[Federal Register Volume 70, Number 171 (Tuesday, September 6, 2005)]
[Notices]
[Pages 52994-52996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17692]


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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 Certain Cotton and Man-made Fiber Brassieres and 
Other Body Supporting Garments (Category 349/649) and Other Synthetic 
Filament Fabric (Category 620), Produced or Manufactured in the 
People's Republic of China

September 1, 2005.
AGENCY: Committee for the Implementation of Textile Agreements 
(Committee).

ACTION: Notice

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EFFECTIVE DATE: August 31, 2005.

FOR FURTHER INFORMATION CONTACT: Ross Arnold, 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 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 August 31, 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 and man-made fiber 
brassieres and other body supporting garments (Category 349/649) and 
other synthetic filament fabric (Category 620).
    Paragraph 242 of the Accession Agreements provides that, upon 
receipt of the request, the People's Republic of China will hold its 
shipments to a level no greater than 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. 
Because this restraint period will be for less than 12 months, the 
quantitative limit will be prorated to conform to the number of days 
remaining in the year, beginning on August 31, 2005 (i.e., by a ratio 
of 123/365). 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 no mutually satisfactory solution 
were reached during this 90-day consultation period, the United States 
could continue these limits.
    To ensure that the limitations provided for under Paragraph 242 are 
carried out, the Committee is establishing prorated limits on Chinese-
origin textile and apparel products in Categories 349/649 and 620, 
beginning on August 31, 2005, and extending through December 31, 2005. 
If agreement on a different limit is reached as a result of the 
consultations with China, the Committee will issue a Federal Register 
Notice containing a directive to the Bureau of Customs and

[[Page 52995]]

Border Protection to implement the negotiated limit.
    The Committee solicited public comments with regard to whether 
imports of Chinese-origin textiles and textile products in Categories 
349/649 and 620 were, due to the threat of market disruption, 
threatening to impede the orderly development of trade in these 
products. Solicitation of Public Comments on Request for Textile and 
Apparel Safeguard Action on Imports from China, (69 FR 70661 (Dec. 7, 
2004) (Category 620) & 69 FR 77998 (Dec. 29, 2004) (Category 349/649). 
The Committee solicited public comments with regard to whether imports 
of Chinese-origin textiles and textile products in Categories 349/649 
and 620 were, due to actual market disruption, threatening to impede 
the orderly development of trade in these products. Solicitation of 
Public Comments on Request for Textile and Apparel Safeguard Action on 
Imports from China, 70 FR 23113 (May 4, 2005) (Category 349/649) & 70 
FR 23124 (May 4, 2005) (Category 620).
    On December 30, 2004, the United States Court of International 
Trade preliminarily enjoined the members of the Committee from 
considering or taking any further action on this request and any other 
requests that are based on the threat of market disruption. U.S. 
Association of Importers of Textiles and Apparel v. United States, 350 
F. Supp. 2d 1342 (CIT 2004). On April 27, 2005, the United States Court 
of Appeals for the Federal Circuit granted the U.S. government's motion 
for a stay of that injunction and ultimately reversed the preliminary 
injunction. U.S. Association of Importers of Textiles and Apparel v. 
United States, Ct. No. 05-1209, 413 F.3d 1344 (Fed. Cir. June 28, 
2005). Thus, the Committee resumed consideration of these cases. (See 
70 FR 24397, published on May 9, 2005).
    The Committee determined that imports of Chinese-origin textiles 
and textile products in Categories 349/649 and 620, are, due to the 
existence of market disruption and the threat of market disruption, 
threatening to impede the orderly development of trade in these textile 
products. A summary statement of the reasons and justifications for the 
U.S. request for consultations concerning imports of Chinese-origin 
textiles and textile products in Categories 349/649 and 620 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 (refer to the Office of Textiles 
and Apparel website at http://otexa.ita.doc.gov).

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

Committee for the Implementation of Textile Agreements

September 1, 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 August 31, 2005, entry into the United States for 
consumption and withdrawal from warehouse for consumption of 
Chinese-origin cotton and man-made fiber brassieres and other body 
supporting garments (Category 349/649) and other synthetic filament 
fabric (Category 620), produced or manufactured in the People's 
Republic of China and exported during the period beginning on August 
31, 2005, and extending through December 31, 2005, in excess of the 
following limits.

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                 Category                             Quantity
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349/649...................................  7,275,216 dozen.
620.......................................  12,328,306 square meters.
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    Products which have been exported to the United States prior to 
August 31, 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 and Man-made Fiber Brassieres and Other Body Supporting Garments

Category 349/649

The United States believes that imports of Chinese-origin cotton and 
man-made fiber brassieres and other body supporting garments 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 and man-made 
fiber brassieres and other body supporting garments 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 and man-made fiber brassieres and 
other body supporting garments from China were 17,734,954 dozens for 
the entire twelve months of 2004. In the first half of 2005, U.S. 
imports from China increased to 11,139,910, an increase of 35 
percent from the first half of 2004.

     U.S. Imports from the World Are Increasing Rapidly in Absolute 
Terms. U.S. imports of cotton and man-made fiber brassieres and 
other body supporting garments from all sources, excluding cotton 
and man-made fiber brassieres and other body supporting garments 
containing U.S. components that were imported under outward 
processing programs, increased from 19,381 thousand dozens in the 
first half of 2004 to 21,043 thousand dozens in the first half of 
2005 - an increase of 9 percent. The absolute increase in imports 
from China in the first half of 2005 (2,908 thousand dozens) is 
greater than the absolute increase in U.S. imports of this category 
from the world as a whole (1,663 thousand dozens).

     The Average Unit Value of Imports from China is Significantly 
Lower Than Rest of World in 2005. In the first half of 2005, the 
average unit value of U.S. cotton and man-made fiber brassieres and 
other body supporting garment imports from China was US$31.17 per 
dozen, compared to US$50.25 per dozen for ``rest of world'' imports.

     The U.S. Brassieres and Other Body Supporting Garments Industry 
is Vulnerable to Increasing Imports. U.S. production fell by 2 
percent between the first quarter of 2004 and the first quarter of 
2005, while the share of the market held by U.S. producers fell by 3 
percentage points during this period.



[[Page 52996]]

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

Other Synthetic Filament Fabric

Category 620

The United States believes that imports of Chinese-origin other 
synthetic filament fabric 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 other synthetic filament fabric 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 other synthetic filament fabric from China 
were 5,895,247 square meters for the entire twelve months of 2004. 
In the period January-June 2005, U.S. imports from China increased 
to 39,973,330 square meters, an increase of 1,185 percent from the 
January-June 2004 level.

     U.S. Imports from the World Are Increasing Rapidly in Absolute 
Terms. U.S. imports of other synthetic filament fabric from all 
sources increased from 135,921 thousand square meters in January-
June 2004 to 256,020 thousand square meters in January-June 2005 - 
an increase of 88 percent. Over thirty 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. other synthetic 
filament fabric imports from China was US$2.36 per square meter. In 
the period January-June 2005, the average unit value of those 
imports fell to US$0.70 per square meter compared to US$0.77 per 
square meter for ``rest of world'' imports.

     The U.S. Other Synthetic Filament Fabric Industry is Vulnerable 
to Increasing Imports. U.S. production fell by 13 percent between 
the first quarter of 2004 and the first quarter of 2005, while the 
share of the market held by U.S. producers fell by 15 percentage 
points during this period.

[FR Doc. 05-17692 Filed 9-1-05; 12:04 pm]
BILLING CODE 3510-DS-S