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Information Collections on Textile Safeguards, Boycott Requests Under Review

Wednesday, August 07, 2013
Sandler, Travis & Rosenberg Trade Report

Peru FTA Textile Safeguards. The International Trade Administration is soliciting comments through Oct. 7 on the proposed extension of information collections associated with requests for textile and apparel safeguard actions under the U.S.-Peru Free Trade Agreement.

This safeguard mechanism applies when, as a result of the elimination of a customs duty under the FTA, an Peruvian textile or apparel article 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. Requestors making such a claim must provide the following information: name and description of the imported article concerned, import data supporting the claim, U.S. domestic production of like or directly competitive articles, imports from Peru as a percentage of the domestic market of the like or directly competitive article, and all data available showing changes in productivity, utilization of capacity, inventories, exports, wages, employment, domestic prices, profits, investment and any other information supporting the claim.

If the ITA determines that a safeguard is warranted, the U.S. may increase duties on the imported article from Peru to a level that does not exceed the lesser of the prevailing U.S. normal trade relations/most favored nation duty rate for the article or the U.S. NTR/MFN duty rate in effect on the day before the FTA entered into force. The maximum period of import tariff relief is three years. If the U.S. provides such relief it 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. Such concessions will be limited to textile and apparel products unless the two sides agree otherwise. If the U.S. and Peru are unable to agree on trade liberalizing compensation, Peru may increase customs duties equivalently on U.S. products.

Boycott Requests. The Bureau of Industry and Security is requesting comments no later than Oct. 7 on the proposed extension of an information collection entitled “Report of Requests for Restrictive Trade Practice or Boycott” (forms BIS-621P, BIS-6051P and BIS–6051 P–a). The information collected is used to monitor requests for participation in foreign boycotts against countries friendly to the U.S. It is analyzed to note changing trends and to decide on appropriate action to be taken to carry out the United States' policy of discouraging its citizens from participating in foreign restrictive trade practices and boycotts directed against friendly countries.

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