The following research report contains market research, analysis, statistics and business intelligence relating to research on Exporting Textiles And Textile Products To The European Union .

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ABSTRACT
What kind of quotas does the EU have on textile imports?
As of January 2001, the EU maintains quotas on textile imports from 19 countries (Argentina, Belarus, Brazil, China, Federal Republic of Yugoslavia, Hong Kong, India, Indonesia, Macao, Malaysia, North Korea, Pakistan, Peru, Philippines, Singapore, S. Korea, Taiwan, Thailand, and Vietnam). For the quotas enacted on each country, refer to http://sigl.cec.eu.int/query.html. The EU allows imports under a surveillance mechanism from the following countries: Bangladesh, Bosnia Herzegovina, Cambodia, Croatia, FYROM, Kazakhstan, Kyrgyzstan, Laos, Moldova, Mongolia, Nepal, Russia, Syria, Tajikistan, Turkmenistan, Ukraine, and the United Arab Emirates.
Are EU quotas expected to change in the near future?

* WTO countries
Textile and clothing trade in the EU is regulated by the Agreement on Textiles and Clothing, a 1995 World Trade Organization (WTO) initiative designed to progressively phase out quotas in the EU, the US and Canada. Now in the third stage, the EU has faithfully implemented its obligations, liberalizing 51.3% of its imports. The fourth (and final) stage will begin January 1,2007. The remainder of trade obstacles will be lifted and all WTO countries will have equal access to the European market. For more specific information, please refer to the following web site: http://www.europa.eu.int/comm/trade/pdf/tlm.pdf.

Please note that the EU has expressed its willingness to conclude trade agreements in the interim period with countries currently covered by quotas if they meet certain guidelines (ˆ la the 2001 agreement with Sri Lanka).

How can I determine the origin of a garment?

The origin of the product is established according to EU rules. Annex 10 of the Community Customs Code (Regulation 2454/93) provides a detailed list of working or processing operations which confer originating status to manufactured textile products.

Certificates of origin should be filled out by the exporter and then signed by the competent authorities (Chambers of Commerce) in the country of origin of the garment or textile product. Companies can find models of certificates of origin on the various websites listed below.

What kind of paperwork must I fill out before exporting to the EU?

Companies must obtain an import authorization for products originating in countries subject to EU quotas. These are granted by national licensing authorities in the EU member states. One license is valid throughout the EU.
To obtain the import license, the exporter must provide the following papers: 1. the original export license (showing the date and standardized number) - a very important document, without which companies will not be granted an import authorization

2. original country of origin documents

(please note that both the export license and the country of origin papers must be supplied on 210x297mm paper, weighing no less than 25g/m)

3. shipping documents

4. an invoice

5. full information of exporter and importer (i.e., contact information, address, VAT number etc)

6. mention country of consignment

7. a description of the products, including their Combined Nomenclature number and their commercial designation

8. the quantity and value of the product

Import licenses are valid for 6 months, and may be extended for an extra 3 months upon submission of a duly motivated request to the national authorities (it is exceptional to have the license extended twice).

For information on Argentina, Cambodia, China, Honk Kong, India, Indonesia, Laos, Macao, Malaysia, Pakistan, Peru, the Philippines, Russia, Singapore, South Korea, Sri Lanka and Thailand, Ukraine, Vietnam please refer to the following website. Each country link is a PDF document containing detailed information, including a copy of the forms that must accompany the shipment (for the country of origin requirements).

http://www.europa.eu.int/comm/trade/goods/textile/legitext1.htm
Does the imported garment have to be labeled?

Labeling legislation is not entirely harmonized throughout the EU.

- Fiber content labeling

As far as labeling is concerned, the only mandatory labeling in the EU regards fiber contents (Directive

96/74/EC on textile names, Official Journal L032, February 3, 1997 - see attached). You must state fiber content on labels.

As far as using different languages is concerned, Directive 96/74/EC encodes the various fibers and fiber contents. The manufacturer only needs to follow the code names stated in the Directive and therefore does not need to use any particular EU language.

- Care labeling

Unlike fiber content labeling, there is no harmonized EU legislation on care labeling. With the exception of Austria, it is not mandatory to include care labels when exporting to the EU. However, the European Textile Association recommends the use of care labels as the manufacturer can be held liable under another EU Directive if a problem occurs (Product Liability Directive - see below). In the EU, care labels can consist of symbols/logos only (i.e., ISO care labels); additional text is allowed, but not necessary. Companies exporting to certain countries may have to pay a fee to a national agency which protects these logos (since this is not an EU-wide issue, please check with the relevant Embassies' Commercial Service whether there is such a requirement in their respective member states).
Where can I find relevant information and legislation?

* Import regulations and Customs

Regulation 3030/93 is the basic legislation regulating imports of textiles into the EU and contains country-specific information. Companies should be aware that the Regulation and its annexes have been amended 79 times since 1993, so in order to obtain updated annexes they should contact the Commercial Service.

Regulation 2913/92 (Community Customs Code) is the basic legislation governing imports and customs for the entire European Union.

Regulation 2454/93 (Implementation of the Customs Code): Companies will find in annex 10 of this Regulation important information on country of origin rules for textiles.

* Product Liability and Product Safety

The producer is liable for damages caused by a defect in his product. The victim must prove the existence of the defect and a causal link between defect and injury (bodily as well as material). A reduction of liability of the manufacturer is granted in cases of negligence on the part of the victim. A "development risk" can also free the manufacturer from liability. The statute of limitations is ten years.
The current Directive (92/59/EEC) on General Product Safety has been revised and will be replace by Directive 2001/95/EEC on January 15, 2004. Changes include an obligation of the producer and distributor to notify the Commission in case of a problem with the product, provisions for recall, the creation of a European Product Safety Network, and a ban on exports to third countries of products which are deemed unsafe in the EU.

- Dye Standards

The EU restricts the marketing and use of certain dangerous substances. The concerned Directive (2002/61/EC) of July 19, 2002 refers specifically to the use of certain azodyes in the manufacturing of textile and leather articles. The full-text document can be found at:

http://europa.eu.int/eur-lex/en/dat/2002/l_243/l_24320020911en00150018.pdf.
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- Relevant websites

European Commission Textile website: http://www.europa.eu.int/comm/trade/goods/textile/index_en.htm. Companies may consult this website for more information on the EU's textile policy, import quotas etc.

European Commission's SIGL database (specialized in textiles): http://sigl.cec.eu.int/query.html. This database contains detailed information on percentages of quotas which have been used up, by country and product. For information on how much of the quota has been used up at any given moment, and a full description of textile product categories: http://sigl.cec.eu.int/information.html.

US Department of Commerce Office of Textiles and Apparel: http://otexa.ita.doc.gov. For exporter-oriented information on EU textile legislation.

* EU Commission contacts

DG Trade: Frauke Somer, 02/296.17.79 (on textiles import requirements)

DG Customs: Philippe Cuisson, 02/295.27.94 (on rules of origin)
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* Consultants specialized in textiles, clothing, footwear and leather issues

A&MV Public Relations Int

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Anthonisen & Associates

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Eamonn Bates Europe Public Affairs

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Edelman Public Relations Worldwide

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Euralia-Guerin

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European Strategy

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Eurotec Consulting

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Tel/Fax: 32.2.282.00.80/32.2.230.31.68

International Technology & Trade Associates

Avenue Louise 65 Box 11

1050 Brussels

Tel/Fax: 32.2.535.78.98/32.2.535.77.00

Kate Thomas & Kleyn

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Tel/Fax: 32.2.569.36.44/32.2.569.47.80

Puyenbroeck Intelligence Access

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Published: 2006 August
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Industry: Textiles
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