CSMS Message: 03-001399

APRIL 29, 2003

TO: INTERIM DIRECTORS, FIELD OPERATIONS

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

SUBJECT: TBT-03-016 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 18, 2002, CITA RECEIVED A PETITION ALLEGING THAT
CERTAIN FABRICS, CLASSIFIED IN SUBHEADINGS 5210.21 AND 5210.31
OF THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTSUS),
NOT OF SQUARE CONSTRUCTION, CONTAINING MORE THAN 70 WARP ENDS
AND FILLING PICKS PER SQUARE CENTIMETER, OF AVERAGE YARN NUMBER
EXCEEDING 70 METRIC, USED IN THE PRODUCTION OF WOMEN'S AND
GIRL'S BLOUSES, 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.

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 14, 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 28, 2003 FEDERAL REGISTER NOTICE (68 FR 22363), CITA
DESIGNATED AS ELIGIBLE FOR PREFERENTIAL TREATMENT UNDER
SUBHEADING 9820.11.27 OF THE HTSUS, WOMEN'S AND GIRL'S BLOUSES,
THAT ARE BOTH CUT AND SEWN OR OTHERWISE ASSEMBLED IN ONE OR MORE
ELIGIBLE CBTPA BENEFICIARY COUNTRIES, FROM FABRICS, CLASSIFIED
IN SUBHEADINGS 5210.21 AND 5210.31 OF THE HTSUS, NOT OF SQUARE
CONSTRUCTION, CONTAINING MORE THAN 70 WARP ENDS AND FILLING
PICKS PER SQUARE CENTIMETER, OF AVERAGE YARN NUMBER EXCEEDING 70
METRIC, 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 28, 2003, PROVIDED THAT WOMEN'S AND GIRL'S BLOUSES ARE
BOTH CUT 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