Request for Public Comments on Bilateral Textile Consultations with India on Certain Wool Textile Products

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Request for Public Comments on Bilateral Textile Consultations

with India on Certain Wool Textile Products

January 25, 1995.

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

ACTION: Notice.

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FOR FURTHER INFORMATION CONTACT: Jennifer Tallarico, International

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

Commerce, (202) 482-4212. 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 December 30, 1994, under the terms of the Bilateral Cotton,

Wool, Man-Made Fiber, Silk Blend and Other Vegetable Fiber Textile

Agreement of February 6, 1987 as amended and extended between the

Governments of the United States and India, the United States

Government requested consultations with the Government of India with

respect to wool textile products in Categories 434, 435, and 440.

If no solution is agreed upon in consultations between the two

governments, CITA may later establish a specific limit for the entry

and withdrawal from warehouse for consumption of textile products in

Categories 434, 435 and 440, produced or manufactured in India.

Summary market statements concerning Categories 434, 435, and 440

follow this notice.

Anyone wishing to comment or provide data or information regarding

the treatment of Categories 434, 435, and 440, under the agreement with

India, or to comment on domestic production or availability of products

included in Categories 434, 435, and 440, 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 India.

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 434, 435, and 440. Should such a solution be

reached in consultations with the Government of India, 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

[[Page 5654]] Federal Register notice 59 FR 65531, published on

December 20, 1994).

Rita D. Hayes,

Chairman, Committee for the Implementation of Textile Agreements.

Market Statement--India

Category 434--Men's and Boys' Wool Coats

December 1994

Import Situation and Conclusion

U.S. imports of men's and boys' wool coats other than suit type,

Category 434, from India reached 36,139 dozen for the year ending

September 1994, nearly double the 19,007 dozen imported a year earlier.

During the first nine months of 1994, imports from India were 29,097

dozen, more than double the 14,357 dozen imported during January-

September 1993 and 36 percent above the 21,399 dozen imported during

calendar year 1993. India is the largest supplier of men's and boys'

wool coats other than suit type, Category 434, to the U.S., accounting

for 22 percent of total Category 434 imports during the year ending

September 1994.

The sharp and substantial increase in Category 434 imports from

India is causing a real risk of disruption in the U.S. market for men's

and boys' wool coats other than suit type.

Import Penetration and Market Share

Between 45 and 55 percent of U.S. production of men's and boys'

wool coats other than suit type, Category 434, are produced in the

first half of the year. First half production in 1994 was 13 percent

below the first half 1993 level. Production for the year ending in June

1994 was 8 percent below the year ending June 1993 level. In contrast,

a very large portion, between 80 and 90 percent, of men's and boys'

wool coat other than suit type imports, Category 434, enter the U.S. in

the second half of the year. Category 434 imports during the first half

of 1994 were 28 percent above the January-June 1993 level. Category 434

imports during January-September 1994 were 34 percent above the

January-September 1993 level and imports during the year ending

September 1994 were 26 percent above their previous year level.

The ratio of imports to domestic production increased from 81

percent in 1992 to 85 percent in 1993, and reached 97 percent during

the year ending June 1994. The domestic manufacturers' share of the

market for men's and boys' wool coats other than suit type, Category

434, declined from 55 percent in 1992 to 54 percent in 1993, and fell

to 51 percent during the year ending June 1994.

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

Approximately 74 percent of Category 434 from India during the year

ending September 1994 entered under HTSUSA 6201.91.2011--Men's wool

anoraks, windbreakers and similar articles. These coats entered the

U.S. at landed duty-paid values substantially below U.S. producers'

prices for comparable wool coats.

Market Statement--India

Category 435--Women's and Girls' Wool Coats

December 1994

Import Situation and Conclusion

U.S. imports of women's and girls' wool coats, Category 435, from

India reached 30,695 dozen for the year ending September 1994, over

three times the 9,318 dozen imported a year earlier. During the first

nine months of 1994, imports from the India were 27,843 dozen, over six

times the 4,554 dozen imported during January-September 1993 and almost

four times the 7,406 dozen imported during calendar year 1993. India

became the eleventh largest supplier of women's and girls' wool coats,

Category 435, to the U.S. market, accounting for 2.8 percent of total

Category 435 imports during January-September 1994. India was ranked

twenty- ninth among the major suppliers in calendar year 1993,

accounting for less than one percent of total Category 435 imports.

The sharp and substantial increase in Category 435 imports from

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

women's and girls' wool coats.

Import Penetration and Market Share

U.S. production of women's and girls' wool coats, Category 435,

declined from 981,000 dozen in 1992 to 922,000 dozen in 1993, a decline

of 6 percent. U.S. production continued to decline in 1994, falling to

911,000 dozen produced in the year ending in June 1994, 1 percent below

the 924,000 dozen produced in the same period a year earlier. In

contrast, U.S. imports of Category 435 increased from 834,000 dozen in

1992 to 1,110,000 dozen in 1993, an increase of 33 percent. Category

435 imports continued to increase in 1994 reaching a record level

1,187,000 dozen during the year ending September 1994, 8 percent above

the year ending September 1993 level.

The ratio of imports to domestic production increased from 85

percent in 1992 to 120 percent in 1993, and reached 126 percent during

the year ending June 1994. The domestic manufacturers' share of the

market for women's and girls' wool coats, Category 435, declined from

54 percent in 1992 to 45 percent in 1993, a decline of 9 percentage

points, and fell to 44 percent during the year ending June 1994.

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

Approximately 79 percent of Category 435 imports from India during

the year ending September 1994 entered under HTSUSA 6202.91.2011--

Women's wool anoraks, windbreakers and simmilar articles; and HTSUSA

6204.31.2010--Women's wool suit-type coats, other than silk blend coats

of 30% or more silk. These coats entered the U.S. at landed duty-paid

values substantially below U.S. producers' prices for comparable wool

coats.

Market Statement--India

Category 440--Wool Shirts and Blouses

December 1994

Import Situation and Conclusion

U.S. imports of wool woven shirts and blouses, Category 440, from

India reached 56,908 dozen for the year ending September 1994, eight

times the 7,078 dozen imported a year earlier. During the first nine

months of 1994, imports from India surged to 49,196 dozen, seven times

the 7,075 dozen imported during January-September 1993 and over three

times over the 14,787 dozen imported during calendar year 1993. India

became the largest supplier of Category 440 imports to the U.S.,

accounting for 54 percent of total Category 440 imports during January-

September 1994. A year earlier India was the third largest supplier

accounting for 16 percent of total Category 440 imports.

India's year ending level, at 56,908 dozen, represents 35 percent

of the U.S. wool woven shirt and blouse market for the year ending in

June 1994; the U.S. producers' share of this market is 51 percent.

The sharp and substantial increase in Category 440 imports from

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

woven shirts and blouses.

Import Penetration and Market Share

Between 45 and 55 percent of U.S. production of wool woven shirts

and blouses are produced in the first half of the year. First half

production during 1993 and 1994 remained relatively flat as did full

year production in 1992 and 1993. Production for the year ending in

June 1994 was six percent below the year-ending June 1993 level. In

contrast, a very large portion, between 80 and 90 percent, of wool

woven shirt and blouse imports, Category 440, enter in the second half

of the year. Category 440 imports during the first half of 1994 were

three times the January-June 1993 level; Calendar year 1993 imports

were 63 percent above the 1992 level; and Category 440 imports during

January- [[Page 5655]] September 1994 and during the year-ending

September 1994 were twice their respective previous year levels.

The ratio of imports to domestic production increased from 55

percent in 1992 to 88 percent in 1993, and reached 95 percent during

the year ending June 1994. The domestic manufacturers' share of the

market for wool woven shirts and blouses, Category 440, declined from

65 percent in 1992 to 53 percent in 1993, and fell to 51 percent during

the year ending June 1994.

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

Approximately 79 percent of Category 440 from India during the year

ending September 1994 entered under HTSUSA 6205.10.2010--Men's wool

shirts, other than hand loomed and folklore shirts. These shirts

entered the U.S. at landed duty-paid values substantially below U.S.

producers' prices for comparable wool shirts.

[FR Doc. 95-2291 Filed 1-26-95; 11:19 am]

BILLING CODE 3510-DR-F