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More non-tariff barriers erected in import of yarns & fabrics

28
Nov '08

The economic meltdown and subsequent slowdown has brought in to focus protectionist measures taken by governments to protect their respective industries. The government of Argentina has continued to implement a range of non-tariff barriers designed to further shield domestic producers from foreign competition and minimize any negative trade-related effects derived from the on-going global financial crisis.

From amongst the main measures, is the increase in numbers of non-automatic licensing regime to cover a number of additional products of particular interest to domestic producers. This process effectively began on 23 October with an announcement by the Ministry of Economy and Production that the non-automatic licensing requirements for certain apparel and household goods would be expanded to cover such products as cotton trousers, t-shirts, socks, and men's and boys' knitted shirts, effective from 12 November.

More recently, the MEP amended the licensing requirements for footwear and has implemented new requirements for yarns and
fabrics.

Footwear:
The non-automatic licensing requirement for footwear has been amended by adding and deleting certain tariff lines. The new list includes products classified under NCM 6401.10.00, 6401.92.00, 6401.99.10, 6401.99.90, 6402.19.00, 6402.20.00, 6402.91.10, 6402.91.90, 6402.99.10, 6402.99.90, 6403.19.00, 6403.20.00, 6403.40.00, 6403.51.10, 6403.51.90, 6403.59.10, 6403.59.90, 6403.91.10, 6403.91.90, 6403.99.10, 6403.99.90, 6404.11.00, 6404.19.00, 6404.20.00, 6405.10.10, 6405.10.20, 6405.10.90, 6405.20.00 and 6405.90.00.

Footwear uppers classified under NCM 6406.10.00 are subject to a separate licensing requirement.

Yarns and fabrics:
The MEP has announced the establishment of non-automatic licensing requirements for certain yarns, fabrics, and machinery and tools imported into Argentina for consumption, effective from 30 November.

Covered yarns and fabrics are classified under NCM 5208.39.00 (except other twill fabrics), 5209.32.00, 5209.42.10, 5209.42.90, 5210.51.00, 5211.42.10, 5211.42.90, 5402.33.00 (only higher than 80 decitex and equal to or lower than 350 decitex), 5407.51.00, 5407.52.10, 5407.54.00, 5407.61.00 (except of yarns of different colours), 5407.82.00, 5407.84.00, 512.19.00, 5513.11.00, 5513.21.00, 5513.41.00, 6001.22.00, 6004.10.10, 6004.10.20, 6006.21.00, 6006.22.00, 6006.31.00 and 6006.32.00.

Import license applications may be submitted to the Import Directorate within the Under-secretariat for Commercial Policy and Management. The application form requires importers to disclose the importer's and exporter's name and address, a description and the tariff classification of the merchandise, the country of origin, the country where the merchandise was shipped, the total quantity to be imported and the FOB value of the merchandise.

The quantity and value declared on the import application may be no more than five percent higher or 10 percent lower than the quantity and value declared on the license application form. Import licenses will be valid for 60 days from their date of issuance and may not be transferred to another party.

The ministry advises that shipments of subject merchandise in a customs zone in Argentina or in transit to the country as of 30 November will be exempted from the licensing requirement. The ministry will be responsible for issuing exemption certificates to interested parties. Any exemptions for subject merchandise will lapse if an importer does not file an import application for that merchandise by 29 January 2009.

Fibre2fashion News Desk - India

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