CITA Issues Procedures for Oman FTA Safeguard Duties

The Committee for the Implementation of Textile Agreements has issued a notice which outlines the procedures it will follow in considering requests from interested parties to impose U.S.-Oman Free Trade Agreement safeguard actions (in the form of higher duty rates) on textile and/or apparel products from Oman.

The Oman FTA provides a safeguard mechanism -- in the form of increased duty rates -- that may be applied when, as a result of the reduction or elimination of a customs duty under the Oman FTA, a textile or apparel article from Oman is 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 these circumstances, the Oman FTA permits the U.S. to increase the duty rate to a level that does not exceed the lesser of the prevailing column 1 NTR/MFN rate or the column 1 NTR/MFN rate in effect the day prior to the Oman FTA entering into force. The maximum period of this relief is three years.

(CITA’s authority to impose such safeguard duty rates expires ten years after the duty rate of the article is eliminated pursuant to the Oman FTA. In addition, if a Oman FTA safeguard duty rate is imposed, the U.S. must provide Oman “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 action. Such concessions shall be limited to textile and apparel products, unless the U.S. and Oman agree otherwise.)

Procedures for Requesting and Imposing an Oman FTA 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 Oman, highlights of which include:

Requests may be filed by interested parties. An interested party may file a request with CITA for an Oman FTA safeguard duty rate on a textile and/or apparel product from Oman. 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 Oman. 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 Oman 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 Oman FTA. (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. In these circumstances, the Oman FTA permits the U.S. to increase the duty rate of the subject textile and/or apparel product(s) to the lower of the prevailing column 1 NTR/MFN rate or the column 1 NTR/MFN rate in effect the day prior to the Oman FTA 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.)

(See ITT’s Online Archives or 01/15/09 news, 09011520, for BP summary of Presidential Proclamation implementing the U.S.-Oman FTA. See ITT’s Online Archives or 01/15/09 and 01/16/09 news, 09011525 and 09011630, for BP summaries of CBP’s instructions on filing claims under the Oman FTA.)

CITA Contact -- Maria D’Andrea (202) 482-1550.

CITA Notice (FR Pub 05/21/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-12285.pdf.