China : Safeguard Quotas Imposed on Cats 349/649 and 620
The Committee for the Implementation of Textile Agreements (CITA) has issued a notice announcing that on August 31, 2005, the U.S. requested consultations with the government of China with respect to imports of Chinese origin cotton and man-made fiber (MMF) brassieres and other body supporting garments in category 349/649 and other synthetic filament fabric in category 620.
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| China: |
|---|
| Quotas Eff: 08/31/05QP: 08/31/05 - 12/31/05FR Pub: 09/06/05 |
| Category | Safeguard Limit |
|---|---|
| 349/649 | 7,275,216 doz |
| 620 | 12,328,306 m2 |
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 products are, due to market disruption and the threat of market disruption, threatening to impede the orderly development of trade in these products.)
See CITA's notice for a summary statement of the reasons and justifications for the safeguard quotas and U.S request for consultations concerning imports of China cats 349/649 and 620.
(See ITT's Online Archives or 09/02/05 news, 05090210, for previous BP summary on the implementation of safeguard quotas on China cats 349/649 and 620.)
Exports on/after August 31, 2005 Subject to Safeguard Quotas
As a result, CITA states that effective August 31, 2005, it is imposing a safeguard quota of 7,275,216 dozen on cat 349/649 and a safeguard quota of 12,328,306 square meters of cat 620 produced or manufactured in China and exported during the August 31, 2005 through December 31, 2005 period.
CITA notes that products which have been exported to the U.S. prior to August 31, 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 August 31, 2005 and run through December 31, 2005 (a period of 123 days), the notional limits are being prorated by a ratio of 123/365.)
Consultations with China to Be Held, Etc.
CITA states that consultations with China will be held within 30 days of the receipt of 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.
CITA contact - Ross Arnold (202) 482-4212
CITA notice (FR Pub 09/06/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-17692.pdf.
Commerce Department fact sheet available at http://otexa.ita.doc.gov/CITA_Fact_Sheet_090105.doc.
BP Notes
1. Other China safeguard quotas currently in effect. Safeguard quotas on China 301, 332/432/632pt, 338/339, 340/640, 347/348, 352/652, 638/639, and 647/648 are also currently in effect. (The safeguard quotas on China cats 332/432/632pt, 338/339, 347/348, 352/652, 638/639, and 647/648 are currently closed.)
- Overshipments of China safeguard quotas subject to delayed, staged entry. In April 2005, CITA issued a notice announcing that overshipments of 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 a safeguard quota 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.
(See ITT's Online Archives or 04/27/05 news, 05042705, for BP summary of CITA's April 2005 notice.)