[Federal Register Volume 68, Number 248 (Monday, December 29, 2003)]
[Notices]
[Pages 74945-74947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-32032]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Announcement of Request for Bilateral Textile Consultations with 
the Government of the People's Republic of China and the Establishment 
of an Import Limit for Brassieres and Other Body Supporting Garments, 
Category 349/649, Produced or Manufactured in the People's Republic of 
China

December 23, 2003.
AGENCY: Committee for the Implementation of Textile Agreements 
(Committee).

ACTION: Notice

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EFFECTIVE DATE: December 24, 2003.

FOR FURTHER INFORMATION CONTACT: Roy Unger, International Trade 
Specialist, Office of Textiles and Apparel, U.S. Department of 
Commerce, (202) 482-4212. For information on the quota

[[Page 74946]]

status of these limits, refer to the Quota Status Reports posted on the 
bulletin boards of each Customs port, call (202) 927-5850, or refer to 
the Bureau of Customs and Border Protection website at http://www.customs.gov. For information on embargoes and quota re-openings, 
refer to the Office of Textiles and Apparel website at http://otexa.ita.doc.gov.

SUPPLEMENTARY INFORMATION:

    Authority: Section 204 of the Agricultural Act of 1956, as 
amended (7 U.S.C. 1854); Executive Order 11651 of March 3, 1972, as 
amended.
    On December 24, 2003, as provided for under paragraph 242 of the 
Report of the Working Party on the Accession of China to the World 
Trade Organization (Accession Agreement), the United States requested 
consultations with the Government of the People's Republic of China 
with respect to imports of Chinese origin brassieres and other body 
supporting garments in Category 349/649. In accordance with paragraph 
242 of the Accession Agreement and the procedures set forth by the 
Committee on May 21, 2003 (68 FR 27787), as clarified on August 18, 
2003 (68 FR 49440), the United States is establishing a twelve-month 
limit on brassieres and other body supporting garments in Category 349/
649 from China, beginning on December 24, 2003, and extending through 
December 23, 2004 at a level of 16,828,971 dozen.
    Paragraph 2.B. of the U.S.-China Textile Visa Arrangement provides 
that if additional categories become subject to import quotas, those 
categories shall be automatically included in the coverage of the Visa 
Arrangement. This Visa Arrangement was notified to the World Trade 
Organization Textiles Monitoring Body as an agreed administrative 
arrangement on May 21, 2002. Consequently, the United States will 
require that shipments of Chinese origin brassieres and other body 
supporting garments in Category 349/649 be accompanied by an export 
visa and Electronic Visa Information System (ELVIS) transmission issued 
by the Government of the People's Republic of China. In order to 
provide a period for adjustment, the United States will allow shipments 
of goods in this category that are not accompanied by an export visa 
and an ELVIS transmission to enter the United States if exported prior 
to January 23, 2004. However, shipments exported from China on or after 
January 23, 2004 must be accompanied by an export visa and ELVIS 
transmission issued by the Government of the People's Republic of 
China, and shipments without an export visa and ELVIS transmission will 
be denied entry.
    Paragraph 242 of the Accession Agreement allows World Trade 
Organization Members that believe imports of Chinese origin textile and 
apparel products are, due to market disruption, threatening to impede 
the orderly development of trade in these products to request 
consultations with the People's Republic of China with a view to easing 
or avoiding such market disruption. Upon receipt of the request, the 
People's Republic of China has agreed to hold its shipments to a level 
no greater than 7.5 percent (6 percent for wool product categories) 
above the amount entered during the first 12 months of the most recent 
14 months preceding the request for consultations. The Member 
requesting consultations may implement such a limit. Consistent with 
paragraph 242, consultations with the People's Republic of China will 
be held within 30 days of receipt of the request for consultations, and 
every effort will be made to reach agreement on a mutually satisfactory 
solution within 90 days of receipt of the request for consultations. If 
agreement on a different limit is reached, the Committee will issue a 
Federal Register Notice containing a directive to the Bureau of Customs 
and Border Protection to implement the negotiated limit.
    On July 24, 2003, the Committee received a request from the 
American Manufacturing Trade Action Coalition, American Textile 
Manufacturers Institute and the National Textile Association alleging 
that imports from the People's Republic of China of brassieres and 
other body supporting garments (Category 349/649) are, due to market 
disruption, threatening to impede the orderly development of trade in 
this product, and requesting that an Accession Agreement textile and 
apparel safeguard action be taken on imports of brassieres and other 
body supporting garments. The Committee determined that this request 
provided the information necessary for the Committee to consider the 
request, and, on August 18, 2003, the Committee solicited public 
comments on the request (68 FR 49448). This public comment period ended 
on September 17, 2003. The Committee determined that imports of Chinese 
origin brassieres and other body supporting garments are, due to market 
disruption and the threat of market disruption, threatening to impede 
the orderly development of trade in brassieres and other body 
supporting garments, and that imports of brassieres and other body 
supporting garments from China play a significant role in the existence 
of and threat of market disruption. A summary statement of the reasons 
and justifications for the U.S. request for consultations concerning 
imports of Category 349/649 from the People's Republic of China follows 
this notice.
    A description of the textile and apparel categories in terms of 
Harmonized Tariff Schedule of the United States numbers is available in 
the CORRELATION: Textile and Apparel Category with the Harmonized 
Tariff Schedule of the United States (see Federal Register notice 68 FR 
1599, published on January 13, 2003). Also see 67 FR 63891, published 
on October 16, 2002.

D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.

Committee for the Implementation of Textile Agreements

December 23, 2003.

Commissioner,
Bureau of Customs and Border Protection, Washington, DC 20229.
    Dear Commissioner: Pursuant to Section 204 of the Agricultural 
Act of 1956, as amended (7 U.S.C. 1854); and Executive Order 11651 
of March 3, 1972, as amended, you are directed to prohibit, 
effective on December 24, 2003, entry into the United States for 
consumption and withdrawal from warehouse for consumption of 
brassieres and other body supporting garments in Category 349/649, 
produced or manufactured in the People's Republic of China and 
exported during the twelve-month period beginning on December 24, 
2003, and extending through December 23, 2004, in excess of 
16,828,971 dozen.
    Paragraph 2.B. of the U.S.-China Textile Visa Arrangement 
provides that if additional categories become subject to import 
quotas, those categories shall be automatically included in the 
coverage of the Visa Arrangement. This Visa Arrangement was notified 
to the World Trade Organization Textiles Monitoring Body as an 
agreed administrative arrangement on May 21, 2002. Consequently, the 
United States will require that shipments of Chinese origin 
brassieres and other body supporting garments in Category 349/649 be 
accompanied by an export visa and Electronic Visa Information System 
(ELVIS) transmission issued by the Government of the People's 
Republic of China. In order to provide a period for adjustment, the 
United States will allow shipments of goods in this category that 
are not accompanied by an export visa and an ELVIS transmission to 
enter the United States if exported prior to January 23, 2004. 
However, shipments exported from China on or after January 23, 2004 
must be accompanied by an export visa and ELVIS transmission issued 
by the Government of the People's Republic of China, and shipments 
without an export visa and ELVIS transmission will be denied entry.
    Products which have been exported to the United States prior to 
December 24, 2003,

[[Page 74947]]

shall not be subject to the limit established in this directive.
    In carrying out the above directions, the Commissioner should 
construe entry into the United States for consumption to include 
entry for consumption into the Commonwealth of Puerto Rico.
    The Committee for the Implementation of Textile Agreements has 
determined that this action falls within the foreign affairs 
exception of the rulemaking provisions of 5 U.S.C. 553(a)(1).
    Sincerely,
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.

SUMMARY OF THE REASONS AND JUSTIFICATIONS FOR U.S. REQUEST FOR 
CONSULTATIONS WITH CHINA PURSUANT TO PARAGRAPH 242 OF THE REPORT OF THE 
WORKING PARTY ON THE ACCESSION OF CHINA TO THE WORLD TRADE ORGANIZATION

Brassieres and Other Body Supporting Garments
Category 349/649
The United States believes that imports of Chinese origin brassieres 
and other body supporting garments are, due to market disruption, 
threatening to impede the orderly development of trade in brassieres 
and other body supporting garments, and that imports of brassieres 
and other body supporting garments from China play a significant 
role in the existence of market disruption. Further, the United 
States believes that imports of Chinese origin brassieres and other 
body supporting garments are, due to the threat of market 
disruption, threatening to impede the orderly development of trade 
in brassieres and other body supporting garments, and that imports 
of brassieres and other body supporting garments from China play a 
significant role in the threat of market disruption. Either finding 
supports a request for consultations with the Government of the 
People's Republic of China under Paragraph 242 of the Report of the 
Working Party on the Accession of China to the World Trade 
Organization (``Paragraph 242''). The following facts, and others 
contained in the full Statement, support these beliefs:
    U.S. Imports from China Are Increasing Rapidly in Absolute 
Terms. U.S. imports of brassieres and other body supporting garments 
from China increased from 4,084,363 dozens in 2000 to 10,580,029 
dozens in 2002 (an increase of 159 percent), and to 15,967,519 
dozens in the year ending October 2003 (an increase of 291 percent 
from the 2000 level).
    U.S. Imports from China Are Increasing Rapidly Relative to Other 
Imports. In 2001, China was the 6th largest exporter of brassieres 
and other body supporting garments to the United States. Just one 
year later, China was the largest exporter of brassieres and other 
body supporting garments to the United States and has remained so 
through the year ending October 2003.
    Chinese Average Unit Values Are Well Below Values from Other 
Countries. In 2002, the average unit value of U.S. brassieres and 
other body supporting garments imports from China was US$33.43 per 
dozen, compared to a ``rest of world'' import average unit value of 
US$42.24 per dozen. In the year ending October 2003, the average 
unit value of imports from China fell to US$32.08 per dozen, 
compared to US$43.17 per dozen for ``rest of world'' imports.
    U.S. Imports from China Are Likely to Increase Further in the 
Near Future. China's capacity to produce apparel, including 
brassieres and other body supporting garments, and the low prices of 
China imports of these products threaten to disrupt the U.S. market 
for brassieres and other body supporting garments. Due to the 
vulnerability of the U.S. industry today, even a relatively small 
increase in low-priced imports from China in the near future could 
have a considerable impact.
    The U.S. Brassieres and Other Body Supporting Garments Industry 
Is Vulnerable to Any Increase in Imports. U.S. production including 
outward processing of brassieres and other body supporting garments 
fell 2 percent from 2000 to the year ending June 2003 (from 28,375 
thousand dozen to 27,781 thousand dozen), while the share of the 
market held by U.S. producers fell by 9 percentage points (from 52.8 
percent to 43.8 percent) during this period.


[FR Doc. 03-32032 Filed 12-24-03; 8:45 am]
BILLING CODE 3510-DR-S