[Federal Register: November 1, 2004 (Volume 69, Number 210)]
[Notices]
[Page 63371-63373]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01no04-50]
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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, Wool, and Man-Made Fiber Socks in
Category 332/432 and 632 Part, Produced or Manufactured in the People's
Republic of China
October 28, 2004.
AGENCY: Committee for the Implementation of Textile Agreements
(Committee).
ACTION: Notice
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EFFECTIVE DATE: October 29, 2004.
FOR FURTHER INFORMATION CONTACT: Ross Arnold, 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 Bureau of Customs and Border Protection website
(http://www.cbp.gov), or call (202) 344-2650. 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.
[[Page 63372]]
On October 29, 2004, 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, wool, and man-made
fiber socks in Category 332/432 and 632 part (``socks''). 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 socks from China, beginning on October 29, 2004,
and extending through October 28, 2005 at a level of 42,433,990 dozen
pairs.
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 June 28, 2004, the Committee received a request from the
Domestic Manufacturers Committee of The Hosiery Association, the
American Manufacturing Trade Action Coalition, the National Council of
Textile Organizations, and the National Textile Association alleging
that imports from the People's Republic of China of socks 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 socks. The
Committee determined that this request provided the information
necessary for the Committee to consider the request, and, on July 22,
2004, the Committee solicited public comments on the request (69 FR
43807). This public comment period ended on August 23, 2004. The
Committee determined that imports of Chinese origin socks are, due to
market disruption and the threat of market disruption, threatening to
impede the orderly development of trade in socks, and that imports of
socks 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 socks from the People's Republic of China follows this
notice.
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 socks be accompanied by an export
visa and Electronic Visa Information System (ELVIS) transmission issued
by the Government of the People's Republic of China. The United States
considers that implementation of the visa/ELVIS requirement is in the
mutual interest of both countries. Goods in Category 332 shall remain
subject to the Group II limit, and will continue to be subject to
export visa and ELVIS requirements. If exported on or after January 1,
2005, goods in Category 332 shall be subject only to the limit
established in the directive that accompanies this notice. In order to
provide a period for adjustment, the United States will allow shipments
of goods in Categories 432 and 632 part that are not accompanied by an
export visa and an ELVIS transmission to enter the United States if
exported prior to November 28, 2004. However, shipments exported from
China on or after November 28, 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. Socks in Category 632 (632 part) are
in HTS numbers 6115.93.6020, 6115.93.9020, 6115.99.1420 and
6115.99.1820. They may be visaed as ``cat. 632'' or ``cat. 332/432/
632.``, but not at ``632pt.'' Similarly, socks in Category 332 may be
visaed as ``cat. 332'' or ``cat. 332/432/632,'' and socks in Category
432 may be visaed as ``cat. 432'' or ``cat. 332/432/632.''
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 69 FR
4926, published on February 2, 2004). Also see 68 FR 65445, published
on November 20, 2003.
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
Committee for the Implementation of Textile Agreements
October 28, 2004.
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 October 29, 2004, entry into the United States for
consumption and withdrawal from warehouse for consumption of cotton,
wool, and man-made fiber socks in Category 332/432/632pt., produced
or manufactured in the People's Republic of China and exported
during the twelve-month period beginning on October 29, 2004, and
extending through October 28, 2005, in excess of 42,433,990 dozen
pairs.
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. Shipments of Chinese origin
cotton, wool, and man-made fiber socks in Category 332/432/632pt.
\1\ must be accompanied by an export visa and Electronic Visa
Information System (ELVIS) transmission issued by the Government of
the People's Republic of China. Goods in Category 332 shall remain
subject to the Group II limit, and will continue to be subject to
export visa and ELVIS requirements. If exported on or after January
1, 2005, goods in Category 332 shall be subject only to the limit
established in this directive. In order to provide a period for
adjustment, the United States will allow shipments of goods in
Categories 432 and 632pt. that are not accompanied by an export visa
and an ELVIS transmission to enter the United States if exported
prior to November 28, 2004. However, shipments exported from China
on and after November 28, 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. Socks in Category 632 (632pt.)
are in HTS numbers 6115.93.6020, 6115.93.9020, 6115.99.1420 and
6115.99.1820. They may be visaed as ``cat. 632'' or ``cat. 332/432/
632.``, but not at
[[Page 63373]]
``632pt.'' Similarly, socks in Category 332 may be visaed as ``cat.
332'' or ``cat. 332/432/632,'' and socks in Category 432 may be
visaed as ``cat. 432'' or ``cat. 332/432/632.''
Products which have been exported to the United States prior to
October 29, 2004, 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.
\1\ Category 632pt. only HTS numbers 6115.93.6020, 6115.93.9020,
6115.99.1420 and 6115.99.1820.
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, Man-made Fiber, and Wool Socks
Merged Category 332/432 and 632 Part
The United States believes that imports of Chinese origin
cotton, man-made fiber and wool socks (``socks'') are, due to market
disruption, threatening to impede the orderly development of trade
in socks, and that imports from China play a significant role in the
existence of market disruption. Further, the United States believes
that imports of Chinese origin socks are, due to the threat of
market disruption, threatening to impede the orderly development of
trade in socks, and that imports of socks 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 this Statement, support these beliefs:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of socks from China increased from 985,619 dozen
pairs in 2001 to 21,877,024 dozen pairs in 2003 (an increase of over
2,100 percent), and to 42,491,164 dozen pairs in the twelve-month
period ending August 2004 (an increase of over 4,200 percent from
the 2001 level).
U.S. Imports from China Are Increasing Rapidly Relative to Other
Imports. In 2001, China was the 12th largest exporter of socks to
the United States. By the year ending August 2004 China became the
largest supplier to the U.S. of socks.
Chinese Average Unit Values Are Well Below Values from Other
Countries. In 2001, the average unit value of U.S. sock imports from
China was US$11.54 per dozen pair, compared to a ``rest of world''
import average unit value of US$8.68 per dozen pair. By 2003, the
average unit value of imports of socks from China fell to $5.11 per
dozen pair, compared to $7.51 per dozen pair for the rest of the
world. In the year ending August 2004, the average unit value of
imports of socks from China fell further to US$4.92 per dozen pair,
compared to US$7.71 per dozen pair for ``rest of world'' imports.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of socks from all sources into the United
States, excluding socks containing U.S. components that were
imported under outward processing programs, increased from
51,014,517 dozen pairs in 2001 to 98,976,106 dozen pairs in 2003,
(an increase of 94 percent), and to 119,805,665 dozen pairs in the
year ending August (an increase of 135 percent from the 2001 level.)
The U.S. Socks Industry is Vulnerable to Increasing Imports.
U.S. production plus outward processing of socks fell 13.2 percent
from 2001 to 2003 (from 246,464,000 dozen pairs to 214,020,000 dozen
pairs), while the share of the market held by U.S. producers fell by
14.5 percentage points (from 82.9 percent to 68.4 percent) during
this period. The number of employees and the number of
establishments in the sock industry also fell significantly during
this period.
U.S. Imports from China Are Likely to Increase Further in the
Near Future. China's capacity to produce apparel, including socks,
and the low prices of imports of these products from China pose an
imminent threat to disrupt the U.S. market for socks. Due to the
vulnerability of the U.S. industry today, continued increases in
low-priced sock imports from China could have a considerable impact
on the market in the near future.
[FR Doc. 04-24432 Filed 10-29-04; 8:45 am]