CMP-1 FO:TP:TEO:TO CP

November 19, 2001

TO: Directors, Field Operations

PASS TO: Port Directors; Assistant Port Directors, Trade;

National Import Specialists; Import Specialists;

Inspectors; Entry Officers; Brokers

and Importers

FROM : Executive Director, Trade Programs

Office of Field Operations

SUBJECT: TBT-01-054 New Short Supply Designation

REFERENCE: TBT-00-023-01 Caribbean Basin Trade Partnership

Act (CBTPA) Implementation Instructions

TBT-01-008 African Growth and Opportunity Act (AGOA)

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 a new trade and investment policy for

sub-Saharan Africa under the Africa Growth and Opportunity Act

(AGOA) and the expansion of trade benefits to the countries in

the Caribbean Basin, under the Caribbean Basin Trade and

Partnership Act (CBTPA). 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.

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 May 23, 2001, CITA received a petition alleging that rayon

filament yarn, classified in subheading 5403.31 and 5403.32 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

AGOA and CBTPA and requesting that apparel articles from U.S.

formed-fabric containing such yarns be eligible for preferential

treatment under the AGOA and CBTPA. Based upon information and

advice received and its understanding of the industry, CITA

determined that the fabric set forth in the petition cannot be

supplied by the domestic industry in commercial quantities in a

timely manner. On July 19, 2001, CITA and the Office of the

United States Trade Representative (USTR) 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 AGOA and CBTPA.

In a November 19, 2001, Federal Register Notice, CITA designated

as eligible for preferential treatment under subheadings

9819.11.24 of the tariff (for purposes of the AGOA), and under

subheading 9820.11.27 (for purposes of CBTPA), for apparel

articles that are both cut (or knit to shape) and sewn or

otherwise assembled in one or more eligible beneficiary

sub-Saharan African countries, or one or more eligible

beneficiary CBTPA countries, from fabric or yarn formed in the

United States containing rayon filament yarn not formed in the

United States provided that all other yarns are wholly formed in

the U.S. and all other fabrics are 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

beneficiary sub-Saharan African country or an eligible CBTPA

beneficiary country.

ACTION:

Effective November 19, 2001, claims for short supply under

9819.11.24 or 9820.11.27 of the HTSUS may be accepted, provided

that apparel articles are both cut (or knit to shape) and sewn

or otherwise assembled in one or more beneficiary sub-Saharan

African countries, or one or more eligible CBTPA countries, from

fabric formed in the United States containing rayon filament

yarn 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. In order to qualify articles must

be imported directly into the Customs territory of the United

States from an eligible beneficiary sub-Saharan African country

or an eligible CBTPA beneficiary country.

INFORMATION:

If you have any questions concerning this administrative notice,

please call Susan Thomas at (202) 927-3719, Cherie Parsons at

\(202\) 927-7002 or Robert Abels at (202) 927-1959.

\\s\\ Janet L. Labuda for

Elizabeth G. Durant

cc: Executive Director, Field Operations