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U.S. Association of Importers of Textiles and Apparel
Washington, D.C. 20037
June 14, 2004
Honorable Philip Crane, Chairman
Subcommittee on Trade
House Committee on Ways and Means
Washington, D.C. 20515
Dear Mr. Chairman:
The upcoming hearing
to consider the Fiscal Year 2005 budget for the Bureau of Customs and Border
Protection (CBP) and H.R. 4418, the Customs and Border Security Act of 2004
provides an important opportunity for the Subcommittee to address significant
issues related to the elimination of quota restrictions on January 1, 2005.
One effect of the
elimination of quotas under the World Trade Organization should be to guarantee
that textiles and apparel are treated the same as other manufactured products,
which are traded free of admissibility restrictions and/or additional paperwork
requirements. This development will mean significant changes in the way that
textile and apparel imports are handled at the point of entry into the United
States. If the transition from strict control to a more efficient system is
to work smoothly, a great deal must be accomplished before the end of the year
by both CBP and the inter-agency Committee for the Implementation of Textile
Agreements.
We respectfully
urge the Subcommittee to use the hearing next week to press CBP officials to
move forward with promptly addressing the necessary changes in customs entry
procedures.
Because of the quota
regime, importers of textiles and apparel have not been able to take advantage
of many of the improved entry procedures available to importers of other types
of merchandise. This creates additional work for importers and it certainly
creates additional work for CBP, which has been required to operate parallel
entry systems, one for textiles and apparel and another for most other
merchandise. The end of quotas in 2005 will change all of that.
USA-ITA has opened a
dialogue with CBP on these issues. These discussions have centered on the
following:
- Elimination of the "live" entry requirement;
- Elimination of the extended conditional release period
- Paperless entries made available to all textile and apparel
imports;
- Elimination of the quota charge statement; and
- Elimination of the textile declaration.
CBP has indicated that it will
eliminate the quota charge statement, but is not able to make additional
changes without CITA’s approval. We respectfully urge the Subcommittee to
question the extent to which CBP is compelled to await CITA approval, and to
require CBP to initiate steps to modify its regulations.
- Live entry
Currently, textile and
apparel products are subject to a so-called “live entry” requirements, which
means that the entry must be reviewed and duties paid before the goods may be
released. While this may be justifiable where quotas apply, so that a
determination of the availability of quota may be made before entry, it makes
no sense once quotas are eliminated. The Subcommittee should require that CBP
make the necessary changes to implement an elimination of the live entry for
non-quota textile and apparel products as of January 1, 2005.
- Conditional Release
Period
For all goods entering
the United States, the initial release by CBP is conditional, subject to a
demand for redelivery to CBP within 30 days should CBP determine that entry
requirements were not met. However, for textile and apparel products, CBP’s
regulations, at 19 CFR section 141.113(b), the conditional release period is
extended another 180 days – six months – during which CBP may demand redelivery
of merchandise or, in the event of a failure to redeliver, assess liquidated
damages. Clearly, this exceptional treatment of textile and apparel products
can no longer be justified once the quotas no longer apply. Thus, the
Subcommittee should instruct CBP to modify its regulations to eliminate the
extended conditional release period for textile and apparel products not
subject to quota.
- Availability of
Paperless Entry
Today, textile and
apparel products must be accompanied by a variety of piece of paper. These
include a quota charge statement and a textile declaration. With the
requirement of a presentation of these piece of paper, it is impossible for
apparel importers to participate in the paperless entry process available to
all other importers of consumer goods.
It would seem to go
without saying that once products are not subject to quotas, importers of such
goods should not have to present a statement asserting whether they paid for
any quota applicable to those goods. However, in the absence of a definitive
statement from U.S .Government officials, uncertainty dictates that importers
continue to obtain that statement from suppliers and include it with their
entry package. CBP should be required to state with certainty that this
document is not required for products no longer subject to quota.
The various textile
declarations are a particular concern. These are declarations that state that
a textile product is a product of a single country (single country declaration)
or of production in multiple countries (multiple country declaration) or that a
textile product is not subject to quota restrictions at all (a negative
declaration). If these pieces of paper continue to be required for release,
none of the improvements in the clearance of textile products – or the
treatment like all other goods -- will be realized. The regulation requiring
textile declarations, 19 CFR section 12.130(f), was created in the context of
the quota regime and was intended to ensure that quota admissibility requirements
were satisfied. These admissibility requirements will be eliminated on January 1, 2005. The Congress should therefore direct CBP to eliminate the textile
declaration requirements from its regulations concurrent with the end of the
quota system.
If the textile
declarations are not eliminated, CBP will have to continue to operate a
separate entry system for textiles and apparel. The added expense and loss of
efficiency that this caused might have been justified while quotas were in
place; however, the end of the quota regime cancels any justification.
Sincerely,
Laura
Jones
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