Care Recommended on Importation of Products Potentially Subject to China Safeguards

Issue 493, October 19, 2005

Companies who import textile and apparel products of Chinese origin need to closely monitor any developments involving negotiations between the U.S. and China on a comprehensive textile agreement. The Office of U.S. Trade Representative (USTR) has stated that the sides failed to reach an agreement during the latest rounds of textile talks recently held in Beijing, China.

The U.S. has a right, under China's World Trade Organization (WTO) Accession Agreement, to invoke safeguards (quotas) in cases of market disruption or the threat of market disruption. If a textile agreement cannot be reached, the U.S. will potentially issue additional safeguards against certain Chinese origin textile/apparel products. Below is a listing of product category numbers that may become subject to safeguards-

Categories Pending CITA Decision on Implementation/Reapplication of China Safeguard Quotas

¹ Currently subject to China safeguard quota
² China safeguard quota currently closed

Importers should check on the status of any safeguards on their products prior to exportation to the U.S. Some of these safeguard quotas may fill and close quickly upon their initiation. Importations of products where the safeguards have filled will not be allowed entry for consumption. Those products will be required to either be re-exported or placed in a bonded warehouse until the safeguard period expires.