Home / Knowledge / News / Apparel/Garments / EU drops extra import tax on US jeans
EU drops extra import tax on US jeans
27
Mar '14
Effective May 1, the European Union will drop a 26% retaliatory tax on women’s jeans made in the U.S. to 0.35%.
 
This move will lower the EU duty rate on such jeans to 12.35% a year after it saw a significant increase in an ongoing trade dispute.
 
The duty rate hike on jeans was part of a continuation of sanctions authorized by the World Trade Organization in retaliation for the United States’ failure to fully comply with a WTO ruling against the Continued Dumping and Subsidy Offset Act of 2000, Commonly referred to as the Byrd Amendment, this law allowed the U.S. to distribute antidumping and countervailing duties collected on foreign-made goods to affected domestic industries. The law was found to violate WTO rules and subsequently repealed, but distributions were allowed to continue for cases initiated prior to the repeal.
 
In response, the WTO allows each affected country to raise its tariffs on goods imported from the U.S. in direct relation to the amount of AD and/or CV duties on goods from that country that were distributed during the previous year. 
 
When the amount distributed in 2012 with respect to EU goods spiked, so did the value of U.S. exports the EU could target, prompting Brussels to add women’s jeans to the retaliation list for 2013. However, distributions in 2013 decreased by nearly half of the 2012 amount, resulting in the drastic reduction of the retaliatory tariffs on jeans and other goods.
 
Sandler, Travis & Rosenberg, P.A., has been actively working since the EU imposed the tariff hike to obtain relief for affected U.S. manufacturers. For example, the United Kingdom’s customs and tax department accepted a legal argument crafted by ST&R attorney Elise Shibles that certain jeans, despite being made of denim as that term is used in the apparel industry, do not fall within the legal definition of denim under the Harmonized Tariff Schedule because the dye used to make them is not colorfast. 
 
The alternative classification of the subject jeans is only subject to the basic 12% tariff. Shibles, along with the Warsaw-based EU office of Sandler & Travis Trade Advisory Services, Inc. has since been helping U.S. jeans makers that had been paying the higher 38% duty to secure refunds.
 

Sandler, Travis & Rosenberg, P.A

Must ReadView All

Apparel/Garments | On 29th Jul 2016

Q2FY17 income from operations triples at Dixie Group

Income from continuing operations at the Dixie Group for the second...

Courtesy: YFA Tradeshow

Textiles | On 29th Jul 2016

Chinese Pavilion to be highlight of YFA 2016 Show

A Chinese Pavilion will be the highlight of the upcoming second...

Courtesy: India ITME Society

Textiles | On 29th Jul 2016

Bangladesh hopes for better trade ties with India

Bangladesh’s Minister of State for Textiles & Jute Mirza Azam said he ...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
June 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search