China: Safeguard Quota, Visa Imposed on Cats 332/432 and 632pt

(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 socks are, due to market disruption and the threat of market disruption, threatening to impede the orderly development of trade in socks, and that imports of socks from China play a significant role in the existence of and threat of market disruption.)

Exports on/after October 29, 2004 Subject to Safeguard Quota

As a result, CITA states that effective October 29, 2004, it is imposing a safeguard quota of 42,433,990 dozen pairs on the above-listed categories produced or manufactured in China and exported during the October 29, 2004 through October 28, 2005 period.

(According to a recently issued Commerce Department Fact Sheet, this quota limit is the sum of imports of Chinese origin cotton and MMF socks (categories 332 and 632pt.) 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. See ITT's Online Archives or 10/25/04 news, 04102507 for BP summary of Fact Sheet.)

CITA states that consultations with China will be held within 30 days of October 29, 2004 and every effort will be made to reach an agreement on a mutually satisfactory solution within 90 days of October 29, 2004. CITA notes that if agreement is reached, CITA will issue a Federal Register notice announcing the negotiated limit.

Visas and ELVIS Transmissions Required; Cat 332 to Remain Subject to Group II; Grace Period for 432 and 632pt. Visa Requirements

CITA states that the U.S.-China visa arrangement provides that if additional categories become subject to quota, those categories will automatically be included in the coverage of the visa arrangement. As a result, the U.S. will require shipments of these Chinese socks to be accompanied by an export visa and Electronic Visa Information System (ELVIS) transmission issued by the government of China, adding that this is in the mutual interest of both countries.

Goods in category 332 will remain subject to the Group II limit, and will continue to be subject to export visa and ELVIS requirements. If exported on or after January 1, 2005, goods in cat 332 shall be subject only to the safeguard limit.

In order to provide a period of adjustment, the U.S. will allow shipments of goods in China cats 432 and 632pt. that are not accompanied by an export visa and an ELVIS transmission to enter the U.S. if exported prior to November 28, 2004.

However, shipments of cats 432 and 632pt. exported from China on/after November 28, 2004 must be accompanied by an export visa and ELVIS transmission issued by the government of China, and shipments without an export visa and ELVIS transmission will be denied entry.

(Socks in cat 632 may be visaed as cat 632 or cat 332/432/632, but not as cat 632pt. Similarly socks in cat 332 may be visaed as cat 332 or cat 332/432/632, and socks in cat 432 may be visaed as cat 432 or cat 332/432/632.)

CITA contact - Ross Arnold (202) 482-4212

CITA notice (FR Pub 11/01/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-24432.pdf.

BP Note

Subscribers should note that there are currently no visa or ELVIS requirements imposed on the safeguard quotas for China cats 222, 349/649 and 350/650, all of which expire on December 23, 2004. However, petitions requesting their extension are expected to be filed. (See ITT's Online Archives or 10/13/04 news, 04101305 for BP summary.)