[Federal Register Volume 64, Number 170 (Thursday, September 2, 1999)]
[Rules and Regulations]
[Pages 48091-48092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23032]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 12

[T.D. 99-68]
RIN 1515-AC49


Textiles and Textile Products; Denial of Entry

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to provide that 
textiles and textile products that are covered by textile trade 
agreements negotiated under section 204 of the Agricultural Act of 
1956, as amended, will be denied entry if entry documents show that the 
textiles or textile products have been produced at certain factories 
that are named in a Directive published in the Federal Register by the 
Committee for the Implementation of Textile Agreements (CITA) as 
companies found to be illegally transshipping, closed or unable to 
produce records to verify production. The purpose of this action is to 
avoid the circumvention of textile trade agreements.

EFFECTIVE DATE: September 2, 1999.

FOR FURTHER INFORMATION CONTACT: William Trujillo, Office of Field 
Operations, 202-927-1959.

SUPPLEMENTARY INFORMATION:

Background

    In order to implement import policies with respect to textiles and 
textile products, Congress provided authority to the President to 
negotiate textile agreements in section 204 of the Agricultural Act of 
1956, as amended (7 U.S.C. 1854), and authority to issue regulations 
governing the entry of such products to carry out any such agreement. 
The Committee for the Implementation of Textile Agreements (CITA) was 
established by Executive Order 11651 on March 3, 1972 to supervise the 
implementation of textile trade agreements. Section 2(a) of that 
Executive Order requires the Commissioner of Customs to take such 
actions as CITA, through its Chairman, shall recommend to carry out 
those agreements.
    Moreover, Executive Order 12475 of May 9, 1984, directed the 
Secretary of the Treasury, in accordance with policy guidance provided 
by CITA through its Chairman, to issue regulations governing the entry 
of textiles and textile products subject to section 204 of the 
Agricultural Act of 1956, as amended, to the extent necessary to 
implement more effectively the United States textile program.
    In 1995, the World Trade Organization Agreement on Textiles and 
Clothing (ATC) entered into force with respect to the United States. 
Article 5 of the ATC recognizes that circumvention of textile and 
textile product quotas, including through illegal transshipment of 
textiles and textile products from one country through another, 
frustrates the implementation of that Agreement.
    Customs has attempted to combat illegal transshipment through 
various efforts, including on-site production verification visits and 
working with foreign governments and the domestic textile and apparel 
industry.
    If, during a textile production verification visit, Customs finds 
that a textile manufacturer, factory, or producer shown on U.S. entry 
documents is closed, or engages in illegal transshipment, or is unable 
to provide adequate proof of production for previous shipments of 
merchandise to the United States, in accordance with Sec. 12.130(g), 
Customs Regulations (19 CFR 12.130(g)), Customs may require additional 
information from importers claiming their shipments were manufactured 
at the factory in question.
    On July 27, 1999, the Chairman of CITA directed the Commissioner of

[[Page 48092]]

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. This document amends the Customs 
Regulations accordingly.
    Customs will deny entry to textiles and textile products subject to 
section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 
1854), where the factory, producer or manufacturer is named in a 
Directive issued by CITA to Customs that is published in the Federal 
Register. In these circumstances, additional information will not be 
accepted or considered by Customs for purposes of determining the 
admissibility of the textiles or textile products in question.

The Regulatory Flexibility Act, Executive Order 12866 and 
Inapplicability of Public Notice and Comment and Delayed Effective 
Date Requirements

    In accordance with the provisions of 5 U.S.C. 553(a)(1), prior 
public notice and comment procedures are inapplicable to this 
regulation. This regulation is promulgated pursuant to section 204 of 
the Agricultural Act of 1956, as amended (7 U.S.C. 1854), and is thus 
within the foreign affairs function of the United States. This 
regulation is necessary in order to prevent circumvention or 
frustration of bilateral and multilateral agreements to which the 
United States is a party and to facilitate efficient and equitable 
administration of the U.S. textile import program as authorized in 
section 204. The authority to promulgate this regulation was delegated 
by the President to the Secretary of the Treasury by Executive Order 
12475. Since this document is not subject to the requirements of 5 
U.S.C. 553, it is not subject to the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). Nor does the amendment result 
in a ``significant regulatory action'' under E.O. 12866.

List of Subjects in 19 CFR Part 12

    Customs duties and inspection, Entry of merchandise, Imports, 
Reporting and recordkeeping requirements, Textiles and textile 
products, Trade agreements.

Amendment to the Regulations

    Part 12, Customs Regulations (19 CFR part 12), is amended as set 
forth below.

PART 12--SPECIAL CLASSES OF MERCHANDISE

    1. The authority citation for part 12 continues to read in part as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624.
* * * * *
    Sections 12.130 and 12.131 also issued under 7 U.S.C. 1854;
* * * * *
    2. Section 12.131 is amended by designating the existing text as 
paragraph (a), and by adding a heading to newly designated paragraph 
(a), and adding a new paragraph (b) to read as follows:


Sec. 12.131  Entry of textiles and textile products.

    (a) General. * * *
    (b) Denial of entry pursuant to directive. Textiles and textile 
products subject to section 204 of the Agricultural Act of 1956, as 
amended (7 U.S.C. 1854), whether or not the requirements set forth in 
Sec. 12.130 have been met, will be denied entry where the factory, 
producer or manufacturer named in the entry documents for such textiles 
or textile products is named in a directive published in the Federal 
Register by the Committee for the Implementation of Textile Agreements 
as a company found to be illegally transshipping, closed or unable to 
produce records to verify production. In these circumstances, no 
additional information will be accepted or considered by Customs for 
purposes of determining the admissibility of such textiles or textile 
products.

    Approved: August 20, 1999.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 99-23032 Filed 8-31-99; 2:28 pm]
BILLING CODE 4820-02-P