US Quota Saturation Report

 

Although imports are clearly slowing down, US quotas are being rapidly filled in a series of sensitive categories. China, Vietnam, the Philippines and Indonesia are facing a general saturation in US limits.

In China, a larger series of categories is now above the average rate of 59% for this period of the year. From July 7th, for instance, utilization rate in category 433 (wool hosiery) rose from 48.20% up to 61.90%. Quota fill rate for wool trousers (category 447) jumped from 53.80% up to 72%.

China's exports of cotton trousers in the most sensitive categories 347/348 are also threatened by a fill rate of 81.60%.

Quota alert in Vietnam

For Vietnamese exporters, the surge in shipments to the United States will probably lead to US embargoes being placed before the end of the year for a large series of categories.

In category 342/642 (skirts), the US quota is already 96% filled. The utilisation rate reached 84% in category 301 (combed cotton yarns). In the past month, quota fill rates surged from 30% to 40% to about 55% to 70% for a majority of categories.

In Indonesia, exporters are also under pressure, although the rise in the rupiah depressed sales to the United States. Quota fill rates already exceed 70% in categories 443 (M&B wool suits) and 447 (M&B wool trousers). In category 347/348, the saturation rate rose 10% in the past month, from 55% to 65%.

The same categories 347/348 is also facing a possible saturation in the Philippines, such as in several other countries, as usual.

Quota adjustment for India

India benefited from a general adjustment in its quotas, granted by the US administration and effective from July 23rd. As a result, quota fill rates actually declined compared with a month ago.

India's exports to the US surged in the first quarter before declining at the end of the first half. Categories 338/339 are still threatened by a possible saturation, however, with a fill rate of 73.80% and five months to remain before the end of the year.

In Malaysia, quota  filled rate is 68.3% for category 338/339 (cotton knitted shirts and blouses) and 58.9% for 347/348.




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