Commercial Information Circulars

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e-mail address : tidenq@tid.gcn.gov.hk

Ref : EIC 230/5/4/10

30 July 2002

Dear Sirs,

Commercial Information Circular No. 142/02

European Union (EU)^* : Proposal on Phasing Out Community Quotas Imposed on Certain Non-textile Products Originating in the Mainland of China

Further to Commercial Information Circular No. 91/2001 of 29 May 2001, the European Commission (EC) has issued a proposal^@ for a Council Regulation to provide for, inter alia, the progressive liberalisation of the Community quotas imposed on three categories of non-textile products (viz. certain footwear, porcelain or china tableware and kitchenware, and ceramic tableware or kitchenware) originating in the mainland of China. In accordance with the proposed liberalisation timetable, the Community quotas will be completely phased out by 2005.

DETAILS

2. In the light of China's accession to the World Trade Organisation, the EC recently proposed to liberalise the Community quotas and surveillance measures as follows -

   1. the surveillance measures on the imports of certain sensitive products^# from the mainland of China should be abolished;
       

   2. the quota levels for the three categories of non-textile products (as set out in paragraph 1) for 2003 and 2004 should be adjusted upward as shown in column (d) and (e) of the Annex (pdf fomrat) with complete removal of quotas in 2005;
       

   3. for 2002 of which the quotas have already been allocated in October 2001 based on their previous level (please refer to Commercial Information Circular No. 169/2001 of 1 November 2001 for details of the allocation), the level of each individual import licence will be automatically increased by a specified percentage as shown in column (c) of the Annex (pdf fomrat) . The EC will further establish the allocation method for the additional quantities resulting from the quota increase; and
       

   4. for 2003 and 2004, the general procedures established by Council Regulation (EC) No. 520/94⁺ for administering quantitative quotas will be applicable to the allocation of import licences for the quotas as shown in the  Annex (pdf fomrat) . The EC will further publish the specific implementation details.

3. The EC's proposal will be considered by the Council of the EU. We shall keep traders informed of the developments.

ENQUIRIES

4. For enquiries about the contents of this Circular, please contact the undersigned at telephone number 2398 5684.

Yours faithfully,

(Miss Sandra SOU)

for Director-General of Trade and Industry

* : The EU Member States are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.

@ : The EC proposal [COM(2002)342] for a Council Regulation on a transitional product-specific safeguard mechanism for imports originating in the People’s Republic of China and amending Council Regulation (EC) No. 519/94 on common rules for imports from certain third countries is available at the EC’s web-site (http://europa.eu.int/eur-lex/).

# : The surveillance measures were introduced by the EC in 1994 to keep imports of a variety of products originating in the Mainland of China, e.g. certain footwear, bicycles, toys, under closer observation in cases where the trend gave cause for concern but was of no immediate danger to the Community industry. Please refer to Commercial Information Circular No. 41/00 of 21 March 2000 for the full list of products subject to surveillance.

+ : Council Regulation (EC) No. 520/94 of 7 March 1994 establishing a Community procedure for administering quantitative quotas is available at the EC’s web-site (http://europa.eu.int/eur-lex/).