Imports of Certain Apparel Articles: Interim Procedures for the Implementation of the Earned Import Allowance Program Established Under the Food, Conservation, and Energy Act of 2008, 53191-53193 [E8-21481]
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Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
Background
On May 30, 2008, the Department
published the preliminary results of the
2006–2007 administrative review of the
antidumping duty order on certain
polyester staple fiber from the Republic
of Korea. See Certain Polyester Staple
Fiber from Korea: Preliminary Results of
the 2006/2007 Antidumping Duty
Administrative Review, 73 FR 31058
(May 30, 2008). In our preliminary
results, we stated that we would issue
our final results for the antidumping
duty administrative review no later than
120 days after the date of publication of
the preliminary results (i.e., September
27, 2008).
Extension of Time Limits for Final
Results
The Department has determined that
completion of the final results of this
review within the original time period
is not practicable due to the complex
legal and factual issues that have arisen
since the issuance of our preliminary
results of review. Specifically, the
Department requires additional time to
review interested parties’ comments on
information regarding respondent’s,
Huvis Corporation’s, affiliated parties.
Thus, in accordance with section
751(a)(3)(A) of the Act, the Department
is extending the time period for issuing
the final results of review by an
additional 60 days, until November 26,
2008.
We are issuing and publishing this
notice in accordance with sections
751(a)(3)(A) and 777(i)(1) of the Act.
Dated: September 8, 2008.
Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E8–21362 Filed 9–12–08; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Imports of Certain Apparel Articles:
Interim Procedures for the
Implementation of the Earned Import
Allowance Program Established Under
the Food, Conservation, and Energy
Act of 2008
Interim procedures, request for
comments.
mstockstill on PROD1PC66 with NOTICES
ACTION:
SUMMARY: The Department of Commerce
is issuing interim procedures
implementing provisions under the
Food, Conservation, and Energy Act of
2008 (‘‘the Act’’), enacted in its entirety
by Congress on June 18, 2008. Title XV,
Subtitle D, Part I of the Act contains
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20:22 Sep 12, 2008
Jkt 214001
amendments to the special rules for
apparel and other textiles from Haiti in
Section 213A(b) of the Caribbean Basin
Economic Recovery Act (‘‘CBERA’’) (19
U.S.C. 2703a(b)), including rules
enacted in 2006 by the Haitian
Hemispheric Opportunity through
Partnership Encouragement Act of 2006
(‘‘HOPE’’). These amendments are also
cited as the ‘‘Haitian Hemispheric
Opportunity through Partnership
Encouragement Act of 2008’’ (‘‘HOPE
II’’). Under Section 15402 of the Act,
Section 213A(b) of CBERA is amended
by creating a benefit for apparel wholly
assembled or knit-to-shape in Haiti that
meets a ‘‘3 for 1’’ earned import
allowance. The amendment requires the
Secretary of Commerce to establish a
program to provide earned import
allowance certificates to any producer
or entity controlling production of
apparel in Haiti, such that apparel
wholly assembled or knit-to-shape in
Haiti from any combination of fabrics,
fabric components, components knit-toshape, or yarns, regardless of their
source, and imported directly from Haiti
or the Dominican Republic may enter
the United States duty-free, pursuant to
the satisfaction of the terms governing
issuance of the earned import allowance
certificate by the producer or entity
controlling production of apparel in
Haiti.
DATES: These interim procedures are
effective as of September 30, 2008.
Although these procedures are not
subject to the requirement to provide
prior notice and opportunity for public
comment under 5 U.S.C. 553(b)(A)
(‘‘Administrative Procedures Act’’),
Commerce will consider written
comments received by 5 p.m. on
November 14, 2008.
ADDRESSES: Comments should be
addressed to: R. Matthew Priest, Deputy
Assistant Secretary for Textiles and
Apparel, Room 3001, United States
Department of Commerce, Washington,
DC 20230.
FOR FURTHER INFORMATION CONTACT:
Maria Dybczak, Office of Textiles and
Apparel, U.S. Department of Commerce,
(202) 482–3651.
SUPPLEMENTARY INFORMATION:
Background
The Department of Commerce is
issuing interim procedures
implementing Section 15402 of the Act,
which was enacted in its entirety by
Congress on June 18, 2008. Title XV,
Subtitle D, Part I of the Act contains
amendments to the special rules for
apparel and other textiles from Haiti in
Section 213A(b) of CBERA (19 U.S.C.
2703a(b)), including rules enacted in
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53191
2006 by HOPE. These amendments are
also cited as HOPE II.
Under Section 15402 of the Act,
Section 213A(b) of CBERA is amended
by creating an uncapped benefit for
apparel wholly assembled or knit-toshape in Haiti that meets a ‘‘3 for 1’’
earned import allowance. The Act
requires that the Secretary of Commerce
establish an Earned Import Allowance
program under Section 213A(b) such
that apparel wholly assembled or knitto-shape in Haiti from any combination
of fabrics, fabric components,
components knit-to-shape, or yarns and
imported directly from Haiti or the
Dominican Republic shall enter the
United States free of duty, without
regard to the source of the fabrics, fabric
components, components knit-to-shape
or yarns from which the articles are
made, if such apparel articles are
accompanied by an earned import
allowance certificate (‘‘certificate’’) that
reflects the amount of credits equal to
the total square meter equivalent
(‘‘SME’’) of such apparel articles, in
accordance with the program outlined
below. The Secretary of Commerce has
delegated his authority under the Act to
implement and administer the Earned
Import Allowance program to the
International Trade Administration’s
Office of Textiles and Apparel
(‘‘OTEXA’’).
This notice sets forth the interim
procedures OTEXA will follow in
implementing the provisions of HOPE II
and the Earned Import Allowance
program. In accordance with these
procedures, OTEXA will issue
certificates to qualifying apparel
producers to accompany imports of
apparel wholly formed or knit-to-shape
in Haiti and exported from Haiti or the
Dominican Republic. Such certificates
will be issued as long as there is
sufficient balance of SMEs available as
a result of the purchase of qualifying
woven fabrics or qualifying knit fabrics,
as defined below, intended for
production in Haiti. OTEXA, promptly
upon promulgation of these interim
procedures, intends to begin the process
of opening and administering qualifying
apparel producers’ accounts to issue
certificates as appropriate.
These procedures may be modified in
the future to address concerns that may
arise as OTEXA gains experience in
implementing them. Pursuant to the
Secretary’s delegation of authority,
OTEXA may reconsider, and/or
subsequently amend, any determination
to deposit credits or request to issue
certificates that may have been procured
by error, fraud, or similar faults.
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53192
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
Interim Procedures
1. Introduction: OTEXA will issue a
certificate to any producer or entity
controlling production in Haiti
(‘‘qualifying apparel producer’’) based
on the following elements: (1) One SME
credit shall be issued to a qualifying
apparel producer for every three SMEs
of qualifying woven fabric or qualifying
knit fabric that the qualifying apparel
producer can demonstrate that it
purchased for the manufacture in Haiti
of apparel wholly assembled or knit-toshape in Haiti. SME quantities are to be
calculated by the use of the appropriate
conversion factor, defined below.
OTEXA shall, as requested by a
qualifying apparel producer, create and
maintain an account for such qualifying
apparel producer, into which such
credits shall be deposited. (2) Such
qualifying apparel producer may
redeem credits for certificates reflecting
such number of credits as the qualifying
apparel producer may request and has
available. Requests for deposits of
credits for purchases of qualifying
woven fabrics and qualifying knit
fabrics as well as redemption of said
credits for earned import allowance
certificates will be made through a
dedicated on-line system, known as the
Haiti HOPE II Earned Import Allowance
Online System (‘‘HOPE II online
system’’).
2. Definitions:
a. The Act: The Food, Conservation,
and Energy Act of 2008.
b. Conversion Factor: Conversion
factors listed in ‘‘Correlation: U.S.
Textile and Apparel Industry Category
System with the Harmonized Tariff
Schedule of the United States of
America, 2008,’’ or its successor
publications, of the United States
Department of Commerce.
c. Imported Directly from Haiti or the
Dominican Republic: Articles are
‘‘imported directly from Haiti or the
Dominican Republic’’ if—
(1) the articles are shipped directly
from Haiti or the Dominican Republic
into the United States without passing
into the territory of any intermediate
country; or
(2) the articles are shipped from Haiti
or the Dominican Republic into the
United States through the territory of an
intermediate country, and—
(A) the articles in the shipment do not
enter into the commerce of any
intermediate country, and the invoices,
bills of lading, and other shipping
documents specify the United States as
the final destination; or
(B) the invoices and other documents
do not specify the United States as the
final destination, but the articles in the
shipment—
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20:22 Sep 12, 2008
Jkt 214001
(i) Remain under the control of the
customs authority in the intermediate
country;
(ii) do not enter into the commerce of
the intermediate country except for the
purpose of a sale other than at retail;
and
(iii) have not been subjected to
operations in the intermediate country
other than loading, unloading, or other
activities necessary to preserve the
articles in good condition.
d. Knit-to-Shape: A good is ‘‘knit-toshape’’ if 50 percent or more of the
exterior surface area of the good is
formed by major parts that have been
knitted or crocheted directly to the
shape used in the good, with no
consideration being given to patch
´
pockets, appliques, or the like. Minor
cutting, trimming, or sewing of those
major parts shall not affect the
determination of whether a good is
‘‘knit-to-shape.’’
e. Qualifying Apparel Producer: An
individual, corporation, partnership,
association, or other entity or group that
exercises direct, daily operational
control over the apparel production
process in Haiti; or an individual,
corporation, partnership, association or
other entity that is not a producer and
that controls the apparel production
process in Haiti through a contractual
relationship or other indirect means.
f. Qualifying Knit Fabric: For the
purposes of these procedures, the term
‘‘qualifying knit fabric’’ means fabric or
knit-to-shape components wholly
formed or knit-to-shape in any country
or any combination of countries
described in Section 213A(1)(B)(iii) of
CBERA, as amended by the Act, from
yarns wholly formed in the United
States, purchased on or after October 1,
2008, expressly for production of
apparel in Haiti, except that:
(1) Fabric or knit-to-shape
components otherwise eligible as
qualifying knit fabric shall not be
ineligible as qualifying knit fabric
because the fabric or knit-to-shape
components contain nylon filament
yarn to which Section
213(b)(2)(A)(vii)(IV) of CBERA applies;
(2) fabric or knit-to-shape components
that would otherwise be ineligible as
qualifying knit fabric because the fabric
or knit-to-shape component contains
yarns not wholly formed in the United
States shall not be ineligible as
qualifying knit fabric if the total weight
of all such yarns is not more than 10
percent of the total weight of the fabric
or knit-to-shape component; and
(3) fabric or knit-to-shape components
otherwise eligible as qualifying knit
fabric shall not be ineligible as
qualifying knit fabric because the fabric
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Fmt 4703
Sfmt 4703
or knit-to-shape components contain
yarns covered by the short supply
provisions of Section 213A(b)(5) of
CBERA, as amended by the Act.
g. Qualifying Woven Fabric: For the
purposes of these procedures, the term
‘‘qualifying woven fabric’’ means fabric
wholly formed in the United States from
yarns wholly formed in the United
States, purchased on or after October 1,
2008, expressly for production of
apparel in Haiti, except that:
(1) Fabric otherwise eligible as
qualifying woven fabric shall not be
ineligible as qualifying woven fabric
because the fabric contains nylon
filament yarn to which Section
213(b)(2)(A)(vii)(IV) of CBERA applies;
(2) fabric that would otherwise be
ineligible as qualifying woven fabric
because the fabric contains yarns not
wholly formed in the United States shall
not be ineligible as qualifying woven
fabric if the total weight of all such
yarns is not more than 10 percent of the
total weight of the fabric; and
(3) fabric otherwise eligible as
qualifying woven fabric shall not be
ineligible as qualifying fabric because
the fabric contains yarns covered by the
short supply provisions of Section
213A(b)(5) of CBERA, as amended by
the Act.
h. Wholly Assembled: A good is
‘‘wholly assembled’’ in Haiti if all its
components, of which there must be at
least two, pre-existed in essentially the
same condition as found in the finished
good and were combined to form the
finished good in Haiti. Minor
attachments and minor embellishments
´
(for example, appliques, beads,
spangles, embroidery, and buttons) not
appreciably affecting the identity of the
good, and minor subassemblies (for
example, collars, cuffs, plackets, and
pockets), shall not affect the
determination of whether a good is
‘‘wholly assembled’’ in Haiti.
3. Submitting a Request to Open an
Account: A qualifying apparel producer,
as defined in section 2(e) of these
procedures, may request that OTEXA
open an account to which records of
purchases of qualifying woven fabric or
qualifying knit fabric, as defined in
sections 2(g) and 2(f) of these
procedures, may be deposited toward a
balance from which to draw certificates.
Such request should be made online, via
the HOPE II online system, located on
the OTEXA Web site. In making a
request to open an account, the
qualifying apparel producer must
provide:
a. The full name and address of the
qualifying apparel producer;
b. All designated contacts and contact
information, and any designees
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15SEN1
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Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Notices
authorized to have access to the
account; and
c. A statement affirming the accuracy
and authenticity of the information
submitted to OTEXA.
Once the application has been
received by the HOPE II online system
and reviewed and approved by OTEXA,
the qualifying apparel producer will be
assigned a unique user identification
number, and a password to enable
future access to its online account. The
qualifying apparel producer may request
to update contact and designee
information in its account at any time
through the HOPE II online system.
4. Submitting a Request to Deposit
Credits. A qualifying apparel producer
with an existing account may submit a
request to deposit credits for purchases
of qualifying woven fabric or qualifying
knit fabric. The request must contain the
following information:
a. The name of the qualifying apparel
producer;
b. A complete description of the
qualifying woven fabric or qualifying
knit fabric;
c. The quantity, in SMEs, of the
qualifying woven fabric or qualifying
knit fabric;
d. A statement that the qualifying
woven fabric or qualifying knit fabric is
intended for the production of apparel
in Haiti; and
e. Supporting documentation:
Documentation, which, in their totality
includes:
(1) The U.S. manufacturer of the
qualifying woven fabric or qualifying
knit fabric;
(2) the full description of the fabric in
question, including any non-U.S.
components or inputs and their
manufacturer;
(3) if the fabric consists wholly or in
part of knit-to-shape components, the
manufacturer of said components, and
documentation indicating that U.S.
yarns were used in the production of
said components;
(3) the name of the qualifying apparel
producer as the ultimate consignee; and
(4) that the fabric purchased is
intended for production of apparel in
Haiti.
f. An affirmation from the qualifying
apparel producer as to the accuracy and
authenticity of the information
provided.
The request must be submitted via the
Hope II online system. All supporting
documentation must be submitted either
electronically via the Hope II online
system, or via fax to 202–482–0858 or
202–482–2331. OTEXA will review the
request and supporting documentation
and shall make a determination whether
to approve or deny the request to
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20:22 Sep 12, 2008
Jkt 214001
deposit credits. Should there be
insufficient information with which to
make a determination, OTEXA may
request additional information from the
qualifying apparel producer, the
manufacturer of the fabric or
components at issue, or any other entity
identified in supporting documentation,
as provided by section 6.
5. Submitting a Request for an Earned
Income Allowance Certificate. A
qualifying apparel producer may request
the issuance of a certificate via the
HOPE II online system. The qualifying
apparel producer must log on to the
HOPE II online system to access its
account, and submit a request to redeem
credits and be issued a certificate. As
long as there are sufficient credits
available, a certificate will be
automatically generated by the HOPE II
online system, and the credits will be
automatically withdrawn from the
qualifying apparel producer’s account. If
there are insufficient credits in the
qualifying apparel producer’s account,
the request for a certificate will
automatically be denied by the HOPE II
online system.
6. Verification of Submitted
Information. OTEXA may, at any time,
verify the information submitted by a
qualifying apparel producer or its
designee. OTEXA may require any
textile mill or other entity located in the
United States that exports to Haiti
qualifying woven fabric or qualifying
knit fabric to submit, upon such export
or upon request, documentation to
OTEXA: (a) verifying that the qualifying
woven fabric or qualifying knit fabric
was exported to a producer in Haiti or
to an entity controlling production; and
(b) identifying such producer or entity
controlling production, and the quantity
and description of qualifying woven
fabric or qualifying knit fabric exported
to such producer or entity controlling
production. OTEXA may also require
that a producer or entity controlling
production submit documentation to
verify purchases of qualifying woven
fabric or qualifying knit fabric. OTEXA
may make available to each person or
entity identified in documentation
submitted under these provisions
information contained in the
documentation that relates to the
purchase of qualifying woven fabric or
qualifying knit fabric involving such
person or entity. OTEXA may establish
and impose penalties for the submission
to OTEXA of fraudulent information
under this program, other than a claim
under the customs laws of the United
States or under title 18, United States
Code.
7. Contact Information: Questions
regarding the Earned Import Allowance
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53193
program or the HOPE II online system
may contact OTEXA via e-mail at
OTEXA_HaitiHOPE2@mail.doc.gov, or
by phone to the Office of Textiles and
Apparel, U.S. Department of Commerce,
(202) 482–3400.
R. Matthew Priest,
Chairman, Committee for the Implementation
of Textile Agreements.
[FR Doc. E8–21481 Filed 9–12–08; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–846]
Brake Rotors From the People’s
Republic of China: Notice of Partial
Rescission of Antidumping Duty
Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (the Department) is
rescinding in part the administrative
review of the antidumping duty order
on brake rotors from the People’s
Republic of China (PRC) for the period
April 1, 2007, to August 13, 2007, with
respect to Dixion Brake System
(Longkou) Ltd. (Dixion), Laizhou Luqi
Machinery Co., Ltd. (Luqi), Laizhou
Wally Automobile Co., Ltd. (Wally),
Longkou Haimeng Machinery Co., Ltd.
(Haimeng), and Longkou Orient
Autoparts Co., Ltd. (Longkou Orient).
This partial rescission is based on the
withdrawal of the requests for review by
the interested parties that requested the
review.
EFFECTIVE DATE: September 15, 2008.
FOR FURTHER INFORMATION CONTACT:
Brian Smith or Terre Keaton Stefanova,
AD/CVD Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone (202) 482–1766 and (202)
482–1280, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On April 1, 2008, the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on brake rotors
from the PRC. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 73
FR 17317 (April 1, 2008). In response,
Dixion, Haimeng, Longkou Orient, Luqi,
and Wally, exporters of the subject
E:\FR\FM\15SEN1.SGM
15SEN1
]]>Agencies
[Federal Register Volume 73, Number 179 (Monday, September 15, 2008)]
[Notices]
[Pages 53191-53193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21481]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
Imports of Certain Apparel Articles: Interim Procedures for the
Implementation of the Earned Import Allowance Program Established Under
the Food, Conservation, and Energy Act of 2008
ACTION: Interim procedures, request for comments.
-----------------------------------------------------------------------
SUMMARY: The Department of Commerce is issuing interim procedures
implementing provisions under the Food, Conservation, and Energy Act of
2008 (``the Act''), enacted in its entirety by Congress on June 18,
2008. Title XV, Subtitle D, Part I of the Act contains amendments to
the special rules for apparel and other textiles from Haiti in Section
213A(b) of the Caribbean Basin Economic Recovery Act (``CBERA'') (19
U.S.C. 2703a(b)), including rules enacted in 2006 by the Haitian
Hemispheric Opportunity through Partnership Encouragement Act of 2006
(``HOPE''). These amendments are also cited as the ``Haitian
Hemispheric Opportunity through Partnership Encouragement Act of 2008''
(``HOPE II''). Under Section 15402 of the Act, Section 213A(b) of CBERA
is amended by creating a benefit for apparel wholly assembled or knit-
to-shape in Haiti that meets a ``3 for 1'' earned import allowance. The
amendment requires the Secretary of Commerce to establish a program to
provide earned import allowance certificates to any producer or entity
controlling production of apparel in Haiti, such that apparel wholly
assembled or knit-to-shape in Haiti from any combination of fabrics,
fabric components, components knit-to-shape, or yarns, regardless of
their source, and imported directly from Haiti or the Dominican
Republic may enter the United States duty-free, pursuant to the
satisfaction of the terms governing issuance of the earned import
allowance certificate by the producer or entity controlling production
of apparel in Haiti.
DATES: These interim procedures are effective as of September 30, 2008.
Although these procedures are not subject to the requirement to provide
prior notice and opportunity for public comment under 5 U.S.C.
553(b)(A) (``Administrative Procedures Act''), Commerce will consider
written comments received by 5 p.m. on November 14, 2008.
ADDRESSES: Comments should be addressed to: R. Matthew Priest, Deputy
Assistant Secretary for Textiles and Apparel, Room 3001, United States
Department of Commerce, Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: Maria Dybczak, Office of Textiles and
Apparel, U.S. Department of Commerce, (202) 482-3651.
SUPPLEMENTARY INFORMATION:
Background
The Department of Commerce is issuing interim procedures
implementing Section 15402 of the Act, which was enacted in its
entirety by Congress on June 18, 2008. Title XV, Subtitle D, Part I of
the Act contains amendments to the special rules for apparel and other
textiles from Haiti in Section 213A(b) of CBERA (19 U.S.C. 2703a(b)),
including rules enacted in 2006 by HOPE. These amendments are also
cited as HOPE II.
Under Section 15402 of the Act, Section 213A(b) of CBERA is amended
by creating an uncapped benefit for apparel wholly assembled or knit-
to-shape in Haiti that meets a ``3 for 1'' earned import allowance. The
Act requires that the Secretary of Commerce establish an Earned Import
Allowance program under Section 213A(b) such that apparel wholly
assembled or knit-to-shape in Haiti from any combination of fabrics,
fabric components, components knit-to-shape, or yarns and imported
directly from Haiti or the Dominican Republic shall enter the United
States free of duty, without regard to the source of the fabrics,
fabric components, components knit-to-shape or yarns from which the
articles are made, if such apparel articles are accompanied by an
earned import allowance certificate (``certificate'') that reflects the
amount of credits equal to the total square meter equivalent (``SME'')
of such apparel articles, in accordance with the program outlined
below. The Secretary of Commerce has delegated his authority under the
Act to implement and administer the Earned Import Allowance program to
the International Trade Administration's Office of Textiles and Apparel
(``OTEXA'').
This notice sets forth the interim procedures OTEXA will follow in
implementing the provisions of HOPE II and the Earned Import Allowance
program. In accordance with these procedures, OTEXA will issue
certificates to qualifying apparel producers to accompany imports of
apparel wholly formed or knit-to-shape in Haiti and exported from Haiti
or the Dominican Republic. Such certificates will be issued as long as
there is sufficient balance of SMEs available as a result of the
purchase of qualifying woven fabrics or qualifying knit fabrics, as
defined below, intended for production in Haiti. OTEXA, promptly upon
promulgation of these interim procedures, intends to begin the process
of opening and administering qualifying apparel producers' accounts to
issue certificates as appropriate.
These procedures may be modified in the future to address concerns
that may arise as OTEXA gains experience in implementing them. Pursuant
to the Secretary's delegation of authority, OTEXA may reconsider, and/
or subsequently amend, any determination to deposit credits or request
to issue certificates that may have been procured by error, fraud, or
similar faults.
[[Page 53192]]
Interim Procedures
1. Introduction: OTEXA will issue a certificate to any producer or
entity controlling production in Haiti (``qualifying apparel
producer'') based on the following elements: (1) One SME credit shall
be issued to a qualifying apparel producer for every three SMEs of
qualifying woven fabric or qualifying knit fabric that the qualifying
apparel producer can demonstrate that it purchased for the manufacture
in Haiti of apparel wholly assembled or knit-to-shape in Haiti. SME
quantities are to be calculated by the use of the appropriate
conversion factor, defined below. OTEXA shall, as requested by a
qualifying apparel producer, create and maintain an account for such
qualifying apparel producer, into which such credits shall be
deposited. (2) Such qualifying apparel producer may redeem credits for
certificates reflecting such number of credits as the qualifying
apparel producer may request and has available. Requests for deposits
of credits for purchases of qualifying woven fabrics and qualifying
knit fabrics as well as redemption of said credits for earned import
allowance certificates will be made through a dedicated on-line system,
known as the Haiti HOPE II Earned Import Allowance Online System
(``HOPE II online system'').
2. Definitions:
a. The Act: The Food, Conservation, and Energy Act of 2008.
b. Conversion Factor: Conversion factors listed in ``Correlation:
U.S. Textile and Apparel Industry Category System with the Harmonized
Tariff Schedule of the United States of America, 2008,'' or its
successor publications, of the United States Department of Commerce.
c. Imported Directly from Haiti or the Dominican Republic: Articles
are ``imported directly from Haiti or the Dominican Republic'' if--
(1) the articles are shipped directly from Haiti or the Dominican
Republic into the United States without passing into the territory of
any intermediate country; or
(2) the articles are shipped from Haiti or the Dominican Republic
into the United States through the territory of an intermediate
country, and--
(A) the articles in the shipment do not enter into the commerce of
any intermediate country, and the invoices, bills of lading, and other
shipping documents specify the United States as the final destination;
or
(B) the invoices and other documents do not specify the United
States as the final destination, but the articles in the shipment--
(i) Remain under the control of the customs authority in the
intermediate country;
(ii) do not enter into the commerce of the intermediate country
except for the purpose of a sale other than at retail; and
(iii) have not been subjected to operations in the intermediate
country other than loading, unloading, or other activities necessary to
preserve the articles in good condition.
d. Knit-to-Shape: A good is ``knit-to-shape'' if 50 percent or more
of the exterior surface area of the good is formed by major parts that
have been knitted or crocheted directly to the shape used in the good,
with no consideration being given to patch pockets, appliqu[eacute]s,
or the like. Minor cutting, trimming, or sewing of those major parts
shall not affect the determination of whether a good is ``knit-to-
shape.''
e. Qualifying Apparel Producer: An individual, corporation,
partnership, association, or other entity or group that exercises
direct, daily operational control over the apparel production process
in Haiti; or an individual, corporation, partnership, association or
other entity that is not a producer and that controls the apparel
production process in Haiti through a contractual relationship or other
indirect means.
f. Qualifying Knit Fabric: For the purposes of these procedures,
the term ``qualifying knit fabric'' means fabric or knit-to-shape
components wholly formed or knit-to-shape in any country or any
combination of countries described in Section 213A(1)(B)(iii) of CBERA,
as amended by the Act, from yarns wholly formed in the United States,
purchased on or after October 1, 2008, expressly for production of
apparel in Haiti, except that:
(1) Fabric or knit-to-shape components otherwise eligible as
qualifying knit fabric shall not be ineligible as qualifying knit
fabric because the fabric or knit-to-shape components contain nylon
filament yarn to which Section 213(b)(2)(A)(vii)(IV) of CBERA applies;
(2) fabric or knit-to-shape components that would otherwise be
ineligible as qualifying knit fabric because the fabric or knit-to-
shape component contains yarns not wholly formed in the United States
shall not be ineligible as qualifying knit fabric if the total weight
of all such yarns is not more than 10 percent of the total weight of
the fabric or knit-to-shape component; and
(3) fabric or knit-to-shape components otherwise eligible as
qualifying knit fabric shall not be ineligible as qualifying knit
fabric because the fabric or knit-to-shape components contain yarns
covered by the short supply provisions of Section 213A(b)(5) of CBERA,
as amended by the Act.
g. Qualifying Woven Fabric: For the purposes of these procedures,
the term ``qualifying woven fabric'' means fabric wholly formed in the
United States from yarns wholly formed in the United States, purchased
on or after October 1, 2008, expressly for production of apparel in
Haiti, except that:
(1) Fabric otherwise eligible as qualifying woven fabric shall not
be ineligible as qualifying woven fabric because the fabric contains
nylon filament yarn to which Section 213(b)(2)(A)(vii)(IV) of CBERA
applies;
(2) fabric that would otherwise be ineligible as qualifying woven
fabric because the fabric contains yarns not wholly formed in the
United States shall not be ineligible as qualifying woven fabric if the
total weight of all such yarns is not more than 10 percent of the total
weight of the fabric; and
(3) fabric otherwise eligible as qualifying woven fabric shall not
be ineligible as qualifying fabric because the fabric contains yarns
covered by the short supply provisions of Section 213A(b)(5) of CBERA,
as amended by the Act.
h. Wholly Assembled: A good is ``wholly assembled'' in Haiti if all
its components, of which there must be at least two, pre-existed in
essentially the same condition as found in the finished good and were
combined to form the finished good in Haiti. Minor attachments and
minor embellishments (for example, appliqu[eacute]s, beads, spangles,
embroidery, and buttons) not appreciably affecting the identity of the
good, and minor subassemblies (for example, collars, cuffs, plackets,
and pockets), shall not affect the determination of whether a good is
``wholly assembled'' in Haiti.
3. Submitting a Request to Open an Account: A qualifying apparel
producer, as defined in section 2(e) of these procedures, may request
that OTEXA open an account to which records of purchases of qualifying
woven fabric or qualifying knit fabric, as defined in sections 2(g) and
2(f) of these procedures, may be deposited toward a balance from which
to draw certificates. Such request should be made online, via the HOPE
II online system, located on the OTEXA Web site. In making a request to
open an account, the qualifying apparel producer must provide:
a. The full name and address of the qualifying apparel producer;
b. All designated contacts and contact information, and any
designees
[[Page 53193]]
authorized to have access to the account; and
c. A statement affirming the accuracy and authenticity of the
information submitted to OTEXA.
Once the application has been received by the HOPE II online system
and reviewed and approved by OTEXA, the qualifying apparel producer
will be assigned a unique user identification number, and a password to
enable future access to its online account. The qualifying apparel
producer may request to update contact and designee information in its
account at any time through the HOPE II online system.
4. Submitting a Request to Deposit Credits. A qualifying apparel
producer with an existing account may submit a request to deposit
credits for purchases of qualifying woven fabric or qualifying knit
fabric. The request must contain the following information:
a. The name of the qualifying apparel producer;
b. A complete description of the qualifying woven fabric or
qualifying knit fabric;
c. The quantity, in SMEs, of the qualifying woven fabric or
qualifying knit fabric;
d. A statement that the qualifying woven fabric or qualifying knit
fabric is intended for the production of apparel in Haiti; and
e. Supporting documentation: Documentation, which, in their
totality includes:
(1) The U.S. manufacturer of the qualifying woven fabric or
qualifying knit fabric;
(2) the full description of the fabric in question, including any
non-U.S. components or inputs and their manufacturer;
(3) if the fabric consists wholly or in part of knit-to-shape
components, the manufacturer of said components, and documentation
indicating that U.S. yarns were used in the production of said
components;
(3) the name of the qualifying apparel producer as the ultimate
consignee; and
(4) that the fabric purchased is intended for production of apparel
in Haiti.
f. An affirmation from the qualifying apparel producer as to the
accuracy and authenticity of the information provided.
The request must be submitted via the Hope II online system. All
supporting documentation must be submitted either electronically via
the Hope II online system, or via fax to 202-482-0858 or 202-482-2331.
OTEXA will review the request and supporting documentation and shall
make a determination whether to approve or deny the request to deposit
credits. Should there be insufficient information with which to make a
determination, OTEXA may request additional information from the
qualifying apparel producer, the manufacturer of the fabric or
components at issue, or any other entity identified in supporting
documentation, as provided by section 6.
5. Submitting a Request for an Earned Income Allowance Certificate.
A qualifying apparel producer may request the issuance of a certificate
via the HOPE II online system. The qualifying apparel producer must log
on to the HOPE II online system to access its account, and submit a
request to redeem credits and be issued a certificate. As long as there
are sufficient credits available, a certificate will be automatically
generated by the HOPE II online system, and the credits will be
automatically withdrawn from the qualifying apparel producer's account.
If there are insufficient credits in the qualifying apparel producer's
account, the request for a certificate will automatically be denied by
the HOPE II online system.
6. Verification of Submitted Information. OTEXA may, at any time,
verify the information submitted by a qualifying apparel producer or
its designee. OTEXA may require any textile mill or other entity
located in the United States that exports to Haiti qualifying woven
fabric or qualifying knit fabric to submit, upon such export or upon
request, documentation to OTEXA: (a) verifying that the qualifying
woven fabric or qualifying knit fabric was exported to a producer in
Haiti or to an entity controlling production; and (b) identifying such
producer or entity controlling production, and the quantity and
description of qualifying woven fabric or qualifying knit fabric
exported to such producer or entity controlling production. OTEXA may
also require that a producer or entity controlling production submit
documentation to verify purchases of qualifying woven fabric or
qualifying knit fabric. OTEXA may make available to each person or
entity identified in documentation submitted under these provisions
information contained in the documentation that relates to the purchase
of qualifying woven fabric or qualifying knit fabric involving such
person or entity. OTEXA may establish and impose penalties for the
submission to OTEXA of fraudulent information under this program, other
than a claim under the customs laws of the United States or under title
18, United States Code.
7. Contact Information: Questions regarding the Earned Import
Allowance program or the HOPE II online system may contact OTEXA via e-
mail at OTEXA_HaitiHOPE2@mail.doc.gov, or by phone to the Office of
Textiles and Apparel, U.S. Department of Commerce, (202) 482-3400.
R. Matthew Priest,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. E8-21481 Filed 9-12-08; 8:45 am]
BILLING CODE 3510-DS-P
