Input Sought on Short Supply Request for Rayon Filament Yarn under U.S.-Chile FTA

Pursuant to a request by the Chilean government, the Department of Commerce’s Committee for the Implementation of Textile Agreement is seeking public input by April 6 on whether filament yarn of viscose rayon classified in subheadings 5403.10, 5403.31, 5403.32, and 5403.41 can be supplied by the domestic industry in commercial quantities in a timely manner. If a determination is made that such yarn is in short supply, the U.S. and Chile could agree to modify the U.S.-Chile FTA rules of origin for woven fabrics of artificial filament yarn of subheadings 5408.22-5408.23 to allow the use of non-U.S./non-Chilean filament yarn of viscose rayon.

CITA indicates that the U.S. government originally received a request in this regard from the Chilean government in June 2015. The agency sought public input but received no information indicating that the domestic industry could supply the subject yarn in commercial quantities in a timely manner. The U.S. and Chile continued to consult on the subject origin rule change but no such change was ever implemented. However, last November Chilean authorities reiterated their interest in advancing this origin rule modification and additional input is now being sought given the period of time that has elapsed since the original request for input.

For more information, please contact textile and apparel practice leader Elise Shibles at (415) 490-1403 or via email.