[Federal Register Volume 66, Number 44 (Tuesday, March 6, 2001)]
[Notices]
[Pages 13502-13504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5501]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Procedures in Considering Requests Under the Textile and Apparel 
``Short Supply'' Provisions of The African Growth and Opportunity Act 
and The United States-Caribbean Basin Trade Partnership Act

March 2, 2001.
AGENCY: Committee for the Implementation of Textile Agreements.

ACTION: Notice of Procedures.

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SUMMARY: This notice sets forth the procedures the Committee for the 
Implementation of Textile Agreements (the Committee) will follow in 
implementing certain provisions of the Trade and Development Act of 
2000 (the Act). Title I of the Act (the African Growth and Opportunity 
Act or the AGOA) and Title II of the Act (the United States-Caribbean 
Basin Trade Partnership Act or the CBTPA) provide for quota- and duty-
free treatment for qualifying textile and apparel products from 
designated beneficiary countries. Such treatment is generally limited 
to products manufactured from yarns or fabrics formed in the United 
States or a beneficiary country. However, the AGOA and the CBTPA 
authorize quota- and duty-free treatment for apparel

[[Page 13503]]

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 or a beneficiary country, provided 
the President has determined that such yarns or fabric cannot be 
supplied by the domestic industry in commercial quantities in a timely 
manner and has proclaimed such treatment. The President has delegated 
to the Committee the authority to determine whether yarns or fabrics 
cannot be supplied by the domestic industry in commercial quantities in 
a timely manner under the AGOA and the CBTPA and has ordered the 
Committee to establish procedures to ensure appropriate public 
participation in any such determination. The Committee hereby notifies 
interested parties of the procedures it will follow in considering 
requests.

EFFECTIVE DATE: March 6, 2001.

FOR FURTHER INFORMATION CONTACT: Philip J. Martello, Office of Textiles 
and Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

    Authority: Section 112(b)(5)(B) of the Act and Section 211 of 
the Act, amending Section 213(b)(2)(A)(v)(II) of the Caribbean Basin 
Economic Recovery Act; Sections 1 and 6 of Executive Order No. 13191 
of January 17, 2001.

Background

    The AGOA and the CBTPA provide for quota- and duty-free treatment 
for qualifying textile and apparel products. Such treatment is 
generally limited to products manufactured from yarns or fabrics formed 
in the United States or a beneficiary country. In addition, the AGOA 
provides for preferential treatment for apparel articles wholly 
assembled in one or more lesser developed beneficiary sub-Saharan 
African countries regardless of the country of origin of the fabric 
used to make such articles. Both the AGOA and the CBTPA provide for 
quota- and duty-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 or a beneficiary country, to the extent that apparel 
articles of such fabrics or yarns would be eligible for preferential 
treatment, without regard to the source of the fabric or yarn, under 
the rules of origin for the North American Free Trade Agreement.
    In addition, the AGOA and the CBTPA authorize quota- and duty-free 
treatment for apparel products assembled in a beneficiary country from 
yarn or fabric that cannot be supplied by the U.S. industry in 
commercial quantities in a timely manner. More specifically, the AGOA 
authorizes quota- and duty-free treatment for apparel articles that are 
both cut (or knit-to-shape) and sewn or otherwise assembled in one or 
more beneficiary sub-Saharan African countries from fabric or yarn that 
is not formed in the United States or a beneficiary sub-Saharan African 
country, provided the President has determined that such yarns or 
fabric cannot be supplied by the domestic industry in commercial 
quantities in a timely manner and has proclaimed such treatment. 
(Section 112(b)(5)(B) of the Act). Similarly, the CBTPA authorizes 
quota- and duty-free treatment for apparel articles that are both cut 
(or knit-to-shape) and sewn or otherwise assembled in one or more the 
CBTPA beneficiary countries from yarns or fabrics that are not formed 
in the United States or in one or more the CBTPA beneficiary countries, 
provided the President has determined that such yarns or fabric cannot 
be supplied by the domestic industry in commercial quantities in a 
timely manner and has proclaimed such treatment. (Section 211 of the 
Act, amending Section 213(b)(2)(A)(v)(II) of the Caribbean Basin 
Economic Recovery Act).
    Under these provisions (the Short Supply Provisions), interested 
parties may request that the President proclaim quota- and duty-free 
treatment for apparel articles assembled from a fabric or yarn that 
cannot be supplied by the domestic industry in commercial quantities in 
a timely manner. In order to proclaim such treatment, the Act requires 
the President to submit a report to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
within 60 calendar days of the request setting forth the proposed 
action to be proclaimed and the reasons for such actions. Moreover, 
within these 60 calendar days, the President must seek advice from the 
appropriate advisory committees and the U.S. International Trade 
Commission (USITC) and consult with the Congressional committees. The 
President may not proclaim quota- and duty-free treatment under the 
Short Supply Provisions until 60 calendar days after the report, 
including the advice obtained from the USITC and the appropriate 
advisory committees, has been submitted to the Congressional 
committees.
    In Executive Order No. 13191, the President delegated to the 
Committee the authority under the Short Supply Provisions to determine 
whether yarns or fabrics cannot be supplied by the domestic industry in 
commercial quantities in a timely manner and ordered the Committee to 
establish procedures to ensure appropriate public participation in any 
such determination. The Committee and the United States Trade 
Representative (USTR) were jointly authorized to obtain advice from the 
appropriate advisory committees, to submit a report to the 
Congressional committees cited above, and to consult with those 
Congressional committees. The USTR was authorized to obtain advice from 
the USITC. The Committee intends to comply with the following 
procedures in carrying out this authority.
    These agency procedures are not subject to the requirement to 
provide prior notice and opportunity for public comment, pursuant to 5 
U.S.C. 553(b)(A).

Procedures for Considering Requests

    The Committee will consider requests sent to Chairman, Committee 
for the Implementation of Textile Agreements, Room H3100, U.S. 
Department of Commerce, 14th and Constitution Avenue, NW., Washington, 
DC 20230. The Committee will consider only requests that address a 
single yarn or single fabric. The term ``a single yarn or single 
fabric'' means a single product, which may be classified in more than 
one heading of the Harmonized Tariff Schedule of the United States or 
may be only part of a heading.
    In considering requests, the Committee will consider of particular 
relevance the following information: (1) The requester's description of 
the yarn or fabric that is the subject of the request; (2) The basis 
for the requester's belief that the product cannot be supplied by the 
domestic industry in commercial quantities in a timely manner, which 
may include (if available) correspondence with manufacturers of the 
product that is the subject of the request, manufacturers of 
substitutable products, and/or manufacturers of similar products; (3) 
The basis for the requester's belief that other products that are 
supplied by the domestic industry in commercial quantities in a timely 
manner are not substitutable for the product that is the subject of the 
request for purposes of the intended use.
    Within seven days of receipt of a request, the Committee will 
determine whether the request provides the information necessary for 
the Committee to consider the request in light of the considerations 
set forth above. If the request does not, the Committee will promptly 
notify the

[[Page 13504]]

requester of the reasons for this determination, and the request will 
not be considered. However, the Committee will reevaluate any request 
that is resubmitted with additional information.
    If the Committee determines that the request provides the 
information necessary for the Committee to consider the request in 
light of the considerations set forth above, the Committee will cause 
to be published in the Federal Register a notice seeking public 
comments regarding the request, which will include a summary of the 
request and the date by which comments must be received. If a comment 
submitted alleges that the product can be supplied by a domestic 
manufacturer in commercial quantities in a timely manner, the Committee 
will closely review any supporting documentation, such as a signed 
statement by a manufacturer of the yarn or fabric stating that it 
produces the product that is the subject of the request, including the 
quantities that can be supplied and the time necessary to fill an 
order, as well as any relevant information regarding past production.
    Prior to determining that a fabric or yarn cannot be supplied by 
the domestic industry in commercial quantities in a timely manner, the 
Committee, working with the USTR, will seek advice from appropriate 
advisory committees established under section 135 of the Trade Act of 
1974 (19 U.S.C. 2155) and will consult with the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate; and USTR will obtain the advice of the USITC.
    With respect to any request considered by the Committee, the 
Committee will make a determination within 60 calendar days of receipt. 
If the Committee makes a negative determination, it will cause this 
determination and the reasons therefore to be published in the Federal 
Register. If the Committee makes an affirmative determination, it will 
submit a report to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate setting 
forth the action proposed to be proclaimed, the reasons for such 
action, and the advice obtained. In the event the President proclaims 
that a fabric or yarn is eligible for preferential treatment under the 
Short Supply Provisions, the Proclamation will be published in the 
Federal Register.

Business Confidential Information, Public Reading Room

    The Committee will protect any business confidential information 
that is marked business confidential from disclosure to the full extent 
permitted by law.
    As noted above, the Committee will cause to be published in the 
Federal Register a notice seeking public comments regarding a request 
that is being considered, a notice which will include a summary of the 
request. Moreover, the Committee will make available to the public non-
confidential versions of the request and non-confidential versions of 
any public comments received with respect to a request in room 3100 in 
the Herbert Hoover Building, 14th and Constitution Avenue, NW., 
Washington, DC 20230. Persons submitting a request or comments on a 
request are encouraged to include a non-confidential version and a non-
confidential summary.

D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc. 01-5501 Filed 3-2-01; 12:17 pm]
BILLING CODE 3510-DR-F