WITH RESPECT TO the Government of The Republic of Indonesia and the

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1 MEMORANDUM OF UNDERSTANDING BETWEEN THE REPUBLIC OF INDONESIA AND THE UNITED STATES OF AMERICA CONCERNING COOPERATION IN TRADE IN TEXTILE AND APPAREL GOODS WITH RESPECT TO the Government of The Republic of Indonesia and the Government of the United States of America, hereinafter referred to individually as a ' Party" and collectively as the "Parties"; WHEREAS the Parties acknowledge and respect their respective laws, regulations, and procedures affecting trade in textile and apparel goods; and WHEREAS the Parties share the mutual objective of eliminating violations of their respective laws, regulations, and procedures affecting trade in textile and apparel goods, and in particular of eliminating violations that disrupt legal trade in textile and apparel goods; THEREFORE, the Parties agree that: 1. The competent authorities of the Parties shall cooperate for the purpose of: (a) enforcing or assisting in the enforcement of their respective laws, regulations, and procedures affecting trade in texti le and apparel goods; (b) ensuring the accuracy of claims of origin (including preference claims) for textile and apparel goods;

2 (c) preventing circumvention of laws; regulations; and procedures of either Party or international agreements affecting trade in textile and apparel goods; and (d) deterring illegal transshipment, re-routing, false declaration concerning country of origin or place of origin, and falsification of official documents. 2. Upon the request of the importing Party, and based on evidence provided by that Party, the competent authority of the exporting Party shall promptly conduct an examination, including a verification visit, of exports of textile and apparel goods on a targeted basis in order to ensure the effective enforcement of the relevant laws, regulations, and procedures of both Parties. The exporting Party shall, within 30 business days of the completion of the examination, provide to the importing Party the results of any such examination that leads to the discovery of activity that the exporting Party suspects violates relevant laws, regulations, or procedures, including all evidence and information available to it regarding the suspected violation. Such infonnation shall, upon the request of the impo1ting Party, be in writing and in a form admissible in judicial or administrative proceedings of the importing Party. 3. The importing Party shall preserve the confidentiality of information received pursuant to paragraph 2, in accordance with its laws, regulations, and procedures. 4. The exporting Party shall ensure that the exporter provides the name and address of the actual manufacturer on each commercial invoice. 2

3 f- 5. Upon the request of either Party, and when that Party deems necessary and appropriate, responsible officials or experts of the competent authorities of the Parties shall meet under mutually convenient circumstances to exchange information on the enforcement of their respective laws, regulations, and procedures affecting trade in textile and apparel goods, and to examine and report on compliance with such laws, regulations, and procedures by their respective companies, enterprises, or units. 6. Subject to subparagraphs (a)-( d), the competent authority of the exporting Party shall allow the competent authority of the importing Party to join a further examination or verification, including by participating, along with the competent authority of the exporting Party, in visits in the territory of the exporting Party to the premises of an enterprise for the purpose of determining whether its plants and faci lities are engaged in production or practices that would contribute to the circumvention of laws, regulations, or procedures of either Party or international agreements affecting trade in textile and apparel goods. (a) A Party intending to conduct a visit under this paragraph shall provide written notice no later than 15 business days in advance ofthe intended visit to the responsible officials of the other Party, identifying the number of plants and facilities to be visited, the intended dates of the visit, and the reason for the visit. (b) Neither Party may notify plants and facilities to be visited under this paragraph in advance. At the time of the visit, the responsible officials of the exporting Party shall obtain permission from the responsible person at the plant or facility. If permission is denied, the visit shall not be conducted. 3

4 (c) If permission to conduct the visit is denied, either Party may take appropriate action. (d) If permission to conduct the visit is granted, the responsible officials of the importing Party shall join the responsible officials of the exporting Party to determine whether the plant or facility subject to the visit is engaged in production or practices that have contributed to the circumvention of laws, regulations, or procedures of either Party or international agreements affecting trade in textile and apparel goods. 7. Upon the request of the importing Party, the exporting Party shall provide documents in support of a claim of origin for textile or apparel goods. Such request may concern the finished goods, or its raw materials or components. Such documents may include, but are not limited to, certificates of origin, original copies ofbills of lading, contracts, invoices, and other business documents. 8. The Parties shall continue to develop ways to strengthen the effective control of trade in textile and apparel goods by working to enhance their respective processes and procedures through the exchange of information and data; the verification of documents, such as certificates of origin, invoices, and original copies of bills of lading; and the sharing of enforcement techniques. 9. The Parties shall consult at regular intervals regarding the effective implementation of this Memorandum of Understanding. 4

5 I 0. Either Party may request, in writing, the revision or amendment of any or all parts of this Memorandum of Understanding. Any revision or amendment that has been agreed to by the Parties shall come into effect on such date as the Parties agree. II. This Memorandum of Understanding shall enter into force on the date of its signing. Either Party may terminate this Memorandum of Understanding by notifying the other Party in writing of its intention to terminate at least 30 (thirty) days in advance. Termination ofthis Memorandum of Understanding shall not affect the validity and duration of any activities being carried out under the terms of this Memorandum ofunderstanding until completion of such activities. IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Memorandum of Understanding. DONE at Washington on this 26th day of September, 2006 in two original versions in the English Language, both texts being equally authentic. For the Government of The Republic of Indonesia Signed Mari E. Pangestu Minister folq'rade For the Government of the United States of America Signed Susan C. Schwab U.S. Trade Representative 5