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acao Attempts To Preserve US Textile Quotas; Fraud Claims Threaten Trade OURNAL OF COMMERCE (JC) November 09, 1990
K
y: P.T. BANGSBERG Journal of Commerce Staff dition: Five Star
Section: TRADE Page: 4A
ord Count: 468
EXT:
ONG KONG · A government delegation from the Portuguese-administered nclave of Macao is due in Washington this month for talks on a textile ispute that threatens its bilateral trade agreement.
The mission will leave for Washington "later this month," for further alks, a spokesman for the Macao government said Thursday. He said he ouldn't be more specific.
Macao, a tiny dot on the southern coast of China, stands accused of llegal transshipment of Chinese goods falsely marked with its label of rigin.
Such practices violate the bilateral accords under the rules of the ulti-Fibre Arrangement, which governs world textile trade. Washington hreatens not to renew the bilateral pact when it expires on Jan. 1.
While the government in Macao hasn't admitted any wrongdoing, it did ay earlier this week it will tighten controls, something the U.S. side emanded in previous talks.
Among the promised steps are mandatory licenses in advance for all extile products destined for export, and re-exports to be completed within 5 days. Penalties will be levied for contravention of the certificate of rigin regulations to a maximum of one year in jail, fines of up to the alue of the goods, and cancellation of licenses.
The U.S. Customs Service is holding some suspect shipments, including oarse gauge cotton, wool and man-made fiber knitwear until the importers prove they were manufactured in Macao. More than 40 Macanese companies re alleged to be involved in false labeling.
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As reported previously in The Journal of Commerce, the Philippines is nvestigating reports of illegal textile shipments via that country, also riginating in China and perhaps involving Hong Kong middlemen.
In late August, officials in Beijing agreed to cooperate with the nited States in investigating illegal shipments of its goods to the merican market. Textiles are China's No. 1 export earner, and the United tates its largest outlet.
"There has to be a concerted effort in the countries where the goods riginate and the places they are diverted," said Ronald J. Sorini, chief extile regotiator in the U.S. trade representative's office, who led the merican team to Beijing.