[Federal Register Volume 66, Number 223 (Monday, November 19, 2001)]
[Notices]
[Pages 57942-57943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28826]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Designations under the Textile and Apparel Short Supply 
Provisions of the African Growth and Opportunity Act (AGOA) and the 
United States-Caribbean Basin Trade Partnership Act (CBTPA)

November 13, 2001.
AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Determination

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SUMMARY: The Committee for the Implementation of Textile Agreements 
(Committee) has determined, under the AGOA and CBTPA, that rayon 
filament yarn, classified in subheading 5403.31 and 5403.32 of the 
Harmonized Tariff Schedule of the United States (HTS) for use in fabric 
for apparel, cannot be supplied by the domestic industry in commercial 
quantities in a timely manner. The Committee hereby designates apparel 
articles that are both cut (or knit-to-shape) and sewn or otherwise 
assembled in an eligible country, from fabric formed in the United 
States containing rayon filament yarn not formed in the United States, 
as eligible for quota-free and duty-free treatment under the textile 
and apparel

[[Page 57943]]

short supply provisions of the AGOA and the CBTPA, and eligible under 
HTS subheadings 9819.11.24 or 9820.11.27 to enter free of quotas and 
duties, provided all other yarns are U.S. formed and all other fabrics 
are U.S. formed from yarns wholly formed in the U.S.

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 AGOA and Section 211 of 
the CBTPA, amending Section 213(b)(2)(A)(v)(II) of the Caribbean 
Basin Economic Recovery Act (CBERA); Presidential Proclamations 7350 
and 7351 of October 2, 2000; Executive Order No. 13191 of January 
17, 2001.

Background

    The short supply provision of the AGOA provides for duty-free and 
quota-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 if it 
has been determined that such yarns or fabrics cannot be supplied by 
the domestic industry in commercial quantities in a timely manner and 
certain procedural requirements have been met. In Presidential 
Proclamation 7350, the President proclaimed that this treatment would 
apply to such apparel articles from fabrics or yarns designated by the 
appropriate U.S. government authority in the Federal Register. In 
Executive Order 13191, the President authorized the Committee to 
determine whether particular yarns or fabrics cannot be supplied by the 
domestic industry in commercial quantities in a timely manner under the 
AGOA.
    Similarly, the short supply provision of the CBTPA provides for 
duty-free and quota-free treatment for apparel articles that are both 
cut (or knit-to-shape) and sewn or otherwise assembled in one or more 
beneficiary CBTPA country from fabric or yarn that is not formed in the 
United States or a beneficiary CBTPA country if it has been determined 
that such yarns or fabrics cannot be supplied by the domestic industry 
in commercial quantities in a timely manner and certain procedural 
requirements have been met. In Presidential Proclamation 7351, the 
President proclaimed that this treatment would apply to such apparel 
articles from fabrics or yarns designated by the appropriate U.S. 
government authority in the Federal Register. In Executive Order 13191, 
the President authorized the Committee to determine whether particular 
yarns or fabrics cannot be supplied by the domestic industry in 
commercial quantities in a timely manner.
    On May 23, 2001, the Committee received a petition alleging that 
rayon filament yarn, classified in subheading 5403.31 and 5403.32 of 
the HTS for use in fabric for apparel, cannot be supplied by the 
domestic industry in commercial quantities in a timely manner under the 
AGOA and CBTPA and requesting that apparel articles from U.S. formed-
fabric containing such yarns be eligible for preferential treatment 
under the AGOA and CBPTA. On May 31, 2001, the Committee requested 
public comment on the petition (66 FR 29549). On June 18, 2001, the 
Committee and the U.S. Trade Representative (USTR) sought the advice of 
the Industry Sector Advisory Committee for Wholesaling and Retailing 
and the Industry Sector Advisory Committee for Textiles and Apparel 
(collectively, the ISACs). On June 19, 2001, the Committee and USTR 
offered to hold consultations with the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
(collectively, the Congressional Committees). On July 9, 2001, the U.S. 
International Trade Commission (USITC) provided advice on the petition. 
Based on the information and advice received and its understanding of 
the industry, the Committee determined that the yarn set forth in the 
petition cannot be supplied by the domestic industry in commercial 
quantities in a timely manner. On July 19, 2001, the Committee and USTR 
submitted a report to the Congressional Committees that set forth the 
action proposed, the reasons for such action, and advice obtained. A 
period of 60 calendar days since this report was submitted has expired, 
as required by the AGOA and CBTPA.
    The Committee hereby designates as eligible for preferential 
treatment under subheading 9819.11.24 of the HTS (for purposes of the 
AGOA), and under subheading 9820.11.27 of the HTS (for purposes of the 
CBTPA), apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more eligible beneficiary sub-Saharan 
African countries, or one or more eligible CBTPA beneficiary countries, 
from fabric formed in the United States containing rayon filament yarn 
not formed in the United States, provided that all other yarns are 
wholly formed in the United States and that all other fabrics are 
wholly formed in the United States from yarns wholly formed in the 
United States, that are imported directly into the customs territory of 
the United States from an eligible beneficiary sub-Saharan African 
country or an eligible CBTPA beneficiary country.
    An ``eligible beneficiary sub-Saharan African country'' means a 
country which the President has designated as a beneficiary sub-Saharan 
African country under section 506A of the Trade Act of 1974 (19 U.S.C. 
2466a) and which has been the subject of a finding, published in the 
Federal Register, that the country has satisfied the requirements of 
section 113 of the AGOA (19 U.S.C. 3722) and resulting in the 
enumeration of such country in U.S. note 1 to subchapter XIX of chapter 
98 of the HTS. An ``eligible CBTPA beneficiary country'' means a 
country which the President has designated as a CBTPA beneficiary 
country under section 213(b)(5)(B) of the CBERA (19 U.S.C. 
2703(b)(5)(B)) and which has been the subject of a finding, published 
in the Federal Register, that the country has satisfied the 
requirements of section 213(b)(4)(A)(ii) of the CBERA (19 U.S.C. 
2703(b)(4)(A)(ii)) and resulting in the enumeration of such country in 
U.S. note 1 to subchapter XX of chapter 98 of the HTS.

D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc.01-28826 Filed 11-16-01; 8:45 am]
BILLING CODE 3510-DR-S