CSMS Message: 03-001950

AUGUST 1, 2003

TO: IRECTORS, FIELD OPERATIONS

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

SUBJECT: TBT-03-020 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 APRIL 21, 2003, CITA
RECEIVED A PETITION ALLEGING THAT 100 PERCENT COTTON WOVEN FLANNEL
FABRICS, MADE FROM 21 THROUGH 36 NM SINGLE RUNG-SPUN YARNS OF DIFFERENT
COLORS, CLASSIFIED IN 5208.43.00 OF THE HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES (HTSUS), OF 2X2 TWILL WEAVE CONSTRUCTION, WEIGHING NOT
MORE THAN 200 GRAMS PER SQUARE METER, FOR USE IN APPAREL ARTICLES
EXCLUDING GLOVES, 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 FABRIC SET FORTH IN THE REQUEST
CANNOT BE SUPPLIED BY THE DOMESTIC INDUSTRY IN COMMERCIAL QUANTITIES IN A
A TIMELY MANNER. ON MAY 19, 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 JULY 29, 2003 FEDERAL REGISTER NOTICE (68 FR 44529), CITA
DESIGNATED AS ELIGIBLE FOR PREFERENTIAL TREATMENT UNDER SUBHEADING
9820.11.27 OF THE HTSUS, APPAREL ARTICLES, EXCLUDING GLOVES, THAT ARE
BOTH CUT AND SEWN OR OTHERWISE ASSEMBLED IN ONE OR MORE ELIGIBLE CBTPA
BENEFICIARY COUNTRIES, FROM 100 PERCENT COTTON WOVEN FLANNEL FABRICS,
MADE FROM 21 THROUGH 36 NM SINGLE RUNG-SPUN YARNS OF DIFFERENT COLORS,
CLASSIFIED IN 5208.43.00 OF THE HTSUS, OF 2X2 TWILL WEAVE
CONSTRUCTION, WEIGHING NOT MORE THAN 200 GRAMS PER SQUARE METER, 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 SUBJECT TO THE SPECIAL RULES FOR FINDINGS AND TRIMMING, CERTAIN
INTERLININGS AND DE MINIMIS FIBERS AND YARNS UNDER SECTION 112(D) OF THE
CBTPA. 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 JULY 29, 2003,
PROVIDED THAT APPAREL ARTICLES, EXCLUDING GLOVES, ARE BOTH CUT AND SEWN OR
OR OTHERWISE ASSEMBLED IN ONE OR MORE ELIGIBLE CBTPA BENEFICIARY
COUNTRIES, FROM THE 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.

(RICHARD T. CRICHTON SIGNED FOR)
ELIZABETH G. DURANT