[Federal Register: December 29, 2003 (Volume 68, Number 248)]
[Notices]
[Page 74944-74945]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de03-32]
=======================================================================
-----------------------------------------------------------------------
COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS
Announcement of Request for Bilateral Textile Consultations with
the Government of the People's Republic of China and the Establishment
of an Import Limit for Knit Fabric, Category 222, Produced or
Manufactured in the People's Republic of China
December 23, 2003.
AGENCY: Committee for the Implementation of Textile Agreements
(Committee).
ACTION: Notice
-----------------------------------------------------------------------
EFFECTIVE DATE: December 24, 2003.
FOR FURTHER INFORMATION CONTACT: Roy Unger, International Trade
Specialist, Office of Textiles and Apparel, U.S. Department of
Commerce, (202) 482-4212. For information on the quota status of these
limits, refer to the Quota Status Reports posted on the bulletin boards
of each Customs port, call (202) 927-5850, or refer to the Bureau of
Customs and Border Protection website at http://www.customs.gov. For
information on embargoes and quota re-openings, refer to the Office of
Textiles and Apparel website at http://otexa.ita.doc.gov.
SUPPLEMENTARY INFORMATION:
Authority: Section 204 of the Agricultural Act of 1956, as
amended (7 U.S.C. 1854); Executive Order 11651 of March 3, 1972, as
amended.
On December 24, 2003, as provided for under paragraph 242 of the
Report of the Working Party on the Accession of China to the World
Trade Organization (Accession Agreement), the United States requested
consultations with the Government of the People's Republic of China
with respect to imports of Chinese origin knit fabric in Category 222.
In accordance with paragraph 242 of the Accession Agreement and the
procedures set forth by the Committee on May 21, 2003 (68 FR 27787), as
clarified on August 18, 2003 (68 FR 49440), the United States is
establishing a twelve-month limit on knit fabric in Category 222 from
China, beginning on December 24, 2003, and extending through December
23, 2004 at a level of 9,664,477 kilograms.
Paragraph 2.B. of the U.S.-China Textile Visa Arrangement provides
that if additional categories become subject to import quotas, those
categories shall be automatically included in the coverage of the Visa
Arrangement. This Visa Arrangement was notified to the World Trade
Organization Textiles Monitoring Body as an agreed administrative
arrangement on May 21, 2002. Consequently, the United States will
require that shipments of Chinese origin knit fabric in Category 222 be
accompanied by an export visa and Electronic Visa Information System
(ELVIS) transmission issued by the Government of the People's Republic
of China. In order to provide a period for adjustment, the United
States will allow shipments of goods in this category that are not
accompanied by an export visa and an ELVIS transmission to enter the
United States if exported prior to January 23, 2004. However, shipments
exported from China on or after January 23, 2004 must be accompanied by
an export visa and ELVIS transmission issued by the Government of the
People's Republic of China, and shipments without an export visa and
ELVIS transmission will be denied entry.
Paragraph 242 of the Accession Agreement allows World Trade
Organization Members that believe imports of Chinese origin textile and
apparel products are, due to market disruption, threatening to impede
the orderly development of trade in these products to request
consultations with the People's Republic of China with a view to easing
or avoiding such market disruption. Upon receipt of the request, the
People's Republic of China has agreed to hold its shipments to a level
no greater than 7.5 percent (6 percent for wool product categories)
above the amount entered during the first 12 months of the most recent
14 months preceding the request for consultations. The Member
requesting consultations may implement such a limit. Consistent with
paragraph 242, consultations with the People's Republic of China will
be held within 30 days of receipt of the request for consultations, and
every effort will be made to reach agreement on a mutually satisfactory
solution within 90 days of receipt of the request for consultations. If
agreement on a different limit is reached, the Committee will issue a
Federal Register Notice containing a directive to the Bureau of Customs
and Border Protection to implement the negotiated limit.
On July 24, 2003, the Committee received a request from the
American
[[Page 74945]]
Yarn Spinners Association, American Manufacturing Trade Action
Coalition, American Textile Manufacturers Institute and the National
Textile Association alleging that imports from the People's Republic of
China of knit fabric (Category 222) are, due to market disruption,
threatening to impede the orderly development of trade in this product,
and requesting that an Accession Agreement textile and apparel
safeguard action be taken on imports of knit fabric. The Committee
determined that this request provided the information necessary for the
Committee to consider the request, and, on August 18, 2003, the
Committee solicited public comments on the request (68 FR 49440). This
public comment period ended on September 17, 2003. The Committee
determined that imports of Chinese origin knit fabric are, due to
market disruption and the threat of market disruption, threatening to
impede the orderly development of trade in knit fabric, and that
imports of knit fabric from China play a significant role in the
existence and threat of market disruption. A summary statement of the
reasons and justifications for the U.S. request for consultations
concerning imports of Category 222 from the People's Republic of China
follows this notice.
A description of the textile and apparel categories in terms of
Harmonized Tariff Schedule of the United States numbers is available in
the CORRELATION: Textile and Apparel Categories with the Harmonized
Tariff Schedule of the United States (see Federal Register notice 68 FR
1599, published on January 13, 2003). Also see 67 FR 63891, published
on October 16, 2002.
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
Committee for the Implementation of Textile Agreements
December 23, 2003.
Commissioner,
Bureau of Customs and Border Protection, Washington, DC 20229.
Dear Commissioner: Pursuant to Section 204 of the Agricultural
Act of 1956, as amended (7 U.S.C. 1854); and Executive Order 11651
of March 3, 1972, as amended, you are directed to prohibit,
effective on December 24, 2003, entry into the United States for
consumption and withdrawal from warehouse for consumption of knit
fabric textile products in Category 222, produced or manufactured in
the People's Republic of China and exported during the twelve-month
period beginning on December 24, 2003, and extending through
December 23, 2004, in excess of 9,664,477 kilograms.
Paragraph 2.B. of the U.S.-China Textile Visa Arrangement
provides that if additional categories become subject to import
quotas, those categories shall be automatically included in the
coverage of the Visa Arrangement. This Visa Arrangement was notified
to the World Trade Organization Textiles Monitoring Body as an
agreed administrative arrangement on May 21, 2002. Consequently, the
United States will require that shipments of Chinese origin knit
fabric in Category 222 be accompanied by an export visa and
Electronic Visa Information System (ELVIS) transmission issued by
the Government of the People's Republic of China. In order to
provide a period for adjustment, the United States will allow
shipments of goods in this category that are not accompanied by an
export visa and an ELVIS transmission to enter the United States if
exported prior to January 23, 2004. However, shipments exported from
China on or after January 23, 2004 must be accompanied by an export
visa and ELVIS transmission issued by the Government of the People's
Republic of China, and shipments without an export visa and ELVIS
transmission will be denied entry.
Products which have been exported to the United States prior to
December 24, 2003, shall not be subject to the limit established in
this directive.
In carrying out the above directions, the Commissioner should
construe entry into the United States for consumption to include
entry for consumption into the Commonwealth of Puerto Rico.
The Committee for the Implementation of Textile Agreements has
determined that this action falls within the foreign affairs
exception of the rulemaking provisions of 5 U.S.C. 553(a)(1).
Sincerely,
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
SUMMARY OF THE REASONS AND JUSTIFICATIONS FOR U.S. REQUEST FOR
CONSULTATIONS WITH CHINA PURSUANT TO PARAGRAPH 242 OF THE REPORT OF THE
WORKING PARTY ON THE ACCESSION OF CHINA TO THE WORLD TRADE ORGANIZATION
Knit Fabric
Category 222
The United States believes that imports of Chinese origin knit
fabric are, due to market disruption, threatening to impede the
orderly development of trade in knit fabric, and that imports of
knit fabric from China play a significant role in the existence of
market disruption. Further, the United States believes that imports
of Chinese origin knit fabric are, due to the threat of market
disruption, threatening to impede the orderly development of trade
in knit fabric, and that imports of knit fabric from China play a
significant role in the threat of market disruption. Either finding
supports a request for consultations with the Government of the
People's Republic of China under Paragraph 242 of the Report of the
Working Party on the Accession of China to the World Trade
Organization (``Paragraph 242''). The following facts, and others
contained in the full Statement, support these beliefs:
U.S. Imports from China Are Increasing Rapidly in Absolute
Terms. U.S. imports of knit fabric from China increased from 42,505
kilograms in 2000 to over 7 million kilograms in 2002 (an increase
of 16,396 percent) and to 9.1 million kilograms in the year ending
in October 2003 (an increase of 21,307 percent from the 2000 level).
U.S. Imports from China Are Increasing Rapidly Relative to Other
Imports. In 2001, China was the 30th largest exporter of knit fabric
to the United States. Just one year later, China was the 5th largest
exporter. In the year ending October 2003, China surpassed Mexico,
becoming the 4th largest exporter of knit fabric to the United
States.
Chinese Average Unit Values Are Well Below Values from Other
Countries. In the year ending October 2003, the average unit value
of knit fabric imports from China was US$5.26 per kilogram, compared
to a ``rest of world'' average unit import value of US$6.46 per
kilogram.
U.S. Imports from China Are Likely to Increase Further in the
Near Future. China is the world's largest textile machinery
importing country. Between January and May 2003, China imported $1.8
billion worth of textile machinery, an increase of 71 percent
compared to the same period last year. According to Chinese Customs
data, China imported over US$243 million of knitting machines in the
first five months of 2003 - an increase of over 105.4 percent over
the same period in 2002.
The U.S. Knit Fabric Industry Is Vulnerable to Any Increase in
Imports. U.S. production of knit fabric fell 27 percent from 2000 to
2002 (from 657,040 kilograms to 479,960 kilograms), while the share
of the market held by U.S. producers fell by 9.6 percentage points
(from 86.9 percent to 77.3 percent) during this period.
[FR Doc. 03-32031 Filed 12-24-03; 8:45 am]