Interim Procedures for Considering Requests Under the Commercial Availability Provision of the United States-Panama Trade Promotion Agreement, 28198-28204 [2013-11455]

Agencies

• Committee for the Implementation of Textile Agreements

[Federal Register Volume 78, Number 93 (Tuesday, May 14, 2013)]
[Notices]
[Pages 28198-28204]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11455]


=======================================================================
-----------------------------------------------------------------------

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

[Docket : 130425410-3410-01; OMB Control : 0625-0273 
(Expiration: 04/30/2016)]
RIN 0625-XC005


Interim Procedures for Considering Requests Under the Commercial 
Availability Provision of the United States-Panama Trade Promotion 
Agreement

AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Notice of Interim Procedures and Request for Comments.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth the interim procedures the Committee 
for the Implementation of Textile Agreements (``CITA'') will follow in 
implementing certain provisions of the United States-Panama Trade 
Promotion Agreement (``US-Panama TPA''). Section 203(o)(4) of the 
United States-Panama Trade Promotion Agreement Implementation Act 
(``Implementation Act'') [Public Law 112-43] authorizes the President 
to establish procedures to modify the list of fabrics, yarns, or fibers 
not available in commercial quantities in a timely manner in either the 
United States or Panama as set out in Annex 3.25 of the US-Panama TPA. 
The President has delegated to CITA the authority to determine whether 
fabrics, yarns, or fibers are not available in commercial quantities in 
a timely manner in either the United States or Panama and has directed 
CITA to establish procedures that govern the submission of a request 
and provide the opportunity for interested entities to submit comments 
and supporting evidence for any such determination pursuant to the 
Implementation Act. CITA hereby gives notice to interested entities of 
the procedures CITA will follow in considering such requests and 
solicits public written comments on these interim procedures. CITA will 
be using the procedures detailed in this notice as of May 14, 2013.
DATE: Comments on the interim procedures must be received no later than 
June 13, 2013 of this notice, either in hard copy or electronically.

ADDRESSES: If submitting comments in hard copy, an original, signed 
hard copy must be submitted to the Chairman, Committee for the 
Implementation of Textile Agreements, Room 30003, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 
20230. If submitting comments electronically, the electronic copy must 
be submitted to OTEXA_PANAMA@trade.gov. All submitted comments will be 
posted for public review on the Web site dedicated to US-Panama TPA 
commercial availability proceedings. The Web site is located on the 
U.S. Department of Commerce's Office of Textile and Apparel Web site 
(https://otexa.ita.doc.gov), under ``Commercial Availability''/``Panama 
TPA.'' Additional instructions regarding the submission of comments may 
be found at the end of this notice.

FOR FURTHER INFORMATION CONTACT: Maria Dybczak, Office of Textiles and 
Apparel, U.S. Department of Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

    Legal Authority: Section 203(o) of the Implementation Act and 
Proclamation No. 8894, 77 FR 66507 (November 5, 2012).

Background

    The US-Panama TPA provides a list in Annex 3.25 for fabrics, yarns, 
and fibers that the United States has determined are not available in 
commercial quantities in a timely manner from producers in the United 
States or Panama. A textile or apparel good must satisfy the specific 
rules of origin in Annex 4.1 of the US-Panama TPA as well as other 
requirements of the Agreement. However, a textile and apparel good 
containing fabrics, yarns, or fibers that are included on the list in 
Annex 3.25 of the US-Panama TPA will be treated as if it is an 
originating good for purposes of the US-Panama TPA, regardless of the 
actual origin of those inputs in accordance with the specific rules of 
origin in Annex 4.1, Notes to Section XI. The Implementation Act 
provides that the President will establish procedures governing the 
submission of requests under Section 203(o)(4) (``the commercial 
availability provision''), and as set forth in the US-Panama TPA, and 
may determine whether additional fabrics, yarns, or fibers are 
available or are not available in commercial quantities in a timely 
manner in the United States or Panama. In addition, Section 203(o)(4) 
of the Implementation Act establishes that the President may restrict 
the quantity of, or remove a fabric, yarn, or fiber from the list, if 
it has been added to the list in an unrestricted quantity or has had a 
restriction eliminated, if he determines that the fabric, yarn, or 
fiber has become available in commercial quantities in a timely manner.
    In Proclamation No. 8894 (77 FR 66507, November 5, 2012), the 
President delegated to CITA his authority under the commercial 
availability provision to establish procedures for modifying the list 
of fabrics, yarns, or fibers not available in commercial quantities in 
a timely manner, as set out in Annex 3.25 of the US-Panama TPA.
    Pursuant to that delegation, CITA provides below its interim 
procedures governing the submission of requests under Section 203(o)(4) 
set forth in the Implementation Act. As of May 14, 2013, CITA intends 
to use these procedures to process requests for modifying the list of 
fabrics, yarns, or fibers not available in commercial quantities. CITA 
intends to publish its final procedures after considering any public 
comments received pursuant to its request for comments.

Interim Procedures

1. Introduction

    The intent of these procedures is to foster trade in U.S. and 
Panamanian textile and apparel articles by allowing non-originating 
fibers, yarns, or fabrics to be placed on or removed from a list of 
items not available in commercial quantities in a timely manner, and in 
a manner that is consistent with normal business practice. To this end, 
these procedures are intended to facilitate the transmission, on a 
timely basis, of requests for commercial availability determinations 
and offers to supply the products that are the subject of the requests; 
have the market indicate the availability of the supply of products 
that are the subject of requests; make available promptly, to 
interested entities and parties, information regarding the requests for 
products and offers to supply received; ensure wide participation by 
interested entities and parties; provide careful scrutiny of 
information provided to substantiate order requests and response to 
supply offers; and provide timely public dissemination of information 
used by CITA in making commercial availability determinations.

2. Definitions

    (a) Commercial Availability Request. A Commercial Availability 
Request (``Request'') is a request for a commercial availability 
determination submitted by an interested entity requesting that CITA 
place a good on the Commercial Availability List in

[[Page 28199]]

Annex 3.25 of the US-Panama TPA in a restricted or unrestricted 
quantity because that fiber, yarn, or fabric is not available in 
commercial quantities in a timely manner from a US-Panama TPA supplier.
    (b) Commercial Availability List. The Commercial Availability List 
is the list of products (fibers, yarns, and/or fabrics) in Annex 3.25 
of the US-Panama TPA that have been determined to be not commercially 
available from US-Panama TPA suppliers in commercial quantities in a 
timely manner.
    (c) Fiber, Yarn, or Fabric. The terms ``fiber, yarn, or fabric'' 
mean a single product or a range of products, which meet the same 
specifications provided in a submission, and which may be only part of 
a Harmonized Tariff Schedule of the United States (``HTSUS'') 
classification.
    (d) Interested Entity. An ``interested entity'' means the 
government of Panama, a potential or actual purchaser of a textile or 
apparel good, or a potential or actual supplier of a textile or apparel 
good. CITA recognizes that a legal or other representative may act on 
behalf of an interested entity. See Section 203(o)(4)(B)(i) of the 
Implementation Act.
    (e) Interested Party. An ``interested party'' means any interested 
person that requests to be included on the email notification list for 
commercial availability proceedings. Any interested person may become 
an interested party by contacting CITA either by sending an email to 
OTEXA_PANAMA@trade.gov, or through the Web site dedicated to 
commercial availability proceedings under the US-Panama TPA (``Web 
site''). The Web site is located on the U.S. Department of Commerce's 
Office of Textile and Apparel Web site (https://otexa.ita.doc.gov), 
under ``Commercial Availability''/``Panama TPA.''
    (f) Official Receipt. The ``official receipt'' is CITA's email 
confirmation that it has received both the electronic version and the 
original submission signed by the interested entity delivered via 
express courier.
    (g) Rebuttal Comment. A ``Rebuttal Comment'' (``Rebuttal'') is a 
submission from an interested entity providing information in response 
to evidence or arguments raised in a Response. A Rebuttal must be 
limited to evidence and arguments provided in a Response.
    (h) Request to Remove or Restrict. A ``Request to Remove or 
Restrict'' is a submission from an interested entity requesting that 
CITA either remove a product or that a quantity restriction be 
introduced, made no sooner than six months after a product has been 
added to the Commercial Availability List in Annex 3.25 of the US-
Panama TPA in an unrestricted quantity pursuant to Section 203(o)(4) of 
the Implementation Act.
    (i) Requestor. The ``Requestor'' refers to the interested entity 
that files a Commercial Availability Request or a Request to Remove or 
Restrict, under the commercial availability provision of the US-Panama 
TPA, for CITA's consideration.
    (j) Response with an Offer to Supply. A ``Response with an Offer to 
Supply'' (``Response'') is a submission from an interested entity to 
CITA objecting to the Commercial Availability Request and asserting its 
ability to supply the subject product by providing an offer to supply 
the subject product described in the Request.
    (k) U.S. Business Day. A ``U.S. business day'' is any calendar day 
other than a Saturday, Sunday, or a legal holiday observed by the 
Government of the United States. See section 203(o)(4)(B)(ii) of the 
Implementation Act.
    (l) US-Panama TPA Supplier. A ``US-Panama TPA Supplier'' is a 
potential or actual supplier of a textile or apparel good of a 
producer.

3. Submissions for Participation in a US-Panama TPA Commercial 
Availability Proceeding

    (a) Filing a Submission. All submissions in a US-Panama TPA 
commercial availability proceeding (e.g., Request, Response, Rebuttal, 
and Request to Remove or Restrict) must be in English. If any 
attachments are in a language other than English, then a complete 
translation must be provided. Each submission must be submitted to the 
Chairman of CITA, in care of the U.S. Department of Commerce's Office 
of Textiles and Apparel (``OTEXA'') in two forms: email and an original 
signed submission.
    (1) An electronic version of the submission must be either in PDF, 
Word, or Word-Perfect format, must contain an adequate public summary 
of any business confidential information and the due diligence 
certification, and be sent to OTEXA_PANAMA@trade.gov. The electronic 
version of the submission will be posted for public review on the US-
Panama TPA commercial availability Web site. No business confidential 
information should be submitted in the electronic version of any 
document.
    (2) The original signed submission must be received via express 
courier to--Chairman, Committee for the Implementation of Textile 
Agreements, Room 30003, U.S. Department of Commerce, 14th and 
Constitution Ave. NW., Washington, DC 20230. Any business confidential 
information upon which an interested entity wishes to rely must be 
included in the original signed submission only. Except for the 
inclusion of business confidential information and corresponding public 
summary, the two versions of a submission should be identical.
    (3) Brackets must be placed around all business confidential 
information contained in submissions. Documents containing business 
confidential information must have a bolded heading stating 
``Confidential Version.'' Attachments considered business confidential 
information must have a heading stating ``Business Confidential 
Information.'' Documents, including those submitted electronically, 
provided for public release, must have a bolded heading stating 
``Public Version'' and all the business confidential information must 
be deleted and substituted with an adequate public summary.
    (4) Generally, details such as quantities and lead times for 
providing the subject product can be treated as business confidential 
information. However, the names of US-Panama TPA suppliers who were 
contacted, what was asked generally about the capability to manufacture 
the subject product, and the responses thereto should be included in 
public versions, which will be made available to the public.
    (b) Due Diligence Certification. An interested entity must file a 
certification of due diligence as described in subsection (b)(1) with 
each submission, both electronic and original signed versions, 
containing factual information. If the interested entity has legal 
counsel or other representation, the legal counsel or other 
representative must also file a certification of due diligence as 
described in subsection (b)(2) with each submission, both electronic 
and original signed versions, containing factual information. Accurate 
representations of material facts submitted to CITA for the US-Panama 
TPA commercial availability proceeding are vital to the integrity of 
this process and are necessary for CITA's effective administration of 
the statutory scheme. Each submission containing factual information 
for CITA's consideration must be accompanied by the appropriate 
certification regarding the accuracy of the factual information. Any 
submission that lacks the applicable certifications will be considered 
an incomplete submission that CITA will reject and return to the 
submitter. CITA may verify any factual information submitted by 
interested entities in a US-Panama TPA commercial availability 
proceeding.

[[Page 28200]]

    (1) For the person responsible for presentation of the factual 
information: I, (name and title), currently employed by (interested 
entity), certify that (1) I have read the attached submission, and (2) 
the information contained in this submission is, to the best of my 
knowledge, complete and accurate.
    (2) For the person's legal counsel or other representative: I, 
(name), of (law or other firm), counsel or representative to 
(interested entity), certify that (1) I have read the attached 
submission, and (2) based on the information made available to me by 
(person), I have no reason to believe that this submission contains any 
material misrepresentation or omission of fact.
    (c) Official Receipt. A submission will be considered officially 
submitted to CITA only when both the electronic version and the 
original signed submission have been received by CITA. For Requests, 
CITA will confirm to the requestor that both versions of the Request 
were received through an email confirmation. CITA's email confirmation 
shall be considered the ``official receipt'' of the Request, and also 
begins the statutory 30 U.S. business-day process for CITA 
consideration of Requests. CITA will confirm official receipt of any 
Response and Rebuttal by posting the submissions on the US-Panama TPA 
commercial availability Web site.

4. Submitting a Request for Consideration in a Commercial Availability 
Proceeding

    (a) Commercial Availability Request. An interested entity may 
submit a Request to CITA alleging that a fiber, yarn, or fabric is not 
available in commercial quantities in a timely manner from a US-Panama 
TPA supplier.
    (b) Contents of a Commercial Availability Request.
    (1) Detailed Product Information. The Request must provide a 
detailed description of the subject product, including, if applicable, 
fiber content, construction, yarn size, and finishing processes; and 
the classification of the product under the HTSUS. All measurements in 
the entire submission must be stated in metric units. If the English 
count system is used in any part, then a conversion to metric units 
must be provided. The description must include reasonable product 
specifications, including, if applicable, fiber content, construction, 
yarn size, and finishing processes, as well as timelines and 
quantities. Reasonable product specifications include the use of 
accepted terminology and standards, such as those used by the American 
Society for Testing and Materials (``ASTM'') or the American 
Association of Textile Chemists and Colorists (``AATCC'').
    If any aspect of the Request is outside the normal course of 
business (e.g., tight deadline, higher standards of performance, 
requirements to match existing specifications), requestors must provide 
US-Panama TPA suppliers with detailed explanations and measurable 
criteria for the specification or term at issue. In the course of its 
review of the Request, CITA will consider record evidence to determine 
whether such specifications and terms are reasonable.
    The requestor must clearly describe the unique characteristics of 
the subject product that distinguishes it from other similar or 
potentially substitutable products. In addition, the requestor must 
also explain why such characteristics are required for the purposes of 
the end-use of the product and cannot be substituted by another 
product. However, all characteristics and specifications must be 
supported by measurable criteria.
    (2) Quantity. The Request must provide the specific quantity of the 
product needed by the requestor, in standard units of quantity for 
production of the subject product in the United States or Panama.
    (3) Due Diligence. The Request must provide a complete description 
of the due diligence undertaken by the requestor to determine the 
subject product's availability in the United States or Panama. Due 
diligence for the requestor means it has made reasonable efforts to 
obtain the subject product from US-Panama TPA suppliers.
    (i) Generally: The requestor must provide the names and addresses 
of suppliers contacted, who (by name and position) was specifically 
contacted, the exact request that was made, the dates of those 
contacts, whether a sample of the subject product was provided for 
review, and the exact response given for the supplier's inability to 
supply the subject product under the same conditions as contained in 
the Request submitted to CITA, in addition to any other information the 
requestor believes is relevant. The requestor must submit copies or 
notes of relevant correspondence, both inquiries and responses, with 
these suppliers. Relevant correspondence includes notes of telephone 
conversations.
    (ii) Identification of US-Panama TPA suppliers: Requestors must 
make reasonable efforts to identify US-Panama TPA suppliers in the 
United States or Panama. Requestors should identify US-Panama TPA 
suppliers through a number of means, including the requestor's 
knowledge of the industry, industry directories, and industry 
association memberships. However, an email from a requestor with a 
general inquiry to all manufacturers in the United States or Panama may 
not constitute due diligence. Rather, reasonable efforts must be taken 
to identify US-Panama TPA suppliers who are generally known to produce 
the class or type of product at issue. Requestors must provide an 
explanation in their Request as to why their efforts to identify US-
Panama TPA suppliers were reasonable given the product at issue.
    (iii) Use of Third Parties and Business-to-Business Contact: Due 
diligence includes substantive and direct contact, indicating a 
legitimate intent to do business, between requestors and US-Panama TPA 
suppliers. Third party communications are no substitute for meaningful 
dialogue between appropriate officials. Once interest is expressed 
between requestors and US-Panama TPA suppliers, subsequent 
communications should be conducted by appropriate officials of the 
requestor and US-Panama TPA supplier based on normal business practice. 
A lack of appropriate business-to-business contact may be deemed as 
insufficient due diligence.
    (iv) Description of the Subject Product: In undertaking due 
diligence, requestors must provide a detailed description of the 
product to US-Panama TPA suppliers. The description must include 
reasonable product specifications, including, if applicable, fiber 
content, construction, yarn size, and may include a finishing process 
or operation, as well as timelines and quantities. Reasonable product 
specifications include the use of accepted terminology and standards, 
such as those used by ASTM or AATCC. If any aspect of the Request is 
outside the normal course of business (e.g., tight deadline, higher 
standards of performance, requirements to match existing 
specifications), requestors must provide US-Panama TPA suppliers with 
detailed explanations and measurable criteria for the specification or 
term at issue that would render such aspects as reasonable for the 
product in question. CITA will consider record evidence to determine 
whether such specifications and terms are reasonable.
    (v) Provision of Samples: In undertaking its due diligence, a 
requestor must clearly communicate to US-Panama TPA suppliers its 
standard business practice with respect to the provision of samples. 
While requestors may request a sample, a US-Panama TPA supplier is not 
required to provide

[[Page 28201]]

a sample under CITA's procedures. However, CITA notes that US-Panama 
TPA suppliers must meet certain requirements with respect to the 
provision of samples and/or information demonstrating their ability to 
supply the subject product in commercial quantities in a timely manner. 
See Section 6(b)(3) and Section 6(b)(4).
    (vi) Substitutability of Products: In undertaking its due 
diligence, a requestor must clearly communicate information regarding 
the substitutability of the product in question to US-Panama TPA 
suppliers. In its inquiries to US-Panama TPA suppliers, the requestor 
must clearly describe the unique characteristics of the subject product 
that distinguishes it from other similar or potentially substitutable 
products. In addition, the requestor must provide US-Panama TPA 
suppliers with information why such characteristics are required for 
the purposes of the end-use of the product and cannot be substituted by 
another product. However, all characteristics and specifications must 
be supported by measurable criteria. If, in the course of due 
diligence, a US-Panama TPA supplier proposes a substitutable product, 
the requestor must provide reasonable justifications to the US-Panama 
TPA supplier for rejecting potentially substitutable products.
    (vii) Treatment of Business Confidential Information: Specific 
details of correspondence with suppliers, such as quantities and lead 
times for providing the subject product, can be treated as business 
confidential information. However, the names of US-Panama TPA suppliers 
who were contacted, what was asked generally about the capability to 
manufacture the subject product, and the responses thereto should be 
available for public review to ensure proper public participation in 
the process. ``Lead times'' refers to supplying the subject product 
within normal business time frames for the subject product once an 
order is received. Specific delivery dates are not necessary. Required 
delivery dates that fall within the time needed to complete the 
commercial availability determination process are not acceptable.
    (4) Substitutable Products. The Request must provide information on 
whether the requestor believes that other products supplied by the US-
Panama TPA supplier are not substitutable in commercial quantities in a 
timely manner for the product(s) that is (are) the subject of the 
Request for purposes of the intended use. Clearly describe the unique 
characteristics of the subject product that distinguishes it from other 
similar or potentially substitutable products. Describe why such 
characteristics are required for the purposes of the end-use of the 
product and cannot be substituted by another product available from a 
US-Panama TPA supplier.
    (5) Additional Information. The Request may provide any additional 
evidence or information believed to be relevant for CITA to determine 
whether a fiber, yarn, or fabric is not available in commercial 
quantities in a timely manner from a supplier in the United States or 
Panama.

5. Consideration and Acceptance of a Request

    In considering whether to accept a Request, CITA will consider and 
determine whether the Request provides all the required information 
specified in Sections 3 and 4 of these Procedures. CITA will determine 
whether to accept the Request for consideration and investigation not 
later than two U.S. business days after the official receipt of a 
Request.
    (a) Request Rejected. If CITA determines that the Request does not 
contain the required information, the requestor will be notified 
promptly by email that the Request has not been accepted and the 
reasons for the rejection. A Request may be resubmitted with additional 
information for the subject product and CITA will reevaluate it as a 
new Request.
    (1) Requests for Downstream Products with Inputs Not Commercially 
Available. If, in its initial review of a Request, CITA determines that 
a subject product would be commercially available but for the 
commercial unavailability of a certain input of the subject product, 
CITA will reject the Request. The requestor may submit a Request for 
the input in question rather than the downstream product.
    (2) Requests for Products with Prohibited Inputs, Specifications, 
and/or Processes. If, in its initial review of a Request, CITA 
determines that the subject product requires inputs, specifications, 
and/or processes that are prohibited under the laws and regulations of 
the United States, CITA will reject the Request if there is a 
substitute product that does not require such prohibited inputs, 
specifications, or processes.
    (b) Request Accepted. If CITA determines that the Request contains 
the required information, CITA will notify interested parties by email 
that a Request has been accepted and filed and will assign a File 
Number. CITA will post the accepted Request on its Web site for public 
notice. The email notification and the Web site posting will indicate 
the calendar date deadlines for submitting Responses and Rebuttals.

6. Submitting a Response With an Offer To Supply

    Responses must meet the requirements outlined in Section 3 of these 
Procedures. General comments in support of or opposition to a Request 
do not meet the requirements of a Response. A Due Diligence 
Certification must accompany a Response.
    (a) Response With an Offer to Supply Submission. An interested 
entity (a US-Panama TPA supplier) may file a Response to a Request CITA 
accepted advising CITA of its objection to the Request and its ability 
to supply the subject product by providing an offer to supply the 
subject product as described in the Request. An interested entity will 
have 10 U.S. business days after official receipt of a Request to 
respond to a Request. If good cause is shown, CITA may extend this 
deadline.
    (b) Contents of a Response with an Offer to Supply.
    (1) File Number. The Response must reference the CITA File Number 
assigned to the particular Request being addressed.
    (2) Quantity. The Response must supply the quantity of the subject 
product that the respondent is capable of currently supplying, in 
standard units of quantity. All measurements must be in metric units. 
If the English count system is used in any part, then a conversion to 
metric units must be provided.
    (3) Production Capability/Demonstration of Ability to Supply. A 
Response must contain information supporting the claim to supply the 
subject product, or one substitutable, in commercial quantities in a 
timely manner.
    (i) The Response must report the quantity, in metric units, that 
the US-Panama TPA supplier produced of the subject product, or a 
substitutable product, in the preceding 24-month period.
    (ii) For products that have experienced cyclical demand or are not 
currently produced, the US-Panama TPA supplier must indicate the 
quantity that has been supplied or offered commercially in the past, 
with an explanation of the reasons it is not currently produced or 
offered.
    (iii) If the subject product involves a new style, weight, or other 
variation that is new to the market or new to the US-Panama TPA 
supplier, then the supplier must provide detailed information on its 
current ability to make the subject

[[Page 28202]]

product in commercial quantities in a timely manner. Such information 
could include current production capacity, current loom availability, 
and standard timetables to produce.
    (iv) A US-Panama TPA supplier may support its claim to be able to 
produce the subject product through provision of a sample meeting 
exactly the specifications as presented in the Request. However, the 
provision of a sample is not required. Regardless of whether a sample 
is provided, a respondent must demonstrate its ability to produce the 
subject product by providing sufficient relevant information regarding 
their production capability. Such information could include past 
production of similar products and/or descriptions of equipment and 
identification of suppliers necessary to produce the subject product. 
If some operations, such as finishing, will be completed by other 
entities, the name of the facility and contact information must be 
provided.
    (v) The Response may provide, if relevant, the basis for the US-
Panama TPA supplier's rationale that other products that are supplied 
by the US-Panama TPA supplier in commercial quantities in a timely 
manner are substitutable for the subject product(s) for purposes of the 
intended use, supported by measurable criteria.
    (vi) In its review of a Response, CITA will consider whether the 
US-Panama TPA supplier was responsive to the efforts employed by the 
requestor to obtain the subject product in the course of due diligence. 
In the event that a US-Panama TPA supplier was not responsive, a US-
Panama TPA supplier must provide a reasonable explanation in its 
Response as to why it did not respond to earlier inquiries by the 
requestor in the course of due diligence. CITA will reject a Response 
if it does not include such explanation.
    (4) Due Diligence. The Response must provide a complete description 
of the due diligence undertaken by the US-Panama TPA supplier to 
substantiate the ability to supply the subject product. If a US-Panama 
TPA supplier has participated in the requestor's undertaking of due 
diligence, the supplier must provide certain information in response to 
the requestor's inquiries.
    (i) If a US-Panama TPA supplier has been responsive to a requestor 
in the undertaking of due diligence, the US-Panama TPA supplier must 
have stated its ability to supply or not supply the subject product. If 
the product can be supplied, the response to the inquiry must contain 
information supporting the US-Panama TPA supplier's claim to supply the 
subject product, or one substitutable, in commercial quantities in a 
timely manner.
    (ii) If a US-Panama TPA supplier offers to supply the subject 
product, the supplier may support its offer by reporting the quantity, 
in metric units, that it has produced of the subject product, or a 
substitutable product, in the preceding 24-month period. If the US-
Panama TPA supplier does not provide such information, it must, subject 
to section 6(b)(4)(vii), explain why the information it has provided 
sufficiently supports its offer to supply.
    (iii) In response to a requestor's inquiry, for products that have 
experienced cyclical demand or are not currently produced, the US-
Panama TPA supplier must provide the requestor the quantity that has 
been supplied or offered commercially in the past, with an explanation 
of the reasons it is not currently produced or offered.
    (iv) If the subject product involves a new style, weight, or other 
variation that is new to the market or new to the US-Panama TPA 
supplier, then the supplier must provide detailed information on its 
current ability to make the subject product in commercial quantities in 
a timely manner. Such information could include current production 
capacity, current loom availability, and standard timetables to produce 
the subject product.
    (v) A US-Panama TPA supplier may support its claim to be able to 
produce the subject product through provision of a sample meeting the 
specifications as presented in an inquiry. However, the provision of a 
sample is not required. Regardless of whether a sample is provided, the 
US-Panama TPA supplier must demonstrate its ability to produce the 
subject product by providing sufficient relevant information regarding 
their production capability. Such information could include past 
production of similar products and/or descriptions of equipment and 
identification of suppliers necessary to produce the subject product. 
If some operations, such as finishing, will be completed by other 
entities, the name of the facility and contact information must be 
provided.
    (vi) A response to a requestor's inquiry must provide, as 
applicable, the basis for the US-Panama TPA supplier's rationale that 
other products that are supplied by the US-Panama TPA supplier in 
commercial quantities in a timely manner are substitutable for the 
subject product for purposes of the intended use, supported by 
measurable criteria.
    (vii) Nothing in these procedures shall require any US-Panama TPA 
supplier to provide business confidential or other commercially 
sensitive information to a requestor. However, a US-Panama TPA supplier 
must provide the requestor a reasonable explanation why such 
information was not provided and why the information it has provided 
sufficiently supports its offer to supply.
    (5) Location of the US-Panama TPA supplier. The Response must 
provide the name, address, phone number, and email address of a contact 
person at the facility claimed to be able to supply the subject 
product.

7. Submitting a Rebuttal Comment

    A Rebuttal must meet the requirements outlined in Section 3 of 
these procedures. General comments in support of or opposition to a 
Request or a Response do not meet the requirements of a Rebuttal. A Due 
Diligence Certification must accompany a Rebuttal.
    (a) Rebuttal Comment. Any interested entity may submit a Rebuttal 
to a Response. An interested entity must submit its Rebuttal not later 
than 4 U.S. business-days after the deadline for Response. If good 
cause is shown, CITA may extend the time limit.
    (b) Contents of a Rebuttal. The Rebuttal Comment may respond only 
to evidence or arguments raised in the Response and must identify the 
Response, evidence and/or arguments to which it is responding. The 
Rebuttal must reference the CITA File Number assigned to the particular 
Request being addressed.

8. Determination Process

    (a) Not later than 30 U.S. business days after official receipt of 
a Request (or not later than 44 U.S. business days where an extension 
is provided), CITA will notify interested entities by email and will 
post a notice on its Web site whether the subject product is available 
in commercial quantities in a timely manner in the United States or 
Panama and whether an interested entity has objected to the Request.
    (b) CITA will notify the public of the determination by publication 
in the Federal Register when the determination results in a change to 
the Commercial Availability List in Annex 3.25 of the US-Panama TPA.
    (c) Types of Determinations.
    (1) Denial. A denial means that CITA has determined that the 
subject product is available in commercial quantities in a timely 
manner in the United States or Panama. If a Request is denied, notice 
of the denial will be posted on the US-

[[Page 28203]]

Panama TPA Commercial Availability Web site.
    (i) Denial of Requests for Downstream Products with Inputs Not 
Commercially Available: If, during the course of its review of a 
Request, CITA determines that the subject product is commercially 
available but for the commercial unavailability of a certain input of 
the subject product, CITA will deny the Request. The requestor may 
submit a Request for the input in question rather than the downstream 
product.
    (ii) Denial of Requests for Products with Prohibited Inputs, 
Specifications, and/or Processes: If, during the course of its review 
of a Request, CITA determines that the subject product requires inputs, 
specifications, and/or processes that are prohibited under the laws and 
regulations of the United States, CITA will deny the Request if there 
is a substitute product that does not require such prohibited inputs, 
specifications, or processes.
    (2) Approval in Unrestricted Quantity. An approval in unrestricted 
quantities means that CITA has determined that the subject product is 
not available in commercial quantities in a timely manner in the United 
States or Panama or that no interested entity has objected to the 
Request.
    If a Request is approved without restriction, a notice will be 
published in the U.S. Federal Register not later than 30 U.S. business 
days (or not more than 44 U.S. business days where an extension is 
provided) after the official receipt of a Request, adding the subject 
product to the Commercial Availability List in Annex 3.25 of the US-
Panama TPA. The effective date of the determination is the date of 
publication of the notice in the U.S. Federal Register.
    (3) Approval in a Restricted Quantity.
    (i) Approval in a Restricted Quantity: An Approval in a Restricted 
Quantity means that CITA has determined to add the subject product to 
the Commercial Availability List in Annex 3.25 of the US-Panama TPA 
with a specified restricted quantity. CITA may approve the Request in a 
restricted quantity if CITA determines that a US-Panama TPA supplier(s) 
can partially fulfill the Request for the subject product. The 
restricted quantity specifies the amount of the subject product that 
can be provided by a US-Panama TPA supplier(s).
    (A) If a Request is approved in a restricted quantity, a notice 
will be published in the Federal Register not later than 30 U.S. 
business days (or not more the 44 U.S. business days where an extension 
is provided) after official receipt of the Request, adding the subject 
product to the Commercial Availability List in Annex 3.25 of the US-
Panama TPA with a specified restricted quantity. The restricted 
quantity specifies the amount of the subject product that can be 
provided by a US-Panama TPA supplier(s).
    (B) The effective date of the determination will be the date of 
publication in the U.S. Federal Register.
    (ii) Elimination of a restricted quantity: Not later than six 
months after adding a product to the Commercial Availability List in 
Annex 3.25 of the US-Panama TPA in a restricted quantity, CITA may 
eliminate the restriction if it determines that the subject product is 
not available in commercial quantities in a timely manner in the United 
States or Panama. See Section 203(o)(4)(C)(vi) of the Implementation 
Act.
    (A) The determination that the subject product is not available in 
commercial quantities in a timely manner will be based upon whether the 
restricted quantity has been provided by a US-Panama TPA supplier(s). 
CITA will solicit comments and information from the US-Panama TPA 
supplier(s) and the requestor.
    (B) If the US-Panama TPA supplier(s) are still capable of providing 
the restricted quantity, the restriction will remain.
    (C) If the US-Panama TPA supplier(s) are unable to provide the 
restricted quantity, CITA will eliminate the quantity restriction. CITA 
will publish a notice in the U.S. Federal Register, and post on the Web 
site, that the quantity restriction is eliminated and the subject 
product is added to the Commercial Availability List in Annex 3.25 of 
the US-Panama TPA in an unrestricted quantity. The effective date of 
the determination will be the date of publication in the U.S. Federal 
Register.
    (4) Insufficient Information to Determine. CITA will extend its 
time period for consideration of the Request by an additional 14 U.S. 
business days in the event that CITA determines, not later than 30 U.S. 
business days after official receipt of a Request, that it has 
insufficient information to make a determination regarding the ability 
of a US-Panama TPA supplier to supply the subject products of the 
Request based on the submitted information. CITA will normally 
determine that it does not have sufficient information to make a 
determination on a Request when CITA finds there is inconsistency in 
material information contained in the Request, one or more Responses, 
and/or the Rebuttal(s). CITA will notify interested parties via email 
that it has extended the time period for CITA's consideration by 14 
U.S. business days. CITA also will announce the extension on the Web 
site for US-Panama TPA commercial availability proceedings.
    (i) Process during Extension Period: During the extended time 
period, CITA will request that interested entities provide additional 
evidence to substantiate the information provided, and may initiate a 
meeting with interested entities. Such evidence may include, inter 
alia, product samples, lab tests, detailed descriptions of product 
facilities, and comparisons of product performance in the intended end-
use of the subject product. Any samples, if requested, of fibers, 
yarns, or fabrics, that are provided to CITA will be made available for 
public inspection at the Office of Textiles and Apparel, Room 30003, 
U.S. Department of Commerce, 14th St. and Constitution Ave. NW., 
Washington, DC 20230. All written submissions must follow instructions 
described in Section 3 of these procedures. Samples should be 
identified with a cover sheet that describes the specifications of the 
sample and be identical to the specifications of the Request. If CITA 
conducts a meeting, it will comply with requirements to conduct 
proceedings in an open manner.
    (ii) CITA also will consider evidence in support of claims that US-
Panama TPA supplier(s) can supply a substantially similar product to 
that specified in the Request.
    (ii) CITA will make a determination, not later than 44 U.S. 
business days after the official receipt of a Request whether to 
approve, approve with restriction, or deny the Request and will follow 
the notification process accordingly.
    (5) Deemed Approval. In the event that CITA does not make a 
determination in response to a Request to add a product to the 
Commercial Availability List in Annex 3.25 of the US-Panama TPA within 
the statutory deadlines provided, not later than 45 U.S. business days 
after the official receipt of the Request or not later than 60 U.S. 
business days after the official receipt of the Request that was 
determined to lack sufficient information pursuant to Section 8(c)(4) 
of these Procedures, the requested subject product shall be added to 
the Commercial Availability List in Annex 3.25 of the US-Panama TPA, in 
an unrestricted quantity, in accordance with the requirements of 
section 203(o)(4)(D) of the Implementation Act. CITA will notify the 
public of the deemed approval by publication in the Federal Register 
and posting on OTEXA's Web site.

[[Page 28204]]

9. Submitting a Request To Remove or Restrict

    (a) Request to Remove or Restrict. No earlier than six months after 
a product has been added to the Commercial Availability List in Annex 
3.25 of the US-Panama TPA in an unrestricted quantity pursuant to 
Sections 203(o)(2), 203(o)(4)(C)(iii) or (vi), or 203(o)(4)(D) of the 
Implementation Act, an interested entity may submit a request to CITA 
requesting that a product be either removed from the List in Annex 3.25 
or that a quantity restriction be introduced. See Section 
203(o)(4)(E)(i) of the Implementation Act.
    (b) Content of a Request to Remove or Restrict. The Request to 
Remove or Restrict must provide the substantive information set forth 
in Section 6(b) (Contents of a Response with an Offer to Supply) of 
these procedures.
    (c) Procedures.
    (1) In considering whether to accept a Request to Remove or 
Restrict, CITA will follow procedures set forth in Section 5 
(Consideration and Acceptance of a Request) of these procedures.
    (2) If CITA determines to accept the Request to Remove or Restrict, 
CITA and any responding interested entity shall follow applicable 
procedures and contents set forth in subsection 6(a) (Response with an 
Offer to Supply) and Section 7 (Submitting a Rebuttal Comment) of these 
procedures.
    (3) As set forth in subsections 8(a) and (b) (Determination 
Process) of these procedures, CITA will determine whether the subject 
product of the Request to Remove or Restrict is available in commercial 
quantities in a timely manner from a US-Panama TPA supplier not later 
than 30 U.S. business days after the official receipt of the Request to 
Remove or Restrict.
    (i) If CITA determines that the product is available in commercial 
quantities in a timely manner in the United States or Panama, then that 
product will be removed from the Commercial Availability List in Annex 
3.25 of the US-Panama TPA.
    (ii) If CITA determines that the product is available in restricted 
quantities in a timely manner in the United States or Panama, then a 
restricted quantity will be introduced for that product.
    (iii) If the Commercial Availability List in Annex 3.25 of the US-
Panama TPA changes as a result of CITA's determination for the Request 
to Remove or Restrict, CITA will notify interested parties by email of 
its determination and will publish a notice of its determination for 
the Request to Remove or Restrict in the U.S. Federal Register.
    (A) For removal, the notice of determination will state that 
textile and apparel good containing the subject product are not to be 
treated as originating in either the United States or Panama if the 
subject product is obtained from sources outside the United States or 
Panama, effective for goods entered into the United States on or after 
six months (i.e., 180 calendar days) after the date of publication of 
the notice. See Section 203(o)(4)(E)(iv) of the Implementation Act.
    (B) For restriction, the notice of determination will specify the 
restricted quantity for the subject product that is to be effective on 
or after six months (i.e., 180 calendar days) after the publication 
date of the notice. See Section 203(o)(4)(E)(iv) of the Implementation 
Act.

Request for Comments on the Interim Procedures

    Comments must be received no later than June 13, 2013, and in the 
following format:
    (1) Comments must be in English.
    (2) Comments must be submitted electronically OR in hard copy, with 
original signatures.
    (3) Comments submitted electronically must be either in PDF, Word, 
or Word-Perfect format, and sent to the following email address: 
OTEXA_PANAMA@trade.gov. Comments submitted electronically will be 
posted for public review on the Web site dedicated to US-Panama TPA 
commercial availability proceedings.
    (4) Comments submitted in hard copy must be original signed 
documents and must be mailed to the Chairman, Committee for the 
Implementation of Textile Agreements, Room 30003, U.S. Department of 
Commerce, 14th and Constitution Avenue NW., Washington, DC 20230. 
Comments submitted in hard copy will be made available for public 
inspection at the Office of Textiles and Apparel, Room 30003, U.S. 
Department of Commerce, 14th and Constitution Avenue NW., Washington, 
DC, between the hours of 8:30 a.m. and 5:00 p.m. on business days. In 
addition, comments submitted in hard copy will also be posted for 
public review on the Web site dedicated to US-Panama TPA commercial 
availability proceedings.

Kim Glas,
Chairman, Committee for the Implementation of Textile Agreements.
[FR Doc. 2013-11455 Filed 5-13-13; 8:45 am]
BILLING CODE 3510-DS-P