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NOTICE: NOTICES

ACTION: Textile and apparel categories:

DOCUMENT ACTION: Publishing the New 12-Month Cap on Duty- and Quota-Free Benefits.

SUBJECT CATEGORY: Limitations of Duty- and Quota-Free Imports of Apparel Articles Assembled in Beneficiary Sub-Saharan African Countries from Regional and Third-Country Fabric

EFFECTIVE DATES: October 1, 2006.

DOCUMENT SUMMARY: September 21, 2006.

SUMMARY: Sub-Saharan African countries; import limitations,

DOCUMENT BODY 2: September 21, 2006.

SUPPLEMENTAL INFORMATION

Authority: Title I, Section 112(b)(3) of the Trade and Development Act of 2000, as amended by Section 3108 of the Trade Act of 2002 and Section 7(b)(2) of the AGOA Acceleration Act of 2004; Presidential Proclamation 7350 of October 4, 2000 (65 FR 59321); Presidential Proclamation 7626 of November 13, 2002 (67 FR 69459).

Title I of the Trade and Development Act of 2000 (TDA 2000) provides for duty and quotafree treatment for certain textile and apparel articles imported from designated beneficiary subSaharan African countries. Section 112(b)(3) of TDA 2000 provides duty and quotafree treatment for apparel articles wholly assembled in one or more beneficiary subSaharan African countries from fabric wholly formed in one or more beneficiary countries from yarn originating in the U.S. or one or more beneficiary countries. This preferential treatment is also available for apparel articles assembled in one or more lesserdeveloped beneficiary subSaharan African countries, regardless of the country of origin of the fabric used to make such articles. This special rule for lesserdeveloped countries applied through September 30, 2004. TDA 2000 imposed a quantitative limitation on imports eligible for preferential treatment under these two provisions.

The Trade Act of 2002 amended TDA 2000 to extend preferential treatment to apparel assembled in a beneficiary subSaharan African country from components knittoshape in a beneficiary country from U.S. or beneficiary country yarns and to apparel formed on seamless knitting machines in a beneficiary country from U.S. or beneficiary country yarns, subject to the quantitative limitation. The Trade Act of 2002 also increased the quantitative limitation but provided that this increase would not apply to apparel imported under the special rule for lesserdeveloped countries. Section 7(b)(2)(B) of the AGOA Acceleration Act extended the expiration of the quantitative limitation through September 30, 2015, and the expiration of the limitation for the special rule for lesserdeveloped countries through September 30, 2007. It also further amended the percentages to be used in calculating the quantitative limitations for each twelvemonth period, beginning on October 1, 2003. The AGOA Acceleration Act of 2004 provides that the quantitative limitation for the twelvemonth period beginning October 1, 2006 will be an amount not to exceed 6.43675 percent of the aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12month period for which data are available. See Section 112(b)(3)(A)(ii)(I) of TDA 2000, as amended by Section 7(b)(2)(B) of the AGOA Acceleration Act. Of this overall amount, apparel imported under the special rule for lesserdeveloped countries is limited to an amount not to exceed 1.6071 percent of all apparel articles imported into the United States in the preceding 12 month period. See Section 112(b)(3)(B)(ii)(II) of TDA 2000, as amended by Section 7(b)(2)(B) of the AGOA Acceleration Act. For the purpose of this notice, the most recent 12month period for which data are available is the 12month period ending July 31, 2006.

Presidential Proclamation 7350 directed CITA to publish the aggregate quantity of imports allowed during each 12month period in the Federal Register. Presidential Proclamation 7626, published on November 18, 2002, modified the aggregate quantity of imports allowed during each 12month period.

For the oneyear period, beginning on October 1, 2006, and extending through September 30, 2007, the aggregate quantity of imports eligible for preferential treatment under these provisions is 1,498,846,694 square meters equivalent. Of this amount, 374,225,583 square meters equivalent is available to apparel articles imported under the special rule for lesserdeveloped countries. Apparel articles entered in excess of these quantities will be subject to otherwise applicable tariffs.

These quantities are calculated using the aggregate square meter equivalents of all apparel articles imported into the United States, derived from the set of Harmonized System lines listed in the Annex to the World Trade Organization Agreement on Textiles and Clothing (ATC), and the conversion factors for units of measure into square meter equivalents used by the United States in implementing the ATC. Philip J. Martello,
Acting Chairman, Committee for the Implementation of Textile Agreements.

FOR FURTHER INFORMATION CONTACT Anna Flaaten, International Trade Specialist, Office of Textiles and Apparel, U.S. Department of Commerce, (202) 4823400.