China to Implement Double Checking System

for Textile Exports to the EU

Effective from 1 January next year, Chinese quotas will be removed by the European Union. A so-called "double-checking system" in order to strictly monitor the level in imports from China in 2008 will be implemented. 

China has released requirements for exporting to the European Union in 2008. Textile trade companies will have to comply with a series of condition for getting export licences. 

Conditions for Getting Licences 

Export licences will be issued on China's side, but without limits and under an automated process. A series of conditions for being granted export licences were revealed on 17 October, leading to a possible restriction in exports to the European Union.

The system will be managed by the China Chamber of Commerce for Import and Export of Textiles, in association with the China National Textile and Apparel Council and the China Association of Enterprises with Foreign Investment. In order to apply for export licences, Chinese companies will need complying with following requirements: 

1.  Have a registered capital of more than 500,000 yuan in mainland China.

2. Having exported textiles and/or apparel in the past two years.  

3. Having exported textiles or clothing to the European Union worth a minimum of US$10,000 in the previous year.

4. Not having violated China's rules related to intellectual property rights or environmental protection in the past three years.

5. Being a member of the China Chamber of Commerce for Import and Export of Textiles.

Under the agreement, the double-checking system will cover eight categories of products: 4 (T-shirts), 5 (pullovers), 6 (men's trousers), 7 (women's shirts, blouses), 26 (dresses), 20 (bed linen), 31 (bras) and 115 (flax yarn). Categories 2 (cotton fabrics) and 39 (woven table linen) are excluded, being no more considered "sensitive". 

The system is set to expire at the end of 2008, in line with the end of textile safeguards granted to the European Union and the United States under China's WTO accession protocol. 

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