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12/ 17/07 |
Customs to Impose Penalties in Exchange for New “No Detention”
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| December 14, 2006 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- October 12, 2006 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- January 06, 2006 TO OUR VALUED CLIENTS: We have just received the following information from the offices of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP regarding potential penalties for importers, as well as brokers, with respect to the new MID requirements. I strongly sugest you read through this bulletin and adhere to all the requirements which Customs is setting forth: I. Potential Penalties for Importers and Brokers as Customs Eliminates Textile Declarations, and Adopts New MID Requirements- On October 5, 2005, Customs and Border Protection published the following interim regulations in the Federal Register: 1. Elimination of Textile Declarations Effective October 5th, 2005, Customs has eliminated the requirement that a textile declaration be submitted for all importations of textile and apparel products from all countries (including China as well as non-WTO members such as Vietnam). This applies to textile and apparel products classifiable in HTS Chapters 50 through 63 as well as luggage, handbags, hats and certain footwear. 2. Changes to Manufacturer Identification Code (""MID"") Requirements Also effective October 5, 2005, Customs is now requiring importers of textile and apparel goods to provide an MID code which is derived from the name and address of the entity (i.e., factory) performing the origin-conferring process. Trading companies, sellers other than manufacturers, etc. cannot be used to create MIDs. This code must be included on Form 3461 (Entry/Immediate Delivery), Form 7501 (Entry Summary), and in all electronic data transmissions that require identification of the manufacturer. In addition, if an entry is filed containing products from more than one manufacturer, the products of each manufacturer must be identified. Entries and entry summaries in which the first two characters of the MID do not meet the country of origin ISO code, or are created from a company that is known to be a trading house or agent and not a manufacturer, will be rejected for failure to properly construct a MID. Customs advises that repetitive errors in the construction of MIDs for entries of textile or apparel products will result in the assessment of broker and importer penalties for failure to exercise reasonable care. Importers should re-examine letter of credit and import documentation requirements to insure that the seller is providing the ""origin conferring"" factory name and address for each imported item. 3. Enforcement Customs began enforcing these new rules for goods entered on or after November 19, 2005. Customs expects importers and brokers to exercise reasonable care in creating and reporting correct MID numbers on textile entries on the goods described above. Brokers and importers must be aware of these new rules, and must document their compliance efforts to ensure that correct MID numbers are reported in the entry. Where incorrect MID numbers are reported, it could place the importer and the broker at risk for penalties. Realistically, MID numbers are made to reflect the information contained in the sellers invoice. Brokers and importers should put their vendors/clients on notice that they should be advised when the shipping invoice does identify the origin conferring location. Importers have an affirmative obligation to contact vendors and identify the company and location where origin is conferred. If operations occur at more than one location they may have to perform a legal analysis to identify the origin conferring location.
Notice: Reporting MID Numbers
When entries are subject to ADD the importer must provide a certificate attesting to the fact that the ADD paid will not be reimbursed by the vendor. Failure to provide this certificate before entries are liquidated will result in double ADD assessments. (There are some variations in the rules based on the date of entry, but this rule applies to all entries filed on or after April 27, 1989). In the past, Customs has issued CF 28’’s when ADD entries did not include the requisite certificate. This notice provided an opportunity to file missing ADD certificates. Customs has announced that it will discontinue issuing these CF 28’’s, and that protests contesting double ADD assessments will be denied where the add certificate was not on hand at the time of limitation. It is recommended that brokers identify any unliquidated ADD entries and make sure that ADD certificates are on file. As usual the burden will be on the importer/broker to prove that the certificate was timely filed. If our office can be of any service in preparing your database, setting up systems, or in obtaining printouts of entries for your clients then please contact us." Should you require any additional information, please feel free to contact this office. Very truly yours, Bill Ortiz Executive Vice President Stile Associates Ltd. ----------------------------------------------------------------------------------------------------------------------- November 29, 2005 TO OUR VALUED CLIENTS: Hong Kong Trade Development Council and the Shanghai Daily 28.11.2005 First Bidding for 2006 Textile Quotas for Export to the US The Textile Quota Bidding Committee of the Ministry of Commerce (MOFCOM) issued a Notice on the First Bidding for 2006 Textile Quotas for Export to the US on 25 November 2005. The total amount available for bidding in 2006 will be 30% of the agreed export volume. The first bidding will cover 60% of this total. The first bidding will take place between 08:00 on 6 December and 24:00 on 8 December 2005. Closing time for submitting bids is 24:00 on 8 December and the time for opening the bids is 10:00 on 9 December. The bidding will be conducted electronically at http://www.stileintl.com/www.ec.com.cn and no written applications are accepted. Please refer to MOFCOM's notice for arrangements regarding online bidding. Any enterprise meeting the qualifications for conducting export under the Implementing Rules for the Bidding of Textile Export Quotas, registered with the industrial and commercial administration departments, and with global export performance in relevant categories between January and September 2005, is eligible for submitting bids. For details of the bidding process and the list of enterprises passing
the preliminary examination, please visit MOFCOM's website in Chinese
at: For details of the Implementing Rules for the Bidding of Textile Export
Quotas, please visit MOFCOM's website in Chinese at: Shanghai Daily.Com 11-29-08 US textile quota bids to come in December Chen Liying 2005-11-29 Beijing Time CHINA will allow its textile exporters to begin bidding on next year's US quotas early next month, a move that follows a deal signed earlier this month to reimpose quotas on 21 categories of Chinese textile shipments to the United States. The online auction, constituting 60 percent of all quotas set for public bidding for next year, will run from 8am on December 6 through midnight December 8, China's Ministry of Commerce said on its Website. All companies that have exported the covered products from January to September this year can participate in the auction. Quotas in each product category will be awarded to the high bidders, the ministry said. Results will be released on December 9. China set aside 30 percent of next year's quotas for public bidding. The rest will be allocated to exporters based on their performance in the past year. To secure a market-oriented result, the ministry said it will not consider bids that offer exceptionally high prices. The minimum bid levels range from 0.10 yuan (12 US cents) to 1 yuan per 1,000 kilograms and from 0.2 yuan per dozen to 12 yuan per dozen, depending on the product, the ministry said. China and the United States agreed on November 8 to restrict exports of 21 categories of Chinese textiles for three years starting next year, including cotton pants, knitwear, socks and bras. The accord caps the annual growth of Chinese textile exports to the US at 10 percent to 17 percent for the coming three years. The annual growth limit for 2006 is between 10 percent and 15 percent. The deal was widely hailed by domestic clothing exporters because it settled a nearly half-year trade dispute that caused a halt in shipments of some textiles, and it offered a predictable trade environment for their future business. Lu Longsheng, general manager of Shanghai Flying Horse Import and Export Trade Co, said competition for US quotas will be more contested than for EU quotas because there are more participants. "Over 28,000 companies are qualified for the bidding, which is 7,000 more than for the EU bidding," he said. China's textile exports jumped 22 percent to US$55 billion in the first nine months of this year, according to Chinese Customs figures. The country posted a record US$162 billion trade surplus with the United States last year. Should you have any questions, please feel free to contact this office. Very truly yours, Bill Ortiz Executive Vice President Stile Associates Ltd. ----------------------------------------------------------------------------------------------------------------------- November 23, 2005 TO OUR VALUED CLIENTS: "CITA has decided not to implement quotas in response to any pending safeguard petitions, e.g., sleepwear (cat. 351/651), women's' and girls' woven shirts and blouses (cat. 341/641), etc. Accordingly, only those categories covered by the agreement will be subject to quota until such time as new petitions are filed, accepted and result in further requests for consultations. We will continue to monitor developments and advise should any new petitions be filed next year." Should you require any additional information, please feel free to contact this office. Very truly yours, Bill Ortiz Executive Vice President Stile Associates Ltd. ----------------------------------------------------------------------------------------------------------------------- November 23, 2005 TO OUR VALUED CLIENTS:
Should you require any additional information, please feel free to contact
this office. ----------------------------------------------------------------------------------------------------------------------- November 10, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- November 10, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- November 09, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- November 09, 2005 TO OUR VALUED CLIENTS: Should you have any questions, please feel free to
contact this office. ----------------------------------------------------------------------------------------------------------------------- November 07, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- November 03, 2005 TO OUR VALUED CLIENTS: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- October 14, 2005 TO OUR VALUED CLIENTS: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- October 14, 2005 TO OUR VALUED CLIENTS: Should you have any questions, please feel free to contact this office. Very truly yours, ----------------------------------------------------------------------------------------------------------------------- October 07, 2005 TO OUR VALUED CLIENTS: In our ongoing effort to keep you updated regarding the China quota situation, please see the following information which was received from CITA. The below listed categories, which we mentioned in our previous newsletters, have been considered to be "threat based"; therefore, CITA will probably make a decision by the end of this year to enact quotas for these categories. The quotas would likely be effective in early 2006:
In addition, CITA has taken the following categories into consideration as being "threat based" and they may also have quotas in place by early 2006, if not sooner:
Should you require any additional information, please feel free to contact this office. Very truly yours, Bill Ortiz ----------------------------------------------------------------------------------------------------------------------- October 06, 2005 TO OUR VALUED CLIENTS: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- October 03, 2005 TO OUR VALUED CLIENTS:
Should you have any questions, please feel free to
contact this office. ----------------------------------------------------------------------------------------------------------------------- September 29, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- September 16, 2005 To Our Valued Clients: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- September 14, 2005 To Our Valued Clients:
CITA has 15 working days (October 5) to decide whether or not to accept these petitions. If accepted, a 30 day public comment period would follow." Should you have any questions, please feel free to contact this office. Very truly yours, ----------------------------------------------------------------------------------------------------------------------- September 14, 2005 To Our Valued Clients: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- September 01, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- August 04, 2005 TO OUR VALUED CLIENTS: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- August 04, 2005 TO OUR VALUED CLIENTS: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- August 01, 2005 To Our Valued Clients: Please click the following link, CITA has today announced that it is extending, until August 31, 2005, the time period for consideration of whether to request quota consultations with China vis-à-vis the following categories:
In a separate development, CITA also announced that it has agreed to accept for consideration requests for safeguard quota action on the following product categories:
Please do not hesitate to contact us with any questions or to discuss the impact these developments may have upon your company. Regards, ----------------------------------------------------------------------------------------------------------------------- July 21, 2005 To Our Valued Clients: ----------------------------------------------------------------------------------------------------------------------- July 15, 2005 TO OUR VALUED CLIENTS: Very truly yours, ----------------------------------------------------------------------------------------------------------------------- July 13, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- July 12, 2005 TO OUR VALUED CLIENTS:
Should you have any questions, please feel free to
contact this office. ----------------------------------------------------------------------------------------------------------------------- July 8, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- June 24, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- June 16, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- June 07, 2005 TO OUR VALUED CLIENTS: ----------------------------------------------------------------------------------------------------------------------- June 02, 2005 TO OUR VALUED CLIENTS: Now may be a good time to re-visit the important issue of transshipments. As many of you know, CITA has imposed safeguard quotas on Chinese textiles and apparel goods. These safeguard quotas may provide incentives for dishonest suppliers to transship goods through other countries (including countries in which we have negotiated free trade agreements) in order to ensure that their sales to the U.S. will remain unaffected. Certain overseas entities had become adept at transshipment techniques during the last 2-3 years of the quota regime, as you no doubt know. Transshipment occurs when, for example, goods that are made in China are shipped through other countries prior to shipment to the U.S., and are falsely labeled/documented so that they appear to have originated from those other countries. Importers should carefully investigate any hints of changes in production location outside of China because U.S. Customs and Border Protection will be on the lookout for possible transshipment, particularly from Asia (Hong Kong, Macau, Nepal, Mongolia, Uzbekistan, Kazakhstan and countries in S.E. Asia), Mexico and Central American and Caribbean countries (including FTA-eligible countries where duty avoidance would result as well), and other points such as, but not limited to, Lesotho, Swaziland, UAE, Qatar, etc. Customs will expect importers to have compliance procedures in place to ensure that transshipment does not occur. *(Please see below for an excerpt from the the Customs Informed Compliance Manual, "Reasonable Care, A Checklist for Compliance") There is a likelihood that merchandise subject to the new quotas will be transshipped in an effort to avoid the restriction. It is clear that U.S. Customs, in expectance of transshipping, will increase scrutiny of shipments of quota merchandise and examine a higher percentage of those shipments. It is very important that importers do not knowingly engage in or sanction transshipment so that, if Customs determines that the goods were actually transshipped, the importer only loses the goods (due to seizure) and is not exposed to penalties and other Customs enforcement action. However, as you know, lengthy detentions alone pose an enormous risk to your flow of goods, and in order to minimize the damage and exposure once goods are detained, it is important to respond proactively and quickly: for example, through on-site inspections and document verification. Importers should exercise caution if a supplier: 1. changes the country of production without the prior approval of the importer, or requests approval for such a change; 2. claims to produce merchandise in a country which has no history of production of such merchandise; 3. is reluctant to provide specific details concerning the manufacturing site (its' capacity, location etc.); 4. does not permit the importer to inspect/review its goods during their production; or 5. refuses to identify any subcontractor. It is important for importers to take whatever measures are necessary to inspect the goods during production to ensure that the goods were made in the country claimed by the supplier to be the country of origin. In other words, importers should confirm that no portion of the goods were made in China. Transshipment can occur through any country. Countries that have historically been used as transshipment points for Chinese textile goods are: a. Uzbekistan, Kazakhstan, Mongolia, Nepal; b. Panama and other Central American and Caribbean countries; c. Lesotho, Swaziland and other sub-Saharan African countries; d. United Arab Emirates, Qatar and other Middle Eastern countries. Perhaps, most importantly, a prudent importer has to be particularly wary if they are purchasing on a landed duty-paid basis, or under other circumstances where the importer does not control the entry documentation and, in many cases, does not see the entry documents. Along the same lines, it is tempting for U.S. buyers to think that if they are not the importer of record, they are not liable for transshipment. However, Customs will impose liability if they determine that the U.S. buyer had any knowledge or control over the transaction, regardless of the fact that the buyer was not the importer of record. Moreover, the costs of defending a transshipment allegation, not to mention the loss of time caused by the detention itself, should be sufficient incentive for importers to carefully monitor these ways of doing business. The only way to prevent transshipment, regardless of whether you are the actual importer, is for you or your agent to inspect the goods during the production process so that you can be sure that the goods were made in the claimed country of origin. Simply put, there is nothing wrong with importing from Uzbekistan, etc., if you know that each lot of your merchandise was actually produced there. In the unfortunate event that your goods are detained by U.S. Customs on suspicion of transshipment, it is important to act IMMEDIATELY to defend the action and protect your interests. Customs requires an enormous amount of paperwork to establish the actual country of origin of suspect shipments. Quick action by the importer is not only the most effective but also the least expensive remedy. * Customs states that in meeting the reasonable care standard when importing textile or apparel products an importer should, among other things, consider the following questions in attempting to ensure that the documentation, packaging and labeling is accurate as to the country of origin. 1. Has the importer had a prior relationship with the named party? 2. Has the importer had any detentions and/or seizures of textiles or apparel that were directly or indirectly produced, supplied or transported by the named party? 3. Has the importer visited the company's premises and determined the company has the capacity to produce the merchandise? 4. When a claim of an origin conferring process has been made, has the importer determined the named party ACTUALLY PERFORMED the required process? 5. Is the named party operating from the same country as represented on the documentation, packaging or labeling? 6. What is the status of any quotas on the merchandise? Are they at or near closing? 7. What is the history of the country regarding this merchandise? 8. Have you questioned your supplier with regard to the origin? 9. Have you scrutinized the documentation that would call its authenticity into question? Please make certain that everyone in your organization who is involved in importing, ordering, and/ or buying from your overseas suppliers is made aware of this situation and understands the importance of avoiding any possibility of transshipments. Should you have any questions, please feel free to contact this office. Bill Ortiz Executive Vice President Stile Associates Ltd. ----------------------------------------------------------------------------------------------------------------------- May 27, 2005 To Our Valued Clients: Please be advised that the United States has requested quota consultations with China for the following categories: 301, 340/640, 638/639 and 647/648. As a result any shipment exported on or after May 27, 2005 will be subject to quota. The quota period will run from May 27, 2005 through December 31, 2005. As in the past no visa or export license or electronic transmission (elvis) will be required. Please see listed below the quota categories along with their fill rates.
Should you have any questions regarding the aforementioned, please do not hesitate to contact this office and as usual we will keep you up to date with any new developments that may arise. ----------------------------------------------------------------------------------------------------------------------- May 25, 2005 ----------------------------------------------------------------------------------------------------------------------- Volume 9, Issue 2 May 24, 2005 PierPASS program begins accepting applications for West Coast Ports The PierPASS program affecting imported containers
on the West Coast began accepting registrations today. The program has
been established to entice importers to have their containers picked up
from the steamship company’s yard during off-peak hours, and covers all
ports on the West Coast. Memorial Day ----------------------------------------------------------------------------------------------------------------------- May 23, 2005 ----------------------------------------------------------------------------------------------------------------------- May 23, 2005 TO OUR VALUED CLIENTS: Pursuant to our previous Valued Client letter with respect to the Chinese Safeguards. The following are the quota limits that Customs has posted as to the fill rate:
----------------------------------------------------------------------------------------------------------------------- May 23, 2005 TO OUR VALUED CLIENTS: The Administration reportedly formally delivered the consultation requests for 338/339, 347/348, and 352/652 today so the effective quota will be from May 23 to December 31, 2005. The U.S. Customs Service will start recording all dozens that are submitted on the brokers entries as of 5/23/05. BASED UPON THE IMPOSITION OF THESE SAFEGUARDS EARLIER THAN EXPECTED AND FILL RATES HIGHER THAN USED FOR PROJECTIONS, YOU SHOULD EXPECT EMBARGOES BY THE WEEK OF JULY 4TH 2005. PLEASE NOTE THAT THESE ARE JUST ESTIMATES BASED UPON THE GOVERNMENTS PROJECTIONS. We will keep you updated as soon as new information becomes available. If you have any questions feel free to contact us. -------------------------------------------------------------------------------------------------- May 19, 2005 To: Our Valued Clients
Once again, we have no anticipated date as to when, and if, the quota will go into effect but we will continue to monitor the situation and keep you apprized.
-------------------------------------------------------------------------------------------------- May 16, 2005 TO OUR VALUED CLIENTS: -------------------------------------------------------------------------------------------------- Volume 9, Issue 1 May 9, 2005 New program planned to ease congestion at West Coast Ports The West Coast ports, Los Angeles/Long Beach in particular,
have seen a steady increase in containers arriving over the past several
years. The increase of approximately 15% of imported containers yearly
has caused freeway congestion in and around the ports, long waits for
truckers to pick up containers, and poor air quality. The West Coast terminal operators are now addressing
the problem internally and are testing a new program. PierPASS is in the
testing phase now to ease truck congestion in the port area during peak
hours of 8 AM/5 PM, Monday through Friday. At the present time PierPASS
is scheduled to be operational on July 1st but that date will most likely
be pushed back. Affiliated Computer Services is the technology company
hired by the terminal operators to develop software for PierPASS. They
are still not set up for importers to register for the program. -------------------------------------------------------------------------------------------------- TO OUR VALUED CLIENTS: -------------------------------------------------------------------------------------------------- April 28, 2005 To Our Valued Clients: Following is latest news received from Alan G. Lebowitz, Esq. from the law firm of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt, LLP: Earlier today, the Federal Circuit Court of Appeals stayed the preliminary injunction issued by the Court of International Trade last December against so-called threat based petitions. Thus, CITA is free to again consider the 12 threat-based petitions filed during the last quarter of 2004 - unless this same court eventually issues a final decision endorsing the issuance of preliminary injunctions. In this regard, oral argument on the Government’s appeal of the preliminary injunction is scheduled for next week. If the preliminary petition is dissolved, today's development could have several potential consequences. First, new quotas could be in place sooner, i.e., within a few weeks rather than a month or two. In most cases, an earlier effective date translates into a smaller quota base limit. Second, if threat based petitions again become "legitimate", it is less likely that there will be a lengthy quota free period at the beginning of the next quota year. That is, threat based petitions could be filed during the 4th quarter of 2005 resulting in 2006 quotas becoming effective in Jan. or Feb. of 2006. In contrast, if domestic industry had to wait three months to capture actual 2006 import data before filing petitions, 2006 quotas would not likely be effective before May or June of 2006, at the earliest William Ortiz -------------------------------------------------------------------------------------------------- April 26, 2005 To Our Valued Clients: In anticipation of possible quota safeguard/embargoes, CITA has warned the importing community that, if quotas are re-established and are filled anytime during the calendar year 2005, affected categories will be subject to staged entry upon re-opening in 2006. Example: category 339/338 fills on October 10, 2005. Normally, category would re-open on January 1, 2006, but it will not re-open until February 1, 2006 and, depending on the volume of merchandise being stored in U.S. warehouses, CITA will allow only 5% per month of the applicable safeguard limit that was established in 2005. As soon as any additional information is received regarding the actual implementation of safeguard quotas, we will advise you. Very truly yours, -------------------------------------------------------------------------------------------------- ASIAN BUSINESS NEWS China May Sharply Raise Tariffs By MEI FONG April 20, 2005; Page A2 HONG KONG - China is set to impose sharply higher tariffs on textile exports to try to head off a protectionist backlash in overseas markets as its garment sales soar, manufacturers and retailers say. Janet Fox, international merchandising director for J.C. Penney Corp., one of the biggest importers of textiles and apparel in the U.S., said she expected Beijing would raise duties to as much as 50 U.S. cents per item from between two and three cents, and the tariffs could kick in as early as May 1. "Manufacturers will be hard hit," she said. Other people familiar with the matter said they had heard reports of similar tariff figures, which probably would hit categories where exports have jumped the most, such as shirts and cotton trousers. Officials from the China Chamber of Commerce for the Import and Export of Textiles yesterday declined to confirm or deny the reports. If implemented, such a move probably would rein in exports sharply by biting into garment makers' slim margins, and could even put some low-cost producers out of business, industry analysts said. The impact will be "huge," said Harry Lee, managing director of Hong Kong-based shirt maker TAL Apparel Ltd., which has manufacturing facilities in southern China. He said the expected move could raise TAL's export tariffs tenfold to about US$3.5 million each year. Chinese textile exports surged 29% in the first three months of the year compared with a year earlier, according to China's official Xinhua news agency, which didn't give a value. Sales took off, particularly to the U.S. and Europe, after a decades-old global quota system was scrapped last year. Global pressure for Beijing to rein in garment exports has intensified in recent weeks. But economists caution that export growth, while eye-catching, comes off a low base as China had relatively little U.S. or European market share in some garment categories before global quotas were lifted. In addition, although U.S. apparel and textile imports from China have risen sharply this year, total U.S. textile imports haven't. Analysts said this suggests that U.S. buyers are merely diverting purchases from other parts of the world to China, which might offer better logistical support or cheaper products. Curbing imports from China would do little to help the ailing U.S. textile and clothing industry, the analysts said. The overall U.S. trade deficit pushed to a monthly record in February of $61.04 billion, providing fuel to critics in Congress urging the U.S. administration to more aggressively combat unfair trading practices. Initially, Beijing brushed off foreign criticism and stridently asserted its rights to enjoy free trade in textiles. But it has softened its rhetoric in recent weeks following indications that the country could soon face fresh quotas and antidumping lawsuits. Jacqueline Peltier, president of the Foreign Trade Association, which represents the interests of the European industry, warned China-based manufacturers at a seminar in Hong Kong yesterday that the European Union could impose safeguard quotas soon. The European Commission said last week that it would decide by April 25 whether it would launch a process that could lead to curbs on Chinese imports, similar to a probe launched by the U.S. Commerce Department early this month. Industry analysts say Beijing also is considering a minimum pricing scheme and a self-restraint system among makers in which each company would agree to export set amounts based on an overall arrangement jointly agreed upon by Chinese authorities and companies. But unlike tariffs, such plans would be difficult to implement quickly. Existing tariffs, which Beijing pre-emptorily announced in December, have been criticized as inadequate. Raising export duties is "the best and quickest way for China to show it is proactive," says Willy Lin, vice chairman of the Hong Kong Textile Council. "Our target will be focused on export quantities, for which both administrative measures by government and self-restriction measures by corporations will be considered and carried out," said Cao Xinyu, vice chairman of the China Chamber of Commerce for the Import and Export of Textiles. Analysts say if export duties are raised a lot, manufacturers will likely divert some production to Hong Kong and Macau, where garment exports have plunged in recent months. Paul McKenzie, an analyst with CLSA Asia-Pacific Markets, said higher tariffs could encourage illegal trans-shipments and arrangements in which partially assembled pieces of clothing from China are shipped to other countries just to be tagged and finished. It was thought that the end of the quota system would reduce these kinds of inefficient and exp |