Portion Control

There is some good news on the horizon regarding quotas. In January 1995, the World Trade Organization (WTO) agreed to eliminate all textile and apparel quotas among its members by July 1, 2005. This has put pressure on nonmember countries, such as China, to comply with WTO requirements so their quotas will be lifted as well.

NAFTA has also had a positive impact on quotas. Since its signing, products made with North American fabric and assembled in Canada and Mexico are free of quota restrictions. It's important to remember, however, that the elimination of quotas doesn't mean you won't have to pay customs duties. The United States still has the power to levy duties on any imported goods.

If you'd like more information on quotas, you can log on to the following government Web sites: http://www.USTR.gov and http://www.customs.ustreas.gov

Contact Source

Wasserman, Schneider, Babb & Reed, (212) 619-1770, wsb@customs.com

This article was originally published in the December 1998 print edition of Entrepreneur with the headline: Portion Control.