05-4019. Limitations of Duty- and Quota-Free Imports of Apparel Articles Assembled in Mauritius From Third-Country Fabric

February 25, 2005.

AGENCY:

Committee for the Implementation of Textile Agreements (CITA).

ACTION:

Publishing the New 12-Month sub-Cap on Duty- and Quota-Free Benefits for Mauritius.

EFFECTIVE DATE:

October 1, 2004.

FOR FURTHER INFORMATION CONTACT:

Anna Flaaten, International Trade Specialist, Office of Textiles and Apparel, U.S. Department of Commerce, [phone].

SUPPLEMENTARY INFORMATION:

Authority: Title I, Section 112(b)(3) of the Trade and Development Act of 2000, as amended by Section 3108 of the Trade Act of 2002 and Section 7(b)(2) of the AGOA Acceleration Act of 2004; Presidential Proclamation 7350 of October 4, 2000 (65 FR 59321); Presidential Proclamation 7626 of November 13, 2002 (67 FR 69459); Section 2004(k) of the Miscellaneous Trade and Technical Act of 2004. Section 2004(k) of the Miscellaneous Trade and Technical Act of 2004 provides that, for the one-year period beginning on October 1, 2004, the term “lesser developed beneficiary sub-Saharan African country” includes Mauritius. Further, it establishes a separate limitation for Mauritius within the quantitative limitation applicable to apparel of third-country fabric. Title I of the Trade and Development Act of 2000 (TDA 2000) provides for duty- and quota-free treatment for certain textile and apparel articles imported from designated beneficiary sub-Saharan African countries. Section 112(b)(3) of TDA 2000 provides duty- and quota-free treatment for apparel articles wholly assembled in one or more beneficiary sub-Saharan African countries from fabric wholly formed in one or more beneficiary countries from yarn originating in the U.S. or one or more beneficiary countries. This preferential treatment is also available for apparel articles assembled in one or more lesser-developed beneficiary sub-Saharan African countries, regardless of the country of origin of the fabric used to make such articles. This special rule for lesser-developed countries applies through September 30, 2004. TDA 2000 imposed a quantitative limitation on imports eligible for preferential treatment under these two provisions. The Trade Act of 2002 amended TDA 2000 to extend preferential treatment to apparel assembled in a beneficiary sub-Saharan African country from components knit-to-shape in a beneficiary country from U.S. or beneficiary country yarns and to apparel formed on seamless knitting machines in a beneficiary country from U.S. or beneficiary country yarns, subject to the quantitative limitation. The Trade Act of 2002 also increased the quantitative limitation but provided that this increase would not apply to apparel imported under the special rule for lesser-developed countries. Section 7(b)(2)(B) of the AGOA Acceleration Act extended the expiration of the quantitative limitations. It also further amended the percentages to be used in calculating the quantitative limitations for each twelve-month period, beginning on October 1, 2003. Section 2004(k) of the Miscellaneous Trade and Technical Act of 2004 provides that, for the one-year period beginning on October 1, 2004, the term “lesser developed beneficiary sub-Saharan African country” includes Mauritius. Further, it establishes a separate limitation for Mauritius within the quantitative limitation applicable to apparel imported under the special rule for lesser-developed countries. The AGOA Acceleration Act of 2004 provides that the quantitative limitation for the twelve-month period beginning October 1, 2004 will be an amount not to exceed 5.31025 percent of the aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available. See Section 112(b)(3)(A)(ii)(I) of TDA 2000, as amended by Section 7(b)(2)(B) of the AGOA Acceleration Act. Of this overall amount, apparel imported under the special rule for lesser-developed countries is limited to an amount not to exceed 2.6428 percent of apparel imported into the United States in the preceding 12-month period. See Section 112(b)(3)(B)(ii)(II) of TDA 2000, as amended by Section 7(b)(2)(B) of the AGOA Acceleration Act. The Miscellaneous Trade and Technical Act of 2004 provides that, of the amount established for apparel imported under the special rule for lesser-developed countries, the amount applicable to Mauritius is five percent. See Section 2004(k) of the Miscellaneous Trade and Technical Act of 2004. The United States Trade Representative has implemented the applicable conforming modification to the Harmonized Tariff Schedule. See Notice of Change to U.S. Note 2(d) to Subchapter XIX of Chapter 98 of the Harmonized Tariff Schedule of the United States, 70 Fed. Reg. 9125 (Feb. 24, 2005). For the purpose of this notice, the most recent 12-month period for which data are available is the 12-month period ending July 31, 2004. Presidential Proclamation 7350 directed CITA to publish the aggregate quantity of imports allowed during each 12-month period in the Federal Register. See 65 FR 59321 (October 4, 2000). Presidential Proclamation 7626 modified the aggregate quantity of imports allowed during each 12-month period. See 67 FR 69459 (November 18, 2002). CITA previously published the aggregate quantities of imports allowed for the period October 1, 2004 through September 30, 2005. See 69 FR 56747 (September 22, 2004). For the one-year period, beginning on October 1, 2004, and extending through September 30, 2005, the aggregate quantity of imports eligible for preferential treatment under these provisions is 1,076,876,652 square meters equivalent. Of this amount, 535,938,914 square meters equivalent is available to apparel imported under the special rule for lesser-developed countries. Of the amount available to apparel imported under the special rule for lesser-developed countries, 26,796,946 square meters equivalent is available to such apparel imported from Mauritius. Apparel articles entered in excess of these quantities will be subject to otherwise applicable tariffs. These quantities are calculated using the aggregate square meter equivalents of all apparel articles imported into the United States, derived from the set of Harmonized System lines listed in the Annex to the World Trade Organization Agreement on Textiles and Clothing (ATC), and the conversion factors for units of measure into square meter equivalents used by the United States in implementing the ATC.

D. Michael Hutchinson,

Acting Chairman, Committee for the Implementation of Textile Agreements.