[Federal Register Volume 64, Number 146 (Friday, July 30, 1999)]
[Notices]
[Page 41395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19610]



[[Page 41395]]

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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Regulations to Prevent Circumvention of Textiles and Textile 
Products Agreements

July 27, 1999.
AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Issuing a directive to the Commissioner of Customs directing 
Customs to issue regulations regarding the denial of entry of shipments 
from companies determined to be illegally transshipping.

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FOR FURTHER INFORMATION CONTACT: Janet Heinzen, International Trade 
Specialist, Office of Textiles and Apparel, U.S. Department of 
Commerce, (202) 482-4212.

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; Executive Order 12475 of May 9, 1984, as amended.

    Under Title 19, Section 12.130 of the Code of Federal Regulations, 
U.S. Customs is required to make a country of origin determination of 
textiles and textile products. Such determination may be made on the 
basis of information provided by the importer or, at the discretion of 
U.S. Customs, on the best information available. In order to develop 
such information, U.S. Customs often has conducted on-site verification 
of production in foreign countries.
    The Chairman of CITA has authorized U.S. Customs to deny entry of 
certain textiles and textile products subject to Section 204 of the 
Agricultural Act of 1956 if U.S. Customs on-site verification of 
production is not permitted (see Federal Register notice 61 FR 33793, 
published on June 28, 1996). Based on information obtained, including 
through on-site verifications, U.S. Customs reports that some companies 
have been found to be illegally transshipping, have been closed, or 
have been unable to produce records to verify production. In order to 
secure compliance with U.S. law, including Section 204 and U.S. customs 
law, to carry out textile and textile product agreements, and to avoid 
circumvention of textile agreements, CITA directs the Commissioner of 
Customs as soon as possible to issue regulations permitting U.S. 
Customs to deny entry to textiles and textile products where the 
declared manufacturer has been named in a CITA directive as a company 
found to be illegally transshipping, closed or unable to produce 
records to verify production.
    In future directives, the Chairman of CITA may direct U.S. Customs 
to deny entry to textiles and textile products allegedly manufactured 
in companies found to be illegally transshipping, closed, or unable to 
produce records to verify production. CITA will publish such 
directives, including the names of such companies, in the Federal 
Register.
Troy H. Cribb
Chairman, Committee for the implementation of Textile Agreements

Committee for the Implementation of Textile Agreements
July 27, 1999.

Commissioner of Customs
Department of Treasury, Washington, DC 20229

    Dear Commissioner: Under Title 19, Section 12.130 of the Code of 
Federal Regulations, U.S. Customs is required to make a country of 
origin determination of textiles and textile products. Such 
determination may be made on the basis of information provided by 
the importer or, at the discretion of U.S. Customs, on the best 
information available. In order to develop such information, U.S. 
Customs has often conducted on-site verification of production in 
foreign countries.
    The Chairman of the Committee for the Implementation of Textile 
Agreements (CITA) has authorized the Commissioner of Customs to deny 
entry of certain textiles and textile products subject to Section 
204 of the Agricultural Act of 1956 if U.S. Customs on-site 
verification of production is not permitted (see 61 FR 33793, dated 
June 24, 1996). Based on information obtained, including through on-
site verifications, U.S. Customs reports that some companies have 
been found to be illegally transshipping, have been closed, or have 
been unable to produce records to verify production. In order to 
secure compliance with U.S. law, including Section 204 and U.S. 
customs law, to carry out textile and textile product agreements, 
and to avoid circumvention of textile agreements, CITA directs the 
Commissioner of Customs, as soon as possible, to issue regulations 
permitting U.S. Customs to deny entry to textiles and textile 
products where the declared manufacturer has been named in a CITA 
directive as a company found to be illegally transshipping, closed 
or unable to produce records to verify production.
    In future directives, the Chairman of CITA may direct U.S. 
Customs to deny entry to textiles and textile products allegedly 
manufactured in companies found to be illegally transshipping, 
closed, or unable to produce records to verify production. CITA will 
publish such directives, including the names of such companies, in 
the Federal Register.
    CITA has determined that these actions fall within the foreign 
affairs exception of the rulemaking provisions of 5 U.S.C. 
553(a)(1).
    Sincerely,
Troy H. Cribb
Chairman, Committee for the Implementation of Textile Agreements
[FR Doc. 99-19610 Filed 7-29-99; 8:45 am]
BILLING CODE 3510-DR-F