The European Union (EU) is finalising a proposal by amending the existing Council Regulation (CR) 3030/93, to eliminate all import textile and clothing quotas vis-à-vis World Trade Organisation (WTO) countries from January 1, 2005. This was stated by Pakistan's Economic Minister in Brussels Tariq Puri, in a letter to Commerce Secretary Tasnim Noorani, to answer queries made by the exporters with regard to official position of the textile quota goods' entry in the EU after December 31, 2005.
He said in accordance with the EU, bilateral agreements with a number of Third World countries, the administrative arrangements notified to the WTO with Article 2.3 of the CR 3030/93, whenever such agreements established quantitative limits for the import of textile and clothing products into the EU, the quotas were applied on the basis of the principle of the goods shipment.
As a consequence, any textile goods whose export to the EU is subjected to the quota and which is shipped for the export to the EU in 2004, will be subjected to such quantitative limits and to the requirement of an export license and subsequent import license for their admission for free circulation in the EU, regardless of whether such goods are presented to the Customs in 2004 or afterwards.
That would be the case also with such textile goods stored in bonded warehouses if they had been shipped from the country of origin before the end of 2004, Tariq Puri explained.
The minister said the Commission was currently examining whether some forms of control should be established beyond the end of 2004 to ensure the respect of both international agreements, it had entered into with Third World countries and of its internal regulations.
Pending to a final decision by the Commission and subsequently by the Council, the exporters and the traders are advised that for the import into the EU of textile products subject to quotas in 2004 and shipped in 2004, they should respect the legislation in force in 2004, ie the requirement for a valid export license to obtain the corresponding import license.
Responding to a query from the textile associations in Pakistan whether there will be import duty on goods under quota with valid license shipped before the midnight of December 31, arriving in EU in 2005, Tariq Puri clarified the products already graduated falling under Chapter 50 to 60.
The products under Chapter 61, 62 and 63, which stand graduated from January 1, 2005, whether they were under quota or not, arriving on January 1, 2005 or thereafter, would be subjected to the prevalent rate of the most favoured nation (MFN) duty, he added.
In principle, it was the date of filing of the import bill by the importer, which determined the applicable rate of the duty, he added.
Tariq Puri also said all goods exported from Pakistan other than the ones that already stand graduated would continue to enjoy duty-free access into the EU till the end of 2005, unless a change or modification takes place in the Regulation under the Preferential Arrangement during the year.