China: Safeguard Quotas Imposed on Cats 301, 340/640, 638/639, and 647/648
The Committee for the Implementation of Textile Agreements (CITA) has issued a notice announcing that on May 27, 2005, the U.S. requested consultations with the government of China with respect to imports of Chinese origin combed cotton yarn in category 301; men's and boys' cotton and manmade fiber shirts, not knit in category 340/640; manmade fiber knit shirts and blouses in category 638/639; and manmade fiber shorts, slacks and trousers in 647/648.
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| China: |
|---|
| QP: 05/27/05 - 12/31/05FR Pub: 05/31/05 |
| Category | Safeguard Limit |
|---|---|
| 301 | 1,450,777 kilograms |
| 340/640 | 2,213,126 dozen |
| 638/639 | 2,844,383 dozen |
| 647/648 | 2,660,678 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 Chinese origin combed cotton yarn; men's and boys' cotton and manmade fiber shirts, not knit; manmade fiber knit shirts and blouses; and manmade fiber shorts, slacks and trousers are, due to the threat of market disruption, threatening to impede the orderly development of trade in these textile products, and that imports of such textile products from China play a significant role in the threat of this 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 301, 340/640, 638/639, and 647/648.)
Exports on/after May 27, 2005 Subject to Safeguard Quotas
As a result, CITA states that effective May 27, 2005 (for entries for consumption and warehouse withdrawals for consumption), it is imposing safeguard quotas at the levels listed above on categories 301, 340/640, 638/639, and 647/648 produced or manufactured in China and exported during the May 27, 2005 through December 31, 2005 period.
CITA notes that products which have been exported to the U.S. prior to May 27, 2005 will not be subject to these safeguard quotas.
(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 number of days remaining in the year. As these safeguard quotas begin on May 27, 2005 and run through December 31, 2005 (a period of 219 days), the notional limits are being prorated by a ratio of 219/365.)
Consultations with China to Be Held, Etc.
CITA states that consultations with China will be held within 30 days of the receipt o the request for consultations, and every effort will be made to reach an agreement on a mutually satisfactory solution within 90 days of this date. 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 301, 340/640, 638/639 and 647/648.)
CITA contact - Ross Arnold (202) 482-4212
CITA notice (FR Pub 05/31/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-10841.pdf
BP Notes
1. Four other China safeguard quotas currently in effect. Four safeguard quotas on China 332/432/632pt, 338/339, 347/348, and 352/652 are also currently in effect. (See ITT's Online Archives or 05/17/05 news, 05051713 for BP summary stating that the safeguard quota on China 332/432/632pt closed. See ITT's Online Archives or 05/24/05 news, 05052405 for BP summary on CITA's imposition of safeguard quotas on China 338/339, 347/348, and 352/652.)
- Overshipments of China safeguard quotas subject to delayed, 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.)