Citation: [Federal Register Volume 77, Number 53 (Monday, March 19, 2012)]
[Notices]
[Pages 16001-16008]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-6725]



COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS


Interim Procedures for Considering Requests Under the Commercial
Availability Provision of the United States-Korea Free Trade Agreement
and Estimate of Burden for Collection of Information

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

ACTION: Notice of interim procedures and request for comments; estimate
of information collection burden.

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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-Korea Free Trade
Agreement Implementation Act (the

[[Page 16002]]

``Act''). Section 202(o)(3)(F) of the Act provides that the President
shall establish procedures to govern the submission of requests to
modify the list of fibers, yarns, or fabrics not available in
commercial quantities in a timely manner in the United States as set
out in Annex 4-B-1 of the United States-Korea Free Trade Agreement (the
``Agreement''). The President has delegated to CITA the authority to
determine whether fibers, yarns, or fabrics are not available in
commercial quantities in a timely manner in the United States 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 in any such determination pursuant to
the Act and the Agreement. CITA hereby gives notice to interested
entities of the procedure CITA will follow in considering such requests
and solicits public written comments on these interim procedures.
In accordance with the Paperwork Reduction Act, this notice further
provides an estimate of the burden to the public to collect and submit
information as required by Section 202(o)(3)(F) of the Act and CITA's
interim procedures. CITA hereby gives notice of the estimated burden to
the public.

DATES: As of March 19, 2012, CITA intends to use these interim
procedures to process requests from the public. CITA solicits public
written comments on the interim procedures. Comments must be received
no later than April 18, 2012 in either hard copy or electronically.

ADDRESSES: If submitting comments in hard copy, an original, signed
document must be submitted to the Chairman, Committee for the
Implementation of Textile Agreements, Room 3100, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230. If submitting comments electronically, an electronic copy, via
electronic mail (``email'') must be submitted to
OTEXA.KOREA@trade.gov.
All submitted comments will be posted for public review on the Web site
dedicated to U.S.-Korea FTA commercial availability proceedings. The
Web site is located on the U.S. Department of Commerce's Office of
Textile and Apparel Web site (
otexa.trade.gov), under
``Commercial Availability''/``Korea FTA.'' Additional instructions
regarding the submission of comments may be found at the end of this
notice.

FOR FURTHER INFORMATION CONTACT: Maria D'Andrea, Office of Textiles and
Apparel, U.S. Department of Commerce, (202) 482-1550.

SUPPLEMENTARY INFORMATION: Legal Authority: Section 202(o) of the Act;
Proclamation No. 8783 (77 FR 14265, March 9, 2012); and the United
States-Korea Free Trade Agreement.

Background

The Agreement provides for a list in Appendix 4-B-1 for fibers,
yarns, and fabrics that the United States has determined are not
available in commercial quantities in a timely manner from suppliers in
the United States. A textile or apparel good imported into the United
States containing fibers, yarns, or fabrics that are included on the
list in Appendix 4-B-1 of the Agreement will be treated as if it is an
originating good for purposes of the specific rules of origin in Annex
4-A of the Agreement, regardless of the actual origin of those inputs,
in accordance with the specific rules of origin of Annex 4-A. Section
202(o)(3)(F) of the Act provides that the President shall establish
procedures under sections 202(o)(3)(C) and (E) in order to determine
whether fibers, yarns, or fabrics are not available in commercial
quantities in a timely manner in the United States, and whether a
fiber, yarn, or fabric should be removed from the list in Appendix 4-B-
1 when it has become available in commercial quantities.
In accordance with Annex 4-B-5 of the Agreement, the preferential
tariff treatment accorded to a good provided in Harmonized Tariff
Schedule of the United States (HTSUS) Chapters 51, 52, 54, 55, 58, or
60 that contains fibers, yarns, or fabric that are included in Appendix
4-B-1 of the Agreement and that satisfies the requirements of Rule 1 of
Section XI of Annex 4-A, is limited to 100 million square meter
equivalents in each of the first five years in which the Agreement is
in force.
In accordance with Annex 4-B-6 of the Agreement, the preferential
tariff treatment accorded to a good provided in HTSUS Chapters 61 or 62
that contains fibers, yarns, or fabric that are included in Appendix 4-
B-1 of the Agreement and that satisfies the requirements of Rule 2 or 3
of Section XI of Annex 4-A, is limited to 100 million square meter
equivalents in each of the first five years in which the Agreement is
in force.
To determine the quantity of square meter equivalents that is
charged against the annual quantities described above, CITA shall apply
the conversion factors listed in, or utilize a methodology based on,
the Correlation: U.S. Textile and Apparel Category System with the
Harmonized Tariff Schedule of the United States of America, U.S.
Department of Commerce, Office of Textiles and Apparel (2007), or a
successor document.
Unless the United States and Korea otherwise agree, these
procedures implementing Annex 4-B of the Agreement shall cease to apply
beginning on January 1 of the sixth calendar year in which the
Agreement is in force.
In Proclamation No. 8783, (77 FR 14265, March 9, 2012), the
President delegated to CITA his authority under the commercial
availability provision to establish procedures for modifying the list
of fibers, yarns, or fabrics not available in commercial quantities in
a timely manner, as set out in Annex 4-B of the Agreement.
Pursuant to that delegation, CITA provides below its interim
procedures governing the submission of requests under Section 203(o) in
the Act. As of March 19, 2012, CITA intends to use these procedures to
process requests for modifying the list of fibers, yarns, or fabrics
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 the trade in U.S. and
Korean textile and apparel articles by allowing non-originating fibers,
yarns, and fabrics to be placed on or removed from a list of items not
available in commercial quantities, on a timely basis, 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 the subject
products; make available promptly, to interested entities and parties,
information received regarding the requests for products and offers to
supply; ensure wide participation by interested entities and parties;
provide careful scrutiny of information provided to substantiate order
requests and responses of offers to supply; and provide timely public
dissemination of information used by CITA in making commercial
availability determinations.

[[Page 16003]]

2. Definitions

(a) Commercial Availability Request. A Request for a commercial
availability determination submitted by an interested entity requesting
that CITA place a fiber, yarn, or fabric on the Commercial Availability
List in Appendix 4-B-1 of the Agreement because that fiber, yarn, or
fabric is not available in commercial quantities in a timely manner
from a U.S. supplier.
(b) Commercial Availability List. The list of products (fibers,
yarns, and/or fabrics) contained in Appendix 4-B-1 of the Agreement
that have been determined to be not commercially available from U.S.
suppliers in commercial quantities in a timely manner.
(c) Fiber, Yarn, or Fabric. 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. The government of Korea, 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 202(o)(3)(B)(i) of the Act.
(e) Interested Party. A person that requests to be included on the
email notification list for commercial availability proceedings. Any
person may become an interested party by contacting CITA either by
sending an email to Otexa.KOREA@trade.gov, or through the Web site
dedicated to commercial availability proceedings under the Agreement
(``KOREA FTA Commercial Availability Web site'' or ``Web site''). The
Web site is located on the U.S. Department of Commerce's Office of
Textiles and Apparel Web site (
otexa.trade.gov), under
``Commercial Availability''/``Korea FTA.''
(f) Official Receipt. CITA's email confirmation that it has
received both the email version and the original submission signed by
the interested entity delivered via express courier.
(g) Rebuttal Comment. 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. A submission from an interested entity
requesting that CITA remove a product from the Appendix 4-B-1 list
pursuant to Section 202(o)(3)(C)(iii) of the Act.
(i) Requestor. The interested entity that files, for CITA's
consideration, a Commercial Availability Request or a Request to Remove
under the commercial availability provision of the Act.
(j) Response with an Offer to Supply. A submission from an
interested entity to CITA objecting to the 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. Any calendar day other than a Saturday,
Sunday, or a legal holiday observed by the Government of the United
States. See section 202(o)(3)(B)(ii) of the Act.
(l) U.S. Supplier. A potential or actual manufacturer of a textile
or apparel good in the United States.

3. Submissions for Participation in a Commercial Availability
Proceeding

(a) Filing a Submission. All submissions for a commercial
availability proceeding pursuant to these procedures (e.g., Commercial
Availability Request, Response, Rebuttal, and Request to Remove) must
be in English. If any attachments are in a language other than English,
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 email version of the submission must be either in PDF or
Word format, must contain an adequate public summary of any business
confidential information and the due diligence certification, and
should be sent to
OTEXA.KOREA@trade.gov. The email version of the
submission will be posted for public review on KOREA FTA Commercial
Availability Web site. No business confidential information should be
submitted in the email version of any document.
(2) The original signed submission must be sent via express courier
to--Chairman, Committee for the Implementation of Textile Agreements,
Room 3100, U.S. Department of Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230. Any business confidential
information upon which an interested entity wishes CITA to rely must be
included in the original signed submission. 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 via email, provided
for public release must have a bolded heading stating ``Public
Version'' and all the business confidential information must be deleted
from public versions, 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 suppliers who were contacted,
general information about the capability to manufacture the subject
product, and the responses thereto should be included in public
versions.
(b) Due Diligence Certification. Each submission containing factual
information for CITA's consideration must be accompanied by the
appropriate certification regarding the accuracy of the factual
information. An interested entity must file a certification of due
diligence as described below in subsection (b)(1) with each electronic
and original signed submissions that contains factual information. If
the interested entity has legal counsel or other representative, the
legal counsel or other representative must also file a certification of
due diligence as described in subsection (b)(2) with each electronic
and original signed submissions that contains factual information.
Accurate representations of material facts submitted to CITA for the
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 Commercial Availability Proceeding.
(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

[[Page 16004]]

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 email version and the original
signed submission have been received by CITA. For Commercial
Availability Requests, CITA will provide email confirmation to the
requestor that both versions were received. CITA's email confirmation
shall be considered the ``official receipt'' of the Request, which will
begin the statutory 30 U.S. business day process for CITA's
consideration. CITA will confirm official receipt of any Response and
Rebuttal by posting the submissions on the KOREA FTA 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 U.S.
supplier.
(b) Contents of a Commercial Availability Request.
(1) Detailed Product Information. The Commercial Availability
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 American Society for Testing and Materials (``ASTM'') or the
American Association of Textile Chemists and Colorists (``AATCC'').
If any aspect of the Commercial Availability Request is outside the
normal course of business (e.g., tight deadline, higher standards of
performance, requirements to match existing specifications), requestors
must provide U.S. suppliers with detailed explanations and measurable
criteria for the specification or term at issue. In the course of its
review of the Commercial Availability 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 distinguish 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 Commercial Availability 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.
(3) Due Diligence. The Commercial Availability 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.
Due diligence for the requestor means it has made reasonable efforts to
obtain the subject product from U.S. suppliers.
(i) Generally: The requestor must provide the names and addresses
of suppliers contacted, the name and position of the individuals
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 Commercial Availability 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 U.S. suppliers: Requestors must make
reasonable efforts to identify U.S. suppliers. Requestors should
identify U.S. suppliers through a number of means, including the
requestor's knowledge of the industry, industry directories, and
industry association memberships. For instance, an email from a
requestor with a general inquiry to all manufacturers in the United
States may not constitute due diligence. Rather, reasonable efforts
must be taken to identify U.S. 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
U.S. 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 U.S.
suppliers. Third party communications are no substitute for meaningful
dialogue between appropriate officials. Once interest is expressed
between a requestor and a U.S. supplier, subsequent communications
should be conducted by appropriate officials of the requestor and U.S.
supplier based on normal business practice. A lack of appropriate
business-to-business contact may be deemed to be insufficient due
diligence.
(iv) Description of the Subject Product: In undertaking due
diligence, requestors must provide a detailed description of the
product to U.S. 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 U.S. 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 U.S. suppliers its standard
business practice with respect to the provision of samples. While
requestors may request a sample, a U.S. supplier is not required to
provide a sample under CITA's procedures. However, CITA notes that U.S.
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 U.S. suppliers. In
its inquiries to U.S. suppliers, the requestor

[[Page 16005]]

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 U.S. 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
U.S. supplier proposes a substitutable product, the requestor must
provide reasonable justifications to the U.S. 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 U.S. 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 Commercial Availability Request
must provide information on whether the requestor believes that other
products supplied by the U.S. 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 U.S. supplier.
(5) Additional Information. The Commercial Availability 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.

5. Consideration and Acceptance of a Commercial Availability Request

In considering whether to accept a Commercial Availability Request,
CITA will consider and determine whether the Request provides all the
required information specified in Sections 3 and 4 of these Interim
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.
(a) Request Rejected. If CITA determines that the Commercial
Availability 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 Commercial
Availability 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 Commercial Availability
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 Commercial Availability
Request. The requestor may submit a Commercial Availability 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 Commercial
Availability 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
Commercial Availability 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 Commercial
Availability Request contains the required information, CITA will
notify interested parties by email that the Commercial Availability
Request has been accepted and filed and will assign a File Number. CITA
will post the accepted Commercial Availability 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 with an Offer to Supply.
(a) Response with an Offer to Supply Submission. An interested
entity may file a response objecting to a Commercial Availability
Request by providing an offer to supply the subject product as
described in the Commercial Availability Request. An interested entity
will have 10 U.S. business days after official receipt of a Request to
submit a Response with an Offer to Supply. If good cause is shown, CITA
may extend this deadline, but CITA will still meet the statutory
deadlines.
(b) Contents of a Response with an Offer to Supply.
(1) File Number. The Response with an Offer to Supply must
reference the CITA File Number assigned to the particular Request being
addressed.
(2) Quantity. The Response with an Offer to Supply must contain 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 with an Offer to Supply must contain information, as described
below, supporting the respondent's claim that it is able to supply the
subject product, or a substitutable product, in commercial quantities
in a timely manner.
(i) The Response with an Offer to Supply must report the quantity,
in metric units, that the U.S. 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 U.S. 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 style, weight, or other
variation that is new to the market or new to the U.S. 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.
(iv) A U.S. supplier may support its claim to be able to produce
the subject

[[Page 16006]]

product through provision of a sample meeting exactly the
specifications as presented in the Commercial Availability 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 its 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 with an Offer to Supply must include, as
applicable, the rationale, supported by measurable criteria, for the
U.S. supplier's assertion that other products that are supplied by the
U.S. supplier in commercial quantities in a timely manner are
substitutable for the subject product(s) for purposes of the intended
use.
(vi) In its review of a Response with an Offer to Supply, CITA will
consider whether the U.S. 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 U.S. supplier was not responsive,
a U.S. supplier must provide a reasonable explanation in its Response
with an Offer to Supply as to why it did not respond to earlier
inquiries by the requestor in the course of due diligence. CITA will
reject a Response with an Offer to Supply if it does not include such
explanation.
(4) Due Diligence. The Response with an Offer to Supply must
provide a complete description of the due diligence undertaken by the
U.S. supplier to substantiate the ability to supply the subject
product. If a U.S. 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 U.S. supplier has been responsive to a requestor in the
undertaking of due diligence, the U.S. 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 U.S. supplier's claim to supply the subject product, or
one substitutable, in commercial quantities in a timely manner.
(ii) If a U.S. 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 U.S. supplier does
not provide such information, it must 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 U.S.
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 style, weight, or other
variation that is new to the market or new to the U.S. 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 U.S. 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
U.S. 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 U.S. supplier's rationale that other
products that are supplied by the U.S. 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 U.S. supplier
to provide business confidential or other commercially sensitive
information to a requestor. However, a U.S. 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 U.S. supplier. The Response with an Offer to
Supply 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 Comment must meet the requirements outlined in Section 3
of these procedures. General comments in support of or opposition to a
Commercial Availability Request or a Response do not meet the
requirements of a Rebuttal Comment. A Due Diligence Certification must
accompany a Rebuttal Comment.
(a) Rebuttal Comment. Any interested entity may submit a Rebuttal
Comment. An interested entity must submit its Rebuttal Comment not
later than 4 U.S. business days after the deadline for a Response. If
good cause is shown, CITA may extend the time limit, but CITA will
still meet the statutory deadlines.
(b) Contents of a Rebuttal. The Rebuttal Comment may respond only
to evidence or arguments raised in a Response and must identify the
Response, and evidence and/or arguments to which it is responding. The
Rebuttal Comment must reference the CITA File Number assigned to the
particular Commercial Availability Request being addressed.

8. Determination Process

(a) Not later than 30 U.S. business days after official receipt of
a Commercial Availability Request (or not later than 60 U.S. business
days where an extension is provided), CITA will notify interested
entities by email and interested parties and the public by a posting on
its Web site whether the subject product is available in commercial
quantities in a timely manner in the United States and whether an
interested entity has objected to the Commercial Availability 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 Appendix 4-B-1 of the Agreement.
(c) Types of Determinations.
(1) Approval: An Approval means that CITA has determined that the
subject product is not available in commercial quantities in a timely
manner in the United States. If a Commercial Availability Request is
approved, a notice will be published in the Federal Register adding the
product to Appendix 4-B-1 of the Agreement.

[[Page 16007]]

(2) 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. If a Commercial Availability Request is
denied, notice of the denial will be posted on the KOREA FTA 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
Commercial Availability 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
Commercial Availability Request. The requestor may submit a new
Commercial Availability 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 Commercial Availability 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 Commercial Availability Request if there is a substitute
product that does not require such prohibited inputs, specifications,
or processes.
(3) Insufficient Information to Determine: CITA will extend its
time period for consideration of the Commercial Availability Request by
an additional 30 U.S. business days in the event that CITA determines,
not later than 30 U.S. business days after official receipt of a
Commercial Availability Request, that it has insufficient information
to make a determination regarding the ability of a U.S. entity to
supply the subject products of the Commercial Availability Request
based on the submitted information. CITA will normally determine that
it does not have sufficient information to make a determination on a
Commercial Availability Request when CITA finds there is inconsistency
in material information contained in the Commercial Availability
Request, one or more Responses, and/or the Rebuttal Comment(s). CITA
will notify interested parties via email that it has extended the time
period for CITA's consideration by 30 U.S. business days. CITA also
will announce the extension on the Web site.
(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 3100,
U.S. Department of Commerce, 14th Street and Constitution Avenue, 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 Commercial
Availability 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
U.S. supplier(s) can supply a substantially similar product to that
specified in the Commercial Availability Request.
(iii) CITA will make a determination, not later than 60 U.S.
business days after the official receipt of a Commercial Availability
Request whether to approve or deny the Request and will follow the
notification process accordingly.
(4) Deemed Denial: In the event that CITA does not make a
determination in response to a Commercial Availability Request to add a
product to Appendix 4-B-1 of the Agreement within the statutory
deadlines provided, not later than 30 U.S. business days after the
official receipt of the Commercial Availability Request or not later
than 60 U.S. business days after the official receipt of the Commercial
Availability Request that was determined to lack sufficient information
pursuant to Section 8 of these procedures, the Request will be
considered to be denied.

9. Submitting a Request to Remove

(a) Request to Remove. An interested entity may submit a request to
remove a product from Appendix 4-B-1. See Section 202(o)(3)(E)(i) of
the Act.
(b) Content of a Request to Remove. The Request to Remove 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, 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, 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 is available in commercial quantities
in a timely manner in the United States not later than 30 U.S. business
days after the official receipt of the Request to Remove.
(i) If CITA determines that the product is available in commercial
quantities in a timely manner in the United States, then that product
will be removed from the Commercial Availability List in Appendix 4-B-1
of the Agreement. Removal of the product shall not take effect earlier
than six months (i.e., 180 calendar days) after publication of notice
in the Federal Register that CITA has determined that the product is
available in commercial quantities in a timely manner in the United
States.
(ii) If the Commercial Availability List changes as a result of
CITA's determination for the Request to Remove, CITA will notify
interested parties by email of its determination and will publish a
notice of its determination for the Request to Remove in the Federal
Register.
(d) For removal, the notice of determination will state that
textile and apparel articles containing the subject product are not to
be treated as originating in the United States if the subject product
is obtained from sources outside the United States, 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
202(o)(3)(E)(iii) of the Act.

Request for Comment on the Interim Procedures

Comments must be received no later than April 18, 2012 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, via email, must be either in
PDF or Word format, and sent to the following email address
OTEXA.KOREA@trade.gov. The email version of the comments must include
an original electronic signature. Further, the comments must have a
bolded heading stating ``Public Version'', and

[[Page 16008]]

no business confidential information may be included. The email version
of the comments will be posted for public review on the KOREA FTA
Commercial Availability Web site.
(4) Comments submitted in hard copy must include original
signatures and must be mailed to the Chairman, Committee for the
Implementation of Textile Agreements, Room 3100, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230. All comments submitted in hard copy will be made available for
public inspection at the Office of Textiles and Apparel, Room 3100,
U.S. Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC, between the hours of 8:30 a.m. and 5 p.m. on business
days. In addition, comments submitted in hard copy will also be posted
for public review on the KOREA FTA Commercial Availability Web site.
(5) Any business confidential information upon which an interested
person wishes to rely may only be included in a hard copy version of
the comments. Brackets must be placed around all business confidential
information. Comments 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''. The Committee will
protect from disclosure any business confidential information that is
marked ``Business Confidential Information'' to the full extent
permitted by law.

Estimate of Burden to the Public for Collection of Information and
Request for Public Comment

In accordance with Section 203(o) of the Act and as reflected in
the interim procedures for commercial availability proceedings, CITA
must collect certain information about the technical specifications of
a fiber, yarn, or fabric and the production capabilities of U.S.
textile producers to determine whether certain fibers, yarns, or
fabrics are available in commercial quantities in a timely manner in
the United States. This information collection is subject to review and
approval by the Office of Management and Budget's (``OMB'') OMB under
the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et seq.
OMB has approved under Control Number 0625-0270 the interim
procedures requiring the collection of information under the emergency
provisions of the PRA. In accordance with the PRA, CITA has estimated
the ``burden'' (in number of hours) on the public to submit information
required by CITA under its interim procedures. CITA hereby provides the
public the opportunity to provide comment on its estimates of the
burden on the public to submit information to CITA under the U.S.-Korea
FTA Commercial Availability provision.
Estimate of Burden as a Result of Information Collection: Based on
estimates on the number of Requests, Rebuttals and Responses filed per
year, and the average amount of time required to submit a Request,
Rebuttal, and Response, CITA estimates that the total annual burden to
the public is 89 hours per year. A further breakdown of its estimates
for the number of hours to collect and provide information to CITA for
Requests, Responses and Rebuttals is provided in detail below.
Requests: CITA estimates that 10 Requests will be filed per year
under the U.S.-Korea FTA Commercial Availability provision. Based on
the following activities required to submit a Request, CITA estimates
that the total time to collect and present information in a Request is
8 hours, for a total of 80 hours per year.

------------------------------------------------------------------------
Activity: Request Time required
------------------------------------------------------------------------
Due Diligence.............................. 5 hours.
Summarizing Due Diligence and Preparing 2 hours.
Request.
Preparing Supporting Documentation......... 1 hour.
Total Time per Request..................... 8 hours.
Times 10 Requests per Year................. 80 hours.
------------------------------------------------------------------------

Responses: CITA estimates that 3 Responses will be filed per year
under the U.S.-Korea FTA Commercial Availability provision. Based on
the following activities required to submit a Response, CITA estimates
that the total time to collect and present information in a Response is
2 hours, for a total of 6 hours per year.

------------------------------------------------------------------------
Activity: Response Time required
------------------------------------------------------------------------
Preparing Response......................... 1.5 hours.
Preparing Supporting Documentation......... .5 hours.
Total Time per Request..................... 2 hours.
Times 3 Requests per Year.................. 6 hours.
------------------------------------------------------------------------

Rebuttals: CITA estimates that 3 Rebuttals will be filed per year.
The average amount of time required to prepare each Rebuttal is
estimated at 1 hour, for a total annual burden for all Rebuttals of 3
hours.

------------------------------------------------------------------------
Activity: Rebuttal Time required
------------------------------------------------------------------------
Preparing Rebuttal......................... 1 hour.
Total Time per Request..................... 1 hour.
Times 3 Requests per Year.................. 3 hour.
------------------------------------------------------------------------

Combined, these three information collections represent an annual
burden of 89 hours. Copies of the above estimate can be obtained by
calling or writing Jennifer Jessup, Departmental Paperwork Clearance
Officer, (202) 482-0336, Department of Commerce, Room 6616, 14th &
Constitution Avenue, NW., Washington, DC 20230 or via e-mail at
JJessup@doc.gov
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the PRA, unless that collection of information displays
a currently valid OMB Control Number.

Kimberly Glas,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 2012-6725 Filed 3-15-12; 4:15 pm]
BILLING CODE 3510-DS-P