CHINA TEXTILE/APPAREL QUOTAS SCHEDULED TO EXPIRE DECEMBER 31, 2008 – REMINDER

As we advised July 24, 2008, the quotas imposed on certain China-origin textile and apparel goods, pursuant to the U.S.-China Textile Agreement, are scheduled to end on December 31, 2008. Any over-shipments that are exported in 2008 will be subject to staged entry in 2009.

The following possibilities remain in the case of over-shipments starting next year:

  • The China “product-specific safeguard”, which may be used by WTO member countries for any Chinese-origin products, including textiles and apparel, will remain in place until December 11, 2013. This safeguard allows members to withdraw concessions granted to China or to limit imports from China when those products threaten market disruption.
  • Antidumping duties may be applied to imports from China. Certain areas of the textile industry may not be able to avail themselves of these import relief measures if what they manufacture is not “like or directly competitive to” the imported Chinese product.
  • Countervailing duties may be applied. Congress has lent its support of CV cases against China by creating an office to handle these specific investigations. Over seventy Chinese programs have been identified as being provided with illegal subsidies.
  • Complaints to World Trade Organization against alleged Chinese subsidies may provoke further action.

Information on this and other recent developments can be obtained from our technical consulting group.