Designation under the Textile and Apparel Commercial Availability Provision of the African Growth and Opportunity Act (AGOA), the Andean Trade Promotion and Drug Eradication Act (ATPDEA), and the U.S. - Caribbean Basin Trade Partnership Act (CBTPA), 24767-24768 [05-9412]
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Federal Register / Vol. 70, No. 90 / Wednesday, May 11, 2005 / Notices
provided the requirements of that
subheading are met.
COMMITTEE FOR THE
IMPLEMENTATION OF TEXTILE
AGREEMENTS
Designation under the Textile and
Apparel Commercial Availability
Provision of the African Growth and
Opportunity Act (AGOA), the Andean
Trade Promotion and Drug Eradication
Act (ATPDEA), and the U.S. Caribbean Basin Trade Partnership Act
(CBTPA)
May 5, 2005.
The Committee for the
Implementation of Textile Agreements
(CITA)
ACTION: Designation.
AGENCY:
May 11, 2005.
has determined that
certain ring spun single yarns of English
yarn number 30 and higher of 0.9 denier
or finer micro modal fibers, classified in
subheading 5510.11.0000 of the
Harmonized Tariff Schedule of the
United States (HTSUS), for use in
women’s and girls’ knit apparel articles,
cannot be supplied by the domestic
industry in commercial quantities in a
timely manner under the AGOA, the
ATPDEA, and the CBTPA. CITA hereby
designates such apparel articles that are
both cut and sewn or otherwise
assembled in one or more eligible
beneficiary sub Saharan African country
or in one or more eligible CBTPA
beneficiary country from U.S. formed
fabrics containing such yarns as eligible
to enter free of quotas and duties under
HTSUS subheading 9819.11.24 or
9820.11.27, provided all other yarns
used in the referenced apparel articles
are U.S. formed and all other fabrics
used in the referenced apparel articles
are U.S. formed from yarns wholly
formed in the United States. CITA also
hereby designates such yarns as eligible
under HTSUS subheading 9821.11.10, if
used in women’s and girls’ knit apparel
articles sewn or otherwise assembled in
an eligible ATPDEA beneficiary country
from U.S. formed fabric containing such
yarns; such apparel containing such
yarns shall be eligible to enter free of
quotas and duties under this
subheading, provided all other yarns
used in the referenced apparel articles
are U.S. formed and all other fabrics
used in the referenced apparel articles
are U.S. formed from yarns wholly
formed in the United States. CITA notes
that this designation under the ATPDEA
renders women’s and girls’ knit apparel
articles sewn or otherwise assembled in
an eligible ATPDEA beneficiary country
containing such yarn as eligible for
quota-free and duty-free treatment
under HTSUS subheading 9821.11.13,
EFFECTIVE DATE:
SUMMARY: CITA
VerDate jul<14>2003
16:48 May 10, 2005
Jkt 205001
FOR FURTHER INFORMATION CONTACT:
Janet Heinzen, Office of Textiles and
Apparel, U.S. Department of Commerce,
(202) 482 3400.
SUPPLEMENTARY INFORMATION:
Authority: Section 112(b)(5)(B) of the
AGOA; Section 213(b)(2)(A)(v)(II) of the
CBTPA, as added by Section 211(a) of the
CBTPA; Sections 1 and 6 of Executive Order
No. 13191 of January 17, 2001; Presidential
Proclamations 7350 and 7351 of October 4,
2000; Section 204 (b)(3)(B)(ii) of the
ATPDEA, Presidential Proclamation 7616 of
October 31, 2002, Executive Order 13277 of
November 19, 2002, and the United States
Trade Representative’s Notice of Further
Assignment of Functions of November 25,
2002.
BACKGROUND:
The commercial availability
provisions of the AGOA, the ATPDEA,
and the CBTPA provide for duty free
and quota free treatment for apparel
articles that are both cut (or knit to
shape) and sewn or otherwise
assembled in one or more beneficiary
countries from fabric or yarn that is not
formed in the United States if it has
been determined that such yarns or
fabrics cannot be supplied by the
domestic industry in commercial
quantities in a timely manner and
certain procedural requirements have
been met. In Presidential Proclamations
7350 and 7351 of October 4, 2000 and
Presidential Proclamation 7616 of
October 31, 2002, the President
proclaimed that this treatment would
apply to such apparel articles from
fabrics or yarns designated by the
appropriate U.S. government authority
in the Federal Register. In Sections 1
and 6 of Executive Order No. 13191 of
January 17, 2001, Executive Order
13277 of November 19, 2002, and the
United States Trade Representative’s
Notice of Further Assignment of
Functions of November 25, 2002, CITA
was authorized to determine whether
yarns or fabrics cannot be supplied by
the domestic industry in commercial
quantities in a timely manner under the
AGOA, the CBTPA, or the ATPDEA.
On December 27, 2004, CITA received
a request alleging that certain ring spun
single yarns of English yarn number 30
and higher of 0.9 denier or finer micro
modal fibers, described above, for use in
women’s and girls’ knit apparel articles,
cannot be supplied by the domestic
industry in commercial quantities in a
timely manner under the AGOA, the
ATPDEA and the CBTPA. It requested
that such apparel articles containing
such yarns be eligible for preferential
treatment under the AGOA, the
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Fmt 4703
Sfmt 4703
24767
ATPDEA, and the CBTPA. On January 3,
2005, CITA requested public comment
on the petition. See Request for Public
Comments on Commercial Availability
Petition under the African Growth and
Opportunity Act (AGOA), the United
States - Caribbean Basin Trade
Partnership Act (CBTPA), and the
Andean Trade Promotion and Drug
Eradication Act (ATPDEA), 70 FR 80
(January 3, 2005). On January 19, 2005,
CITA and the U.S. Trade Representative
(USTR) sought the advice of the
Industry Trade Advisory Committee for
Textiles and Clothing and the Industry
Trade Advisory Committee for
Distribution Services. On January 19,
2005, CITA and USTR offered to hold
consultations with the Committee on
Ways and Means of the House of
Representatives and the Committee on
Finance of the Senate (collectively, the
Congressional Committees). On
February 7, 2005, the U.S. International
Trade Commission provided advice on
the request.
Based on the information and advice
received and its understanding of the
industry, CITA determined that the yarn
set forth in the request cannot be
supplied by the domestic industry in
commercial quantities in a timely
manner. On February 25, 2005, CITA
and USTR submitted a report to the
Congressional Committees that set forth
the action proposed, the reasons for
such action, and advice obtained. A
period of 60 calendar days since this
report was submitted has expired, as
required by the AGOA, the ATPDEA,
and the CBTPA.
CITA hereby designates women’s and
girls’ knit apparel articles that are both
cut and sewn or otherwise assembled in
one or more eligible beneficiary sub
Saharan African country or in one or
more eligible CBTPA beneficiary
country from U.S. formed fabrics
containing ring spun single yarns of
English yarn number 30 and higher of
0.9 denier or finer micro modal fibers,
classified in HTSUS subheading
5510.11.0000, as eligible to enter free of
quotas and duties under HTSUS
subheading 9819.11.24 or 9820.11.27,
provided all other yarns used in the
referenced apparel articles are U.S.
formed and all other fabrics used in the
referenced apparel articles are U.S.
formed from yarns wholly formed in the
United States, subject to the special
rules for findings and trimmings, certain
interlinings and de minimis fibers and
yarns under section 112(d) of the AGOA
and section 211 (vii) of the CBTPA, and
that such articles are imported directly
into the customs territory of the United
States from an eligible AGOA or CBTPA
beneficiary country.
E:\FR\FM\11MYN1.SGM
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24768
Federal Register / Vol. 70, No. 90 / Wednesday, May 11, 2005 / Notices
CITA also hereby designates such
yarns as eligible under HTSUS
subheading 9821.11.10, if used in
women’s and girls’ knit apparel articles
sewn or otherwise assembled in an
eligible ATPDEA beneficiary country
from U.S. formed fabric containing such
yarns. Such apparel containing such
yarns shall be eligible to enter free of
quotas and duties under this
subheading, provided all other yarns
used in the referenced apparel articles
are U.S. formed and all other fabrics
used in the referenced apparel articles
are U.S. formed from yarns wholly
formed in the United States, subject to
the special rules for findings and
trimmings, certain interlinings and de
minimis fibers and yarns under section
204(b)(3)(B)(vi) of the ATPDEA, and that
such articles are imported directly into
the customs territory of the United
States from an eligible ATPDEA
beneficiary country.
An ‘‘eligible beneficiary sub Saharan
African country’’ means a country
which the President has designated as a
beneficiary sub Saharan African country
under section 506A of the Trade Act of
1974 (19 U.S.C. 2466a), and which has
been the subject of a finding, published
in the Federal Register, that the country
has satisfied the requirements of section
113 of the AGOA (19 U.S.C. 3722),
resulting in the enumeration of such
country in U.S. note 1 to subchapter XIX
of chapter 98 of the HTSUS.
An ‘‘eligible ATPDEA beneficiary
country’’ means a country which the
President has designated as an ATPDEA
beneficiary country under section
203(a)(1) of the Andean Trade
Preference Act (ATPA) (19 U.S.C.
3202(a)(1)), and which has been the
subject of a finding, published in the
Federal Register, that the country has
satisfied the requirements of section
203(c) and (d) of the ATPA (19 U.S.C.
3202(c) and (d)), resulting in the
enumeration of such country in U.S.
note 1 to subchapter XXI of Chapter 98
of the HTSUS.
An ‘‘eligible CBTPA beneficiary
country’’ means a country which the
President has designated as a CBTPA
beneficiary country under section
213(b)(5)(B) of the Caribbean Basin
Recovery Act (CBERA) (19 U.S.C.
2703(b)(5)(B)), and which has been the
subject of a finding, published in the
Federal Register, that the country has
satisfied the requirements of section
213(b)(4)(A)(ii) of the CBERA (19 U.S.C.
2703(b)(4)(A)(ii)), resulting in the
enumeration of such country in U.S.
VerDate jul<14>2003
17:53 May 10, 2005
Jkt 205001
note 1 to subchapter XX of Chapter 98
of the HTSUS.
D. Michael Hutchinson,
Acting Chairman, Committee for the
Implementation of Textile Agreements.
[FR Doc. 05–9412 Filed 5–10–05; 8:45 am]
BILLING CODE 3510–DS–S
COMMODITY FUTURES TRADING
COMMISSION
Amendment of Interpretation
SUMMARY: Section 4d(a)(2) of the
Commodity Exchange Act (‘‘CEA’’) and
related Commission regulations
(hereinafter collectively referred to as
‘‘segregation requirements’’) require that
all funds received by a futures
commission merchant (‘‘FCM’’) from a
customer to margin, guarantee, or secure
futures or commodity options
transactions and all accruals thereon be
accounted for separately, and not be
commingled with the FCM’s own funds
or used to margin the trades of or two
extend credit to any other person.1
Further, Section 4d(a)(2) has been
construed to require that customer
funds, when deposited with any bank,
trust company, clearing organization or
another FCM, be available to the FCM
carrying the customer account upon
demand.2
In Financial and Segregation
Interpretation No. 10, the Division of
Trading and Markets (predecessor to the
Division of Clearing and Intermediary
Oversight (‘‘Division’’)) first addressed
the issue of whether customer funds
may be deposited at a bank in a
safekeeping or custodial account
(otherwise known as ‘‘safekeeping
account’’ or ‘‘third-party custodial
account’’), in lieu of posting such funds
directly with an FCM, without being
deemed to violate the segregation
requirements.3 Because Section 17(f) of
the Investment Company Act of 1940,4
at the time, was interpreted by
Securities and Exchange Commission
(‘‘SEC’’) staff to generally bar registered
investment companies (‘‘RICs’’) from
using FCMs and futures clearinghouses
as custodians of fund assets, it was
decided that the use of third-party
note 7, infra.
note 8, infra.
3 Financial and Segregation Interpretation No. 10,
Treatment of Funds Deposited in Safekeeping
Accounts, Comm. Fut. L. Rep. (CCH) ¶ 7120 (May
23, 1984) (‘‘Interpretation No. 10’’). While
specifically directed to third-party accounts of
pension plans and registered investment
companies, the views expressed in the
interpretation applied equally to any other
customer of an FCM (e.g., an insurance company).
4 See note 12, infra.
PO 00000
1 See
2 See
Frm 00004
Fmt 4703
Sfmt 4703
custodial accounts should not be
banned altogether and that Section
4d(a)(2) should be interpreted to permit
customer funds to be held in such
accounts, subject to standards designed
to ensure the carrying FCM’s right of
immediate access to customer funds.
Since the issuance of Interpretation No.
10, a change in the law governing the
custody of fund assets now allows RICs,
with a limited exception, to post
customer funds with an FCM.5 Because
it is no longer necessary for most RICs
to use third-party custodial accounts to
engage in futures transactions, coupled
with evidence of significant risks that
may impair immediate and unfettered
access by FCMs, the use of third-party
custodial accounts is no longer justified
or appropriate, except in the limited
case where the FCM is precluded from
holding RIC assets.6 Accordingly,
Interpretation No. 10 is being amended
and FCMs will not be viewed as being
in compliance with the requirements of
Section 4d(a)(2) if they deposit, hold, or
maintain margin funds for customer
accounts in third-party custodial
accounts, except that those FCMs not
eligible to hold the assets of their RIC
customers (i.e., due to their affiliation
with the RIC or its adviser) may use
such accounts under conditions
specified herein.
DATES: Effective Date: February 13,
2006.
FOR FURTHER INFORMATION CONTACT:
Carlene S. Kim, Senior Special Counsel,
Division of Clearing and Intermediary
Oversight, Commodity Futures Trading
Commission, 1155 21st Street, NW.,
Washington, DC 20581, telephone: (202)
418–5613.
SUPPLEMENTARY INFORMATION:
I. Background: Section 4d and
Interpretation No. 10
Section 4d(a)(2) of the CEA and
related Commission regulations require
that all funds received by an FCM from
5 SEC Rule 17f–6, adopted 1996, permits RICs to
deposit customer margin directly with FCMs and
futures clearing houses. See Rule 17f–6, 17 CFR
270.17f–6, under the Investment Company Act, 15
U.S.C. 80a.
6 In February 2005, a notice was published in the
Federal Register soliciting comments on a
withdrawal of Interpretation No. 10 (‘‘Notice of
Proposed Withdrawal’’). See 70 FR 5417 (February
2, 2005). In response thereto, the Commission
received comments from the following entities:
Investment Company Institute (‘‘ICI’’); National
Futures Association (‘‘NFA’’); The Joint Audit
Committee (‘‘JAC’’); Futures Industry Association
(‘‘FIA’’); and AIG Series Trust (‘‘AIG’’). ICI and AIG
opposed a withdrawal of Interpretation No. 10;
NFA, JAC, and FIA supported a withdrawal of
Interpretation No. 10 and an outright prohibition of
third-party custodial accounts. The comment letters
are available on the Internet at https://www.cftc.gov/
files/foia/comments05.
E:\FR\FM\11MYN1.SGM
11MYN1
]]>Agencies
[Federal Register Volume 70, Number 90 (Wednesday, May 11, 2005)]
[Notices]
[Pages 24767-24768]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9412]
[[Page 24767]]
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COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS
Designation under the Textile and Apparel Commercial Availability
Provision of the African Growth and Opportunity Act (AGOA), the Andean
Trade Promotion and Drug Eradication Act (ATPDEA), and the U.S. -
Caribbean Basin Trade Partnership Act (CBTPA)
May 5, 2005.
AGENCY: The Committee for the Implementation of Textile Agreements
(CITA)
ACTION: Designation.
-----------------------------------------------------------------------
EFFECTIVE DATE: May 11, 2005.
SUMMARY: CITA has determined that certain ring spun single yarns of
English yarn number 30 and higher of 0.9 denier or finer micro modal
fibers, classified in subheading 5510.11.0000 of the Harmonized Tariff
Schedule of the United States (HTSUS), for use in women's and girls'
knit apparel articles, cannot be supplied by the domestic industry in
commercial quantities in a timely manner under the AGOA, the ATPDEA,
and the CBTPA. CITA hereby designates such apparel articles that are
both cut and sewn or otherwise assembled in one or more eligible
beneficiary sub Saharan African country or in one or more eligible
CBTPA beneficiary country from U.S. formed fabrics containing such
yarns as eligible to enter free of quotas and duties under HTSUS
subheading 9819.11.24 or 9820.11.27, provided all other yarns used in
the referenced apparel articles are U.S. formed and all other fabrics
used in the referenced apparel articles are U.S. formed from yarns
wholly formed in the United States. CITA also hereby designates such
yarns as eligible under HTSUS subheading 9821.11.10, if used in women's
and girls' knit apparel articles sewn or otherwise assembled in an
eligible ATPDEA beneficiary country from U.S. formed fabric containing
such yarns; such apparel containing such yarns shall be eligible to
enter free of quotas and duties under this subheading, provided all
other yarns used in the referenced apparel articles are U.S. formed and
all other fabrics used in the referenced apparel articles are U.S.
formed from yarns wholly formed in the United States. CITA notes that
this designation under the ATPDEA renders women's and girls' knit
apparel articles sewn or otherwise assembled in an eligible ATPDEA
beneficiary country containing such yarn as eligible for quota-free and
duty-free treatment under HTSUS subheading 9821.11.13, provided the
requirements of that subheading are met.
FOR FURTHER INFORMATION CONTACT: Janet Heinzen, Office of Textiles and
Apparel, U.S. Department of Commerce, (202) 482 3400.
SUPPLEMENTARY INFORMATION:
Authority: Section 112(b)(5)(B) of the AGOA; Section
213(b)(2)(A)(v)(II) of the CBTPA, as added by Section 211(a) of the
CBTPA; Sections 1 and 6 of Executive Order No. 13191 of January 17,
2001; Presidential Proclamations 7350 and 7351 of October 4, 2000;
Section 204 (b)(3)(B)(ii) of the ATPDEA, Presidential Proclamation
7616 of October 31, 2002, Executive Order 13277 of November 19,
2002, and the United States Trade Representative's Notice of Further
Assignment of Functions of November 25, 2002.
BACKGROUND:
The commercial availability provisions of the AGOA, the ATPDEA, and
the CBTPA provide for duty free and quota free treatment for apparel
articles that are both cut (or knit to shape) and sewn or otherwise
assembled in one or more beneficiary countries from fabric or yarn that
is not formed in the United States if it has been determined that such
yarns or fabrics cannot be supplied by the domestic industry in
commercial quantities in a timely manner and certain procedural
requirements have been met. In Presidential Proclamations 7350 and 7351
of October 4, 2000 and Presidential Proclamation 7616 of October 31,
2002, the President proclaimed that this treatment would apply to such
apparel articles from fabrics or yarns designated by the appropriate
U.S. government authority in the Federal Register. In Sections 1 and 6
of Executive Order No. 13191 of January 17, 2001, Executive Order 13277
of November 19, 2002, and the United States Trade Representative's
Notice of Further Assignment of Functions of November 25, 2002, CITA
was authorized to determine whether yarns or fabrics cannot be supplied
by the domestic industry in commercial quantities in a timely manner
under the AGOA, the CBTPA, or the ATPDEA.
On December 27, 2004, CITA received a request alleging that certain
ring spun single yarns of English yarn number 30 and higher of 0.9
denier or finer micro modal fibers, described above, for use in women's
and girls' knit apparel articles, cannot be supplied by the domestic
industry in commercial quantities in a timely manner under the AGOA,
the ATPDEA and the CBTPA. It requested that such apparel articles
containing such yarns be eligible for preferential treatment under the
AGOA, the ATPDEA, and the CBTPA. On January 3, 2005, CITA requested
public comment on the petition. See Request for Public Comments on
Commercial Availability Petition under the African Growth and
Opportunity Act (AGOA), the United States - Caribbean Basin Trade
Partnership Act (CBTPA), and the Andean Trade Promotion and Drug
Eradication Act (ATPDEA), 70 FR 80 (January 3, 2005). On January 19,
2005, CITA and the U.S. Trade Representative (USTR) sought the advice
of the Industry Trade Advisory Committee for Textiles and Clothing and
the Industry Trade Advisory Committee for Distribution Services. On
January 19, 2005, CITA and USTR offered to hold consultations with the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate (collectively, the Congressional
Committees). On February 7, 2005, the U.S. International Trade
Commission provided advice on the request.
Based on the information and advice received and its understanding
of the industry, CITA determined that the yarn set forth in the request
cannot be supplied by the domestic industry in commercial quantities in
a timely manner. On February 25, 2005, CITA and USTR submitted a report
to the Congressional Committees that set forth the action proposed, the
reasons for such action, and advice obtained. A period of 60 calendar
days since this report was submitted has expired, as required by the
AGOA, the ATPDEA, and the CBTPA.
CITA hereby designates women's and girls' knit apparel articles
that are both cut and sewn or otherwise assembled in one or more
eligible beneficiary sub Saharan African country or in one or more
eligible CBTPA beneficiary country from U.S. formed fabrics containing
ring spun single yarns of English yarn number 30 and higher of 0.9
denier or finer micro modal fibers, classified in HTSUS subheading
5510.11.0000, as eligible to enter free of quotas and duties under
HTSUS subheading 9819.11.24 or 9820.11.27, provided all other yarns
used in the referenced apparel articles are U.S. formed and all other
fabrics used in the referenced apparel articles are U.S. formed from
yarns wholly formed in the United States, subject to the special rules
for findings and trimmings, certain interlinings and de minimis fibers
and yarns under section 112(d) of the AGOA and section 211 (vii) of the
CBTPA, and that such articles are imported directly into the customs
territory of the United States from an eligible AGOA or CBTPA
beneficiary country.
[[Page 24768]]
CITA also hereby designates such yarns as eligible under HTSUS
subheading 9821.11.10, if used in women's and girls' knit apparel
articles sewn or otherwise assembled in an eligible ATPDEA beneficiary
country from U.S. formed fabric containing such yarns. Such apparel
containing such yarns shall be eligible to enter free of quotas and
duties under this subheading, provided all other yarns used in the
referenced apparel articles are U.S. formed and all other fabrics used
in the referenced apparel articles are U.S. formed from yarns wholly
formed in the United States, subject to the special rules for findings
and trimmings, certain interlinings and de minimis fibers and yarns
under section 204(b)(3)(B)(vi) of the ATPDEA, and that such articles
are imported directly into the customs territory of the United States
from an eligible ATPDEA beneficiary country.
An ``eligible beneficiary sub Saharan African country'' means a
country which the President has designated as a beneficiary sub Saharan
African country under section 506A of the Trade Act of 1974 (19 U.S.C.
2466a), and which has been the subject of a finding, published in the
Federal Register, that the country has satisfied the requirements of
section 113 of the AGOA (19 U.S.C. 3722), resulting in the enumeration
of such country in U.S. note 1 to subchapter XIX of chapter 98 of the
HTSUS.
An ``eligible ATPDEA beneficiary country'' means a country which
the President has designated as an ATPDEA beneficiary country under
section 203(a)(1) of the Andean Trade Preference Act (ATPA) (19 U.S.C.
3202(a)(1)), and which has been the subject of a finding, published in
the Federal Register, that the country has satisfied the requirements
of section 203(c) and (d) of the ATPA (19 U.S.C. 3202(c) and (d)),
resulting in the enumeration of such country in U.S. note 1 to
subchapter XXI of Chapter 98 of the HTSUS.
An ``eligible CBTPA beneficiary country'' means a country which the
President has designated as a CBTPA beneficiary country under section
213(b)(5)(B) of the Caribbean Basin Recovery Act (CBERA) (19 U.S.C.
2703(b)(5)(B)), and which has been the subject of a finding, published
in the Federal Register, that the country has satisfied the
requirements of section 213(b)(4)(A)(ii) of the CBERA (19 U.S.C.
2703(b)(4)(A)(ii)), resulting in the enumeration of such country in
U.S. note 1 to subchapter XX of Chapter 98 of the HTSUS.
D. Michael Hutchinson,
Acting Chairman, Committee for the Implementation of Textile
Agreements.
[FR Doc. 05-9412 Filed 5-10-05; 8:45 am]
BILLING CODE 3510-DS-S
