U.S. WANTS CHARGEBACK AGAINST CHINA'S QUOTA

Byline: Jim Ostroff

WASHINGTON--The U.S. has proposed charging back 1.35 million dozen units of cotton underwear against China's quota, as well as smaller amounts of shirts and pants, for alleged transshipping violations.
The State Department has asked Chinese trade officials to meet here on Oct. 31 and Nov. 1 in order to discuss specifics of the allegations, but no response has been received as of this date. The letter, dated Oct. 4, listed more than 1.8 million dozen units of apparel that the U.S. maintains the Customs Service determined were manufactured in China, but were charged against another country's quota when imported to the U.S.
The U.S. earlier this year charged back 1.4 million dozen pieces of cotton underwear, including both men's and women's garments, effectively filling most of China's 1.7 million dozen quota for this year. This category was embargoed by the U.S. in July, at which time the quota limit was reached. Should the proposed chargeback be issued, the cotton underwear category likely would close early in 1995 for lack of quota.
The U.S., on Oct. 4, also proposed charging back against China's quota: 162,000 dozen garments in category 338, men's and boys' cotton knit shirts, 147,492 dozen in category 339, women's and girls' cotton knit shirts, and 173,669 dozen in category 347, men's and boys' cotton trousers.

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