Firms Misusing Textile Quotas for EU & US to Face Music
Source: CCCT Date: 2006-06-01
For past several years, China has been the top exporter of textile and garments supplying almost 25 percent of the worlds apparel.
However, with rising demand from the local market and strong Yuan is tempting many apparel manufacturers to squander the EU and the US quotas.
Besides, rising value of Yuan may further result in lower demand from the EU and the US.
Government has recognized this issue and has laid down firm laws against it, promising that the misuse of quotas will be monitored strictly and the accused will definitely be punished.
Ministry of Commerce announced that the enterprises will have to surrender the unused export quota so that they can be reallocated.
Companies that utilize less than 90 percent of their quotas will be eligible for fewer or even no rights all, the following year.
Ministry also assured that more detailed regulations will be released soon.
National Development and Reform Commission recently, reported that this year, Chinas textile and garment export growth rate has slowed down to 15 percent due to surge in local demand and rise in value of Chinese currency.
Nevertheless, textile exports are expected to grow to $135 billion Yuan this year from $117.5 billion Yuan last year, recording 20.7 percent increase in shipments.
