Main Contents of the Vietnam – US Textile Agreement.

APPENDIX

Appendix 1: Main contents of the Vietnam - US Textile Agreement.

Appendix 2: Harmonized System of Classification of Textiles and Apparel of the United States

Appendix 3: Unit prices of items in 5 monitored groups

APPENDIX 1: MAIN CONTENTS OF THE VIETNAM-US TEXTILE AGREEMENT 39

1. Term of the Agreement

The Agreement shall enter into force from May 1, 2003 to December 31, 2004. If the Parties do not terminate the Agreement or renegotiate the Agreement before December 1, 2004 or before December 1 of each subsequent year until Vietnam joins the WTO, the Agreement shall automatically remain in force for another year.

2. Quota

In 2003, Vietnam's quotas will be determined according to the following base levels. These quotas will be increased by 7% each year (2% for wool products).

Cat.

Describe	Unit	Quota 2003
200	Fiber	Kg	300,000
301	Spread cotton yarn	Kg	680,000
332	Cotton socks	Double dozen	1,000,000
333	Men's vest jacket	Dozen	36,000
334/335	Cotton jacket	Dozen	675,000
338/339	Cotton knit shirt	Dozen	14,000,000
340/640	Men's woven shirts	Dozen	2,000,000
341/641	Women's woven shirt	Dozen	762,698
342/642	Short skirt	Dozen	554,684
345	Cotton sweater	Dozen	300,000
347/348	Cotton pants	Dozen	7,000,000
351/651	Pajamas and sleepwear	Dozen	482,000
352/652	Underwear	Dozen	1,850,000
359/659-C	Overalls	Kg	325,000
359/659-S	Bathing costume	Kg	525,000
434	Men's wool coat	Dozen	16,200
435	Women's wool coat	Dozen	40,000

Maybe you are interested!

39 Source : http://vietnamese.vietnam.usembassy.gov/textile_agreement.html

440

Wool woven shirt	Dozen	2,500
447	Men's wool pants	Dozen	52,000
448	Women's wool pants	Dozen	32,000
620	Woven fabric of filament yarn	Dozen	6,364,000
632	Synthetic fiber socks	Double dozen	500,000
638/639	Synthetic fiber knitted shirt	Dozen	1,271,000
645/646	Synthetic fiber sweater	Dozen	200,000
647/648	Synthetic fiber pants	Dozen	1,973,318

3. Flexible adjustment

Specific quotas may be adjusted (upward) by no more than 6% per year (by adjusting other quotas (downward) so that the total quota remains unchanged). Specific quotas may be adjusted annually by Carry-Over (borrowing part of the following year's quota) or Carry-Over (using unused portions of the previous year's quota). However, no quota may be adjusted by more than 11% per year using the above flexibilities. The Carry-Over portion shall be no more than 8% for categories 338/339 and 347/348, and no more than 6% for all other products.

4. Visa Agreement

Vietnam will grant visas for all types of export goods subject to drought

quota

5. Ensure implementation

Each Party agrees to provide such information as the other Party deems necessary to

implement the Agreement and provide relevant monthly import and export data. The Parties agree to take necessary measures to investigate and punish fraudulent acts, and to cooperate fully with each other to address fraud. The Parties agree to facilitate factory visits to verify production claims, and Vietnam agrees to suspend the issuance of visas to companies that deny access to customs authorities. If Vietnam discovers fraudulent acts, Vietnam will investigate and notify the Government of the United States of the results. After consultations, if the United States has clear evidence of fraud or demonstrates a high probability that fraud has occurred, the United States may

deduct from Vietnam's corresponding quota an amount not exceeding the quantity of fraudulent goods. If the United States has clear evidence of multiple cases of fraud occurring within a 12-month period, the United States has the right to "triple penalty" on Vietnam's corresponding textile quota.

6. Consultation mechanism

If the United States considers that imports of textiles originating in Vietnam not subject to the Specific Quotas under this Agreement are disruptive to the U.S. textile market and threaten to impede the orderly development of trade between the Parties, the Government of the United States of America may request consultations with the Government of Vietnam with a view to mitigating or avoiding such market disruption.

7. Market access

Vietnam will maintain its textile tariffs at 7% for yarn, 12% for fabric, and 20% for clothing. In accordance with the U.S.-Vietnam Bilateral Trade Agreement, Vietnam will also grant the United States Most Favored Nation treatment and agree to refrain from imposing non-tariff barriers.

8. Labor Terms

Vietnam reaffirmed its commitment under the International Labor Organization (ILO) and agreed to enhance cooperation with the ILO. Vietnam agreed to support the implementation of codes of corporate social responsibility. The U.S. Department of Labor and the Ministry of Labor, Invalids and Social Affairs of Vietnam committed to implementing the November 2000 Memorandum of Understanding (MOU) and will meet to review progress toward improving working conditions in the textile and garment industry in Vietnam.

9. Quota accuracy

The Parties note that quota levels are based on import data and the United States may adjust specific quota levels to more accurately reflect trade conditions.

APPENDIX 2: US TEXTILE AND APPAREL CATEGORY SYSTEM UNDER THE HARMONIZED SYSTEM 40

The Cat. are numbered.

200 series is cotton and/or man-made fiber. 300 series is cotton

400 series is wool

600 series is synthetic fiber

800 series is a blend of silk or non-cotton vegetable fibers


CATS	ITEM DESCRIPTION	UNIT	M 2 CONVERSION RATE
YARN
200	Yarn for retail and sewing thread	Kg	6.60
201	Special yarn	Kg	6.50
300	Carded cotton	Kg	8.50
301	Combed cotton	Kg	8.50
400	Wool	Kg	3.70
600	Textured silk thread	Kg	6.50
603	Yarn containing 85% or more by weight of man-made staple fibers	Kg	6.30
604	Yarn containing 85% or more by weight of synthetic staple fibers	Kg	7.60
606	Untextured filament yarn	Kg	20.10
607	Other staple fiber yarns	Kg	6.50
800	Blends of silk or vegetable fibers other than cotton	Kg	8.50
FABRIC
218	From different colored yarn	M2	1.00
219	Thick cotton fabric	M2	1.00
220	Special woven fabric	M2	1.00
222	Knitted fabric	M 2	12:30

40 Source : http://www.mot.gov.vn/mot/tag.idempotent.render.userLayoutRootNode.target.n253.uP?u P_root=me&action=view-policies-action

223

Nonwoven fabric	M 2	14.00
224	Velvet, wool	M 2	1.00
225	Blue denim fabric	M 2	1.00
226	Thin fabric, chiffon, batik, chiffon	M 2	1.00
227	Fabric tie	M 2	1.00
229	Special purpose fabric	M 2	13.60
313	Bed sheet fabric	M 2	1.00
314	Poplin and thin wool double weight	M 2	1.00
315	Floral print fabric	M 2	1.00
317	Twill	M 2	1.00
326	Satin fabric	M 2	1.00
410	Woven fabric	M 2	1.00
414	Other wool fabrics	Kg	2.80
611	Woven fabrics containing 85% or more by weight of man-made staple fibers	M 2	1.00
613	Rug	M 2	1.00
614	Poplin and thin wool double weight	M 2	1.00
615	Floral print fabric	M 2	1.00
617	Twill and satin	M 2	1.00
618	Woven fabrics of man-made filament fibres	M 2	1.00
619	Polyester filament fabric	M 2	1.00
620	Other synthetic filament fabrics	M 2	1.00
621	Printed fabric	Kg	14.40
622	Fiberglass fabric	M 2	1.00
624	Woven fabrics of man-made fibres containing more than 15% but less than 36% wool	M 2	1.00
625	Double weight poplin and wool blends of staple and filament fibres	M 2	100
626	Printed fabric from staple and filament blends	M 2	1.00
627	Fabrics made from staple and filament blends	M 2	1.00
628	Twill and satin fabrics of staple and filament blends	M 2	1.00
629	Other fabrics of staple and filament blends	M 2	1.00
810	Woven fabrics, silk and non-cotton vegetable fibres	M 2	1.00
CLOTHES
237	Play clothes and sun clothes	Dozen	19.20

etc.
239	Children's clothing and clothing accessories	Kg	6.30
330	Smell	Dozen	1.40
331	Gloves and mittens	Double dozen	2.90
332	Socks	Double dozen	3.80
333	Men's suit jacket	Dozen	30.30
334	Other types of men's jackets	Dozen	34.50
335	Women's jackets	Dozen	34.50
336	Long dress	Dozen	37.90
338	Men's knitwear	Dozen	6.00
339	Women's knitted tops and shirts	Dozen	6.00
340	Men's shirts, not knit shirts	Dozen	20.10
341	Women's shirt, not knitted	Dozen	12.10
342	Long dress	Dozen	14.90
345	Sweater	Dozen	30.80
347	Men's trousers and shorts	Dozen	14.90
348	Women's pants and shorts	Dozen	14.90
349	Corsets and other tight-fitting garments	Dozen	4.00
350	Long dress, cape...	Dozen	42.60
351	Sleepwear and pajamas	Dozen	43.50
352	Underwear	Dozen	9.20
353	Men's down jacket	Dozen	34.50
354	Women's down jacket	Dozen	34.50
359	Other cotton shirts	Kg	8.50
431	Gloves and mittens	Double dozen	1.80
432	Socks	Double dozen	2.30
433	Men's suit jacket	Dozen	30.10
434	Other types of men's jackets	Dozen	45.10
435	Women's jackets	Dozen	45.10
436	Long dress	Dozen	41.10
438	Women's knitted shirt	Dozen	12.50
439	Children's clothing and clothing accessories	Kg	6.30
440	Shirt, non-knitted	Dozen	20.10
442	Short skirt	Dozen	15.00
443	Men's suit	Set	3.76
444	Women's suit	Set	3.76

445

Men's sweater	Dozen	12.40
446	Women's sweater	Dozen	12.40
447	Men's trousers and shorts	Dozen	15.00
448	Women's pants and shorts	Dozen	15.00
459	Other woolen clothing	Kg	3.70
630	Smell	Dozen	1.40
631	Gloves and mittens	Double dozen	2.90
632	Socks	Double dozen	3.80
633	Men's suit jacket	Dozen	30.30
634	Other types of men's jackets	Dozen	34.50
635	Women's coats	Dozen	34.50
636	Long dress	Dozen	37.90
638	Men's knitted shirts	Dozen	15.00
639	Women's knitted shirt	Dozen	12.50
640	Men's shirt, non-knitted	Dozen	20.10
641	Women's shirt, non-knitted	Dozen	12.10
642	Short skirt	Dozen	14.90
643	Men's suit	Set	3.76
644	Women's suit	Set	3.76
645	Men's sweater	Dozen	30.80
646	Women's sweater	Dozen	30.80
647	Men's trousers and shorts	Dozen	14.90
648	Women's pants and shorts	Dozen	14.90
649	Corsets and bodysuits	Dozen	4.00
650	Long dress, coat...	Dozen	42.60
651	Sleepwear and pajamas	Dozen	43.50
652	Underwear	Dozen	13.40
653	Men's down jacket	Dozen	34.50
654	Women's down jacket	Dozen	34.50
659	Other clothing made of man-made fibres	kg	14.40
831	Gloves and mittens	Double dozen	2.90
832	Socks	Double dozen	3.80
833	Men's suit jacket	Dozen	30.30
834	Men's jackets	Dozen	34.50
835	Women's jackets	Dozen	34.50
836	Long dress	Dozen	37.90
838	Knitted shirts and jackets	Dozen	11.70

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