DR-CAFTA: CITA Seeks Comments on "Commercial Availability" Request for Certain Cotton Napped Fabrics (Flannels)
The Committee for the Implementation of Textile Agreements (CITA) has issued an electronic notice requesting written comments by 12:00 a.m. EST on May 16, 2006 regarding a "commercial availability" request it received under the U.S.-Dominican-Republic-Central America Free Trade Agreement (DR-CAFTA) on behalf of B*W*A of New York, NY:
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alleging that certain yarn dyed woven 100% cotton napped fabrics (flannels) of three or four-thread twill classifiable in HTS 5208.43.00 cannot be supplied by the domestic industries or the El Salvador, Nicaragua, or Honduras industries in commercial quantities in a timely manner; and
requesting that CITA consider allowing this fabric to be sourced from outside DR-CAFTA region (currently El Salvador, Honduras, and Nicaragua) without destroying eligibility for DR-CAFTA treatment for certain unspecified apparel products that are produced in El Salvador.
DR-CAFTA is also abbreviated as "CAFTA-DR."
See B*W*A petition for additional details of these flannel fabrics.
CITA Seeks Offers to Supply Fabric & Rebuttal Submissions
CITA states that those parties wishing to submit a response with an offer to supply the subject product or provide a rebuttal submission to a response should follow the procedures detailed in CITA's interim procedures for CAFTA-DR commercial availability requests. (See ITT's Online Archives or 03/06/06 news, 06030610, for BP summary of these interim procedures and a BP note on the Commercial Availability List in Annex 3.5 of the DR-CAFTA.)
The petition filed on behalf of B*W*A specifies that prospective respondents/suppliers must have the ability to deliver 50,000 linear meters of subject fabric to its assembler's facility in El Salvador during the second half of June 2006.
Highlights of CITA's Process for Considering Commercial Availability Requests
Under the interim procedures, CITA will consider requests to allow additional non-originating fabrics, yarns, or fibers to be treated as if they are DR-CAFTA originating goods, if they are not available in commercial quantities in a timely manner in the U.S. or the other DR-CAFTA countries. Those approved for treatment as originating goods are added to the Commercial Availability List in either an unrestricted or a restricted quantity.
These interim procedures also provide that CITA may remove certain of the fabrics, yarns, or fibers from the Commercial Availability List, or subject them to a restricted quantity.
Although fabrics, yarns and fibers on the Commercial Availability List will be treated as if they are originating goods for purposes of the specific rules of origin in Annex 4.1 of DR-CAFTA, regardless of the actual origin of those inputs, all other fabrics, yarns, or fibers of the component that determines the classification of the good must meet the specific rules of origin in Annex 4.1 of DR-CAFTA.
CITA to Make Commercial Availability Determination By June 14, 2006
According to CITA, this commercial availability investigation is projected to be completed by June 14, 2006.
-responses due by 12 a.m. EST on May 16, 2006, rebuttal submissions are due by 12 a.m. EST on May 22, 2006 (original signed hard copies of responses must be sent to CITA via express courier).
CITA Contact - Richard Stetson (202) 482-2582
CITA DR-CAFTA Commercial Availability Request Status Table available at http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/Refnum/6.2006.05.02.Fabric.ST&RforBWA
CITA Commercial Availability Request Notification (dated 05/05/06) available via email by emailing documents@brokerpower.com
B*W*A Commercial Availability Request (dated 05/02/06) available at http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/0eee3ea0bd8b712685257123004fff64/dc4757938b105bd085257163004b17a7/$FILE/6.2006.05.02.Fabric.STR%20for%20BWA.doc
CITA Interim Guidelines for DR-CAFTA Commercial Availability Requests (which CITA states must be followed carefully) (FR Pub 02/23/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-1734.pdf
BP Notes
- Presidential Proclamation 7987 amended the Harmonized Tariff Schedule to implement the DR-CAFTA for El Salvador. Under Proclamation 7987, U.S. Note 20 was added to HTS Chapter 98, Subchapter XXII and lists fabrics, yarns, or fibers not available in commercial quantities in a timely manner among the DR-CAFTA parties that are allowed to be non-originating. The list originally contained 69 types of fabrics, yarns, and fiber and has since been amended to add a 70th entry. A 71st entry provides for any fabric, yarn, or fiber determined by CITA after March 1, 2006 to be commercially unavailable. (See ITT's Online Archives or 03/20/06 news, (Ref:06032010), for Part V of BP's summary of Proclamation 7987, which contains information on U.S. Note 20.)
Updated list of 70 short supply fabrics, yarns, and fibers available at http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/Annex3.25
- Interested parties may subscribe to a CITA email list in order to receive notifications on commercial availability proceedings under DR-CAFTA. Information on this email list is available at http://otexa.ita.doc.gov/OTEXA_CAP_release_v3_022106.pdf