China: Safeguard Quotas Imposed on Cats 338/339, 347/348, and 352/652
The Committee for the Implementation of Textile Agreements (CITA) has issued a notice announcing that on May 23, 2005, the U.S. requested consultations with the government of China with respect to imports of Chinese origin cotton knit shirts and blouses in category 338/339, cotton trousers, slacks, and shorts (trousers) in category 347/348, and cotton and man-made fiber (MMF) underwear in category 352/652.
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| China: |
|---|
| QP: 05/23/05 - 12/31/05FR Pub: 05/24/05 |
| Category | Safeguard Limit |
|---|---|
| 338/339 | 4,704,115 dozen |
| 347/348 | 4,340,638 dozen |
| 352/652 | 5,062,892 dozen |
(These consultations are being requested under the provisions of China's Accession Agreement to the World Trade Organization (WTO), as CITA has determined that imports of these Chinese origin shirts and blouses, trousers, and underwear are, due to market disruption and the threat of market disruption, threatening to impede the orderly development of trade in these textile products, and that imports of such shirts and blouses, trousers, and underwear from China play a significant role in the existence and threat of market disruption.
See CITA's notice for a summary statement of the reasons and justifications for the U.S. request for consultations concerning imports of China cats 338/339, 347/348, and 352/652.)
Exports on/after May 23, 2005 Subject to Safeguard Quotas
As a result, CITA states that effective May 23, 2005, it is imposing safeguard quotas at the levels listed above on the above-listed categories produced or manufactured in China and exported during the May 23, 2005 through December 31, 2005 period.
CITA notes that products which have been exported to the U.S. prior to May 23, 2005 will not be subject to these safeguard quotas on China cats 338/339, 347/348, and 352/652.
(CITA states that consistent with the terms of China's WTO Accession Agreement, these safeguard limits will only last through December 31, 2005. Therefore the 12-month notional limits, which are 7.5% above the amount entered during the first 12 months of the most recent 14 months preceding the month in which the request for consultations was made, are being prorated to correspond to the amount of days of the year covered by the safeguard quota period. As these safeguard quotas begin on May 23, 2005 and run through December 31, 2005 (a period of 223 days), the notional limits are being prorated by a ratio of 223/365.)
Consultations with China Will Be Held within 30 Days of May 23, 2005, Etc.
CITA states that consultations with China will be held within 30 days of May 23, 2005 and every effort will be made to reach an agreement on a mutually satisfactory solution within 90 days of May 23, 2005. CITA notes that if agreement on a different limit than listed above is reached, CITA will issue a Federal Register notice announcing the negotiated limit.
(See ITT's Online Archives or 05/16/05 news, 05051600, for BP summary of CITA's announcement that it would impose safeguard quotas on China cats 338/339, 347/348, and 352/652, CITA's self-initiated safeguard cases. See ITT's Online Archives or 05/17/05 news, 05051712, for BP's update on possible safeguard quota levels for China cats 338/339, 347/348, and 352/652.)
CITA contact - Ross Arnold (202) 482-4212
CITA notice (FR Pub 05/24/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-10449.pdf.
BP Notes
1. CITA has also announced it will impose four other China safeguard quotas. CITA has also recently announced that it has made affirmative decisions of "threat of" market disruption in the safeguard cases on China cats 301, 340/640, 638/639, and 647/648 and will request consultations with China before the end of May 2005. At the same time, CITA stated that it would impose safeguard quotas on these four product categories for exports on or after the date consultations are requested. (See ITT's Online Archives or 05/19/05 news, 05051910, for BP summary of CITA's announcement.)
- Overshipments of safeguard quotas subject to delayed and staged entry. In April 2005, CITA issued a notice announcing that overshipments of the China safeguard quota on cats 332/432 and 632pt. for the 10/29/04 - 10/28/05 period, or overshipments of any future China safeguard quotas, will be subject to delayed and staged entry.
CITA stated that in the absence of bilateral agreement with China establishing limits beyond the expiration date of safeguard quotas, any overshipments of those quotas shall be subject to the following procedure:
Entry will not be allowed until one month after the expiration date of the safeguard quota.
At that time, only 5% of the base limit will be allowed entry for a one month period beginning on that date.
An additional 5% will be allowed entry monthly until all overshipments are allowed entry.
According to CITA, this procedure is similar to that in a December 2004 Federal Register notice that announced staged entry for overshipments of quotas on World Trade Organization (WTO) members, China textile safeguard quotas, and textile quotas on non-WTO countries without agreements in place for 2005.
(See ITT's Online Archives or 04/27/05 news, 05042705, for BP summary of CITA's April 2005 notice.)