[Federal Register Volume 71, Number 51 (Thursday, March 16, 2006)]
[Notices]
[Pages 13586-13587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-2610]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Denial of Request to Revoke Commercial Availability Designation 
under the United States-Caribbean Basin Trade Partnership Act (CBTPA) 
and the Andean Trade Promotion and Drug Enforcement Act (ATPDEA)

March 14, 2006.
AGENCY: The Committee for the Implementation of Textile Agreements 
(CITA).

ACTION: Denial of the request to revoke commercial availability 
designation for certain compact, plied, ring-spun cotton yarn under the 
CBTPA and ATPDEA.

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SUMMARY: On January 10, 2006, the Chairman of the Committee for the 
Implementation of Textile Agreements (CITA) received a petition from 
The National Council of Textile Organizations (NCTO), alleging that a 
substitutable product for certain compacted, plied, ring-spun cotton 
yarns, with yarn counts in the range from 42 to 102 metric, classified 
in subheadings 5205.42.0020, 5205.43.0020, 5205.44.0020, 5205.46.0020, 
5205.47.0020 of the Harmonized Tariff Schedule of the United States, 
can be supplied by the domestic industry in commercial quantities in a 
timely manner. The petition requested that CITA revoke its previous 
commercial availability designation regarding these yarns under the 
CBTPA and the ATPDEA (70 FR 58190, October 5, 2005). CITA has 
determined that the subject yarns cannot be supplied by the domestic 
industry in commercial quantities and in a timely manner and that the 
petitioner has not substantiated that ring spun yarns currently 
produced by the domestic industry are substitutable for the subject 
compact, plied yarns. Therefore, CITA denies the request to revoke its 
designation made on October 5, 2005, for such yarns under the CBTPA 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 213(b)(2)(A)(v)(II) of the Caribbean Basin 
Economic Recovery Act, as added by Section 211(a) of the CBTPA; 
Section 6 of Executive Order No. 13191 of January 17, 2001; 
Presidential Proclamation 7351 of October 2, 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 CBTPA and 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 CBTPA and ATPDEA also 
provide for duty-free treatment for apparel articles that are both cut 
(or knit-to-shape) and sewn or otherwise assembled in one or more CBTPA 
and ATPDEA beneficiary countries from fabric or yarn that is not formed 
in the United States or a

[[Page 13587]]

beneficiary country, 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, the President delegated 
to CITA the authority to determine whether yarns or fabrics cannot be 
supplied by the domestic industry in commercial quantities in a timely 
manner under the CBTPA and ATPDEA and directed CITA to establish 
procedures to ensure appropriate public participation in any such 
determination. On March 6, 2001, CITA published procedures that it will 
follow in considering requests (66 FR 13502).
    On October 5, 2005, following a determination that certain 
compacted, plied, ring spun cotton yarns could not be supplied by the 
domestic industry in commercial quantities in a timely manner under the 
CBTPA and ATPDEA, CITA designated certain apparel made from U.S. formed 
fabric containing such yarns as eligible for duty-free treatment under 
the CBTPA and ATPDEA. On January 10, 2006, the Chairman of CITA 
received a petition from The National Council of Textiles Organizations 
(NCTO) alleging that yarns substitutable for these yarns can be 
supplied by the domestic industry in commercial quantities in a timely 
manner, and requesting that CITA revoke its previous designation 
regarding these yarns. On January 17, 2006, CITA published a Federal 
Register notice requesting public comments on NCTO's request (71 FR 
3057).
    The Industry Trade Advisory Committees (ITACs) charters and 
members' appointments expired on February 5, 2006, and have not yet 
been renewed. Therefore, CITA was not able to seek ITAC advice on this 
request. USTR requested the advice of the U.S. International Trade 
Commission (ITC) on the probable economic effects on the domestic 
industry of granting the request.
    On February 6, 2006, CITA and USTR offered to hold consultations 
with the Senate Finance Committee and the House Ways and Means 
Committee. The Senate Finance Committee responded with general 
procedural questions, but provided no substantive comments. CITA met 
with the House Ways and Means Committee on March 9, 2006, and discussed 
CITA's authority to revoke a prior designation and discussed the 
substance of the case.
    CITA carefully reviewed the request, the comments, advice received, 
and met with interested parties on February 22, 2006. Based on our 
review of the information provided, the ITC report, the public comments 
received, and our knowledge in the industry, CITA finds that the 
subject yarns cannot be supplied by the domestic industry in commercial 
quantities in a timely manner. CITA also finds that the petitioner has 
not substantiated its claim that ring spun yarns currently produced by 
the domestic industry are substitutable for the subject compact, plied 
yarns.
    On the basis of currently available information and our review of 
this request, CITA has determined that the domestic industry cannot 
supply the subject fabrics in commercial quantities in a timely manner. 
Therefore, CITA is denying the request to revoke its previous 
designation.

James C. Leonard III,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 06-2610 Filed 3-14-06; 2:20 pm]
BILLING CODE 3510-DS