CSMS Message: 03-001398

APRIL 29, 2003

TO: INTERIM DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE COMPLIANCE AND FACILITATION
OFFICE OF FIELD OPERATIONS

SUBJECT: TBT-03-015 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 FOR
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 YARNS 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 FABRICS OR YARNS CANNOT BE SUPPLIED BY THE
DOMESTIC INDUSTRY IN COMMERCIAL QUANTITIES IN A TIMELY MANNER.
ON DECEMBER 12, 2002, CITA RECEIVED A PETITION ALLEGING THAT
WAISTBAND FABRICS DESCRIBED BELOW, FOR USE IN APPAREL ARTICLES,
CANNOT BE SUPPLIED BY THE DOMESTIC INDUSTRY IN COMMERCIAL
QUANTITIES IN A TIMELY MANNER AND REQUESTING THAT APPAREL
ARTICLES FROM SUCH FABRICS BE ELIGIBLE FOR PREFERENTIAL TARIFF
TREATMENT UNDER THE CBTPA.

1. A KNITTED OUTER-FUSIBLE MATERIAL WITH A FOLD LINE THAT IS
KNITTED INTO THE FABRIC. THE FABRIC IS A 45MM WIDE BASE
SUBSTRATE, KNITTED IN NARROW WIDTH, SYNTHETIC FIBER BASED
(MADE OF 49% POLYESTER / 43 % ELASTOMERIC FILAMENT / 8% NYLON
WITH A WEIGHT OF 4.4 OZ., A 110/110 STRETCH, AND A DULL
YARN), STRETCH ELASTOMERIC MATERIAL WITH AN ADHESIVE
(THERMOPLASTIC RESIN) COATING. THE 45MM WIDTH IS DIVIDED
AS FOLLOWS: 34MM SOLID, FOLLOWED BY A 3MM SEAM ALLOWING
IT TO FOLD OVER, FOLLOWED BY 8MM OF SOLID.

2. A KNITTED INNER-FUSIBLE MATERIAL WITH AN ADHESIVE
(THERMOPLASTIC RESIN) COATING THIS IS APPLIED AFTER GOING
THROUGH A FINISHING PROCESS TO REMOVE ALL SHRINKAGE FROM THE
PRODUCT. THE FABRIC IS A 40MM SYNTHETIC FIBER BASED STRETCH
ELASTOMERIC FUSIBLE CONSISTING OF 80% NYLON TAPE 6/20%
ELASTOMERIC FILAMENT WITH A WEIGHT OF 4.4 OZ., A 110/110
STRETCH, AND A DULL YARN.

BASED UPON INFORMATION AND ADVICE RECEIVED, AND ITS
UNDERSTANDING OF THE INDUSTRY, CITA DETERMINED THAT THE FABRICS
SET FORTH IN THE REQUEST CANNOT BE SUPPLIED BY THE DOMESTIC
INDUSTRY IN COMMERCIAL QUANTITIES IN A TIMELY MANNER. ON
FEBRUARY 10, 2003, 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 APRIL 22, 2003, FEDERAL REGISTER NOTICE (68 FR 19788), CITA
DESIGNATED AS ELIGIBLE FOR PREFERENTIAL TREATMENT UNDER
SUBHEADING 9820.11.27 OF THE HARMONIZED TARIFF SCHEDULE OF THE
UNITED STATES (HTSUS), 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 ITEM 1 ABOVE) AND A KNITTED
INNER-FUSIBLE MATERIAL WITH AN ADHESIVE (THERMOPLASTIC RESIN)
COATING (AS DESCRIBED IN ITEM 2 ABOVE) BOTH CLASSIFIED UNDER
5903.90.2500 OF THE HTSUS, 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. IN ORDER
TO QUALIFY, ARTICLES MUST BE IMPORTED DIRECTLY INTO THE CUSTOMS
TERRITORY OF THE UNITED STATES FROM AN ELIGIBLE CBTPA
BENEFICIARY COUNTRY.

ACTION:

CLAIMS FOR SHORT SUPPLY UNDER 9820.11.27 OF THE HTSUS MAY BE
ACCEPTED ON OR AFTER THE FEDERAL REGISTER PUBLICATION DATE OF
APRIL 22, 2003, PROVIDED THAT APPAREL ARTICLES ARE BOTH CUT (OR
KNIT-TO-SHAPE) AND SEWN OR OTHERWISE ASSEMBLED IN ONE OR MORE
ELIGIBLE CBTPA BENEFICIARY COUNTRIES, FROM A FABRIC SET FORTH
ABOVE 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.

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

INFORMATION:

IF YOU HAVE ANY QUESTIONS CONCERNING THIS ADMINISTRATIVE NOTICE,
PLEASE CONTACT 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