Request for Public Comments on Bilateral Textile Consultations With the Government of Pakistan on Certain 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 Man-Made Fiber Textile

Products

July 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: July 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 June 29, 1994, 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 man-made twill and sateen

staple/filament fabric in Category 628.

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

agreement on a mutually satisfactory solution concerning Category 628,

the Government of the United States has decided to control imports

during the ninety-day period which began on June 29, 1994 and extends

through September 26, 1994 at a level of 1,079,634 square meters.

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 Category 628, produced or

manufactured in Pakistan and exported during the prorated period

beginning on September 27, 1994 and extending through December 31,

1994, of not less than 973,572 square meters.

A summary market statement concerning Category 628 follows this

notice.

Anyone wishing to comment or provide data or information regarding

the treatment of Category 628, under the agreement with the Government

of Pakistan, or to comment on domestic production or availability of

products included in Category 628, 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 Category 628. 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 628--Man-Made Fiber Twill/Sateen Staple/Filament Fabric

June 1994

Import Situation and Conclusion

U.S. imports of manmade fiber twill and sateen staple/filament

fabric, Category 628, from Pakistan began in September 1993. During the

eight month period September 1993 through April 1994, U.S. imports from

Pakistan reached 3,191,471 square meters. In just eight months,

Pakistan has become the number one supplier of manmade fiber twill and

sateen staple/filament fabric to the U.S. market, accounting for 37

percent of total Category 628 imports in the year ending April 1994. In

the first four months of 1994, imports from Pakistan reached 1,774,924

square meters, 67 percent of total U.S. imports of Category 628 during

January-April 1994. There were no Category 628 imports from Pakistan in

1990, 1991, and 1992. Category 628 imports from Pakistan totaled

249,523 square meters in 1989.

The sharp and substantial increase of Category 628 imports from

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

manmade fiber twill and sateen staple/filament fabric.

U.S. Production, Import Penetration and Market Share

U.S. production of manmade fiber twill and sateen staple/filament

fabric, Category 628, declined from 98,766,000 square meters in 1989 to

83,441,000 square meters in 1993, a 16 percent decrease. U.S.

production for the year ending March 1994 was 9 percent below the year

ending March 1993 level.

In contrast, U.S. imports of Category 628 from all sources remained

relatively stable during the years 1989-1992, averaging 4,655,000

square meters per year. In 1993, imports surged to 7,259,000 square

meters, 56 percent above the 1989-1992 average. Imports continue to

surge in 1994, reaching 2,660,000 square meters in the first four

months, more than double the January-April 1993 level. Imports reached

8,728,000 square meters in the year-ending April 1994, 83 percent above

the 4,772,000 square meters imported during the year ending April 1993.

The ratio of imports to domestic production remained relatively

stable, averaging 5.1 percent during the years 1989-1992. The ratio of

imports to production increased to 8.7 percent in 1993 and 10.5 percent

in the year ending March 1994, double the 1989-1992 average percent.

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

Approximately 70 percent of Category 628 imports from Pakistan

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

5407.81.0040--Woven satin or twill synthetic filament fabrics, less

than 85% by weight synthetic, mixed primarily with cotton, whether or

not bleached. These fabrics entered the U.S. at landed duty-paid values

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

Committee for the Implementation of Textile Agreements

July 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 July 20, 1994, you are directed to establish a

limit for man-made fiber twill and sateen staple/filament fabric in

Category 628 for the period beginning on June 29, 1994 and extending

through September 26, 1994 at a level of 1,079,634 square meters\1\.

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

exported after June 28, 1994.

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Textile products in Category 628 which have been exported to the

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

limit established in this directive.

Textile products in Category 628 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. 94-17383 Filed 7-18-94; 8:45 am]

BILLING CODE 3510-DR-F