CITA Implements Safeguard Quotas On China 349/649 and 620

September 2, 2005 |Top News

The Committee for the Implementation of Textile Agreements (CITA) has posted a notice to its website, scheduled to be published in the Federal Register on September 6, 2005, which implements effective August 31, 2005, safeguard quotas on the following textiles and apparel at the listed levels, for exports from China during the period of August 31, 2005 - December 31, 2005:

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Category(s)	Quantity	Category Description
349/649	7,275,216 dozen	Cotton and manmade fiber (MMF) brassieres and other body supporting garments
620	12,328,306 m²	Other MMF synthetic filament fabric

Products exported to the U.S. prior to August 31, 2005 will not be charged to the safeguard quotas.

According to a press release issued by the Department of Commerce, CITA has also requested consultations with the Government of China with respect to imports of the above categories.

(See future issue of ITT for more detailed summary of CITA's Federal Register notice.)

CITA Finds Both Market Disruption and "Threat of" Market Disruption

According to the press release, CITA has implemented these safeguard quotas as it has determined that the U.S. market for other MMF synthetic filament fabric (category 620) and cotton and MMF brassieres and other body supporting garments (category 349/649) is being disrupted and that there is a threat of further disruption.

CITA further determined that the imports in these categories from China play a significant rule in the existence and threat of market disruption, and that this situation threatens to impede the orderly development of trade in these products.

(See ITT's Online Archives or 08/03/05 news, 05080310 for BP summary of CITA's postponement of these and other safeguard determinations until August 31, 2005. See ITT's Online Archives or 09/02/05 news, 05090215 for BP summary of CITA's decision to further postpone its safeguard determinations on China 222, 345/645/646, 350/650, and 447.)

CITA notice imposing safeguard quotas, dated 08/31/05, (to soon be in Federal Register), available at http://otexa.ita.doc.gov/fr2005/chisa8.htm

Commerce Dept. press release on CITA's actions (dated 09/01/05), available at http://www.ita.doc.gov/media/PressReleases/0905/cita_090105.html

BP Notes

1. Official Census data for the month of June 2005 indicates that imports of China 349 were 397,903 dozen in June 2005, and imports of China 649 were 1,821,710 dozen in June 2005. The preliminary July 2005 figures are currently showing lower quantities than these official June figures.

Official Census data for the month of June 2005 indicate that imports of China 620 were 9,272,758 square meters in June 2005, with the current preliminary July 2005 figures somewhat lower. (See future issue of ITT for BP summary reflecting these June and July numbers.)

(China category 349/649 was previously subject to a safeguard quota for exports during the period of December 24, 2003 - December 23, 2004; however it closed early, on November 18, 2004, and then overshipments were subject to delayed, staged entry. (The first staged entry for 349/649 closed at opening moment; the second staged entry for 349/649 did not close at opening moment. (See ITT's Online Archives or 02/02/05 and 03/03/05 news, 05020220 and 05030315 respectively, for BP summaries of the 1^st and 2^nd staged openings.)

Note that the U.S. and China have been engaged in textile negotiations with the goal of reaching a "broad solution that provides greater certainty for the textiles market."

The two countries met on August 16-17, 2005 in San Francisco and more recently on August 30 - 31, 2005 and then again on September 1, 2005 in Beijing. No agreement has yet been reached, but another round of talks may be held.

If any agreement is reached, it would be expected to supersede these safeguard quota proceedings.

(See ITT's Online Archives or 08/29/05 and 09/01/05 news, 05082999 1, and 05090199 1, respectively, for previous updates on these talks.)