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FACT SHEET

Committee for the Implementation of Textile Agreements
Safeguard Determination on Socks from China

On Friday, October 22, the Committee for the Implementation of Textile Agreements (CITA), which is chaired by the Department of Commerce, determined that the U.S. market for socks (Categories 332/432 and 632 part) is being disrupted and that there is a threat of further disruption due to imports from China. CITA further determined that imports of socks from China play a significant role in the existence and threat of market disruption, and that this situation threatens to impede the orderly development of trade in these products.

Next Steps: CITA will request consultations with China with a view to easing or avoiding such market disruption. As of the date consultations are requested by the United States, a quota will be put in place to limit U.S. imports of socks from China. The quantitative limit will be the sum of imports of Chinese origin cotton and man-made fiber socks (Category 332 and 632 Part) plus 7.5 percent, and imports of Chinese origin wool socks (Category 432) plus 6 percent, which entered into the United States during the first 12 months of the most recent 14 months preceding the month in which the request for consultations is made.

Consultations must be held within 30 days of receipt of the request by the Chinese government. The United States will make every effort to reach a mutually satisfactory agreement with the Government of China to ease or avoid the disruption in the U.S. market for socks within 90 days of such request. In the event a mutually satisfactory agreement cannot be reached by the conclusion of the consultations period, the quota will remain in place for one year after the date on which consultations are requested.

Petitioners: The petition requesting this investigation was filed by the Domestic Manufacturers Committee (DMC) of The Hosiery Association111The DMC represents the domestic manufacturing members within The Hosiery Association (THA). THA itself maintains a neutral stance on the request. , the American Manufacturing Trade Action Coalition, the National Council of Textile Organizations, and the National Textile Association.

Product Description: The relevant product of Chinese origin is cotton, wool and man-made fiber sock imports from China in Category 332/432 and 632 part, which consists of eleven Harmonized Tariff Schedule of the United States (HTSUS) sub-headings: 6115.91.0000, 6115.92.6000, 6115.92.9000, 6115.93.6010, 6115.93.6020, 6115.93.9010, 6115.93.9020, 6115.99.1410, 6115.99.1420, 6115.99.1810, and 6115.99.1820.

Import Statistics:

2001

2002

2003

Year-Ending August 2004

Quantity (Dozen Pairs)

World

90,157,486

121,402,935

146,939,803

180,458,290

China

985,619

5,874,407

21,877,024

42,491,164

Value (US$)

World

$616,269,183

$766,680,467

$846,860,669

$988,113,268

China

$8,835,118

$29,580,016

$91,182,953

$170,607,690

Source: Statistics for sock imports from the world and China derived from the Office of Textiles and Apparel, Major Shippers Report for HTSUS numbers listed above.

1 1 The DMC represents the domestic manufacturing members within The Hosiery Association (THA).   THA itself maintains a neutral stance on the request.

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