CITA Issues Procedures for Peru TPA Textile & Apparel Safeguard Actions
The Committee for the Implementation of Textile Agreements has outlined the procedures it will follow in considering requests from interested parties to impose U.S.-Peru Trade Promotion Agreement1 safeguard actions (in the form of higher duty rates) on textile and/or apparel products from Peru that are being imported in such increased quantities to cause or threaten serious damage to a U.S. industry producing a like or directly competitive article.
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(Similar safeguard actions are also available under other FTAs, such as the Oman FTA.)
Safeguard Available if Duty Rate Zero Under PFTA
CITA states that a PTPA safeguard would be available in situations where the PFTA duty rate for a textile or apparel article is zero. The safeguard action permits the U.S. to increase the duty rate to a level that does not exceed the lesser of the prevailing column 1 Normal Trade Relations (NTR) rate or the column 1 NTR rate in effect the day prior to the Peru TPA entering into force (February 1, 2009). The initial period of this relief is two years, but may be extended for a period of not more than one year.
Safeguard Mechanism Expires on Jan 31, 2014, U.S. Must Provide Compensation
CITA’s authority to impose such safeguard duty rates expires five years after February 1, 2009, the date on which the Peru TPA entered into force. In addition, if a Peru TPA safeguard duty rate is imposed, the U.S. must provide Peru “mutually agreed” trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the safeguard measure. Such concessions shall be limited to textile and apparel products, unless the U.S. and Peru agree otherwise.
Procedures for Requesting and Imposing a Peru 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 Peru, highlights of which include:
Requests may be filed by interested parties. An interested party may file a request with CITA for a Peru TPA safeguard duty rate on a textile and/or apparel product from Peru. 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 Peru. 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; certain import, production, and market share data; certain additional data or estimates showing serious damage or actual threat thereof; etc.
CITA may self-initiate. CITA may, on its own initiative, consider whether imports of a textile or apparel product from Peru are being imported into the U.S. in such increased quantities, in absolute terms or relative to the domestic market for that article, and under such conditions as to cause serious damage or actual threat thereof to a U.S. industry producing a like or directly competitive article. In such considerations, CITA will follow procedures consistent with those set forth in its notice.
CITA to seek public comments. CITA states that if it self-initiates or determines that a request provides the information necessary for it to be considered, it will publish a Federal Register notice seeking public comments. CITA may also provide an additional time period for rebuttals, clarifications, or corrections as necessary.
CITA to make determination of serious damage/threat. CITA explains that it will make a determination within 60 calendar days of the close of the comment period as to whether serious damage or actual threat thereof, is occurring as a result of the reduction or elimination of duties under the Peru TPA. (CITA notes that if it is unable to make a determination within this time period, it will publish a Federal Register notice which will contain the date by which it will make a determination.)
For an affirmative determination, CITA may provide tariff relief. If CITA’s determination is affirmative, CITA may provide import tariff relief to a U.S. industry to the extent necessary to remedy or prevent the serious damage or actual threat thereof and to facilitate adjustment by the domestic industry to import competition. Such relief may consist of an increase the duty rate of the subject textile and/or apparel product(s) to the lower of the prevailing column 1 NTR rate or the column 1 NTR rate in effect the day prior to the Peru TPA entering into force.
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 the reasons thereof 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.)
1The agreement is also referred to as the U.S.-Peru Free Trade Agreement (Peru FTA or PFTA)
(See ITT’s Online Archives or 06/17/10 news, 10060602, for BP summary of CITA seeking comments on Peru TPA safeguard actions.
See ITT’s Online Archives or 02/23/09 news, 09022320, for BP summary of CBP's instructions on filing claims under the Peru TPA.
See ITT's Online Archives or 02/02/09 news, 09020210 for BP summary of Presidential Proclamation 8341 implementing the U.S.-Peru TPA.)
CITA Contact -- Robert Carrigg (202) 482-2573