On November 24, 2008, the British Import Licensing Department issued “Notice to Importers” No. 2767, stating that starting from January 1, 2009, textiles originating from mainland China will no longer require an import license, regardless of whether When were these products shipped from Mainland China? Existing import licenses for textiles that have already been shipped will no longer need to be presented when the products are cleared for customs. The notice is available at: http://www.berr.gov.uk/files/file49115.pdf.
According to the memorandum signed between China and the EU, the EU reset quotas for 10 categories of mainland textiles from mid-2005 to the end of 2007. During 2008, a bilateral supervision system was implemented to monitor 8 categories of mainland textiles and their export to the EU, including the T-shirts of category 4, pullovers of category 5, trousers of category 6, loose-fitting shirts of category 7, bedding fabrics of category 20, shirts and skirts of category 26, busts of category 31, Linen or ramie yarn of Class 115.
According to European Commission officials, this notice declaring the end of the bilateral monitoring mechanism should be officially announced around mid-December 2008. By then, only this formal notice will be binding and have legal effect throughout the EU. Therefore, Traders should wait for this official announcement before making any long-term business decisions.
However, products exported to the EU must still be accompanied by documents proving the origin of the product. Such documents are not related to the import license. This is explained in the British Notice to Importers No. 2699, the content of which is available at http://www.berr.gov.uk/files/file44267.pdf.
The following table shows the quantity of the above eight categories of textiles and clothing that have been approved for import as of December 3, 2008, as well as the expected quantity in the future. Column 5 shows how much of the quota was actually used in 2007 (when the quota still applied).
The above table shows that pullovers and shirt skirts are expected to have the largest import increases, reaching 269% and 296% respectively. The import volume of pullovers increased significantly in the second half of 2008. On July 1, 2008, the number of permitted imports was only 213,571,430 pieces, but by December 3, 2008, it jumped to 760,619,373 pieces. It is estimated that by the end of 2008, the number of pullover imports will be more than 3.5 times the quota used in 2007.
The end of the bilateral monitoring mechanism at the end of 2008 does not mean that the EU will not take other trade defense measures in the future. For example, the EU may adopt trade defense compensation measures against dumped or subsidized products from third countries, resulting in increased tariffs; or it may decide to establish import quotas to protect local industries from sudden increases in imports.
Anti-dumping and countervailing: According to Council Regulation No. 384/96, anti-dumping duties can be levied if the following three conditions are met: 1. Dumping is discovered; 2. It is determined that substantial damage (or threat) is caused to the EU industry ); 3. Take measures that are beneficial to the EU as a whole (including industry, users, and consumers). The European Commission is responsible for investigating complaints, usually submitted by the industry, to determine whether they are justified and to take provisional measures. Determination of measures can only be taken by the Council of EU Member States.
If anti-dumping duties are levied based on the findings of the European Commission, the duties will expire 5 years after the implementation date (unless an expiration review is initiated). The tax rate is calculated based on the extent of dumping or damage.
Regarding countervailing measures, the main legal framework is provided by Council Regulation No. 2026/97. This regulation is similar to the anti-dumping regulations except for the provisions on the definition and calculation method of subsidies.
Market defense: Market defense measures can be applied to textiles and non-textiles. When a sudden increase in imported products causes or is likely to cause serious damage to the EU industry, the EU will consider taking such measures, usually in the form of establishing import quotas.
In terms of market defense actions: EU industries cannot directly appeal to the European Commission, and member states must make requests. The European Commission can also take action on its own. The European Commission must investigate and determine that the market has suffered serious damage before it can implement defensive measures.
Regarding mainland textile laws: If there are too many textiles from mainland China and covered by the WTO Textile and Clothing Agreement, which may hinder the development of EU trade, the EU may still invoke Article 138 before December 31, 2008. / Regulation No. 2003, taking action against Chinese products.
In 2003, the EU passed Regulation No. 427/2003 on the “Transitional Safeguard Mechanism for Specific Products” (TPSSM). If any products originating from mainland China interfere with the EU market, the EU can invoke the provisions of the regulations and take action.
When the European Commission investigates market interference, it will examine a number of factors, including import volume and the impact on the price of similar products in the EU. If the situation is serious, the European Commission can take market defense measures on its own. Such measures cannot exceed 200 days and can take the form of tariffs or quotas. The TPSSM mechanism and the measures taken under this mechanism will expire on December 11, 2013.
