Comments Requested on Procedures for Peru FTA Textile/Apparel Safeguard Actions
The International Trade Administration has issued a notice requesting comments on the procedures the Committee for the Implementation of Textile Agreements will follow in considering requests from the public for textile and apparel safeguard actions (in the form of higher duty rates) as provided for in the U.S.-Peru Free Trade Agreement Implementation Act.1
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The ITA's notice is in the form of a proposed information collection. Comments are due by August 2, 2010. (Note that this is the first notice that has been issued detailing the PFTA textile safeguard procedures.)
The Peru FTA provides a safeguard mechanism -- in the form of increased duty rates -- that may be applied when, as a result of the elimination of a customs duty under the Peru FTA, a textile or apparel article from Peru is being imported into the U.S. in such increased quantities, in absolute terms or relative to the domestic market for that article, and under such conditions, as to cause serious damage or actual threat thereof to a U.S. industry producing a like or directly competitive article.
In these circumstances, the Peru FTA permits the U.S. to increase the duty rate to a level that does not exceed the lesser of the prevailing column 1 NTR/MFN rate or the column 1 NTR/MFN rate in effect the day prior to the Peru FTA entering into force.
Procedures for Requesting and Imposing an Peru FTA Safeguard Duty Rate
The ITA's notice outlines the procedures for requesting and imposing a safeguard duty rate on a textile and/or apparel product from Peru, highlights of which include:
Requests may be filed by interested parties. An interested party in the U.S. domestic textile and apparel industry may file a request for a textile and apparel safeguard action with CITA. CITA considers an interested party to be an entity that is representative of a domestic producer(s) of an article (or a component used in the production of an article) that is like or directly competitive with the subject textile and/or apparel article from Peru. Requests must include certain specified information such as product description; certain import, production, and market share data; certain additional data or estimates showing serious damage or actual threat thereof; etc.
CITA to seek public comments. CITA states that if it determines that a request provides the information necessary for it to be considered, it will publish a Federal Register notice seeking public comments. CITA may also provide an additional time period for rebuttals, clarifications, or corrections as necessary.
CITA to make determination of serious damage/threat. CITA explains that it will make a determination within 60 calendar days of the close of the comment period as to whether serious damage or actual threat thereof, is occurring as a result of the elimination of duties under the Peru FTA. (CITA notes that if it is unable to make a determination within this time period, it will publish a Federal Register notice which will contain the date by which it will make a determination.)
For an affirmative determination, CITA may provide tariff relief. If CITA’s determination is affirmative, CITA may provide import tariff relief to a U.S. industry to the extent necessary to remedy or prevent the serious damage or actual threat thereof and to facilitate adjustment by the domestic industry to import competition.
The import tariff relief is effective beginning on the date that CITA’s affirmative determination is published in the Federal Register. (See ITA notice for information on the maintenance of an official record for each request, the portions that will be made public, etc.)
1The agreement is the U.S.-Peru Trade Promotion Agreement (PTPA or PFTA)
(See ITT’s Online Archives or 02/23/09 news, 09022320, for BP summary of CBP's instructions on filing claims under the Peru TPA. See ITT's Online Archives or 02/02/09 news, 09020210 for BP summary of Presidential Proclamation 8341 implementing the U.S.-Peru TPA.)
CITA Contact -- Robert Carrigg (202) 482-2573