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1.Singend and exchanged on April 29, 1987; Entered into force retroactiverly on January 1, 1987.
 
Sincerely,
[Signed]
Scott S. Hallford
Acting Director
Mr. Scott S. Hallford
Acting Director
American Institute in Taiwan
Taipei Office
7, Lane 134, Hsin Yi Roac, Sec. 3
Taipei
Dear Mr. Hallford :
I have the honor to acknowledge receipt of your letter ( AIT B--
301) of today's date, which reads as follows :
" Dear Mr.Hoo :
I am writing with regard to the AIT-CCNAA agreement on beer, wi-
ne and cigarettes, signed in Washington, D.C. on December 12, 19
86 and effective January 1, 1987.
On the requirements for Monopoly Certificates to be affixed to
the Merchandise, I wish to propose the procedures set out below,
which shall take effect retroactively as of January 1, 1987 :
(a) In the case of beer and wine, the Monopoly Certificates sha-
ll be affixed to each can and bottle, or printed on labels
to be affixed to each can and bottle, or embossed on each c-
an of beer, either in Taiwan (including in bonded warehouses
) before the Merchandise goes through customs clearance or
in the United States. The Monopoly Certificate so affixed n-
eed not show the Commercial Importer's Registration Number.
(b) In the case of cigarettes, the "banderols" shall be replaced
with the Monopoly Certificate of the same size as is the "
banderols " , and the past practice applicable to banderols
shall be followed in affixing the Monopoly Certificate to e-
ach pack of cigarette.
(c) With regard to the classification of non-- grape based wines
, CCNAA will classify these products in the same category as
wine coolers when assessing the monopoly tax.
I would appreciate confirmation of CCNAA's agreement to the
foregoing. Sincerely,
[Signed]
Scott S. Hallford"
In reply, I have the pleasure to confirm that CCNAA agrees to t-
he above proposals in you letter.
Sincerely yours,
[Signed]
Raymond S.H. Hoo
Chairman