[Federal Register Volume 77, Number 208 (Friday, October 26, 2012)]
[Notices]
[Pages 65366-65369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26415]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

[Docket :121018560-2560-01; OMB Control :0625-0271 
(Expiration: 10/31/2015)]
RIN 0625-XC003


Interim Procedures for Considering Requests From the Public for 
Textile and Apparel Safeguard Actions on Imports From Colombia

AGENCY: The Committee for the Implementation of Textile Agreements.

ACTION: Notice of Interim Procedures and Request for Comments.

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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--Colombia Trade 
Promotion Agreement (``U.S.-Colombia TPA''). Title III, Subtitle B, 
Section 321 through Section 328 of the United States-Colombia Trade 
Promotion Agreement Implementation Act (``Implementation Act'') [Pub. 
L. 112-42] authorizes the President to consider requests from the 
public for textile and apparel safeguard actions. The President has 
delegated to CITA the authority to determine whether imports of a 
Colombian textile or apparel article are causing serious damage, or 
actual threat thereof, to a domestic industry producing an article that 
is like, or directly competitive with, the imported article. 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.

DATES: As of October 26, 2012, CITA intends to use these interim 
procedures to process requests from the public. CITA solicits public 
written comments on the interim procedures. Comments on the procedures 
must be received no later than November 26, 2012 of this notice, either 
in 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, the electronic copy must 
be submitted to [email protected]. All submitted comments will 
be posted for public review on the Web site dedicated to U.S.-Colombia 
TPA textile and apparel safeguard 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 ``Colombia TPA''/''Safeguards'' 
Additional instructions regarding the submission of comments may be 
found at the end of this notice.

FOR FURTHER INFORMATION CONTACT: Laurie Mease, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

    Legal Authority:  Section 321 through Section 328 of the 
Implementation Act and Proclamation No. 8818, 77 FR 29519 (May 18, 
2012).

Background

    Title III, Subtitle B, Section 321 through Section 328 of the 
Implementation Act implements the textile and apparel safeguard 
provisions,

[[Page 65367]]

provided for in Article 3.1 of the U.S.-Colombia TPA. The safeguard 
mechanism applies when, as a result of the elimination of duties under 
the U.S.-Colombia TPA, a Colombian textile or apparel article 
benefiting from preferential tariff treatment 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, Section 322 of the Implementation Act permits the 
United States to increase duties on the imported article from Colombia 
to a level that does not exceed the lesser of the prevailing U.S. most-
favored-nation (MFN) duty rate for the article or the U.S. MFN duty 
rate in effect on the day before the U.S.-Colombia TPA enters into 
force.
    The import tariff relief is effective beginning on the date that 
CITA determines that a ``Colombian textile or apparel article,'' as 
defined in Section 301(2) of the Implementation 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 that imports of the article 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. Consistent with 
Section 323(a) of the Implementation Act, the maximum period of import 
tariff relief, as set forth in Section 3 of this notice, shall be two 
years. However, consistent with Section 323(b) of the Implementation 
Act, CITA may extend the period of import relief for a period of not 
more than 1 year if CITA determines that the continuation is necessary 
to remedy or prevent serious damage and to facilitate adjustment by the 
domestic industry to import competition, and that there is evidence 
that the domestic industry is making a positive adjustment to import 
competition. Import tariff relief may not be applied to the same 
article at the same time under these procedures if relief previously 
has been granted with respect to that article under: (1) These 
procedures; (2) Subtitle A to Title III of the Implementation Act; or 
(3) Chapter 1 of Title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.).
    Authority to provide import tariff relief with respect to a 
Colombian textile or apparel article will expire five years after the 
date on which the U.S.-Colombia TPA enters into force.
    Under Article 3.1.7 of the U.S.-Colombia TPA, if the United States 
provides relief to a domestic industry under the textile and apparel 
safeguard, it must provide Colombia ``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 textile safeguard 
measure.'' Such concessions shall be limited to textile and apparel 
products, unless the United States and Colombia agree otherwise. Under 
Article 3.1.8 of the U.S.-Colombia TPA, if the United States and 
Colombia are unable to agree on trade liberalizing compensation, 
Colombia 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 Implementation Act extends the 
President's authority to provide compensation under Section 123 of the 
Trade Act of 1974 (19 U.S.C. 2133), as amended, to measures taken 
pursuant to the U.S.-Colombia TPA's textile and apparel safeguard 
provisions.

Procedures for Requesting Textile and Apparel Safeguard Actions

    1. Requirements for Requests. Pursuant to Section 321(a) of the 
Implementation Act and Paragraph (9) of Presidential Proclamation 8818 
of May 18, 2012, an interested party may file a request for a textile 
and apparel safeguard action with CITA. CITA will review requests from 
an interested party sent to the Chairman, Committee for the 
Implementation of Textile Agreements, Room 3100, U.S. Department of 
Commerce, 14th and Constitution Avenue NW., Washington, DC 20230. Ten 
copies of any such request must be provided. As provided in Section 328 
of the Implementation Act, CITA 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, that is identical to the 
business confidential version with the exception that any 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.'' 
Consistent with Section 321(a), the CITA 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 CITA 
will consider the criteria set forth below to determine whether the 
request provides the information necessary for CITA to consider the 
request. If the request does not provide the necessary information, 
CITA will promptly notify the requester of the reasons for this 
determination and the request will not be considered. However, CITA 
will reevaluate any request that is resubmitted with additional 
information.
    Consistent with longstanding CITA practice in considering textile 
safeguard actions, CITA 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 Colombian 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 Colombian 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 Colombia 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.htm) 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 Colombia 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 
partially available, and quarterly data for the same quarter(s) of the 
previous year (e.g., January-March 2011, April-June

[[Page 65368]]

2011 and January-March 2010, April-June 2010).
    The data should demonstrate that imports of a Colombian-origin 
textile or apparel article that is like or directly competitive with, 
the article produced by the domestic industry concerned are increasing 
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 article 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 2011, April-June 2011 and January-
March 2010, April-June 2010).
    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 Colombian 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 Colombia 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 2011, April-June 2011 and January-
March 2010, April-June 2010).
    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 losses, and investment, and any other 
information, relating to the existence of serious damage, or actual 
threat thereof, caused by imports from Colombia 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 2011, April-June 2011 and January-
March 2010, April-June 2010).
    2. Consideration of Requests. Consistent with Section 321(b) of the 
Implementation Act, if CITA determines that the request provides the 
information necessary for it to be considered, CITA will publish 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, that is identical to the 
business confidential version with the exception that any 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 comments 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 also be on the 
Internet (http://otexa.ita.doc.gov) 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, CITA 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 CITA, CITA will make a 
determination within 60 calendar days of the close of the comment 
period. If CITA is unable to make a determination within 60 calendar 
days, it will publish a notice in the Federal Register and include the 
date by which it will make a determination. If CITA makes a negative 
determination, it will publish this determination and the reasons 
therefore in the Federal Register.
    3. Determination and Provision of Relief. CITA shall determine 
whether, as a result of the reduction or elimination of a duty under 
the U.S.-Colombia TPA, Colombia's 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 this 
determination, CITA: (1) Shall examine the effect of increased imports 
on the domestic industry as reflected in such relevant economic factors 
as output, productivity, utilization of capacity, inventories, market 
share, exports, wages, employment, domestic prices, profits and losses, 
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. 
CITA, without delay, will provide written notice of its decision to the 
Government of Colombia and will consult with said party upon its 
request.
    If a determination under this section is affirmative, CITA 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

[[Page 65369]]

the domestic industry to import competition. Such relief may consist of 
an increase in duties to the lower of: (1) The column 1 general rate of 
duty imposed under the HTS on like articles at the time the relief is 
granted; or (2) the column 1 general rate of duty imposed under the HTS 
on like articles on the day before the Agreement enters into force.
    The import tariff relief is effective beginning on the date that 
CITA'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, CITA may extend the period of import relief to the maximum 
three-year period if CITA determines that the continuation is necessary 
to remedy or prevent serious damage or actual threat thereof 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 imposed for an aggregate period greater than 
three years. Import tariff relief may not be applied to the same 
article at the same time under these procedures if relief previously 
has been granted with respect to that article under: (1) These 
procedures; (2) Subtitle A to Title III of the Implementation Act; or 
(3) Chapter 1 of Title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.).
    Authority to provide import tariff relief for a textile or apparel 
article from Colombia 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 five years after the 
date on which the U.S.-Colombia TPA enters into force.
    4. Self Initiation. CITA may, on its own initiative, consider 
whether imports of a textile or apparel article from Colombia 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, CITA will follow procedures consistent 
with those set forth in Section 2 of this notice, including the 
publishing of a notice in the Federal Register seeking public comment 
regarding the action it is considering.
    5. Record Keeping and Business Confidential Information. The Office 
of Textiles and Apparel (OTEXA) will maintain an official record for 
each request on behalf of CITA. 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 CITA memoranda pertaining to the request, memoranda 
of CITA 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 CITA 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 made available for public inspection at 
the Office of Textiles and Apparel, Room 3100, U.S. Department of 
Commerce, 14th and Constitution Avenue NW., Washington, DC, between the 
hours of 8:30 a.m. and 5:00 p.m. on business days.
    Information designated by the submitter as business confidential 
will normally be considered to be business confidential unless it is 
publicly available. CITA 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, that is identical to the business 
confidential version with the exception that any business confidential 
information is summarized or, if necessary, deleted. CITA 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 Colombia.

Request for Comment on the Interim Procedures

    Comments must be received no later than November 26, 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 no business confidential 
information may be included. The email version of the comments will be 
posted for public review on the COLOMBIA FTA Safeguard 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 30003, 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 30003, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC, between the hours of 8:30 a.m. and 5:00 p.m. on 
business days. In addition, comments submitted in hard copy will also 
be posted for public review on the COLOMBIA FTA Safeguard 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.

Kim Glas,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 2012-26415 Filed 10-25-12; 8:45 am]
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