Designations Under the Textile and Apparel Commercial Availability Provisions of the United States-Caribbean Basin Trade Partnership Act (CBTPA)

AGENCY:

The Committee for the Implementation of Textile Agreements (CITA).

ACTION:

Determination.

SUMMARY:

The Committee for the Implementation of Textile Agreements (Committee) has determined that certain knitted outer fusible material with a fold line that is knitted into the fabric (as described in the attached Annex I, item (1 and a knitted inner fusible material with an adhesive (thermoplastic resin) coating (as described in the attached Annex I, item (2, both classified under item 5903.90.2500 of the Harmonized Tariff Schedule of the United States (HTSUS), for use in apparel articles, cannot be supplied by the domestic industry in commercial quantities in a timely manner. The Committee hereby designates apparel articles from these fabrics as eligible for quota-free and duty-free treatment under the textile and apparel commercial availability provisions of the CBTPA and eligible under HTSUS subheadings 9819.11.24 or 9820.11.27, to enter free of quota and duties, provided that all other fabrics are wholly in the United States from yarns wholly formed in the United States.

FOR FURTHER INFORMATION CONTACT:

Richard P. Stetson, Office of Textiles and Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

Authority: Section 211 of the Caribbean Basin Trade Partnership Act (CBTPA), amending Section 213(b)(2)(A)(v)(II) of the Caribbean Basin Economic Recovery Act (CBERA); Presidential Proclamation 7351 of October 2, 2000; Executive Order No. 13191 of January 17, 2001.

BACKGROUND:

The commercial availability provision of the CBTPA provides for duty-free and quota-free treatment for apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more beneficiary CBTPA country from fabric or yarn that is not formed in the United States or a beneficiary CBTPA country if it has been determined that such yarns or fabrics cannot be supplied by the domestic industry in commercial quantities in a timely manner and certain procedural requirements have been met. In Presidential Proclamation 7351, the President proclaimed that this treatment would apply to apparel articles from fabrics or yarn designated by the appropriate U.S. government authority in the Federal Register. In Executive Order 13191, the President authorized the Committee to determine whether yarns or fabrics cannot be supplied by the domestic industry in commercial quantities in a timely manner.

On December 12, 2002 the Chairman of the Committee received a petition from Levi Strauss and Co. alleging that the waistband fabrics described in Annex I, for use in apparel articles, cannot be supplied by the domestic industry in commercial quantities in a timely manner and requesting quota- and duty-free treatment under the CBTPA for apparel articles that are both cut and sewn in one or more CBTPA beneficiary countries from such fabrics. On December 19, 2002, the Committee requested public comments on the petition (67 FR 244). On January 5, 2003, the Committee and the U.S. Trade Representative (USTR) sought the advice of the Industry Sector Advisory Committee for Wholesaling and Retailing and the Industry Sector Advisory Committee for Textiles and Apparel. On January 5, 2003, the Committee and USTR offered to hold consultations with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. On January 23, 2003, the U.S. International Trade Commission provided advice on the petition. Based on the information and advice received and its understanding of the industry, the Committee determined that the fabric set forth in the petition cannot be supplied by the domestic industry in commercial quantities in a timely manner. On February 10, 2003, the Committee and USTR submitted a report to the Congressional Committees that set forth the action proposed, the reasons for such action, and advice obtained. A period of 60 calendar days since this report was submitted has expired.

The Committee hereby designates as eligible for preferential treatment under HTSUS subheading 9820.11.27, apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more eligible CBTPA beneficiary countries, from a knitted outer-fusible material with a fold line that is knitted into the fabric (as described in the attached Annex I, item#1) and a knitted inner-fusible material with an adhesive (thermoplastic resin) coating (as described in the attached Annex I, item#2), both classified under HTSUS subheading 5903.90.2500, not formed in the United States, provided that all other fabrics are wholly formed in the United States from yarns wholly formed in the United States, and that such articles are imported directly into the customs territory of the United States from an eligible CBTPA beneficiary country. An “eligible CBTPA beneficiary country” means a country which the President has designated as a CBTPA beneficiary country under section 213(b)(5)(B) of the CBERA (19 U.S.C. 2703(b)(5)(B)) and which has been the subject of a finding, published in the Federal Register, that the country has satisfied the requirements of section 213(b)(4)(A)(ii) of the CBERA (19 U.S.C. 2703(b)(4)(A)(ii)) and resulting in the enumeration of such country in U.S. note 1 to subchapter XX of Chapter 98 of the HTSUS.