CITA Issues Interim Procedures on Safeguard Action Requests Against KFTA Textiles and Apparel, Duties
The Committee for the Implementation of Textile Agreements has issued the interim procedures it will follow in considering requests from the public for textile and apparel safeguard actions, as provided for in the U.S.-Korea Free Trade Agreement Implementation Act. A safeguard action may be needed due to increased imports of a Korean textile or apparel product, under the terms of the KFTA, that damages or threatens to damage the U.S domestic industry.
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Written comments are due by April 18, 2012.
Suspend or increase duties if damage or threat of damage. The safeguard mechanism can be applied when, as a result of the reduction or elimination of a customs duty under the KFTA, a Korean textile or apparel article is being imported into the U.S. in such increased quantities, in absolute terms or relative to the domestic market for that article, and under such conditions as to cause serious damage or actual threat thereof to a U.S. industry producing a like or directly competitive article. In these circumstances, the U.S. may suspend KFTA duty reductions or increase duties to certain levels.
Relief for two years and possible 2 year extension. The import tariff relief is effective beginning on the date that the Committee determines that a safeguard is needed due to increased imports and damage. The initial period of import tariff relief will be two years. The Committee may extend the period of import relief for a period not more than two years if it determines that the continuation is necessary, and the domestic industry is in fact, making a positive adjustment to import competition.
U.S. to also provide compensation to Korea. If the United States provides relief to a domestic industry under the textile and apparel safeguard, it must provide Korea "mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the emergency action." Such concessions shall be limited to textile and apparel products, unless the United States and Korea agree otherwise. If the United States and Korea are unable to agree on trade liberalizing compensation, Korea may increase customs duties equivalently on U.S. products. The obligation to provide compensation terminates upon termination of the safeguard relief.
Safeguard authority expires in 10 years. Authority to provide import tariff relief with respect to a Korean textile or apparel article will expire ten years after duties on the article are eliminated pursuant to the Agreement.
CITA contact: Maria D' Andrea (202) 482-1550
(FR Pub 03/19/12)