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Apparel trade under Korea-US FTA being reviewed
Feb '16
The International Trade Administration will accept till March 7, comments on the information collections associated with the interim textile and apparel short supply and safeguard procedures under the US-Korea Free Trade Agreement, Sandler & Travis Trade Advisory Services Inc. (STTAS), the world's largest customs and international trade services provider, has said.

The FTA provides for the establishment of a list of specific fibers, yarns and fabrics that are not available in commercial quantities in a timely manner from producers in the US or Korea. Textile and apparel articles containing these inputs are entitled to duty-free or preferential duty treatment despite not being produced in the US or Korea.

Interested entities from Korea or the US have the right to request that a specific fibre, yarn or fabric be added to, or removed from, the list of commercially unavailable fabrics, yarns and fibres.

The Committee for the Implementation of Textile Agreement (CITA) collects information about fiber, yarn or fabric technical specifications and the production capabilities of US textile producers to determine whether certain fibres, yarns or fabrics are available in commercial quantities in a timely manner, STTAS said.

The textile and apparel safeguard mechanism applies when, as a result of the reduction or elimination of a customs duty under the FTA, a Korean textile or apparel article is being imported into the US in such increased quantities and under such conditions as to cause serious damage or actual threat thereof to a US industry producing a like or directly competitive article. In these circumstances, the US may suspend any further reduction in the rate of duty imposed on the article, or increase duties on the imported article from Korea to a level that does not exceed the lesser of the prevailing US normal trade relations/most-favored-nation duty rate for the article or the US NTR/MFN duty rate in effect on the day before the FTA entered into force.

CITA collects information to determine whether a domestic textile or apparel industry is being adversely impacted by imports of textile or apparel products from Korea, thereby allowing it to take corrective action. (SH)

Fibre2Fashion News Desk – India

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