Chinese clothing tariffs delayed
Oupa Segalwe
15 September 2006The Department of Trade and Industry (DTI) has announced a delay in the implementation of new quotas on clothing and textile imports from China.
The quota system that was to be implemented on 28 September will now come into effect from 1 January 2007, placing import restrictions on 31 product categories of clothing and textiles from China.
This follows an agreement signed between President Thabo Mbeki and his Chinese counterpart, Premier Wen Jiabao, in June.
"This decision by the minister ... follows from the department's consideration of submissions received from all stakeholders," the DTI said.
The department received submissions from manufacturers, retailers and labour during public comments last week. It also held a meeting on Thursday to further consider various concerns raised.
The meeting was attended by stakeholders including senior officials from the department, the International Trade Administration Commission (Itac), the South African Revenue Service (Sars), and representatives from unions Clotrade, Textfed and Sactwu and retailers such as Mr Price, Woolworths, Truworths and Foschini.
Among the concerns raised during the meeting, which was chaired by DTI Director-General Tshediso Matona, were the need for longer lead times, the methodology for quota allocation, and domestic supply issues.
"Parties agreed that a delay of implementation will go some way to enable all the players in the value chain to put in place arrangements to enable the industry to adjust to the restrictions and take advantage of the resulting opportunities," the DTI said in a statement.
"Furthermore, the parties agreed to an ongoing process to be convened by the DTI, and involving Itac and Sars, through which the quotas will be monitored."
The process of monitoring the quotas will also seek to address issues related to illegal imports and under-invoicing.
Last week, Ebrahim Patel of trade union Sactwu said that in excess of 55 000 jobs could be created as a result of the agreement reached with China.
Source: BuaNews
