[Federal Register Volume 77, Number 53 (Monday, March 19, 2012)]
[Notices]
[Pages 16001-16008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6725]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Interim Procedures for Considering Requests Under the Commercial 
Availability Provision of the United States-Korea Free Trade Agreement 
and Estimate of Burden for Collection of Information

AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Notice of interim procedures and request for comments; estimate 
of information collection burden.

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SUMMARY: This notice sets forth the interim procedures the Committee 
for the Implementation of Textile Agreements (``CITA'') will follow in 
implementing certain provisions of the United States-Korea Free Trade 
Agreement Implementation Act (the

[[Page 16002]]

``Act''). Section 202(o)(3)(F) of the Act provides that the President 
shall establish procedures to govern the submission of requests to 
modify the list of fibers, yarns, or fabrics not available in 
commercial quantities in a timely manner in the United States as set 
out in Annex 4-B-1 of the United States-Korea Free Trade Agreement (the 
``Agreement''). The President has delegated to CITA the authority to 
determine whether fibers, yarns, or fabrics are not available in 
commercial quantities in a timely manner in the United States and has 
directed CITA to establish procedures that govern the submission of a 
request and provide the opportunity for interested entities to submit 
comments and supporting evidence in any such determination pursuant to 
the Act and the Agreement. CITA hereby gives notice to interested 
entities of the procedure CITA will follow in considering such requests 
and solicits public written comments on these interim procedures.
    In accordance with the Paperwork Reduction Act, this notice further 
provides an estimate of the burden to the public to collect and submit 
information as required by Section 202(o)(3)(F) of the Act and CITA's 
interim procedures. CITA hereby gives notice of the estimated burden to 
the public.

DATES: As of March 19, 2012, CITA intends to use these interim 
procedures to process requests from the public. CITA solicits public 
written comments on the interim procedures. Comments must be received 
no later than April 18, 2012 in either hard copy or electronically.

ADDRESSES: If submitting comments in hard copy, an original, signed 
document must be submitted to the Chairman, Committee for the 
Implementation of Textile Agreements, Room 3100, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230. If submitting comments electronically, an electronic copy, via 
electronic mail (``email'') must be submitted to [email protected]. 
All submitted comments will be posted for public review on the Web site 
dedicated to U.S.-Korea FTA commercial availability proceedings. The 
Web site is located on the U.S. Department of Commerce's Office of 
Textile and Apparel Web site (www.otexa.ita.doc.gov), under 
``Commercial Availability''/``Korea FTA.'' Additional instructions 
regarding the submission of comments may be found at the end of this 
notice.

FOR FURTHER INFORMATION CONTACT: Maria D'Andrea, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-1550.

SUPPLEMENTARY INFORMATION: Legal Authority: Section 202(o) of the Act; 
Proclamation No. 8783 (77 FR 14265, March 9, 2012); and the United 
States-Korea Free Trade Agreement.

Background

    The Agreement provides for a list in Appendix 4-B-1 for fibers, 
yarns, and fabrics that the United States has determined are not 
available in commercial quantities in a timely manner from suppliers in 
the United States. A textile or apparel good imported into the United 
States containing fibers, yarns, or fabrics that are included on the 
list in Appendix 4-B-1 of the Agreement will be treated as if it is an 
originating good for purposes of the specific rules of origin in Annex 
4-A of the Agreement, regardless of the actual origin of those inputs, 
in accordance with the specific rules of origin of Annex 4-A. Section 
202(o)(3)(F) of the Act provides that the President shall establish 
procedures under sections 202(o)(3)(C) and (E) in order to determine 
whether fibers, yarns, or fabrics are not available in commercial 
quantities in a timely manner in the United States, and whether a 
fiber, yarn, or fabric should be removed from the list in Appendix 4-B-
1 when it has become available in commercial quantities.
    In accordance with Annex 4-B-5 of the Agreement, the preferential 
tariff treatment accorded to a good provided in Harmonized Tariff 
Schedule of the United States (HTSUS) Chapters 51, 52, 54, 55, 58, or 
60 that contains fibers, yarns, or fabric that are included in Appendix 
4-B-1 of the Agreement and that satisfies the requirements of Rule 1 of 
Section XI of Annex 4-A, is limited to 100 million square meter 
equivalents in each of the first five years in which the Agreement is 
in force.
    In accordance with Annex 4-B-6 of the Agreement, the preferential 
tariff treatment accorded to a good provided in HTSUS Chapters 61 or 62 
that contains fibers, yarns, or fabric that are included in Appendix 4-
B-1 of the Agreement and that satisfies the requirements of Rule 2 or 3 
of Section XI of Annex 4-A, is limited to 100 million square meter 
equivalents in each of the first five years in which the Agreement is 
in force.
    To determine the quantity of square meter equivalents that is 
charged against the annual quantities described above, CITA shall apply 
the conversion factors listed in, or utilize a methodology based on, 
the Correlation: U.S. Textile and Apparel Category System with the 
Harmonized Tariff Schedule of the United States of America, U.S. 
Department of Commerce, Office of Textiles and Apparel (2007), or a 
successor document.
    Unless the United States and Korea otherwise agree, these 
procedures implementing Annex 4-B of the Agreement shall cease to apply 
beginning on January 1 of the sixth calendar year in which the 
Agreement is in force.
    In Proclamation No. 8783, (77 FR 14265, March 9, 2012), the 
President delegated to CITA his authority under the commercial 
availability provision to establish procedures for modifying the list 
of fibers, yarns, or fabrics not available in commercial quantities in 
a timely manner, as set out in Annex 4-B of the Agreement.
    Pursuant to that delegation, CITA provides below its interim 
procedures governing the submission of requests under Section 203(o) in 
the Act. As of March 19, 2012, CITA intends to use these procedures to 
process requests for modifying the list of fibers, yarns, or fabrics 
not available in commercial quantities. CITA intends to publish its 
final procedures after considering any public comments received 
pursuant to its request for comments.

Interim Procedures

1. Introduction

    The intent of these procedures is to foster the trade in U.S. and 
Korean textile and apparel articles by allowing non-originating fibers, 
yarns, and fabrics to be placed on or removed from a list of items not 
available in commercial quantities, on a timely basis, and in a manner 
that is consistent with normal business practice. To this end, these 
procedures are intended to facilitate the transmission, on a timely 
basis, of requests for commercial availability determinations and 
offers to supply the products that are the subject of the requests; 
have the market indicate the availability of the supply of the subject 
products; make available promptly, to interested entities and parties, 
information received regarding the requests for products and offers to 
supply; ensure wide participation by interested entities and parties; 
provide careful scrutiny of information provided to substantiate order 
requests and responses of offers to supply; and provide timely public 
dissemination of information used by CITA in making commercial 
availability determinations.

[[Page 16003]]

2. Definitions

    (a) Commercial Availability Request. A Request for a commercial 
availability determination submitted by an interested entity requesting 
that CITA place a fiber, yarn, or fabric on the Commercial Availability 
List in Appendix 4-B-1 of the Agreement because that fiber, yarn, or 
fabric is not available in commercial quantities in a timely manner 
from a U.S. supplier.
    (b) Commercial Availability List. The list of products (fibers, 
yarns, and/or fabrics) contained in Appendix 4-B-1 of the Agreement 
that have been determined to be not commercially available from U.S. 
suppliers in commercial quantities in a timely manner.
    (c) Fiber, Yarn, or Fabric. A single product or a range of 
products, which meet the same specifications provided in a submission, 
and which may be only part of a Harmonized Tariff Schedule of the 
United States (``HTSUS'') classification.
    (d) Interested Entity. The government of Korea, a potential or 
actual purchaser of a textile or apparel good, or a potential or actual 
supplier of a textile or apparel good. CITA recognizes that a legal or 
other representative may act on behalf of an interested entity. See 
Section 202(o)(3)(B)(i) of the Act.
    (e) Interested Party. A person that requests to be included on the 
email notification list for commercial availability proceedings. Any 
person may become an interested party by contacting CITA either by 
sending an email to [email protected], or through the Web site 
dedicated to commercial availability proceedings under the Agreement 
(``KOREA FTA Commercial Availability Web site'' or ``Web site''). The 
Web site is located on the U.S. Department of Commerce's Office of 
Textiles and Apparel Web site (www.otexa.ita.doc.gov), under 
``Commercial Availability''/``Korea FTA.''
    (f) Official Receipt. CITA's email confirmation that it has 
received both the email version and the original submission signed by 
the interested entity delivered via express courier.
    (g) Rebuttal Comment. A submission from an interested entity 
providing information in response to evidence or arguments raised in a 
Response. A Rebuttal must be limited to evidence and arguments provided 
in a Response.
    (h) Request to Remove. A submission from an interested entity 
requesting that CITA remove a product from the Appendix 4-B-1 list 
pursuant to Section 202(o)(3)(C)(iii) of the Act.
    (i) Requestor. The interested entity that files, for CITA's 
consideration, a Commercial Availability Request or a Request to Remove 
under the commercial availability provision of the Act.
    (j) Response with an Offer to Supply. A submission from an 
interested entity to CITA objecting to the Request and asserting its 
ability to supply the subject product by providing an offer to supply 
the subject product described in the Request.
    (k) U.S. Business Day. Any calendar day other than a Saturday, 
Sunday, or a legal holiday observed by the Government of the United 
States. See section 202(o)(3)(B)(ii) of the Act.
    (l) U.S. Supplier. A potential or actual manufacturer of a textile 
or apparel good in the United States.

3. Submissions for Participation in a Commercial Availability 
Proceeding

    (a) Filing a Submission. All submissions for a commercial 
availability proceeding pursuant to these procedures (e.g., Commercial 
Availability Request, Response, Rebuttal, and Request to Remove) must 
be in English. If any attachments are in a language other than English, 
a complete translation must be provided. Each submission must be 
submitted to the Chairman of CITA, in care of the U.S. Department of 
Commerce's Office of Textiles and Apparel (``OTEXA'') in two forms: 
email and an original signed submission.
    (1) An email version of the submission must be either in PDF or 
Word format, must contain an adequate public summary of any business 
confidential information and the due diligence certification, and 
should be sent to [email protected]. The email version of the 
submission will be posted for public review on KOREA FTA Commercial 
Availability Web site. No business confidential information should be 
submitted in the email version of any document.
    (2) The original signed submission must be sent via express courier 
to--Chairman, Committee for the Implementation of Textile Agreements, 
Room 3100, U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW., Washington, DC 20230. Any business confidential 
information upon which an interested entity wishes CITA to rely must be 
included in the original signed submission. Except for the inclusion of 
business confidential information and corresponding public summary, the 
two versions of a submission should be identical.
    (3) Brackets must be placed around all business confidential 
information contained in submissions. Documents containing business 
confidential information must have a bolded heading stating 
``Confidential Version.'' Attachments considered business confidential 
information must have a heading stating ``Business Confidential 
Information.'' Documents, including those submitted via email, provided 
for public release must have a bolded heading stating ``Public 
Version'' and all the business confidential information must be deleted 
from public versions, and substituted with an adequate public summary.
    (4) Generally, details such as quantities and lead times for 
providing the subject product can be treated as business confidential 
information. However, the names of suppliers who were contacted, 
general information about the capability to manufacture the subject 
product, and the responses thereto should be included in public 
versions.
    (b) Due Diligence Certification. Each submission containing factual 
information for CITA's consideration must be accompanied by the 
appropriate certification regarding the accuracy of the factual 
information. An interested entity must file a certification of due 
diligence as described below in subsection (b)(1) with each electronic 
and original signed submissions that contains factual information. If 
the interested entity has legal counsel or other representative, the 
legal counsel or other representative must also file a certification of 
due diligence as described in subsection (b)(2) with each electronic 
and original signed submissions that contains factual information. 
Accurate representations of material facts submitted to CITA for the 
Commercial Availability Proceeding are vital to the integrity of this 
process and are necessary for CITA's effective administration of the 
statutory scheme. Each submission containing factual information for 
CITA's consideration must be accompanied by the appropriate 
certification regarding the accuracy of the factual information. Any 
submission that lacks the applicable certifications will be considered 
an incomplete submission that CITA will reject and return to the 
submitter. CITA may verify any factual information submitted by 
interested entities in a Commercial Availability Proceeding.
    (1) For the person responsible for presentation of the factual 
information: I, (name and title), currently employed by (interested 
entity), certify that (1) I have read the attached submission, and (2) 
the information contained in this submission is, to the best of my 
knowledge, complete and accurate.
    (2) For the person's legal counsel or other representative: I, 
(name), of (law

[[Page 16004]]

or other firm), counsel or representative to (interested entity), 
certify that (1) I have read the attached submission, and (2) based on 
the information made available to me by (person), I have no reason to 
believe that this submission contains any material misrepresentation or 
omission of fact.
    (c) Official Receipt. A submission will be considered officially 
submitted to CITA only when both the email version and the original 
signed submission have been received by CITA. For Commercial 
Availability Requests, CITA will provide email confirmation to the 
requestor that both versions were received. CITA's email confirmation 
shall be considered the ``official receipt'' of the Request, which will 
begin the statutory 30 U.S. business day process for CITA's 
consideration. CITA will confirm official receipt of any Response and 
Rebuttal by posting the submissions on the KOREA FTA Commercial 
Availability Web site.

4. Submitting a Request for Consideration in a Commercial Availability 
Proceeding.

    (a) Commercial Availability Request. An interested entity may 
submit a Request to CITA alleging that a fiber, yarn, or fabric is not 
available in commercial quantities in a timely manner from a U.S. 
supplier.
    (b) Contents of a Commercial Availability Request.
    (1) Detailed Product Information. The Commercial Availability 
Request must provide a detailed description of the subject product, 
including, if applicable, fiber content, construction, yarn size, and 
finishing processes; and the classification of the product under the 
HTSUS. All measurements in the entire submission must be stated in 
metric units. If the English count system is used in any part, then a 
conversion to metric units must be provided. The description must 
include reasonable product specifications, including, if applicable, 
fiber content, construction, yarn size, and finishing processes, as 
well as timelines and quantities. Reasonable product specifications 
include the use of accepted terminology and standards, such as those 
used by American Society for Testing and Materials (``ASTM'') or the 
American Association of Textile Chemists and Colorists (``AATCC'').
    If any aspect of the Commercial Availability Request is outside the 
normal course of business (e.g., tight deadline, higher standards of 
performance, requirements to match existing specifications), requestors 
must provide U.S. suppliers with detailed explanations and measurable 
criteria for the specification or term at issue. In the course of its 
review of the Commercial Availability Request, CITA will consider 
record evidence to determine whether such specifications and terms are 
reasonable.
    The requestor must clearly describe the unique characteristics of 
the subject product that distinguish it from other similar or 
potentially substitutable products. In addition, the requestor must 
also explain why such characteristics are required for the purposes of 
the end-use of the product and cannot be substituted by another 
product. However, all characteristics and specifications must be 
supported by measurable criteria.
    (2) Quantity. The Commercial Availability Request must provide the 
specific quantity of the product needed by the requestor, in standard 
units of quantity for production of the subject product in the United 
States.
    (3) Due Diligence. The Commercial Availability Request must provide 
a complete description of the due diligence undertaken by the requestor 
to determine the subject product's availability in the United States. 
Due diligence for the requestor means it has made reasonable efforts to 
obtain the subject product from U.S. suppliers.
    (i) Generally: The requestor must provide the names and addresses 
of suppliers contacted, the name and position of the individuals 
specifically contacted, the exact request that was made, the dates of 
those contacts, whether a sample of the subject product was provided 
for review, and the exact response given for the supplier's inability 
to supply the subject product under the same conditions as contained in 
the Commercial Availability Request submitted to CITA, in addition to 
any other information the requestor believes is relevant. The requestor 
must submit copies or notes of relevant correspondence, both inquiries 
and responses, with these suppliers. Relevant correspondence includes 
notes of telephone conversations.
    (ii) Identification of U.S. suppliers: Requestors must make 
reasonable efforts to identify U.S. suppliers. Requestors should 
identify U.S. suppliers through a number of means, including the 
requestor's knowledge of the industry, industry directories, and 
industry association memberships. For instance, an email from a 
requestor with a general inquiry to all manufacturers in the United 
States may not constitute due diligence. Rather, reasonable efforts 
must be taken to identify U.S. suppliers who are generally known to 
produce the class or type of product at issue. Requestors must provide 
an explanation in their Request as to why their efforts to identify 
U.S. suppliers were reasonable given the product at issue.
    (iii) Use of Third Parties and Business-to-Business Contact: Due 
diligence includes substantive and direct contact, indicating a 
legitimate intent to do business, between requestors and U.S. 
suppliers. Third party communications are no substitute for meaningful 
dialogue between appropriate officials. Once interest is expressed 
between a requestor and a U.S. supplier, subsequent communications 
should be conducted by appropriate officials of the requestor and U.S. 
supplier based on normal business practice. A lack of appropriate 
business-to-business contact may be deemed to be insufficient due 
diligence.
    (iv) Description of the Subject Product: In undertaking due 
diligence, requestors must provide a detailed description of the 
product to U.S. suppliers. The description must include reasonable 
product specifications, including, if applicable, fiber content, 
construction, yarn size, and may include a finishing process or 
operation, as well as timelines and quantities. Reasonable product 
specifications include the use of accepted terminology and standards, 
such as those used by ASTM or AATCC. If any aspect of the Request is 
outside the normal course of business (e.g., tight deadline, higher 
standards of performance, requirements to match existing 
specifications), requestors must provide U.S. suppliers with detailed 
explanations and measurable criteria for the specification or term at 
issue that would render such aspects as reasonable for the product in 
question. CITA will consider record evidence to determine whether such 
specifications and terms are reasonable.
    (v) Provision of Samples: In undertaking its due diligence, a 
requestor must clearly communicate to U.S. suppliers its standard 
business practice with respect to the provision of samples. While 
requestors may request a sample, a U.S. supplier is not required to 
provide a sample under CITA's procedures. However, CITA notes that U.S. 
suppliers must meet certain requirements with respect to the provision 
of samples and/or information demonstrating their ability to supply the 
subject product in commercial quantities in a timely manner. See 
Section 6(b)(3) and Section 6(b)(4).
    (vi) Substitutability of Products: In undertaking its due 
diligence, a requestor must clearly communicate information regarding 
the substitutability of the product in question to U.S. suppliers. In 
its inquiries to U.S. suppliers, the requestor

[[Page 16005]]

must clearly describe the unique characteristics of the subject product 
that distinguishes it from other similar or potentially substitutable 
products. In addition, the requestor must provide U.S. suppliers with 
information why such characteristics are required for the purposes of 
the end-use of the product and cannot be substituted by another 
product. However, all characteristics and specifications must be 
supported by measurable criteria. If, in the course of due diligence, a 
U.S. supplier proposes a substitutable product, the requestor must 
provide reasonable justifications to the U.S. supplier for rejecting 
potentially substitutable products.
    (vii) Treatment of Business Confidential Information: Specific 
details of correspondence with suppliers, such as quantities and lead 
times for providing the subject product, can be treated as business 
confidential information. However, the names of U.S. suppliers who were 
contacted, what was asked generally about the capability to manufacture 
the subject product, and the responses thereto should be available for 
public review to ensure proper public participation in the process. 
``Lead times'' refers to supplying the subject product within normal 
business time frames for the subject product once an order is received. 
Specific delivery dates are not necessary. Required delivery dates that 
fall within the time needed to complete the commercial availability 
determination process are not acceptable.
    (4) Substitutable Products. The Commercial Availability Request 
must provide information on whether the requestor believes that other 
products supplied by the U.S. supplier are not substitutable in 
commercial quantities in a timely manner for the product(s) that is 
(are) the subject of the Request for purposes of the intended use. 
Clearly describe the unique characteristics of the subject product that 
distinguishes it from other similar or potentially substitutable 
products. Describe why such characteristics are required for the 
purposes of the end-use of the product and cannot be substituted by 
another product available from a U.S. supplier.
    (5) Additional Information. The Commercial Availability Request may 
provide any additional evidence or information believed to be relevant 
for CITA to determine whether a fiber, yarn, or fabric is not available 
in commercial quantities in a timely manner from a supplier in the 
United States.

5. Consideration and Acceptance of a Commercial Availability Request

    In considering whether to accept a Commercial Availability Request, 
CITA will consider and determine whether the Request provides all the 
required information specified in Sections 3 and 4 of these Interim 
Procedures. CITA will determine whether to accept the Request for 
consideration and investigation not later than two U.S. business days 
after the official receipt.
    (a) Request Rejected. If CITA determines that the Commercial 
Availability Request does not contain the required information, the 
requestor will be notified promptly by email that the Request has not 
been accepted and the reasons for the rejection. A Commercial 
Availability Request may be resubmitted with additional information for 
the subject product and CITA will reevaluate it as a new Request.
    (1) Requests for Downstream Products with Inputs Not Commercially 
Available. If, in its initial review of a Commercial Availability 
Request, CITA determines that a subject product would be commercially 
available but for the commercial unavailability of a certain input of 
the subject product, CITA will reject the Commercial Availability 
Request. The requestor may submit a Commercial Availability Request for 
the input in question rather than the downstream product.
    (2) Requests for Products with Prohibited Inputs, Specifications, 
and/or Processes. If, in its initial review of a Commercial 
Availability Request, CITA determines that the subject product requires 
inputs, specifications, and/or processes that are prohibited under the 
laws and regulations of the United States, CITA will reject the 
Commercial Availability Request if there is a substitute product that 
does not require such prohibited inputs, specifications, or processes.
    (b) Request Accepted. If CITA determines that the Commercial 
Availability Request contains the required information, CITA will 
notify interested parties by email that the Commercial Availability 
Request has been accepted and filed and will assign a File Number. CITA 
will post the accepted Commercial Availability Request on its Web site 
for public notice. The email notification and the Web site posting will 
indicate the calendar date deadlines for submitting Responses and 
Rebuttals.

6. Submitting a Response With an Offer To Supply

    Responses must meet the requirements outlined in Section 3 of these 
Procedures. General comments in support of or opposition to a Request 
do not meet the requirements of a Response. A Due Diligence 
Certification must accompany a Response with an Offer to Supply.
    (a) Response with an Offer to Supply Submission. An interested 
entity may file a response objecting to a Commercial Availability 
Request by providing an offer to supply the subject product as 
described in the Commercial Availability Request. An interested entity 
will have 10 U.S. business days after official receipt of a Request to 
submit a Response with an Offer to Supply. If good cause is shown, CITA 
may extend this deadline, but CITA will still meet the statutory 
deadlines.
    (b) Contents of a Response with an Offer to Supply.
    (1) File Number. The Response with an Offer to Supply must 
reference the CITA File Number assigned to the particular Request being 
addressed.
    (2) Quantity. The Response with an Offer to Supply must contain the 
quantity of the subject product that the respondent is capable of 
currently supplying, in standard units of quantity. All measurements 
must be in metric units. If the English count system is used in any 
part, then a conversion to metric units must be provided.
    (3) Production Capability/Demonstration of Ability to Supply. A 
Response with an Offer to Supply must contain information, as described 
below, supporting the respondent's claim that it is able to supply the 
subject product, or a substitutable product, in commercial quantities 
in a timely manner.
    (i) The Response with an Offer to Supply must report the quantity, 
in metric units, that the U.S. supplier produced of the subject 
product, or a substitutable product, in the preceding 24-month period.
    (ii) For products that have experienced cyclical demand or are not 
currently produced, the U.S. supplier must indicate the quantity that 
has been supplied or offered commercially in the past, with an 
explanation of the reasons it is not currently produced or offered.
    (iii) If the subject product involves a style, weight, or other 
variation that is new to the market or new to the U.S. supplier, then 
the supplier must provide detailed information on its current ability 
to make the subject product in commercial quantities in a timely 
manner. Such information could include current production capacity, 
current loom availability, and standard timetables to produce.
    (iv) A U.S. supplier may support its claim to be able to produce 
the subject

[[Page 16006]]

product through provision of a sample meeting exactly the 
specifications as presented in the Commercial Availability Request. 
However, the provision of a sample is not required. Regardless of 
whether a sample is provided, a respondent must demonstrate its ability 
to produce the subject product by providing sufficient relevant 
information regarding its production capability. Such information could 
include past production of similar products and/or descriptions of 
equipment and identification of suppliers necessary to produce the 
subject product. If some operations, such as finishing, will be 
completed by other entities, the name of the facility and contact 
information must be provided.
    (v) The Response with an Offer to Supply must include, as 
applicable, the rationale, supported by measurable criteria, for the 
U.S. supplier's assertion that other products that are supplied by the 
U.S. supplier in commercial quantities in a timely manner are 
substitutable for the subject product(s) for purposes of the intended 
use.
    (vi) In its review of a Response with an Offer to Supply, CITA will 
consider whether the U.S. supplier was responsive to the efforts 
employed by the requestor to obtain the subject product in the course 
of due diligence. In the event that a U.S. supplier was not responsive, 
a U.S. supplier must provide a reasonable explanation in its Response 
with an Offer to Supply as to why it did not respond to earlier 
inquiries by the requestor in the course of due diligence. CITA will 
reject a Response with an Offer to Supply if it does not include such 
explanation.
    (4) Due Diligence. The Response with an Offer to Supply must 
provide a complete description of the due diligence undertaken by the 
U.S. supplier to substantiate the ability to supply the subject 
product. If a U.S. supplier has participated in the requestor's 
undertaking of due diligence, the supplier must provide certain 
information in response to the requestor's inquiries.
    (i) If a U.S. supplier has been responsive to a requestor in the 
undertaking of due diligence, the U.S. supplier must have stated its 
ability to supply or not supply the subject product. If the product can 
be supplied, the response to the inquiry must contain information 
supporting the U.S. supplier's claim to supply the subject product, or 
one substitutable, in commercial quantities in a timely manner.
    (ii) If a U.S. supplier offers to supply the subject product, the 
supplier may support its offer by reporting the quantity, in metric 
units, that it has produced of the subject product, or a substitutable 
product, in the preceding 24-month period. If the U.S. supplier does 
not provide such information, it must explain why the information it 
has provided sufficiently supports its offer to supply.
    (iii) In response to a requestor's inquiry, for products that have 
experienced cyclical demand or are not currently produced, the U.S. 
supplier must provide the requestor the quantity that has been supplied 
or offered commercially in the past, with an explanation of the reasons 
it is not currently produced or offered.
    (iv) If the subject product involves a style, weight, or other 
variation that is new to the market or new to the U.S. supplier, then 
the supplier must provide detailed information on its current ability 
to make the subject product in commercial quantities in a timely 
manner. Such information could include current production capacity, 
current loom availability, and standard timetables to produce the 
subject product.
    (v) A U.S. supplier may support its claim to be able to produce the 
subject product through provision of a sample meeting the 
specifications as presented in an inquiry. However, the provision of a 
sample is not required. Regardless of whether a sample is provided, the 
U.S. supplier must demonstrate its ability to produce the subject 
product by providing sufficient relevant information regarding their 
production capability. Such information could include past production 
of similar products and/or descriptions of equipment and identification 
of suppliers necessary to produce the subject product. If some 
operations, such as finishing, will be completed by other entities, the 
name of the facility and contact information must be provided.
    (vi) A response to a requestor's inquiry must provide, as 
applicable, the basis for the U.S. supplier's rationale that other 
products that are supplied by the U.S. supplier in commercial 
quantities in a timely manner are substitutable for the subject product 
for purposes of the intended use, supported by measurable criteria.
    (vii) Nothing in these procedures shall require any U.S. supplier 
to provide business confidential or other commercially sensitive 
information to a requestor. However, a U.S. supplier must provide the 
requestor a reasonable explanation why such information was not 
provided and why the information it has provided sufficiently supports 
its offer to supply.
    (5) Location of the U.S. supplier. The Response with an Offer to 
Supply must provide the name, address, phone number, and email address 
of a contact person at the facility claimed to be able to supply the 
subject product.

7. Submitting a Rebuttal Comment

    A Rebuttal Comment must meet the requirements outlined in Section 3 
of these procedures. General comments in support of or opposition to a 
Commercial Availability Request or a Response do not meet the 
requirements of a Rebuttal Comment. A Due Diligence Certification must 
accompany a Rebuttal Comment.
    (a) Rebuttal Comment. Any interested entity may submit a Rebuttal 
Comment. An interested entity must submit its Rebuttal Comment not 
later than 4 U.S. business days after the deadline for a Response. If 
good cause is shown, CITA may extend the time limit, but CITA will 
still meet the statutory deadlines.
    (b) Contents of a Rebuttal. The Rebuttal Comment may respond only 
to evidence or arguments raised in a Response and must identify the 
Response, and evidence and/or arguments to which it is responding. The 
Rebuttal Comment must reference the CITA File Number assigned to the 
particular Commercial Availability Request being addressed.

8. Determination Process

    (a) Not later than 30 U.S. business days after official receipt of 
a Commercial Availability Request (or not later than 60 U.S. business 
days where an extension is provided), CITA will notify interested 
entities by email and interested parties and the public by a posting on 
its Web site whether the subject product is available in commercial 
quantities in a timely manner in the United States and whether an 
interested entity has objected to the Commercial Availability Request.
    (b) CITA will notify the public of the determination by publication 
in the Federal Register when the determination results in a change to 
the Commercial Availability List in Appendix 4-B-1 of the Agreement.
    (c) Types of Determinations.
    (1) Approval: An Approval means that CITA has determined that the 
subject product is not available in commercial quantities in a timely 
manner in the United States. If a Commercial Availability Request is 
approved, a notice will be published in the Federal Register adding the 
product to Appendix 4-B-1 of the Agreement.

[[Page 16007]]

    (2) Denial: A denial means that CITA has determined that the 
subject product is available in commercial quantities in a timely 
manner in the United States. If a Commercial Availability Request is 
denied, notice of the denial will be posted on the KOREA FTA Commercial 
Availability Web site.
    (i) Denial of Requests for Downstream Products with Inputs Not 
Commercially Available: If, during the course of its review of a 
Commercial Availability Request, CITA determines that the subject 
product is commercially available but for the commercial unavailability 
of a certain input of the subject product, CITA will deny the 
Commercial Availability Request. The requestor may submit a new 
Commercial Availability Request for the input in question rather than 
the downstream product.
    (ii) Denial of Requests for Products with Prohibited Inputs, 
Specifications, and/or Processes: If, during the course of its review 
of a Commercial Availability Request, CITA determines that the subject 
product requires inputs, specifications, and/or processes that are 
prohibited under the laws and regulations of the United States, CITA 
will deny the Commercial Availability Request if there is a substitute 
product that does not require such prohibited inputs, specifications, 
or processes.
    (3) Insufficient Information to Determine: CITA will extend its 
time period for consideration of the Commercial Availability Request by 
an additional 30 U.S. business days in the event that CITA determines, 
not later than 30 U.S. business days after official receipt of a 
Commercial Availability Request, that it has insufficient information 
to make a determination regarding the ability of a U.S. entity to 
supply the subject products of the Commercial Availability Request 
based on the submitted information. CITA will normally determine that 
it does not have sufficient information to make a determination on a 
Commercial Availability Request when CITA finds there is inconsistency 
in material information contained in the Commercial Availability 
Request, one or more Responses, and/or the Rebuttal Comment(s). CITA 
will notify interested parties via email that it has extended the time 
period for CITA's consideration by 30 U.S. business days. CITA also 
will announce the extension on the Web site.
    (i) Process during Extension Period: During the extended time 
period, CITA will request that interested entities provide additional 
evidence to substantiate the information provided, and may initiate a 
meeting with interested entities. Such evidence may include, inter 
alia, product samples, lab tests, detailed descriptions of product 
facilities, and comparisons of product performance in the intended end-
use of the subject product. Any samples, if requested, of fibers, 
yarns, or fabrics, that are provided to CITA will be made available for 
public inspection at the Office of Textiles and Apparel, Room 3100, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230. All written submissions must follow instructions 
described in Section 3 of these procedures. Samples should be 
identified with a cover sheet that describes the specifications of the 
sample and be identical to the specifications of the Commercial 
Availability Request. If CITA conducts a meeting, it will comply with 
requirements to conduct proceedings in an open manner.
    (ii) CITA also will consider evidence in support of claims that 
U.S. supplier(s) can supply a substantially similar product to that 
specified in the Commercial Availability Request.
    (iii) CITA will make a determination, not later than 60 U.S. 
business days after the official receipt of a Commercial Availability 
Request whether to approve or deny the Request and will follow the 
notification process accordingly.
    (4) Deemed Denial: In the event that CITA does not make a 
determination in response to a Commercial Availability Request to add a 
product to Appendix 4-B-1 of the Agreement within the statutory 
deadlines provided, not later than 30 U.S. business days after the 
official receipt of the Commercial Availability Request or not later 
than 60 U.S. business days after the official receipt of the Commercial 
Availability Request that was determined to lack sufficient information 
pursuant to Section 8 of these procedures, the Request will be 
considered to be denied.

9. Submitting a Request to Remove

    (a) Request to Remove. An interested entity may submit a request to 
remove a product from Appendix 4-B-1. See Section 202(o)(3)(E)(i) of 
the Act.
    (b) Content of a Request to Remove. The Request to Remove must 
provide the substantive information set forth in Section 6(b) (Contents 
of a Response with an Offer to Supply) of these procedures.
    (c) Procedures.
    (1) In considering whether to accept a Request to Remove, CITA will 
follow procedures set forth in Section 5 (Consideration and Acceptance 
of a Request) of these procedures.
    (2) If CITA determines to accept the Request to Remove, CITA and 
any responding interested entity shall follow applicable procedures and 
contents set forth in subsection 6(a) (Response with an Offer to 
Supply) and Section 7 (Submitting a Rebuttal Comment) of these 
procedures.
    (3) As set forth in subsections 8(a) and (b) (Determination 
Process) of these procedures, CITA will determine whether the subject 
product of the Request to Remove is available in commercial quantities 
in a timely manner in the United States not later than 30 U.S. business 
days after the official receipt of the Request to Remove.
    (i) If CITA determines that the product is available in commercial 
quantities in a timely manner in the United States, then that product 
will be removed from the Commercial Availability List in Appendix 4-B-1 
of the Agreement. Removal of the product shall not take effect earlier 
than six months (i.e., 180 calendar days) after publication of notice 
in the Federal Register that CITA has determined that the product is 
available in commercial quantities in a timely manner in the United 
States.
    (ii) If the Commercial Availability List changes as a result of 
CITA's determination for the Request to Remove, CITA will notify 
interested parties by email of its determination and will publish a 
notice of its determination for the Request to Remove in the Federal 
Register.
    (d) For removal, the notice of determination will state that 
textile and apparel articles containing the subject product are not to 
be treated as originating in the United States if the subject product 
is obtained from sources outside the United States, effective for goods 
entered into the United States on or after six months (i.e., 180 
calendar days) after the date of publication of the notice. See Section 
202(o)(3)(E)(iii) of the Act.

Request for Comment on the Interim Procedures

    Comments must be received no later than April 18, 2012 and in the 
following format:
    (1) Comments must be in English.
    (2) Comments must be submitted electronically or in hard copy, with 
original signatures.
    (3) Comments submitted electronically, via email, must be either in 
PDF or Word format, and sent to the following email address 
[email protected]. The email version of the comments must include 
an original electronic signature. Further, the comments must have a 
bolded heading stating ``Public Version'', and

[[Page 16008]]

no business confidential information may be included. The email version 
of the comments will be posted for public review on the KOREA FTA 
Commercial Availability Web site.
    (4) Comments submitted in hard copy must include original 
signatures and must be mailed to the Chairman, Committee for the 
Implementation of Textile Agreements, Room 3100, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230. All comments submitted in hard copy will be made available for 
public inspection at the Office of Textiles and Apparel, Room 3100, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC, between the hours of 8:30 a.m. and 5 p.m. on business 
days. In addition, comments submitted in hard copy will also be posted 
for public review on the KOREA FTA Commercial Availability Web site.
    (5) Any business confidential information upon which an interested 
person wishes to rely may only be included in a hard copy version of 
the comments. Brackets must be placed around all business confidential 
information. Comments containing business confidential information must 
have a bolded heading stating ``Confidential Version.'' Attachments 
considered business confidential information must have a heading 
stating ``Business Confidential Information''. The Committee will 
protect from disclosure any business confidential information that is 
marked ``Business Confidential Information'' to the full extent 
permitted by law.

Estimate of Burden to the Public for Collection of Information and 
Request for Public Comment

    In accordance with Section 203(o) of the Act and as reflected in 
the interim procedures for commercial availability proceedings, CITA 
must collect certain information about the technical specifications of 
a fiber, yarn, or fabric and the production capabilities of U.S. 
textile producers to determine whether certain fibers, yarns, or 
fabrics are available in commercial quantities in a timely manner in 
the United States. This information collection is subject to review and 
approval by the Office of Management and Budget's (``OMB'') OMB under 
the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et seq.
    OMB has approved under Control Number 0625-0270 the interim 
procedures requiring the collection of information under the emergency 
provisions of the PRA. In accordance with the PRA, CITA has estimated 
the ``burden'' (in number of hours) on the public to submit information 
required by CITA under its interim procedures. CITA hereby provides the 
public the opportunity to provide comment on its estimates of the 
burden on the public to submit information to CITA under the U.S.-Korea 
FTA Commercial Availability provision.
    Estimate of Burden as a Result of Information Collection: Based on 
estimates on the number of Requests, Rebuttals and Responses filed per 
year, and the average amount of time required to submit a Request, 
Rebuttal, and Response, CITA estimates that the total annual burden to 
the public is 89 hours per year. A further breakdown of its estimates 
for the number of hours to collect and provide information to CITA for 
Requests, Responses and Rebuttals is provided in detail below.
    Requests: CITA estimates that 10 Requests will be filed per year 
under the U.S.-Korea FTA Commercial Availability provision. Based on 
the following activities required to submit a Request, CITA estimates 
that the total time to collect and present information in a Request is 
8 hours, for a total of 80 hours per year.

------------------------------------------------------------------------
             Activity: Request                      Time  required
------------------------------------------------------------------------
Due Diligence..............................  5 hours.
Summarizing Due Diligence and Preparing      2 hours.
 Request.
Preparing Supporting Documentation.........  1 hour.
Total Time per Request.....................  8 hours.
Times 10 Requests per Year.................  80 hours.
------------------------------------------------------------------------

    Responses: CITA estimates that 3 Responses will be filed per year 
under the U.S.-Korea FTA Commercial Availability provision. Based on 
the following activities required to submit a Response, CITA estimates 
that the total time to collect and present information in a Response is 
2 hours, for a total of 6 hours per year.

------------------------------------------------------------------------
             Activity: Response                     Time  required
------------------------------------------------------------------------
Preparing Response.........................  1.5 hours.
Preparing Supporting Documentation.........  .5 hours.
Total Time per Request.....................  2 hours.
Times 3 Requests per Year..................  6 hours.
------------------------------------------------------------------------

    Rebuttals: CITA estimates that 3 Rebuttals will be filed per year. 
The average amount of time required to prepare each Rebuttal is 
estimated at 1 hour, for a total annual burden for all Rebuttals of 3 
hours.

------------------------------------------------------------------------
             Activity: Rebuttal                     Time  required
------------------------------------------------------------------------
Preparing Rebuttal.........................  1 hour.
Total Time per Request.....................  1 hour.
Times 3 Requests per Year..................  3 hour.
------------------------------------------------------------------------

    Combined, these three information collections represent an annual 
burden of 89 hours. Copies of the above estimate can be obtained by 
calling or writing Jennifer Jessup, Departmental Paperwork Clearance 
Officer, (202) 482-0336, Department of Commerce, Room 6616, 14th & 
Constitution Avenue, NW., Washington, DC 20230 or via e-mail at 
[email protected]
    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.

Kimberly Glas,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 2012-6725 Filed 3-15-12; 4:15 pm]
BILLING CODE 3510-DS-P