Request for Public Comments on Bilateral Textile Consultations with the Government of Pakistan on Certain Cotton and Man-Made Fiber Textile Products

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Request for Public Comments on Bilateral Textile Consultations

with the Government of Pakistan on Certain Cotton and Man-Made Fiber

Textile Products

May 13, 1994.

AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Issuing a directive to the Commissioner of Customs establishing

a limit.

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EFFECTIVE DATE: May 20, 1994.

FOR FURTHER INFORMATION CONTACT: Anne Novak, International Trade

Specialist, Office of Textiles and Apparel, U.S. Department of

Commerce, (202) 482-4212. For information on the quota status of this

limit, refer to the Quota Status Reports posted on the bulletin boards

of each Customs port or call (202) 927-6714. For information on

embargoes and quota re-openings, call (202) 482-3715. For information

on categories on which consultations have been requested, call (202)

482-3740.

SUPPLEMENTARY INFORMATION:

Authority: Executive Order 11651 of March 3, 1972, as amended;

section 204 of the Agricultural Act of 1956, as amended (7 U.S.C.

1854).

On April 29, 1993, under the terms of the Bilateral Cotton, Man-

Made Fiber, Silk Blend and Other Vegetable Fiber Textile Agreement,

effected by exchange of notes dated May 20, 1987 and June 11, 1987, as

amended and extended, between the Governments of the United States and

Pakistan, the United States Government requested consultations with the

Government of Pakistan with respect to cotton and man-made fiber skirts

in Categories 342/642.

The purpose of this notice is to advise the public that, pending

agreement on a mutually satisfactory solution concerning Categories

342/642, the Government of the United States has decided to control

imports during the ninety-day period which began on April 29, 1994 and

extends through July 27, 1994 at a level of 44,933 dozen.

If no solution is agreed upon in consultations between the two

governments, CITA, pursuant to the agreement, may later establish a

specific limit for the entry and withdrawal from warehouse for

consumption of textile products in Categories 342/642, produced or

manufactured in Pakistan and exported during the prorated period

beginning on July 28, 1994 and extending through December 31, 1994, of

not less than 66,266 dozen.

A summary market statement concerning Categories 342/642 follows

this notice.

Anyone wishing to comment or provide data or information regarding

the treatment of Categories 342/642, under the agreement with the

Government of Pakistan, or to comment on domestic production or

availability of products included in Categories 342/642, is invited to

submit 10 copies of such comments or information to Rita D. Hayes,

Chairman, Committee for the Implementation of Textile Agreements, U.S.

Department of Commerce, Washington, DC 20230; ATTN: Helen L. LeGrande.

The comments received will be considered in the context of the

consultations with the Government of Pakistan.

Because the exact timing of the consultations is not yet certain,

comments should be submitted promptly. Comments or information

submitted in response to this notice will be available for public

inspection in the Office of Textiles and Apparel, room H3100, U.S.

Department of Commerce, 14th and Constitution Avenue, NW., Washington,

DC.

Further comments may be invited regarding particular comments or

information received from the public which the Committee for the

Implementation of Textile Agreements considers appropriate for further

consideration.

The solicitation of comments regarding any aspect of the agreement

or the implementation thereof is not a waiver in any respect of the

exemption contained in 5 U.S.C. 553(a)(1) relating to matters which

constitute ``a foreign affairs function of the United States.''

The United States remains committed to finding a solution

concerning Categories 342/642. Should such a solution be reached in

consultations with the Government of Pakistan, further notice will be

published in the Federal Register.

A description of the textile and apparel categories in terms of HTS

numbers is available in the CORRELATION: Textile and Apparel Categories

with the Harmonized Tariff Schedule of the United States (see Federal

Register notice 58 FR 62645, published on November 29, 1993). Also see

59 FR 5756, published on February 8, 1994.

Rita D. Hayes,

Chairman, Committee for the Implementation of Textile Agreements.

Market Statement--Pakistan

Category 342/642--Cotton and Man-Made Fiber Skirts

April 1994

Import Situation and Conclusion

U.S. imports of cotton and manmade fiber skirts, Category 342/642,

from Pakistan reached 139,441 dozen during the year ending February

1994, 66 percent above the 83,893 dozen shipped during the year ending

February 1993. Imports from Pakistan increased from 85,441 dozen in

1992 to 119,637 dozen in 1993, a 40 percent increase. During the first

two months of 1994, imports of Category 342/642 from Pakistan were

39,497 dozen, double the 19,693 dozen imported a year earlier.

The sharp and substantial increase of Category 342/642 imports from

Pakistan is causing a real risk of disruption in the U.S. market for

cotton and manmade fiber skirts.

U.S. Production, Import Penetration and Market Share

U.S. production of cotton and manmade fiber skirts, Category 342/

642, fell from 7,444,000 dozen in 1989 to 7,181,000 dozen in 1992, a

decrease of 4 percent. U.S. production dropped to 6,143,000 dozen in

1993, 15 percent below the 1992 level. In contrast, U.S. imports of

cotton and manmade fiber skirts, Category 342/642, increased from

6,396,000 dozen in 1989 to 6,884,000 dozen in 1992, an 8 percent

increase. U.S. imports jumped to 7,386,000 dozen in 1993, 8 percent

above the 1992 level. In the first two months of 1994, Category 342/642

imports are up 24 percent above the January-February 1993 level.

The ratio of imports to domestic production increased from 86

percent in 1989 to 96 percent in 1992 and reached 120 percent in 1993.

The domestic manufacturers' share of the cotton and manmade fiber skirt

market declined from 54 percent in 1989 to 51 percent in 1992. The

domestic manufacturers' share dropped to 45 percent in 1993, 6

percentage points below their 1992 market share.

Duty-Paid Value and U.S. Producers' Price

Approximately 77 percent of Category 342/642 imports from Pakistan

during the year ending February 1994 entered the U.S. under HTSUSA

6104.22.0030--Women's knit cotton skirts, entered as part of an

ensemble; HTSUSA 6104.52.0010--Women's knit cotton skirts; and HTSUSA

6204.52.2070--Women's woven cotton skirts of other than corduroy and

blue denim. These skirts entered the U.S. at landed duty-paid values

below U.S. producers' prices for comparable skirts.

Committee for the Implementation of Textile Agreements

May 13, 1994.

Commissioner of Customs,

Department of the Treasury, Washington, DC 20229.

Dear Commissioner: This directive amends, but does not cancel,

the directive issued to you on February 1, 1994, by the Chairman,

Committee for the Implementation of Textile Agreements. That

directive concerns imports of certain cotton and man-made fiber

textile products, produced or manufactured in Pakistan and exported

during the twelve-month period which began on January 1, 1994 and

extends through December 31, 1994.

Effective on May 20, 1994, you are directed to establish a limit

for cotton and man-made fiber textile products in Categories 342/642

for the period beginning on April 29, 1994 and extending through

July 27, 1994 at a level of 44,933 dozen\1\.

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\1\The limit has not been adjusted to account for any imports

exported after April 28, 1994.

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Textile products in Categories 342/642 which have been exported

to the United States prior to April 29, 1994 shall not be subject to

the limit established in this directive.

Textile products in Category 342 which have been exported to the

United States prior to April 29, 1994 shall continue to be subject

to the Group limit.

Textile products in Category 642 which have been released from

the custody of the U.S. Customs Service under the provisions of 19

U.S.C. 1448(b) or 1484(a)(1) prior to the effective date of this

directive shall not be denied entry under this directive.

The Committee for the Implementation of Textile Agreements has

determined that this action falls within the foreign affairs

exception of the rulemaking provisions of 5 U.S.C. 553(a)(1).

Sincerely,

Rita D. Hayes,

Chairman, Committee for the Implementation of Textile Agreements.

[FR Doc. 94-12260 Filed 5-18-94; 8:45 am]

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