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 The law was found to violate WTO rules and subsequently repealed, but distributions were allowed to continue for cases initiated prior to the repeal.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

Pic: Shutterstock

Textiles | On 15th Jan 2021

US detains cotton products from China's XUAR from Jan 13

US Customs and Border Protection (CBP) recently announced it will...

Pic: Christopher & Banks Corporation

Retail | On 15th Jan 2021

CBKC in US voluntarily files for bankruptcy protection

US specialty women's apparel retailer Christopher & Banks Corporation ...

Pic: Shutterstock

Textiles | On 15th Jan 2021

Hanoi to allocate more than $41 million to support SMEs

Hanoi will allocate VND957 billion (more than $41 million) to assist...

Interviews View All

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Mehul Vithalani,

Mehul Vithalani

Gopi Knitts is one of the most celebrated manufacturers and suppliers of...

Jos Notermans,

Jos Notermans

SPGPrints is a global provider of integrated solutions for rotary screen...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

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

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

Leave your Comments


January 2021

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


Advanced Search