10.
The following are examples in the textiles field:
Rate if sales
aggregate less than $1.2mn. in
Rate:
1972:
Cotton yarns, No. 6-29
15%
5%
Cotton yarns, No. 30 and above
25%
15%
Cotton textiles, dyed in the
piece,
in the yarn or self-coloured
Cotton textiles, specially
finished or non-shrink
40%
30%
Good quality men's and women's
wear of cotton cloth
Cotton flannelette
Grey Cloth
Cotton textiles, bleached or
mercerised
35%
25%
Cotton towelling and products of
Cotton velours
Mercerised cotton hosiery
Finishing or processing of grey
cloth temporarily imported
for re-export
20%
20%
Smaller producers have tended to group themselves together (or use the services of an export house) in order to achieve the minimum annual shipments total of $1mn. or $1.2mn. and towards the end of the year some exporters have found it worth selling at a loss in order to reach this minimum figure and so claim the higher rate of drawback.
Over the years schemes such as those described under (a) and (b) above are understood to have been investigated by the GATT and found wanting but GATT action has never gone further than adverse comment. The UK anti-dumping legislation has also proved inoperative (cases have failed to satisfy the criterion that action "having regard to all the circumstances, would be in the national interest"). All the evidence suggests that artificial pricing schemes will continue and that Community anti-subsidy legislation will provide no relief. Quantitative restrictions have provided a partial remedy in the past and offer the only hope of partial relief for the future.