[Federal Register Volume 69, Number 59 (Friday, March 26, 2004)]
[Notices]
[Pages 15816-15818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6939]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Denial of Commercial Availability Request under the African 
Growth and Opportunity Act (AGOA) and the Andean Trade Promotion and 
Drug Eradication Act (ATPDEA)

March 24, 2004.
AGENCY: The Committee for the Implementation of Textile Agreements 
(CITA).

ACTION: Denial of the request alleging that two patented fusible 
interlining fabrics, used in the construction of waistbands, cannot be 
supplied by the domestic industry in commercial quantities in a timely 
manner under the AGOA and the ATPDEA.

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SUMMARY: On January 20, 2004, the Chairman of CITA received a petition 
from Levi Strauss and Co. alleging that a certain ultra-fine Lycra 
crochet material, classified under subheading 5903.90.2500 of the 
Harmonized Tariff Schedule of the United States (HTSUS), cannot be 
supplied by the domestic

[[Page 15817]]

industry in commercial quantities in a timely manner. The petition 
requested that apparel containing waistbands of such fabrics be 
eligible for preferential treatment under the AGOA and the ATPDEA.

FOR FURTHER INFORMATION CONTACT: Richard Stetson, International Trade 
Specialist, Office of Textiles and Apparel, U.S. Department of 
Commerce, 202-482-3400.

SUPPLEMENTARY INFORMATION:

    Authority: Section 112(b)(5)(B) of the AGOA; Section 1 of 
Executive Order No. 13191 of January 17, 2001; Presidential 
Proclamations 7350 of October 4, 2000; Section 204 (b)(3)(B)(ii) of 
the ATPDEA, Presidential Proclamation 7616 of October 31, 2002, 
Executive Order 13277 of November 19, 2002, and the United States 
Trade Representative's Notice of Further Assignment of Functions of 
November 25, 2002.

BACKGROUND:

    The AGOA and the ATPDEA provide for quota- and duty-free treatment 
for qualifying textile and apparel products. Such treatment is 
generally limited to products manufactured from yarns and fabrics 
formed in the United States or a beneficiary country. The AGOA and the 
ATPDEA also provide for quota- and duty-free treatment for apparel 
articles that are both cut (or knit-to-shape) and sewn or otherwise 
assembled in one or more beneficiary countries from fabric or yarn that 
is not formed in the United States, if it has been determined that such 
fabric or yarn cannot be supplied by the domestic industry in 
commercial quantities in a timely manner. In Executive Order No. 13191 
(66 FR 7271) and pursuant to Executive Order No. 13277 (67 FR 70305) 
and the United States Trade Representative's Notice of Redelegation of 
Authority and Further Assignment of Functions (67 FR 71606), CITA has 
been delegated the authority to determine whether yarns or fabrics 
cannot be supplied by the domestic industry in commercial quantities in 
a timely manner under the AGOA or the ATPDEA. On March 6, 2001, CITA 
published procedures that it will follow in considering requests (66 FR 
13502).
    On January 20, 2004, the Chairman of CITA received a petition from 
Levi Strauss and Co. alleging that certain ultra-fine Lycra crochet 
outer-fusible material with a fold line that is knitted into the fabric 
and a fine Lycra crochet inner-fusible material with an adhesive 
coating that is applied after going through a finishing process to 
remove all shrinkage from the product, classified under item 
5903.90.2500 of the Harmonized Tariff Schedule of the United States 
(HTSUS), for use in apparel articles (waistbands), cannot be supplied 
by the domestic industry in commercial quantities in a timely manner 
and requesting quota- and duty-free treatment under the AGOA and the 
ATPDEA for apparel articles that are both cut and sewn in one or more 
AGOA or ATPDEA beneficiary countries utilizing such fabrics. In 
describing the product, the petitioner uses the trademark name 
``Lycra''. CITA will not make a determination on a trademark name, so 
the term ``elastomeric'' has been substituted.

The two fabrics at issue are:

Fusible Interlining 1 -

    An ultra-fine elastomeric crochet outer-fusible material with a 
fold line that is knitted into the fabric. A patent is pending for this 
fold-line fabric.
    The fabric is a 45mm wide base substrate, crochet knitted in narrow 
width, synthetic fiber based (49% polyester/43% elastane/8% nylon with 
a weight of 4.4 oz., a 110/110 stretch and a dull yarn), stretch 
elastomeric material with adhesive coating that has the following 
characteristics:
    1. The 45mm is divided as follows: 34mm solid followed by a 3mm 
seam allowing it to fold over followed by 8mm of solid.
    2. In the length it exhibits excellent stretch and recovery 
properties at low extension levels.
    3. It is delivered pre-shrunk with no potential for relaxation 
shrinkage during high temperature washing or fusing and deliveredlap 
laid, i.e., tension free adhesion level will be maintained or improved 
through garment processing temperatures of up to 350 degrees and dwell 
times of 20 minute durations.
    4. The duration and efficacy of the bond will be such that the 
adhesive will not become detached from the fabric or base substrate 
during industrial washing or in later garment wear or after-care of 50 
home washes.
    In summary, the desired fabric will be an interlining fabric with 
the above properties. The finished interlining fabric is a fabric that 
has been coated with an adhesive coating after going through a 
finishing process to remove all shrinkage from the product and impart a 
stretch to the fabric. This finishing process of imparting stretch to 
fabrics is patented, U.S. Patent 5,987,721.

Fusible Interlining 2 -

    A fine elastomeric crochet inner-fusible material with an adhesive 
coating that is applied after going through a finishing process to 
remove all shrinkage from the product. (Sample Number 2) This finishing 
process of imparting stretch to fabrics is patented, U.S. Patent 
5,987,721.
    Specifically, the fabric is a 40mm synthetic fiber based stretch 
elastomeric fusible (80% nylon type 6/20% spandex with a weight of 4.4 
oz., a 110/110 stretch and a dull yarn), with the following 
characteristics:
    1. It is supplied pre-coated with an adhesive that will adhere to 
100% cotton and other composition materials such as polyester/cotton 
blends during fusing at a temperature of 180 degrees.
    2. The adhesive is of a melt flow index which will not strike back 
through the interlining substrate or strike through the fabric to which 
it is fused and whose adhesion level will be maintained or improved 
through garment processing temperatures of up to 350 degrees and dwell 
times of 20 minute durations.
    3. The duration and efficacy of the bond will be such that the 
adhesive will not become detached from the fabric or base substrate 
during industrial washing or in later garment wear or after-care of 50 
home washes.
    4. Delivered on rolls of more than 350 yards or lap laid in boxes.
    Both interlining fabrics are classifiable under 5903.90.2500, 
HTSUS. The adhesive coating adds approximately 25% - 30% weight to the 
fusible interlining 1 and adds approximately 20% - 25% weight to the 
fusible interlining 2.
    The fusible interlining fabrics are used in the construction of 
waistbands in pants, shorts, skirts, and other similar products that 
have waistbands.
    Fusible interlining 1 reinforces the twill pant fabric and also 
exclusively contributes to the ``stretch ability'' of the twill pant 
fabric in the waistband area. Fusible interlining 2 is used on the 
underside of the waistband lining fabric. This interlining reinforces 
the waistband lining, which is made from pocketing-type fabric, and 
also exclusively contributes to that fabric's ``stretch ability.'' It 
also serves to ``firm up'' the seam area of the waistband lining so 
that the fabric will not rip or otherwise be damaged during the 
assembly/sewing process.
    On February 2, 2004, CITA solicited public comments regarding this 
request, particularly with respect to whether these fabrics can be 
supplied by the domestic industry in commercial quantities in a timely 
manner. On February 18, 2004, CITA and the Office of the U.S. Trade 
Representative offered

[[Page 15818]]

to hold consultations with the relevant Congressional committees. We 
also requested the advice of the U.S. International Trade Commission 
and the relevant Industry Sector Advisory Committees.
    CITA has determined that the domestic industry can supply a product 
substitutable for the two fabrics described above in commercial 
quantities in a timely manner. On the basis of currently available 
information, including review of the request, public comment and advice 
received, and its understanding of the industry, CITA has determined 
that there is domestic capacity to supply a substitutable product in 
commercial quantities in a timely manner. Levi Strauss and Co.'s 
request is denied.

D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc.04-6939 Filed 3-24-04; 3:16 pm]
BILLING CODE 3510-DR-S