The injunction would prevent CITA from considering threat-based China safeguards petitions filed by U.S. domestic textile and apparel manufacturers on goods subject to quota until Dec. 31.
The move is the latest skirmish in a bitter conflict between U.S. domestic manufacturers and apparel importers as the end of worldwide textile quotas on Dec. 31 approaches. CITA has recently imposed a safeguard quota covering cotton, wool and man-made fiber socks from China, and also accepted petitions from domestic manufacturers to impose safeguard quotas on merchandise originating in China for 13 different textile and apparel categories. The domestic industry has also asked CITA to re-impose quotas in five safeguard categories that will expire Dec. 24.
USA-ITA alleged in its lawsuit that CITA has no authority to act on threat-based petitions in the absence of any credible evidence of such threats, and that CITA's 'secret consideration, acceptance and approval of such petitions' violates both federal law and CITA's own policies.
'U.S. importers and retailers place orders during the period of November through January for arrival in the U.S. in the third quarter of the following year. The possibility that goods made in China may be restricted by quotas as soon as February 2005 means that quotas covering such products may be filled and closed by the third quarter of 2005. As a consequence, U.S. importers are now forced to modify their current sourcing plans — meaning they must move such orders outside China — and such decisions cannot be reversed months from now,' USA-ITA said in its lawsuit.
'CITA's mere consideration of petitions that violate its regulations have a far-reaching and harmful effect on USA-ITA members,' the suit alleged.
Oral arguments will be heard 10 a.m. Dec. 20 at the Court of International Trade.
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