Current Issues Affecting U.S. Textile and Apparel Exporters

EU Decreases Punitive Import Duty on Women's Cotton Denim Trousers from the U.S.
Last Update: 05/04/2016

Commission Delegated Regulation (EU) C(2016) 1092 final, dated 26 February 2016 amends Council Regulation (EC) No 673/2005, revising the punitive duties applied by the EU on certain imported products from the United States. These punitive duties are in response to the continuing payout of benefits under the Continued Dumping and Subsidy Offset Act (CDSOA), or Byrd Amendment. Effective May 1, 2016, punitive duties on the four designated products imported from the U.S. will be decreased from 1.5% to 0.45%. One of the four products upon which the punitive duty will be applied is women’s or girls’ cotton denim trousers and breeches (excl. industrial & occupational, bib and brace overalls and panties), classified in EU CN code 6204.62.31 (see Annex 1 of C(2016) 1092). The punitive duties are in addition to the EU tariff rate applied to imports.

EU tariff rate information and CN numbers can be found on the EU's On-line customs tariff database (TARIC).

Background:

The EU and other WTO members successfully challenged the United States' application of its Continued Dumping and Subsidy Offset Act (CDSOA), also known as the "Byrd Amendment", under which the U.S. Government disburses anti-dumping fees collected to U.S. companies. On May 1, 2005, the EU had adopted retaliatory measures as established in Council Regulation 673/2005 in the form of a 15-percent ad valorem additional customs duty on certain U.S. products.

In February 2006, the U.S. repealed the CDSOA; however, a two-year transition clause allowed the U.S. law to continue in its application on imports made before October 1, 2007. Under the WTO ruling, the EU has the right to continue applying its retaliatory duty and to adjust the level of sanctions annually to the level of nullification or impairment caused by the CDSOA to the Community at that time.

In 2015, Regulation (EU) 2015/675 had increased the punitive duties from 0.35% to 1.5%. Regulation No 303/2014 had decreased the punitive duties in 2014, from 26% to 0.35%. In 2013, Regulation No 349/2013 had increased the punitive duties to 26%.

See the following attachments related to previous years.

Council Reg 673-2005.pdf Commission Reg 632-2006.pdf Commission Reg 409-2007.pdf EC No 317 2009.pdfEC 305 2010.pdfEC 311 2011.pdf