[Federal Register Volume 70, Number 204 (Monday, October 24, 2005)]
[Rules and Regulations]
[Pages 61363-61364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21215]



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DEPARTMENT OF COMMERCE

International Trade Administration

15 CFR Parts 335 and 340

[Docket No. 050406093-5259-02]
RIN 0625-AA67


Imports of Certain Worsted Wool Fabric: Implementation of Tariff 
Rate Quota Established Under Title V of the Trade and Development Act 
of 2000

ACTION: Final rule.

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SUMMARY: The Department of Commerce publishes this final rule to adopt, 
without change, an interim final rule that implemented tariff rate 
quotas (TRQ) for a limited quantity of worsted wool fabrics pursuant to 
Title V of the Trade and Development Act of 2000 (``the Act'') as 
amended by the Trade Act of 2002 and the Miscellaneous Trade Act of 
2004, (Pub. L. 108-429). Section 501(e) of the Act requires the 
President to fairly allocate TRQs on the import of certain worsted wool 
fabric. Section 504(b) of the Act authorizes the President to modify 
the limitations on worsted wool fabric imports under TRQs. The 
President has delegated to the Secretary of Commerce the authority to 
allocate the quantity of imports under the TRQs (specifically for wool 
products under HTS headings, 9902.51.11 and 9902.51.12) and to 
determine whether the limitations on the quantity of imports under the 
TRQs should be modified. This rule is necessary to implement the 
amendment to the Act included in the Miscellaneous Trade Act of 2004, 
(Pub. L. 108-429), which specifies which HTS categories may be 
allocated as TRQs and which eliminates Commerce's authority to modify 
these quotas.

DATES: This final rule is effective October 24, 2005.

FOR FURTHER INFORMATION CONTACT: Sergio Botero, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-4058.

SUPPLEMENTARY INFORMATION:

Background

    The Act created Harmonized Tariff Schedule of the United States 
(HTS) heading 9902.51.11 and HTS heading 9902.51.12, which establish 
two TRQs, providing for temporary reductions for three years in the 
import duties on two categories of worsted wool fabrics suitable for 
use in making suits, suit-type jackets, or trousers: (1) For worsted 
wool fabric with average fiber diameters greater than 18.5 microns, the 
reduction in duty is limited to 2,500,000 square meter equivalents or 
such other quantity proclaimed by the President; and (2) for worsted 
wool fabric with average fiber diameters of 18.5 microns or less, the 
reduction is limited to 1,500,000 square meter equivalents or such 
other quantity proclaimed by the President, respectively. The Act 
required that the TRQs be allocated. More specifically, the President 
must ensure that the TRQs are fairly allocated to persons (including 
firms, corporations, or other legal entities) who cut and sew men's and 
boys' worsted wool suits, suit-type jackets and trousers in the United 
States and who apply for an allocation based on the amount of such 
suits cut and sewn during the prior calendar year.
    The Act required that the President annually consider requests by 
U.S. manufacturers of certain worsted wool apparel to modify the 
limitation on the quantity of fabric that may be imported under the 
TRQs, and granted the President the authority to proclaim modifications 
to the limitations. In determining whether to modify the limitations, 
the President must consider specified U.S. market conditions with 
respect to worsted wool fabric and worsted wool apparel.
    In Presidential Proclamation 7383, of December 1, 2000, the 
President authorized the Secretary of Commerce: (1) To allocate the 
imports of worsted wool fabrics under the TRQs; (2) to annually 
consider requests from domestic manufacturers of worsted wool apparel 
to modify the limitation on the quantity of worsted wool fabrics that 
may be imported under the TRQs; (3) to determine whether the 
limitations on the quantity of imports of worsted wool fabrics under 
the TRQs should be modified and to recommend to the President that 
appropriate modifications be made; and (4) to issue regulations to 
implement relevant provisions of the Act.
    On December 3, 2004, the Act was amended pursuant to the 
Miscellaneous Trade Act of 2004, Public Law 108-429. The amendment 
altered the HTS categories of worsted wool eligible for the TRQs under 
the Act. Specifically, the amendment renumbered HTS heading 9902.51.12 
to HTS heading 9902.51.15. The Miscellaneous Trade Act of 2004 also 
increased to 5 million square meters from 3.5 million square meters the 
TRQ for worsted wool fabrics with average fiber diameters of 18.5 
microns or less (HTS 9902.51.15, previously numbered HTS 9902.51.12); 
and increased to 5.5 million square meters from 4.5 million square 
meters the TRQ for the worsted wool fabrics with average fiber 
diameters greater than 18.5 microns (9902.51.11).
    The amendment also authorized Commerce to allocate a new HTS 
category, HTS 9902.51.16. This HTS refers to worsted wool fabric with 
average fiber diameters of 18.5 microns or less. The amendment further 
specified that HTS 9902.51.16 is for worsted wool for the benefit of 
persons (including firms, corporations, or other legal entities) who 
weave worsted wool fabric in the United States.
    Finally, the Miscellaneous Trade Act of 2004, Public Law 108-429, 
repealed Commerce's authorization to determine whether the limitations 
on the quantity of imports of worsted wool fabrics under the TRQs 
should be modified and to recommend to the President that appropriate 
modifications be made.
    On May 16, 2005, the International Trade Administration published 
an Interim Final Rule that implemented the new HTS categories and 
allocation system and that removed Commerce's authorization to modify 
the limitation on the quantity of imports of worsted wool fabrics. The 
interim regulations were effective upon publication to allow TRQ 
recipients to import their products under the new HTS categories and 
allocation system.

Public Comments

    While the interim regulations became effective on May 16, 2005, the 
Department of Commerce solicited comments on the interim regulations 
and expressed particular interest in comments concerning any impact the 
regulations might have on small or medium sized businesses. The public 
comment period closed on July 15, 2005. The Department did not receive 
any comments on the interim regulations.

Action Being Taken by the Department of Commerce

    The Department of Commerce is adopting without change the interim 
final rule that became effective May 16, 2005. Title 15, Part 335 of 
the Code of Federal Regulations sets forth regulations regarding the 
issuance and effect of licenses for the allocation of worsted wool 
fabric under the tariff rate quotas established by Section 501 of the 
Act. Part 340 of the same title is removed.

Classification

Executive Order 12866

    This rule has been determined to be not significant under Executive 
Order 12866

Paperwork Reduction Act

    This proposed rule contains a collection-of-information requirement

[[Page 61364]]

subject to the Paperwork Reduction Act (PRA), which has received 
approval by OMB under control number 0625-0240. Notwithstanding any 
other provision of the law, no person is required to respond to, nor 
shall any person be subject to a penalty for failure to comply with, a 
collection of information subject to the requirements of the PRA, 
unless that collection of information displays a currently valid OMB 
Control Number.

    Dated: October 18, 2005.
James C. Leonard III,
Deputy Assistant Secretary for Textiles and Apparel.

PART 335--IMPORTS OF WORSTED WOOL FABRICS AND PART 340--
MODIFICATION OF THE TARIFF RATE QUOTA LIMITATION ON WORSTED WOOL 
FABRIC IMPORTS

0
Accordingly, the interim rule that amends 15 CFR part 335 and removes 
15 CFR part 340, which was published at 70 FR 25774 on May 16, 2005, is 
adopted as final rule without change.

[FR Doc. 05-21215 Filed 10-21-05; 8:45 am]
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