The South African Revenue Services (SARS) and China's customs authority have committed themselves to working together to implement quotas on textile and clothing imports from China.

Pravin Gordhan, the SARS commissioner, and Mu Xinsheng, China's custom's minister, signed a memorandum of co-operation in Tshwane today. The agreement also sets the basis to combat the illicit trade in counterfeit goods and smuggling.

President Thabo Mbeki and his Chinese counterpart came to an agreement in June this year, which set quotas for the amount of textiles and clothing imported from China. The agreement is expected to be effective from January next year.

To electronically exchange trade data
SARS has, in the meantime, reached agreement with the general administration of Chinese customs to co-operate in bringing about mechanisms to implement the policy. Gordhan says when the agreement becomes effective, they have at least a spiritual relationship between the two countries, but also now that they have the legal basis to work together.

He says the memorandum of co-operation signed today also creates a legal framework to combat the illicit trade of counterfeit goods and smuggling of goods. "The key issue is to develop the capacity both within your own administration and through co-operation with other administrations to combat smuggling. The two administrations also plan to develop an IT system to enable them to electronically exchange trade data," Gordhan added.

Mboweni criticises import quotas on Chinese textiles
Meanwhile, Tito Mboweni, the Reserve Bank governor, has criticised the planned import quotas on Chinese textiles. Mboweni told Parliament's finance committee that any notion of protectionism against emerging economic powers, such as China, Brazil and India, is illogical and makes no economic sense.

Mboweni's comments come as the department of trade and industry prepares to impose quotas on Chinese textile imports from January 1.