House Ways and Means Chairman Charlie Rangel (D-NY) asked the International Trade Commission (ITC) to monitor and collect data on apparel imports from China.  


The apparel imports subject to the monitoring program are those categories subject to quotas under the current Memorandum of Understanding (MOU) between the United States and China that expires at the end of this year AND certain knit-to-shape sweaters. 

According to Ways and Means staff, the China monitoring program will be used to collect data (value/quantity/unit value) from 2003 with a focus on 2009 and beyond that will be reported to the Committee on a bi-weekly basis with a Section 332 report issued annually to the Committee by the ITC.  The duration of the monitoring program is open ended at this time.


Under Section 332 of the 1930 Act, upon request from the President, the Senate Finance Committee, the House Ways and Means Committee, the U.S. Trade Representative, or upon its own motion, the U.S. International Trade Commission (“ITC”) can initiate a general fact-finding investigation, make inquiries, hold a hearing  and present a final report to the President and Congress. 


Section 332 investigations cover a broad range of topics, including the widespread effects of U.S. customs laws, tariff and trade matters, commercial treaties and conditions of competition between U.S. and foreign industries.


The firm can help clients with interests in such investigations by submitting written briefs to the ITC, and preparing and presenting oral testimony during the hearing process, by working with Administration and/or Congressional offices to obtain support for a specific investigation, and to provide research of assistance to the Commission investigators.

 

The China monitoring program being established at Chairman Rangel’s request is different than the Vietnam import monitoring program which was initiated by the Bush Administration (versus the China monitoring program being initiated by a Congressional committee). 

In a conference call with trade associations Wednesday, the Ways and Means staff stressed that Rangel decided not to use a Section 421 safeguard-an investigation seeking to prove damages to U.S. industry with subsequent punitive remedies (i.e. additional tariffs or quotas or both).  This does not preclude the Committee or U.S. industry from launching a 421 case or countervailing duty or dumping investigation.


Chinese imports to be monitored include: contton knit shirts, man-made fiber knit shirts and trousers, mens/boys woven shirts, sweaters, underwear and mens/boys wool trousers. Items to be excluded include  ski and snowboard pants.