24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : CR EIC 230/2/1/1/1

14 July 2005

Dear Sirs,

Commercial Information Circular No. 259/2005

Notice to Exporters: Series 2 (EU) No. 16/2005

European Union (EU)¹ : Import Arrangement for Chinese Textiles and Clothing Products under the EU/Mainland Memorandum of Understanding

Further to the Commercial Information Circular No. 224/2005 cum Notice to Exporters: Series 2 (EU) No. 15/2005 all dated 25 June 2005, the EU Regulation for the implementation of the EU/Mainland Memorandum of Understanding (MOU) has entered into force with effect from 12 July 2005. The applicable import arrangements for the 10 categories of Chinese textiles and clothing (T&C) products subject to quantitative limits under the EU/Mainland MOU are as follows: 

1. Goods shipped before 11 June 2005: they are not subject to any limitations under the EU/Mainland MOU, and import licence will be issued automatically, upon adequate proof such as bills of lading and the presentation of a signed declaration by the importer. Alternatively, such goods can also be released into free circulation upon presentation of the automatic import licensing document (i.e. surveillance document) that may have already been issued.
   
   
2. Goods shipped between 11 June 2005 and 12 July 2005: import licence will be issued automatically and cannot be denied on the grounds that there are no balance quantities available within the 2005 limits. Such imports will however be counted against the quantitative limits for the remainder of 2005.
   
   
3. Goods shipped after 12 July 2005 and before the Chinese system of export licensing is operational (scheduled for 20 July 2005): they will be subject to import licence² and counted against the agreed limits. Import licence will be denied in case the agreed quota levels have been exceeded. 
   
   
4. Goods shipped from the date when the Chinese export licensing system is operational (scheduled for 20 July 2005): Member States of the EU would issue import licence only upon presentation of the corresponding valid export licence issued by the Mainland, subject to the availability of unused quantities. 
   
   

2. With the entry into force of the EU Regulation on 12 July 2005, applications for import licences covering goods that are shipped between 11 June 2005 and 19 July 2005 (inclusive) have to be presented to the competent authorities of Member States no later than 15 August 2005.
   
   
3. Separately, the European Commission has published a notice announcing the termination of the safeguard investigation in relation to the nine categories of Chinese T&C imports which had been initiated on 29 April 2005. Among the nine categories, six are included in the EU/Mainland MOU (i.e. T-shirts (category 4), pullovers (category 5), trousers (category 6), blouses (category 7), brassieres (category 31) and flax or ramie yarn (category 115)). The remaining three product categories outside the MOU are stockings and socks (Category 12), women's overcoats (Category 15) and woven fabrics flax (Category 117). 
   
   
4. The EU Regulation and the Notice of termination of safeguard investigation are respectively accessible from the EU website at :
   
   http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_177/l_17720050709en00190026.pdf and http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/c_170/c_17020050709en00090010.pdf

Enquiries

5. For enquiries concerning the content of this circular, please contact the undersigned at 2398 5427.

Yours faithfully,



(Miss Sheree FU)

for Director-General of Trade and Industry

1.The EU includes Austria, Belgium, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden and the United Kingdom. 

2.The granting of import licence will not require the presentation of the corresponding export licence for goods shipped before the Mainland has put in place its export licensing system on 20 July 2005.

Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.