[Federal Register Volume 69, Number 172 (Tuesday, September 7, 2004)]
[Notices]
[Pages 54133-54134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20234]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Determination and Non-Designation under the Textile and Apparel 
Commercial Availability Provisions of the United States-Caribbean Basin 
Trade Partnership Act

August 31, 2004.
AGENCY: The Committee for the Implementation of Textile Agreements (The 
Committee).

ACTION: Committee decision not to revoke its prior designation 
regarding certain coated fusible interlining fabrics.

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SUMMARY: The Committee received a petition alleging that certain 
coated, fusible interlining fabrics, which had been determined by the 
Committee not to be available in commercial quantities in a timely 
manner, were in fact available from the domestic industry. The petition 
requested that the Committee revoke its previous designation making 
apparel from such fabric eligible for duty-free treatment under the 
commercial availability provision of the CBTPA. Subsequently, the 
Committee determined that the subject fabrics, detailed below, both 
classified under item 5903.90.2500 of the Harmonized Tariff Schedule of 
the United States (HTSUS), for use in apparel articles, can be supplied 
by the domestic industry in commercial quantities in a timely manner. 
However, the Committee has determined that revoking the designation of 
these fabrics under the commercial availability provision of the CBTPA 
would have an adverse impact on a significant component of the U.S. 
textile industry. Therefore, the Committee has decided not to revoke 
the previous designation regarding these fabrics, and apparel from such 
fabric will continue to be eligible for duty-free treatment under the 
commercial availability provision of the CBTPA.

FOR FURTHER INFORMATION CONTACT: Richard P. Stetson, Office of Textiles 
and Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

    Authority: Section 211 of the Caribbean Basin Trade Partnership 
Act (CBTPA), amending Section 213(b)(2)(A)(v)(II) of the Caribbean 
Basin Economic Recovery Act (CBERA); Presidential Proclamation 7351 
of October 2, 2000; Executive Order No. 13191 of January 17, 2001.

Background

    The commercial availability 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 apparel 
articles from fabrics or yarn designated by the appropriate U.S. 
government authority in the Federal Register.
    In Executive Order 13191, the President authorized the Committee to 
determine whether yarns or fabrics cannot be supplied by the domestic 
industry in commercial quantities in a timely manner.
    On April 22, 2003, following a determination that certain coated, 
fusible interlinings, detailed in the Annex to this notice, could not 
be supplied by the domestic industry in commercial quantities in a 
timely manner under the CBTPA, the Committee designated apparel from 
these fabrics as eligible for duty-free treatment under the CBTPA (68 
FR 19788).
    On April 16, 2004, the Chairman of the Committee received a 
petition from Hodgson Russ Attorneys, LLP, on behalf of Narroflex, 
alleging that these fabrics can be supplied by the domestic industry in 
commercial quantities in a timely manner, and requesting that the 
Committee revoke its previous designation regarding these fabrics. On 
April 21, 2004, the Committee requested public comments on the petition 
(67 FR 244). On May 9, 2004, the Committee and the U.S. Trade 
Representative (USTR) sought the advice of the Industry Trade Advisory 
Committee for Textiles and Clothing and the Industry Trade Advisory 
Committee for Distribution Services regarding the proposed action.
    On May 24, 2004, 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 
(Congressional Committees) regarding the proposed action. On May 28, 
2004, the U.S. International Trade Commission provided advice regarding 
the proposed action. Based on the information and advice received and 
its understanding of the industry, the Committee determined that the 
fabrics set forth in the petition can be supplied by the domestic 
industry in commercial quantities in a timely manner.
    On June 16, 2004, as required by the CBTPA, the Committee and USTR 
submitted a report to the Congressional Committees that set forth the 
action proposed, the reasons for such action, and the advice obtained. 
A period of 60 calendar days since this report was submitted has 
expired and during this period the House Ways and Means Committee 
provided additional advice. On August 4, the Committee received a 
letter from Chairman William M. Thomas and Ranking Democrat Charles B. 
Rangel of the Committee on Ways and Means expressing strong concern 
about revocation, noting the adverse affects such a decision could have 
on U.S. textile manufacturers and on the economy of the Dominican 
Republic. The letter also drew the Committee's attention to the 
Committee on Ways and Means' reports on the United States - Australia 
Free Trade Agreement Implementation Act and the United States Morocco 
Free Trade Agreement Implementation Act; in both reports, the Committee 
on Ways and Means expressed its view that ``once an item is designated 
as being in short supply under trade preference programs, the item is 
permanently designated as such unless otherwise provided for by the 
statute implementing the trade preference program.''
    Based on the advice from a broad spectrum of the domestic industry 
and the House Ways and Means Committee, the Committee has decided not 
to revoke its April 22, 2003 designation. Such a revocation would, as a 
result of the reliance on the Committee's prior designation, have an 
adverse impact on a significant component of the U.S. textile industry. 
The Committee will not

[[Page 54134]]

revoke its previous designation regarding these fabrics.
    Apparel articles from these fabrics remain eligible for quota-free 
and duty-free treatment under the textile and apparel commercial 
availability provisions of the CBTPA.

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

Annex

1. A knitted outer-fusible material with a fold line that is knitted 
into the fabric. The fabric is a 45mm wide base substrate, knitted in 
narrow width, synthetic fiber based (made of 49% polyester / 43% 
elastomeric filament / 8% nylon with a weight of 4.4 oz., a 110/110 
stretch, and a dull yarn), stretch elastomeric material with an 
adhesive (thermoplastic resin) coating. The 45mm width is divided as 
follows: 34mm solid, followed by a 3mm seam allowing it to fold over, 
followed by 8mm of solid.
2. A knitted inner-fusible material with an adhesive (thermoplastic 
resin) coating that is applied after going through a finishing process 
to remove all shrinkage from the product. The fabric is a 40mm 
synthetic fiber based stretch elastomeric fusible consisting of 80% 
nylon type 6/20% elastomeric filament with a weight of 4.4 oz., a 110/
110 stretch, and a dull yarn.
[FR Doc. 04-20234 Filed 9-1-04; 2:46 pm]
BILLING CODE 3510-DR-S