CITA Solicits Comments on Domestic Industry Request for a Safeguard Quota on China Cat 301 (Combed Cotton Yarn)
The Committee for the Implementation of Textile Agreements (CITA) has issued a notice announcing that on October 27, 2004, it received a request from certain groups asking that a safeguard quota be imposed on imports from China of combed cotton yarn (cat 301) on the ground that an anticipated increase in such imports after January 1, 2005 threatens to disrupt the U.S. market.
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CITA states that it has determined that this request has provided the information necessary for CITA to consider it.
As a result, CITA is soliciting public comments on this request, in particular with regard to whether there is a threat of disruption to the U.S. market for combed cotton yarn and, if so, the role of Chinese-origin combed cotton yarn in that disruption.
(See CITA's notice for details on the factors that such comments could address.)
China Cat 301 Is Currently Subject to Quota/Visa
China cat 301 is currently subject to a merged category quota (300/301), as well as visa and ELVIS requirements.
CITA Has 60 Calendar Days from December 23, 2004 to Determine Whether to Request Consultations with China
According to CITA, written comments may be submitted by any interested person, and must be received no later than December 23, 2004.
CITA states that it will make a determination within 60 calendar days of December 23, 2004 as to whether the U.S. will request consultations with China with respect to combed cotton yarn.
If CITA is unable to make a determination by that date, it will publish a notice in the Federal Register listing the date by which it will make its determination. In addition, CITA states that if it decides to not request consultations with China, it will publish that negative determination in the Federal Register.
If CITA Finds Threat of Market Disruption, It Will Request Consultations and China Will Limit its Shipments
If CITA makes an affirmative determination that imports of Chinese origin combed cotton yarn threaten to disrupt the U.S. market, the U.S. will request consultations with China with a view to easing or avoiding such market disruption.
Beginning on the date that it receives such a request, China must restrict its shipments to the U.S. of the subject product to a level no greater than 7.5% (6% for wool product categories) above the amount entered during the first 12 months of the most recent 14 months preceding the request. In addition, the U.S. may implement this level as a quota limit.
The requestors are the National Council of Textile Organizations (NCTO), the National Textile Association (NTA), and the American Manufacturing Trade Action Coalition (AMTAC).
(See ITT's Online Archives or 11/22/04 news, 04112220, for BP summary of the International Trade Administration's (ITA's) announcement that CITA had agreed to consider this request (petition) for a safeguard quota on China cat 301.
See ITT's Online Archives or 08/04/03 and 05/22/03 news, 03080415 and 03052210, respectively, for BP summaries on CITA's safeguard procedures for China.)
CITA contact - Jay Dowling (202) 482-4058
CITA notice (FR Pub 11/23/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/E4-3306.pdf
BP Note
The U.S. has already imposed safeguard quotas on China cats 222, 349/649, and 350/650 for December 24, 2003 through December 23, 2004, and a safeguard quota on China cats 332/432/632pt. for October 29, 2004 through October 28, 2005.