CBP Posts Third Set of FAQs on January 1, 2005 Elimination of Most Textile and Apparel Quotas
U.S. Customs and Border Protection (CBP) has posted a third set of frequently asked questions (FAQs) and responses (dated 10/27/04) to its Web page regarding the January 1, 2005 full integration (elimination of quotas) for textiles and textile apparel originating in countries that are members of the World Trade Organization (WTO).
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The new set of FAQs contains only three questions and responses, as follows:
FAQ 1 - Goods subject to China safeguard quotas that are shipped in excess of their limit. This question asks if goods subject to a China safeguard quota (e.g., Cat 350/650), which cannot be entered because the safeguard embargoes, can be warehoused and then entered on or after December 24, 2004.
CBP responds that goods shipped in excess of quota limits are in violation of the procedures set forth by the Committee for the Implementation of Textile Agreements (CITA)1. According to CBP, CITA may deny entry, allow for an orderly staging of entry, or allow entry without staging in 20052.
FAQ 2 - Expiration of current China safeguard quotas, etc. In response to a question on whether the China safeguard quotas currently in effect (Cats 222, 349/649, and 350/650) will be extended, and whether any additional China safeguard quotas will be imposed, CBP states that the current China safeguard quotas are due to expire December 23, 2004, and they may or may not be extended for another year. CBP further states that it is not known at this time if additional safeguard quotas will be imposed on textiles and textile products manufactured and exported from China in 2005 (i.e., after December 31, 2004).
CBP recommends that interested parties view the Commerce Department website (http://otexa.ita.doc.gov) on a regular basis for any updates. In addition, any extension or imposition of additional China safeguard quotas will be published in the Federal Register.
FAQ 3 - Visas/certificates for AGOA, SFTA, etc. textiles eligible for TPLs/Caps & reduced rates of duty. This question asks whether visas or certificates of eligibility will be required for textiles and textile products eligible for tariff preference levels (TPLs or caps) and reduced rates of duty provided for under the African Growth and Opportunity Act (AGOA), Singapore Free Trade Agreement (SFTA), the North America Free Trade Agreement (NAFTA), etc. after January 1, 2005.
CBP responds that only those items that have been subject to bilateral textile and apparel quotas for members of the WTO are subject to the elimination of quota/visa restrictions.
Shipments of merchandise eligible for TPLs/Caps and reduced rates of duty that fall under different agreements or legislation (e.g., AGOA, NAFTA, SFTA, etc.) will continue to require a visa or a certificate of eligibility in order to claim benefits.
1 See ITT's Online Archives or 05/22/03 and 08/19/03 news, 03052210 and 03081915, for BP summaries on its May 21, 2003 procedures and its August 18, 2003 clarification.
2 See ITT's Online Archives or 06/25/04 news, 04062515, for BP summary of CITA's notice on its intention to enforce all quota/visa requirements for 2004 textile exports and its reservation of the right to deny or stage overshipments in 2005.
(See ITT's Online Archives or 09/22/04 news, 04092220, for BP summary of the second set of FAQs.)
CBP's WTO quota elimination Web page (which contains this third set of FAQs that is dated 10/27/04) available at http://www.cbp.gov/xp/cgov/import/textiles_and_quotas/wto_quota_elimination/