[Federal Register Volume 68, Number 248 (Monday, December 29, 2003)]
[Notices]
[Pages 74947-74949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-32033]


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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 Cotton and Man-Made Fiber Dressing Gowns and 
Robes, Category 350/650, 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 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 cotton and man-made fiber 
dressing gowns and robes in Category 350/650. 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 cotton and man-made fiber dressing gowns in Category 
350/650 from China, beginning on December 24, 2003, and extending 
through December 23, 2004 at a level of 4,094,382 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 cotton and man-made fiber 
dressing gowns and robes in Category 350/650 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

[[Page 74948]]

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 cotton and man-made 
fiber dressing gowns and robes. (Category 350/650) 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 cotton and man-made 
fiber dressing gowns and robes. 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 49444). This public comment 
period ended on September 17, 2003. The Committee determined that 
imports of Chinese origin cotton and man-made fiber dressing gowns and 
robes are, due to market disruption and the threat of market 
disruption, threatening to impede the orderly development of trade in 
cotton and man-made fiber dressing gowns and robes, and that imports of 
cotton and man-made fiber dressing gowns and robes from China play a 
significant role in the existence and threat of market disruption. A 
summary statement of the reasons and justifications for the U.S. 
request for consultations concerning imports of Category 350/650 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 Categories 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 cotton 
and man-made fiber dressing gowns and robes. in Category 350/650, 
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 
4,094,382 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 cotton 
and man-made fiber dressing gowns and robes in Category 350/650 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, 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

Cotton and Man-Made Fiber Dressing Gowns and Robes
Category 350/650
The United States believes that imports of Chinese origin cotton and 
man-made fiber dressing gowns and robes are, due to market 
disruption, threatening to impede the orderly development of trade 
in cotton and man-made fiber dressing gowns and robes, and that 
imports of cotton and man-made fiber dressing gowns and robes from 
China play a significant role in the existence of market disruption. 
Further, the United States believes that imports of Chinese origin 
cotton and man-made fiber dressing gowns and robes are, due to the 
threat of market disruption, threatening to impede the orderly 
development of trade in cotton and man-made fiber dressing gowns and 
robes, and that imports of cotton and man-made fiber dressing gowns 
and robes 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 cotton and man-made fiber dressing gowns and 
robes from China increased from 259,868 dozens in 2000 to 2,171,896 
dozens in 2002 (an increase of 736 percent), and to 4,117,377 dozens 
in the year ending in October 2003 (an increase of 1,484 percent 
from the 2000 level).
    U.S. Imports from China Are Increasing Rapidly Relative to Other 
Imports. In 2001, China was the 5th largest exporter of cotton and 
man-made fiber dressing gowns and robes to the United States. Just 
one year later, China was the largest exporter of cotton and man-
made fiber dressing gowns and robes 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. imports of cotton 
and man-made fiber dressing gowns and robes from China was US$66.61 
per dozen, compared to a ``rest of world'' import average unit value 
of US$74.60 per dozen. In the year ending October 2003, the average 
unit value of imports from China fell to US$56.46 per dozen, 
compared to US$65.74 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 cotton 
and man-made fiber dressing gowns and robes, and the low prices of 
Chinese imports

[[Page 74949]]

of these products threaten to disrupt the U.S. market for cotton and 
man-made fiber and dressing gowns and robes. 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. Cotton and Man-Made Fiber Dressing Gowns and Robes 
Industry is Vulnerable to Any Increase in Imports. U.S. production 
including outward processing of cotton and man-made fiber dressing 
gowns and robes fell 38.6 percent from 2000 to the year ending June 
2003 (from 1,990 thousand dozens to 1,221 thousand dozens), while 
the share of the market held by U.S. producers fell by 17.9 
percentage points (from 30 percent to 12.1 percent) during this 
period.


[FR Doc. 03-32033 Filed 12-24-03; 8:45 am]
BILLING CODE 3510-DR-S