II) During any Agreement Period, the Specific Limits set out in Annex B may be increased by not more than 7 percent swing provided that a corresponding reduction in square meters equivalent is made in one or more other Specific Limits during the same Agreement Period.

(A)(III) No specific limit may be decreased pursuant to paragraph 5(A)(I) to a level which is below the level of exports charged against that category's limit for that agreement year.

(A) (IV) The Government of the Republic of Bulgaria shall indicate to the Government of the United States the specific limits or sub-limits it would like increased and those which it would like decreased by commensurate quantities in square meters equivalent.

CARRYOVER AND CARRYFORWARD

(B)(I) The extent to which any Specific Limit set out in Annex B may be exceeded in any Agreement Period by Carryforward (borrowing a portion of the corresponding Specific Limit from the succeeding Agreement Period) and/or Carryover (the use of any unused yardage (Shortfall) of the corresponding Specific Limit for the previous Agreement Period) is 11 percent, of which Carryforward shall not constitute more than 7 percent.

(B)(II) No Carryover shall be available for application in the first Agreement Period. No Carryforward shall be available for application in the final Agreement Period.

(C) For the purposes of the Agreement, a Shortfall occurs when exports of textiles or textile products of Bulgaria to the United States during any Agreement Period are below any specific limit as set out in Annex B (or, in the case of any limit decreased pursuant to paragraph 5, when such exports are below the limit as decreased).

(D) The Government of the Republic of Bulgaria will notify the Government of the United States when it wishes to use unused yardage (Shortfall) available in Categories for Carryover, or for use by other Categories for Swing, subject to the provisions set out above. However, the Government of the United States may supply adjustments under this Section to any Specific Limit whenever that adjustment appears appropriate to facilitate the flow of trade and the sound administration of the Agreement. To the extent that such adjustment are actually utilized, they will be implemented by means of Carryover and Carryforward, in that order. Any unused Carryforward will be re-credited to the following period's limit. This procedure will not prejudice the outcome of any consultations that may be held between our Governments concerning the amounts of available Carryover and Carryforward.

OVERSHIPMENT CHARGES

6. (A) Products of Bulgaria shipped in excess of authorized limits in any Agreement Period may be denied entry into the United States. Any such shipment denied entry may be permitted into the United States and charged to the applicable limit in the succeeding Agreement Period.

(B) Products of Bulgaria shipped in excess of applicable limits in any Agreement Period will, if allowed entry into the United States during that Agreement Period, be charged to the applicable limit in the succeeding Agreement Period.

(C) Any action taken pursuant to sub-paragraph 6(A) and 6(B) above, will not prejudice the rights of the other side regarding consultations.

SPACING PROVISIONS

7. The Government of the Republic of Bulgaria shall use its best efforts to space exports of its products to the United States within each category, sub-category, or part category evenly throughout each Agreement Period, taking into consideration normal seasonal factors.

U.S. ASSISTANCE IN IMPLEMENTATION OF THE LIMITATION PROVISION

8. The Government of the Republic of Bulgaria shall administer its export control system under the Agreement. The Government of the United States may assist the Government of the Republic of Bulgaria in implementing the limitation provisions of this Agreement by controlling, by the date of export, imports of textiles and textile products covered by this Agreement.

EXCHANGE OF INFORMATION

9. Subject to domestic laws, at the request of the other Government, each Government agrees to supply any information within its possession reasonably believed to be necessary for the enforcement of this Agreement.

EXCHANGE OF DATA

10. (A) The Government of the United States shall promptly supply the Government of the Republic of Bulgaria with data on monthly imports of cotton, man-made fiber, wool, silk-blend and non-cotton vegetable fiber textiles and textile products of Republic of Bulgaria into the United States.

(B) The Government of the Republic of Bulgaria shall promptly supply the Government of the United States with data on monthly exports of cotton, man-made fiber, wool, silk blend and non-cotton vegetable fiber textiles and textile products of Republic of Bulgaria to the United States.

COOPERATION IN THE PREVENTION OF CIRCUMVENTION

11. The Government of the United States of America and the Government of the Republic of Bulgaria agree to take measures necessary to prevent circumvention by transshipment, re-routing and false declaration concerning country of origin, and falsification of official documents. Accordingly, the Government of the Republic of Bulgaria shall establish the necessary legal provisions and/or administrative procedures to guarantee full compliance with the Agreement. Both parties agree that, consistent with their domestic laws and procedures, they will cooperate fully to address problems arising from circumvention.

12. Should either party believe that this Agreement is being circumvented by transshipment, re-routing, false declaration concerning country or place of origin, or falsification of official documents, and that no, or inadequate measures are being applied to address or to take action against such circumvention, both parties shall consult with a view to seeking a mutually satisfactory solution. Such consultation should be held promptly, and within 30 days when possible.

Both parties agree, consistent with their domestic laws and procedures, to take necessary action to prevent, to investigate, and where appropriate, to take legal and/or administrative action against circumvention practices within their territory. Both parties agree to cooperate fully, consistent with their domestic laws and procedures, in instances of circumvention or alleged circumvention of this Agreement, to establish the relevant facts in the places of import, export and, where applicable, transshipment. It is agreed that such cooperation, consistent with domestic laws and procedures, will include investigation of circumvention practices which increase restrained exports to the United States of America; exchange of documents, correspondence, reports and other relevant information to the extent available; and facilitation of plant visits and contacts, upon request and on a case-by-case basis. Both parties should endeavor to clarify the circumstances of any such instances of circumvention, including the respective roles of the exporters or importers involved.

14. Where, as a result of investigation, there is sufficient evidence that circumvention has occurred (e.g., where evidence is available concerning the place of true origin, and circumstances of such circumvention) both parties agree to take appropriate action, to the extent necessary to address the problem. Such action may include the denial of entry of goods or, where goods have entered, having due regard to the actual circumstances and the involvement of the country of true origin, the adjustment of charges to restraint levels to reflect the true country of origin. Also, where there is evidence that the goods have been transshipped through the Republic of Bulgaria, such action may include the introduction of restraints. Any such actions, together with their timing and scope, may be taken after consultations held with a view to arriving at a mutually satisfactory solution. Both parties may agree on other remedies in consultation.

15. Both parties agree that false declaration concerning fiber content, quantities, description or classification of merchandise also frustrates the objective of this Agreement. Where there is evidence that any such false declaration has been made for the purpose of circumvention, both parties agree to take appropriate measures, consistent with domestic laws and procedures, against the exporters and importers involved. Should either party believe that this Agreement is being circumvented by such false declarations and that no, or inadequate, administrative measures are being applied to address and/or to take action against such circumvention, that party should consult promptly with the party involved with a view to seeking a mutually satisfactory solution. This provision is not intended to prevent parties from making technical adjustments when inadvertent errors in declarations have been made.

MUTUALLY SATISFACTORY ADMINISTRATIVE ARRANGEMENTS

16. Mutually satisfactory administrative arrangements or adjustments may be made to resolve minor problems arising in the implementation of this Agreement, including differences in points of procedure or operation.

CONSULTATION ON IMPLEMENTATION QUESTIONS

17. The Government of the United States and the Government of the Republic of Bulgaria each agree to consult upon the request of the other on any question arising in the implementation of this Agreement.

RIGHT TO PROPOSE REVISIONS TO THE AGREEMENT

18. The Government of the United States and the Government of the Republic of Bulgaria may at any time propose revisions to the term of this Agreement. Each agrees to consult promptly with the other about such proposals with a view to making such revisions to this Agreement, or taking such other appropriate action as may be mutually agreed upon.

RIGHT TO TERMINATE THE AGREEMENT

19. Either Government may terminate this Agreement, effective at the end of an Agreement Period, by written notice to the other Government, to be given at least 90 days prior to the end of such Agreement Period.

If the foregoing conforms with the understanding of the Government of the Republic of Bulgaria, this Note and the Note of Confirmation on behalf of the Government of the Republic of Bulgaria shall constitute an agreement between our two Governments. The Agreement set forth in this exchange of Notes shall enter into force upon the date of the Government of the Republic of Bulgaria's reply and shall supersede and replace the Memorandum of Understanding between the United States and the Republic of Bulgaria regarding trade in textiles that entered into force on March 10, 1993.

The Annexes shall be considered an integral part of the Agreement.

The Embassy of the United States of America avails itself of this opportunity to renew to the Ministry of Foreign Affairs of the Republic of Bulgaria the assurance of its highest consideration.

Embassy of the United States of America, Sofia, December 2, 1993


ANNEX A


U.S. TEXTILE AND APPAREL CATEGORY SYSTEM UNDER THE HARMONIZED SYSTEM

Categories numbered in the:

200 series are of cotton and/or man-made fiber 300 series are of cotton 400 series are of wool 600 series are of man-made fiber 800 series are of silk blends or other non-cotton vegetable fibers 
  
   

Category Description Unit
Number
Conversion Factor to Sq.

Meter Equivalent Yarn:
 

Cotton and Man-Made Fiber:
 

200 Yarns put up for retail sale and sewing thread Kg 6.6
201 Specialty yarns Kg 6.5

 

Cotton:
 

300 Carded yarns, cotton Kg 8.5
301 Combed yarns, cotton Kg 8.5

 

Wool:
 

400 Wool yarn Kg 3.7

 

Man-Made Fiber:
 

600 Textured filament yarns Kg 6.5
603 Yarn containing 85 percent or more
by weight artificial staple fiber
Kg 6.3
604 Yarn containing 85 percent or more
by weight synthetic staple fiber
Kg 7.6
606 Non-textured filament Kg 20.1
607 Other staple fiber yarn Kg 6.5
800 Silk blends and non-cottonvegetable fibres Kg 8.5

 

Fabric:
 

Cotton and Man-Made Fiber:
 

218 of yarns of different colors M2; 1.0
219 Duck M2 1.0
220 Fabric of special weave M2 1.0
222 Knit fabric Kg 12.3
223 Non- woven fabrics Kg 14.0
224 Pile & tufted fabrics M2 1.0
225 Blue denim M2 1.0
226 Cheesecloth, batistes, laws or voiles M2 1.0
227 Oxford cloth M2 1.0
229 Special purpose fabric Kg 13.6

 

Cotton:
 

313 Sheeting M2 1.0
314 Poplin & broadcloth M2 1.0
315 Print cloth M2 1.0
317 Twills M2 1.0
326 Sateens M2 1.0

 

Wool:
 

410 Woven fabrics containing 36 percent or more by weight wool M2 1.0
414 Other wool fabrics Kg 2.8

 

Man-made fiber:
 

611 Woven man- made fiber fabric containing 85 percent or more by weight artificial staple fiber M2 1.0
613 Sheeting M2 1.0
614 Poplin & broadcloth M2 1.0
615 Print cloth M2 1.0
617 Twills & sateens M2 1.0
618 Woven artificial filament fabric M2 1.0
619 Polyester filament fabric, less than 170 gr. per M2 M2 1.0
620 Other synthetic filament fabric M2 1.0
621 Impression fabric Kg 14.4
622 Glass fiber fabric M2 1.0
624 Woven man- made fiber fabric, containing more than 15 percent but less than 36 percent wool M2 1.0

 

Staple/Filament Combination:
 

625 Poplin and broadcloth M2 1.0
626 Print cloth M2 1.0
627 Sheeting M2 1.0
628 Twills and Sateens M2 1.0
629 Other ММФ М2 1.0

 

Silk-Blend and Non-Cotton Vegetable Fiber:
 

810 Woven fabric of silk blends or non- cotton vegetable fiber M2 1.0

 

Apparel Cotton and Man-Made Fiber:
 

237 Playsuits, sunsuits, etc. Doz 19.2
239 Infants` apparel Kg 6.3

 

Cotton:
 

330 Handkerchiefs Doz 1.4
331 Gloves & mittens Dpr 2.9
332 Hosiery Dpr 3.8
333 M & B suit- type coats Doz 30.3
334 Other M & B coats Doz 34.5
335 W & G coats Doz 34.5
336 Dresses Doz 37.9
338 M & B knit shirts Doz 6.0
339 W & G knit shirts & blouses Doz 6.0
340 M & B shirts, not knit Doz 20.1
341 W & G shirts & blouses, not knit Doz 12.1
342 Skirts Doz 14.9
345 Sweaters Doz 30.8
347 M & B trousers, slacks & shorts Doz 14.9
348 W & G trousers, slacks & shorts Doz 14.9
349 Brassieres & body supporting garments Doz 4.0
350 Dressing gowns, etc. Doz 42.6
351 Nightwear & pajamas Doz 43.5
352 Underwear Doz 9.2
353 M & B down- filled coats Doz 34.5
354 W & G down- filled coats Doz 34.5
359 Other cotton apparel Kg 8.5

 

Wool:
 

431 Gloves & mittens Dpr 1.8
432 Hosiery Dpr 2.3
433 M & B suit- type coats Doz 30.1
434 Other M & B coats Doz 45.1
435 W & G coats Doz 45.1
436 Dresses Doz 41.1
438 Knit shirts & blouses Doz 12.5
439 Infants` wear Kg 6.3
440 Shirts & blouses, not knit Doz 20.1
442 Skirts Doz 15.0
443 M & B suits Nos 3.76
444 W & G suits Nos 3.76
445 M & B sweaters Doz 12.4
446 W & G sweaters Doz 12.4
447 M & B trousers, slacks & shorts Doz 15.0
448 W & G trousers, slacks & shorts Doz 15.0
459 Other wool apparel Kg 3.7

 

Man-Made Fiber:
 

630 Handkerchiefs Dpr 1.4
631 Gloves & mittens Dpr 2.9
632 Hosiery Dpr 3.8
633 M & B suit- type coats Doz 30.3
634 Other M & B coats Doz 34.5
635 W & G coats Doz 34.5
636 Dresses Doz 37.9
638 M & B knit shirts Doz 15.0
639 W & G knit shirts & blouses Doz 12.5
640 M & B shirts, not knit Doz 20.1
641 W & G shirts & blouses Doz 12.1
642 Skirts Doz 14.9
643 M & B suits Nos 3.76
644 W & G suits Nos 3.76
645 M & B sweaters Doz 30.8
646 W & G sweaters Doz 30.8
647 M & B trousers, slacks & shorts Doz 14.9
648 W & G trousers, slacks & shorts Doz 14.9
649 Brassieres & body supporting garments Doz 4.0
650 Dressing gowns, etc. Doz 42.6
651 Nightwear & pajamas Doz 43.5
652 Underwear Doz 13.4
653 M & B down- filled coats Doz 34.5
654 W & G down- filled coats Doz 34.5
659 Other man- made fiber apparel Kg 14.4

 

Silk-Blends or Non-Cotton Vegetable Fiber:
 

831 Gloves & mittens Dpr 2.9
832 Hosiery Dpr 3.8
833 M & B suit- type coats Doz 30.3
834 Other M & B coats & jackets Doz 34.5
835 W & G coats & jackets Doz 34.5
836 Dresses Doz 37.9
838 Knit shirts, blouses & tops Doz 11.7
839 Infants` wear Kg 6.3
840 Not knit shirts & blouses Doz 16.7
842 Skirts Doz 14.9
843 M & B suits Nos 3.76
844 W & G suits Nos 3.76
845 Sweaters of vegetable fiber Doz 30.8
846 Sweaters of silk blend Doz 30.8
847 Trousers, slacks & shorts Doz 14.9
850 Robes & dressing gowns Doz 42.6
851 Nightwear & pajamas Doz 43.5
852 Underwear Doz 11.3
858 Neckwear Kg 6.6
859 Other apparel Kg 12.5

 

Made-Up & Miscellaneous Textiles Cotton:
 

360 Pillowcases Nos 0.9
361; Sheets Nos 5.2
362 Bedspread & quilts Nos 5.8
363 Terry & other pile towels Nos 0.4
369 Cotton manufactures, not specified ( NSPF ) Kg 8.5

 

Wool:
 

464 Blankets Kg 8.5
465 Floor coverings M2 1.0
469 Wool manufacturers ( NSPF ) Kg 3.7

 

Man-Made Fiber:
 

665 Floor coverings M2 1.0
666 Other furnishings Kg 14.4
669 Man- made fiber manufactures ( NSPF ) Kg 14.4
670 Flat goods, handbags, luggage Kg 3.7

 

Silk Blends or Non-Cotton Vegetable Fiber:
 

863 Towels Nos 0.4
870 Luggage Kg 3.7
871 Flat goods and handbags Kg 3.7
899 Other silk blend and non- cotton vegetable manufactures Kg 11.1

 


 

ANNEX B


Category 410
 

Calendar Year 1993: 725,000 M2

Calendar Year 1994: 732,250 M2

Calendar Year 1995: 739,573 M2
 

Category 435
 

Calendar Year 1993: 20,000 dozens

Calendar Year 1994: 20,200 dozens

Calendar Year 1995: 20,402 dozens
 

Category 448
 

Calendar Year 1993: 20,000 dozens

Calendar Year 1994: 20,200 dozens

Calendar Year 1995: 20,402 dozens
 


DEPARTMENT OF STATE OFFICE OF LANGUAGE SERVICES
Translating Division

LS No. 143481 JS Bulgarian

Ministry of Foreign Relations

No. 54-05-150

The Ministry of Foreign Relations of the Republic of Bulgaria presents its compliments to the Embassy of the United States of American in Sofia and has the honor to confirm receipt of its note no. 328 of December 2, 1993, which reads as follows:

[See text of U.S. note.]32

In reply, the Ministry of Foreign Affairs of the Republic of Bulgaria has the honor to advise that the Government of the Republic of Bulgaria accepts the proposal of the Government of the United States of America and agrees that the Embassy's note and this reply thereto shall constitute an Agreement between the Governments of the Republic of Bulgaria and the United States of America.

The Ministry of Foreign Affairs of the Republic of Bulgaria avails itself of this occasion to renew to the Embassy of the United States of America the assurance of its highest consideration.

Sofia December 23, 1993

/Stamp of the Ministry of Foreign Affairs of the Republic of Bulgaria/