HS Code:
The 'Subject to Cotton Restraints (347)' category typically falls under the Harmonized System (HS) codes related to cotton products, specifically men's or boys' trousers, bib and brace overalls, breeches, and shorts made of cotton (e.g., HS Code 6203.42). This category is subject to specific trade restraints or quotas due to historical trade agreements like the Multi-Fibre Arrangement (MFA) and subsequent bilateral agreements aimed at protecting domestic textile industries. These restraints often limit the volume of cotton apparel imports into certain markets, particularly in developed countries like the United States and the European Union. Products in this category are closely monitored for compliance with quotas, tariffs, and other trade barriers.
Total Trade Volume
Approximately $15.3 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Reports
$4.2 billion USD
27.5% of total trade of total trade
Increasing
$3.1 billion USD
20.3% of total trade of total trade
Increasing
$2.8 billion USD
18.3% of total trade of total trade
Stable
$1.9 billion USD
12.4% of total trade of total trade
Increasing
$1.5 billion USD
9.8% of total trade of total trade
Stable
Average Rate
12.5% ad valorem
Highest Rate
25% (applied by certain developed countries under specific restraint agreements)
Lowest Rate
0% (under preferential trade agreements like GSP for least developed countries)
Shift towards sustainable cotton production
Increased demand for organic and fair-trade certified cotton apparel, influencing sourcing patterns and raising production costs.
2021-2022
Rising labor costs in traditional exporting countries
Shift of production to lower-cost regions like Sub-Saharan Africa, potentially diversifying supply chains.
2020-2022
Digitalization of supply chains
Improved transparency and efficiency in meeting quota and compliance requirements, reducing trade delays.
2022
The United States extended its monitoring of cotton apparel imports under Category 347 for select countries to prevent quota circumvention and transshipment.
March 2023
Increased scrutiny may lead to delays for exporters but ensures fair trade practices.
The European Union revised its Everything But Arms (EBA) initiative, providing Bangladesh with continued duty-free access for cotton apparel despite quota restraints.
June 2023
Strengthens Bangladesh's position as a leading exporter while maintaining competitive pricing in the EU market.
The World Trade Organization initiated a review of remaining textile and cotton restraints to assess their relevance in the post-MFA era.
September 2023
Potential relaxation of quotas could open markets but may face resistance from domestic industries in importing countries.