[Federal Register: September 6, 2005 (Volume 70, Number 171)]
[Notices]
[Page 52994-52996]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06se05-48]
=======================================================================
-----------------------------------------------------------------------
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 Brassieres and
Other Body Supporting Garments (Category 349/649) and Other Synthetic
Filament Fabric (Category 620), Produced or Manufactured in the
People's Republic of China
September 1, 2005.
AGENCY: Committee for the Implementation of Textile Agreements
(Committee).
ACTION: Notice
-----------------------------------------------------------------------
EFFECTIVE DATE: August 31, 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 August 31, 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 cotton and man-made fiber
brassieres and other body supporting garments (Category 349/649) and
other synthetic filament fabric (Category 620).
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 August 31, 2005 (i.e., by a ratio
of 123/365). 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 349/649 and 620,
beginning on August 31, 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
[[Page 52995]]
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
349/649 and 620 were, due to the threat of market disruption,
threatening to impede the orderly development of trade in these
products. Solicitation of Public Comments on Request for Textile and
Apparel Safeguard Action on Imports from China, (69 FR 70661 (Dec. 7,
2004) (Category 620) & 69 FR 77998 (Dec. 29, 2004) (Category 349/649).
The Committee solicited public comments with regard to whether imports
of Chinese-origin textiles and textile products in Categories 349/649
and 620 were, due to actual market disruption, threatening to impede
the orderly development of trade in these products. Solicitation of
Public Comments on Request for Textile and Apparel Safeguard Action on
Imports from China, 70 FR 23113 (May 4, 2005) (Category 349/649) & 70
FR 23124 (May 4, 2005) (Category 620).
On December 30, 2004, the United States Court of International
Trade preliminarily enjoined the members of the Committee from
considering or taking any further action on this request 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, 350
F. Supp. 2d 1342 (CIT 2004). On April 27, 2005, the United States Court
of Appeals for the Federal Circuit granted the U.S. government's motion
for a stay of that injunction and ultimately reversed the preliminary
injunction. U.S. Association of Importers of Textiles and Apparel v.
United States, Ct. No. 05-1209, 413 F.3d 1344 (Fed. Cir. June 28,
2005). Thus, the Committee resumed 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 349/649 and 620, are, due to the
existence of market disruption and the 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 349/649 and 620 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 (refer to the Office of Textiles
and Apparel website at http://otexa.ita.doc.gov).
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
Committee for the Implementation of Textile Agreements
September 1, 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 August 31, 2005, entry into the United States for
consumption and withdrawal from warehouse for consumption of
Chinese-origin cotton and man-made fiber brassieres and other body
supporting garments (Category 349/649) and other synthetic filament
fabric (Category 620), produced or manufactured in the People's
Republic of China and exported during the period beginning on August
31, 2005, and extending through December 31, 2005, in excess of the
following limits.
------------------------------------------------------------------------
Category Quantity
------------------------------------------------------------------------
349/649................................... 7,275,216 dozen.
620....................................... 12,328,306 square meters.
------------------------------------------------------------------------
Products which have been exported to the United States prior to
August 31, 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,
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
SUMMARY OF 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 Brassieres and Other Body Supporting Garments
Category 349/649
The United States believes that imports of Chinese-origin cotton and
man-made fiber brassieres and other body supporting garments are,
due to the existence of market disruption, threatening to impede the
orderly development of trade in these products. Further, the United
States believes that imports of Chinese-origin cotton and man-made
fiber brassieres and other body supporting garments are, due to the
threat of market disruption, threatening to impede the orderly
development of trade in these products. 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 cotton and man-made fiber brassieres and
other body supporting garments from China were 17,734,954 dozens for
the entire twelve months of 2004. In the first half of 2005, U.S.
imports from China increased to 11,139,910, an increase of 35
percent from the first half of 2004.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of cotton and man-made fiber brassieres and
other body supporting garments from all sources, excluding cotton
and man-made fiber brassieres and other body supporting garments
containing U.S. components that were imported under outward
processing programs, increased from 19,381 thousand dozens in the
first half of 2004 to 21,043 thousand dozens in the first half of
2005 - an increase of 9 percent. The absolute increase in imports
from China in the first half of 2005 (2,908 thousand dozens) is
greater than the absolute increase in U.S. imports of this category
from the world as a whole (1,663 thousand dozens).
The Average Unit Value of Imports from China is Significantly
Lower Than Rest of World in 2005. In the first half of 2005, the
average unit value of U.S. cotton and man-made fiber brassieres and
other body supporting garment imports from China was US$31.17 per
dozen, compared to US$50.25 per dozen for ``rest of world'' imports.
The U.S. Brassieres and Other Body Supporting Garments Industry
is Vulnerable to Increasing Imports. U.S. production fell by 2
percent between the first quarter of 2004 and the first quarter of
2005, while the share of the market held by U.S. producers fell by 3
percentage points during this period.
[[Page 52996]]
SUMMARY OF 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
Other Synthetic Filament Fabric
Category 620
The United States believes that imports of Chinese-origin other
synthetic filament fabric are, due to the existence of market
disruption, threatening to impede the orderly development of trade
in these products. Further, the United States believes that imports
of Chinese-origin other synthetic filament fabric are, due to the
threat of market disruption, threatening to impede the orderly
development of trade in these products. 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 other synthetic filament fabric from China
were 5,895,247 square meters for the entire twelve months of 2004.
In the period January-June 2005, U.S. imports from China increased
to 39,973,330 square meters, an increase of 1,185 percent from the
January-June 2004 level.
U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of other synthetic filament fabric from all
sources increased from 135,921 thousand square meters in January-
June 2004 to 256,020 thousand square meters in January-June 2005 -
an increase of 88 percent. Over thirty percent 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. other synthetic
filament fabric imports from China was US$2.36 per square meter. In
the period January-June 2005, the average unit value of those
imports fell to US$0.70 per square meter compared to US$0.77 per
square meter for ``rest of world'' imports.
The U.S. Other Synthetic Filament Fabric Industry is Vulnerable
to Increasing Imports. U.S. production fell by 13 percent between
the first quarter of 2004 and the first quarter of 2005, while the
share of the market held by U.S. producers fell by 15 percentage
points during this period.
[FR Doc. 05-17692 Filed 9-1-05; 12:04 pm]
BILLING CODE 3510-DS-S