Federal Register, Volume 70 Issue 99 (Tuesday, May 24, 2005)

[Federal Register Volume 70, Number 99 (Tuesday, May 24, 2005)]
[Notices]
[Pages 29722-29725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10449]

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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 Import Limits for Cotton Knit Shirts and Blouses (Category 338/339);
Cotton Trousers (Category 347/348); and Cotton and Man-Made Fiber
Underwear (Category 352/652), Produced or Manufactured in the People's
Republic of China

May 20, 2005.
AGENCY: Committee for the Implementation of Textile Agreements
(Committee).

ACTION: Notice

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EFFECTIVE DATE: May 23, 2005.

FOR FURTHER INFORMATION CONTACT: Ross Arnold, International Trade
Specialist, Office of Textiles and Apparel, U.S. Department of
Commerce, (202) 482-

[[Page 29723]]

4212. For information on the quota status of these limits, refer to the
Bureau of Customs and Border Protection website (http://www.cbp.gov),
or call (202) 344-2650. 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 May 23, 2005, 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 knit shirts and
blouses (Category 338/339); cotton trousers (Category 347/348); and
cotton and man-made fiber underwear (Category 352/652). 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 limits
on Chinese origin cotton knit shirts and blouses (Category 338/339);
cotton trousers (Category 347/348); and cotton and man-made fiber
underwear (Category 352/652), beginning on May 23, 2005 and extending
through December 31, 2005 in order to assist in the implementation of
these measures.
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 month in which the request for consultations
was made. Because this restraint period will be for less than 12
months, the restraint limit will be prorated to conform to the number
of days remaining in the year, beginning on May 23, 2005. 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.
Consistent with the terms of China's WTO Accession Agreement, these
limits will only last through December 31, 2005. Therefore the 12-month
notional limits, which are 7.5 percent above the amount entered during
the first 12 months of the most recent 14 months preceding the month in
which the request for consultations was made, are being prorated to
correspond to the amount of days of the year covered by the restraint
period. As they begin on May 23 and run through December 31, 2005, a
period of 223 days, the notional limits will be prorated by a ratio of
223/365.
On April 8, 2005, the Committee solicited public comments on the
self-initiated investigations request (70 FR 17978, 70 FR 17979, 69 FR
17980). This public comment period ended on May 9, 2005. The public
comment period had also ended for the threat-based requests filed last
fall covering the same three product categories (69 FR 64912, 69 FR
64034, 69 FR 64914). The Committee determined that imports of Chinese
cotton knit shirts and blouses (Category 338/339); cotton trousers
(Category 347/348); and cotton and man-made fiber underwear (Category
352/652), due to market disruption and the threat of market disruption,
threatening to impede the orderly development of trade in these textile
products, and that imports of cotton knit shirts and blouses (Category
338/339); cotton trousers (Category 347/348); and cotton and man-made
fiber underwear (Category 352/652) 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 Categories 338/339, 347/348, and
352/652 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 69 FR
4926, published on February 2, 2005). Information regarding the 2005
CORRELATION will be published in the Federal Register at a later date.

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

[[Page 29724]]

Committee for the Implementation of Textile Agreements

May 20, 2005.

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 May 23, 2005, entry into the United States for
consumption and withdrawal from warehouse for consumption of cotton
knit shirts and blouses (Category 338/339); cotton trousers
(Category 347/348); and cotton and man-made fiber underwear
(Category 352/652), produced or manufactured in the People's
Republic of China and exported during the period beginning on May
23, 2005, and extending through December 31, 2005, in excess of the
following limits.

------------------------------------------------------------------------
Category Quantity
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338/339................................... 4,704,115 dozen.
347/348................................... 4,340,638 dozen.
352/652................................... 5,062,892 dozen.
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Products which have been exported to the United States prior to
May 23, 2005, 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 these actions fall 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 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 Knit Shirts and Blouses

Category 338/339

The United States believes that imports of Chinese origin cotton
knit shirts and blouses are, due to the existence of market
disruption, threatening to impede the orderly development of trade
in these products. Further, the United States believes that imports
of Chinese origin cotton knit shirts and blouses are, due to the
threat of market disruption, threatening to impede the orderly
development of trade in these products. 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
this Statement, support these beliefs:

U.S. Imports from China Are Increasing Rapidly in Absolute Terms.
U.S. imports of cotton knit shirts and blouses from China were
2,816,081 dozens for the entire twelve months of 2004. In the first
quarter of 2005, U.S. imports from China increased to 7,137,399
dozens, an increase of 1,277 percent from the first quarter of 2004
and over two and a half times the level of total calendar year 2004
imports from China.

U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of cotton knit shirts and blouses from all
sources, excluding cotton knit shirts and blouses containing U.S.
components that were imported under outward processing programs,
increased from 58,343 thousand dozens in the first quarter of 2004
to 68,354 thousand dozens in the first quarter of 2005 - an increase
of 17 percent. Approximately two-thirds of this increase was
attributable to imports from China.

The Average Unit Value of Imports from China Is Falling in 2005. In
2004, the average unit value of U.S. cotton knit shirts and blouses
imports from China was US$99.57 per dozen. In the first three months
of 2005, the average unit value of those imports fell to US$39.88
per dozen, compared to US$44.38 per dozen for ``rest of world''
imports.

Cotton Trousers, Slacks and Shorts

Category 347/348

The United States believes that imports of Chinese origin cotton
trousers, slacks and shorts are, due to the existence of market
disruption, threatening to impede the orderly development of trade
in these products. Further, the United States believes that imports
of Chinese origin cotton trousers, slacks and shorts are, due to the
threat of market disruption, threatening to impede the orderly
development of trade in these products. 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
this Statement, support these beliefs:

U.S. Imports from China Are Increasing Rapidly in Absolute Terms.
U.S. imports of cotton trousers, slacks and shorts from China were
2,184,056 dozens for the entire twelve months of 2004. In the first
quarter of 2005, U.S. imports from China increased to 6,794,375
dozens, an increase of 1,573 percent from the first quarter of 2004
and over three times the level of total calendar year 2004 imports
from China.

U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of cotton trousers, slacks and shorts from all
sources, excluding cotton trousers, slacks and shorts containing
U.S. components that were imported under outward processing
programs, increased from 32,194 thousand dozens in the first quarter
of 2004 to 38,844 thousand dozens in the first quarter of 2005 - an
increase of 21 percent. Over 90 percent of this increase was
attributable to imports from China.

The Average Unit Value of Imports from China Is Falling in 2005. In
2004, the average unit value of U.S. cotton trousers, slacks and
shorts imports from China was US$154.53 per dozen. In the first
three months of 2005, the average unit value of those imports fell
to US$66.64 per dozen, compared to US$82.07 per dozen for ``rest of
world'' imports.

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 Underwear

Category 352/652

The United States believes that imports of Chinese origin cotton and
man-made fiber underwear (``underwear'') are, due to the existence
of market disruption, threatening to impede the orderly development
of trade in these products. Further, the United States believes that
imports of Chinese origin underwear are, due to the threat of market
disruption, threatening to impede the orderly development of trade
in these products. 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 this Statement,
support these beliefs:

U.S. Imports from China Are Increasing Rapidly in Absolute Terms.
U.S. imports of underwear from China were 5,211,785 dozens for the
entire twelve months of 2004. In the first quarter of 2005, U.S.
imports from China increased to 5,252,622 dozens, an increase of 318
percent from the first quarter of 2004.

U.S. Imports from the World Are Increasing Rapidly in Absolute
Terms. U.S. imports of underwear from all sources, excluding
underwear containing U.S. components that were imported under
outward processing programs, increased from 28,468 thousand dozens
in the first quarter of 2004 to 32,770 thousand dozens in the first
quarter of 2005 - an increase of 15 percent. More than 90 percent of
this increase was attributable to imports from China.

[[Page 29725]]

The Average Unit Value of Imports from China Is Falling in 2005. In
2004, the average unit value of U.S. underwear imports from China
was US$31.46 per dozen. In the first three months of 2005, the
average unit value of those imports fell to US$15.68 per dozen,
compared to US$15.80 per dozen for ``rest of world'' imports.
[FR Doc. 05-10449 Filed 5-20-05; 2:11 pm]
BILLING CODE 3510-DS