CITA Solicits Comments on Domestic Industry Request for Safeguard Quota On China Cat 332/432 and 632PT
The Committee for the Implementation of Textile Agreements (CITA) has issued a notice announcing that on June 28, 2004, it received a request from the Domestic Manufacturers Committee of the Hosiery Association, the American Manufacturing Trade Action Coalition, the National Council of Textile Organizations, and the National Textile Association requesting that a textile and apparel safeguard action be taken on imports from China of cotton, wool, and man-made fiber (MMF) socks (cat 332/432 and 632PT (part)).
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CITA states that it has determined that this request provides the information necessary for CITA to consider whether to request consultations with China on textile and apparel products in these categories.
As a result, CITA is soliciting public comments on this request, in particular, whether imports from China of such socks are, due to market disruption, threatening to impede the orderly development of trade in this product.
Cats 432 and 632 Are Currently Quota/Visa-Free; Cat 332 is Quota/Visa Under Group II
China 432 and 632 are currently not subject to quota or visa requirements; however, China cat 332 is subject to both quota and visa requirements as part of Group II.
(According to the domestic industry's petition, the Harmonized Tariff Schedule (HTS) numbers for cat 332/432 and 632PT are 6115.91.0000, 6115.92.6000, 6115.92.9000, 6115.93.6010, 6115.93.6020, 6115.93.9010, 6115.93.9020, 6115.99.1410, 6115.99.1420, 6115.99.1810, and 6115.99.1820.
CITA sources have stated by phone that cat 632PT does not include MMF hosiery, which is also under cat 632.)
CITA Has 60 Calendar Days from August 23, 2004 to Determine Whether to Request Consultations with China
According to CITA, written comments may be submitted by any interested person, and are due by August 23, 2004.
CITA states that it will make a determination within 60 calendar days of August 23, 2004 as to whether the U.S. will request consultations with China.
If CITA is unable to make such a determination by that October date, it will publish a notice in the Federal Register listing the date by which it will make its determination. In addition, CITA states that if it decides to not request consultations with China on a petition, it will publish that negative determination in the Federal Register.
If CITA Finds Market Disruption, etc., It Will Request Consultations and China Will Limit its Shipments
If CITA makes an affirmative determination that imports of subject Chinese textile and apparel products are, due to market disruption, threatening to impede the orderly development of trade in these products, the U.S. will request consultations with China, with a view to easing or avoiding such market disruption.
Upon China's receipt of its request for consultations, CITA states China has agreed to hold its shipments of the subject product to a level no greater than 7.5% (6% for wool product categories) above the amount entered during the first 12 months of the most recent 14 months preceding the request for consultations. In addition, the U.S. may implement this level as a quota limit.
(The limit would be effective on the date of the request for consultations and end on December 31 of that year unless three or fewer months remain in the year at the time of the request for consultations; in such a situation, the limit would end 12 months after the request for consultations.)
(See ITT's Online Archives or 08/04/03 and 05/22/03 news, 03080415 and 03052210 respectively, for BP summaries on the procedures and timeframes for CITA's decisions on safeguard limits for China.)
CITA Contact - Jay Dowling (202) 482-4058
CITA notice (FR Pub 07/22/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-16734.pdf.
BP Note
The U.S. has previously imposed safeguard quotas on China cats 222, 349/649, and 350/650 for the December 24, 2003 through December 23, 2004 period.
(See ITT's Online Archives or 12/29/03 news, 03122920 for BP summary of CITA notice imposing these safeguard quotas.)