Imports of Certain Worsted Wool Fabric: Implementation of Tariff Rate Quota Established Under Title V of the Trade and Development Act of 2000., 25774-25778 [05-9494]
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Federal Register / Vol. 70, No. 93 / Monday, May 16, 2005 / Rules and Regulations
Shipments of rough diamonds from
the United States must also meet
additional Department of the Treasury
requirements identified in the Office of
Foreign Assets Control’s Rough
Diamonds Control Regulations, title 31
CFR part 592.
Executive Order 12866
This final rule has been determined to
be not significant for purposes of E.O.
12866.
Executive Order 13132
This final rule does not contain
policies with Federalism implications,
as that term is defined in E.O. 13132.
PART 30—FOREIGN TRADE
STATISTICS
1. The authority citation for part 30 is
revised to read as follows:
I
Authority: 5 U.S.C. 301; 13 U.S.C. 301–
307; 19 U.S.C. 3901–3913; Reorganization
Plan 5 of 1950 (3 CFR 1949–1953 Comp.,
1004); Executive Order 13312, Implementing
the Clean Diamond Act, 68 FR 45151 (31 CFR
Part 592); and Department of Commerce
Organization Order No. 35–2A, July 22, 1987,
as amended, and No. 35–2B, December 20,
1996, as amended.
Subpart E—Electronic Filing
Requirements—Shipper’s Export
Information
2. In § 30.63, add a paragraph (b)(22) to
read as follows:
I
Paperwork Reduction Act
The collection of information required
in this final rule has been approved by
the Office of Management and Budget
under the Paperwork Reduction Act
(PRA). This rule contains a collectionof-information subject to the
requirements of the PRA (44 U.S.C. 3501
et seq.), which has been approved under
OMB control number 0607–0152. The
reporting and recordkeeping burden for
this requirement is estimated at 10 total
burden hours. Notwithstanding any
other provision of law, no person is
required to respond to, nor shall a
person be subject to a penalty for failure
to comply with, a collection of
information subject to the requirements
of the Paperwork Reduction Act (PRA),
unless that collection of information
displays a current, valid Office of
Management and Budget (OMB) control
number.
§ 30.63 Information required to be reported
electronically through AES (data elements).
*
*
*
*
*
(b) * * *
(22) Kimberley Process Certificate
(KPC) number. The unique identifying
number of the KPC issued by the United
States Kimberley Process Authority that
must accompany any export shipment
of rough diamonds. Rough diamonds are
classified under 6-digit Harmonized
System subheadings 7102.10, 7102.21,
and 7102.31. Enter the KPC number in
the license number field excluding the
2-digit U.S. ISO country code.
*
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Dated: May 10, 2005.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. 05–9629 Filed 5–13–05; 8:45 am]
BILLING CODE 3510–07–P
Regulatory Flexibility Act
The Chief Counsel for Regulation of
the Department of Commerce, certified
to the Chief Counsel for Advocacy,
Small Business Administration, under
the provisions of the Regulatory
Flexibility Act (5 U.S.C. 605 (b)), that
this rule will not have a significant
economic impact on a substantial
number of small entities. The factual
basis for this certification was published
with the proposed rule. No comments
were received regarding the economic
impact of this final rule. As a result, no
final regulatory flexibility analysis was
prepared.
List of Subjects in 15 CFR Part 30
Economic statistics, Foreign trade,
Exports, and Reporting and
recordkeeping requirements.
For the reasons set out in the preamble,
title 15 CFR part 30, is amended as
follows:
I
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DEPARTMENT OF COMMERCE
International Trade Administration
15 CFR Parts 335 and 340
Docket No: 050406093-5093-01
RIN 0625-AA67
Imports of Certain Worsted Wool
Fabric: Implementation of Tariff Rate
Quota Established Under Title V of the
Trade and Development Act of 2000.
Department of Commerce,
International Trade Administration.
ACTION: Interim Final Rule, Request for
Comments
AGENCY:
SUMMARY: The Department of Commerce
(‘‘Commerce’’) is amending its
regulation, which governs the
establishment of tariff rate quotas (TRQ)
for a limited quantity of worsted wool
fabrics pursuant to Title V of the Trade
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and Development Act of 2000 (‘‘the
Act’’) as amended by the Trade Act of
2002 and the Miscellaneous Trade Act
of 2004, (Public law 108-429). Section
501(e) of the Act requires the President
to fairly allocate TRQs on the import of
certain worsted wool fabric. Section
504(b) of the Act authorizes the
President to modify the limitations on
worsted wool fabric imports under
TRQs. The President has delegated to
the Secretary of Commerce the authority
to allocate the quantity of imports under
the TRQs (specifically for wool products
under HTS headings, 9902.51.11 and
9902.51.12) and to determine whether
the limitations on the quantity of
imports under the TRQs should be
modified. This interim rule is necessary
to implement the amendment to the Act
included in the Miscellaneous Trade
Act of 2004, (Public law 108-429).
Principally, this document amends the
regulations to specify which HTS
categories may be allocated as TRQs and
to eliminate Commerce’s authority to
modify these quotas.
DATES: This interim final rule is
effective May 16, 2005 To be
considered, written comments must be
received by 5:00 p.m. on July 15, 2005.
ADDRESSES: Comments should be
addressed to: James C. Leonard III,
Deputy Assistant Secretary for Textiles
and Apparel, Room 3001, United States
Department of Commerce, Washington,
D.C. 20230.
FOR FURTHER INFORMATION CONTACT:
Sergio Botero, Office of Textiles and
Apparel, U.S. Department of Commerce,
(202) 482-4058.
SUPPLEMENTARY INFORMATION:
Background:
The Act created Harmonized Tariff
Schedule of the United States (HTS)
heading 9902.51.11 and HTS heading
9902.51.12, which established two
TRQs, providing for temporary
reductions for three years in the import
duties on two categories of worsted
wool fabrics suitable for use in making
suits, suit-type jackets, or trousers: (1)
for worsted wool fabric with average
fiber diameters greater than 18.5
microns, the reduction in duty is
limited to 2,500,000 square meter
equivalents or such other quantity
proclaimed by the President; and (2) for
worsted wool fabric with average fiber
diameters of 18.5 microns or less, the
reduction in duty is limited to 1,500,000
square meter equivalents or such other
quantity proclaimed by the President,
respectively. The Act required that the
TRQs be allocated. More specifically,
the President must ensure that the TRQs
are fairly allocated to persons (including
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Federal Register / Vol. 70, No. 93 / Monday, May 16, 2005 / Rules and Regulations
firms, corporations, or other legal
entities) who cut and sew men’s and
boys’ worsted wool suits, suit-type
jackets and trousers in the United States
and who apply for an allocation based
on the amount of such suits cut and
sewn during the prior calendar year.
The Act required that the President
annually consider requests by U.S.
manufacturers of certain worsted wool
apparel to modify the limitation on the
quantity of fabric that may be imported
under the TRQs, and granted the
President the authority to proclaim
modifications to the limitations. In
determining whether to modify the
limitations, the President must consider
specified U.S. market conditions with
respect to worsted wool fabric and
worsted wool apparel.
In Presidential Proclamation 7383, of
December 1, 2000, the President
authorized the Secretary of Commerce:
(1) to allocate the imports of worsted
wool fabrics under the TRQs; (2) to
annually consider requests from
domestic manufacturers of worsted
wool apparel to modify the limitation
on the quantity of worsted wool fabrics
that may be imported under the TRQs;
(3) to determine whether the limitations
on the quantity of imports of worsted
wool fabrics under the TRQs should be
modified and to recommend to the
President that appropriate modifications
be made; and (4) to issue regulations to
implement relevant provisions of the
Act.
On December 3, 2004, the Act was
amended pursuant to the Miscellaneous
Trade Act of 2004, Public Law 108-429.
The amendment altered the HTS
categories of worsted wool eligible for
the TRQs under the Act. Specifically,
the amendment renumbered HTS
heading 9902.51.12 to HTS heading
9902.51.15. The Miscellaneous Trade
Act of 2004 increased to 5 million
square meters from 3.5 million square
meters the TRQ for worsted wool fabrics
with average fiber diameters of 18.5
microns or less (HTS 9902.51.15,
previously numbered HTS 9902.51.12);
and increased to 5.5 million square
meters from 4.5 million square meters
the TRQ for the worsted wool fabrics
with average fiber diameters greater
than 18.5 microns (9902.51.11).
The amendment also authorized
Commerce to allocate a new HTS
category, HTS 9902.51.16. This HTS
refers to worsted wool fabric with
average fiber diameters of 18.5 microns
or less. The amendment further
distinguished that HTS 9902.51.16 is for
worsted wool for the benefit of persons
(including firms, corporations, or other
legal entities) who weave worsted wool
fabric in the United States.
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Finally, the Miscellaneous Trade Act
of 2004, Public Law 108-429 repealed
Commerce’s authorization to determine
whether the limitations on the quantity
of imports of worsted wool fabrics
under the TRQs should be modified and
to recommend to the President that
appropriate modifications be made.
Part 335
This interim final rule implements the
amendments to the Act by revising the
language of 15 CFR 335 to indicate that
HTS category 9902.51.12 has been
renumbered to 9902.51.15. In addition,
for further clarification of the definition
of 9902.51.15, this HTS heading has
been revised to include only worsted
wool fabric suitable for use in making
suits, suit type jackets, or trousers with
average fiber diameters of 18.5 microns
or less; for the benefit of persons
(including firms, corporations, or other
legal entities) who cut and sew men’s
and boy’s wool suits, suit-type jackets
and trousers in the United States.
Former HTS heading 9902.51.12 was
simply defined as worsted wool fabric
suitable for use in making suits, suit
type jackets, or trousers with average
fiber diameters of 18.5 microns or less.
Although the regulation indicated in
other sections that for both HTS
headings 9902.51.11 and former
9902.51.12 that the fabric was for the
benefit of persons (including firms,
corporations, or other legal entities) who
cut and sew men’s and boy’s wool suits,
suit-type jackets and trousers in the
United States, the definition did not
specifically include this language.
Accordingly, in order to clarify the
distinction between HTS headings
9902.51.11 and 9902.51.15, which is for
the benefit of persons who cut and sew
men’s and boy’s wool suits and suit-like
jackets and trousers, and new HTS
heading 9902.51.16, which is for the
benefit of persons who weave wool
fabric suitable for use in men’s and
boy’s suits, this rule has included
additional language in the definition of
HTS headings 9902.51.11 and
9902.51.15. The allocation process for
HTS 9902.51.11 and 9902.51.15 remains
the same.
Pursuant to current regulations,
allocation of TRQs for 9902.51.11 and
9902.51.15 is limited to persons who cut
and sew three types of garments during
the calendar year of the application: (1)
men’s and boys’ worsted wool suits; (2)
men’s and boys’ worsted wool suit-type
jackets; and (3) men’s and boys’ worsted
wool trousers. Only manufacturers of all
three types of garments are eligible for
an allocation. Pursuant to the current
regulations that allocation be based on
the men’s and boys’ worsted wool suits
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cut and sewn during the prior calendar
year, in allocating the TRQs, only
production of men’s and boys’ worsted
wool suits will be considered. To be
considered, a worsted wool garment
must contain at least 85 percent by
weight worsted wool, which is
consistent with the definitions of wool
fiber and fabric in the Act and the
Conference Report.
In order to fairly allocate the TRQs,
manufacturers that utilize imported
worsted wool fabric in production will
be provided a greater allocation than
manufacturers that utilize domestic
worsted wool fabric. This allows the
manufacturers that will actually use the
imported fabric that is subject to the
TRQs to obtain a relatively greater share
of the fabric, as compared to
manufacturers that use only domestic
fabric. For the purpose of calculating
allocations, suit production are
increased by the ratio of imported fabric
used to total fabric used in the
production of men’s and boys’ suits. For
example, if an applicant uses imported
fabric for 30 percent of its worsted wool
suits production, that applicant’s suit
production level will be increased by 30
percent for purposes of calculating the
applicant’s allocation.
In addition, this interim final rule
amends the sections 335.3(c) and (d)(2)
to establish the allocation process for
HTS category 9902.51.16. For allocation
of TRQ for HTS 9902.51.16, the
applicant is required to submit the
quantity and value of the Worsted Wool
Fabric woven in the United States. This
data must indicate actual production
(not estimates) of Worsted Wool Fabric
containing at least 85 percent worsted
wool fabric by weight with an average
diameter of 18.5 microns or less. For
applications for the 2005 Tariff Rate
Quota year, production data must be
provided for full calendar year 2004. For
allocations of Tariff Rate Quota years
after 2005, production data must be
provided for the first six months of the
year of the application. This data will be
annualized for the purpose of making
Tariff Rate Quota allocations. In order to
ensure that the TRQs are fully utilized,
a licensee that will not import the full
quantity allocated to it is required to
surrender the unused allocation to the
Department for reallocation.
Section 335.4 is amended to state that
for HTS 9902.51.16, the Tariff Rate
Quota will be allocated based on an
applicant’s Worsted Wool Fabric
production, to be consistent with
current regulations. The allocation
process for HTS 9902.51.16 is
essentially the same as that for HTS
9902.51.11 and 9902.51.15 with the
small distinction that the allocation
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Federal Register / Vol. 70, No. 93 / Monday, May 16, 2005 / Rules and Regulations
process in 9902.51.11 and 9902.51.15
takes into consideration the amount of
imported fabric used by the applicant
while the allocation process for
9909.51.16 does not because this factor
is inapplicable to this HTS.
In addition, Commerce amends §
335.6(e) to change the manner in which
the unused allocation will be
determined to take into consideration
the extension of the TRQs from 2005 to
2007. Under the previous scheme, a
Licensee whose unused allocation in
two consecutive Tariff Rate Quota Years
exceeds five percent of the quantity set
forth in its license would have its
allocation reduced in the subsequent
Tariff Rate Quota Year by a quantity
equal to 50 percent of its unused
allocation from the prior year. Under the
new scheme, a Licensee whose unused
allocation in two or more consecutive
Tariff Rate Quota Years exceeds five
percent of the quantity set forth in its
license shall have its allocation reduced
in the subsequent Tariff Rate Quota Year
by a quantity equal to 50 percent of its
unused allocation from the prior year.
This change was made as a result of the
extension of the TRQs from 2005 to
2007. The original TRQ was, by statute,
valid for three years only (2001-2003)
therefore the reduction of the TRQ due
to unused allocation could only be
applied twice during the three year
period. However, because the program
has been extended to 2007, companies
may now fail to use 95 percent of their
TRQ in more than two consecutive
years. Therefore, Commerce makes this
change to clarify that the reduction in
their allocation during a third, fourth or
fifth consecutive year will be 50 percent
of the unused allocation.
Part 340
Because the Act repealed Commerce’s
authorization to determine whether the
limitations on the quantity of imports of
worsted wool fabrics under the TRQs
should be modified and to recommend
to the President that appropriate
modifications be made, Commerce
removes 15 CFR part 340 in its entirety
and removes 15 CFR 335.7 to eliminate
the modification provisions.
Allocation of HTS 9902.21.11,
9902.21.15, and 9902.51.16
Section 501(e) of the Act requires that
the worsted wool fabrics imported
under the TRQs be ‘‘fairly allocated’’ to
persons ‘‘who cut and sew men’s and
boys’ worsted wool suits and suit-like
jackets and trousers in the United States
and who apply for an allocation based
on the amount of such suits cut and
sewn during the prior calendar year.’’
As the Joint Explanation of the
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Committee of Conference (‘‘Conference
Report’’) makes clear, Congress intended
the TRQs to address the duty situation
faced by U.S. wool suit manufacturers,
in which worsted wool fabric is subject
to considerably higher duties than
worsted wool suits, a situation
compounded by reductions in tariffs on
wool suits under free trade agreements
with Canada and Mexico.
The Department, promptly upon
promulgation of these regulations,
intends to allocate the increased TRQ
amounts for 9902.21.11 and 9902.21.15.
The Department will also begin the
process of soliciting applications for a
license for an allocation of the 2005
TRQs on worsted wool fabrics for
9902.51.16. In following years,
applications will be solicited on or
around August 31, in order to allow
companies to be informed of their
allocation as early as possible while still
allowing an allocation based on
previous year production. The
Department intends to make its
determination regarding the allocation
on or about November 1 and to issue
licenses no later than December 31 of
the year preceding the tariff rate quota
year.
Pursuant to regulations, each of the
three TRQs will be allocated based on
previous year production. The products
under HTS 9902.51.16 will be allocated
based on production of this type of
worsted wool fabric, while the tariff rate
quota on worsted wool fabric with
average fiber diameters of 18.5 microns
or less (HTS 9902.51.15) will be
allocated based on production utilizing
this type of worsted wool. We will also
continue to allocate the tariff rate quota
on worsted wool fabric with average
fiber diameters greater than 18.5
microns (HTS 9902.51.11) based on
production utilizing this type of worsted
wool.
Classification
Administrative Procedure Act: The
Department of Commerce finds good
cause, under 5 USC 553(b)(B), to waive
the requirement to provide prior notice
and opportunity for public comment as
such requirement is impracticable and
contrary to the public interest. The new
HTS categories and allocation system
must be implemented as soon as
possible to allow TRQ recipients to
import their products under the new
HTS categories and allocation system.
If the new HTS category and
allocation system are not implemented
immediately, TRQ recipients will be
required to file amended entries with
Customs and Border Protection (CBP) in
order to get the duty benefit. Amended
entries are costly and time consuming.
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To obtain the duty benefits under a TRQ
from a license issued after wool fabric
has cleared CBP, a Licensee would need
to request its brokers and other
suppliers to file amended entries on its
behalf with CBP in order to obtain the
duty rebates applicable to the TRQ
license. This process is time consuming
and costly as additional staff would
need to be hired and extra hours
devoted to research and file amended
entries. Brokers would need to research
thousand of shipments (an average of
4,800 shipments per year were entered
under the wool TRQ program from 2001
to 2004), imported into several different
ports, in order to file amended entries.
Brokers and other suppliers do not
always have the resources and
personnel in order to investigate
individual shipments for individual
companies to file entries retroactively.
The average cost charged by brokers and
suppliers for researching shipments
range from $100 to $200 to file amended
entries, which would in effect nullify
the duty benefit for small shipments (50
square meters) which make up the bulk
of the entries for several licensees.
For the same reasons above, there is
good cause to find under 5 U.S.C.
553(d)(3) to waive the 30-day delay in
effectiveness. As stated above, the
process of researching shipments to file
amended entries is time consuming and
costly. If this regulation is not
implemented immediately, the costs
incurred by TRQ recipients would in
effect nullify any duty benefits,
particularly for those TRQ recipients
who have small shipments that make up
the entries for several licensees.
While these regulations will be
effective upon publication, the
Department of Commerce hereby solicits
comments on these interim regulations
and will amend them in final
regulations if appropriate. The
Department is particularly interested in
comments concerning any impact these
regulations might have on small-ormedium sized businesses.
Regulatory Flexibility Act: Because
notice and comment are not required
under 5 U.S.C. 553 or any other law, the
analytical requirements of 5 U.S.C. 601
et seq. are not applicable and have not
been prepared.
Executive Order 12866: This rule has
been determined to be not significant
under Executive Order 12866.
Paperwork Reduction Act:
This proposed rule contains a
collection-of-information requirement
subject to the Paperwork Reduction Act
(PRA) which has received approval by
OMB under control number 0625-0240.
Notwithstanding any other provision of
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the law, no person is required to
respond to, nor shall any person be
subject to a penalty for failure to comply
with, a collection of information subject
to the requirements of the PRA, unless
that collection of information displays a
currently valid OMB Control Number.
I
Dated: May 5, 2005.
Joseph A. Spetrini
Acting Assistant Secretary for Import
Administration.
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For the reasons stated, 15 CFR. chapter
III is amended to read as follows:
I
PART 335—IMPORTS OF WORSTED
WOOL FABRIC
1. The Authority citation for part 335
is revised to read as follows:
I
Authority: Title V of the Trade and
Development Act of 2000 (Public Law No.
106-200) as amended by Trade Act of 2002
and the Miscellaneous Trade Act of 2004
(Public Law 108-429), Presidential
Proclamation No. 7383 (December 1, 2000).
I
2. §335.1 is revised to read as follows:
§335.1
Purpose.
This part sets forth regulations
regarding the issuance and effect of
licenses for the allocation of Worsted
Wool Fabric under the TRQs established
by Section 501 of the Act, including the
new HTS categories 9902.51.15 and
9902.51.16 added by the amended Act.
I 3. §335.2 is amended by revising the
definition of ‘‘Tariff Rate Quota or
Quotas’’ to read as follows:
§335.2
Definitions.
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Tariff Rate Quota or Quotas means
the temporary duty reduction provided
under Section 501 of the Act for limited
quantities of fabrics of worsted wool
with average diameters greater than 18.5
micron, certified by the importer as
suitable for use in making suits, suittype jackets, or trousers (HTS heading
9902.51.11), and for limited quantities
of fabrics of worsted wool with average
diameters of 18.5 microns or less,
certified by the importer as suitable for
use in making suits, suit-type jackets, or
trousers for the benefit of persons
(including firms, corporations, or other
legal entities) who cut and sew men’s
and boy’s wool suits, suit-type jackets
and trousers in the United States (HTS
heading 9902.51.15), and worsted wool
fabric with average fiber diameters of
18.5 microns or less for the benefit of
persons (including firms, corporations,
or other legal entities) who weave
worsted wool fabric in the United States
(HTS 9902.51.16).
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4. §335.3 is amended by removing
paragraph (d)(3), redesignating
paragraphs (d)(4) and (d)(5) as (d)(3) and
(d)(4) respectively, and by revising
paragraphs (c) and (d)(2) as follows:
§335.3
Applications to receive allocations.
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(c) For applying for TRQs 9902.51.11
or 9902.51.15 during the calendar year
of the date of the application, an
applicant must have cut and sewed in
the United States all three of the
following apparel products: Worsted
Wool Suits, Worsted Wool Suit-Type
Jackets, and Worsted Wool Trousers.
The applicant may either have cut and
sewn these products on its own behalf
or had another person cut and sew the
products on the applicant’s behalf,
provided the applicant owned the fabric
at the time it was cut and sewn. The
application must contain a statement to
this effect. For applying for TRQ
9902.51.16 during the calendar year of
the date of the application, an applicant
must have woven in the United States
worsted wool fabrics with average fiber
diameters of 18.5 microns or less,
suitable for use in making suits, suittype jackets, and trousers. The
application must contain a statement to
this effect.
(d) * * *
(2)(i) Production. Applicants for TRQs
9902.51.11 and 9902.51.15 must provide
the name and address of each plant or
location where Worsted Wool Suits,
Worsted Wool Suit-Type Jackets, and
Worsted Wool Trousers were cut and
sewn or woven by the applicant and the
name and address of all plants or
locations that cut and sewed such
products on behalf of the applicant.
Production data, including the
following: the quantity and value of the
Worsted Wool Suits, Worsted Wool
Suit-Type Jackets, and Worsted Wool
Trousers cut and sewn in the United
States by applicant, or on behalf of
applicant, from fabric owned by
applicant. This data must indicate
actual production (not estimates) of
Worsted Wool Suits, Worsted Wool
Suit-Type Jackets and Worsted Wool
Trousers containing at least 85 percent
worsted wool fabric by weight with an
average diameter of 18.5 microns or less.
This data must also indicate actual
production (not estimates) of Worsted
Wool Suits, Worsted Wool Suit-Type
Jackets and Worsted Wool Trousers
containing at least 85 percent worsted
wool fabric by weight with average
diameter greater than 18.5 microns.
Production data must be provided for
the first six months of the year of the
application. This data will be
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25777
annualized for the purpose of making
Tariff Rate Quota allocations.
(ii) Applicants for TRQ 9902.51.16
must provide the name and address of
each plant or location where Worsted
Wool Fabric was woven by the
applicant. The quantity and value of the
Worsted Wool Fabric woven in the
United States by applicant. This data
must indicate actual production (not
estimates) of Worsted Wool Fabric
containing at least 85 percent worsted
wool fabric by weight with an average
diameter of 18.5 microns or less. For
applications for the 2005 Tariff Rate
Quota year, production data must be
provided for full calendar year 2004. For
allocations of Tariff Rate Quota years
after 2005, production data must be
provided for the first six months of the
year of the application. This data will be
annualized for the purpose of making
Tariff Rate Quota allocations.
*
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I 5. Section 335.4 is amended by
revising paragraphs (a) and (b) as
follows:
§335.4
Allocation.
(a) For HTS 9902.51.11 and HTS
9902.51.15 each Tariff Rate Quota will
be allocated separately. Allocation will
be based on an applicant’s Worsted
Wool Suit production, on a weighted
average basis, and the proportion of
imported Worsted Wool Fabric
consumed in the production of Worsted
Wool Suits. In regards to HTS
9902.51.16 the Tariff Rate Quota will be
allocated based on an applicant’s
Worsted Wool Fabric production, on a
weighted average basis.
(b) For the purpose of calculating
allocations for HTS 9902.51.11 and HTS
9902.51.15 only, Worsted Wool Suit
production will be increased by the
percentage of imported fabric consumed
in the production of Worsted Wool Suits
to total fabric consumed in this
production. For example, if an applicant
uses 30 percent imported fabric in the
production of Worsted Wool Suits, that
applicant’s production level will be
increased by 30 percent.
*
*
*
*
*
I 6. Section 335.6 is amended by
revising paragraph (e) as follows:
§335.6 Surrender, reallocation and license
utilization requirement.
*
*
*
*
*
(e) A Licensee whose unused
allocation in a Tariff Rate Quota Year
exceeds five percent of the quantity set
forth in its license shall be subject to
having its allocation reduced in the
subsequent Tariff Rate Quota Year. The
subsequent Tariff Rate Quota Year
E:\FR\FM\16MYR1.SGM
16MYR1
25778
Federal Register / Vol. 70, No. 93 / Monday, May 16, 2005 / Rules and Regulations
allocation will be reduced from the
quantity such Licensee would otherwise
have received by a quantity equal to 25
percent of its unused allocation from the
prior year. A Licensee whose unused
allocation in two or more consecutive
Tariff Rate Quota Years exceeds five
percent of the quantity set forth in its
license shall have its allocation reduced
in the subsequent Tariff Rate Quota Year
by a quantity equal to 50 percent of its
unused allocation from the prior year.
*
*
*
*
*
§ 335.7
I
[Removed]
7. Remove section 355.7.
PART 340—MODIFICATION OF THE
TARIFF RATE QUOTA LIMITATION ON
WORSTED WOOL FABRIC IMPORTS.
[Removed]
I
8. Remove entire part 340.
[FR Doc.05–9494 Filed 5–13–05; 8:45 am]
BILLING CODE 3510–DSS
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[CGD11–05–004]
RIN 1625–AA08
Special Local Regulation; KFOG
‘‘KaBoom’’ Fireworks Display, San
Francisco Bay, CA
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
SUMMARY: The Coast Guard is
establishing special local regulations in
the navigable waters of San Francisco
Bay for the loading, transport, and
launching of fireworks used during the
KFOG ‘‘KaBoom’’ Fireworks Display to
be held on May 21, 2005. These special
local regulations are intended to
prohibit vessels and people from
entering into or remaining within the
regulated areas in order to ensure the
safety of participants and spectators.
DATES: This rule is effective from 9 a.m.
on May 19, 2005, to 10 p.m. on May 21,
2005.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket [CGD–11 05–
004] and are available for inspection or
copying at Coast Guard Marine Safety
Office San Francisco Bay, Coast Guard
Island, Alameda, California, 94501,
between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays.
VerDate jul<14>2003
16:28 May 13, 2005
Jkt 205001
FOR FURTHER INFORMATION CONTACT:
Ensign Trevor Parra, U.S. Coast Guard
Marine Safety Office San Francisco Bay,
at (510) 437–5873.
SUPPLEMENTARY INFORMATION:
Regulatory Information
We did not publish a notice of
proposed rulemaking (NPRM) for this
regulation. Under 5 U.S.C. 553(b)(3)(B),
the Coast Guard finds that good cause
exists for not publishing an NPRM.
Logistical details surrounding the event
were not finalized and presented to the
Coast Guard in time to draft and publish
an NPRM. As such, the event would
occur before the rulemaking process was
complete. Because of the dangers posed
by the pyrotechnics used in this
fireworks display, special local
regulations are necessary to provide for
the safety of event participants,
spectator craft, and other vessels
transiting the event area. For the safety
concerns noted, it is in the public
interest to have these regulations in
effect during the event.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective less than 30
days after publication in the Federal
Register. Because of the dangers posed
by the pyrotechnics used in this
fireworks display it is necessary to make
it effective as soon as possible.
Background and Purpose
The San Francisco Radio Station
KFOG is sponsoring a brief fireworks
display on May 21, 2005 in the waters
of San Francisco Bay near Pier 30. The
fireworks display is meant for
entertainment purposes in support of
KFOG’s annual festival in San
Francisco. These special local
regulations are being issued to establish
a temporary regulated area in San
Francisco Bay around the fireworks
launch barge during the loading of the
pyrotechnics, during the transit of the
barge to the display location, and during
the fireworks display. This regulated
area around the launch barge is
necessary to protect spectators, vessels,
and other property from the hazards
associated with the pyrotechnics on the
fireworks barge.
Discussion of Rule
The Coast Guard is establishing
temporary special local regulations on
specified waters off of the San Francisco
waterfront. During the loading of the
fireworks barge, while the barge is being
towed to the display location, and until
the start of the fireworks display, the
special local regulations will apply to
the navigable waters around and under
the fireworks barge within a radius of
PO 00000
Frm 00026
Fmt 4700
Sfmt 4700
100 feet. During the 20-minute fireworks
display, the area to which these special
local regulations apply will increase in
size to encompass the navigable waters
around and under the fireworks barge
within a radius of 1,000 feet. Loading of
the pyrotechnics onto the fireworks
barge is scheduled to commence at
9 a.m. on May 19, 2005, and will take
place at Pier 50 in San Francisco.
Towing of the barge from Pier 50 to the
display location is scheduled to take
place on May 21, 2005. During the
fireworks display, scheduled to
commence at 9 p.m. on May 21, 2005,
the fireworks barge will be located
approximately 1,000 feet off of Pier 30
in position 37°47.35′ N, 122°22.86′ W.
The effect of the temporary special
local regulations will be to restrict
general navigation in the vicinity of the
fireworks barge from the time the
fireworks are loaded at Pier 50, during
the transit of the fireworks barge, and
until the conclusion of the scheduled
display. Except for persons or vessels
authorized by the Coast Guard Patrol
Commander, no person or vessel may
enter or remain in the regulated area.
These regulations are needed to keep
spectators and vessels a safe distance
away from the fireworks barge to ensure
the safety of participants, spectators,
and transiting vessels.
Pursuant to 33 U.S.C. 1236, persons
violating these special local regulations
may be liable as follows: Suspension or
revocation of the license of a licensed
officer for incompetence or misconduct;
civil penalty of $6,500 for any person in
charge of the navigation of a vessel other
than a licensed officer; civil penalty of
$6,500 for the owner of a vessel
(including any corporate officer of a
corporation owning the vessel) who is
actually on board; and $2,750 for any
other person.
Regulatory Evaluation
This rule is not a ‘‘significant
regulatory action’’ under section 3(f) of
Executive Order 12866, Regulatory
Planning and Review, and does not
require an assessment of potential costs
and benefits under section 6(a)(3) of that
Order. The Office of Management and
Budget has not reviewed it under that
Order. It is not ‘‘significant’’ under the
regulatory policies and procedures of
the Department of Homeland Security
(DHS).
The entities most likely to be affected
are pleasure craft engaged in
recreational activities. Although this
regulation prevents traffic from
transiting a portion of San Francisco
Bay during the event, the effect of this
regulation will not be significant due to
the small size and limited duration of
E:\FR\FM\16MYR1.SGM
16MYR1
]]>Agencies
[Federal Register Volume 70, Number 93 (Monday, May 16, 2005)]
[Rules and Regulations]
[Pages 25774-25778]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9494]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
15 CFR Parts 335 and 340
Docket No: 050406093-5093-01
RIN 0625-AA67
Imports of Certain Worsted Wool Fabric: Implementation of Tariff
Rate Quota Established Under Title V of the Trade and Development Act
of 2000.
AGENCY: Department of Commerce, International Trade Administration.
ACTION: Interim Final Rule, Request for Comments
-----------------------------------------------------------------------
SUMMARY: The Department of Commerce (``Commerce'') is amending its
regulation, which governs the establishment of tariff rate quotas (TRQ)
for a limited quantity of worsted wool fabrics pursuant to Title V of
the Trade and Development Act of 2000 (``the Act'') as amended by the
Trade Act of 2002 and the Miscellaneous Trade Act of 2004, (Public law
108-429). Section 501(e) of the Act requires the President to fairly
allocate TRQs on the import of certain worsted wool fabric. Section
504(b) of the Act authorizes the President to modify the limitations on
worsted wool fabric imports under TRQs. The President has delegated to
the Secretary of Commerce the authority to allocate the quantity of
imports under the TRQs (specifically for wool products under HTS
headings, 9902.51.11 and 9902.51.12) and to determine whether the
limitations on the quantity of imports under the TRQs should be
modified. This interim rule is necessary to implement the amendment to
the Act included in the Miscellaneous Trade Act of 2004, (Public law
108-429). Principally, this document amends the regulations to specify
which HTS categories may be allocated as TRQs and to eliminate
Commerce's authority to modify these quotas.
DATES: This interim final rule is effective May 16, 2005 To be
considered, written comments must be received by 5:00 p.m. on July 15,
2005.
ADDRESSES: Comments should be addressed to: James C. Leonard III,
Deputy Assistant Secretary for Textiles and Apparel, Room 3001, United
States Department of Commerce, Washington, D.C. 20230.
FOR FURTHER INFORMATION CONTACT: Sergio Botero, Office of Textiles and
Apparel, U.S. Department of Commerce, (202) 482-4058.
SUPPLEMENTARY INFORMATION:
Background:
The Act created Harmonized Tariff Schedule of the United States
(HTS) heading 9902.51.11 and HTS heading 9902.51.12, which established
two TRQs, providing for temporary reductions for three years in the
import duties on two categories of worsted wool fabrics suitable for
use in making suits, suit-type jackets, or trousers: (1) for worsted
wool fabric with average fiber diameters greater than 18.5 microns, the
reduction in duty is limited to 2,500,000 square meter equivalents or
such other quantity proclaimed by the President; and (2) for worsted
wool fabric with average fiber diameters of 18.5 microns or less, the
reduction in duty is limited to 1,500,000 square meter equivalents or
such other quantity proclaimed by the President, respectively. The Act
required that the TRQs be allocated. More specifically, the President
must ensure that the TRQs are fairly allocated to persons (including
[[Page 25775]]
firms, corporations, or other legal entities) who cut and sew men's and
boys' worsted wool suits, suit-type jackets and trousers in the United
States and who apply for an allocation based on the amount of such
suits cut and sewn during the prior calendar year.
The Act required that the President annually consider requests by
U.S. manufacturers of certain worsted wool apparel to modify the
limitation on the quantity of fabric that may be imported under the
TRQs, and granted the President the authority to proclaim modifications
to the limitations. In determining whether to modify the limitations,
the President must consider specified U.S. market conditions with
respect to worsted wool fabric and worsted wool apparel.
In Presidential Proclamation 7383, of December 1, 2000, the
President authorized the Secretary of Commerce: (1) to allocate the
imports of worsted wool fabrics under the TRQs; (2) to annually
consider requests from domestic manufacturers of worsted wool apparel
to modify the limitation on the quantity of worsted wool fabrics that
may be imported under the TRQs; (3) to determine whether the
limitations on the quantity of imports of worsted wool fabrics under
the TRQs should be modified and to recommend to the President that
appropriate modifications be made; and (4) to issue regulations to
implement relevant provisions of the Act.
On December 3, 2004, the Act was amended pursuant to the
Miscellaneous Trade Act of 2004, Public Law 108-429. The amendment
altered the HTS categories of worsted wool eligible for the TRQs under
the Act. Specifically, the amendment renumbered HTS heading 9902.51.12
to HTS heading 9902.51.15. The Miscellaneous Trade Act of 2004
increased to 5 million square meters from 3.5 million square meters the
TRQ for worsted wool fabrics with average fiber diameters of 18.5
microns or less (HTS 9902.51.15, previously numbered HTS 9902.51.12);
and increased to 5.5 million square meters from 4.5 million square
meters the TRQ for the worsted wool fabrics with average fiber
diameters greater than 18.5 microns (9902.51.11).
The amendment also authorized Commerce to allocate a new HTS
category, HTS 9902.51.16. This HTS refers to worsted wool fabric with
average fiber diameters of 18.5 microns or less. The amendment further
distinguished that HTS 9902.51.16 is for worsted wool for the benefit
of persons (including firms, corporations, or other legal entities) who
weave worsted wool fabric in the United States.
Finally, the Miscellaneous Trade Act of 2004, Public Law 108-429
repealed Commerce's authorization to determine whether the limitations
on the quantity of imports of worsted wool fabrics under the TRQs
should be modified and to recommend to the President that appropriate
modifications be made.
Part 335
This interim final rule implements the amendments to the Act by
revising the language of 15 CFR 335 to indicate that HTS category
9902.51.12 has been renumbered to 9902.51.15. In addition, for further
clarification of the definition of 9902.51.15, this HTS heading has
been revised to include only worsted wool fabric suitable for use in
making suits, suit type jackets, or trousers with average fiber
diameters of 18.5 microns or less; for the benefit of persons
(including firms, corporations, or other legal entities) who cut and
sew men's and boy's wool suits, suit-type jackets and trousers in the
United States. Former HTS heading 9902.51.12 was simply defined as
worsted wool fabric suitable for use in making suits, suit type
jackets, or trousers with average fiber diameters of 18.5 microns or
less. Although the regulation indicated in other sections that for both
HTS headings 9902.51.11 and former 9902.51.12 that the fabric was for
the benefit of persons (including firms, corporations, or other legal
entities) who cut and sew men's and boy's wool suits, suit-type jackets
and trousers in the United States, the definition did not specifically
include this language. Accordingly, in order to clarify the distinction
between HTS headings 9902.51.11 and 9902.51.15, which is for the
benefit of persons who cut and sew men's and boy's wool suits and suit-
like jackets and trousers, and new HTS heading 9902.51.16, which is for
the benefit of persons who weave wool fabric suitable for use in men's
and boy's suits, this rule has included additional language in the
definition of HTS headings 9902.51.11 and 9902.51.15. The allocation
process for HTS 9902.51.11 and 9902.51.15 remains the same.
Pursuant to current regulations, allocation of TRQs for 9902.51.11
and 9902.51.15 is limited to persons who cut and sew three types of
garments during the calendar year of the application: (1) men's and
boys' worsted wool suits; (2) men's and boys' worsted wool suit-type
jackets; and (3) men's and boys' worsted wool trousers. Only
manufacturers of all three types of garments are eligible for an
allocation. Pursuant to the current regulations that allocation be
based on the men's and boys' worsted wool suits cut and sewn during the
prior calendar year, in allocating the TRQs, only production of men's
and boys' worsted wool suits will be considered. To be considered, a
worsted wool garment must contain at least 85 percent by weight worsted
wool, which is consistent with the definitions of wool fiber and fabric
in the Act and the Conference Report.
In order to fairly allocate the TRQs, manufacturers that utilize
imported worsted wool fabric in production will be provided a greater
allocation than manufacturers that utilize domestic worsted wool
fabric. This allows the manufacturers that will actually use the
imported fabric that is subject to the TRQs to obtain a relatively
greater share of the fabric, as compared to manufacturers that use only
domestic fabric. For the purpose of calculating allocations, suit
production are increased by the ratio of imported fabric used to total
fabric used in the production of men's and boys' suits. For example, if
an applicant uses imported fabric for 30 percent of its worsted wool
suits production, that applicant's suit production level will be
increased by 30 percent for purposes of calculating the applicant's
allocation.
In addition, this interim final rule amends the sections 335.3(c)
and (d)(2) to establish the allocation process for HTS category
9902.51.16. For allocation of TRQ for HTS 9902.51.16, the applicant is
required to submit the quantity and value of the Worsted Wool Fabric
woven in the United States. This data must indicate actual production
(not estimates) of Worsted Wool Fabric containing at least 85 percent
worsted wool fabric by weight with an average diameter of 18.5 microns
or less. For applications for the 2005 Tariff Rate Quota year,
production data must be provided for full calendar year 2004. For
allocations of Tariff Rate Quota years after 2005, production data must
be provided for the first six months of the year of the application.
This data will be annualized for the purpose of making Tariff Rate
Quota allocations. In order to ensure that the TRQs are fully utilized,
a licensee that will not import the full quantity allocated to it is
required to surrender the unused allocation to the Department for
reallocation.
Section 335.4 is amended to state that for HTS 9902.51.16, the
Tariff Rate Quota will be allocated based on an applicant's Worsted
Wool Fabric production, to be consistent with current regulations. The
allocation process for HTS 9902.51.16 is essentially the same as that
for HTS 9902.51.11 and 9902.51.15 with the small distinction that the
allocation
[[Page 25776]]
process in 9902.51.11 and 9902.51.15 takes into consideration the
amount of imported fabric used by the applicant while the allocation
process for 9909.51.16 does not because this factor is inapplicable to
this HTS.
In addition, Commerce amends Sec. 335.6(e) to change the manner in
which the unused allocation will be determined to take into
consideration the extension of the TRQs from 2005 to 2007. Under the
previous scheme, a Licensee whose unused allocation in two consecutive
Tariff Rate Quota Years exceeds five percent of the quantity set forth
in its license would have its allocation reduced in the subsequent
Tariff Rate Quota Year by a quantity equal to 50 percent of its unused
allocation from the prior year. Under the new scheme, a Licensee whose
unused allocation in two or more consecutive Tariff Rate Quota Years
exceeds five percent of the quantity set forth in its license shall
have its allocation reduced in the subsequent Tariff Rate Quota Year by
a quantity equal to 50 percent of its unused allocation from the prior
year. This change was made as a result of the extension of the TRQs
from 2005 to 2007. The original TRQ was, by statute, valid for three
years only (2001-2003) therefore the reduction of the TRQ due to unused
allocation could only be applied twice during the three year period.
However, because the program has been extended to 2007, companies may
now fail to use 95 percent of their TRQ in more than two consecutive
years. Therefore, Commerce makes this change to clarify that the
reduction in their allocation during a third, fourth or fifth
consecutive year will be 50 percent of the unused allocation.
Part 340
Because the Act repealed Commerce's authorization to determine
whether the limitations on the quantity of imports of worsted wool
fabrics under the TRQs should be modified and to recommend to the
President that appropriate modifications be made, Commerce removes 15
CFR part 340 in its entirety and removes 15 CFR 335.7 to eliminate the
modification provisions.
Allocation of HTS 9902.21.11, 9902.21.15, and 9902.51.16
Section 501(e) of the Act requires that the worsted wool fabrics
imported under the TRQs be ``fairly allocated'' to persons ``who cut
and sew men's and boys' worsted wool suits and suit-like jackets and
trousers in the United States and who apply for an allocation based on
the amount of such suits cut and sewn during the prior calendar year.''
As the Joint Explanation of the Committee of Conference (``Conference
Report'') makes clear, Congress intended the TRQs to address the duty
situation faced by U.S. wool suit manufacturers, in which worsted wool
fabric is subject to considerably higher duties than worsted wool
suits, a situation compounded by reductions in tariffs on wool suits
under free trade agreements with Canada and Mexico.
The Department, promptly upon promulgation of these regulations,
intends to allocate the increased TRQ amounts for 9902.21.11 and
9902.21.15. The Department will also begin the process of soliciting
applications for a license for an allocation of the 2005 TRQs on
worsted wool fabrics for 9902.51.16. In following years, applications
will be solicited on or around August 31, in order to allow companies
to be informed of their allocation as early as possible while still
allowing an allocation based on previous year production. The
Department intends to make its determination regarding the allocation
on or about November 1 and to issue licenses no later than December 31
of the year preceding the tariff rate quota year.
Pursuant to regulations, each of the three TRQs will be allocated
based on previous year production. The products under HTS 9902.51.16
will be allocated based on production of this type of worsted wool
fabric, while the tariff rate quota on worsted wool fabric with average
fiber diameters of 18.5 microns or less (HTS 9902.51.15) will be
allocated based on production utilizing this type of worsted wool. We
will also continue to allocate the tariff rate quota on worsted wool
fabric with average fiber diameters greater than 18.5 microns (HTS
9902.51.11) based on production utilizing this type of worsted wool.
Classification
Administrative Procedure Act: The Department of Commerce finds good
cause, under 5 USC 553(b)(B), to waive the requirement to provide prior
notice and opportunity for public comment as such requirement is
impracticable and contrary to the public interest. The new HTS
categories and allocation system must be implemented as soon as
possible to allow TRQ recipients to import their products under the new
HTS categories and allocation system.
If the new HTS category and allocation system are not implemented
immediately, TRQ recipients will be required to file amended entries
with Customs and Border Protection (CBP) in order to get the duty
benefit. Amended entries are costly and time consuming. To obtain the
duty benefits under a TRQ from a license issued after wool fabric has
cleared CBP, a Licensee would need to request its brokers and other
suppliers to file amended entries on its behalf with CBP in order to
obtain the duty rebates applicable to the TRQ license. This process is
time consuming and costly as additional staff would need to be hired
and extra hours devoted to research and file amended entries. Brokers
would need to research thousand of shipments (an average of 4,800
shipments per year were entered under the wool TRQ program from 2001 to
2004), imported into several different ports, in order to file amended
entries. Brokers and other suppliers do not always have the resources
and personnel in order to investigate individual shipments for
individual companies to file entries retroactively. The average cost
charged by brokers and suppliers for researching shipments range from
$100 to $200 to file amended entries, which would in effect nullify the
duty benefit for small shipments (50 square meters) which make up the
bulk of the entries for several licensees.
For the same reasons above, there is good cause to find under 5
U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness. As stated
above, the process of researching shipments to file amended entries is
time consuming and costly. If this regulation is not implemented
immediately, the costs incurred by TRQ recipients would in effect
nullify any duty benefits, particularly for those TRQ recipients who
have small shipments that make up the entries for several licensees.
While these regulations will be effective upon publication, the
Department of Commerce hereby solicits comments on these interim
regulations and will amend them in final regulations if appropriate.
The Department is particularly interested in comments concerning any
impact these regulations might have on small-or-medium sized
businesses.
Regulatory Flexibility Act: Because notice and comment are not
required under 5 U.S.C. 553 or any other law, the analytical
requirements of 5 U.S.C. 601 et seq. are not applicable and have not
been prepared.
Executive Order 12866: This rule has been determined to be not
significant under Executive Order 12866.
Paperwork Reduction Act:
This proposed rule contains a collection-of-information requirement
subject to the Paperwork Reduction Act (PRA) which has received
approval by OMB under control number 0625-0240. Notwithstanding any
other provision of
[[Page 25777]]
the law, no person is required to respond to, nor shall any person be
subject to a penalty for failure to comply with, a collection of
information subject to the requirements of the PRA, unless that
collection of information displays a currently valid OMB Control
Number.
Dated: May 5, 2005.
Joseph A. Spetrini
Acting Assistant Secretary for Import Administration.
0
For the reasons stated, 15 CFR. chapter III is amended to read as
follows:
PART 335--IMPORTS OF WORSTED WOOL FABRIC
0
1. The Authority citation for part 335 is revised to read as follows:
Authority: Title V of the Trade and Development Act of 2000
(Public Law No. 106-200) as amended by Trade Act of 2002 and the
Miscellaneous Trade Act of 2004 (Public Law 108-429), Presidential
Proclamation No. 7383 (December 1, 2000).
0
2. Sec. 335.1 is revised to read as follows:
Sec. 335.1 Purpose.
This part sets forth regulations regarding the issuance and effect
of licenses for the allocation of Worsted Wool Fabric under the TRQs
established by Section 501 of the Act, including the new HTS categories
9902.51.15 and 9902.51.16 added by the amended Act.
0
3. Sec. 335.2 is amended by revising the definition of ``Tariff Rate
Quota or Quotas'' to read as follows:
Sec. 335.2 Definitions.
* * * * *
Tariff Rate Quota or Quotas means the temporary duty reduction
provided under Section 501 of the Act for limited quantities of fabrics
of worsted wool with average diameters greater than 18.5 micron,
certified by the importer as suitable for use in making suits, suit-
type jackets, or trousers (HTS heading 9902.51.11), and for limited
quantities of fabrics of worsted wool with average diameters of 18.5
microns or less, certified by the importer as suitable for use in
making suits, suit-type jackets, or trousers for the benefit of persons
(including firms, corporations, or other legal entities) who cut and
sew men's and boy's wool suits, suit-type jackets and trousers in the
United States (HTS heading 9902.51.15), and worsted wool fabric with
average fiber diameters of 18.5 microns or less for the benefit of
persons (including firms, corporations, or other legal entities) who
weave worsted wool fabric in the United States (HTS 9902.51.16).
* * * * *
0
4. Sec. 335.3 is amended by removing paragraph (d)(3), redesignating
paragraphs (d)(4) and (d)(5) as (d)(3) and (d)(4) respectively, and by
revising paragraphs (c) and (d)(2) as follows:
Sec. 335.3 Applications to receive allocations.
* * * * *
(c) For applying for TRQs 9902.51.11 or 9902.51.15 during the
calendar year of the date of the application, an applicant must have
cut and sewed in the United States all three of the following apparel
products: Worsted Wool Suits, Worsted Wool Suit-Type Jackets, and
Worsted Wool Trousers. The applicant may either have cut and sewn these
products on its own behalf or had another person cut and sew the
products on the applicant's behalf, provided the applicant owned the
fabric at the time it was cut and sewn. The application must contain a
statement to this effect. For applying for TRQ 9902.51.16 during the
calendar year of the date of the application, an applicant must have
woven in the United States worsted wool fabrics with average fiber
diameters of 18.5 microns or less, suitable for use in making suits,
suit-type jackets, and trousers. The application must contain a
statement to this effect.
(d) * * *
(2)(i) Production. Applicants for TRQs 9902.51.11 and 9902.51.15
must provide the name and address of each plant or location where
Worsted Wool Suits, Worsted Wool Suit-Type Jackets, and Worsted Wool
Trousers were cut and sewn or woven by the applicant and the name and
address of all plants or locations that cut and sewed such products on
behalf of the applicant. Production data, including the following: the
quantity and value of the Worsted Wool Suits, Worsted Wool Suit-Type
Jackets, and Worsted Wool Trousers cut and sewn in the United States by
applicant, or on behalf of applicant, from fabric owned by applicant.
This data must indicate actual production (not estimates) of Worsted
Wool Suits, Worsted Wool Suit-Type Jackets and Worsted Wool Trousers
containing at least 85 percent worsted wool fabric by weight with an
average diameter of 18.5 microns or less. This data must also indicate
actual production (not estimates) of Worsted Wool Suits, Worsted Wool
Suit-Type Jackets and Worsted Wool Trousers containing at least 85
percent worsted wool fabric by weight with average diameter greater
than 18.5 microns. Production data must be provided for the first six
months of the year of the application. This data will be annualized for
the purpose of making Tariff Rate Quota allocations.
(ii) Applicants for TRQ 9902.51.16 must provide the name and
address of each plant or location where Worsted Wool Fabric was woven
by the applicant. The quantity and value of the Worsted Wool Fabric
woven in the United States by applicant. This data must indicate actual
production (not estimates) of Worsted Wool Fabric containing at least
85 percent worsted wool fabric by weight with an average diameter of
18.5 microns or less. For applications for the 2005 Tariff Rate Quota
year, production data must be provided for full calendar year 2004. For
allocations of Tariff Rate Quota years after 2005, production data must
be provided for the first six months of the year of the application.
This data will be annualized for the purpose of making Tariff Rate
Quota allocations.
* * * * *
0
5. Section 335.4 is amended by revising paragraphs (a) and (b) as
follows:
Sec. 335.4 Allocation.
(a) For HTS 9902.51.11 and HTS 9902.51.15 each Tariff Rate Quota
will be allocated separately. Allocation will be based on an
applicant's Worsted Wool Suit production, on a weighted average basis,
and the proportion of imported Worsted Wool Fabric consumed in the
production of Worsted Wool Suits. In regards to HTS 9902.51.16 the
Tariff Rate Quota will be allocated based on an applicant's Worsted
Wool Fabric production, on a weighted average basis.
(b) For the purpose of calculating allocations for HTS 9902.51.11
and HTS 9902.51.15 only, Worsted Wool Suit production will be increased
by the percentage of imported fabric consumed in the production of
Worsted Wool Suits to total fabric consumed in this production. For
example, if an applicant uses 30 percent imported fabric in the
production of Worsted Wool Suits, that applicant's production level
will be increased by 30 percent.
* * * * *
0
6. Section 335.6 is amended by revising paragraph (e) as follows:
Sec. 335.6 Surrender, reallocation and license utilization
requirement.
* * * * *
(e) A Licensee whose unused allocation in a Tariff Rate Quota Year
exceeds five percent of the quantity set forth in its license shall be
subject to having its allocation reduced in the subsequent Tariff Rate
Quota Year. The subsequent Tariff Rate Quota Year
[[Page 25778]]
allocation will be reduced from the quantity such Licensee would
otherwise have received by a quantity equal to 25 percent of its unused
allocation from the prior year. A Licensee whose unused allocation in
two or more consecutive Tariff Rate Quota Years exceeds five percent of
the quantity set forth in its license shall have its allocation reduced
in the subsequent Tariff Rate Quota Year by a quantity equal to 50
percent of its unused allocation from the prior year.
* * * * *
Sec. 335.7 [Removed]
0
7. Remove section 355.7.
PART 340--MODIFICATION OF THE TARIFF RATE QUOTA LIMITATION ON
WORSTED WOOL FABRIC IMPORTS. [Removed]
0
8. Remove entire part 340.
[FR Doc.05-9494 Filed 5-13-05; 8:45 am]
BILLING CODE 3510-DSS
