Issue 299, April 11, 2001
Trade Relations With China

On April 4, 2001, Representatives Duncan Hunter and Tom Tancredo introduced a bill (H.R. 1467) that would provide that normal trade relations (Most Favored Nation rates) would cease to apply to the products of China and could not be applied to the products of China thereafter. H.R. 1467 states that the withdrawal of normal trade relations from China would apply despite the provisions of Title I of Public Law, which authorizes the President, no earlier than the effective date of China's accession to the World Trade Organization (WTO), to 1) determine that the Jackson-Vanik emigration requirements of the 1974 Trade Act should no longer apply to China, and then to 2) proclaim permanent Normal Trade Relations (NTR) for the products of China.

In addition, another extension of this waiver would be required in order to give China NTR beyond July 2, 2001, if President Bush is unable to (if China has not acceded to the WTO) or determines not to exercise his authority under P.L. 106-286. Importers should note that as a result of former President Clinton's extension in 2000 of the waiver of the Jackson-Vanik requirements with respect to China, China will retain its NTR through July 2, 2001 unless terminated before that date by the enactment of H.R. 1467. According to Hunter's office, H.R. 1467 was introduced in response to China's refusal to release the crew of a U.S. surveillance plane that was forced to land in China following a collision with a Chinese fighter jet.

Our contributing writer (for Trade Relations With China article), Karl Krueger, works in Southfield, Michigan for Danzas AEI Intercontinental as Technical Advisor for tariffs and binding rulings. He can be reached at dttkfk@aeilogis.com or at 248-263-8817.

U.S. Customs Updates the Suspected Transshippers Listing

On March 16, 2001, U.S. Customs once again updated is listing of "Suspect" factories. The latest change adds seven Hong Kong and twenty Macau factories to the list of companies that have been assessed penalties or convicted for false claims of origin for textile products shipped to the United States. Merchandise from these factories will be detained and excluded if sufficient documentation of the origin of the goods is not produced.

The names of the Macau factories added to the list are:

Comfortex Garment Factory Hanson Kam Lai Seng Garment Factory Lishen Macau Garment Factory New Wealth San Luen Fat Wai Leng Garment Factory

Eva Hee Lee Kar Yip Garment Factory Man Ton Garment Factory Limited Oelam San Wai Lung Wai LUng Garment Factory

Fu Tat Kai Lei Lai San Ming Tak Limited Pio Chi Va Fu

The seven Hong Kong factories added to the list are:

Chun Tat Garment Factory Janie Michele (HK) Knitters Limited Po Ngai Garment Manufacturing Company Limited Yield Point International Industrial Limited

Goodluck Garment Limited Kong Wai Garment Factory Wintoast Limited

Customs deleted approximately 28 previously listed Macau (14) and Hong Kong (14) factories from the list. In addition, Customs added the names of the 5 Bangladesh factories, entries of merchandise from which were barred by CITA on March 1, 2001. View the complete list.

Our contributing writer (for U.S. Customs Updates the Suspected Transshippers Listing article), David M. Murphy, is a Partner at the Customs and international trade law firm of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP, and can be reached via email or at (212) 557-4000.

Please note that due to the complex nature of the subject matter, Danzas AEI cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with Danzas AEI.