China's Ministry of Commerce and General Administration of Customs jointly issued an announcement on 3 December 2004, stating that in accordance with relevant terms in Agreement on Textile and Clothing of WTO, quotas involving textiles exports to the European Union, US, Canada and Turkey will be abolished from 1 January 2005 onwards. Textiles exports would no longer be subject to quotas licence management, whilst exporters will not be required to submit export licences when they declare their exports to the Customs Office.

For Mainland textiles, which are exported to the European Union and Turkey as of 1 January 2005, the exporters shall continue to provide appropriative Certificate of Origin for textiles. Exporters should apply for their Certificate of Origin for textiles and silk-linen fabrics with Ministry of Commerce approved issuing bodies such as Licence Affairs Bureau or local foreign trade departments. For details, please refer to the website. The existing application procedures for Certificate of Origin are still applicable.

Furthermore, China expressed its intention earlier this month to tax its own clothing exports once its global quotas expire. Disseminating the details of this self-imposed levy, China outlined duties for 148 clothing types, with most goods being taxed at the rate of Rmb 0.20 per article or set of clothing, according to the International Business Daily, a newspaper authorised to publish Ministry of Commerce regulations. The items affected include shirts, trousers, underwear and nightwear. For details, please refer to the website.

Members who would like to express their views on the above, or those who encounter difficulties in export declaration, may contact Jeffreys Tsang of the Secretariat at 2732 3197. Members' comments will be collated and submitted to the relevant authorities.

30 December 2004