MOC introduces online textile export license system

26 Dec '07

2 min read

In order to accelerate the exports to the European Union and take the full advantage of the quota expiry from the coming year, the Chinese Ministry of Commerce (MOC) has begun operating a new online textile export license system since yesterday.

The MOC and the General Customs Administration issued a circular according to which only qualified textile makers could apply to local MOC branches for export licenses.

To meet the export criteria, the traders must have a minimum registered capital of 500,000 yuan (US $68,250), at least two years of exporting experience and they must not have not violated any intellectual property or environmental protection laws.

Sources from Ministry of Commerce divulged that this online application system is created to act as a measure to control the unwanted surge of Chinese clothing exports to the EU market like the one in 2005.

When international textile quotas expired in January 2005, China flooded Europe with its low-priced exports which impelled the Chinese and EU Governments to sign the Memorandum of Understanding (MoU) on China-EU Textile Trade. Under this pact both the countries renewed quotas on China's textile exports to the EU in June 2005 till the end of 2007.

This year in September, together the nations agreed to set up a bilateral monitoring system for Chinese T-shirts, pullovers, men's trousers, blouses, dresses, bras, bed linens and flax yarn entering the EU market after the quotas end. This scrutiny will continue till the end of 2008, however, there will be no restrictions on quantity.

Experts believe that if this effort of bilateral monitoring system runs effortlessly, such methods can be adopted to deal with the Sino-US textile quota system, which will expire by the end of 2008.

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