CSMS Message: 02-000508

APRIL 12, 2002

TO: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS

SUBJECT: TBT-02-017 SHORT SUPPLY DESIGNATION UNDER THE CARIBBEAN
BASIN TRADE PARTNERSHIP ACT (CBTPA) AND THE AFRICAN GROWTH
AND OPPORTUNITY ACT (AGOA)

REF: TBT-00-023-01: CBTPA IMPLEMENTATION INSTRUCTIONS
TBT-01-008: AGOA IMPLEMENTATION INSTRUCTIONS
TBT-01-004-01: DESCRIPTIVE INFORMATION REGARDING SHORT
SUPPLY FABRICS

BACKGROUND:

THE TRADE AND DEVELOPMENT ACT OF 2000, WHICH WAS SIGNED INTO LAW ON
MAY 18, 2000, AUTHORIZED A NEW TRADE AND INVESTMENT POLICY FOR SUB-
SAHARAN AFRICA UNDER THE AGOA AND THE EXPANSIONAOF TRADE BENEFITS
TO THE COUNTRIES IN THE CARRIBBEAN BASIN, UNDER THE CBTPA.
THESE TRADE PROGRAMS ALLOW FOR PREFERENTIAL TARIFF TREATMENT WHEN
APPAREL ARTICLES ARE BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR
OTHERWISE ASSEMBLED IN ONE OR MORE BENEFICIARY COUNTRIES FROM FABRICS
FABRICS NOT FORMED IN THE UNITED STATES OR IN ONE OR MORE SUCH
BENEFICIARYCOUNTRIES AND NOT WIDELY AVAILABLE IN COMMERCIAL
QUANTITIES, I.E.SHORT SUPPLY.

IN EXECUTIVE ORDER 13191, THE PRESIDENT AUTHORIZED THE COMMITTEE FOR
THE IMPLEMENTATION OF TEXTILE AGREMENTS (CITA) TO DETERMINE WHETHER
PARTICULAR YARNS OR FABRICS CANNOT BE SUPPLIED BY THE DOMESTIC
INDUSTRY IN COMMERCIAL QUANTITIES IN A TIMELY MANNER. ON NOVEMBER 20,
2001, CITA RECEIVED A PETITION ALLEGING THAT CUPRAMMONIUM RAYON
FILAMENT YARN, CLASSIFIED IN SUBHEADING 5403.39 OF THE HARMONIZED
TARIFF SCHEDULE OF THE UNITED STATES (HTSUS) FOR USE IN FABRIC FOR
APPAREL, CANNOT BE SUPPLIED BY THE DOMESTIC INDUSTRY IN COMMERCIAL
QUANTITIES IN A TIMELY MANNER UNDER THE AGOA AND CBTPA.

BASED UPON INFORMATION AND ADVICE RECEIVED, AND ITS UNDERSTANDING OF
THE INDUSTRY, CITA DETERMINED THAT THE YARN SET FORTH IN THE PETITION
CANNOT BE SUPPLIED BY THE DOMESTIC INDUSTRY IN COMMERCIAL QUANTITIES IN A
IN A TIMELY MANNER. ON JANUARY 18, 2002, CITA AND THE OFFICE OF THE
UNITED STATES TRADE REPRESENTATIVE (USTR) SUBMITTED A REPORT TO THE
CONGRESSIONAL COMMITTEES THAT SET FORTH THE ACTION PROPOSED, THE REASONS
FOR SUCH ACTIONS, AND ADVICE OBTAINED. A PERIOD OF 60 CALENDAR DAYS
SINCE THIS REPORT WAS SUBMITTED HAS EXPIRED, AS REQUIRED BY THE AGOA AND
CBTPA.

IN AN APRIL 10, 2002, FEDERAL REGISTER NOTICE (69 FR 17412), CITA
DESIGNATED AS ELIGIBLE FOR PREFERENTIAL TREATMENT UNDER SUBHEADINGS
9819.11.24 OF THE HTSUS (FOR PURPOSES OF THE AGOA), AND UNDER SUBHEADING
9820.11.27 OF THE HTSUS (FOR PURPOSES OF THE CBTPA), APPAREL ARTICLES
THAT ARE BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR OTHERWISE ASSEMBLED IN
ONE OR MORE ELIGIBLE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES, OR ONE
OR MORE ELIGIBLE BENEFICIARY CBTPA COUNTRIES, FROM FABRIC FORMED IN THE
UNITED STATES CONTAINING CUPRAMMONIUM RAYON FILAMENT YARN NOT FORMED IN
THE UNITED STATES, PROVIDED THAT ALL OTHER YARNS ARE WHOLLY FORMED IN
THE U.S. AND ALL OTHER FABRICS ARE WHOLLY FORMED IN THE UNITED STATES
FROM YARNS WHOLLY FORMED IN THE UNITED STATES. IN ORDER TO QUALIFY,
ARTICLES MUST BE IMPORTED DIRECTLY INTO THE CUSTOMS TERRITORY OF THE
UNITED STATES FROM AN ELIGIBLE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY
OR AN ELIGIBLE BENEFICIARY CBTPA COUNTRY.

ACTION:

EFFECTIVE APRIL 4, 2002, CLAIMS FOR SHORT SUPPLY UNDER 9819.11.24 OR
9820.11.27 OF THE HTSUS MAY BE ACCEPTED, PROVIDED THAT APPAREL ARTICLES
ARE BOTH CUT (OR KNIT TO SHAPE) AND SEWN OR OTHERWISE ASSEMBLED IN ONE
OR MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES, OR ONE OR MORE
ELIGIBLE CBTPA COUNTRIES, FROM FABRIC FORMED IN THE UNITED STATES
CONTAINING CUPRAMMONIUM RAYON FILAMENT YARN NOT FORMED IN THE UNITED
STATES, PROVIDED THAT ALL OTHER YARNS ARE WHOLLY FORMED IN THE UNITED
STATES AND ALL OTHER FABRICS ARE WHOLLY FORMED IN THE UNITED STATES FROM
YARNS WHOLLY FORMED IN THE UNITED STATES.

PLEASE PASS THIS MEMORANDUM TO PORT DIRECTORS, ASSISTANT PORT DIRECTORS,
NATIONAL IMPORT SPECIALISTS, IMPORT SPECIALISTS, INSPECTORS, ENTRY
OFFICERS, BROKERS AND IMPORTERS.

INFORMATION:

IF YOU HAVE ANY QUESTIONS CONCERNING THIS ADMINISTRATIVE NOTICE, PLEASE
CALL MS. SUSAN THOMAS, AT (202) 927-3719, MS. CHERIE PARSONS, AT (202)
927-7002 OR MR. ROBERT ABELS, AT (202) 927-1959.

/SIGNED JANET L. LABUDA/
FOR ELIZABETH G. DURANT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS