[Federal Register: December 29, 2003 (Volume 68, Number 248)]
[Notices]
[Page 74947-74949]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de03-34]
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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 Cotton and Man-Made Fiber Dressing Gowns and
Robes, Category 350/650, 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 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 cotton and man-made fiber
dressing gowns and robes in Category 350/650. 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 cotton and man-made fiber dressing gowns in Category
350/650 from China, beginning on December 24, 2003, and extending
through December 23, 2004 at a level of 4,094,382 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 cotton and man-made fiber
dressing gowns and robes in Category 350/650 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
[[Page 74948]]
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 cotton and man-made
fiber dressing gowns and robes. (Category 350/650) 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 cotton and man-made
fiber dressing gowns and robes. 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 49444). This public comment
period ended on September 17, 2003. The Committee determined that
imports of Chinese origin cotton and man-made fiber dressing gowns and
robes are, due to market disruption and the threat of market
disruption, threatening to impede the orderly development of trade in
cotton and man-made fiber dressing gowns and robes, and that imports of
cotton and man-made fiber dressing gowns and robes from China play a
significant role in the existence and threat of market disruption. A
summary statement of the reasons and justifications for the U.S.
request for consultations concerning imports of Category 350/650 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 Categories 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 cotton
and man-made fiber dressing gowns and robes. in Category 350/650,
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
4,094,382 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 cotton
and man-made fiber dressing gowns and robes in Category 350/650 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, 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
Cotton and Man-Made Fiber Dressing Gowns and Robes
Category 350/650
The United States believes that imports of Chinese origin cotton and
man-made fiber dressing gowns and robes are, due to market
disruption, threatening to impede the orderly development of trade
in cotton and man-made fiber dressing gowns and robes, and that
imports of cotton and man-made fiber dressing gowns and robes from
China play a significant role in the existence of market disruption.
Further, the United States believes that imports of Chinese origin
cotton and man-made fiber dressing gowns and robes are, due to the
threat of market disruption, threatening to impede the orderly
development of trade in cotton and man-made fiber dressing gowns and
robes, and that imports of cotton and man-made fiber dressing gowns
and robes 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 cotton and man-made fiber dressing gowns and
robes from China increased from 259,868 dozens in 2000 to 2,171,896
dozens in 2002 (an increase of 736 percent), and to 4,117,377 dozens
in the year ending in October 2003 (an increase of 1,484 percent
from the 2000 level).
U.S. Imports from China Are Increasing Rapidly Relative to Other
Imports. In 2001, China was the 5th largest exporter of cotton and
man-made fiber dressing gowns and robes to the United States. Just
one year later, China was the largest exporter of cotton and man-
made fiber dressing gowns and robes 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. imports of cotton
and man-made fiber dressing gowns and robes from China was US$66.61
per dozen, compared to a ``rest of world'' import average unit value
of US$74.60 per dozen. In the year ending October 2003, the average
unit value of imports from China fell to US$56.46 per dozen,
compared to US$65.74 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 cotton
and man-made fiber dressing gowns and robes, and the low prices of
Chinese imports
[[Page 74949]]
of these products threaten to disrupt the U.S. market for cotton and
man-made fiber and dressing gowns and robes. 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. Cotton and Man-Made Fiber Dressing Gowns and Robes
Industry is Vulnerable to Any Increase in Imports. U.S. production
including outward processing of cotton and man-made fiber dressing
gowns and robes fell 38.6 percent from 2000 to the year ending June
2003 (from 1,990 thousand dozens to 1,221 thousand dozens), while
the share of the market held by U.S. producers fell by 17.9
percentage points (from 30 percent to 12.1 percent) during this
period.
[FR Doc. 03-32033 Filed 12-24-03; 8:45 am]