Regulations to Prevent Circumvention of Textiles and Textile Products Agreements

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Regulations to Prevent Circumvention of Textiles and Textile

Products Agreements

July 27, 1999.

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

ACTION: Issuing a directive to the Commissioner of Customs directing

Customs to issue regulations regarding the denial of entry of shipments

from companies determined to be illegally transshipping.

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FOR FURTHER INFORMATION CONTACT: Janet Heinzen, International Trade

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

Commerce, (202) 482-4212.

SUPPLEMENTARY INFORMATION:

Authority: Section 204 of the Agricultural Act of 1956, as

amended (7 U.S.C. 1854); Executive Order 11651 of March 3, 1972, as

amended; Executive Order 12475 of May 9, 1984, as amended.

Under Title 19, Section 12.130 of the Code of Federal Regulations,

U.S. Customs is required to make a country of origin determination of

textiles and textile products. Such determination may be made on the

basis of information provided by the importer or, at the discretion of

U.S. Customs, on the best information available. In order to develop

such information, U.S. Customs often has conducted on-site verification

of production in foreign countries.

The Chairman of CITA has authorized U.S. Customs to deny entry of

certain textiles and textile products subject to Section 204 of the

Agricultural Act of 1956 if U.S. Customs on-site verification of

production is not permitted (see Federal Register notice 61 FR 33793,

published on June 28, 1996). Based on information obtained, including

through on-site verifications, U.S. Customs reports that some companies

have been found to be illegally transshipping, have been closed, or

have been unable to produce records to verify production. In order to

secure compliance with U.S. law, including Section 204 and U.S. customs

law, to carry out textile and textile product agreements, and to avoid

circumvention of textile agreements, CITA directs the Commissioner of

Customs as soon as possible to issue regulations permitting U.S.

Customs to deny entry to textiles and textile products where the

declared manufacturer has been named in a CITA directive as a company

found to be illegally transshipping, closed or unable to produce

records to verify production.

In future directives, the Chairman of CITA may direct U.S. Customs

to deny entry to textiles and textile products allegedly manufactured

in companies found to be illegally transshipping, closed, or unable to

produce records to verify production. CITA will publish such

directives, including the names of such companies, in the Federal

Register.

Troy H. Cribb

Chairman, Committee for the implementation of Textile Agreements

Committee for the Implementation of Textile Agreements

July 27, 1999.

Commissioner of Customs

Department of Treasury, Washington, DC 20229

Dear Commissioner: Under Title 19, Section 12.130 of the Code of

Federal Regulations, U.S. Customs is required to make a country of

origin determination of textiles and textile products. Such

determination may be made on the basis of information provided by

the importer or, at the discretion of U.S. Customs, on the best

information available. In order to develop such information, U.S.

Customs has often conducted on-site verification of production in

foreign countries.

The Chairman of the Committee for the Implementation of Textile

Agreements (CITA) has authorized the Commissioner of Customs to deny

entry of certain textiles and textile products subject to Section

204 of the Agricultural Act of 1956 if U.S. Customs on-site

verification of production is not permitted (see 61 FR 33793, dated

June 24, 1996). Based on information obtained, including through on-

site verifications, U.S. Customs reports that some companies have

been found to be illegally transshipping, have been closed, or have

been unable to produce records to verify production. In order to

secure compliance with U.S. law, including Section 204 and U.S.

customs law, to carry out textile and textile product agreements,

and to avoid circumvention of textile agreements, CITA directs the

Commissioner of Customs, as soon as possible, to issue regulations

permitting U.S. Customs to deny entry to textiles and textile

products where the declared manufacturer has been named in a CITA

directive as a company found to be illegally transshipping, closed

or unable to produce records to verify production.

In future directives, the Chairman of CITA may direct U.S.

Customs to deny entry to textiles and textile products allegedly

manufactured in companies found to be illegally transshipping,

closed, or unable to produce records to verify production. CITA will

publish such directives, including the names of such companies, in

the Federal Register.

CITA has determined that these actions fall within the foreign

affairs exception of the rulemaking provisions of 5 U.S.C.

553(a)(1).

Sincerely,

Troy H. Cribb

Chairman, Committee for the Implementation of Textile Agreements

[FR Doc. 99-19610 Filed 7-29-99; 8:45 am]

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