Worldwide Customs & Regulatory Updates
January 17, 2006 U.S. and China Textile Agreement Update
The U.S. and China have concluded a comprehensive agreement on China's textile exports to the U.S., covering the years 2006 through 2008. The agreement places U.S. import quota restraints on 34 categories of textile commodities, covering 46 percent of previously regulated China textile exports to the U.S.
Because of this agreement, "safeguard quotas" will not be implemented, as allowed under the WTO trading rules. The agreement also allows China to export 3.2% more to the U.S. than if the safeguards had been implemented.
China will manage its exports with a visa system and can borrow small amounts of quota from future years to cover over-shipments. The U.S. and China have agreed to establish an Electronic Visa Information System (ELVIS). This allows China to transmit visa and other relevant information regarding the exported textile products electronically to the U.S. Customs and Border Protection (CBP). The transmission certifies the country of origin and authorizes the shipment to be charged against any applicable quota.
China is required to issue an ELVIS transmission for shipments of certain textile products, produced or manufactured in China and exported on or after January 1, 2006.
Shippers in China are required to provide original copies of the following documentation if the textile products are manufactured in China as below:
- Temporary Textiles Export License of the People's Republic of China
- Textile Export License
- Certificate of Origin
- Commercial Invoice with ELVIS message (Manufacturer ID number (MID), VISA number, date of issuance, category number, quantity and unit of quantity)
Shippers in other countries are required to provide photocopies of the following documentation if the textile products are manufactured in China as below:
- Textile Export License
- Certificate of Origin
- Commercial Invoice with ELVIS message (Manufacturer ID number (MID), VISA number, date of issuance, category number, quantity and unit of quantity)
The "core" commodities affected are:
- Cotton knit shirts, man-made fiber knit shirts and woven shirts;
- Cotton trousers and man-made fiber trousers;
- Brassieres; and
- Underwear.
The agreement comes into effect from January 1, 2006 to December 31, 2008.
The U.S. will allow those products that were denied entry due to being over the safeguard quota limits previously in effect. These shipments may be entered for one month beginning February 1, 2006, to a maximum of 5% of the original quota limit. An additional 5% may be entered each subsequent month until all shipments are released.
The apparel items delayed include cotton and man-made fiber knit shirts, blouses, trousers, and undergarments. There are several textile categories included, and the quantity to be allowed entry in February differs by category.
Full details can be found in the CITA Federal Register notice published December 5, 2005 located at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/E5-6842.pdf
Merchandise imported for the personal use of the importer and not for resale, regardless of value, are exempt from the visa and restraint levels of the agreement.
Detailed information is available on:
http://otexa.ita.doc.gov/fr2005/chiestlielv.htm
http://www.mofcom.gov.cn/aarticle/b/c/200511/20051100855965.html
For frequently asked questions, please refer to here
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