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December
10, 2001
Pursuant to certain GATT negotiations completed in 1994, the United
States agreed to eliminate quotas on all textiles and apparel by
January 1, 2005. The process of eliminating quotas is called "integration"
and affects only textile and apparel articles imported from WTO
countries. The integration is being phased in over four stages.
The first-stage was completed on January 1, 1996, and the second-stage
was completed on January 1, 1998. Currently, the third-stage
is set to take effect January 1, 2002 and will result in many categories
becoming quota-free. The final fourth-stage of this process
will take place on January 1, 2005 and involves the most sensitive
textile and apparel items.
Admission Of China And Taiwan Into The WTO
China and Taiwan are scheduled to become WTO members on December
11, 2001, and on January 1, 2002, respectively. As such, textile
and apparel items from countries will also be eligible for integration.
Thus, articles from China and Taiwan covered by the third-stage
will be eligible for integration on January 1, 2002. It is presently
unclear as to when an integration of the first two stages will take
place, however, members of the Committee for the Implementation
of Textiles and Apparel (CITA), are meeting to determine when the
integration benefits for China will take place. Articles that are
eligible for Stages 1 and 2 integration could be integrated as early
as December 11, 2001. However, a more likely scenario would be for
China's integration of benefits for Stages 1, 2 and 3 to take effect
on January 1, 2002.
Categories Expected To Be Completely Integrated On January 1,
2002
As a result of the integration schedule, the following 31 categories
are expected to be completely integrated on January 1, 2002: Categories
222, 223, 350, 431, 464, 600, 606, 607, 621, 622, 649, 650, 670,
800, 810, 831, 833, 834, 835, 836, 838, 840, 842, 843, 844, 847,
850, 851, 858, 870, and 871.
In addition, the following 10 categories will be partially integrated
on January 1, 2002: 331, 369†, 469†, 659†, 669*,
359†, 459†, 631, 666, 859*. Categories designated
with † had some of their HTS numbers integrated in 1998, and
be further integrated on January 1, 2002, the remainder of their
HTS numbers will be integrated on January 1, 2005. Categories marked
with an * were partially integrated on January 1, 1998, and are
expected to have the balance of their HTS numbers integrated on
January 1, 2002. The complete list of 2001 Harmonized Tariff Schedule
classifications is available is available for referencing these
partially integrated categories. Please feel free to contact us
if you would like to receive a copy.
No Visas Required For Stage-Three Integrated Items
The CITA has explicitly stated that visa requirements will not be
maintained on textiles and textile products integrated on January
1, 2002 that are produced or manufactured in a WTO Member country.
There had been questions on this issue, since visas were still required
for one year after the date of the Stage 2 integration. However,
we note that export visas will continue to be required for the following
types of textile and textile products:
-
non-integrated products;
- products
integrated on January 1, 2002 produced or manufactured in a country
that is not a Member of the World Trade Organization; and
- for
products integrated on January 1, 2002 that were exported prior
to that date.
Determining
Whether Your Imported Products Will Become Quota-Free
The process for an importer to determine whether his products will
become quota-free is a somewhat cumbersome process. Importers must
utilize the 1994 product descriptions (with accompanying 1990 HTS
numbers) as published by the Office of Textiles and Apparel, in
order to determine whether their imported articles will become quota-free
on January 1, 2002.
Presently, the Committee for the Implementation of Textiles and
Apparel (CITA) has not compiled a list of 2001 HTS numbers with
the respective quota categories to be integrated under Stage 3.
It is not expected that this list will be available until the year-end,
or at the beginning of 2002.
If you require assistance with regard to determining whether your
product, currently subject to quota, will be integrated under Stage
3, please do not hesitate to contact us.
If you would like additional information concerning any of the above
issues, please contact Stephen S. Spraitzar at (415)
968-8780, (or via email at sss@tuttlelaw.com).
Copyright
© 2001
by Tuttle Law Offices.
All
rights reserved. Information has been obtained from sources believed
to be reliable. However, because of the possibility of human or
mechanical error by our offices or by others, we do not guarantee
the accuracy, adequacy, or completeness of any information and are
not responsible for any errors, omissions, or for the results obtained
from the use of such information.
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