CITA's Timeframe and Formula for Implementing, Setting the Level of, China Safeguard Quotas
The Committee for the Implementation of Textile Agreements (CITA) has previously indicated that if it imposes a safeguard quota on a China category, merged category, or part category, it will be set at a level equal to the amount entered during the first 12 months of the most recent 14 months preceding the month of implementation1, plus 7.5% (6% for wool product categories).
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CITA sources state that this 'amount entered during the first 12 months of the most recent 14 months preceding the date of implementation' is provided by official Census data (i.e., "Year Ending" data) for the third month prior to the month the safeguard quota is implemented.
For example, if a safeguard quota is implemented in May, February Year-Ending Census data3 7.5% would be used to determine the quota level. If a safeguard quota is implemented in June, March "Year-Ending" Census data 7.5% would be used, etc.
If Safeguard Quotas are Imposed on China 338/339, 347/348 and/or 352/652 Immediately After Comment Deadline, February Census Data Would be Used to Set Levels
CITA recently self-initiated safeguard proceedings on China categories 338/339, 347/348 and 352/652. The deadline for public comments is May 9, 2005. (See ITT's Online Archives or 04/08/05 news, 05040805 for BP summary.)
According to CITA sources, if safeguard quotas are imposed on these merged categories as early as May 2005 (but after the May 9, 2005 deadline for comments), the quota limit for each would be the sum of Year-Ending February 2005 Census import data plus 7.5%, as follows2:
| China Merged Category | Year-Ending (YE) Feb 2005 | 7.5% = | Expected to be the safeguard quota level if one were imposed as early as May 2005 |
| 338/339 | 7,162,381 | 537,179 | 7,699,560 dozen |
| 347/348 | 6,608,959 | 495,672 | 7,104,631 dozen |
| 352/652 | 7,712,995 | 578,475 | 8,291,470 dozen |
For All Four Prior China Safeguard Quotas, CITA Waited More Than 60 Days from Comment Deadline to Impose Quotas
When CITA imposed safeguard quotas in 2003 on China 222, 349/649 and 350/650, CITA waited more than 60 days after the September 17, 2003 comment deadline to do so. (Quotas were imposed on December 24, 2003.)
When CITA imposed the safeguard quota in 2004 on China 332/432/632pt, CITA also waited more than 60 days after the August 23, 2004 comment deadline to do so. (The quota was imposed on October 29, 2004.)
It is not known if this pattern of waiting more than 60 days after the comment deadline will be followed should safeguard quotas be imposed on China 338/339, 347/348, and/or 352/652.
Safeguard Quotas Imposed in June 2005 Would Use March 2005 Census Data to Set Levels; Any Imposed in July 2005 Would Use April 2005 Census Data to Set Levels
Any safeguard quotas implemented for China categories 338/339, 347/348 or 352/652 in June 2005 would be set at the sum of Year Ending March 2005 import data plus 7.5%, while any implemented in July 2005 would be set at the sum of Year Ending April 2005 import data plus 7.5%.
1 Note that at the same moment that CITA requests consultations with China, it has implemented a quota for exports on or after that date.
2Note that January 2005 plus February 2005 Census import data for 338/339, 347/348, and 352/652 is 4,742,450 dozen, 4,685,076 dozen, and 3,375,245 dozen respectively. However this data is for imports only (regardlessof date of export), and CITA counts shipments against a safeguard quota limit by date of export.
Moreover, any safeguard quota would take effect for exports on and after the date it is implemented, and would not be retroactive (so there would not be any January or February quantity charges to a safeguard quotas imposed on China 338/339, 347/348 or 352/652.
3Year-Ending (YE) Census import data for February 2005 is data for the 12-month period of March 1, 2004 - February 28, 2005.
(See ITT's Online Archives or 04/14/05 news, 05041420 for BP summary of CITA's most recent update to its preliminary and official 2005 data for China textiles and apparel.)
CITA (OTEXA) Census import data available at http://otexa.ita.doc.gov/msrpoint.htm
CITA (OTEXA) Preliminary Customs data available at http://otexa.ita.doc.gov/prelimadmin/prelimdata.htm