[Federal Register Volume 71, Number 187 (Wednesday, September 27, 2006)]
[Notices]
[Pages 56479-56482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15869]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Special Procedures for Considering Requests from the Public for 
Textile and Apparel Safeguard Actions on Imports from Bahrain

September 21, 2006.
AGENCY: The Committee for the Implementation of Textile Agreements (the 
Committee).

ACTION: Notice of Procedures

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SUMMARY: This notice sets forth the procedures the Committee will 
follow in considering requests from the public for textile and apparel 
safeguard actions as provided for in Title III, Subtitle B, Section 321 
through Section 328 of the United States-Bahrain Free Trade Agreement 
Implementation Act.

EFFECTIVE DATE: September 27, 2006

ADDRESSES: Requests must be submitted to: the Chairman, Committee for 
the Implementation of Textile Agreements, Room H3100, U.S. Department 
of Commerce, 14th and Constitution Avenue, N.W., Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Maria D'Andrea, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-4058.

SUPPLEMENTARY INFORMATION:

Background:

    Title III, Subtitle B, Section 321 through Section 328 of the 
United States-Bahrain Free Trade Agreement Implementation Act (the 
``Act'') implements the textile and apparel safeguard provisions, 
provided for in

[[Page 56480]]

Article 3.1 of the United States-Bahrain Free Trade Agreement (the 
``Agreement''). The safeguard mechanism applies when, as a result of 
the elimination of a customs duty under the Agreement, a textile or 
apparel article from Bahrain is being imported into the United States 
in such increased quantities, in absolute terms or relative to the 
domestic market for that article, and under such conditions as to cause 
serious damage or actual threat thereof to a U.S. industry producing a 
like or directly competitive article. In these circumstances, Article 
3.1 permits the United States to increase duties on the imported 
article from Bahrain to a level that does not exceed the lesser of the 
prevailing U.S. normal trade relations (NTR)/most-favored-nation (MFN) 
duty rate for the article or the U.S. NTR/MFN duty rate in effect on 
the day before the Agreement enters into force.
    The import tariff relief is effective beginning on the date that 
the Committee determines that a ``Bahraini textile or apparel article'' 
as defined in Section 301(2) of the Act, is being imported into the 
United States in such increased quantities, in absolute terms or 
relative to the domestic market for that article, and under such 
conditions as to cause serious damage, or actual threat thereof, to a 
U.S. industry producing an article that is like, or directly 
competitive with, the imported article. The maximum period of import 
tariff relief, as set forth in Section 3 of this notice, shall be three 
years. However, if the initial period for import tariff relief is less 
than three years, the Committee may extend the period of import relief 
to the maximum three years if the Committee determines that the 
continuation is necessary to remedy or prevent serious damage or actual 
threat thereof and to facilitate adjustment by the domestic industry to 
import competition, and that the domestic industry is, in fact, making 
a positive adjustment to import competition. Import tariff relief may 
not be applied to the same article under these procedures if relief 
previously has been granted with respect to that article under: (1) 
these provisions; or (2) Chapter 1 of Title II of the Trade Act of 
1974.
    Authority to provide import tariff relief with respect to a 
Bahraini textile or apparel article will expire ten years after duties 
on the article are eliminated pursuant to the Agreement.
    Under Article 3.1.6 of the Agreement, if the United States provides 
relief to a domestic industry under the textile and apparel safeguard, 
it must provide Bahrain ``mutually agreed trade liberalizing 
compensation in the form of concessions having substantially equivalent 
trade effects or equivalent to the value of the additional duties 
expected to result from the safeguard action.'' Such concessions shall 
be limited to textile and apparel products, unless the United States 
and Bahrain agree otherwise. If the United States and Bahrain are 
unable to agree on trade liberalizing compensation, Bahrain may 
increase customs duties equivalently on U.S. products. The obligation 
to provide compensation terminates upon termination of the safeguard 
relief. Section 327 of the Act extends the authority under Section 123 
of the Trade Act of 1974 (19 U.S.C. 2133), as amended, to measures 
taken pursuant to the Agreement's textile and apparel safeguard 
provisions.
    In order to facilitate the implementation of Title III, Subtitle B, 
Section 321 through Section 328 of the United States-Bahrain Free Trade 
Agreement Implementation Act, the Committee has determined that actions 
taken under this safeguard fall within the foreign affairs exception to 
the rulemaking provision of 5 U.S.C. 553(a)(1), and this notice does 
not waive that determination. These procedures are not subject to the 
requirement to provide prior notice and opportunity for public comment, 
pursuant to 5 U.S.C. 553(a)(1) and 553(b)(A).
    1. Requirements for Requests. Pursuant to Section 321(a) of the Act 
and Section 6 of Presidential Proclamation 8039 of July 27, 2006, an 
interested party may file a request for a textile and apparel safeguard 
action with the Committee. The Committee will review requests from the 
interested party sent to the Chairman, Committee for the Implementation 
of Textile Agreements, Room 3100, U.S. Department of Commerce, 14th and 
Constitution Avenue, N.W., Washington, DC 20230. Ten copies of any such 
request must be provided. As provided in Section 328 of the Act, the 
Committee will protect from disclosure any business confidential 
information that is marked ``business confidential'' to the full extent 
permitted by law. To the extent that business confidential information 
is provided, two copies of a non-confidential version must also be 
provided, in which business confidential information is summarized or, 
if necessary, deleted. At the conclusion of the request, an interested 
party must attest that ``all information contained in the request is 
complete and accurate and no false claims, statements, or 
representations have been made.'' Consistently with Section 321(a), the 
Committee will review a request initially to determine whether to 
commence consideration of the request on its merits. Within 15 working 
days of receipt of a request, the Committee will determine whether the 
request provides the information necessary for the Committee to 
consider the request in light of the considerations set forth below. If 
the request does not, the Committee will promptly notify the requester 
of the reasons for this determination and the request will not be 
considered. However, the Committee will reevaluate any request that is 
resubmitted with additional information.
    Consistent with longstanding Committee practice in considering 
textile safeguard actions, the Committee will consider an interested 
party to be an entity (which may be a trade association, firm, 
certified or recognized union, or group of workers) that is 
representative of either: (A) a domestic producer or producers of an 
article that is like or directly competitive with the subject Bahraini 
textile or apparel article; or (B) a domestic producer or producers of 
a component used in the production of an article that is like or 
directly competitive with the subject Bahraini textile or apparel 
article.
    A request will only be considered if the request includes the 
specific information set forth below in support of a claim that a 
textile or apparel article from Bahrain is being imported into the 
United States in such increased quantities, in absolute terms or 
relative to the domestic market for that article, and under such 
conditions as to cause serious damage or actual threat thereof, to a 
U.S. industry producing an article that is like, or directly 
competitive with, the imported article.
    A. Product description. Name and description of the imported 
article concerned, including the category or categories or part thereof 
of the U.S. Textile and Apparel Category System (see ``Textile 
Correlation'' at http://otexa.ita.doc.gov/corr.html) under which such 
article is classified, the Harmonized Tariff Schedule of the United 
States subheading(s) under which such article is classified, and the 
name and description of the like or directly competitive domestic 
article concerned.
    B. Import data. The following data, in quantity by category unit 
(see ``Textile Correlation''), on total imports of the subject article 
into the United States and imports from Bahrain into the United States:
     * Annual data for the most recent three full calendar years for 
which such data are available;
     * Quarterly data for the most recent year for which such data are

[[Page 56481]]

partially available, and quarterly data for the same quarter(s) of the 
previous year (e.g. January-March 2005, April-June 2005 and January-
March 2004, April-June 2004).
    The data should demonstrate that imports of a Bahraini origin 
textile or apparel article that are like or directly competitive with 
the articles produced by the domestic industry concerned are increasing 
rapidly in absolute terms or relative to the domestic market for that 
article.
    C. Production data. The following data, in quantity by category 
unit (see ``Textile Correlation''), on U.S. domestic production of the 
like or directly competitive articles of U.S. origin indicating the 
nature and extent of the serious damage or actual threat thereof:
     * Annual data for the most recent three full calendar years for 
which such data are available;
     * Quarterly data for the most recent year for which such data are 
partially available, and quarterly data for the same quarter(s) of the 
previous year (e.g. January-March 2005, April-June 2005 and January-
March 2004, April-June 2004).
    If the like or directly competitive article(s) of U.S. origin does 
not correspond to a category or categories of the U.S. Textile and 
Apparel Category system for which production data are available from 
official statistics of the U.S. Department of Commerce (see ``U.S. 
Imports, Production, Markets, Import Production Ratios and Domestic 
Market Shares for Textile and Apparel Product Categories'' at website 
http://otexa.ita.doc.gov/ipbook.pdf), the requester must provide a 
complete listing of all sources from which the data were obtained and 
an affirmation that to the best of the requester's knowledge, the data 
represent substantially all of the domestic production of the like or 
directly competitive article(s) of U.S. origin. In such cases, data 
should be reported in the first unit of quantity in the Harmonized 
Tariff Schedule of the United States (http://www.usitc.gov/tata/hts) 
for the Bahraini origin textile and/or apparel articles and the like or 
directly competitive articles of U.S. origin.
    D. Market Share Data. The following data, in quantity by category 
unit (see ``Textile Correlation''), on imports from Bahrain as a 
percentage of the domestic market (defined as the sum of domestic 
production of the like or directly competitive article and total 
imports of the subject article); on total imports as a percentage of 
the domestic market; and on domestic production of like or directly 
competitive articles as a percentage of the domestic market:
     * Annual data for the most recent three full calendar years for 
which such data are available;
     * Quarterly data for the most recent year for which such data are 
partially available, and quarterly data for the same quarter(s) of the 
previous year (e.g. January-March 2005, April-June 2005 and January-
March 2004, April-June 2004).
    E. Additional data showing serious damage or actual threat thereof. 
All data available to the requester showing changes in productivity, 
utilization of capacity, inventories, exports, wages, employment, 
domestic prices, profits, and investment, and any other information, 
relating to the existence of serious damage or actual threat thereof 
caused by imports from Bahrain to the industry producing the like or 
directly competitive article that is the subject of the request. To the 
extent that such information is not available, the requester should 
provide best estimates and the basis therefore:
     * Annual data for the most recent three full calendar years for 
which such data are available;
     * Quarterly data for the most recent year for which such data are 
partially available, and quarterly data for the same quarter(s) of the 
previous year (e.g. January-March 2005, April-June 2005 and January-
March 2004, April-June 2004).
    2. Consideration of Requests. Consistent with Section 321(b) of the 
Act, if the Committee determines that the request provides the 
information necessary for it to be considered, the Committee will cause 
to be published in the Federal Register a notice seeking public 
comments regarding the request, which will include a summary of the 
request and the date by which comments must be received. The Federal 
Register notice and the request, with the exception of information 
marked ``business confidential,'' will be posted by the Department of 
Commerce's Office of Textiles and Apparel (``OTEXA'') on the Internet 
(http://otexa.ita.doc.gov). The comment period shall be 30 calendar 
days. To the extent business confidential information is provided, a 
non-confidential version must also be provided, in which business 
confidential information is summarized or, if necessary, deleted. At 
the conclusion of its submission of such public comments, an interested 
party must attest that ``all information contained in the request is 
complete and accurate and no false claims, statements, or 
representations have been made.'' Comments received, with the exception 
of information marked ``business confidential,'' will be available in 
the Department of Commerce's Trade Information Center for review by the 
public. If a comment alleges that there is no serious damage or actual 
threat thereof, or that the subject imports are not the cause of the 
serious damage or actual threat thereof, the Committee will closely 
review any supporting information and documentation, such as 
information about domestic production or prices of like or directly 
competitive articles. In the case of requests submitted by entities 
that are not the actual producers of a like or directly competitive 
article, particular consideration will be given to comments 
representing the views of actual producers in the United States of a 
like or directly competitive article.
    Any interested party may submit information to rebut, clarify, or 
correct public comments submitted by any other interested party at any 
time prior to the deadline provided in this section for submission of 
such public comments. If public comments are submitted less than 10 
days before, or on, the applicable deadline for submission of such 
public comments, an interested party may submit information to rebut, 
clarify, or correct the public comments no later than 10 days after the 
applicable deadline for submission of public comments.
    With respect to any request considered by the Committee, the 
Committee will make a determination within 60 calendar days of the 
close of the comment period. If the Committee is unable to make a 
determination within 60 calendar days, it will cause to be published in 
a notice in the Federal Register, including the date by which it will 
make a determination. If the Committee makes a negative determination, 
it will cause this determination and the reasons therefore to be 
published in the Federal Register.
    3. Determination and Provision of Relief. The Committee shall 
determine whether, as a result of the reduction or elimination of a 
duty under the Agreement, a Bahraini textile or apparel article is 
being imported into the United States in such increased quantities, in 
absolute terms or relative to the domestic market for that article, and 
under such conditions as to cause serious damage, or actual threat 
thereof, to a domestic industry producing an article that is like, or 
directly competitive with, the imported article. In making a 
determination, the Committee: (1) shall examine the effect of increased 
imports on the domestic industry as reflected in such relevant economic 
factors as output,

[[Page 56482]]

productivity, utilization of capacity, inventories, market share, 
exports, wages, employment, domestic prices, profits, and investment, 
none of which is necessarily decisive; and (2) shall not consider 
changes in technology or consumer preference as factors supporting a 
determination of serious damage or actual threat thereof. The 
Committee, without delay, will provide written notice of its decision 
to the Government of Bahrain and will consult with said party upon its 
request.
    If a determination under this section is affirmative, the Committee 
may provide import tariff relief to a U.S. industry to the extent 
necessary to remedy or prevent the serious damage or actual threat 
thereof and to facilitate adjustment by the domestic industry to import 
competition. Such relief may consist of an increase in duties to the 
lower of: (1) the NTR/MFN duty rate in place for the textile or apparel 
article at the time the relief is granted; or (2) the NTR/MFN duty rate 
for that article on the day before the Agreement enters into force.
    The import tariff relief is effective beginning on the date that 
the Committee's affirmative determination is published in the Federal 
Register. The maximum period of import tariff relief shall be three 
years. However, if the initial period for import relief is less than 
three years, the Committee may extend the period of import relief to 
the maximum three years if the Committee determines that the 
continuation is necessary to remedy or prevent serious damage or actual 
threat thereof and to facilitate adjustment, and that there is evidence 
that the domestic industry is making a positive adjustment to import 
competition. Import tariff relief may not be imposed for an aggregate 
period greater than three years. Import tariff relief may not be 
applied to the same article under these procedures if relief previously 
has been granted with respect to that article under: (1) these 
provisions; or (2) Chapter 1 of Title II of the Trade Act of 1974.
    Authority to provide import tariff relief for a textile or apparel 
article from Bahrain that is being imported into the United States in 
such increased quantities, in absolute terms or relative to the 
domestic market for that article, and under such conditions as to cause 
serious damage or actual threat thereof to a U.S. industry producing a 
like or directly competitive article, will expire ten years after 
duties on the article are eliminated pursuant to the Agreement.
    4. Self Initiation. The Committee may, on its own initiative, 
consider whether imports of a textile or apparel article from Bahrain 
are being imported into the United States in such increased quantities, 
in absolute terms or relative to the domestic market for that article, 
and under such conditions as to cause serious damage or actual threat 
thereof to a U.S. industry producing a like or directly competitive 
article. In such considerations, the Committee will follow procedures 
consistent with those set forth in Section 2 of this notice, including 
causing to be published in the Federal Register a notice seeking public 
comment regarding the action it is considering.
    4. Record Keeping and Business Confidential Information. OTEXA will 
maintain an official record for each request on behalf of the 
Committee. The official record will include all factual information, 
written argument, or other material developed by, presented to, or 
obtained by OTEXA regarding the request, as well as other material 
provided to the Department of Commerce by other government agencies for 
inclusion in the official record. The official record will include 
Committee memoranda pertaining to the request, memoranda of Committee 
meetings, meetings between OTEXA staff and the public, determinations, 
and notices published in the Federal Register. The official record will 
contain material which is public, business confidential, privileged, 
and classified, but will not include pre-decisional inter-agency or 
intra-agency communications. If the Committee decides it is appropriate 
to consider materials submitted in an untimely manner, such materials 
will be maintained in the official record. Otherwise, such material 
will be returned to the submitter and will not be maintained as part of 
the official record. OTEXA will make the official record public except 
for business confidential information, privileged information, 
classified information, and other information the disclosure of which 
is prohibited by U.S. law. The public record will be available to the 
public for inspection and copying in a public reading room located in 
the Department of Commerce, Trade Information Center.
    Information designated by the submitter as business confidential 
will normally be considered to be business confidential unless it is 
publicly available. The Committee will protect from disclosure any 
business confidential information that is marked ``business 
confidential'' to the full extent permitted by law. To the extent that 
business confidential information is provided, two copies of a non-
confidential version must also be provided, in which business 
confidential information is summarized or, if necessary, deleted. The 
Committee will make available to the public non-confidential versions 
of the request that is being considered, non-confidential versions of 
any public comments received with respect to a request, and, in the 
event consultations are requested, the statement of the reasons and 
justifications for the determination subsequent to the delivery of the 
statement to Bahrain.

Philip J. Martello,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc. E6-15869 Filed 9-26-06; 8:45 am]
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