[Federal Register Volume 78, Number 102 (Tuesday, May 28, 2013)]
[Notices]
[Pages 31886-31890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12630]


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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

[Docket : 130430427-3427-01; OMB Control : 0625-0274 
(Expiration: 04/30/2016)]
RIN 0625-XC006


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

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

[[Page 31887]]

the Implementation of Textile Agreements (``CITA'') will follow in 
implementing certain provisions of the United States-Panama Trade 
Promotion Agreement (``US-Panama TPA''). Title III, Subtitle B, Section 
321 through Section 328 of the United States-Panama Trade Promotion 
Agreement Implementation Act (``Implementation Act'') [Pub. L. 112-43] 
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 Panamanian 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 procedures CITA will follow in 
considering such requests and solicits public written comments on these 
interim procedures.

DATES: As of May 28, 2013, 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 June 27, 2013 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 30003, 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.-Panama 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 (http://otexa.ita.doc.gov), under ``Panama TPA''/``Safeguards.'' 
Additional instructions regarding the submission of comments may be 
found at the end of this notice.

FOR FURTHER INFORMATION CONTACT: Robert Carrigg, 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. 8894, 77 FR 66507 (November 
5, 2012).

Background

    Title III, Subtitle B, Section 321 through Section 328 of the 
Implementation Act implements the textile and apparel safeguard 
provisions, provided for in Article 3.24 of the US-Panama TPA. The 
safeguard mechanism applies when, as a result of the elimination of a 
customs duty under the US-Panama TPA, a Panamanian 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 U.S. industry producing a like or directly 
competitive article. In these circumstances, Article 3.24 permits the 
United States to increase duties on the imported article from Panama 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 the US-Panama TPA enters into force.
    The import tariff relief is effective beginning on the date that 
CITA determines that a ``Panamanian 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 three 
years. Consistent with Section 323(b) of the Implementation Act, if the 
initial period of import relief is applied for less than three years, 
CITA may extend it up to the three year maximum if CITA 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 there is evidence 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 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 
Panamanian textile or apparel article will expire five years after the 
date on which the US-Panama TPA enters into force.
    Under Article 3.24.6 of the US-Panama TPA, if the United States 
provides relief to a domestic industry under the textile and apparel 
safeguard, it must provide Panama ``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 Panama agree otherwise. If the United States and 
Panama are unable to agree on trade liberalizing compensation, Panama 
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 US-Panama 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 (7) of Presidential Proclamation 8894 
of November 5, 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), CITA will review a request initially to

[[Page 31888]]

determine whether to commence consideration of the request on its 
merits. Within 15 working days of receipt of a request, 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 Panamanian 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 Panamanian 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 Panama 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 Panama 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 2011 and January-
March 2010, April-June 2010).
    The data should demonstrate that imports of a Panamanian-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 Panamanian 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 Panama 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 investment, and any other information, 
relating to the existence of serious damage, or actual threat thereof, 
caused by imports from Panama 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

[[Page 31889]]

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 US-Panama TPA, Panama'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 
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 Panama 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 the domestic industry to import competition. 
Such relief may consist of an increase in duties to the lower of: (1) 
The Normal Trade Relations (NTR)/Most Favored Nation (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 the 
US-Panama TPA 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 Panama 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 US-Panama TPA enters into force.
    4. Self Initiation. CITA may, on its own initiative, consider 
whether imports of a textile or apparel article from Panama 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 30003, 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

[[Page 31890]]

consultations are requested, the statement of the reasons and 
justifications for the determination subsequent to the delivery of the 
statement to Panama.

Request for Comment on the Interim Procedures

    Comments must be received no later than June 27, 2013, 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 Panama TPA 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 Panama TPA 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.

Janet E. Heinzen,
Acting Chairman, Committee for the Implementation of Textile 
Agreements.
[FR Doc. 2013-12630 Filed 5-24-13; 8:45 am]
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