[Federal Register: May 31, 2005 (Volume 70, Number 103)]
[Notices]
[Page 30930-30932]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31my05-23]
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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 Import Limits for Certain Cotton and Man-Made Fiber Textiles and
Textile Products in Categories 301, 340/640, 638/639, and 647/648,
Produced or Manufactured in the People's Republic of China
May 26, 2005.
AGENCY: Committee for the Implementation of Textile Agreements
(Committee).
ACTION: Notice
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EFFECTIVE DATE: May 27, 2005.
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.
On May 27, 2005, 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 combed cotton yarn (Category
301); men's and boys' cotton and man-made fiber shirts, not knit
(Category 340/640); man-made fiber knit shirts and blouses (Category
638/639); and man-made fiber trousers (647/648).
Paragraph 242 of the Accession Agreements provides that, upon
receipt of the request, the People's Republic of China will hold its
shipments to a level no greater than 7.5 percent above the amount
entered during the first 12 months of the most recent 14 months
preceding the month in which the request for consultations was made.
Because this restraint period will be for less than 12 months, the
quantitative limit will be prorated to conform to the number of days
remaining in the year, beginning on May 27, 2005 (i.e., by a ratio of
219/365). 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 no mutually satisfactory solution
were reached during this 90-day consultation period, the United States
could continue these limits.
To ensure that the limitations provided for under Paragraph 242 are
carried out, the Committee is establishing prorated limits on Chinese
origin textile and apparel products in Categories 301, 340/640, 638/
639, and 647/648, beginning on May 27, 2005, and extending through
December 31, 2005. If agreement on a different limit is reached as a
result of the consultations with China, the Committee will issue a
Federal Register Notice containing a directive to the Bureau of Customs
and Border Protection to implement the negotiated limit.
The Committee solicited public comments with regard to whether
imports of Chinese origin textiles and textile products in Categories
301, 340/640, 638/639, and 647/648 were, due to the threat of market
disruption, threatening to impede the orderly development of trade in
these products (69 FR 68133-Category 301; 69 FR 64913-Category 340/640;
69 FR 64911-Category 638/639; 69 FR 64915-Category 647/648).
The public comment period for each solicitation ended in December
2004. Although the Committee decided to consider these requests and
solicited public comments, on December 30, 2004, the Court of
International Trade preliminarily enjoined the CITA agencies from
considering or taking any further action on these requests and any
other requests ``that are based on the threat of market disruption''.
U.S. Association of Importers of Textiles and Apparel v. United States,
Slip Op.04-162. On April 27, 2005, the Court of Appeals for the Federal
Circuit granted the U.S. government's motion for a stay
[[Page 30931]]
of that injunction, pending appeal. U.S. Association of Importers of
Textiles and Apparel v. United States, Ct. No. 05-1209. Thus CITA
resumed its consideration of these cases. (See 70 FR 24397, published
on May 9, 2005).
The Committee determined that imports of Chinese-origin textiles
and textile products in Categories 301, 340/640, 638/639, and 647/648,
are due to a threat of market disruption, threatening to impede the
orderly development of trade in these textile products. A summary
statement of the reasons and justifications for the U.S. request for
consultations concerning imports of Chinese-origin textiles and textile
products in Categories 301, 340/640, 638/639, and 647/648 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 69 FR
4926, published on February 2, 2004). Information regarding the 2005
CORRELATION will be published in the Federal Register at a later date.
James C. Leonard III,
Chairman, Committee for the Implementation of Textile Agreements.
Committee for the Implementation of Textile Agreements
May 26, 2005.
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 May 27, 2005, entry into the United States for
consumption and withdrawal from warehouse for consumption of combed
cotton yarn (Category 301); men's and boys' cotton and man-made
fiber shirts, not knit (Category 340/640); man-made fiber knit
shirts and blouses (Category 638/639); and man-made fiber trousers
(647/648), produced or manufactured in the People's Republic of
China and exported during the period beginning on May 27, 2005, and
extending through December 31, 2005, in excess of the following
limits.
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Category Quantity
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301....................................... 1,450,777 kilograms.
340/640................................... 2,213,126 dozens.
638/639................................... 2,844,383 dozens.
647/648................................... 2,660,678 dozens.
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Products which have been exported to the United States prior to
May 27, 2005, 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 these actions fall within the foreign affairs
exception of the rulemaking provisions of 5 U.S.C. 553(a)(1).
Sincerely,
James C. Leonard III,
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
Combed Cotton Yarn
Category 301
The United States believes that imports of Chinese origin combed
cotton yarn are, due to a threat of market disruption, threatening
to impede the orderly development of trade in these products. This
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 this belief:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of combed cotton yarn from China were 2,015,700
kilograms for the entire twelve months of 2004. In the first quarter
of 2005, U.S. imports from China were 612,219 kilograms, an increase
of 120 percent from the first quarter of 2004.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of combed cotton yarn from all sources increased
from 14,724 thousand kilograms in the first quarter of 2004 to
19,544 thousand kilograms in the first quarter of 2005 - an increase
of 33 percent.
The Average Unit Value of Imports from China Is Falling in
2005. In 2004, the average unit value of U.S. combed cotton yarn
imports from China was US$3.98 per kilogram. In the first three
months of 2005, the average unit value of those imports fell to
US$3.14 per kilogram, compared to US$3.31 per kilogram for ``rest of
world'' imports.
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
Men's and Boys' Cotton and Man-Made Fiber Shirts, Not Knit
Category 340/640
The United States believes that imports of Chinese origin men's and
boys' cotton and man-made fiber shirts, not knit, are, due to a
threat of market disruption, threatening to impede the orderly
development of trade in these products. This 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 this belief:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of men's and boys' cotton and man-made fiber
shirts, not knit, from China were 2,471,403 dozens for the entire
twelve months of 2004. In the first quarter of 2005, U.S. imports
from China were 1,921,894 dozens, an increase of 284 percent from
the first quarter of 2004, and a level of 78 percent of total
calendar year 2004 imports from China.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of men's and boys' cotton and man-made fiber
shirts, not knit, from all sources, excluding men's and boys' cotton
and man-made fiber shirts, not knit, containing U.S. components that
were imported under outward processing programs, increased from
9,570 thousand dozens in the first quarter of 2004 to 11,682
thousand dozens in the first quarter of 2005 - an increase of 22
percent. Two-thirds of this increase was attributable to imports
from China.
The Average Unit Value of Imports from China Is Falling in
2005. In 2004, the average unit value of U.S. men's and boys' cotton
and man-made fiber shirts, not knit, from China was US$84.66 per
dozen. In the first three months of 2005, the average unit value of
those imports fell to US$64.75 per dozen, compared to US$89.62 for
``rest of world'' imports.
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
Man-Made Fiber Knit Shirts and Blouses
Category 638/639
The United States believes that imports of Chinese origin man-made
fiber knit shirts
[[Page 30932]]
and blouses are, due to a threat of market disruption, threatening
to impede the orderly development of trade in these products. This
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 this belief:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of man-made fiber knit shirts and blouses from
China were 2,924,922 dozens for the entire twelve months of 2004. In
the first quarter of 2005, U.S. imports from China were 2,751,180
dozens, an increase of 328 percent from the first quarter of 2004,
and a level of 94 percent of total calendar year 2004 imports from
China.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of man-made fiber knit shirts and blouses from
all sources, excluding man-made fiber knit shirts and blouses
containing U.S. components that were imported under outward
processing programs, increased from 13,630 thousand dozens in the
first quarter of 2004 to 14,336 thousand dozens in the first quarter
of 2005 - an increase of 5 percent. The absolute increase in imports
from China in the first quarter of 2005 (2,109 thousand dozens) is
greater than the absolute increase in U.S. imports of this category
from the world as a whole (706 thousand dozens).
The Average Unit Value of Imports from China Is Falling in
2005. In 2004, the average unit value of U.S. man-made fiber knit
shirts and blouses from China was US$111.39 per dozen. In the first
three months of 2005, the average unit value of those imports fell
to US$71.72 per dozen, compared to US$60.67 per dozen for ``rest of
world'' imports.
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
Man-Made Fiber Trousers, Slacks and Shorts
Category 647/648
The United States believes that imports of Chinese origin man-made
fiber trousers, slacks and shorts are, due to a threat of market
disruption, threatening to impede the orderly development of trade
in these products. This 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
this belief:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of man-made fiber trousers, slacks and shorts
from China were 2,851,512 dozens for the entire twelve months of
2004. In the first quarter of 2005, U.S. imports from China were
2,328,112 dozens, an increase of 278 percent from the first quarter
of 2004, and a level of 82 percent of total calendar year 2004
imports from China.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of man-made fiber trousers, slacks and shorts
from all sources, excluding man-made fiber trousers, slacks and
shorts containing U.S. components that were imported under outward
processing programs, increased from 12,031 thousand dozens in the
first quarter of 2004 to 12,995 thousand dozens in the first quarter
of 2005 - an increase of 8 percent. The absolute increase in imports
from China in the first quarter of 2005 (1,713 thousand dozens) is
greater than the absolute increase in U.S. imports of this category
from the world as a whole (964 thousand dozens).
The Average Unit Value of Imports from China Is Falling in
2005. In 2004, the average unit value of U.S. man-made fiber
trousers, slacks and shorts imports from China was US$130.58 per
dozen. In the first three months of 2005, the average unit value of
those imports fell to US$68.76 per dozen compared to US$62.18 per
dozen for ``rest of world'' imports.
[FR Doc. 05-10841 Filed 5-27-05; 8:45 am]