|Citation: [Federal Register Volume 81, Number 149 (Wednesday, August 3, 2016)]|
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18345]
COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS
Determination Under the Textile and Apparel Commercial
Availability Provision of the Dominican Republic-Central America-United
States Free Trade Agreement (``CAFTA-DR Agreement'')
AGENCY: The Committee for the Implementation of Textile Agreements.
ACTION: Determination to add a product in unrestricted quantities to
Annex 3.25 of the CAFTA-DR Agreement.
EFFECTIVE DATE: August 3, 2016.
SUMMARY: The Committee for the Implementation of Textile Agreements
(``CITA'') has determined that certain two-ply polyester yarn, as
specified below, is not available in commercial quantities in a timely
manner in the CAFTA-DR countries. The product will be added to the list
in Annex 3.25 of the CAFTA-DR Agreement in unrestricted quantities.
FOR FURTHER INFORMATION CONTACT: Richard Stetson, Office of Textiles
and Apparel, U.S. Department of Commerce, (202) 482-3400.
For Further Information On-Line: http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf under ``Approved Requests,'' Reference number:
Authority: The CAFTA-DR Agreement; Section 203(o)(4) of the
Dominican Republic-Central America-United States Free Trade Agreement
Implementation Act (``CAFTA-DR Implementation Act''), Public Law 109-
53; and Presidential Proclamations 7987 (February 28, 2006) and 7996
(March 31, 2006).
Background: Annex 3.25 of the CAFTA-DR Agreement contains a list of
fabrics, yarns, and fibers that the Parties to the CAFTA-DR Agreement
have determined are not available in commercial quantities in a timely
manner in the territory of any Party. Articles 3.25.4 and 3.25.5 of the
CAFTA-DR Agreement provide that this list may be modified if the United
States determines that a fabric, yarn, or fiber is not available in
in a timely manner in the territory of any Party. Section 203(o)(4) of
the CAFTA-DR Implementation Act authorizes the President to make
determinations regarding commercial availability of fabrics, yarns and
fibers in the CAFTA-DR countries and to proclaim modifications to the
list in Annex 3.25. The CAFTA-DR Implementation Act requires the
President to establish procedures governing the submission of a request
and providing opportunity for interested entities to submit comments
and supporting evidence before a commercial availability determination
is made. In Presidential Proclamations 7987 and 7996, the President
delegated to CITA the authority under section 203(o)(4) of CAFTA-DR
Implementation Act for modifying the Annex 3.25 list. Pursuant to this
authority, on September 15, 2008, CITA published modified procedures it
would follow in considering requests to modify the Annex 3.25 list of
products determined to be not commercially available in the territory
of any Party to CAFTA-DR (Modifications to Procedures for Considering
Requests Under the Commercial Availability Provision of the Dominican
Republic-Central America-United States Free Trade Agreement, 73 FR
53200) (``CITA's procedures'').
On June 1, 2016, the Chairman of CITA received a Request for a
Commercial Availability Determination (``Request'') from Sandler,
Travis & Rosenberg, P.A. on behalf of Polartec LLC. (``Polartec'') for
a certain two-ply polyester yarn, as specified below.
On June 3, 2016, in accordance with CITA's procedures, CITA
notified interested parties of the Request, which was posted on the
dedicated Web site for DR-CAFTA Commercial Availability proceedings. In
its notification, CITA advised that any Response with an Offer to
Supply (``Response'') to the Request must be submitted by June 15,
2016, and any rebuttal comments to a Response (``Rebuttal'') must be
submitted by June 21, 2016.
On June 15, 2016, the Chairman received two Responses: one from CS
Central America S.A. de C.V (``CSCA''), and one from Unifi
Manufacturing, Inc (``Unifi''). On June 24, 2016, Unifi withdrew its
Response. On June 28, 2016, Polartec submitted its Rebuttal.
In accordance with Section 203(o)(4) of the DR-CAFTA Implementation
Act, Article 3.25 of the DR-CAFTA, and section 8(c)(4) of CITA's
procedures, because there was insufficient information to make a
determination within 30 U.S. business days, CITA extended the deadline
to make its determinations by 14 U.S. business days, and called for a
public meeting on July 8, 2016, to collect additional information from
representatives of Polartec and CSCA and provide the interested
entities with an opportunity to submit additional evidence to support
their claims regarding the capability of CSCA to supply the subject
yarn. At CITA's request, additional information was submitted by CSCA
for the record on July 12 and July 13, 2016.
Section 8 of CITA's procedures provide that after receiving a
Request, a determination will be made as to whether the subject product
is available in commercial quantities in a timely manner in the CAFTA-
DR countries. In the instant case, CSCA provided several samples to
Polartec, which both CSCA and Polartec had tested to determine if the
samples met the required specifications. Because the test results
provided for the record were inconclusive, CITA looked to other
information in the record to determine whether CSCA had demonstrated it
had the capability of supplying the subject product as specified.
Section 6(b)(3)(iv) of CITA's procedures state that ``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.'' The record clearly
indicates that, while CSCA provided some information regarding their
current production and development timeline, CSCA had not provided any
information regarding its production process, specifically with respect
to: (1) How its experience with its current yarn production imparted
the necessary expertise to make yarns with the specified physical
properties and performance characteristics; or (2) what kind of
modifications CSCA would have to make to its current yarn production
processes to produce the subject yarn. CITA finds that, given the
differences between the yarns CSCA currently produces and the
specifications of the subject yarn, this information was necessary to
adequately demonstrate CSCA's capability to supply the subject yarn,
which requires significantly different physical properties and
performance characteristics. CSCA had several opportunities to present
CITA with the information required under its procedures, but failed to
do so in the course of due diligence, in its Response, or in the public
meeting. Therefore, because CSCA did not provide sufficient relevant
information regarding its production capability as required under
CITA's procedures, CSCA did not demonstrate its capability to produce
the subject yarn in commercial quantities in a timely manner.
Therefore, in accordance with section 203(o) of the CAFTA-DR
Implementation Act, and Section 8 of CITA's procedures, as no
interested entity has substantiated its ability to supply the subject
product in commercial quantities in a timely manner, CITA has
determined to add the specified fabric to the list in Annex 3.25 of the
The subject product has been added to the list in Annex 3.25 of the
CAFTA-DR Agreement in unrestricted quantities. A revised list has been
posted on the dedicated Web site for CAFTA-DR Commercial Availability
Specifications: Certain Two-Ply Polyester Yarn
Fiber Content: 100% Polyester (60-66% Cationic, 34-40% Disperse).
Number of Plies: 2.
Yarn Size: 122 Metric (73.8 denier/82 decitex) to 103 Metric (87
Filaments: 144 total.
Yarn Properties: False Twist Textured--Mechanical process by which
POY material(s) are heated, drawn, twisted/untwisted, and heat set in
order to add bulk and comfort characteristics.
3.12 to 3.45 Break Force/Tenacity (CN) (ISO 2062)
30.68 to 33.92% Elongation (ISO 2062)
7.5 to 8.5% Crimp contraction (ASTM D4031)
8.0 to 8.8% Shrinkage (ASTM D2259)
154 to 170 Interlace per meter (manual count in 10 cm section--
extrapolated to 1 m
2.5 to 2.7% Oil pick up (ASTM D2257)
NOTE: The yarn size designations describe a range of yarn
specifications for yarn before knitting, dyeing and finishing of the
fabric. They are intended as specifications to be followed by the
mill in sourcing yarn used to produce fabric. Dyeing, finishing, and
knitting can alter the characteristics of the yarn as it appears in
the finished fabric. This specification therefore includes yarns
appearing in the finished fabric as finer or coarser than the
designated yarn sizes provided that the variation occurs after
processing of the greige yarn and production of the fabric. The
specifications for the yarn apply to the yarn itself prior to
cutting, sewing and finishing of a finished garment. Such processing
may alter the measurements.
Janet E. Heinzen,
Acting Chairman, Committee for the Implementation of Textile
[FR Doc. 2016-18345 Filed 8-2-16; 8:45 am]