[Federal Register: October 5, 2005 (Volume 70, Number 192)]
[Notices]               
[Page 58190-58192]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05oc05-49]                         

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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

 
Designations under the Textile and Apparel Commercial 
Availability Provision of the United States-Caribbean Basin Trade 
Partnership Act (CBTPA) and the Andean Trade Promotion and Drug 
Eradication Act (ATPDEA)

September 29, 2005.
AGENCY: The Committee for the Implementation of Textile Agreements 
(CITA)

ACTION: Designation.

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EFFECTIVE DATE: October 5, 2005.
SUMMARY: CITA has determined that certain compacted, plied, ring spun 
cotton yarns, with yarn counts in the range from 42 to 102 metric, 
classified in subheadings 5205.42.0020, 5205.43.0020, 5205.44.0020, 
5205.46.0020, and 5205.47.0020 of the Harmonized Tariff Schedule of the 
United States (HTSUS), for use in U.S. formed fabric used in men's and 
boys' woven cotton trousers and shirts, and women's and girls' woven 
cotton trousers, shirts, and blouses, cannot be supplied by the 
domestic industry in commercial quantities in a timely manner under the 
CBTPA and ATPDEA. CITA hereby designates such apparel articles, that 
are both cut and sewn or otherwise assembled in one or more eligible 
CBTPA beneficiary country from U.S. formed fabrics containing such 
yarns, as eligible to enter free of quotas and duties under HTSUS 
subheading 9820.11.27, provided all other yarns used in the apparel 
articles are U.S. formed and all other fabrics used in the apparel 
articles are U.S. formed from yarns wholly formed in the United States. 
CITA also hereby designates such yarns as eligible under HTSUS 
subheading 9821.11.10, if used in the referenced apparel articles, that 
are sewn or otherwise assembled in one or more eligible ATPDEA 
beneficiary countries from U.S. formed fabrics containing such yarns. 
The referenced apparel articles from U.S. formed fabrics containing 
such yarns shall be eligible to enter free of quotas and duties under 
this subheading, provided all other yarns used in the apparel articles 
are U.S. formed and all other fabrics used in the apparel articles are 
U.S. formed from yarns wholly formed in the United States. CITA notes 
that this designation under the ATPDEA renders apparel articles, sewn 
or otherwise assembled in one or more eligible ATPDEA beneficiary 
countries, containing such yarns as eligible for quota-free and duty-

[[Page 58191]]

free treatment under HTSUS subheading 9821.11.13, provided the 
requirements of that subheading are met.

FOR FURTHER INFORMATION CONTACT: Richard Stetson, Office of Textiles 
and Apparel, U.S. Department of Commerce, (202) 482-2582.

SUPPLEMENTARY INFORMATION:

    Authority: Section 213(b)(2)(A)(v)(II) of the Caribbean Basin 
Economic Recovery Act, as added by Section 211(a) of the CBTPA (19 
U.S.C. 2703(b)(2)(A)(v)(II)); Section 6 of Executive Order No. 13191 
of January 17, 2001; Presidential Proclamation 7351 of October 2, 
2000; Section 204 (b)(3)(B)(ii) of the ATPDEA (19 U.S.C. 
3203(b)(3)(B)(ii)); Presidential Proclamation 7616 of October 31, 
2002, Executive Order 13277 of November 19, 2002, and the United 
States Trade Representative's Notice of Further Assignment of 
Functions of November 25, 2002.

BACKGROUND:

    The commercial availability provisions of the CBTPA and the ATPDEA 
provide for duty-free and quota-free treatment for apparel articles 
that are both cut (or knit-to-shape) and sewn or otherwise assembled in 
one or more beneficiary countries from fabric or yarn that is not 
formed in the United States if it has been determined that such yarns 
or fabrics cannot be supplied by the domestic industry in commercial 
quantities in a timely manner and certain procedural requirements have 
been met. In Presidential Proclamation 7351 of October 4, 2000 and in 
Presidential Proclamation 7616 of October 31, 2002, the President 
proclaimed that this treatment would apply to such apparel articles 
from fabrics or yarns designated by the appropriate U.S. government 
authority in the Federal Register. In Section 6 of Executive Order No. 
13191 of January 17, 2001; Executive Order 13277 of November 19, 2002; 
and the United States Trade Representative's Notice of Further 
Assignment of Functions of November 25, 2002, the CITA was authorized 
to determine whether yarns or fabrics cannot be supplied by the 
domestic industry in commercial quantities in a timely manner under the 
CBTPA and the ATPDEA.
    On May 23, 2005, the Chairman of CITA received a petition from AM&S 
Trade Service, L.L.P., on behalf of their client, Galey and Lord, Inc., 
alleging that certain compacted, plied, ring spun cotton yarns, with 
yarn counts in the range from 42 to 102 metric, classified in HTSUS 
subheadings 5205.42.0020, 5205.43.0020, 5205.44.0020, 5205.46.0020, 
5205.47.0020, cannot be supplied by the domestic industry in commercial 
quantities in a timely manner. It requested duty-free treatment under 
the CBTPA and the ATPDEA for men's and boys' woven cotton trousers and 
shirts and women's and girls' woven cotton trousers, shirts, and 
blouses that are both cut (or knit-to-shape) and sewn in one or more 
eligible CBTPA or ATPDEA beneficiary countries from U.S.-formed fabrics 
containing such yarns. On May 25, 2005, CITA published a Federal 
Register notice requesting public comment on the petition. See Request 
for Public Comments on Commercial Availability Petition under the 
United States-Caribbean Basin Trade Partnership Act (CBTPA) and the 
Andean Trade Promotion and Drug Eradication Act (ATPDEA), 70 FR 30705 
(May 25, 2005). On June 16, 2005, CITA and the Office of the U.S. Trade 
Representative (USTR) sent memoranda seeking the advice of the Industry 
Trade Advisory Committee (ITAC) for Textiles and Clothing and the ITAC 
for Distribution Services. No advice was received from either ITAC. On 
June 16, 2005, CITA and USTR sent memoranda offering to consult with 
the Senate Finance Committee and the House Committee on Ways and Means. 
No consultations were requested on this petition. USTR requested the 
advice of the U.S. International Trade Commission (ITC) on the probable 
economic effects on the domestic industry of granting the petition.
    Based on the information and advice received and its understanding 
of the industry, CITA determined that the yarns set forth in the 
request cannot be supplied by the domestic industry in commercial 
quantities in a timely manner. On July 22, 2005, the CITA and USTR 
submitted a report to the Congressional Committees that set forth the 
action proposed, the reasons for such action, and advice obtained. A 
period of 60 calendar days since this report was submitted has expired, 
as required by the CBTPA and ATPDEA.
    CITA hereby designates men's and boys' woven cotton trousers and 
shirts, and women's and girls' woven cotton trousers, shirts, and 
blouses, made from U.S. formed fabrics containing certain compacted, 
plied, ring spun cotton yarns, with yarn counts in the range from 42 to 
102 metric, classified in HTSUS subheadings 5205.42.0020, 5205.43.0020, 
5205.44.0020, 5205.46.0020, and 5205.47.0020, that are sewn or 
otherwise assembled in an eligible CBTPA beneficiary country, as 
eligible to enter free of quotas and duties under HTSUS subheading 
9820.11.27. However, all other yarns used in the referenced apparel 
articles must be U.S. formed and all other fabrics used in the 
referenced apparel articles must be U.S. formed from yarns wholly 
formed in the United States, subject to the special rules for findings 
and trimmings, certain interlinings and de minimis fibers and yarns 
under section 213(b)(2)(A)(vii) of CBERA (19 U.S.C. 
2703(b)(2)(A)(vii)), and that such articles are imported directly into 
the customs territory of the United States from an eligible CBTPA 
beneficiary country.
    An ``eligible CBTPA beneficiary country'' means a country which the 
President has designated as a CBTPA beneficiary country under section 
213(b)(5)(B) of the CBERA (19 U.S.C. 2703(b)(5)(B)) and which has been 
the subject of a finding, published in the Federal Register, that the 
country has satisfied the requirements of section 213(b)(4)(A)(ii) of 
the CBERA (19 U.S.C. 2703(b)(4)(A)(ii)) and resulting in the 
enumeration of such country in U.S. note 1 to subchapter XX of Chapter 
98 of the HTSUS.
    CITA also hereby designates such yarns as eligible under HTSUS 
subheading 9821.11.10, if used in men's and boys' woven cotton trousers 
and shirts, and women's and girls' woven cotton trousers, shirts, and 
blouses, sewn or otherwise assembled in one or more eligible ATPDEA 
beneficiary country from U.S. formed fabric containing such yarns. Such 
apparel containing such yarns shall be eligible to enter free of quotas 
and duties under this subheading, provided all other yarns used in the 
referenced apparel articles are U.S. formed and all other fabrics used 
in the referenced apparel articles are U.S. formed from yarns wholly 
formed in the United States, subject to the special rules for findings 
and trimmings, certain interlinings and de minimis fibers and yarns 
under section 204(b)(3)(B)(vi) of the ATPDEA, and that such articles 
are imported directly into the customs territory of the United States 
from an eligible ATPDEA beneficiary country.
    An ``eligible ATPDEA beneficiary country'' means a country which 
the President has designated as an ATPDEA beneficiary country under 
section 203(a)(1) of the Andean Trade Preference Act (ATPA) (19 U.S.C. 
3202(a)(1)), and which has been the subject of a finding, published in 
the Federal Register, that the country has satisfied the requirements 
of section 203(c) and (d) of the ATPA (19 U.S.C. 3202(c) and (d)), 
resulting in the enumeration of such country in U.S.

[[Page 58192]]

note 1 to subchapter XXI of Chapter 98 of the HTSUS.

James C. Leonard III,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 05-20115 Filed 10-4-05; 8:45 am]

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