May 6, 2003

CMP-1 FO:TCF:TEO:TO SST

TO: Interim Directors, Field Operations

FROM : Executive Director, Trade Compliance and Facilitation

Office of Field Operations

SUBJECT: TBT-03-013 List of Short Supply Fabrics for Trade Agreements

REF: TBT-01-004-01, TBT-01-046, TBT-01-047, TBT-01-054,

> TBT-02-017, TBT-02-022, TBT-02-029, TBT-03-015,
>
> TBT-03-016

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 and the expansion of trade benefits to the countries
in the Caribbean Basin. The Trade Act of 2002, which was signed into law
of August 6, 2002, provided for the expansion of trade benefits to the
countries in the Andean Region. 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 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.

The fabrics and yarns that were identified as short supply under the
North American Free Trade Agreement (NAFTA) include:

A.  For only men\'s & boys\' nightshirts and pajamas and women\'s &
    girls\' briefs, panties, nightdresses and pajamas (exclusive of
    collar, cuffs, waistband or elastic or lace respectively), wholly of
    circular knit fabric, wholly of cotton yarns exceeding 100 metric
    number per single yarn may be used.

B.  For all apparel articles, classified in Chapter 61 and 62, except
    for goods classified in 6212.10, the following may be used: silk
    fabric, other than knitted or crocheted; silk yarn; linen fabric,
    other than knitted or crocheted; flax yarn; and quilted textile
    products in the piece of heading 5811.00.

\- 2 -

C.  Apparel goods of Chapter 62 provided the outer shell, exclusive of
    collars or cuffs, is wholly of Velveteen fabrics of subheading
    5801.23, containing 85 percent or more by weight of cotton.

D.  Apparel goods of Chapter 62 provided the outer shell, exclusive of
    collars or cuffs, is wholly of Corduroy fabrics of subheading
    5801.22, containing 85 percent or more by weight of cotton and
    containing more than 7.5 wales per centimeter.

E.  Apparel goods of Chapter 62 provided the outer shell, exclusive of
    collars or cuffs, is wholly of fabrics of subheadings 5111.11 or
    5111.19, if hand-woven, with a loom width of less than 76 cm, woven
    in the United Kingdom in accordance with the rules and regulations
    of the Harris Tweed Association, Ltd., and so certified by the
    Association.

F.  Apparel goods of Chapter 62 provided the outer shell, exclusive of
    collars or cuffs, is wholly of fabrics of subheading 5112.30,
    weighing not more than 340 grams per square meter, containing wool,
    not less than 20 percent by weight of fine animal hair and not less
    than 15 percent by weight of man-made staple fibers.

G.  Apparel goods of Chapter 62 provided the outer shell, exclusive of
    collars or cuffs, is wholly of batiste fabrics of subheadings
    5513.11 or 5513.21, of square construction, of single yarns
    exceeding 76 metric count, containing between 60 and 70 warp ends
    and filling picks per square centimeter, of a weight not exceeding
    110 grams per square meter.

H.  Men's or boys\' shirts of cotton (subheading 6205.20) or of man-made
    fibers (subheading 6205.30) may use the following fabrics for the
    outer shell of the shirts, exclusive of collars or cuffs, provided
    the outer shell is wholly of one or more of the following:

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1.  Fabrics of subheadings 5208.21, 5208.22, 5208.29, 5208.31, 5208.32,
    5208.39, 5208.41, 5208.42, 5208.49, 5208.51, 5208.52 or 5208.59, of
    average yarn number exceeding 135 metric;

> \- 3 -

2.  Fabrics of subheadings 5513.11 or 5513.21, not of square
    construction, containing more than 70 warp ends and filling picks
    per square centimeter, of average yarn number exceeding 70 metric;

3.  Fabrics of subheadings 5210.21 or 5210.31, not of square
    construction, containing more than 70 warp ends and filling picks
    per square centimeter, of average yarn number exceeding 70 metric;

4.  Fabrics of subheadings 5208.22 or 5208.32, not of square
    construction, containing more than 75 warp ends and filling picks
    per square centimeter, of average yarn number exceeding 65 metric;

5.  Fabrics of subheadings 5407.81, 5407.82 or 5407.83, weighing less
    than 170 grams per square meter, having a dobby weave created by a
    dobby attachment;

6.  Fabrics of subheadings 5208.42 or 5208.49, not of square
    construction, containing more than 85 warp ends and filling picks
    per square centimeter, of average yarn number exceeding 85 metric;

7.  Fabrics of subheading 5208.51, of square construction, containing
    more than 75 warp ends and filling picks per square centimeter, made
    with single yarns, of average yarn number 95 or greater metric;

8.  Fabrics of subheading 5208.41, of square construction, with a
    gingham pattern, containing more than 85 warp ends and filling picks
    per square centimeter, made with single yarns, of average yarn
    number 95 or greater metric, and characterized by a check effect
    produced by the variation in color of the yarns in the warp and
    filling; or

9.  Fabrics of subheading 5208.41, with the warp colored with vegetable
    dyes, and the filling yarns white or colored with vegetable dyes, of
    average yarn number greater than

> 65 metric.

I.  Quilted textile products in the piece of heading 5811.00.

\- 4 -

Certain apparel articles would be eligible to receive preferential
tariff treatment under the African Growth and Opportunity Act (AGOA),
the Caribbean Basin Trade Partnership Act (CBTPA) or the Andean Trade
Promotion and Drug Eradication Act (ATPDEA) if those articles are made
from short supply fabric or yarn both cut (or knit-to-shape) and sewn or
otherwise assembled in one or more beneficiary countries. The short
supply fabrics or yarns used may not be formed in the United States or
in any AGOA or CBTPA beneficiary country. For ATPDEA the short supply
fabrics or yarns would be eligible for preferential treatment without
regard to the source of the fabrics or yarns. However, if the apparel
articles qualify for preferential treatment under these provisions then,
the remaining textile components for AGOA, CBTPA or ATPDEA incorporated
into a garment may be constructed of fabrics and yarns regardless of
origin.

Future Short Supply: Additional short supply fabrics and yarns
established by Committee for the Implementation of Textile Agreements
(CITA)

All apparel produced with the short supply fabrics listed below are
required that all other fabrics incorporated into the garment (i.e.
linings, pocketing) are wholly formed in the United States from yarns
wholly formed in the United States.

# CBTPA Only

1.  Effective date - September 24, 2001

Apparel articles provided that the fabric of the outer shell is of
crushed panne velour fabric wholly of polyester, of circular knit
construction, classified in subheading 6001.92.00 (statistical reporting
number 6001.92.0030) of the HTSUS.

2.  Effective date - May 28, 2002

Apparel articles 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 incorporated into the
fabric are wholly formed in the United States.

\- 5 -

3.  Effective date - Federal Register publication (April 22, 2003)

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 (a) below) and a knitted
inner-fusible material with an adhesive (thermoplastic resin) coating
(as described in item (2) below) both classified under 5903.90.2500 of
the HTSUS, not formed in the United States.

a)  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.

b)  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.

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4.  Effective date - Federal Register publication (April 28, 2003)

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.

# AGOA Only

1.  Effective date - September 24, 2001

Blouses and nightwear provided that the fabric of the outer shell is of
one of the fabrics referenced below.

\- 6 -

\(a\) Fabrics of subheadings 5208.21, 5208.22, 5208.29, 5208.31,
5208.32, 5208.39, 5208.41, 5208.42, 5208.49, 5208.51, 5208.52 or
5208.59, of average yarn number exceeding 135 metric;

\(b\) Fabrics of subheading 5513.11 or 5513.21, not of square
construction, containing more than 70 warp ends and filling picks per
square centimeter, of average yarn number exceeding 135 metric;

\(c\) Fabrics of subheadings 5210.21 or 5210.31, not of square
construction, containing more than 70 warp ends and filling picks per
square centimeter, of average yarn number exceeding 135 metric;

\(d\) Fabrics of subheadings 5208.22 or 5208.32, not of square
construction, containing more than 75 warp ends and filling picks per
square centimeter, of average yarn number exceeding 135 metric;

\(e\) Fabrics of subheadings 5407.81, 5407.82 or 5407.83, weighing less
than 170 grams per square meter, having a dobby weave created by a dobby
attachment, of average yarn number exceeding 135 metric;

\(f\) Fabrics of subheadings 5208.42 or 5208.49, not of square
construction, containing more than 85 warp ends and filling picks per
square centimeter, of average yarn number exceeding 85 metric, or
exceeding 135 metric if the fabric is of oxford construction (a modified
basket weave with a large filling yarn having no twist woven under and
over two single, twisted warp yarns);

\(g\) Fabrics of subheading 5208.51, of square construction, containing
more than 75 warp ends and filling picks per square centimeter, made
with single yarns, of average yarn number 95 or greater metric;

\(h\) Fabrics of subheading 5208.41, of square construction, with a
gingham pattern, containing more than 85 warp ends and filling picks per
square centimeter, made with single yarns, of average yarn number 135 or
greater metric, and characterized by a check effect produced by the
variation in color of the yarns in the warp and filling;

\(i\) Fabrics of subheading 5208.41, with the warp colored with
vegetable dyes, and the filling yarns white or colored with vegetable
dyes, of average yarn number greater than 65 metric.

\- 7 -

2.  Effective date - August 29, 2002

Apparel articles listed below from a fabric set forth below not formed
in the United States.

[Fabrics named in the request:]{.underline}

\(a\) Fabrics of subheadings 5208.21, 5208.22, 5208.29, 5208.31,
5208.32, 5208.39, 5208.41, 5208.42, 5208.49, 5208.51, 5208.52 or
5208.59, of average yarn number exceeding 135 metric

\(b\) Fabrics of subheadings 5513.11 or 5513.21, not of square
construction, containing more than 70 warp ends and filling picks per
square centimeter, of average yarn number exceeding 135 metric

\(c\) Fabrics of subheadings 5210.21 or 5210.31, not of square
construction, containing more than 70 warp ends and filling picks per
square centimeter, of average yarn number exceeding 135 metric

\(d\) Fabrics of subheadings 5208.22 or 5208.32, not of square
construction, containing more than 75 warp ends and fillings picks per
square centimeter, of average yarn number exceeding 135 metric

\(e\) Fabrics of subheadings 5407.81, 5407.82 or 5407.83, weighing less
than 170 grams per square meter, having a dobby weave created by a dobby
attachment, of average yarn number exceeding 135 metric

\(f\) Fabrics of subheadings 5208.42 or 5208.49, not of square
construction, containing more than 85 warp ends and filling picks per
square centimeter, of average yarn number exceeding 85 metric, or
exceeding 135 metric if the fabric is of oxford construction (a modified
basket weave with a large filling yarn having no twist woven under and
over two single, twisted warp yarns)

\(g\) Fabrics of subheading 5208.51, of square construction, containing
more than 75 warp ends and filling picks per square centimeter, made
with single yarns, of average yarn number 95 or greater metric

\(h\) Fabrics of subheading 5208.41, of square construction, with a
gingham pattern, containing more than 85 warp ends and filling picks per
square centimeter, made with single yarns, of average yarn number 135 or
greater metric, and characterized by a check effect produced by the
variation in color of the yarns in the warp and filling

\- 8 -

\(i\) Fabrics of subheading 5208.41, with the warp colored with
vegetable dyes, and the filling yarns white or colored with vegetable
dyes, of average yarn number greater than 65 metric

[Apparel articles named in the request:]{.underline}

a\) Trousers of subheadings 6203.19, 6203.22, 6204.12, 6204.22, 6204.52,
6204.62, 6211.32, 6211.42, 6217.90

b\) Shorts of subheadings 6203.19, 6203.22, 6204.12, 6204.22, 6204.52,
6204.62, 6211.32, 6211.42, 6217.90

c\) Skirts of subheadings 6204.12, 6204.22, 6204.52

d\) Dresses of subheading 6204.42

e\) Handkerchiefs of subheading 6213.20

f\) Dressing Gowns of subheading 6208.91

g\) Boxer Shorts of subheadings 6207.11, 6207.91, 6208.19, 6208.91), and

h\) Other Apparel of subheadings 6201.92, 6203.22, 6203.42, 6204.12,
6204.22, 6204.62, 6211.32, and 6211.42

## CBTPA and AGOA Only

1.  Effective date - November 19, 2001

Articles from fabric formed in the United States containing rayon
filament yarn not formed in the United States, provided that all other
yarns incorporated into the fabric are wholly formed in the United
States.

2.  Effective date - April 4, 2002

Apparel articles from fabric formed in the United States containing
cuprammonium rayon filament yarn not formed in the United States,
provided that all other yarns incorporated into the fabric are wholly
formed in the United States.

# ATPDEA

No short supply fabrics or yarns have been designated by CITA under the
ATPDEA.

\- 9 -

INFORMATION:

Please pass this memorandum to Port Directors, Assistant Port Directors,
National Import Specialists, Import Specialists, Inspectors, Entry
Officers, Brokers, Importers and Other Interested Parties.

For questions concerning the short supply provisions in any trade
agreement, please contact Ms. Susan Thomas, at (202) 927-3719,

Ms. Cherie Parsons, at (202) 927-7002, or Mr. Robert Abels, at

\(202\) 927-1959.

/s/

Elizabeth G. Durant