CSMS Message: 02-000700

MAY 30, 2002

TO: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS

SUBJECT: TBT-02-022 SHORT SUPPLY DESIGNATION UNDER THE
CARIBBEAN BASIN TRADE PARTNERSHIP ACT (CBTPA)

REF: TBT-00-023-01: CBTPA 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 THE EXPANSION OF TRADE BENEFITS TO
THE COUNTRIES IN THE CARIBBEAN BASIN UNDER THE CBTPA. THIS TRADE
PROGRAM ALLOWS 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 OR
YARN NOT FORMED IN THE UNITED STATES OR IN ONE OR MORE SUCH
BENEFICIARY COUNTRIES 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 AGREEMENTS (CITA) TO DETERMINE
WHETHER PARTICULAR YARNS OR FABRICS CANNOT BE SUPPLIED BY THE
DOMESTIC INDUSTRY IN COMMERCIAL QUANTITIES IN A TIMELY MANNER.
ON JANUARY 4, 2002, CITA RECEIVED A PETITION ALLEGING THAT YARN
OF COMBED CASHMERE, COMBED CASHMERE BLENDS, OR COMBED CAMEL
HAIR, CLASSIFIED IN SUBHEADING 5108.20.60 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 CBTPA AND
REQUESTING THAT APPAREL ARTICLES FROM U.S. FORMED FABRIC
CONTAINING SUCH YARNS BE ELIGIBLE FOR PREFERENTIAL TARIFF
TREATMENT UNDER THE CBPTA.

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 TIMELY MANNER. ON MARCH 5, 2002, CITA AND THE
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE 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 CBTPA.

IN A MAY 28, 2002, FEDERAL REGISTER NOTICE (67 FR 36858), CITA
DESIGNATED AS ELIGIBLE FOR PREFERENTIAL TREATMENT UNDER
SUBHEADING 9820.11.27 OF THE HTSUS, APPAREL ARTICLES THAT ARE
BOTH CUT AND SEWN IN ONE OR MORE ELIGIBLE CBTPA BENEFICIARY
COUNTRIES, FROM FABRIC WOVEN IN THE UNITED STATES CONTAINING
YARN OF COMBED CASHMERE, COMBED CASHMERE BLENDS, OR COMBED CAMEL
HAIR, CLASSIFIED IN SUBHEADING 5108.20.60 OF THE HTSUS, NOT
FORMED IN THE UNITED STATES, PROVIDED THAT ALL OTHER YARNS ARE
WHOLLY FORMED IN THE UNITED STATES AND THAT 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 CBTPA BENEFICIARY COUNTRY.

ACTION:

EFFECTIVE MAY 28, 2002, CLAIMS FOR SHORT SUPPLY UNDER 9820.11.27
OF THE HTSUS MAY BE ACCEPTED, PROVIDED THAT APPAREL ARTICLES ARE
BOTH CUT AND SEWN IN ONE OR MORE ELIGIBLE CBTPA BENEFICIARY
COUNTRIES, FROM FABRIC WOVEN IN THE UNITED STATES CONTAINING
YARN OF COMBED CASHMERE, COMBED CASHMERE BLENDS, OR COMBED CAMEL
HAIR, CLASSIFIED IN SUBHEADING 5108.20.60 OF THE HTSUS, 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/
ELIZABETH G. DURANT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS