Recognizing the spirit of cooperation in which the Coordination
Council for North American Affairs (CCNAA) and the American Ins-
titute in Taiwan (AIT) have consulted on matters of interest to
either party, and recognizing the need for a framework for trade
in certain machine tool products between the territories repres-
ented by CCNAA and AIT, CCNAA and AIT have agreed asrollows :
1.Basis of the Arrangement
The objective of this Arrangement is to provide a framework f-
or trade in certain categories of machine tools between the t-
erritories represented by the parties in order to maintain su-
fficient capacity in the territory represented by the AIT for
production of certain machine tools required for the security
of production of certain machine tools required for the secur-
ity of the territory represented by AIT. To this effect, CCNAA
will ensure that the authorities in the territory represented
by CCNAA will for the period January 1, 1987 through December
31, 1991 restrain exprots destined for consumption in the ter-
ritory represented by AIT of products described in Paragraph 2
(A) of this arrangement (" The Arrangement Products ").
2.Definitions
The following definitions apply to this arrangement ;
(A) Arrangement products : Means the products (assembled or u-
nassembled) libted in Appendix A to this arrangement, inc-
luding kits. That Appendix contains a description of each
product as well as the current tariff classification numb-
er of each product in the territory represented by AIT un-
der the "Tariff schedules of the United States Annotated"
(" TSUSA ") and in the territory represented by the CCNAA
under the Tariff Export Classification Schedule used in t-
hat territory. If any of these classification numbers cha-
nge during the period that this arrangement is in effect,
Appendix A shall be modified to reflect the change. The T-
SUSA item number controls the definition of each arrangem-
ent product.
(B) Destined for consumption in the territory represented by
AIT : means exported directly to the territory represented
by AIT, or indirectly through one or more territories oth-
er than a territory represented by a party to this agreem-
ent.
(C) Transition Period : means November 1, 1986 through Decemb-
er 31, 1986, the day preceding the date of commencement of
export licensing.
(D) Apparent consumption in the territory represented by AIt:
means shipments (deliveries) plus imports miuns exports as
described in Appendix B).
(E) Territory represented by AIT : means the customs territory
of the United States of America and foreign trade zones l-
ocated in the territory of the United States of America.
3.ExportLimits
(A) Between January 1, 1987 and December 31, 1991, CCNAA shall
ensure that in each calendar year export licenses shall be
issued to exporters in the territory represented by CCNAA f-
or each of the following categories of arrangement products
destined for consumption in the territory represented by AIT
in quantities that will not exceed in the aggregate the fol-
lowing percentages of the projected apparent consumption in
the territory represented by AIT for each product category (
"Export Limit") for the relevant period:
Description Percentages
(1) Numerically Controlled Lathes 3.23
(2) Non-Numerically Controlled
Lathes 24.70
(3) Milling Machines 19.29
(4) Machining Centers 4.66
(B) Commencing January 1, 1987, until the expiry or termination
of this arrangement, CCNAA shall ensure that in each calend-
ar year
(1) Each arrangement product destined for consumption in the
territory represented by AIT will be exported form the
territory represented by CCNAA under an export license
in the form shown in Appendix C to the arrangement and
issused by the authorities in the territory represented
by CCNAA and
(2) All export licenses issued for any category of arrangem-
ent product exported from the territory represented by
CCNAA destined for consumption in the territory represe-
nted by AIT will not exceed in the aggregate the export
limit applicable to that product category specified in
paragraph 3 (A) for that calendar year.
(C) During the period referrred to in sub-paragraph (B), CCNAA
shall ensure that the authorities in the territory that it
represents shall issue export licenses containing the infor-
mation prescribed in Appendix C to this Arrangement. To the
extent provided under 1aw in the territory represented by A-
IT, AIT shall ensure that the authorities in the territory
it represents shall require presentation of an original exp-
ort license as a condition of entry into the territory repr-
esented by AIT of arrangement products. To the extent provi-
ded under law in the territory represented by AIT, AIT shall
ensure that the authorities in the territory it represents
shall prohibit entry of such products not accompanined by s-
uch an export license.
(D) During the transition perieod (November 1, 1986 through Dec-
ember 31, 1986), arrangement products may be exported from
the territory represented by CCNAA destined for consumption
in the territory represented by AIT without an export licen-
se provided that the total number of units of each category
of arrangement products so exported during this period shall
not exceed the level set out below for that porduct category
.
Product Level
Machining Centers 56
Milling Machines 576
Numerically Cnotrolled
Lathes 55
Non-numerically
Controlled Lathes 427
(E) AIT shall ensure that the customs service of the territory
that AIT represents shall determine the date of export, bas-
ed on the date of the relevant bill of lading for each unli-
censed arrangement product exported from the territory repr-
esented by CCNAA. CCNAA shall determine the date of export,
based on the date stated in the relevant export license iss-
ued by the authorities represented by it, of each arrangeme-
nt product exported from the territory represented by CCNAA
destined for consumption in the territory represented by AIT
under valid export license issued by the authorities repres-
ented by CCNAA.
(F) Commencing January l, 1987, AIT shall report to CCNAA promp-
tly any importation into the territory represented by AIT of
an unlicensed arrangement product, based on the date of the
relevant bill of lading, including the date of export of th-
at product from the territory represented by CCNAA. The qua-
ntity so reported will be counted toward the export limit f-
or that arrangement product for the period in which the pro-
duct was exported from the territory represented by CCNAA.
If an issue arises concerning entry of unlicensed arrangeme-
nt products , AIT and CCNAA will immediately consult to dis-
cuss alternative measures. If consultations do not result in
a satisfactory solution and continued application of this p-
aragraph (Para. 3 F) undermines the objectives of this Arra-
ngement and causes serious difficulties in the restraint of
exports by the authorities in the territory represented by
CCNAA envisaged in this arrangement, the quantity of unlice-
nsed imports reported by AIT will no longer be counted towa-
rd the export limit for the relevant period of exportation.
(G) If any arrangement product that has been imported into the
territory represented by ATT is subsequently exported from
the territory represented by AIT during the period covered
by this arrangement without having been used for its intend-
ed purpose, the export limit for that product category for
the calendar year in which subsequent export occurs shall be
increased by the number of units so exported.
4.Determination of Export Limits
(A) Projection of apparent consumption in the territory represe-
nted by AIT for each arrangement product will be based on s-
tatistics prepared by the appropriate authority of the terr-
itory represented by AIT which compiles such statistics on a
regular basis. AIT, with advice from CCNAA, will select an
independent forecaster which will provide the projections of
apparent consumption in the territory represented by AIT for
the purposes of this arrangement.
(B) The first projection of apparent consumption in the territo-
ry represented by AIT for 1987, will be an amount equal to
two times apparent consumptiom in the territory represented
by AIT for the first six months of 1986. AIT will issue a r-
evised projection of apparent consumption in the territory
represented by AIT for 1987, as provided in Paragraph 4(A),
not later than the last day of February, May , August and O-
ctober 1987, based on actual apparent consumption data from
the territory represented by AIT available for the period to
that date.
AIT shall determine, based on its customs records of the nu-
mber of units imported into the territory represented by AIT
, and report to CCNAA not later than May 31, 1987, the numb-
er of units exported from the territory represented by CCNAA
during the transition period. In case there is a significant
discrepancy between the statistics of the respective territ-
ories regarding the number of units of arrangement products
imported into the territory represented by AIT during this
period, CCNAA may request AIT to provide non-confidential i-
nformation to document the number of units imported into the
territory represented by AIT. CCNAA shall ensure that prior
to May 31, 1987, the amount of exports frxom the territory
represented by CCNAA destined for consumption in the territ-
ory represented by AIT of each category of arrangement prod-
uct under export licenses issued to exporters in the territ-
ory represented by CCNAA shall not exceed in the aggregate 4
0 percent of the export limit applicable to that product ca-
tegory for the calendar year 1987.
If the nmuber of arrangement products in any product catego-
ry exported in the transition period from the territory rep-
resented by CCNAA destined for consumption in the territory
represented by AIT exceeds the level applicable to that pro-
duct category specified above, such excess shall be subtrac-
ted from the export limit for that product category for the
calendar year 1987.
(C) For subsequent calendar years during the term of this Arran-
gement, AIT will issue the first projection of apparent con-
sumption in the territory represented by AIT for each arran-
gement product for each calendar year not later than October
31 of the preceding year and revise the first projection for
each year not later than the last day of December of the pr-
eceding year and the last day of February, May, August and
October of the calendar year covered by such projection.
(D) Commencing 1988, not later than May, 31 of each calendar ye-
ar, AIT shall announce differences between the forecasted a-
pparent consumption and actual apparent consumption for each
arrangement product in the territory represented by AIT in
the previous calendar year. The units available under the e-
xport limit provided in paragraph 3(A) for that arrangement
product for the calendar year immediately following the cal-
endar year in which such announcement is made shall be incr-
eased or reduced by the amount of such difference.
5.Carry-over and Advance Vse of Licenses
CCNAA may adjust the export limits provided in paragraph 3 for
any calendar year by an amount not to exceed five percent the-
reof (the "adjustable portion" ), and may permit any part or
all of the adjustable portion to be carried over for use in t-
he next calendar year or to be subject to advance use in the
current calendar year. AIT must be notified of such advance u-
se or carry-over and all notifications of use must be received
no later than three (3) months before the end of the year in
which any such use is intended. AIT will notify CCNAA when it
cannot agree to the use of carry-over or advance use and CCNAA
will respect such notification. The adjustable portion may be
increased beyond such five percent upon AIT's prior agreement.
All export licenses issued by the authorities represented by
CCNAA in reliance upon any such use of the adjustable portion
or any part thereof must be so marked. Advance use of and adj-
ustable portion or any part thereof of the export limit for a-
ny calendar year shall be made not earlier than November 15 of
the current calendar year and carry-over of the adjustable po-
rtion or any part thereof of the export limit for any calendar
year shall be made not later than February 15 of the following
calendar year.
6.Implementation of the Arrangement
(A) The provisions of this arrangement will be implemented by A-
IT and CCNAA in accordance with the laws and regulations in
force in the territories that they represent. To the extent
provided by law in the territory represented by AIT, AIT wi-
ll ensure that the authorities in the territory it represen-
ts will prohibit entry of unlicensed arrangement products as
provided in paragraph 3(C) of this arrangement.
(B) CCNAA shall ensure that appropriate authorities in the terr-
itory it represents will take the following actions for the
implementation of this arrangement by ensuring that those a-
uthorities issue a written order that :
(1) Requires that each arrangement product to be exported f-
rom the territory represented by CCNAA destined for con-
sumption in the territory represented by AIT will by ac-
companied by an export license in the form described in
appendix C ;
(2) Requires that each arrangement product destined for con-
sumption in the territory represented by AIT will be ex-
ported from the territory represented by CCNAA not later
than 90 days from the date that an Appendix C license f-
or that arrangement product is issued, unless AIT agrees
to an extension of such 90-day period ;
(3) Establishes the export limit for each category of arran-
gement product destined for consumption in the territory
represented by AIT for each calendar year during the te-
rm thereof, commencing January 1, 1987, based on export
limits set out in paragraph 3 and projections (including
revisions thereof) made under and pursuant to paragraph
4 of this arrangement ;
(4) Provides that commencing on January 1, 1987, and until
the expiry or termination of this arrangement, in any two
consecutive quarters, the quantity of exports of any cat-
egory of arrangemnent product destined for consumption in
the territory represented by AIT will nog exceed 60 perc-
ent of the total export limit for that category of arran-
gement product for the relevant period. In the event that
such 60 percent limit will by exceeded in any such two c-
onsecutive quarters, such excess may be exported to the
territory represented by AIT in such two consecutive gua-
rters, provided that AIT agrees in advance of shipment t-
hat export of such excesses are consistent with the obje-
ctives of this arrangement.
(C) Requires each exporter that exports arrangement products fr-
om the territory represented by CCNAA to report monthly to
the appropriate authorities in the territory represented by
CCNAA the following information for each unit exported: De.
scription of arrangement product by category and subcategor-
y where appropriate, export classification number for the t-
erritory represented by CCNAA, quantity exported, direct and
(if known) indirect or ultimate destination, and license nu-
mber.
(D) CCNAA will provide AIT with a letter setting forth the prov-
isions that the authorities in the territory CCNAA represen-
ts will use to implement and enforce this agreement.
Upon receipt of this letter, AIT will provide CCNAA with the
views of the authorities in the territory represented by AIT
regarding the applicability of antitrust laws to actions ta-
ken pursuant to this agreement.
(E) With respect to subassemblies, such as bases, tables, cross
slides, columns, controls, heads, and others set forth in A-
ppendix E, shipped individually or in any combination, which
have important characteristics of unfinished arrangement pr-
oducts, AIT and CCNAA agree to study past and present trends
in machin tool subassemblies trade between the respective t-
erritories and to take appropriate measures to ensure that
imports of these porducts from the territory represented by
CCNAA into the territory represented by AIT do not increase
above 1985 levels to the extent that they impair or threaten
to impair the attainment of the objectives of the arrangeme-
nt.
7.Monitoring
(A) AIT and CCNAA shall exchange
non-proprietary information necessary for the implementation
and enforcement of this Arrangement. Each party to the Arra-
ngement will report to the other party any action it takes
to implement or enforce this Arrangement.
(B) CCNAA shall provide AIT with a report in English containing,
at a minimum, the following non-proprietary information : E-
ach license number, quantity, date of export or expected da-
te of export, and which arrangement product is covered by e-
ach license, not later than 30 days after the end of each q-
uarter and after the end of each month requested. To the ex-
tent possible, this information shall be supplied on comput-
er tape in a format provided by AIT.
(C) AIT will furnish to CCNAA all non-proprietary information a-
nd data relating to :
(1) Its determination under paragraph 3(D) of this Arrangem-
ent ;
(2) Administration of paragraph 3(E) through 3(G) of this A-
rrangement; and
(3) All of the projections and revised projections made und-
er paragraph 4 of this Arrangement.
8.Consultations
Representatives of CCNAA and AIT shall consult annually, and
at any other time at the request of either party, regarding
any matter concerning this Arrangement or its implementation,
operation, or enforcement.
9.Creation of Sub-categories of Ar- rangement Products
(A) CCNAA shall ensure through export licenses issued by the ap-
propriate authorities in the territory it represents that t-
he number of units of various types and sizes of machines w-
ihtin each product category reflects a representative produ-
ct mix of units in that product category exported from the
territory represented by CCNAA destined for consumption in
the territory represented by AIT. If AIT considers that exp-
orts from the territory represented by CCNAA destined for c-
onsumption in the territory represented by AIT of a particu-
lar type of arrangement product increases significantly rel-
ative to the representative product mix (from time to time
defined after taking into accout market conditions in the t-
erritory represented by AIT) , and that material distortions
of trade within an arrangement product category are suffici-
ent to substantially impair or threaten to impair the attai-
nment of the objectives of this arrangement, AIT may request
consultations with CCNAA.
(B) The consultations so requested will be completed no later t-
han 30 days after the date of the request for consultations.
No later than 30 days after the conclusion of consultations,
CCNAA shall ensure that the authorities in the territory it
represents will take such measures as are necessary and app-
ropriate to eliminate the distortion as provided under the
laws and regulations of the territory represented by CCNAA.
Such measures shall include the establishment of appropriate
sub-categories of arrangement product as set forth in Appen-
dix E, which either party determines are necessary to attain
the objectives of the Arrangement. For the purposes of para-
graph 9 (A), the allowable quantity or market share of each
separate subcategory will be calculated on the basis of the
representative product mix.
10.Special Issue Licenses
(A) Whenever AIT determines that the attainment of the objec-
tives of this agreement requires the importation into the
territory represented by AIT of arrangement products in
excess of the applicable export limit for any period of
the Arrangement, AIT shall request CCNAA to request that
the authorities in the territory it represents issue spe-
cial licenses for that period and for that arrangement p-
roduct in such quantity as AIT deems appropriate, in exc-
ess of the export limit applicable thereto.
(B) CCNAA shall take appropriate action such that the author-
ities in the territory it represents may in their discre-
tion issue a special license as described in paragraph 10
(A), upon request by AIT.
(C) Each special license issued under the preceding paragraph
10 (A) shall be marked as such and shall be used within 9
0 days of the date of issuance, unliess AIT agrees to an
extension of the 90-day period.
(D) Upon the signing of this Arrangement, AIT will request t-
hat CCNAA request the authorities in the territory repre-
sented by CCNAA to issue special licenses for eleven (11)
machining centers for export to the territory represented
by AIT in the calendar year 1987.
(E) Upon signing of the Arrangement, AIT will also request t-
hat CCNAA request the authorities in the territory it re-
presents to issue special licenses for 60 numerically co-
ntrolled milling machines for the calendar year 1987 and
30 numerically controlled milling machines in the calend-
ar year 1988, provided that these special issue licenses
are used for exportation of these machines to original e-
quipment manufacturers with manufacturing capability loc-
ated in the territory represented by AIT that was in ope-
ration prior to May 20, 1986.
(F) No arrangement product exported to the territory represe-
nted by AIT under special license issued by the authorit-
ies represented by CCNAA pursuant to AIT's request will
be counted for the purposes of determining the export li-
mit or representative product mix under this arrangement.
11.Additional Monitoring
AIT will ensure that the authorities in the territory repres-
ented by AIT will take appropriate measures to ensure that i-
mports of arrangement products from other territories do not
impair the attainment of the objectives of this Arrangement.
AIT will ensure that the authorities in the territory repres-
ented by AIT will monitor the market share and product mix of
each arrangement product from all territories.
12.Duration
AIT shall grant CCNAA the same treatment in the event that t-
he duration of any comparable arrangement on machine tools h-
as shorter duration than the duration of this Arrangement.
13.Three Year Review
At the end of the third year of this arrangement, AIT and CC-
NAA will thoroughly review the effectiveness of this arrange-
ment in meeting its objectives, and, if both parties agree,
will consult each other as to whether the duration and other
terms of the Arrangement should be modified.
14.Determination of Report to the Authorities in the Territory
Represented by AIT.
Provided that it is determined that CCNAA is effectively imp-
lementing this Arrangement and continues to effectively impl-
ement and enforce this Arrangement during the period of this
Arrangement, the authorities in the territory represented by
AIT will take no action under Section 232 of the Trade Expan-
sion Act of 1962 to adjust imports of arrangement products f-
rom the territory represented by CCNAA.
15.Notices
For all purposes hereunder AIT and CCNAA will be represented
by and all communications and notices will be addressed and
delivered to :
FOR CCNAA
FOR ATT
APPENDIX A
(CONCORDANCE)
CATEGORY TAIWANESE NO. TSUSA
NC LATHES 674.3476
－－ 674.3604
－－ 674.3505
－－ 674.3506
－－ 674.3508
－－ 674.3510
－－ 674.3519
NON--NC LATHES 674.3477
－－ 674.3512
－－ 674.3513
－－ 674.3514
－－ 674.3515
－－ 674.3516
－－ 674.3518
－－ 674.3522
MACHINING CENTERS 674.3404
－－ 674.3406
－－ 674.3409
－－ 674.3411
MILLING MACHINES 674.3464
－－ 674.3466
－－ 674.3467
－－ 674.3468
－－ 674.3469
APPENDIX B
CONCORDANCE OF SHIPMENTS, IMPORTS, AND EXPORTS
PRODUCT SHIPMENTS EXPORTS IMPORTS
(SIC NOS.) (SCHEDULE B) (TSUSA'S)
NC LATHES 35415 11 674.3276 674.3476
35415 12 674.3504 674.3504
35415 13 674.3506 674.3505
35415 21 674.3508 674.3506
35415 24 674.3519 674.3508
35415 26 674.3510
674.3519
NON-NC LATHES 35415 14 674.3277 674.3477
35415 22 674.3510 674.3512
35415 23 674.3511 674.3513
55415 25 674.3512 674.3514
35415 29 674.3515 674.3515
35415 37 674.3516 674.3516
35415 54 674.3518 674.3518
35415 56 674.3525 674.3522
35415 63
35415 66
35415 67
35415 72
35415 81
35415 88
MACHINING 3541A 01 674.3204 674.3404
CENTERS 3541A 03 674.3206 674.3406
3541A 05 674.3209 674.3409
3541A 07 674.3211 674.3411
3541A 09
3541A 11
3541A 13
3541A 15
3541A 17
3541A 19
MILLING 35416 22 674.3264 674.3464
MACHINES 35416 25 674.3266 674.3466
35416 27 674.3267 674.3469
35416 29 674.3268 674.3467
35416 31 674.3269 674.3469
35416 35
35416 53
35416 63
35416 97
THESE NUMBERS ARE SUBJECT TO REVISION WHEN THE TERRITORY REPRES-
ENTED BY AIT ADOPTS MODIFICATIONS TO THE APPLICABLE SIC, IMPORT
OR EXPORT NOMENCLATURES. TECHNICAL ADJUSTMENTS WILL BE MADE AS
NECESSARY.
APPENDIX C
LICENSE FOR EXPORT OF
MACHINE TOOL PRODUCTS TO THE U.S.A.
─────────────────┬──────────────
1.EWORTER │2.LICENSE NO.
│ DATE OF ISSUE
─────────────────┼──────────────
3.PRODUCER (FULL NAME AND │4.CATEGORY OF MACHINE TOOL
ADDRESS) │□ NUMERICALLY CONTROLLED L-
│ ATHERS
│□ NON-NUMERICALLY CONTROLL-
│ ED LATHERS
│□ MILLING MACHINES
─────────────────┤□ MACHINING CENTERS
5.CONSIGNEE (FULL NAME AND ├──────────────
ADDRESS) │6.PURCHASER (FULL NAME AND
│ ADDRESS)
│ (IF DIFFERENT F-
─────────────────┤ ROM CON8IGNEE)
7.DESTINATION OF GOODS (INDICATE │
COUNTRIES OF TRANSHIPMENT, IF A-│
PPLICABLE) │
│
│
────┬────┬────┬──┴───┬─────┬────
8.MARKS │9.NUMBER│10.DETA-│ 1l.QUANTTTY│ 12.UNIT │13.TOTAL
AND │ ,KIND │ ILED-│ (UNITS) │ PRICE │ VALUE
NUMB- │ OF │ DESC-│ │ │
ERS │ │ RIPT-│ │ │
ON S- │ │ ION │ │ │
HIPP- │ │ OF G-│ │ │
ING │ │ OODS │ │ │
PACK- │ │ │ │ │
AGES │ │ │ │ │
────┼────┼────┼──────┼─────┼────
│ │ │ │ │
│ │ │ │ │
│ │ │ │ │
│ │ │ │ │
────┴────┴┬───┴──────┴─────┴────
14.EXPORT DOCUMENT │15.ISSUED BY : BOARD OF FOREING TRADE, MI-
│ NISTRY OF ECONOMIC
TYPE: EXPORT PERMIT │ AFFAIRS
│
NUMBER: │
│
DATE OF EXPORT: │ SIGNATURE OFFICIAL STAMP
──────────┴─────────────────────
NOTES : A THIS LICENSE MUST BE TYPED IN ENGLISH. USE A SEPARATE
LICENSE FOR EACH CATEGORY OF MACHINE TOOL AND EACH CUST-
OMS ENTRY IN THE U.S.A.B. THIS LICENSE, DULY ENDORSED BY
THE BORAD OF FOREIGN TRADE SHOWN IN BOX NO. 15, MUST BE
PRODUCED TO THE COMPETENT AUTHORITIES IN THE U.S.A. AT
THE TIME OF IMPORTATION.
APPENDM D
SUBCATEGORIES OF ARRANGEMENT PRODUCTS
PRODUCT TSUS NUMBER
MACHINING CENTERS
SMALL, VERTICAL MACHINING CENTERS 674.3404
LARGE, VERTICAL MACHINING CENTERS 674.3406
HORIZONTAL MACHINING CENTERS 614.3409
OTHER MACHINING CENTERS 674.3411
HORIZONTAL NC LATHES
SMALL, HORIZONTAL NC LATHES 674.3506
MEDIUM, HORIZONTAL NC LATHES 674.3508
LARGE, HORIZONTAL NC LATHES 974.3510
VERTICAL NC LATHES 674.3479
674.3405
674.3419
NON-MC LATHES NON APPLICABLE
MILLING MACHINES
NC MILLING MACHINES
NON-NC MILLING MACHINES 674.3464
674.3466
674.3467
674.3469
APPENDM E
Subassemblies Definitions
A.Subassemblies of the Machining Center and Milling Machine
1.Base: Forms the foundation for the entire machine. Construc-
ted in two ways, cast or fabricated. The top surface provid-
es the accurately machined ways (hardened surface usually c-
ast as an integral part but may be epoxied on and then mach-
ined) to provide one direction of machine travel.
2.Cross slide : An intermediate sub-base whose lower surface
is accurately fitted to the ways of the base.
The top surface includes a second pair of ways to give trav-
el perpendicular to the base assembly.
3.Table: The component of the machine that holds the part or
parts to be machined (produced). The table is mated to the
cross slide ways and travels (moves) in two directions by c-
ombining the two directions of the ways on the base and cro-
ss slide.
4.Column: Typically mounts on the base or against the base and
includes a vertical set of ways that carries a head or spin-
dle assembly.
Note: The combination of the base, cross slide and column p-
rovide the 3 major axis of all machining centers and milling
machines.
5.Head: The head provides vertical movement on the column sli-
de which positions the spindle and/or quill assembly to the
surface to be machined. The head is the subassembly that in-
corporates the spindle drive components (motors, gears) that
controls too speeds and feeds.
6.Control: Today's sophisticated machining centers are typica-
lly com puter Numerically Controlled (CNC).
Each of the components addressed above are imported as suba-
ssemblies, machined and unmachined. Additionally, many of t-
he machining centers' optional features are being provided
as subassemblies such as : Various forms of table configura-
tions, tool changers, and pellet changers. This also applies
to the components included in the constructions of the comp-
uter numerical control.
B.Subassemblies of the Turning Center and Lathe
1.Base: Same basic definition as the machining center except
typically a casting. There are three basic types of constru-
ction : flat bed, slant bed and vertical bed.
2.Cross slide and carriage : Is the same as defined for machi-
ning center cross slide, however, instead of carrying a tab-
le it carries the turret or tool mounting components.
3.Turret : The turret or turrets are an indexing drive that h-
olds the various tools to be used during the machining proc-
ess.
4.Head stock : The head is fixed as an integral component of
the base. The head is the subassembly that incorporates the
spindle drive components (motors, gears) that control spind-
le speed, carriage slide feed and tool index functions.
5.Tailshaft : There are two basic forms of turning, chucking
and shaft turning. Chucking is for short parts that extend
out of the work holding device (chuck) a very short distance
.
Shaft, turning is where the part to be machined extends a d-
istance out of the chuck and requires supporting the level
of the shaft during machining with a tailshaft.
6.Control: The turning center computer numerical cnotrol is b-
asically the same as the machinig cneter.
Note: The combination of base, cross slide and carriage pro-
vide two axes of machine control. This is typical of all la-
thes and turning centers. Two additional axes are provided
by adding a second cross slide and carriage.
Dear CCNAA Representative :
This letter sets forth my understanding of several elements
in the arrangement between the Coordination Council for Nor-
th American Affairs ("CCNAA") and the Amnerican Institute in
Taiwan ("AIT") concerning trade in certain machine tools, w-
hich was signed on December 12, 1986. I request that your c-
onfirm that my understanding of these elements coincides wi-
th that of CCNAA.
The parties to this Arrangement understand that subassembli-
es, as defined in paragraph 6(E) of the Arrangement, would
not be covered if they are spare parts or replacement compo-
nents for machine tools already in the territory represented
by AIT. With respect to paragraph 9 of the Arrangement ("Cr-
eation of Sub-categories of Arrangement Products") , the "r-
epresentative product mix" is defined by the following guid-
elines : --Machining centers: 30-50 percent of exports from
the territory represented by CCNAA to the territory represe-
nted by AIT must remain in the "small vertical" sub-category
: the remainder should be distributed among the other sub-c-
ategories specified in Appendix E to the arrangement (i.e.,
they should not be concentrated in any single sub-category).
--Milling Machines: exports of numberically-controlled (NC)
milling machines should not exceed 3 percent of apparent
consumption in the territory represented by AIT.
--Numerically-controlled (NC) Lathes : The territory repres-
ented by CCNAA should maintain at least 80 percent of its
NC lathe exports to the territory represented by AIT in t-
]he "small horizontal" sub-category. thes : The territory
represented by CCNAA should maintain at least 80 percent
of its NC lathe exports to the territory represented by A-
IT in the "small horizontal" sub-category.
--Non-Nc Lathes: There are no sub-categories for this categ-
ory.
The categories and sub-categories of machine tools specif-
ied in this letter correspond to those set forth in Appen-
dix A and Appendix E, respectively,of this arrangement.
Either side may request consultations to discuss mutually
agreeable modifications to this guidance to take account
of major changes in market conditions.
For the purposes of paragraph 10(A) of the Arrangement ("
Special Issue Licenses") , AIT will ensure that the autho-
rities in the territory represented by AIT will give spec-
ial consideration to requests from CCNAA for special issue
licenses associated with direct investment in the territo-
ry represented by AIT consistent with the May 20, 1986 de-
cision of the authority in the territory represented by A-
IT.
For the purposes of Paragraph 12 of the Arrangement ("Dur-
ation") the term "any comparable arrangement" refers to t-
he Arrangement between the Government of Japan and the Go-
vernment of the United States of America Concerning Trade
in Certain Machine Tools.
For the purposes of paragraph 14 of the Arrangement ("Det-
ermination on Report to the Authorities in the Territory
Represented by AIT") , AIT shall make the determination u-
pon post consultation with CCNAA regarding effective impl-
ementation and enforcement of the Arrangement by CCNAA.
Finally, it is my understanding that the contents of this
letter and your confirmation of them constitute an integr-
al part of the Arrangement between CCNAA and AIT Concerni-
ng Trade in Certain Machine Tools.
Sincerely,
AIT Representative
──────────────
Dear AIT Representative :
I have the honor to acknowledge receipt of your letter of Decem-
ber 12, 1986, which reads as follows :
"Dear CCNAA Representative :
This letter sets forth my understanding of several elements in
the arrangement between the Coordination Council for North Amer-
ican Affairs ("CCNAA") and the American Institute in Taiwan ("A-
IT") concerning trade in certain machine tools, which was signed
on December 12, 1986. I request that you confirm that my unders-
tanding of these elements coincides with that of CCNAA.
The parties to this Arrangement understand that subassemblies,
as defined in paragraph 6(E) of the Arrangement, would not be c-
overed if they are spare parts or replacement components for ma-
chine tools already in the territory represented by AIT.
With respect to paragraph 9 of the Arrangement ("Creation of Su-
b-categories of Arrangement Products") , the "representatiue pr-
oduct mix" is defined by the following guidelines :
--Machining centers: 30-50 percent of exports from the territory
represented by CCNAA to the territory represented by AIT must
remain in the "small vertical" sub-category; the remainder sh-
ould be distributed among the other sub-categories specified
in Appendix E to the arrangement (i.e., they should not be co-
ncentrated in any single sub-category).
--Milling Machines: exports of numberically-controlled (NC) mil-
ling machines should not exceed 3 percent of apparent consump-
tion in the territory represented by AIT.
--Numerically-controlled (NC) Lathes: The territory represented
by CCNAA should maintain at least 80 percent of its NC lathe
exports to the territory represented by AIT in the "small ho-
rizontal" sub-category.
--Non-Nc Lathes: There are no sub-categories for this category.
The categories and sub-categories of machine tools specified
in this letter correspond to those set forth in Appendix A and
Appendix E, respectively,of this arrangement.
Either side may request consultations to discuss mutually agree-
able modifications to this guidance to take account of major ch-
anges in market conditions.
For the purposes of paragraph 10(A) of the Arrangement ("Special
Issue Licenses") , AIT will ensure that the authorities in the
territory represented by Ait will give special consideration to
requests from CCNAA for special issue licenses associated with
direct investment in the territory represented by AIT consistent
with the May 20, 1986 decision of the authority in the territory
represented by AIT.
For the purposes of paragraph 12 of the Arrangement ("Duration")
the term "any comparable arrangement" refers to the Arrangement
between the Government of Japan and the Government of the United
States of America Concerning Trade in Certain Machine Tools.
For the purposes of paragraph 14 of the Arrangement ("Determina-
tion on Report to the Authorities in the Territory Represented
by AIT") , AIT shall make the determination upon post consultat-
ion with CCNAA regarding effective implementation and enforceme-
nt of the Arrangement by CCNAA.
Finally, it is my understanding that the contents of this letter
and your confirmation of them constitute an integral part of the
Arrangement between CCNAA And AIT Concerning Trade in Certain M-
achine Tools. Sincerely, AIT Representative " I am pleased to c-
onfirm your understandings as set forht above. Sincerely, CCNAA
Representative