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]

Download as PDF 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 PO 00000 Frm 00003 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 11MYN1 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 http://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