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UNRAVELING MANUFACTURERS? IMPORT RULES COULD SNAG CLOTHING BUSINESS.


Byline: Evan Pondel Staff Writer

The lifting of apparel and textile import quotas
Import Quota
Puts limits on the quantity of certain products that can be legally imported into a particular country during a particular time frame. There is a Fixed quota, which is a maximum quantity not to be exceeded, and tariff rate surcharge, which permits additional quantities but at much higher duty.
 is squeezing local manufacturers, but will likely provide a boon for consumers in search of inexpensive wares, economists said Thursday.

Less than a day after reports began surfacing that imports to the United States from China surged about 75 percent in January, local apparel and textile manufacturers are bracing themselves for what might be a tough spring.

A dearth of manufacturing orders and competition from China could further thwart clothing manufacturers throughout Los Angeles, especially if U.S. customs officials continue to keep import quotas at bay.

``The apparel industry has been badly hammered,'' Jack Kyser, chief economist of the Los Angeles County Economic Development Corp., said about the worldwide import quotas that were lifted Dec. 31.

But apparel jobs were dwindling long before quotas came to an end.

In 2004, there were approximately 66,100 apparel jobs in Los Angeles, a 37 percent decline since the mid-1990s. Textile jobs have also been on a downward trajectory, shedding about 3,400 jobs, or more than 20 percent of the work force, between 2004 and 1999.

Don Strazheim, a Los Angeles-based economist specializing in China, said these trends are not surprising and will maintain their path as Asian economies grow. ``Just like in 1910, it's no big surprise that demand for the horse and buggy diminished.''

And the U.S. government is not the only entity responsible for this trend. Consumers who shop at Wal-Mart and other behemoth retailers enjoy the value they are receiving, essentially feeding Asian importers, Strazheim said.

Some apparel manufacturers are combating the glut in imports by making their products difficult to duplicate. Such is the case for Oneworld Apparel Company Inc. in El Monte, which uses fancy dyes and top-shelf fabrics to manufacture its novelty knits for women.

``We are well aware of the competition out there, but we do major quality control,'' said Bob Burns, a principal at Oneworld. ``And because we're in the market with fresh products, we can turn around manufacturing a lot faster than importers.''

That could prove to be the biggest benefit to domestic apparel manufacturers. By the time Asian companies manufacture and ship their products, local manufacturers are already shipping directly to stores. ``So importers whose boats are still in the water are filled with old news by the time they get here,'' Burns said.

But China's economic muscle is far from losing its strength when up against the United States and competing Asian countries. Boyd Smith, manufacturing director of La Mirada-based Assoluto, said China is even stealing some of the import business from Vietnam and Bangladesh.

And because Vietnam is not a member of the World Trade Organization, Assoluto, an importer of knit tops, has to pass along a quota price to its customers.

Smith said the company is hopeful the U.S. ban on import quotas will eventually change and alleviate competition with China. At least, ``that's what we hear will happen once U.S. Customs gathers six months' worth of data.''

Evan Pondel, (818) 713-3662

evan.pondel(at)dailynews.com
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Title Annotation:Business
Publication:Daily News (Los Angeles, CA)
Date:Mar 11, 2005
Words:516
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