400 textiles products to attract higher export tariffs from June 1, says CTC

20 May '05

2 min read

The Customs Tariff Commission of the State Council of China (CTC) will raise export tariffs on 74 textile goods effective June 1, 2005, said the Chinese Cabinet, following Government's approval.

With this 74 different textile products will attract about 400 percent export tariff hike, which were imposed partially from Jan. 1 this year.

The above action on China's is read to circumvent attracting further adverse action from the US which has already imposed caps on textile products imports from China categories like shirts, underwears, knitwear etc.

Even less than a span of a fortnight back, the US administration slapped restrictions to the tune of 7.5 percent on these products after four categories of textiles were put under restrictions to now make them to eight, which they claimed, disrupted local markets and raised jobloss fears.

The European Union has already put Chinese textiles under scanner for disruptions with Germany, Spain and Italy seeking sanctions against cheap Chinese textile and apparel imports that have affaected the local markets adversely.

Meanwhile, the Commission also announced imposition of export tariffs on flax yarn, reduction of that on three varieties of briefs and shorts, and the abolition of that on knitted garment accessories, the communiqué said.

Currently, export tariffs ranging 2 and 4 percent on 148 categories of textile and clothing exports, including coats and skirts has been implementedsince January 1, 2005 when the expiry of WTO authorised quotas came in to effect.
since January 1, 2005 when the expiry of WTO authorised quotas came in to effect.

The action by the Customs department is preventive in nature and may slowdown the surge in Chinese exports to the US and the EU but what situation the textile producers of the country will face following this action, is yet to be acertained.

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