20.6.2005China Announces Textile Export Interim Control Measures
The Ministry of Commerce (MOFCOM) announced the Interim Measures for the Administration of Textile Exports (Trial Implementation) on 19 June 2005, which will take effect on 20 July.
In accordance with the new measures, MOFCOM will compile a Catalogue of Commodities Subject to Textile Export Interim Control. Commodities under the following categories will be included into the catalogue:
(1) Textile products subject to restrictions imposed against China by the countries or regions concerned.
(2) Textile products subject to temporary quantitative control under bilateral agreements.
The quantity allowed to be exported under provisional export quotas will be based on the export value of the relevant products and will be calculated according to the following formula:
S = T x [a1 x (70% x Q1/M1 + 30% x Q2/M2) + a2 x Q3/M3]
Where:
(1) S is the quantity allowed for application;
(2) T is the total volume of provisional export quotas for the whole country;
(3) Q1 is the trader's export value to the country or region imposing the quota after 1 January 2005, Q2 is the trader's global export value to countries/regions other than the country/region imposing the quota (Q1 not equal to 0) after 1 January 2005, and Q3 is the trader's global export value for the period before 1 January 2005 within the time coverage of statistics (time coverage of statistics is 12 months prior to the implementation of export quota);
(4) M1 is the export value of all traders to the country or region imposing the quota after 1 January 2005, M2 is the global export value of all (Q1 not equal to 0) traders to countries/regions other than the country/region imposing the quota after 1 January 2005, and M3 is the global export value of all traders in the country during the time coverage of statistics before 1 January 2005.
(5) a1 is export weight after 1 January 2005 and a2 is export weight before 1 January 2005, with a1 = 0.7 and a2 = 0.3.
For commodities subject to control for over one year, MOFCOM will, starting from the second year, allocate 5% of the total quotas each year to support new traders who have not been granted the amounts they applied for.
One provisional export licence is issued for each batch of goods and each customs declaration and is valid for six months within each calendar year, after which it will no longer be valid. The licence is non-transferable, not for sale and may not be forged or altered.
MOFCOM determines the categories and quantities of commodities open for application by traders on the principle of distribution and will notify the local departments of commerce in written or electronic format within 30 days of the publication of the catalogue. Such information will also be posted on MOFCOM's website. Traders granted an amount for export may submit their application to the local department of commerce within the scope of the categories and quantities specified by MOFCOM.
For details of the new measures, please visit the website of MOFCOM at:
http://www.mofcom.gov.cn/aarticle/b/c/200506/20050600123519.html
