Details of Trade Bill Passed by Congress on GSP and ATPA/ATPDEA Extensions, Vietnam PNTR, AGOA Apparel, Haiti Benefits, Chapter 99, Etc. (Part II)

This is Part II of a multi-part series of summaries of P.L. 109-432 and highlights the Act's provisions on Vietnam PNTR, procedures for the imposition of textile quotas on Vietnam due to prohibited subsidies, and a lengthened implementation period for Presidential Proclamations on World Customs Organization (WCO) changes. See future issues of ITT for additional summaries.

PNTR, Textile Subsidies - Regarding Vietnam

P.L. 109-432 has the following provisions with respect to Vietnam:

Authorizes President to provide PNTR to Vietnam. P.L. 109-432 (a) authorizes the President to determine that title IV of the Trade Act of 1974 (19 USC 2431 et seq.) should no longer apply to Vietnam; (b) allows the President, after such a determination, to proclaim the extension of PNTR to products of Vietnam; and (c) provides that on or after the effective date of the extension of PNTR to the products of Vietnam, title IV shall cease to apply to Vietnam.

(Although Vietnam was granted normal trade relations (NTR) status (including column '1' duty rates) effective December 10, 2001, Vietnam has been ineligible for PNTR because it has been subject to Jackson-Vanik requirements (19 USC 2431 et seq.). The U.S. typically terminates a country's Jackson-Vanik status and grants that country PNTR as part of its accession to the World Trade Organization (WTO).)

Procedures for reimposition of textile quotas on Vietnam due to subsidies. P.L. 109-432 allows the U.S. Trade Representative to conduct proceedings to determine whether the Government of Vietnam is providing, on or after the date on which it accedes to the WTO (scheduled for January 11, 2007), a prohibited subsidy to its textile or apparel industry, if such proceedings are begun, and consultations initiated, during the one year period following Vietnam's accession to the WTO (by approximately January 11, 2008).

P.L. 109-432 provides procedures for accepting petitions from interested persons, as well as for the USTR to self-initiate proceedings. In addition, procedures for public participation and consultations are provided.

P.L. 109-432 also states that if the USTR makes an affirmative determination, the USTR shall impose, after arbitration and for no longer than a one year period, quotas on textiles and apparel from Vietnam at 2006 quota levels.

(Trade sources have not expressed a great deal of concern about these procedures, as Vietnam would be expected to terminate any such subsidies before quotas could be imposed.

Readers should also note that the Bush Administration recently established an antidumping monitoring program (with special focus on trousers, shirts, underwear, swimwear, and sweaters) that allows the U.S. to self-initiate AD investigations of specified textiles and apparel from Vietnam - if certain data is provided by the domestic industry, among other things. The International Trade Administration has stated that this program begins on January 11, 2007, the date Vietnam becomes a WTO member, and will expire at the end of the Bush Administration on January 19, 2009. See ITT's Online Archives or 12/04/06 news, 06120415 for BP summary of ITA notice establishing this monitoring program effective January 11, 2007.)

Lengthened Implementation Period for Proclamations on WCO HTS Changes

P.L. 109-432 also contains a provision that amends 19 USC 3006(c) so that modifications to the Harmonized Tariff Schedule proclaimed by the President, based on periodic recommendations by the International Trade Commission to conform the HTS to World Customs Organization recommendations, etc., may not take effect before the 30th (rather than 15th) day after the date on which the text of the proclamation is published in the Federal Register.

(Government sources have previously stated that the upcoming proclamation to implement numerous WCO recommended changes will take effect on the later of February 1, 2007, or 30 days after the proclamation is published in the Federal Register.)

(See ITT's Online Archives or 12/20/06 news, 06122005, for Part I.)

H.R. 6111 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h6111enr.txt.pdf.

BP Correction

Please correct the email version of ITT's 12/20/06 news, 06122005, which incorrectly stated that President Bush signed H.R. 6111 into law on December 21, 2006. (President Bush actually signed H.R. 6111 into law on December 20, 2006.) The Online version of the news has already been corrected.