[Federal Register Volume 66, Number 122 (Monday, June 25, 2001)]
[Notices]
[Pages 33664-33665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15866]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Denial of Short Supply Request under the North American Free 
Trade Agreement (NAFTA)

June 20, 2001.
AGENCY: Committee for the Implementation of Textile Agreements (CITA)

ACTION: Denial of the petition for modification of the NAFTA rules of 
origin for products made from yarn of cashmere and yarn of camel hair.

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FOR FURTHER INFORMATION CONTACT: Martin Walsh, International Trade 
Specialist, Office of Textiles and Apparel, U.S. Department of 
Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

    Authority: Section 204 of the Agricultural Act of 1956, as 
amended (7 U.S.C. 1854); Section 202(q) of the North American Free 
Trade Agreement Implementation Act (19 U.S.C. 3332(q)); Executive 
Order 11651 of March 3, 1972, as amended.
      
SUMMARY:
    On February 28, 2001 the Chairman of CITA received a petition from 
Amicale Industries, Inc. alleging that yarn of cashmere and yarn of 
camel hair, classified in heading 5108.10.60 of the Harmonized Tariff 
Schedule of the United States (HTSUS), cannot be supplied by the 
domestic industry in commercial quantities in a timely manner and 
requesting that the President proclaim a modification of the NAFTA 
rules of origin. Such a proclamation may be made only after reaching 
agreement with the other NAFTA countries on the modification. As a 
result, CITA published a Federal Register Notice on March 12, 2001 (66 
FR 14358)) requesting public comments on the petition. These comments 
were due April 11, 2001. Based on current available information, CITA 
has determined that these products can be supplied by the domestic 
industry in commercial quantities in a timely manner and therefore 
denies the petition.
    BACKGROUND: Under the North American Free Trade Agreement (NAFTA), 
NAFTA countries are required to eliminate customs duties on textile and 
apparel goods that qualify as originating goods under the NAFTA rules 
of origin, which are set out in Annex 401 to the NAFTA. The NAFTA 
provides that the rules of origin for textile and apparel products may 
be amended through a subsequent agreement by the NAFTA countries. In 
consultations regarding such a change, the NAFTA countries are to 
consider issues of availability of supply of fibers, yarns, or fabrics 
in the free trade area and whether domestic producers are capable of 
supplying commercial quantities of the good in a timely manner. The 
Statement of Administrative Action (SAA) that accompanied the NAFTA 
Implementation Act stated that any interested person may submit to CITA 
a request for a modification to a particular rule of origin based on a 
change in the availability in North America of a particular fiber, yarn 
or fabric and that the requesting party would bear the burden of 
demonstrating that a change is warranted. The SAA provides that CITA 
may make a recommendation to the President regarding a change to a rule 
of origin for a textile or apparel good. The NAFTA Implementation Act 
provides the President with the authority to proclaim modifications to 
the NAFTA rules of origin as are necessary to implement an agreement 
with one or more NAFTA country on such a modification.
    On February 28, 2001 the Chairman of CITA received a petition from 
Amicale Industries, Inc. alleging that yarn of cashmere and yarn of 
camel hair, classified in HTSUS heading 5108.10.60, cannot be supplied 
by the domestic industry in commercial quantities in a timely manner 
and requesting that the President proclaim a modification of the NAFTA 
rules of origin. Amicale Industries requests that the NAFTA rules of 
origin for fabrics of HTSUS heading 5111 and for woven apparel of 
Chapter 62 be modified to permit the use of non-North American yarns of 
cashmere or yarns of camel hair classified in HTS heading 5108.10.60.
    CITA solicited public comments regarding this request (66 FR 14358, 
published on March 12, 2001) particularly with respect to whether yarn 
of cashmere and yarn of camel hair, classified in HTSUS heading 
5108.10.60, can be supplied by the domestic industry in commercial 
quantities in a timely manner.
    On the basis of currently available information, CITA has 
determined that yarn of cashmere and yarn of camel hair is spun in the 
United States and is available from U.S. producers in commercial 
quantities in a timely manner. Two companies in their submissions claim 
that they currently spin the yarns in question. Two other companies in 
their submissions claim to have the spinning capacity to produce these 
yarns. One company in its submission claims it supplies cashmere and 
camel hair fibers to companies that spin it into yarn and claims that 
three additional companies are capable of supplying cashmere and camel 
hair yarn to the petitioner.
    Based on currently available information, CITA has determined that 
Amicale's petition should be denied. Amicale has not established that 
these yarns cannot be supplied by the domestic industry in commercial 
quantities in a timely manner. Currently available information 
indicates that the

[[Page 33665]]

domestic industry is able to supply these yarns in commercial 
quantities in a timely manner.

D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc.01-15866 Filed 6-22-01; 8:45 am]
BILLING CODE 3510-DR-S