[Federal Register Volume 66, Number 223 (Monday, November 19, 2001)]
[Notices]
[Pages 57943-57944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28827]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


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

November 14, 2001.
AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Denial of request alleging that yarns of cashmere and yarns of 
camel hair cannot be supplied by the domestic industry in commercial 
quantities in a timely manner.

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SUMMARY: On June 14, 2001 the Chairman of the Committee for the 
Implementation of Textile Agreements (CITA) received a petition from 
Amicale Industries, Inc., pursuant to Section 7.2 of Annex 300-B of the 
North American Free Trade Agreement (NAFTA), that certain yarns of 
camel hair and certain yarns of cashmere, 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

[[Page 57944]]

NAFTA rules of origin. The yarns are described as (1) Yarns of 
cashmere, singles, multiple or plied, of fiber 17.5 to 19 microns 
average diameter, of natural, bleached, or dyed fiber, of metric count 
9.7 or finer (3 run or finer), mule spun or frame spun. (2) Yarns of 
camel hair, singles, multiple or plied, of fiber 18 microns average 
diameter or finer, of bleached or dyed fiber, of metric count 16 or 
finer (5 run or finer), mule spun or frame spun.
    Such a proclamation may be made only after reaching agreement with 
other NAFTA countries on the modification. On June 27, 2001, CITA 
published a Federal Register notice (66 FR 34156) requesting public 
comments on this petition, in particular with regard to whether 
cashmere and camel hair yarn can be supplied by the domestic industry 
in commercial quantities in a timely manner.

FOR FURTHER INFORMATION CONTACT: Martin J. 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 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.

Background

    Under the 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 of 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 accompanies 
the NAFTA Implementation Act states 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 American 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 June 14, 2001 the Chairman of CITA received a petition from 
Amicale Industries, Inc. alleging that certain yarns of cashmere and of 
camel hair classified in heading 5108.10.60 of the 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. Amicale requested that the President proclaim 
that apparel articles of U.S. formed fabrics of such yarns be eligible 
for preferential treatment under the NAFTA.
    CITA solicited public comments regarding this request (66 FR 34156) 
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. The 
yarns are described as (1) Yarns of cashmere, singles, multiple or 
plied, of fiber 17.5 to 19 microns average diameter, of natural, 
bleached, or dyed fiber, of metric count 9.7 or finer (3 run or finer), 
mule spun or frame spun. (2) Yarns of camel hair, singles, multiple or 
plied, of fiber 18 microns average diameter or finer, of bleached or 
dyed fiber, of metric count 16 or finer (5 run or finer), mule spun or 
frame spun. The referenced yarns would produce woven fabrics for use in 
suits, coats and suit-type jackets classified under HTS subheadings 
6201.11, 6202.11, 6203.11, 6203.31, 6204.11 and 6204.41.
    On the basis of the public comments received, yarn of cashmere and 
yarn of camel hair appears to be spun in the United States and to be 
available from U.S. producers. One company in its submission claims to 
be currently spinning these yarns and another company claims to be 
currently having these yarns spun in both the United States and Mexico 
and is willing to supply Amicale. A third company claims it is able and 
willing to supply all but the 5 run camel hair yarn. Moreover, Amicale 
has the ability to produce these yarns. It appears that there is 
substantial U.S. production of these yarns and that the yarns can be 
supplied in commercial quantities.
    Based on its review of the petition and public comments received, 
CITA has determined to deny Amicale's petition. Amicale has not 
established that these yarns cannot be supplied by the domestic 
industry in commercial quantities in a timely manner. In fact, it 
appears that these yarns can be so supplied. As a result, consultations 
with Canada and Mexico will not be requested.

D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc.01-28827 Filed 11-16-01; 8:45 am]
BILLING CODE 3510-DR-S