[Federal Register Volume 66, Number 194 (Friday, October 5, 2001)]
[Notices]
[Pages 51024-51025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25091]


-----------------------------------------------------------------------

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Request for Public Comment on Short Supply Petition under the 
North American Free Trade Agreement (NAFTA)

October 2, 2001.
AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Request for Public Comments concerning a petition for 
modification of the NAFTA rules of origin for gimped yarn made from 
certain filament yarn of nylon.

-----------------------------------------------------------------------

FOR FURTHER INFORMATION CONTACT: Martin Walsh, International Trade 
Specialist, Office of Textiles and

[[Page 51025]]

Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

    Authority: Section 204 of the Agricultural Act of 1956, as 
amended (7 USC 1854); Section 202(q) of the North American Free 
Trade Agreement Implementation Act (19 USC 3332(q)); Executive Order 
11651 of March 3, 1972, as amended.

SUMMARY:

    On September 5, 2001 the Chairman of CITA received a petition from 
Unifi, Inc. (Unifi). alleging that certain untextured (flat) yarns of 
nylon classified under subheading 5402.41.90 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. The yarns are described as (1) of nylon, 7 denier/5 
filament nylon 66 untextured (flat) semi-dull yarn; miltifilament, 
untwisted or with a twist not exceeding 50 turns/m. (2) of nylon, 10 
denier/7 filament nylon 66 untextured (flat) semi-dull yarn; 
miltifilament, untwisted or with a twist not exceeding 50 turns/m. (3) 
of nylon, 12 denier/5 filament nylon 66 untextured (flat) semi-dull 
yarn; multifilament, untwisted or with a twist not exceeding 50 turns/
m.
    Unifi requests the the NAFTA rules of origin for gimped yarns 
classifed under subheading 5606.00 of the HTSUS be mofified to allow 
the use of non-North American yarns of the type described above.
    Such a proclamation may be made only after reaching agreement with 
the other NAFTA countries on the modification. CITA hereby solicits 
public comments on this petition, in particular with regard to whether 
the nylon yarns described above can be supplied by the domestic 
industry in commercial quantities in a timely manner. Comments must be 
submitted by November 5, 2001 to the Chairman, Committee for the 
Implementation of Textile Agreements, Room 3001, United States 
Department of Commerce, Washington, D.C. 20230.
    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 September 5, 2001 the Chairman of CITA received a petition from 
Unifi, Inc. (Unifi). alleging that certain untextured (flat) yarns of 
nylon classified under subheading 5402.41.90 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. The yarns are described as (1) of nylon 7 denier/5 
filament nylon 66 untextured (flat) semi-dull yarn; miltifilament, 
untwisted or with a twist not exceeding 50 turns/m/10 denier/ (2) of 
nylon, 7 filament nylon 66 untextured (flat) semi-dull yarn; 
miltifilament, untwisted or with a twist not exceeding 50/turns/m. (3) 
of nylon, 12 denier/5 filament nylon 66 untextured (flat) semi-dull 
yarn; multifilament, etc. Unifi uses these yarns in producing their 
gimped yarn, classified under 5606.00 of the HTSUS.
    CITA is soliciting public comments regarding this request, 
particularly with respect to whether the filament yarn of nylon, 
classified in HTSUS heading 5402.41.90, can be supplied by the domestic 
industry in commercial quantities in a timely manner. The petition 
states that Unifi has contacted known North American suppliers of these 
yarns and was unable to locate a supplier who produced the yarns in 
commercial quantities in a timely manner. Comments must be received no 
later than November 5, 2001. Interested persons are invited to submit 
six copies of such comments or information to the Chairman, Committee 
for the Implementation of Textile Agreements, room 3100, U.S. 
Department of Commerce, 14th and Constitution Avenue, N.W., Washington, 
DC 20230.
    If a comment alleges that the filament yarn of nylon can be 
supplied by the domestic industry in commercial quantities in a timely 
manner, CITA will closely review any supporting documentation, such as 
a signed statement by a manufacturer of the yarn stating that it 
produces the yarn that is in 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.
    CITA will protect any business confidential information that is 
marked business confidential from disclosure to the full extent 
permitted by law. CITA 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, N.W., 
Washington, DC 20230. Persons submitting 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. 01-25091 Filed 10-4-01; 8:45 am]
BILLING CODE 3510-DR-S