[Federal Register: December 29, 2003 (Volume 68, Number 248)]
[Notices]
[Page 74945-74947]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de03-33]
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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS
Announcement of Request for Bilateral Textile Consultations with
the Government of the People's Republic of China and the Establishment
of an Import Limit for Brassieres and Other Body Supporting Garments,
Category 349/649, Produced or Manufactured in the People's Republic of
China
December 23, 2003.
AGENCY: Committee for the Implementation of Textile Agreements
(Committee).
ACTION: Notice
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EFFECTIVE DATE: December 24, 2003.
FOR FURTHER INFORMATION CONTACT: Roy Unger, International Trade
Specialist, Office of Textiles and Apparel, U.S. Department of
Commerce, (202) 482-4212. For information on the quota
[[Page 74946]]
status of these limits, refer to the Quota Status Reports posted on the
bulletin boards of each Customs port, call (202) 927-5850, or refer to
the Bureau of Customs and Border Protection website at http://www.customs.gov.
For information on embargoes and quota re-openings,
refer to the Office of Textiles and Apparel website at http://otexa.ita.doc.gov
.
SUPPLEMENTARY INFORMATION:
Authority: Section 204 of the Agricultural Act of 1956, as
amended (7 U.S.C. 1854); Executive Order 11651 of March 3, 1972, as
amended.
On December 24, 2003, as provided for under paragraph 242 of the
Report of the Working Party on the Accession of China to the World
Trade Organization (Accession Agreement), the United States requested
consultations with the Government of the People's Republic of China
with respect to imports of Chinese origin brassieres and other body
supporting garments in Category 349/649. In accordance with paragraph
242 of the Accession Agreement and the procedures set forth by the
Committee on May 21, 2003 (68 FR 27787), as clarified on August 18,
2003 (68 FR 49440), the United States is establishing a twelve-month
limit on brassieres and other body supporting garments in Category 349/
649 from China, beginning on December 24, 2003, and extending through
December 23, 2004 at a level of 16,828,971 dozen.
Paragraph 2.B. of the U.S.-China Textile Visa Arrangement provides
that if additional categories become subject to import quotas, those
categories shall be automatically included in the coverage of the Visa
Arrangement. This Visa Arrangement was notified to the World Trade
Organization Textiles Monitoring Body as an agreed administrative
arrangement on May 21, 2002. Consequently, the United States will
require that shipments of Chinese origin brassieres and other body
supporting garments in Category 349/649 be accompanied by an export
visa and Electronic Visa Information System (ELVIS) transmission issued
by the Government of the People's Republic of China. In order to
provide a period for adjustment, the United States will allow shipments
of goods in this category that are not accompanied by an export visa
and an ELVIS transmission to enter the United States if exported prior
to January 23, 2004. However, shipments exported from China on or after
January 23, 2004 must be accompanied by an export visa and ELVIS
transmission issued by the Government of the People's Republic of
China, and shipments without an export visa and ELVIS transmission will
be denied entry.
Paragraph 242 of the Accession Agreement allows World Trade
Organization Members that believe imports of Chinese origin textile and
apparel products are, due to market disruption, threatening to impede
the orderly development of trade in these products to request
consultations with the People's Republic of China with a view to easing
or avoiding such market disruption. Upon receipt of the request, the
People's Republic of China has agreed to hold its shipments to a level
no greater than 7.5 percent (6 percent for wool product categories)
above the amount entered during the first 12 months of the most recent
14 months preceding the request for consultations. The Member
requesting consultations may implement such a limit. Consistent with
paragraph 242, consultations with the People's Republic of China will
be held within 30 days of receipt of the request for consultations, and
every effort will be made to reach agreement on a mutually satisfactory
solution within 90 days of receipt of the request for consultations. If
agreement on a different limit is reached, the Committee will issue a
Federal Register Notice containing a directive to the Bureau of Customs
and Border Protection to implement the negotiated limit.
On July 24, 2003, the Committee received a request from the
American Manufacturing Trade Action Coalition, American Textile
Manufacturers Institute and the National Textile Association alleging
that imports from the People's Republic of China of brassieres and
other body supporting garments (Category 349/649) are, due to market
disruption, threatening to impede the orderly development of trade in
this product, and requesting that an Accession Agreement textile and
apparel safeguard action be taken on imports of brassieres and other
body supporting garments. The Committee determined that this request
provided the information necessary for the Committee to consider the
request, and, on August 18, 2003, the Committee solicited public
comments on the request (68 FR 49448). This public comment period ended
on September 17, 2003. The Committee determined that imports of Chinese
origin brassieres and other body supporting garments are, due to market
disruption and the threat of market disruption, threatening to impede
the orderly development of trade in brassieres and other body
supporting garments, and that imports of brassieres and other body
supporting garments from China play a significant role in the existence
of and threat of market disruption. A summary statement of the reasons
and justifications for the U.S. request for consultations concerning
imports of Category 349/649 from the People's Republic of China follows
this notice.
A description of the textile and apparel categories in terms of
Harmonized Tariff Schedule of the United States numbers is available in
the CORRELATION: Textile and Apparel Category with the Harmonized
Tariff Schedule of the United States (see Federal Register notice 68 FR
1599, published on January 13, 2003). Also see 67 FR 63891, published
on October 16, 2002.
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
Committee for the Implementation of Textile Agreements
December 23, 2003.
Commissioner,
Bureau of Customs and Border Protection, Washington, DC 20229.
Dear Commissioner: Pursuant to Section 204 of the Agricultural
Act of 1956, as amended (7 U.S.C. 1854); and Executive Order 11651
of March 3, 1972, as amended, you are directed to prohibit,
effective on December 24, 2003, entry into the United States for
consumption and withdrawal from warehouse for consumption of
brassieres and other body supporting garments in Category 349/649,
produced or manufactured in the People's Republic of China and
exported during the twelve-month period beginning on December 24,
2003, and extending through December 23, 2004, in excess of
16,828,971 dozen.
Paragraph 2.B. of the U.S.-China Textile Visa Arrangement
provides that if additional categories become subject to import
quotas, those categories shall be automatically included in the
coverage of the Visa Arrangement. This Visa Arrangement was notified
to the World Trade Organization Textiles Monitoring Body as an
agreed administrative arrangement on May 21, 2002. Consequently, the
United States will require that shipments of Chinese origin
brassieres and other body supporting garments in Category 349/649 be
accompanied by an export visa and Electronic Visa Information System
(ELVIS) transmission issued by the Government of the People's
Republic of China. In order to provide a period for adjustment, the
United States will allow shipments of goods in this category that
are not accompanied by an export visa and an ELVIS transmission to
enter the United States if exported prior to January 23, 2004.
However, shipments exported from China on or after January 23, 2004
must be accompanied by an export visa and ELVIS transmission issued
by the Government of the People's Republic of China, and shipments
without an export visa and ELVIS transmission will be denied entry.
Products which have been exported to the United States prior to
December 24, 2003,
[[Page 74947]]
shall not be subject to the limit established in this directive.
In carrying out the above directions, the Commissioner should
construe entry into the United States for consumption to include
entry for consumption into the Commonwealth of Puerto Rico.
The Committee for the Implementation of Textile Agreements has
determined that this action falls within the foreign affairs
exception of the rulemaking provisions of 5 U.S.C. 553(a)(1).
Sincerely,
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
SUMMARY OF THE REASONS AND JUSTIFICATIONS FOR U.S. REQUEST FOR
CONSULTATIONS WITH CHINA PURSUANT TO PARAGRAPH 242 OF THE REPORT OF THE
WORKING PARTY ON THE ACCESSION OF CHINA TO THE WORLD TRADE ORGANIZATION
Brassieres and Other Body Supporting Garments
Category 349/649
The United States believes that imports of Chinese origin brassieres
and other body supporting garments are, due to market disruption,
threatening to impede the orderly development of trade in brassieres
and other body supporting garments, and that imports of brassieres
and other body supporting garments from China play a significant
role in the existence of market disruption. Further, the United
States believes that imports of Chinese origin brassieres and other
body supporting garments are, due to the threat of market
disruption, threatening to impede the orderly development of trade
in brassieres and other body supporting garments, and that imports
of brassieres and other body supporting garments from China play a
significant role in the threat of market disruption. Either finding
supports a request for consultations with the Government of the
People's Republic of China under Paragraph 242 of the Report of the
Working Party on the Accession of China to the World Trade
Organization (``Paragraph 242''). The following facts, and others
contained in the full Statement, support these beliefs:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of brassieres and other body supporting garments
from China increased from 4,084,363 dozens in 2000 to 10,580,029
dozens in 2002 (an increase of 159 percent), and to 15,967,519
dozens in the year ending October 2003 (an increase of 291 percent
from the 2000 level).
U.S. Imports from China Are Increasing Rapidly Relative to Other
Imports. In 2001, China was the 6th largest exporter of brassieres
and other body supporting garments to the United States. Just one
year later, China was the largest exporter of brassieres and other
body supporting garments to the United States and has remained so
through the year ending October 2003.
Chinese Average Unit Values Are Well Below Values from Other
Countries. In 2002, the average unit value of U.S. brassieres and
other body supporting garments imports from China was US$33.43 per
dozen, compared to a ``rest of world'' import average unit value of
US$42.24 per dozen. In the year ending October 2003, the average
unit value of imports from China fell to US$32.08 per dozen,
compared to US$43.17 per dozen for ``rest of world'' imports.
U.S. Imports from China Are Likely to Increase Further in the
Near Future. China's capacity to produce apparel, including
brassieres and other body supporting garments, and the low prices of
China imports of these products threaten to disrupt the U.S. market
for brassieres and other body supporting garments. Due to the
vulnerability of the U.S. industry today, even a relatively small
increase in low-priced imports from China in the near future could
have a considerable impact.
The U.S. Brassieres and Other Body Supporting Garments Industry
Is Vulnerable to Any Increase in Imports. U.S. production including
outward processing of brassieres and other body supporting garments
fell 2 percent from 2000 to the year ending June 2003 (from 28,375
thousand dozen to 27,781 thousand dozen), while the share of the
market held by U.S. producers fell by 9 percentage points (from 52.8
percent to 43.8 percent) during this period.
[FR Doc. 03-32032 Filed 12-24-03; 8:45 am]