CITA Determines to Impose Safeguard Quota on China Socks
According to a Commerce Department Fact Sheet, on October 22, 2004 the Committee for the Implementation of Textile Agreements (CITA) determined that the U.S. market for socks (categories 332/432 and 632 part (pt)) is being disrupted and there is a threat of further disruption due to imports from China.
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CITA further determined that imports of socks from China play a significant role in the existence and threat of market disruption, and that this situation threatens to impede the orderly development of trade in these products.
(According to the Fact Sheet, subject cotton, wool, and man-made fiber (MMF) socks in categories 332/432 and 632pt consist of eleven HTS numbers: 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.)
Quota to be Imposed on Date CITA Requests Consultations
As a result of its determination, CITA will request consultations with China, and on the date of the request impose a quota to limit U.S. imports of these socks from China.
The Fact Sheet states that the quota limit will be the sum of imports of Chinese origin cotton and MMF socks (categories 332 and 632 pt) plus 7.5%, and imports of Chinese origin wool socks (category 432) plus 6 percent, which entered into the U.S. during the first 12 months of the most recent 14 months preceding the month in which the request for consultations is made.
If Agreement Not Reached During Consultations, Quota to Continue for One Year
Consultations must be held within 30 days of the China government's receipt of the request for consultations. The Fact Sheet states that the U.S. will make every effort to reach a mutually satisfactory agreement with the Government of China to ease or avoid disruption in the U.S. market for socks within 90 days of such request.
In the event a mutually satisfactory agreement cannot be reached by the conclusion of the 90-day consultation period, the Fact Sheet states that the quota will remain in place for one year after the date on which consultations are requested.
Fact Sheet Import Statistics for Subject Socks
In its Fact Sheet, Commerce also lists certain import statistics, including imports of socks in the eleven HTS numbers from the World for the year-ending August 2004 as 180,458,290 dozen pair, and imports of socks in the eleven HTS numbers from China for the year-ending August 2004 as 42,491,164 dozen pair.
(See ITT's Online Archives or 07/22/04 news, 04072210 for BP summary of CITA notice seeking comments on a domestic industry request for a safeguard quota on China 332/432 and 632pt.)
Commerce Fact Sheet available at http://www.ita.doc.gov/media/FactSheet/1004/safeguardsocks_1022.html
BP Notes
U.S. Customs and Border Protection (CBP) information available at http://www.cbp.gov/quotas/files/cntxtrpt.htm, indicates that China category (cat) 332 is currently subject to quota and visa requirements as part of Group II, while China cat 432 and 632 are currently quota- and visa-free (due to Stage 2 WTO integration). China cat 332 is scheduled to be integrated in Stage 4.
According to the most recent OTEXA Major Shippers reports (August 2004 data), available at http://otexa.ita.doc.gov/catss.htm, for the 12 months ending August 2004, imports of China cat 332 were 409,798 dozen pair.
For cat 632 (all of 632, not just 632 pt.), imports were 45,531,363 dozen pair for the 12 months ending August 2004.
For cat 432, imports were 192,897 dozen pair for the 12 months ending August 2004.
(See ITT's Online Archives or 01/10/02 news, 02011015 for 2002 BP summary of China and Taiwan categories entirely or partially integrated as a result of Stage 2 and Stage 3 World Trade Organization (WTO) integration. Note that China safeguard quotas can be imposed on categories entirely or partially integrated.
See CBP's Web site, at http://www.cbp.gov/quotas/files/visa_rpt.htm, for 10/21/04 listing of categories entirely or partially integrated as a result of Stage 2 and Stage 3 World Trade Organization (WTO) integration, for affected WTO countries.)