CITA Outlines Procedures for Colombia TPA Textile & Apparel Safeguard Actions
The Committee for the Implementation of Textile Agreements outlined the procedures it will follow in considering requests to impose U.S.-Colombia Trade Promotion Agreement safeguard actions (in the form of higher duty rates) on textile and/or apparel products from Colombia. The interim rule is effective Oct. 26, but CITA is asking for comments on the procedures by Nov. 26.
CITA said the safeguard is available when, as a result of the elimination of duties under the U.S.-Colombia TPA, a Colombian textile or apparel article benefiting from preferential tariff treatment is being imported into the U.S. in such increased quantities as to cause serious damage or the threat of damage to a U.S. industry producing a like or directly competitive article.
Three Year Maximum; Rate Cannot Exceed MFN Rate
The safeguard would last for two years, and may be extended for one year, for a maximum of three years of higher duties. The rise in duties cannot exceed the lesser of the U.S. Most Favored Nation (column 1) tariff rate for the article at the time the safeguard is imposed, or the U.S. MFN (column 1) tariff rate for the article on the day before the U.S. Colombia TPA entered into force (May 14, 2012).
Safeguard Mechanism Expires on May 15, 2017; U.S. Must Provide Compensation
CITA’s authority to impose safeguards on Colombian textiles and apparel will expire five years after May 15, 2012, the date on which the Colombia TPA entered into force. In addition, if a Colombia TPA safeguard is imposed, the U.S. must provide Colombia “mutually agreed” trade liberalizing compensation in the form of concessions having equivalent trade effects or equivalent to the value of the additional duties expected to result from the safeguard measure. These concessions will be limited to textile and apparel products, unless the U.S. and Colombia agree otherwise.
Procedures for Requesting and Imposing a Colombia TPA Safeguard Duty Rate
CITA’s notice outlines the procedures for requesting and imposing a safeguard duty rate on a textile and/or apparel product from Colombia, highlights of which include:
Requests may be filed by interested parties. An interested party may file a request with CITA for a Colombia TPA safeguard duty rate on a textile and/or apparel product from Colombia. CITA considers an interested party to be an entity that is representative of a domestic producer(s) of an article (or a component used in the production of an article) that is like or directly competitive with the subject textile and/or apparel article from Colombia. After the request is filed, CITA must determine whether the request provides the information necessary for its consideration within 15 working days of its receipt.
Requests must include certain specified information such as product description; import, production, and market share data; and additional data or estimates showing serious damage or actual threat thereof.
CITA may also, on its own initiative, begin an investigation to determine whether to impose a safeguard on Colombian textiles or apparel.
CITA to seek public comments. Whether the safeguard investigation begins because of a petition from domestic industry to a CITA self-initiation, CITA will publish a Federal Register notice seeking public comments. The comment period will be 30 days. CITA may also provide an additional time period for rebuttals, clarifications, or corrections as necessary.
CITA to make determination of serious damage/threat. CITA said it will make its final determination within 60 calendar days of the close of the comment period, but may extend the deadline by publishing a notice in the Federal Register.
In the event of an affirmative determination, CITA may provide import tariff relief to a U.S. industry. The import tariff relief is effective beginning on the date that CITA’s affirmative determination is published in the Federal Register. The maximum period of import tariff relief is three years. If CITA makes a negative determination, its negative determination and an explanation will be published in the Federal Register.
(See CITA notice for information on the maintenance of an official record for each request, the portions that will be made public, etc.)
(See ITT’s Online Archives 12051815 for summary of proclamations implementing the Colombia TPA in the Harmonized Tariff Schedule. See ITT’s Online Archives 12051824 for summary of CBP Colombia TPA instructions, and 12092504 for summary of CBP interim rule implementing Colombia TPA customs provisions.)
CITA Contact -- Laurie Mease (202) 482-3400