Citation: [Federal Register Volume 78, Number 93 (Tuesday, May 14, 2013)]
[Notices]
[Pages 28198-28204]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11455]


COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

[Docket : 130425410-3410-01; OMB Control : 0625-0273
(Expiration: 04/30/2016)]
RIN 0625-XC005


Interim Procedures for Considering Requests Under the Commercial
Availability Provision of the United States-Panama Trade Promotion
Agreement

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

ACTION: Notice of Interim Procedures and Request for Comments.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth the interim procedures the Committee
for the Implementation of Textile Agreements (``CITA'') will follow in
implementing certain provisions of the United States-Panama Trade
Promotion Agreement (``US-Panama TPA''). Section 203(o)(4) of the
United States-Panama Trade Promotion Agreement Implementation Act
(``Implementation Act'') [Public Law 112-43] authorizes the President
to establish procedures to modify the list of fabrics, yarns, or fibers
not available in commercial quantities in a timely manner in either the
United States or Panama as set out in Annex 3.25 of the US-Panama TPA.
The President has delegated to CITA the authority to determine whether
fabrics, yarns, or fibers are not available in commercial quantities in
a timely manner in either the United States or Panama and has directed
CITA to establish procedures that govern the submission of a request
and provide the opportunity for interested entities to submit comments
and supporting evidence for any such determination pursuant to the
Implementation Act. CITA hereby gives notice to interested entities of
the procedures CITA will follow in considering such requests and
solicits public written comments on these interim procedures. CITA will
be using the procedures detailed in this notice as of May 14, 2013.
DATE: Comments on the interim procedures must be received no later than
June 13, 2013 of this notice, either in hard copy or electronically.

ADDRESSES: If submitting comments in hard copy, an original, signed
hard copy must be submitted to the Chairman, Committee for the
Implementation of Textile Agreements, Room 30003, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230. If submitting comments electronically, the electronic copy must
be submitted to
OTEXA_PANAMA@trade.gov. All submitted comments will be
posted for public review on the Web site dedicated to US-Panama TPA
commercial availability proceedings. The Web site is located on the
U.S. Department of Commerce's Office of Textile and Apparel Web site
(
http://otexa.trade.gov), under ``Commercial Availability''/``Panama
TPA.'' Additional instructions regarding the submission of comments may
be found at the end of this notice.

FOR FURTHER INFORMATION CONTACT: Maria Dybczak, Office of Textiles and
Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

Legal Authority: Section 203(o) of the Implementation Act and
Proclamation No. 8894, 77 FR 66507 (November 5, 2012).

Background

The US-Panama TPA provides a list in Annex 3.25 for fabrics, yarns,
and fibers that the United States has determined are not available in
commercial quantities in a timely manner from producers in the United
States or Panama. A textile or apparel good must satisfy the specific
rules of origin in Annex 4.1 of the US-Panama TPA as well as other
requirements of the Agreement. However, a textile and apparel good
containing fabrics, yarns, or fibers that are included on the list in
Annex 3.25 of the US-Panama TPA will be treated as if it is an
originating good for purposes of the US-Panama TPA, regardless of the
actual origin of those inputs in accordance with the specific rules of
origin in Annex 4.1, Notes to Section XI. The Implementation Act
provides that the President will establish procedures governing the
submission of requests under Section 203(o)(4) (``the commercial
availability provision''), and as set forth in the US-Panama TPA, and
may determine whether additional fabrics, yarns, or fibers are
available or are not available in commercial quantities in a timely
manner in the United States or Panama. In addition, Section 203(o)(4)
of the Implementation Act establishes that the President may restrict
the quantity of, or remove a fabric, yarn, or fiber from the list, if
it has been added to the list in an unrestricted quantity or has had a
restriction eliminated, if he determines that the fabric, yarn, or
fiber has become available in commercial quantities in a timely manner.
In Proclamation No. 8894 (77 FR 66507, November 5, 2012), the
President delegated to CITA his authority under the commercial
availability provision to establish procedures for modifying the list
of fabrics, yarns, or fibers not available in commercial quantities in
a timely manner, as set out in Annex 3.25 of the US-Panama TPA.
Pursuant to that delegation, CITA provides below its interim
procedures governing the submission of requests under Section 203(o)(4)
set forth in the Implementation Act. As of May 14, 2013, CITA intends
to use these procedures to process requests for modifying the list of
fabrics, yarns, or fibers not available in commercial quantities. CITA
intends to publish its final procedures after considering any public
comments received pursuant to its request for comments.

Interim Procedures

1. Introduction

The intent of these procedures is to foster trade in U.S. and
Panamanian textile and apparel articles by allowing non-originating
fibers, yarns, or fabrics to be placed on or removed from a list of
items not available in commercial quantities in a timely manner, and in
a manner that is consistent with normal business practice. To this end,
these procedures are intended to facilitate the transmission, on a
timely basis, of requests for commercial availability determinations
and offers to supply the products that are the subject of the requests;
have the market indicate the availability of the supply of products
that are the subject of requests; make available promptly, to
interested entities and parties, information regarding the requests for
products and offers to supply received; ensure wide participation by
interested entities and parties; provide careful scrutiny of
information provided to substantiate order requests and response to
supply offers; and provide timely public dissemination of information
used by CITA in making commercial availability determinations.

2. Definitions

(a) Commercial Availability Request. A Commercial Availability
Request (``Request'') is a request for a commercial availability
determination submitted by an interested entity requesting that CITA
place a good on the Commercial Availability List in

[[Page 28199]]

Annex 3.25 of the US-Panama TPA in a restricted or unrestricted
quantity because that fiber, yarn, or fabric is not available in
commercial quantities in a timely manner from a US-Panama TPA supplier.
(b) Commercial Availability List. The Commercial Availability List
is the list of products (fibers, yarns, and/or fabrics) in Annex 3.25
of the US-Panama TPA that have been determined to be not commercially
available from US-Panama TPA suppliers in commercial quantities in a
timely manner.
(c) Fiber, Yarn, or Fabric. The terms ``fiber, yarn, or fabric''
mean a single product or a range of products, which meet the same
specifications provided in a submission, and which may be only part of
a Harmonized Tariff Schedule of the United States (``HTSUS'')
classification.
(d) Interested Entity. An ``interested entity'' means the
government of Panama, a potential or actual purchaser of a textile or
apparel good, or a potential or actual supplier of a textile or apparel
good. CITA recognizes that a legal or other representative may act on
behalf of an interested entity. See Section 203(o)(4)(B)(i) of the
Implementation Act.
(e) Interested Party. An ``interested party'' means any interested
person that requests to be included on the email notification list for
commercial availability proceedings. Any interested person may become
an interested party by contacting CITA either by sending an email to
OTEXA_PANAMA@trade.gov, or through the Web site dedicated to
commercial availability proceedings under the US-Panama TPA (``Web
site''). The Web site is located on the U.S. Department of Commerce's
Office of Textile and Apparel Web site (
http://otexa.trade.gov),
under ``Commercial Availability''/``Panama TPA.''
(f) Official Receipt. The ``official receipt'' is CITA's email
confirmation that it has received both the electronic version and the
original submission signed by the interested entity delivered via
express courier.
(g) Rebuttal Comment. A ``Rebuttal Comment'' (``Rebuttal'') is a
submission from an interested entity providing information in response
to evidence or arguments raised in a Response. A Rebuttal must be
limited to evidence and arguments provided in a Response.
(h) Request to Remove or Restrict. A ``Request to Remove or
Restrict'' is a submission from an interested entity requesting that
CITA either remove a product or that a quantity restriction be
introduced, made no sooner than six months after a product has been
added to the Commercial Availability List in Annex 3.25 of the US-
Panama TPA in an unrestricted quantity pursuant to Section 203(o)(4) of
the Implementation Act.
(i) Requestor. The ``Requestor'' refers to the interested entity
that files a Commercial Availability Request or a Request to Remove or
Restrict, under the commercial availability provision of the US-Panama
TPA, for CITA's consideration.
(j) Response with an Offer to Supply. A ``Response with an Offer to
Supply'' (``Response'') is a submission from an interested entity to
CITA objecting to the Commercial Availability Request and asserting its
ability to supply the subject product by providing an offer to supply
the subject product described in the Request.
(k) U.S. Business Day. A ``U.S. business day'' is any calendar day
other than a Saturday, Sunday, or a legal holiday observed by the
Government of the United States. See section 203(o)(4)(B)(ii) of the
Implementation Act.
(l) US-Panama TPA Supplier. A ``US-Panama TPA Supplier'' is a
potential or actual supplier of a textile or apparel good of a
producer.

3. Submissions for Participation in a US-Panama TPA Commercial
Availability Proceeding

(a) Filing a Submission. All submissions in a US-Panama TPA
commercial availability proceeding (e.g., Request, Response, Rebuttal,
and Request to Remove or Restrict) must be in English. If any
attachments are in a language other than English, then a complete
translation must be provided. Each submission must be submitted to the
Chairman of CITA, in care of the U.S. Department of Commerce's Office
of Textiles and Apparel (``OTEXA'') in two forms: email and an original
signed submission.
(1) An electronic version of the submission must be either in PDF,
Word, or Word-Perfect format, must contain an adequate public summary
of any business confidential information and the due diligence
certification, and be sent to
OTEXA_PANAMA@trade.gov. The electronic
version of the submission will be posted for public review on the US-
Panama TPA commercial availability Web site. No business confidential
information should be submitted in the electronic version of any
document.
(2) The original signed submission must be received via express
courier to--Chairman, Committee for the Implementation of Textile
Agreements, Room 30003, U.S. Department of Commerce, 14th and
Constitution Ave. NW., Washington, DC 20230. Any business confidential
information upon which an interested entity wishes to rely must be
included in the original signed submission only. Except for the
inclusion of business confidential information and corresponding public
summary, the two versions of a submission should be identical.
(3) Brackets must be placed around all business confidential
information contained in submissions. Documents containing business
confidential information must have a bolded heading stating
``Confidential Version.'' Attachments considered business confidential
information must have a heading stating ``Business Confidential
Information.'' Documents, including those submitted electronically,
provided for public release, must have a bolded heading stating
``Public Version'' and all the business confidential information must
be deleted and substituted with an adequate public summary.
(4) Generally, details such as quantities and lead times for
providing the subject product can be treated as business confidential
information. However, the names of US-Panama TPA suppliers who were
contacted, what was asked generally about the capability to manufacture
the subject product, and the responses thereto should be included in
public versions, which will be made available to the public.
(b) Due Diligence Certification. An interested entity must file a
certification of due diligence as described in subsection (b)(1) with
each submission, both electronic and original signed versions,
containing factual information. If the interested entity has legal
counsel or other representation, the legal counsel or other
representative must also file a certification of due diligence as
described in subsection (b)(2) with each submission, both electronic
and original signed versions, containing factual information. Accurate
representations of material facts submitted to CITA for the US-Panama
TPA commercial availability proceeding are vital to the integrity of
this process and are necessary for CITA's effective administration of
the statutory scheme. Each submission containing factual information
for CITA's consideration must be accompanied by the appropriate
certification regarding the accuracy of the factual information. Any
submission that lacks the applicable certifications will be considered
an incomplete submission that CITA will reject and return to the
submitter. CITA may verify any factual information submitted by
interested entities in a US-Panama TPA commercial availability
proceeding.

[[Page 28200]]

(1) For the person responsible for presentation of the factual
information: I, (name and title), currently employed by (interested
entity), certify that (1) I have read the attached submission, and (2)
the information contained in this submission is, to the best of my
knowledge, complete and accurate.
(2) For the person's legal counsel or other representative: I,
(name), of (law or other firm), counsel or representative to
(interested entity), certify that (1) I have read the attached
submission, and (2) based on the information made available to me by
(person), I have no reason to believe that this submission contains any
material misrepresentation or omission of fact.
(c) Official Receipt. A submission will be considered officially
submitted to CITA only when both the electronic version and the
original signed submission have been received by CITA. For Requests,
CITA will confirm to the requestor that both versions of the Request
were received through an email confirmation. CITA's email confirmation
shall be considered the ``official receipt'' of the Request, and also
begins the statutory 30 U.S. business-day process for CITA
consideration of Requests. CITA will confirm official receipt of any
Response and Rebuttal by posting the submissions on the US-Panama TPA
commercial availability Web site.

4. Submitting a Request for Consideration in a Commercial Availability
Proceeding

(a) Commercial Availability Request. An interested entity may
submit a Request to CITA alleging that a fiber, yarn, or fabric is not
available in commercial quantities in a timely manner from a US-Panama
TPA supplier.
(b) Contents of a Commercial Availability Request.
(1) Detailed Product Information. The Request must provide a
detailed description of the subject product, including, if applicable,
fiber content, construction, yarn size, and finishing processes; and
the classification of the product under the HTSUS. All measurements in
the entire submission must be stated in metric units. If the English
count system is used in any part, then a conversion to metric units
must be provided. The description must include reasonable product
specifications, including, if applicable, fiber content, construction,
yarn size, and finishing processes, as well as timelines and
quantities. Reasonable product specifications include the use of
accepted terminology and standards, such as those used by the American
Society for Testing and Materials (``ASTM'') or the American
Association of Textile Chemists and Colorists (``AATCC'').
If any aspect of the Request is outside the normal course of
business (e.g., tight deadline, higher standards of performance,
requirements to match existing specifications), requestors must provide
US-Panama TPA suppliers with detailed explanations and measurable
criteria for the specification or term at issue. In the course of its
review of the Request, CITA will consider record evidence to determine
whether such specifications and terms are reasonable.
The requestor must clearly describe the unique characteristics of
the subject product that distinguishes it from other similar or
potentially substitutable products. In addition, the requestor must
also explain why such characteristics are required for the purposes of
the end-use of the product and cannot be substituted by another
product. However, all characteristics and specifications must be
supported by measurable criteria.
(2) Quantity. The Request must provide the specific quantity of the
product needed by the requestor, in standard units of quantity for
production of the subject product in the United States or Panama.
(3) Due Diligence. The Request must provide a complete description
of the due diligence undertaken by the requestor to determine the
subject product's availability in the United States or Panama. Due
diligence for the requestor means it has made reasonable efforts to
obtain the subject product from US-Panama TPA suppliers.
(i) Generally: The requestor must provide the names and addresses
of suppliers contacted, who (by name and position) was specifically
contacted, the exact request that was made, the dates of those
contacts, whether a sample of the subject product was provided for
review, and the exact response given for the supplier's inability to
supply the subject product under the same conditions as contained in
the Request submitted to CITA, in addition to any other information the
requestor believes is relevant. The requestor must submit copies or
notes of relevant correspondence, both inquiries and responses, with
these suppliers. Relevant correspondence includes notes of telephone
conversations.
(ii) Identification of US-Panama TPA suppliers: Requestors must
make reasonable efforts to identify US-Panama TPA suppliers in the
United States or Panama. Requestors should identify US-Panama TPA
suppliers through a number of means, including the requestor's
knowledge of the industry, industry directories, and industry
association memberships. However, an email from a requestor with a
general inquiry to all manufacturers in the United States or Panama may
not constitute due diligence. Rather, reasonable efforts must be taken
to identify US-Panama TPA suppliers who are generally known to produce
the class or type of product at issue. Requestors must provide an
explanation in their Request as to why their efforts to identify US-
Panama TPA suppliers were reasonable given the product at issue.
(iii) Use of Third Parties and Business-to-Business Contact: Due
diligence includes substantive and direct contact, indicating a
legitimate intent to do business, between requestors and US-Panama TPA
suppliers. Third party communications are no substitute for meaningful
dialogue between appropriate officials. Once interest is expressed
between requestors and US-Panama TPA suppliers, subsequent
communications should be conducted by appropriate officials of the
requestor and US-Panama TPA supplier based on normal business practice.
A lack of appropriate business-to-business contact may be deemed as
insufficient due diligence.
(iv) Description of the Subject Product: In undertaking due
diligence, requestors must provide a detailed description of the
product to US-Panama TPA suppliers. The description must include
reasonable product specifications, including, if applicable, fiber
content, construction, yarn size, and may include a finishing process
or operation, as well as timelines and quantities. Reasonable product
specifications include the use of accepted terminology and standards,
such as those used by ASTM or AATCC. If any aspect of the Request is
outside the normal course of business (e.g., tight deadline, higher
standards of performance, requirements to match existing
specifications), requestors must provide US-Panama TPA suppliers with
detailed explanations and measurable criteria for the specification or
term at issue that would render such aspects as reasonable for the
product in question. CITA will consider record evidence to determine
whether such specifications and terms are reasonable.
(v) Provision of Samples: In undertaking its due diligence, a
requestor must clearly communicate to US-Panama TPA suppliers its
standard business practice with respect to the provision of samples.
While requestors may request a sample, a US-Panama TPA supplier is not
required to provide

[[Page 28201]]

a sample under CITA's procedures. However, CITA notes that US-Panama
TPA suppliers must meet certain requirements with respect to the
provision of samples and/or information demonstrating their ability to
supply the subject product in commercial quantities in a timely manner.
See Section 6(b)(3) and Section 6(b)(4).
(vi) Substitutability of Products: In undertaking its due
diligence, a requestor must clearly communicate information regarding
the substitutability of the product in question to US-Panama TPA
suppliers. In its inquiries to US-Panama TPA suppliers, the requestor
must clearly describe the unique characteristics of the subject product
that distinguishes it from other similar or potentially substitutable
products. In addition, the requestor must provide US-Panama TPA
suppliers with information why such characteristics are required for
the purposes of the end-use of the product and cannot be substituted by
another product. However, all characteristics and specifications must
be supported by measurable criteria. If, in the course of due
diligence, a US-Panama TPA supplier proposes a substitutable product,
the requestor must provide reasonable justifications to the US-Panama
TPA supplier for rejecting potentially substitutable products.
(vii) Treatment of Business Confidential Information: Specific
details of correspondence with suppliers, such as quantities and lead
times for providing the subject product, can be treated as business
confidential information. However, the names of US-Panama TPA suppliers
who were contacted, what was asked generally about the capability to
manufacture the subject product, and the responses thereto should be
available for public review to ensure proper public participation in
the process. ``Lead times'' refers to supplying the subject product
within normal business time frames for the subject product once an
order is received. Specific delivery dates are not necessary. Required
delivery dates that fall within the time needed to complete the
commercial availability determination process are not acceptable.
(4) Substitutable Products. The Request must provide information on
whether the requestor believes that other products supplied by the US-
Panama TPA supplier are not substitutable in commercial quantities in a
timely manner for the product(s) that is (are) the subject of the
Request for purposes of the intended use. Clearly describe the unique
characteristics of the subject product that distinguishes it from other
similar or potentially substitutable products. Describe why such
characteristics are required for the purposes of the end-use of the
product and cannot be substituted by another product available from a
US-Panama TPA supplier.
(5) Additional Information. The Request may provide any additional
evidence or information believed to be relevant for CITA to determine
whether a fiber, yarn, or fabric is not available in commercial
quantities in a timely manner from a supplier in the United States or
Panama.

5. Consideration and Acceptance of a Request

In considering whether to accept a Request, CITA will consider and
determine whether the Request provides all the required information
specified in Sections 3 and 4 of these Procedures. CITA will determine
whether to accept the Request for consideration and investigation not
later than two U.S. business days after the official receipt of a
Request.
(a) Request Rejected. If CITA determines that the Request does not
contain the required information, the requestor will be notified
promptly by email that the Request has not been accepted and the
reasons for the rejection. A Request may be resubmitted with additional
information for the subject product and CITA will reevaluate it as a
new Request.
(1) Requests for Downstream Products with Inputs Not Commercially
Available. If, in its initial review of a Request, CITA determines that
a subject product would be commercially available but for the
commercial unavailability of a certain input of the subject product,
CITA will reject the Request. The requestor may submit a Request for
the input in question rather than the downstream product.
(2) Requests for Products with Prohibited Inputs, Specifications,
and/or Processes. If, in its initial review of a Request, CITA
determines that the subject product requires inputs, specifications,
and/or processes that are prohibited under the laws and regulations of
the United States, CITA will reject the Request if there is a
substitute product that does not require such prohibited inputs,
specifications, or processes.
(b) Request Accepted. If CITA determines that the Request contains
the required information, CITA will notify interested parties by email
that a Request has been accepted and filed and will assign a File
Number. CITA will post the accepted Request on its Web site for public
notice. The email notification and the Web site posting will indicate
the calendar date deadlines for submitting Responses and Rebuttals.

6. Submitting a Response With an Offer To Supply

Responses must meet the requirements outlined in Section 3 of these
Procedures. General comments in support of or opposition to a Request
do not meet the requirements of a Response. A Due Diligence
Certification must accompany a Response.
(a) Response With an Offer to Supply Submission. An interested
entity (a US-Panama TPA supplier) may file a Response to a Request CITA
accepted advising CITA of its objection to the Request and its ability
to supply the subject product by providing an offer to supply the
subject product as described in the Request. An interested entity will
have 10 U.S. business days after official receipt of a Request to
respond to a Request. If good cause is shown, CITA may extend this
deadline.
(b) Contents of a Response with an Offer to Supply.
(1) File Number. The Response must reference the CITA File Number
assigned to the particular Request being addressed.
(2) Quantity. The Response must supply the quantity of the subject
product that the respondent is capable of currently supplying, in
standard units of quantity. All measurements must be in metric units.
If the English count system is used in any part, then a conversion to
metric units must be provided.
(3) Production Capability/Demonstration of Ability to Supply. A
Response must contain information supporting the claim to supply the
subject product, or one substitutable, in commercial quantities in a
timely manner.
(i) The Response must report the quantity, in metric units, that
the US-Panama TPA supplier produced of the subject product, or a
substitutable product, in the preceding 24-month period.
(ii) For products that have experienced cyclical demand or are not
currently produced, the US-Panama TPA supplier must indicate the
quantity that has been supplied or offered commercially in the past,
with an explanation of the reasons it is not currently produced or
offered.
(iii) If the subject product involves a new style, weight, or other
variation that is new to the market or new to the US-Panama TPA
supplier, then the supplier must provide detailed information on its
current ability to make the subject

[[Page 28202]]

product in commercial quantities in a timely manner. Such information
could include current production capacity, current loom availability,
and standard timetables to produce.
(iv) A US-Panama TPA supplier may support its claim to be able to
produce the subject product through provision of a sample meeting
exactly the specifications as presented in the Request. However, the
provision of a sample is not required. Regardless of whether a sample
is provided, a respondent must demonstrate its ability to produce the
subject product by providing sufficient relevant information regarding
their production capability. Such information could include past
production of similar products and/or descriptions of equipment and
identification of suppliers necessary to produce the subject product.
If some operations, such as finishing, will be completed by other
entities, the name of the facility and contact information must be
provided.
(v) The Response may provide, if relevant, the basis for the US-
Panama TPA supplier's rationale that other products that are supplied
by the US-Panama TPA supplier in commercial quantities in a timely
manner are substitutable for the subject product(s) for purposes of the
intended use, supported by measurable criteria.
(vi) In its review of a Response, CITA will consider whether the
US-Panama TPA supplier was responsive to the efforts employed by the
requestor to obtain the subject product in the course of due diligence.
In the event that a US-Panama TPA supplier was not responsive, a US-
Panama TPA supplier must provide a reasonable explanation in its
Response as to why it did not respond to earlier inquiries by the
requestor in the course of due diligence. CITA will reject a Response
if it does not include such explanation.
(4) Due Diligence. The Response must provide a complete description
of the due diligence undertaken by the US-Panama TPA supplier to
substantiate the ability to supply the subject product. If a US-Panama
TPA supplier has participated in the requestor's undertaking of due
diligence, the supplier must provide certain information in response to
the requestor's inquiries.
(i) If a US-Panama TPA supplier has been responsive to a requestor
in the undertaking of due diligence, the US-Panama TPA supplier must
have stated its ability to supply or not supply the subject product. If
the product can be supplied, the response to the inquiry must contain
information supporting the US-Panama TPA supplier's claim to supply the
subject product, or one substitutable, in commercial quantities in a
timely manner.
(ii) If a US-Panama TPA supplier offers to supply the subject
product, the supplier may support its offer by reporting the quantity,
in metric units, that it has produced of the subject product, or a
substitutable product, in the preceding 24-month period. If the US-
Panama TPA supplier does not provide such information, it must, subject
to section 6(b)(4)(vii), explain why the information it has provided
sufficiently supports its offer to supply.
(iii) In response to a requestor's inquiry, for products that have
experienced cyclical demand or are not currently produced, the US-
Panama TPA supplier must provide the requestor the quantity that has
been supplied or offered commercially in the past, with an explanation
of the reasons it is not currently produced or offered.
(iv) If the subject product involves a new style, weight, or other
variation that is new to the market or new to the US-Panama TPA
supplier, then the supplier must provide detailed information on its
current ability to make the subject product in commercial quantities in
a timely manner. Such information could include current production
capacity, current loom availability, and standard timetables to produce
the subject product.
(v) A US-Panama TPA supplier may support its claim to be able to
produce the subject product through provision of a sample meeting the
specifications as presented in an inquiry. However, the provision of a
sample is not required. Regardless of whether a sample is provided, the
US-Panama TPA supplier must demonstrate its ability to produce the
subject product by providing sufficient relevant information regarding
their production capability. Such information could include past
production of similar products and/or descriptions of equipment and
identification of suppliers necessary to produce the subject product.
If some operations, such as finishing, will be completed by other
entities, the name of the facility and contact information must be
provided.
(vi) A response to a requestor's inquiry must provide, as
applicable, the basis for the US-Panama TPA supplier's rationale that
other products that are supplied by the US-Panama TPA supplier in
commercial quantities in a timely manner are substitutable for the
subject product for purposes of the intended use, supported by
measurable criteria.
(vii) Nothing in these procedures shall require any US-Panama TPA
supplier to provide business confidential or other commercially
sensitive information to a requestor. However, a US-Panama TPA supplier
must provide the requestor a reasonable explanation why such
information was not provided and why the information it has provided
sufficiently supports its offer to supply.
(5) Location of the US-Panama TPA supplier. The Response must
provide the name, address, phone number, and email address of a contact
person at the facility claimed to be able to supply the subject
product.

7. Submitting a Rebuttal Comment

A Rebuttal must meet the requirements outlined in Section 3 of
these procedures. General comments in support of or opposition to a
Request or a Response do not meet the requirements of a Rebuttal. A Due
Diligence Certification must accompany a Rebuttal.
(a) Rebuttal Comment. Any interested entity may submit a Rebuttal
to a Response. An interested entity must submit its Rebuttal not later
than 4 U.S. business-days after the deadline for Response. If good
cause is shown, CITA may extend the time limit.
(b) Contents of a Rebuttal. The Rebuttal Comment may respond only
to evidence or arguments raised in the Response and must identify the
Response, evidence and/or arguments to which it is responding. The
Rebuttal must reference the CITA File Number assigned to the particular
Request being addressed.

8. Determination Process


(a) Not later than 30 U.S. business days after official receipt of
a Request (or not later than 44 U.S. business days where an extension
is provided), CITA will notify interested entities by email and will
post a notice on its Web site whether the subject product is available
in commercial quantities in a timely manner in the United States or
Panama and whether an interested entity has objected to the Request.
(b) CITA will notify the public of the determination by publication
in the Federal Register when the determination results in a change to
the Commercial Availability List in Annex 3.25 of the US-Panama TPA.
(c) Types of Determinations.
(1) Denial. A denial means that CITA has determined that the
subject product is available in commercial quantities in a timely
manner in the United States or Panama. If a Request is denied, notice
of the denial will be posted on the US-

[[Page 28203]]

Panama TPA Commercial Availability Web site.
(i) Denial of Requests for Downstream Products with Inputs Not
Commercially Available: If, during the course of its review of a
Request, CITA determines that the subject product is commercially
available but for the commercial unavailability of a certain input of
the subject product, CITA will deny the Request. The requestor may
submit a Request for the input in question rather than the downstream
product.
(ii) Denial of Requests for Products with Prohibited Inputs,
Specifications, and/or Processes: If, during the course of its review
of a Request, CITA determines that the subject product requires inputs,
specifications, and/or processes that are prohibited under the laws and
regulations of the United States, CITA will deny the Request if there
is a substitute product that does not require such prohibited inputs,
specifications, or processes.
(2) Approval in Unrestricted Quantity. An approval in unrestricted
quantities means that CITA has determined that the subject product is
not available in commercial quantities in a timely manner in the United
States or Panama or that no interested entity has objected to the
Request.
If a Request is approved without restriction, a notice will be
published in the U.S. Federal Register not later than 30 U.S. business
days (or not more than 44 U.S. business days where an extension is
provided) after the official receipt of a Request, adding the subject
product to the Commercial Availability List in Annex 3.25 of the US-
Panama TPA. The effective date of the determination is the date of
publication of the notice in the U.S. Federal Register.
(3) Approval in a Restricted Quantity.
(i) Approval in a Restricted Quantity: An Approval in a Restricted
Quantity means that CITA has determined to add the subject product to
the Commercial Availability List in Annex 3.25 of the US-Panama TPA
with a specified restricted quantity. CITA may approve the Request in a
restricted quantity if CITA determines that a US-Panama TPA supplier(s)
can partially fulfill the Request for the subject product. The
restricted quantity specifies the amount of the subject product that
can be provided by a US-Panama TPA supplier(s).
(A) If a Request is approved in a restricted quantity, a notice
will be published in the Federal Register not later than 30 U.S.
business days (or not more the 44 U.S. business days where an extension
is provided) after official receipt of the Request, adding the subject
product to the Commercial Availability List in Annex 3.25 of the US-
Panama TPA with a specified restricted quantity. The restricted
quantity specifies the amount of the subject product that can be
provided by a US-Panama TPA supplier(s).
(B) The effective date of the determination will be the date of
publication in the U.S. Federal Register.
(ii) Elimination of a restricted quantity: Not later than six
months after adding a product to the Commercial Availability List in
Annex 3.25 of the US-Panama TPA in a restricted quantity, CITA may
eliminate the restriction if it determines that the subject product is
not available in commercial quantities in a timely manner in the United
States or Panama. See Section 203(o)(4)(C)(vi) of the Implementation
Act.
(A) The determination that the subject product is not available in
commercial quantities in a timely manner will be based upon whether the
restricted quantity has been provided by a US-Panama TPA supplier(s).
CITA will solicit comments and information from the US-Panama TPA
supplier(s) and the requestor.
(B) If the US-Panama TPA supplier(s) are still capable of providing
the restricted quantity, the restriction will remain.
(C) If the US-Panama TPA supplier(s) are unable to provide the
restricted quantity, CITA will eliminate the quantity restriction. CITA
will publish a notice in the U.S. Federal Register, and post on the Web
site, that the quantity restriction is eliminated and the subject
product is added to the Commercial Availability List in Annex 3.25 of
the US-Panama TPA in an unrestricted quantity. The effective date of
the determination will be the date of publication in the U.S. Federal
Register.
(4) Insufficient Information to Determine. CITA will extend its
time period for consideration of the Request by an additional 14 U.S.
business days in the event that CITA determines, not later than 30 U.S.
business days after official receipt of a Request, that it has
insufficient information to make a determination regarding the ability
of a US-Panama TPA supplier to supply the subject products of the
Request based on the submitted information. CITA will normally
determine that it does not have sufficient information to make a
determination on a Request when CITA finds there is inconsistency in
material information contained in the Request, one or more Responses,
and/or the Rebuttal(s). CITA will notify interested parties via email
that it has extended the time period for CITA's consideration by 14
U.S. business days. CITA also will announce the extension on the Web
site for US-Panama TPA commercial availability proceedings.
(i) Process during Extension Period: During the extended time
period, CITA will request that interested entities provide additional
evidence to substantiate the information provided, and may initiate a
meeting with interested entities. Such evidence may include, inter
alia, product samples, lab tests, detailed descriptions of product
facilities, and comparisons of product performance in the intended end-
use of the subject product. Any samples, if requested, of fibers,
yarns, or fabrics, that are provided to CITA will be made available for
public inspection at the Office of Textiles and Apparel, Room 30003,
U.S. Department of Commerce, 14th St. and Constitution Ave. NW.,
Washington, DC 20230. All written submissions must follow instructions
described in Section 3 of these procedures. Samples should be
identified with a cover sheet that describes the specifications of the
sample and be identical to the specifications of the Request. If CITA
conducts a meeting, it will comply with requirements to conduct
proceedings in an open manner.
(ii) CITA also will consider evidence in support of claims that US-
Panama TPA supplier(s) can supply a substantially similar product to
that specified in the Request.
(ii) CITA will make a determination, not later than 44 U.S.
business days after the official receipt of a Request whether to
approve, approve with restriction, or deny the Request and will follow
the notification process accordingly.
(5) Deemed Approval. In the event that CITA does not make a
determination in response to a Request to add a product to the
Commercial Availability List in Annex 3.25 of the US-Panama TPA within
the statutory deadlines provided, not later than 45 U.S. business days
after the official receipt of the Request or not later than 60 U.S.
business days after the official receipt of the Request that was
determined to lack sufficient information pursuant to Section 8(c)(4)
of these Procedures, the requested subject product shall be added to
the Commercial Availability List in Annex 3.25 of the US-Panama TPA, in
an unrestricted quantity, in accordance with the requirements of
section 203(o)(4)(D) of the Implementation Act. CITA will notify the
public of the deemed approval by publication in the Federal Register
and posting on OTEXA's Web site.

[[Page 28204]]

9. Submitting a Request To Remove or Restrict

(a) Request to Remove or Restrict. No earlier than six months after
a product has been added to the Commercial Availability List in Annex
3.25 of the US-Panama TPA in an unrestricted quantity pursuant to
Sections 203(o)(2), 203(o)(4)(C)(iii) or (vi), or 203(o)(4)(D) of the
Implementation Act, an interested entity may submit a request to CITA
requesting that a product be either removed from the List in Annex 3.25
or that a quantity restriction be introduced. See Section
203(o)(4)(E)(i) of the Implementation Act.
(b) Content of a Request to Remove or Restrict. The Request to
Remove or Restrict must provide the substantive information set forth
in Section 6(b) (Contents of a Response with an Offer to Supply) of
these procedures.
(c) Procedures.
(1) In considering whether to accept a Request to Remove or
Restrict, CITA will follow procedures set forth in Section 5
(Consideration and Acceptance of a Request) of these procedures.
(2) If CITA determines to accept the Request to Remove or Restrict,
CITA and any responding interested entity shall follow applicable
procedures and contents set forth in subsection 6(a) (Response with an
Offer to Supply) and Section 7 (Submitting a Rebuttal Comment) of these
procedures.
(3) As set forth in subsections 8(a) and (b) (Determination
Process) of these procedures, CITA will determine whether the subject
product of the Request to Remove or Restrict is available in commercial
quantities in a timely manner from a US-Panama TPA supplier not later
than 30 U.S. business days after the official receipt of the Request to
Remove or Restrict.
(i) If CITA determines that the product is available in commercial
quantities in a timely manner in the United States or Panama, then that
product will be removed from the Commercial Availability List in Annex
3.25 of the US-Panama TPA.
(ii) If CITA determines that the product is available in restricted
quantities in a timely manner in the United States or Panama, then a
restricted quantity will be introduced for that product.
(iii) If the Commercial Availability List in Annex 3.25 of the US-
Panama TPA changes as a result of CITA's determination for the Request
to Remove or Restrict, CITA will notify interested parties by email of
its determination and will publish a notice of its determination for
the Request to Remove or Restrict in the U.S. Federal Register.
(A) For removal, the notice of determination will state that
textile and apparel good containing the subject product are not to be
treated as originating in either the United States or Panama if the
subject product is obtained from sources outside the United States or
Panama, effective for goods entered into the United States on or after
six months (i.e., 180 calendar days) after the date of publication of
the notice. See Section 203(o)(4)(E)(iv) of the Implementation Act.
(B) For restriction, the notice of determination will specify the
restricted quantity for the subject product that is to be effective on
or after six months (i.e., 180 calendar days) after the publication
date of the notice. See Section 203(o)(4)(E)(iv) of the Implementation
Act.

Request for Comments on the Interim Procedures

Comments must be received no later than June 13, 2013, and in the
following format:
(1) Comments must be in English.
(2) Comments must be submitted electronically OR in hard copy, with
original signatures.
(3) Comments submitted electronically must be either in PDF, Word,
or Word-Perfect format, and sent to the following email address:
OTEXA_PANAMA@trade.gov. Comments submitted electronically will be
posted for public review on the Web site dedicated to US-Panama TPA
commercial availability proceedings.
(4) Comments submitted in hard copy must be original signed
documents and must be mailed to the Chairman, Committee for the
Implementation of Textile Agreements, Room 30003, U.S. Department of
Commerce, 14th and Constitution Avenue NW., Washington, DC 20230.
Comments submitted in hard copy will be made available for public
inspection at the Office of Textiles and Apparel, Room 30003, U.S.
Department of Commerce, 14th and Constitution Avenue NW., Washington,
DC, between the hours of 8:30 a.m. and 5:00 p.m. on business days. In
addition, comments submitted in hard copy will also be posted for
public review on the Web site dedicated to US-Panama TPA commercial
availability proceedings.

Kim Glas,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 2013-11455 Filed 5-13-13; 8:45 am]
BILLING CODE 3510-DS-P