EU To Lift China'S Textile Import Mechanism Next Year

In November 24, 2008, the import licensing department of the United Kingdom issued No. 2767th "importer notices", indicating that from January 1, 2009 onwards, textiles originating in the mainland of China will no longer require import licenses, no matter when the products are shipped from the mainland of China.

As for the existing import licences of the textiles already delivered, they will no longer be required when the products are cleared.

According to the memorandum signed between China and the European Union, the EU set up quotas for 10 types of textiles in the middle of 2005 and the end of 2007. In 2008, a two-sided monitoring system was implemented to monitor the export of 8 types of mainland textiles and clothing to the European Union, including fourth types of t-shirts, fifth types of T-shirts, sixth trousers, seventh types of T-shirts, Twentieth types of bed fabrics, twenty-sixth skirts, thirty-first categories and linen or ramie yarn.

According to the official of the European Commission, the announcement of the end of the bilateral monitoring mechanism should be officially announced in about 12 in 2008. Only when this formal notice is binding, will it be legally effective in the whole EU, so traders should wait for this formal announcement to make long-term business decisions.

However, products exported to the EU must be accompanied by certificates of origin, which are not related to import licences.

The British importer Notice No. 2699th gave some explanation.

The bilateral monitoring mechanism ended at the end of 2008, which did not mean that the EU would not adopt other trade defensive measures in the future.

For example, the EU may adopt trade defense compensation measures against dumping or subsidized products from a third country, resulting in an increase in tariffs, or a decision to establish import quotas to protect the local industry from the sudden damage of imports.

(c) anti-dumping and countervailing: according to the regulation No. 384/96 of the Council, if the following 3 situations are met, anti-dumping duties can be imposed: (1) dumping cases are found; (2) the ruling will cause substantial damage (or threat) to the EU industry; (3) take measures to the overall benefit of the EU (including industry, users and consumers).

The European Commission is responsible for investigating complaints usually submitted by the industry, judging whether they are established or taking temporary measures.

It is determined that measures can only be taken by the Council of the member states of the European Union.

If the anti-dumping duty is imposed according to the findings of the European Commission, the tax will expire in the next 5 years (unless the term of the expiration date is reviewed).

The tax rate is calculated based on dumping or damage.

In respect of countervailing measures, the Council's regulation 2026/97 provides the main legal framework.

In addition to the provisions on the definition and calculation of subsidies, the regulation is similar to the anti-dumping regulations.

Market defense: market defensive measures can be applied to textiles and non textiles.

When imports suddenly increase and may cause serious damage to the EU industry, the EU will consider adopting such measures, generally in the form of import quotas.

In terms of market defensive action, the EU industry can not directly appeal to the European Commission, but the Member States must make requests.

The European Commission can also act on its own initiative.

The European Commission must investigate and make sure that the market suffers serious damage before it can implement defensive measures.

(c) the legislation for textiles in the mainland: if the quantity of textiles covered by the WTO Agreement on textiles and clothing is too large to interfere with the development of EU trade, it is still possible for the EU to invoke Act No. 138/2003 before December 31, 2008 to take action on Chinese products.

In 2003, the European Union adopted regulation No. 427/2003 on the pitional product safety mechanism (TPSSM).

If any product originating in the mainland interferes with the EU market, the EU may invoke the provisions of the regulation to take action.

When investigating the market interference, the European Commission will examine a number of factors, including import volume and the impact on the prices of similar products in the EU.

If the situation is serious, the European Commission can take market defensive measures on its own.

Such measures should not exceed 200 days, in the form of tariffs or quotas.

The TPSSM mechanism and the measures taken under this mechanism will expire on December 11, 2013.

Yang Jing: editor in charge