[Federal Register Volume 74, Number 181 (Monday, September 21, 2009)]
[Notices]
[Pages 48055-48056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22669]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Determination under the Textile and Apparel Commercial 
Availability Provision of the Dominican Republic-Central America-United 
States Free Trade Agreement (CAFTA-DR Agreement)

September 16, 2009.
AGENCY: The Committee for the Implementation of Textile Agreements.

ACTION: Determination to add a product in unrestricted quantities to 
Annex 3.25 of the CAFTA-DR Agreement.

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DATES: Effective Date: September 21, 2009.
SUMMARY: The Committee for the Implementation of Textile Agreements 
(``CITA'') has determined that certain cotton/polyester three thread 
circular knit fleece fabric, as specified below, is not available in 
commercial quantities in a timely manner in the CAFTA-DR countries. The 
product will be added to the list in Annex 3.25 of the CAFTA-DR 
Agreement in unrestricted quantities.

FOR FURTHER INFORMATION CONTACT: Maria Dybczak, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-3651.
FOR FURTHER INFORMATION ON-LINE: http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf, under ``Approved Requests,'' reference number: 
127.2009.08.07.Fabric.ST&Rfor Intradeco.

SUPPLEMENTARY INFORMATION:

    Authority: The CAFTA-DR Agreement; Section 203(o)(4) of the 
Dominican Republic-Central America-United States Free Trade 
Agreement Implementation Act (``CAFTA-DR Implementation Act''), Pub. 
Law 109-53; the Statement of Administrative Action (SAA), 
accompanying the CAFTA-DR Implementation Act; and Presidential 
Proclamations 7987 (February 28, 2006) and 7996 (March 31, 2006); 
Modifications to Procedures for Considering Requests Under the 
Commercial Availability Provision of the Dominican Republic-Central 
America-United States Free Trade Agreement, 73 FR 53200 (September 
15, 2008).

BACKGROUND

    The CAFTA-DR Agreement provides a list in Annex 3.25 for fabrics, 
yarns, and fibers that the Parties to the CAFTA-DR Agreement have 
determined are not available in commercial quantities in a timely 
manner in the territory of any Party. The CAFTA-DR Agreement provides 
that this list may be modified pursuant to Article 3.25(4)-(5), when 
the President of the United States determines that a fabric, yarn, or 
fiber is not available in commercial quantities in a timely manner in 
the territory of any Party. See Annex 3.25 of the CAFTA-DR Agreement; 
see also Section 203(o)(4)(C) of the CAFTA-DR Implementation Act.
    The CAFTA-DR Implementation Act requires the President to establish 
procedures governing the submission of a request and providing 
opportunity for interested entities to submit comments and supporting 
evidence before a commercial availability determination is made. In 
Presidential Proclamations 7987 and 7996, the President delegated to 
CITA the authority under section 203(o)(4) of CAFTA-DR Implementation 
Act for modifying the Annex 3.25 list. On September 15, 2008, CITA 
published modified procedures it would follow in considering requests 
to modify the Annex 3.25 list of products determined to be not 
commercially available in the territory of any Party to CAFTA-DR 
(Modifications to Procedures for Considering Requests Under the 
Commercial Availability Provision of the Dominican Republic-Central 
America-United States Free Trade Agreement, 73 FR 53200) 
(``procedures'').
    On August 7, 2009, the Chairman of CITA received a request for a 
commercial availability determination (``Request'') from Sandler, 
Travis & Rosenberg, P.A. on behalf of Intradeco Apparel, Inc. 
(``Intradeco''), for certain cotton/polyester three thread circular 
knit fleece fabrics. On August 11, 2009, in accordance with CITA's 
procedures, CITA notified interested parties of the Request, which was 
posted on the dedicated website for CAFTA-DR Commercial Availability 
proceedings. In its notification, CITA advised that any Response with 
an Offer to Supply (``Response'') must be submitted by August 21, 2009, 
and any Rebuttal Comments to a Response (``Rebuttal'') must be 
submitted by August 27, 2009. On August 24, 2009, CITA announced that, 
in accordance with Section 6(a) and 7(a) of its procedures, it found 
sufficient good cause to extend the deadlines for Responses to August 
24, 2009, and deadlines for Rebuttals to August 28, 2009. On August 24, 
2009, Hylos y Telas s.a. (``HyT'') submitted a Response to the Request. 
On August 28, 2009, Interdeco submitted a Rebuttal to the Response.
    In its Request, Intradeco stated that it had conducted due 
diligence to source the fabric from CAFTA-DR suppliers, including HyT. 
Intradeco reported that it had engaged in a dialogue with HyT over the 
course of several weeks, during which time it requested information 
about HyT's capacity and asked that HyT confirm its interest in 
supplying the subject fabric. The requestor asserted that HyT did not 
provide detailed information about its production capability and 
capacity to produce the subject fabric. As a result, Intradeco claimed 
that HyT did not demonstrate that it is able supply the fabric in 
question in commercial quantities in a timely manner.
    In the Response submitted by HyT, the supplier stated that it had 
been in contact with Intradeco in the course of its due diligence 
efforts, and had offered to supply the subject fabric. In the 
Confidential version of its Response, HyT provided information 
regarding its production capabilities, including quantities of past 
production of other fabrics, and an inventory of its manufacturing 
equipment. HyT also stated that it had developed a new fabric in 
response to Intradeco's inquiries, and had sent a sample to Intradeco 
on August 8, 2009. With the sample, HyT also sent a lab report 
reflecting the specifications of the fabric, known as a ``specification 
sheet.'' HyT asserted that it had provided Intradeco with the same 
specification sheet it included as an attachment in the Confidential 
version of its Response. In its Response, HyT stated that, while there 
were some variations in the specifications of the fabric it had 
developed and the required specifications of the subject fabric, ``such 
differences (were) not an obstacle

[[Page 48056]]

to fulfill the requirements of the final product.''
    Section 203(o)(4)(C) of the CAFTA-DR Implementation Act provides 
that after receiving a Request, CITA will make a determination as to 
whether the subject product is available in commercial quantities in a 
timely manner in the CAFTA-DR countries. In the instant case, the 
information on the record indicates that the fabric offered by HyT does 
not meet the specifications outlined in Intradeco's Request, differing 
in fiber content, appearance, shrinkage tolerance, and yarn 
construction. Further, HyT has not established why its proposed fabric, 
with its different specifications, is substitutable for the subject 
product. CITA therefore finds that HyT has not demonstrated its ability 
to supply the specified fabric or one substitutable. Therefore, in 
accordance with section 203(o) of the CAFTA-DR Implementation Act and 
CITA's procedures, as no interested entity has substantiated its 
ability to supply the subject product in commercial quantities in a 
timely manner, CITA has determined to add the specified fabric to the 
list in Annex 3.25 of the CAFTA-DR Agreement.
    The subject product has been added to the list in Annex 3.25 of the 
CAFTA-DR Agreement in unrestricted quantities. A revised list has been 
posted on the dedicated Website for CAFTA-DR Commercial Availability 
proceedings.

 
 
 
Specifications: Certain Cotton/Polyester Three Thread Circular Knit
 Fleece Fabric (Fabric 1)
 
HTSUS: 6001.21
Fiber Content: 77-83% cotton/17-23% polyester
Yarn Size:
1.Face Yarn: 100% combed cotton ring spun, 49/1 to 54/1 metric (29/1 to
 32/1 English) in each of the following configurations:
  a. 100% bleached or dyed cotton
  b. 95% undyed cotton/5% dyed cotton
  c. 90% undyed cotton/10% dyed cotton
  d. 80% undyed cotton/20% dyed cotton
  e. 70% undyed cotton/30% dyed cotton
  f. 60% undyed cotton/40 dyed cotton
  g. 50% undyed cotton/50% dyed cotton
  h. 40% undyed cotton/60% dyed cotton
  i. 30% undyed cotton/70% dyed cotton
  j. 25% undyed cotton/75% dyed cotton
  k. 20% undyed cotton/80% dyed cotton
  The percentages above may vary by up to 2 percentage points.
2. Tie Yarn: 176 to 184/48 filament metric filament polyester (49 to 51/
 48 filament denier)
3. Fleece Yarn: 67-73% carded cotton, 26/1 to 30/1 metric ring spun/27-
 33% 3600-4500 metric polyester staple (15.5/1 to 18/1 ring spun/2.0 to
 2.5 denier polyester staple)
Machine Gauge: 21
Weight: 232-271 grams per square meter (6.85 to 8.0 ounces per square
 yard)
Width: Not less than 152 centimeters cuttable (60 inches)
Finish: Napped on technical back; bleached and/or dyed; and of yarns of
 different colors
Performance Criteria: Not more than 5% vertical and horizontal
 shrinkage; not more than 4% vertical torque
 


Kimberly Glas,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. E9-22669 Filed 9-18-09; 8:45 am]
BILLING CODE 3510-DS