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The following text is intended for general reference only. It is currently under review for accuracy and completeness, as well as formatting.
RECORD OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA ON MARKET ACCESS FOR BEEF
The Government of the United States of America and the Government of the Republic of Korea, recognizing the recommendations of the General Agreement on Tariffs and Trade (GATT) dispute settlement panel report on Korean import restrictions on beef (L/6503) as well as the report of the GATT Balance of Payment Committee (BOP/R/183/Add.1) concerning Korea, and the April 1990 bilateral Record of Understanding Between the Government of the United States of America and the Government of the Republic of Korea on Beef, have agreed as follows:
I. GENERAL PROVISIONS
A. The Governments of United States of America (USG) and Republic of Korea (ROKG) confirm that this Record of Understanding and its attachments (hereinafter referred to as "Understanding") will be implemented on a Most-Favored-Nation (MFN) basis.
B. Conditions and levels of importation and sale of imported beef and all other provisions provided for in this Understanding shall not be impaired or modified by either government without prior consultation and mutual agreement.
C. This Understanding is the second Understanding between the USG and ROKG concerning market access for beef. This Understanding reflects the desire of the Parties to implement the GATT dispute settlement panel recommendations and Balance of Payments Committee determinations.
Consultations between the Parties regarding such measures will be held no later than June 1, 1995.
D. Unless otherwise specified in this Understanding all provisions of this Understanding shall become effective upon the date of the exchange of letters confirming this Understanding between the USG and ROKG.
II. DEFINITIONS
For the purposes of this Understanding:
"Base amount" means the minimum annual amount, on a customs cleared basis, expressed in metric tons, of beef to be imported into the Republic of Korea.
"Beef" means all meat of bovine animals, fresh chilled or frozen, as classified under HS 0201 and HS 0202. All tonnage specified in this Understanding is given in retail weight equivalent.
"Customer" means any individual private enterprise, firm, business or grouping thereof that under the terms of this Understanding has the right import beef through NLCF and KCSC.
"End-user" means any individual private enterprise, firm, business, or grouping thereof, and/or their buying agents that has the right to import beef through any super-group except NLCF or KCSC.
"Large-scale outlet" means a store with a total sales space of 3,000 square meters or more and with more than 30 percent of the total sales space operated by the owner.
"Mark-up" means the charge collected by the ROKG expressed as a percentage of the duty-paid c.i.f. price.
"Parties" means the Government of the United States of America and the Government of the Republic of Korea.
"SBS share" means the minimum portion of the base amount that must be allocated through the SBS system.
"SBS sub-share" means the portion of the SBS share that must be allocated to a super-group.
"SBS system" means the system through which suppliers of beef imported into the Republic of Korea conduct business directly with super-groups, end users, or customers.
"Super-group" means an organization or association of end-users that has the right to import beef under the SBS system and, as appropriate, allocate SBS sub-shares among its affiliated end-users, and shall include the following entities, subject to the conditions and terms specified in this Understanding: the National Livestock Cooperatives Federation and its subsidiary companies (NLCF); Korea Cold Storage Company, Ltd. (KCSC);
Korea Tourist Hotel Supply Center (KTHSC); Korea Meat Industries Association (KMIA); Korea Super Chain Association (KOSCA); and a non-tourist restaurant organization (NTRO) to be formed for the purpose of importing and allocating imported beef.
"Supermarket" means a retail store whose principal business is the sale of food and beverages.
"Tourist hotels" means tourist hotels as defined by the Korean Foreign Trade Act and related and referenced regulations.
"Tourist restaurants" means tourist restaurants as defined by the Korean Foreign Trade Act and related and referenced regulations.
III. MARKET ACCESS MEASURES -- BASE AMOUNTS
A. The base amounts are the minimum to be imported on a customs cleared basis for the three-year period beginning January 1, 1993 and ending December 31, 1995 and shall be as follows:
1993 99,000 metric tons
1994 106,000 metric tons
1995 113,000 metric tons
B. These base amounts shall be divided between SBS shares in the SBS system, as specified in this Understanding, and the general tender system. The general tenders shall be published in domestic Korean newspapers, and the results of those tenders, when the results become known, shall be made available to any interested party upon request.
IV. MARKET ACCESS MEASURES -- SIMULTANEOUS BUY/SELL (SBS) SYSTEM
A. GENERAL
1. NLCF, KCSC, and KTHSC, which participated under the 1990 Understanding, shall participate in the SBS system as super-groups under this Understanding. New super-groups, end-users, and customers will be added to the SBS system over the term of this understanding as specified in this Understanding.
2. The SBS system, as specified in this Understanding, will be implemented not later than August 1, 1993. However, 1993 SBS shares and sub-shares will be allocated to super-groups not later than the date of the exchange of letters confirming this Understanding between the USG and ROKG.
3. The ROKG shall take no action to increase the price of beef entering under the SBS system above the price of similar beef imported under general tender.
B. FRAMEWORK FOR SBS SYSTEM
1. ANNUAL MINIMUM SBS SHARE AND SUB-SHARE ALLOCATIONS
(a) The SBS annual shares are the minimum to be allocated under the SBS system for the three-year period beginning January 1, 1993 and ending December 31, 1995 and shall be as follows:
1993 9,900 metric tons
1994 21,200 metric tons
1995 33,900 metric tons
(b) Annual sub-shares to be allocated to SBS super-groups shall be as follows (expressed in metric tons, retail weight equivalent):
1993 1994 1995
NLCF 2,970 3,330 5,254
KCSC 2,970 3,330 5,254
KTHSC 3,960 4,664 5,424
NTRO 2,000 2,712
KMIA 4,676 7,118
KOSCA 3,200 8,138
2. SCHEDULE FOR ADDITION OF NEW ENTRANTS
(a) In 1993 the SBS sub-shares will be allocated by the ROKG among the three super-groups (KTHSC, NLCF, KCSC), according to the schedule set out in section IV.B.1.b of this Understanding. These super-groups shall import beef on behalf of affiliated end-users (except in the case of NLCF and KCSC) without the participation, direction, or other involvement of the LPMO or ROKG.
(b) Beginning January 1, 1994 NTRO and KMIA will have the right to participate as super-groups, and will each be allocated an SBS sub-share by the ROKG, according to the schedule set out in section IV.B.1.b of this Understanding. KMIA and NTRO will allocate SBS sub-shares to their affiliated end-users and conduct transactions without the participation, direction, or other involvement of the LPMO or ROKG.
(c) Beginning October 1, 1994, KOSCA will have the right to participate as a super-group and will be allocated an SBS sub-share by the ROKG, according to the schedule set out in section IV.B.1.b of this Understanding. The KOSCA super-group will allocate SBS sub-shares to its affiliated end-users and conduct transactions without the participation, direction, or other involvement of the LPMO or ROKG.
Criteria for determining eligibility for SBS participation of current and future KOSCA members are set out in section IV.C.1 of this Understanding.
(d) Beginning January 1, 1995, any member of KOSCA not eligible to import through the KOSCA super-group, as outlined in section IV.C.1 of this Understanding, shall have the right to participate in the SBS system as customers under NLCF and KCSC. For the sake of commercial convenience, such individual KOSCA members shall have the right to negotiate and place collective orders through NLCF and KCSC.
(e) Also beginning January 1, 1995, any butcher shops that are or become registered dealers of imported beet shall have the right to participate in the SBS system as customers under NLCF and KCSC. For the sake of commercial convenience, such individual butcher shops shall have the right to negotiate and place collective orders through NLCF and KCSC.
(f) Beginning August 1, 1993, and in 1994 and 1995, KTHSC, as a super-group, will administer the portion of the SBS system under which individual tourist hotels and restaurants, as end-users, have the option to purchase beef through KTHSC or directly from foreign suppliers.
C. ADDITIONAL PROVISIONS FOR SBS SYSTEM
1. KOSCA MEMBER PARTICIPATION IN THE SBS SYSTEM
(a) Direct outlets of KOSCA member companies shall have the right to participate in the SBS system as end-users affiliated with the KOSCA super-group. Franchise outlets of KOSCA member companies that are or become registered dealers of imported beef shall have the right to participate in the SBS system as customers of NLCF and KCSC.
(b) Any outlet of a KOSCA member company that is a large-scale outlet shall be excluded from SBS participation, except as provided for in sub-paragraph (c).
(c) Notwithstanding sub-paragraph (b) , and notwithstanding whether a KOSCA member company outlet is affiliated with a large-scale outlet that is not a supermarket, such KOSCA member company outlets that are operated as super-markets shall have the right to participate in the SBS system in the manner specified in section IV.C.1.a.
2. NOTIFICATION
The SBS sub-shares for a calendar year shall be divided by the super-groups into quarterly allocations in such a way as to reflect seasonal consumption patterns. These quarterly allocations shall be announced prior to the beginning of each calender year. The allocations shall be expressed in metric tons, retail weight equivalent. SBS sub-share notifications shall be made available to any interested party on request.
3. PURCHASING AUTHORITY
(a) End-uses shall have the right to sign contracts and negotiate all terms of sale, including price, quantities, specifications, terms of delivery, etc. Customers shall have the right to negotiate all terms of sale, including price, quantities, specifications, terms of delivery, etc.
(b) End-users or their designated agents, and customers, shall have the right to apply to the appropriate super-group for import authorization amounts under the SBS sub-share. Such authorization shall be granted by the super-groups upon request. End-users and customers shall be granted such access to sub-shares through super-groups, as established in this Understanding, until the sub-share is exhausted. Once an end-user or customer receives authorization to import, there shall be no further involvement by the super-group in the commercial transaction, with the exception that NLCF and KCSC will purchase and import beef on behalf of their customers.
(c) Direct or indirect charges imposed by super-groups for importing beef on behalf of their customers shall not exceed reasonable administrative costs and expenses associated with such importation. Direct or indirect charges imposed by super groups for administering the allocation of SBS sub-shares to end-users shall not exceed reasonable administrative costs and expenses associated with such allocation. Super-groups shall make details of all such administrative costs and expenses available to any interested party upon request and shall not extract profits beyond the extent of such costs and expenses.
4. ALLOCATION OF SBS SUB-SHARES BY SUPER-GROUPS TO END-USERS
(a) The allocation of sub-shares to end-users shall be the sole responsibility of super-groups. The procedures and criteria for allocation of these sub-shares shall be fair, equitable, transparent, and implemented in good faith. These criteria must be announced and published. To facilitate orderly marketing and development of normal commercial relationships between end-users and foreign suppliers, super-groups shall implement an allocation system that encourages stable, long-term commercial relationships between end-users and foreign suppliers while making provision for the entry of new end-users. Anticipating the addition of new end-users, the super-groups must have agreed procedures and criteria for distributing SBS sub-shares among their affiliated end-users.
(b) Unused end-user sub-shares must be reallocated, prior to October 1 of the calendar year, by the super-group.
5. NLCF AND KCSC SUPER-GROUPS AND IMPORTATION OF BEEF ON BEHALF OF THEIR CUSTOMERS
Notwithstanding sections IV.C.3 and IV.C.4, not later than October 1, 1994, NLCF and KCSC will set and announce the standard by which they will purchase beef on behalf of their customers. This standard will be equitable, established in a transparent manner, and based on the following principles: NLCF and KCSC, taking into account their SBS shares and the number of their customers, will determine an appropriate ceiling for each customer and import on behalf of the customer amounts requested under the ceiling, and in doing so shall not discriminate unfairly against any customers. As long as a customer's requests meets the standard thus established, NLCF and KCSC will carry out the importation on behalf of their customers without imposing further conditions.
6. IMPORTATION, UTILIZATION, AND DISTRIBUTION OF SBS PRODUCT
(a) Except as otherwise specified in this Understanding, there shall be no restrictions placed by the ROKG or any super-group on beef (regardless of country of origin, product type, or specification, whether grass-fed or grain-fed or whether fresh chilled or frozen) imported under the SBS system, including processing requirements, labeling, pricing, marking or packaging requirements or other barriers to legitimate importation, distribution, and sale, that create unnecessary obstacles to trade or otherwise undermine the objectives of this Understanding. Beef imported under the SBS system must be distributed and sold through legal channels in conformance with Korean regulations.
(b) Any SBS sub-share that is not fully used by a super-group in any of its quarterly allocations shall be transferred to that super-group's allocation for the subsequent quarter, except that any SBS sub-share that is not fully utilized by a super-group by the end of the third calendar year quarter shall be reallocated to all other super-groups on a pro rata basis, in proportion to their respective entitlements under the SBS system, for their use in the final calendar year quarter. Such reallocation shall be made no later than October 15. With regard to any such pro rata share that is reallocated to KTHSC, any part of that reallocation used by KTHSC end-users shall be subject to the percentage mark-up specified in section IV.C.7.a of this Understanding.
(c) Neither the ROKG nor LPMO shall take any action to discourage super-groups and their end-users or customers from importing or using their SBS shares or sub-shares, as appropriate, as allocated under the terms of this Understanding.
7. SBS MARK-UP
(a) A single, uniform percentage mark-up shall be applied to all types of beef purchased under the SBS system and shall be equal to the difference between the duty-paid price, c.i.f. Korea, and the price for all boneless cuts of imported grain-fed high quality beef, based on the purchases of the Livestock Products Marketing Organization (LPMO) sold in the general tender system. Such prices shall be determined by calculating the average prices over the immediately preceding three-month period. The mark-up shall be recalculated monthly. This mark-up shall be publicly announced and published prior to becoming effective. However, in the event that the mark-up in any month is in excess of the current percentage mark-up in the general tender market, the mark-up in the SBS system shall be recalculated weekly on a uniform basis using the latest available c.i.f. and general tender price data for the immediately preceding month.
(b) The mark-up applied to beef subject to a contract shall be the mark-up in effect on the date of the contract.
(c) Notwithstanding subparagraph (a), in further implementation of the findings of the GATT dispute settlement panel on beef, during 1993 the mark-up on beef shall not exceed 100 percent of the weighted average percentage mark-up applied to imported boneless grain-fed high quality beef during calendar year 1992, as derived from data in Attachment I.
During 1994, the mark-up on beef shall not exceed 95 percent of the weighted average percentage mark-up applied during calendar year 1992.
During 1995, the mark-up on beef shall not exceed 90 percent of the weighted average percentage marl-up applied during calendar year 1992.
There shall be no minimum-markup.
(d) Notwithstanding subparagraph (a), the mark-up for beef imported by KTHSC for tourist hotels and restaurants shall be no more than 2 percent of the duty-paid c.i.f. price, except for cuts of beef specified in Attachment II.
(e) The ROKG, LPMO, and super-groups shall neither directly nor indirectly exert any influence on pricing decisions of end-users aside from the mark-ups agreed upon in this Understanding.
8. SAMPLES
The importation of samples will be allowed under the SBS system, and the sample quantities shall be counted as part of the SBS share. Samples shall not be subject to the mark-up. All super-groups shall be responsible for establishing their sample import systems.
9. BID AND PERFORMANCE BONDS AND LETTERS OF CREDIT
The utilization of bid and performance bonds and/or letters of credit shall be at the option of SBS participants.
10. SHORT WEIGHT CLAIMS
Short weight claims shall be resolved between buyers and sellers.
11. MINIMUM PURCHASE UNIT
There shall be no governmental restrictions on the minimum purchase unit of beef imports.
12. PRODUCT COVERAGE
Product coverage for the SBS system shall be the same as for the overall Understanding, as defined in section II for the term "beef" and shall include all product classified under HS 0201 and HS 0202.
13. PURCHASING FREQUENCY
There shall be no governmental restrictions on the timing of purchases by customers, end-users, or their designated agents.
14. RECORD-KEEPING
Approved super-groups shall administer record-keeping of purchases to ensure compliance with the annual and quarterly SBS shares.
15. DELIVERY PERIODS
Delivery shall be determined between the end-user or customer and seller.
Delivery of products purchased under quarterly SBS shares may be shipped in subsequent quarters as long as deliveries are completed within 60 days following the end of the calendar year in which the product was purchased.
V. RELATIONSHIP TO THE GATT
A. With regard to beef, the ROKG reaffirms its undertaking to eliminate its remaining import restrictions or otherwise bring them into conformity with GATT provisions as provided in the conclusion of this report on the GATT Balance of Payments Committee on consultations with the Republic of Korea adopted by the GATT Council on November 7, 1989.
B. Notwithstanding the above, both Parties reserve their rights under the GATT.
VI. CONSULTATION PROVISION
A. The Parties agree to consult promptly at the request of either Party on any matter relating to this Understanding.
B. The Parties shall consult quarterly to ensure full implementation of this Understanding. The first such consultations shall take place not 1ater than October 1, 1993. The agenda for these consultations may include, inter alia, problems caused by employing the mark-up specified in section IV.C.7.a of this Understanding and problems in access for end-users and super-groups under the SBS system in accordance with requirements of this Understanding.
ATTACHMENT I
LPMO DATA FOR CALCULATION OF 1992 AVERAGE MARK-UP
Wholesale Price, Duty-paid price. c.i.f. for Imported Beef
92.1 92.2 92.3 92.4 92.5 92.7 92.8 92.9 92.10 92.11 92.12 AVG.
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Wholesale
price(A) 6,038 6.407 6,510 7.581 7,419 6,811 7.021 6,802 6,624 9,730 9,757
7,235 CIF+Tariff
(B) 3, 804 3,756 3,886 3,916 3, 897 3,764 3,514 3,537 3,521 3,695 3,829
3,829 3,726
(A)-(B) 2,234 2,651 2,624 3,665 3,522 3.047 3,507 3,645 3,281 3,929 5,901
5,928 3,509
Volume 3,885 1,335 1,945 1,681 2,414 2,211 2,281 2,362 3,029 1,895 1,397
1,916 2,279
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Wholesale
price(A) 5,936 5,759 5,285 6,039 5,979 5,606 6,008 5,793 5,451 6,094 7,526
7,312 6,132
CIF+Tariff
(B) 2,682 2,677 2,750 2,749 2,732 2,886 2,948 2,926 2,912 2,912 2,902
2,900 2,812
(A)-(B) 3,254 3,082 2,535 3,290 3,247 2,720 3,060 2,867 2,539 3,182 4,624
4,412 3,320
Volume 77 129 238 185 179 19 43 44 93 196 272 27 125
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Wholesale
price(A) 6,349 6,087 6,520 6,893 6,500 5,731 6,002 6,100 5,461 7,627 8,332
8,858 6,600
CIF+Tariff
(B) 3,507 3,587 3,643 3,776 3,740 3,766 3,654 3,628 3,605 3,609 3,675
3,674 3,646
(A)-(B) 2,842 2,500 2,877 3,316 2,760 1,965 2,348 2,472 2,056 4,018 4,657
5,184 2,954 Volume 832 287 303 518 702 727 666 1,135 893 306 473 688 628
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Wholesale
price(A) 6,133 5,942 5,664 6,395 6,349 5,650 5,559 6,136 5,725 6,833 7,263
7,279 6,211
CIF+Tariff
(B) 3,385 3,419 3,522 3,576 3,649 3,696 3,797 3,754 3,799 3,682 3,729
3,731 3,843
(A)-(B) 2,748 2,522 2,142 2,819 2,700 1,954 1,762 2,382 1,926 3,151 3,534
3,548 2,569
Volume 332 137 227 108 158 186 127 223 353 220 309 56 203
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Wholesale price
(A) 10,07210,0959,88110,34010,12010,29110,90011,74111,67112,629
12,70911,42211,041
CIF+Tariff 4,803 4,855 4,788 4,724 4,689 4,667 4,708 4,707 4,669 4,678
4,796 4,797 4,739
(A)-(B) 5,269 5,240 5,093 5,616 5,431 5,624 6,192 7,034 7,002 8,951 7,913
6,825 6,302
Volume 1,071 484 687 535 738 748 654 1,171 786 453 751 692 731
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Wholesale price
(A) 6,781 7,059 7,050 7,830 7,639 7,217 7,453 7,825 7,2560 8,358 9,797
9,854 7,749
CIF+Tariff 3,900 3,881 3,943 3,933 3,951 3,930 3,749 3,789 3,719 3,781
3,944 3,966 3,867
(A)-(B) 2,881 3,178 3,107 3,897 3,688 3,287 3,704 4,036 3,531 4,575 5,853
5,568 3,882
Volume 6,197 2,372 3,400 3,027 4,191 2,891 2,771 5,935 5,156 3,070 3,202
3,379 3,966
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Note: Prices are for won/kilogram US$=798.3(as of May 7, 1993).
Volume is in Metric Tons
Average is weighted average and may slightly differ, due to rounding.
Markup = (A)-(B)
Markup expressed as a percentage of duty paid import price.
ATTACHMENT II.
CUTS OF BEEF IMPORTED BY KTHSC
The following five cuts of beef, as defined in the National Association of Meat Purveyors Meat Buyers Guide, imported by KTHSC for tourist hotels and restaurants shall be subject to the mark-up level specified in section IV.C.7.a of this Understanding:
CUT MEAT BUYERS GUIDE
Shoulder Clod 114, 114A, 114B
Chuck Roll 116A
Short Rib 123, 123A, 123B, 123C
Knuckle 167, 167A, 167B
Top Round 168, 169
All other beef imported by KTHSC for tourist hotels and restaurants shall be subject to the mark-up level specified in section IV.C.7.d of this Understanding.
[1990] RECORD OF UNDERSTANDING
BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF THE REPUBLIC OF KOREA ON BEEF
The Government of the United States of America and the Government of the Republic of Korea, recognizing the recommendations of the GATT dispute settlement panel report on Korean import restrictions on beef (L/6503) as well as the report of the Balance of Payments Committee (BOP/R/183/Add.1) concerning Korea, have agreed as follows:
I. GENERAL TERMS
A. With regard to beef, the Government of the Republic of Korea (hereinafter referred to as the Korean government) reaffirms its undertaking to eliminate its remaining import restrictions or otherwise bring them into conformity with GATT provisions as included in the conclusion of the report of the GATT/BOP committee on consultations with the Republic of Korea adopted by the GATT council an November 7, 1989.
B. Both sides agree that this Record of Understanding will be implemented on a Most-Favored-Nation (MFN) basis.
C. Conditions and levels of importation and sale of imported beef provided for in this Record of Understanding and its attachments shall not be impaired or modified by either government without prior consultation.
D. A joint study team will be established in order to:
(1) examine the structural weakness of the Korean livestock industry and review the effects of the industry structure on the appropriate timing of market liberalization;
(2) review the functions of the LPMO and make recommendations for improvements in marketing and pricing practices in the future.
The study will be completed by May 1, 1991. Other details concerning the joint study team will be decided upon by May 1, 1990.
The U. S. Meat Export Federation (MEF), the Livestock Products Marketing Organization (LPMO) and the National Livestock Cooperatives Federation (NLCF) will select the members of the study team. Both governments will participate as observers and recommend that third country government and industry representatives be included on the study team. The results of the study team will be taken into consideration by both governments during future consultations.
E. Terms used in this Record of Understanding are defined in Attachment 1.
II. MARKET ACCESS MEASURES
General Consumption
A. The base quota levels of general consumption importation on a customs clearance basis for the three year period beginning January 1, 1990 and ending December 31, 1992 shall be as follows:
1990 1991 1992
58,000 MT 62,000 MT 66,000 MT
B. Bilateral consultations concerning an import regime designed to increase imports following the year 1992 shall be initiated no later than July 1, 1992.
Simultaneous Buy/Sell (SBS)
C. A simultaneous buy/sell system will be implemented for seven percent of the base quota level for the import of beef. This mechanism will be used initially by tourist hotels, tourist restaurants, the NLCF and the Korean Cold Storage company, Ltd. Principles of the operation of this buyer access system are contained in Attachment 2. Details concerning the operation of this system will be determined by both governments no later than October 1, 1990 based upon recommendations from the industry-to-industry dialogue established in section III below.
Implementation of the SBS system will be effective no later than October 1, 1990. Both governments will consult concerning the future expansion of the SBS system.
III. INDUSTRY-TO-INDUSTRY DIALOGUE
A. By May 1, 1990, U.S. industry and LPMO representatives will meet to work out short-term technical problems related to the operations of the LPMO. Topics listed in Attachment 3 have been discussed between U.S. and Korean industries.
B. The results of the industry-to-industry dialogue will be submitted to the Korean and U.S. governments for review and consultation, as appropriate.
IV. CONSULTATIONS
Both sides agree to consult promptly at the request of either party on any matter relating to this Record of Understanding and its attachments.
V. GATT RIGHTS
Notwithstanding the above, both governments reserve their rights under the GATT.
VI. CONCLUSION
Based on the commitments contained in this Record of Understanding and its attachments, which are an integral part of this Understanding, and in anticipation that successful implementation of these commitments will proceed as scheduled, the United States Government shall suspend further action in the investigation into Korea's policies and practices relating to market access for beef conducted under section 301 of the U.S. Trade Act of 1974, as amended. Upon signature of a final version of this Record of Understanding by both sides, the section 301 investigation will be terminated.
Done at on this day of 1990.
For the Government of For the Government of the Republic of the United States of America Korea
ATTACHMENT 1
DEFINITIONS
For purposes of this Record of Understanding and its attachments:
1. "Beef" means meat of bovine animals, fresh, chilled or frozen. All tonnage specified in the agreement is given in retail weight equivalent.
2. "Tourist hotels" and "tourist restaurants" mean tourist hotels and tourist restaurants as defined by the Korean Ministry of Transportation Tourism Bureau (or equivalent organization).
ATTACHMENT 2
SIMULTANEOUS BUY/SELL SYSTEM
1. Buyers and sellers will sole responsibility for product specification, delivery and other terms of sale.
2. Buyers and sellers will simultaneously submit buy and sell prices to the LPMO to participate in the LPMO tender.
ATTACHMENT 3
INDUSTRY-TO-INDUSTRY DIALOGUE
The industry-to-industry dialogue will include but will not be limited to the following:
1. the establishment of a packer/supplier registered brand list;
2. elimination of bid bonds and performance bonds;
3. procedures under which packers and suppliers may bid for any portion of any position and elimination of quantity restrictions on each bid position;
4. ability of buyers to specify cuts, specifications and suppliers of beef;
5. elimination of packaging requirements; and restrictions on packaging;
6. regular meetings between the Korean and U.S. meat industries to promote increased understanding and discussion of mutual trade concerns;
7. details concerning operation and expansion of a simultaneous buy/sell system.
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