DGTI releases details of EU unblocking of Chinese textiles for exporters

13 Sep '05

5 min read

Ref. : CR EIC 230/2/1/1/1 13 September 2005

Dear Sirs,

Commercial Information Circular No. 372/2005
Notice to Exporters: Series 2 (EU) No. 19/2005

European Union (EU)1 : Establishment of Transitional Flexibility Measures on the EU/Mainland Memorandum of Understanding (MOU)

The EU and the Mainland have reached an agreement to unblock the textiles imports from the Mainland sitting on the EU ports due to rapid exhaustion of quotas previously agreed by the EU/Mainland in June 2005. This circular informs traders of the agreed arrangements.

Details

The problem of stranded textiles shipments has surfaced shortly after signing of the EU/Mainland Memorandum of Understanding (MOU) on 10 June 2005 to limit the export of certain Chinese textiles and clothing (T&C) products into the EU. This is because quotas for most of the 10 categories of restrained items have been filled or exceeded the agreed quota limits2 . To resolve the blockage problem, the two sides reached an agreement on 5 September 2005, which has subsequently been endorsed by the EU Member States. Accordingly, import licences will be issued to release the blocked goods as soon as the EU Regulation comes into force on 14 September 2005.

The European Commission (EC) has issued a notice with the following implementation arrangements as agreed with the Mainland on 5 September.

Each party will be responsible for the quantities of goods that have beenlicensed by that party. The EU will release the goods in accordance with the licences issued by both parties.