Page:United States Statutes at Large Volume 69.djvu/459

 69 S T A T. ]

PUBLIC LAW 196-AUG. 1, 1955

417

"(f) During each of the calendar years 1971 to 1973, inclusive, twenty per centum. " (g) On and after January 1, 1974, nil. The following Schedule to Paragraph 2 shall constitute an integral part thereof: "SCHEDULE OF TARIFF QUOTAS

"Item A B

C D

Classes of Articles Cigars (exclusive of cigarettes, cheroots of all kinds, and paper cigars and cigarettes, including wrappers). Scrap tobacco, and stemmed and unstemmed filler tobacco described in Paragraph 602 of the Tariff Act of 1930 of the United States, as amended, which is set forth as Annex III to this Agreement. Coconut oil Buttons of pearl or shell

Amounts 200,000,000 cigars 6,500,000 lbs.

200,000 long tons 850,000 gross

The quantities shown in the Schedule to this Paragraph represent base quantities for the purposes of computing the tariff-free quota and are not absolute quotas. Any such Philippine article so entered, or withdrawn from warehouse, in excess of the duty-free quota provided in this Paragraph shall be subject to one hundred per centum of the United States duty as defined in Subparagraph (g) of Paragraph 1 of the Protocol. "ARTICLE III

" 1. Except as otherwise provided in Article II or in Paragraph 2 of this Article, neither country shall impose restrictions or prohilbitions on the importation of any article of the other country, or on the exportation of any article to the territories of the otner country, unless the importation of the like article of, or the exportation of the like article to, all third countries is similarly restricted or prohibited. If either country imposes quantitative restrictions on the importation or exportation of any article in which the other country has an important interest and if it makes allotments to any third country, it shall afford such other country a share proportionate to the amount of the article, by quantity or value, supplied by or to it during a previous representative period, due consideration being given to any special factors affecting the trade in such article. "2. (a) Notwithstanding the provisions of Paragraph 1 of this Article, with respect to quotas on United States articles as defined in Subparagraph (e) of Paragraph 1 of the Protocol or with respect to quotas on Philippine articles as defined in Subparagraph (f) of Paragraph 1 of the Protocol (other than the articles for which quotas are provided in Paragraph 1 of Article II) a quota may be established only if— "(1) The President of the country desiring to impose the quota, after investigation, finds and proclaims that, as the result of preferential treatment accorded pursuant to this Agreement, any article of the other country is being imported in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers of like or directly competitive articles; or " (2) The President of the country desiring to impose the quota finds that such action is necessary to forestall the imminent threat of, or to stop, a serious decline in its monetary reserves, or, in the event its monetary reserves are very low, to achieve a reasonable rate of increase in its reserves. " (b) Any quota imposed for any twelve-month period under (a) (1) above for the purpose of protecting domestic industry shall not be less than the amount determined by the President of the importing country as the total amount of the articles of such class which, during 54402 O - 55 - 27

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