U.S. Knitters File Opposition to Morocco Short Supply Request

On April 18, 2019, the Committee for the Implementation of Textile Agreements published in the Federal Register (84 FR 16243) Request for Public Comment on a Commercial Availability Request Under the U.S.-Morocco Free Trade Agreement

SUMMARY: The Government of the United States received a request from the Government of Morocco dated March 14, 2019, on behalf of GOTTEX SWIMWEAR BRANDS LTD to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco consider revising the rules of origin for women's or girls' swimwear to address availability of supply of certain knit fabric in the territories of the Parties. the USMFTA.

Comments in opposition were filed by:

• Darlington Fabrics, and
• Elastic Fabrics of America.

Agathon Associates notes that the request from the Government of Morocco states that the third-country fabric that would be the beneficiary of the proposed modification will incorporate Lyrca® brand spandex produced in Ireland by U.S.A.-based manufacturer Invista. We fail to see the relevancy of this statement. If the rule of origin is modified to allow third-country fabric, the origin of the yarn in the fabric is irrelevant, and the yarn could be sourced from any of the many spandex manufacturers located in several countries. However, if the rule is not modified, and GOTTEX chooses to use fabric made in the U.S., the source of the yarn will also be U.S. -- from Invista, the sole U.S. producer of spandex -- due the requirement in the USMFTA that elastomeric yarn in the component that determines the tariff classification of the garment must be 100% originating in the region.

Morocco Files Short Supply Request for Warp Knit Fabric

On April 18, 2019, the Committee for the Implementation of Textile Agreements published in the Federal Register (84 FR 16243) Request for Public Comment on a Commercial Availability Request Under the U.S.-Morocco Free Trade Agreement

SUMMARY: The Government of the United States received a request from the Government of Morocco dated March 14, 2019, on behalf of GOTTEX SWIMWEAR BRANDS LTD to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for women's or girls' swimwear to address availability of supply of certain knit fabric in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain knit fabric can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

DATES: Comments must be submitted by May 20, 2019.

SUPPLEMENTARY INFORMATION:

Background: Article 4.3.3 of the USMFTA provides that, on the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. In the consultations, pursuant to Article 4.3.4 of the USMFTA, each Party shall consider all data presented by the other Party that demonstrate substantial production in its territory of a particular fiber, yarn, or fabric. The Parties shall consider that there is substantial production if a Party demonstrates that its domestic producers are capable of supplying commercial quantities of the fiber, yarn, or fabric in a timely manner.

The Government of the United States received a request from the Government of Morocco dated March 14, 2019, on behalf of GOTTEX SWIMWEAR BRANDS LTD, requesting that the United States consider whether the USMFTA rule of origin for women's or girls' swimwear classified under HTSUS 6112.41 should be modified to allow the use of printed and piece-dyed warp knit fabrics of polyester or nylon fibers, containing between 6% and 41% elastomeric yarns classified under subheading 6004.10 of the HTSUS that is not originating under the USMFTA.

U.S. Textile Industry Comments on Moroccan Short Supply Requests

In October, 2017, the Government of Morocco requested consultation with the United States regarding the rules of origin for certain appear articles. The request, if accepted would place certain woven wool fabric and a variety of knit fabrics on the "short supply list."

The deadline to comment was January 5, 2018.

Comments were received in favor from American Apparel and Footwear Association.

Comments in opposition were submitted by:

• Agathon Associates (woven wool),
• American Woolen Company (woven wool),
• Burlington (woven wool),
• Milliken and Company (knit fabric), and
• National Council of Textile Organizations.

Agathon Associates Comments on a Commercial Availability Request Under the U.S.-Morocco Free Trade Agreement

Today Agathon Associates filed the following comments with the Committee for the Implementation of Textile Agreements.

To Whom It May Concern:

I write as a consultant to the U.S. textile industry to oppose the request to modify the rules of origin for certain women's jackets, skirts, and pants of chief weight combed wool, classified at 6204.31.2010 Harmonized Tariff Schedule of the United States ("HTSUS"), 6204.51.0010 HTSUS, and 6204.61.8010 HTSUS, under the U.S.-Morocco Free Trade Agreement ("USMFTA"), published November 6, 2017, at 82 FR 51401. The Government of Morocco, on behalf of the apparel manufacturer Modaline, has requested that apparel articles of the above description not be excluded from USMFTA duty-free entry due to certain non-originating woven wool fabrics, specifically fabrics of 83-94% combed (worsted) wool, 4-15% nylon, and 1-7% spandex, classified at 5112.19 and 5112.20 HTSUS. I write on behalf of my clients American Woolen Company, Northwest Woolen Mill, and Pendleton Woolen Mills.

My clients are ready and able to supply the fabrics in question. Please note that "Woolen" in a company name does not mean that the company is limited to woolen (carded wool), these U.S. manufacturers also weave fabrics of worsted (combed) wool and worsted wool blends, including the blends the subject of this request. I further note that under the terms of the USMFTA the yarns also must originate. My clients currently source these yarns in the U.S. for programs under other FTAs and in fabrics for U.S. Department of Defense contracts which, under the "Berry Amendment" are required to have 100% U.S. content from fiber to finished article.

The request from the Government of Morocco should be rejected "out of hand" as failing to present any factual basis for the request. No attempt is made in the request to demonstrate short supply of the fabric in the region. No evidence is presented of any attempt to contact potential suppliers in the U.S. or Morocco. While the USMFTA does not include a "due diligence" requirement such as that in the Commercial Availability ("Short Supply") provisions of some FTAs, I believe it is an abuse of the USMFTA consultation on rules of origin provision to submit a request without doing even the slightest to determine whether it has any justification. My clients would rather be busy making fabric and making money than responding to utterly meritless requests. As a taxpayer I object that U.S. government resources must be used to investigate and respond to this meritless request.

The sole justification given in the request for modifying the rules of origin is the December 31, 2015, expiration of the USMFTA Tariff Preference Level ("TPL") provision, in an initial amount of 30 million square meter equivalents, phased down to 4.3 million in the final year, and now is entirely eliminated. The TPL is a derogation from the general "yarn forward" rule of the USMFTA. The yarn forward rule is at the very foundation of U.S. FTA policy as respects textiles and apparel. The TPL was a generous temporary dispensation from the rule. Now that it is expired it is inappropriate to invoke it as justification for changes to the rules of origin.

1. Morocco agreed to the yarn forward rule and should live up to that agreement.

2. The expiration of the TPL, after ten years, is one of the provisions of the agreement. Morocco had ten years, during that transition period, to build its own industry to supply these fabrics or establish business relations with U.S. textile manufacturers who made these fabrics. It appears that Morocco did neither.

3. Approval of these request relating to three specific types of women's wear will likely result in subsequent requests relating to other articles of apparel and other woven wool fabrics.

4. It would be unfair to the other 17 nations that are free trade partners with the U.S. under the terms of 11 agreements who, with only narrow, carefully carved out exceptions, operate under the yarn forward rule.

5. If granted, this request will prompt other current and future free trade partners to seek short supply status for the same fabrics.

6. Unlike the expired TPL, which has annual caps, the request is unlimited as to quantity, and, if approved, would create an incentive for Morocco to increase production of apparel of third-country fabric.

Because these fabrics are available from domestic U.S. sources that will be harmed were the request granted, and because no U.S. textile industry interests can possibly be aided by the requested changes, I urge in the strongest terms that the U.S. reject this request.

If you have any questions please contact me at 617-237-6008 or david@agathonassociates.com.

Yours,

David Trumbull

Morocco Short Supply Responses Due Friday, January 5th

Background: Article 4.3.3 of the United States-Morocco Free Trade Agreement provides that, on the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. If a particular fiber, yarn, or fabric is found to not be available the rules of origin may be modified to allow non-originating fiber, yarn, or fabric. This is commonly known as a "short supply" request. In a egregious violation of the spirit of the agreement, and in total disregard for the facts, the government of Morocco has presented the U.S. with an outrageous proposed "short supply" list, alleging that there is no U.S. production of woven fabric of wool or knitted fabric of any fiber.

Comments must be submitted by January 5, 2018 to the Chairman, Committee for the Implementation of Textile Agreements. Agathon Associates is available to assist any of the scores of U.S. companies that make the fabrics the subject to this utterly without merit request.

The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of MODALINE HOLDING, requesting that the United States consider whether the USMFTA rules of origin should be modified to allow the use of 83-94% wool/4%-15% nylon/1%-7% spandex woven fabric classified in subheading 5112.19 and 5112.20 of the HTSUS that is not originating under the USMFTA.

The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of SALSABILE, requesting that the United States consider whether the USMFTA rule of origin for certain knit apparel should be modified to allow the use of certain knit fabrics that are not originating under the USMFTA. The fabrics subject to this request are--

Fabric 1: Knit fleece fabric of acrylic (67-73%) and viscose (27-33%), weighing 200-280 g/m2, classified in subheading 6001.22 of the HTSUS.

Fabric 2: Dyed knit fabric of nylon (52-58%), wool (27-33%), and acrylic (12-18%), classified in subheading 6006.32 of the HTSUS.

Fabric 3: Dyed knit fabric of nylon (42-48%), viscose (37-43%), and wool (12-18%), classified in subheading 6006.32 of the HTSUS.

Fabric 4: Dyed knit fabric of nylon (41-47%), wool (18-24%), acrylic (18-24%), and mohair (11-17%), classified in subheading 6006.32 of the HTSUS.

Fabric 5: Dyed knit fabric of cotton (50-56%), acrylic (34-40%), and polyester (7-13%), classified in subheadings 6006.22 and 6006.32 of the HTSUS.

Fabric 6: Dyed knit fabric of polyester (57-63%), wool (27-33%), and nylon (7-13%), classified in subheading 6006.32 of the HTSUS.

Fabric 7: Dyed knit fabric of cotton (51-60%), rayon (30-40%), and nylon (4-10%), classified in subheading 6006.22 of the HTSUS.

Fabric 8: Knit fabric of rayon (50-84%), polyester (14-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 9: Knit fabric of polyester (50-65%), rayon (30-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.36, 6005.37, 6005.38, 6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 10: Knit fabric of rayon (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 11: Knit fabric of rayon (51-84%) and polyester (16-49%), classified in subheadings 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 12: Knit fabric of polyester (51-65%) and rayon (35-49%), classified in subheadings 6005.36, 6005.37, 6005.38,6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 13: Knit fabric of synthetic fiber (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.37, 6005.38, 6005.39, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 14: Knit jersey fabric, other than warp knit, of lyocell (44-50%), rayon (44-50%), and elastomeric (3-9%), weighing 150-220 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.

Fabric 15: Slub jersey fabric of cotton (51-65%) and rayon (35-49%), weighing 120-225 g/m2, classified in subheading 6006.22 of the HTSUS;

Fabric 16: Knit jersey fabric, other than warp knit, of rayon (30-36%), acrylic (19-35%), polyester (27-33%), and elastomeric (3-8%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.

Fabric 17: Knit fabric of cotton (51-70%), rayon (33-49%), and elastomeric (2-7%), weighing up to 275 g/m2, classified in subheadings 6004.10, 6006.21, 6006.22, and 6006.24 of the HTSUS.

Fabric 18: Knit jersey fabric, other than warp knit, of polyester (43-46%), rayon (43-45%), flax (5-9%), and elastomeric (4-5%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.

Fabric 19: Slub jersey fabric, other than warp knit, of rayon (92-98%), polyester (2-3%), and elastomeric (2-5%), weighing 150-200 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.

Public comment period closes on January 5, 2018.

The list includes a wide range of circular knits, warp knits, stretch knits, and fleece. Note, that the classifications given for the fabrics are at the 6-digit subheading level, which is much broader than the U.S. 10-digit statistical breakout that many U.S. companies are accustomed to working with, with the result that each of the 19 "fabrics" is actually a itself of group of fabrics. Agathon Associates has prepared a SPREADSHEET to assist clients in evaluating this long list of requested fabrics. Also note, that although the request from the Government of Morocco relates the fabrics on the list to specific end-use apparel articles, it is likely that were a fabric approved from a particular end use, that future requests may be made for the same fabric for other end uses, and approval in this case would be cited as the basis for the later request.

On December 18, 2017, Milliken and Company submitted Comments in Opposition, stating they can make all of the knit fabrics subject of the request.

As of noon on January 3rd the OTEXA website did not show any comments received regarding the woven wool fabric short supply request.

U.S.-Morocco Free Trade Agreement Frequently Asked Questions (FAQ’s)

On November 16, 2017, U.S. Customs and Border Protection published these U.S.-Morocco Free Trade Agreement Frequently Asked Questions (FAQ’s)

Question #1: Where can I find information on importing from Morocco under the U.S.-Morocco Free Trade Agreement (MAFTA)?

Answer #1: For questions about importing from Morocco under the U.S.-Morocco FTA, see the U.S. Customs and Border Protection (CBP) Morocco FTA page by searching “Morocco” at www.cbp.gov.

Question #2: What information is available on the www.cbp.gov U.S.-Morocco (MAFTA) FTA webpage?

Answer #2: The Morocco Free Trade Agreement (MAFTA) went into effect on January 1, 2006; following information is available from the Morocco FTA webpage:

• Morocco FTA Summary
• Morocco Free Trade Agreement Implementation Instructions
• Morocco Data Elements for the Declaration
• Morocco FTA General Note 27, Harmonized Tariff Schedule of the United States
• Morocco FTA Quotas
• Reconciliation
• Morocco FTA Text
• Morocco FTA Regulations
• International Trade Commission Publication 3721
• House Report 108-627, United States-Morocco Free Trade Agreement Implementation Act, 108th Congress, 2nd Session
• Presidential Proclamation 7971

Question #3: Where can I find information on exporting to Morocco?

Answer #3: Answers to questions on exporting to Morocco can be found on www.export.gov.

Making a Claim for Preferential Tariff Treatment

Question #4: How does an importer make a preference claim under the U.S.-Morocco FTA?

Answer #4: A U.S.-Morocco FTA claim is made by prefacing the tariff item on the entry summary with the Special Program Indicator “BH” (19 CFR 10.763) or by filing a PEA/PSC claim within one year of importation.

Question #5: May a post-importation preference claim be made using a 19 USC 1520(d)

Answer #5: No a 19 USC 1520(d) is not an option.

Question #6: What responsibilities does an importer assume by making a U.S.-Morocco FTA preference claim?

Answer #6: By making a U.S.-Morocco FTA preference claim, the importer attests that the good is eligible for U.S.-Morocco FTA preference and accepts responsibility for the truthfulness and accuracy of the claim. The importer is also responsible for providing the certification of origin and supporting documentation to CBP upon request. (19 CFR 10.765)

Declaration (Certification of Origin) and Required Data Elements

Question #7: If CBP requests a U.S.-Morocco FTA certification of origin, which one should the importer provide to CBP – the exporter’s, the producer’s, or his own?

Answer #7: If the U.S.-Morocco FTA claim is based on the exporter’s or producer’s Declaration, the importer should provide that Declaration to CBP. If the U.S.-Morocco FTA claim is based on the importer’s Declaration or importer knowledge, the importer should provide its own certification of origin.

Question #8: Is there an official form or format for the Declaration under the U.S.-Morocco FTA?

Answer #8: Although there is no official Declaration form or format required under the U.S.- Morocco FTA, a free-form Declaration with all of the data elements in 19 CFR 10.764 may also be made.

Question #9: When must the importer provide a U.S.-Morocco FTA Declaration to CBP?

Answer #9: The importer must provide CBP with a U.S.-Morocco FTA Declaration upon request by CBP.

Question #10: Can an importer make a U.S.-Morocco FTA claim without an exporter or producer Declaration?

Answer #10: If the importer has knowledge that the goods originate and can provide documentation to substantiate the claim, then the importer need not possess an exporter or producer Declaration.

Question #11: Will CBP accept an unsigned or undated Declaration?

Answer #11: No, the certification of origin must be signed and dated by an individual with knowledge of the facts and the authority to legally bind the company.

Question #12: Will CBP accept a Declaration if the HTSUS number is incorrect?

Answer #12: CBP may accept a Declaration with an incorrect HTSUS number or request that amended Declaration be submitted with a copy of the original Declaration as an attachment. The correct HTSUS number on the Declaration is an important indicator that the origination analysis was performed using the correct product-specific rule in HTSUS General Note 27(h).

Morocco Knit Fabric Short Supply Request List

On Monday we REPORTED on a request from the Government of Morocco to have several knit fabrics added to the short supply list. The list includes a wide range of circular knits, warp knits, stretch knits, and fleece.

Note, that although the request from the Government of Morocco relates the fabrics on the list to specific end-use apparel articles, it is likely that were a fabric approved from a particular end use, that future requests may be made for the same fabric for other end uses, and approval in this case would be cited as the basis for the later request.

Note, that the classifications given for the fabrics are at the 6-digit subheading level, which is much broader than the U.S. 10-digit statistical breakout that many U.S. companies are accustomed to working with, with the result that each of the 19 "fabrics" is actually a itself of group of fabrics.

Agathon Associates has prepared a SPREADSHEET to assist clients in evaluating this long list of requested fabrics. To access the file you will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

In Outrageous Move that May Harm U.S.-Moroccan Relations, Morocco Claims There is no Woven Wool Fabric or Knit Fabric of Any Kind Made in the U.S., and Seeks Short Supply Designation

Background: Article 4.3.3 of the United States-Morocco Free Trade Agreement provides that, on the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. If a particular fiber, yarn, or fabric is found to not be available the rules of origin may be modified to allow non-originating fiber, yarn, or fabric. This is commonly known as a "short supply" request. In a egregious violation of the spirit of the agreement, and in total disregard for the facts, the government of Morocco has presented the U.S. with an outrageous proposed "short supply" list, alleging that there is no U.S. production of woven fabric of wool or knitted fabric of any fiber.

Comments must be submitted by January 5, 2018 to the Chairman, Committee for the Implementation of Textile Agreements. Agathon Associates is available to assist any of the scores of U.S. companies that make the fabrics the subject to this utterly without merit request.

The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of MODALINE HOLDING, requesting that the United States consider whether the USMFTA rules of origin should be modified to allow the use of 83-94% wool/4%-15% nylon/1%-7% spandex woven fabric classified in subheading 5112.19 and 5112.20 of the HTSUS that is not originating under the USMFTA.

The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of SALSABILE, requesting that the United States consider whether the USMFTA rule of origin for certain knit apparel should be modified to allow the use of certain knit fabrics that are not originating under the USMFTA. The fabrics subject to this request are--

Fabric 1: Knit fleece fabric of acrylic (67-73%) and viscose (27-33%), weighing 200-280 g/m2, classified in subheading 6001.22 of the HTSUS.

Fabric 2: Dyed knit fabric of nylon (52-58%), wool (27-33%), and acrylic (12-18%), classified in subheading 6006.32 of the HTSUS.

Fabric 3: Dyed knit fabric of nylon (42-48%), viscose (37-43%), and wool (12-18%), classified in subheading 6006.32 of the HTSUS.

Fabric 4: Dyed knit fabric of nylon (41-47%), wool (18-24%), acrylic (18-24%), and mohair (11-17%), classified in subheading 6006.32 of the HTSUS.

Fabric 5: Dyed knit fabric of cotton (50-56%), acrylic (34-40%), and polyester (7-13%), classified in subheadings 6006.22 and 6006.32 of the HTSUS.

Fabric 6: Dyed knit fabric of polyester (57-63%), wool (27-33%), and nylon (7-13%), classified in subheading 6006.32 of the HTSUS.

Fabric 7: Dyed knit fabric of cotton (51-60%), rayon (30-40%), and nylon (4-10%), classified in subheading 6006.22 of the HTSUS.

Fabric 8: Knit fabric of rayon (50-84%), polyester (14-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 9: Knit fabric of polyester (50-65%), rayon (30-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.36, 6005.37, 6005.38, 6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 10: Knit fabric of rayon (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 11: Knit fabric of rayon (51-84%) and polyester (16-49%), classified in subheadings 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 12: Knit fabric of polyester (51-65%) and rayon (35-49%), classified in subheadings 6005.36, 6005.37, 6005.38,6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 13: Knit fabric of synthetic fiber (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.37, 6005.38, 6005.39, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 14: Knit jersey fabric, other than warp knit, of lyocell (44-50%), rayon (44-50%), and elastomeric (3-9%), weighing 150-220 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.

Fabric 15: Slub jersey fabric of cotton (51-65%) and rayon (35-49%), weighing 120-225 g/m2, classified in subheading 6006.22 of the HTSUS;

Fabric 16: Knit jersey fabric, other than warp knit, of rayon (30-36%), acrylic (19-35%), polyester (27-33%), and elastomeric (3-8%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.

Fabric 17: Knit fabric of cotton (51-70%), rayon (33-49%), and elastomeric (2-7%), weighing up to 275 g/m2, classified in subheadings 6004.10, 6006.21, 6006.22, and 6006.24 of the HTSUS.

Fabric 18: Knit jersey fabric, other than warp knit, of polyester (43-46%), rayon (43-45%), flax (5-9%), and elastomeric (4-5%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.

Fabric 19: Slub jersey fabric, other than warp knit, of rayon (92-98%), polyester (2-3%), and elastomeric (2-5%), weighing 150-200 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.

The list includes a wide range of circular knits, warp knits, stretch knits, and fleece. Note, that the classifications given for the fabrics are at the 6-digit subheading level, which is much broader than the U.S. 10-digit statistical breakout that many U.S. companies are accustomed to working with, with the result that each of the 19 "fabrics" is actually a itself of group of fabrics. Agathon Associates has prepared a SPREADSHEET to assist clients in evaluating this long list of requested fabrics. Also note, that although the request from the Government of Morocco relates the fabrics on the list to specific end-use apparel articles, it is likely that were a fabric approved from a particular end use, that future requests may be made for the same fabric for other end uses, and approval in this case would be cited as the basis for the later request.

On December 18, 2017, Milliken and Company submitted Comments in Opposition, stating they can make all of the knit fabrics subject of the request.

As of noon on January 3rd, the OTEXA website showed no comments received in opposition to the woven wool request.

Swimsuit Fabric Short Supply Request Effectively Denied

On November 16, 2015, the Government of the United States received a request from the Swimsuit Commission Corporation ("SCC"), that the United States and Morocco consider revising the rules of origin for certain women’s and girls’ swimwear to address availability of supply of certain printed and piece-dyed warp knit fabrics of polyester or nylon fibers classified under HTSUS subheading 6004.10 containing between 3 percent and 41 percent elastomeric yarns, in which the elastomeric yarns were engineered for chlorine resistance, which the SCC alleged cannot be supplied by the U.S. and Moroccan industries in commercial quantities in a timely manner.

Public comments in opposition were submitted by Agathon Associates, Darlington Fabrics, Elastic Fabrics of America, McMurray Fabrics, and the National Council of Textile Organizations and The American Fiber Manufacturers Association.The Government of Morocco submitted comments in favor of the request.

After approximately 15 months of ongoing engagement between the petitioner and U.S. domestic mills, the government posted this week on the otexa.trade.gov website the finding of "Indications that commercial availability exists." No further action on this request is expected.

U.S. Agrees to Short Supply for Certain Woven Fabrics for Womenswear in Morocco FTA

U.S. negotiators have reached agreement in principal with representatives of the government of Morocco on proposed modifications to the FTA textile and apparel rules of origin. They reflect preliminary determinations that the U.S. and Moroccan producers are unable to produce certain fabrics and described in the letter below.

On September 8, 2016, the United States International Trade Commission announced a newly initiated investigation concerning proposed modifications of the United States-Morocco Free Trade Agreement (U.S.-Morocco FTA) rules of origin.

The United States International Trade Commission (USITC) is seeking input on a newly initiated investigation concerning proposed modifications of the United States-Morocco Free Trade Agreement (U.S.-Morocco FTA) rules of origin.

The investigation, Probable Economic Effect of Certain Modifications to the U.S.-Morocco FTA Rules of Origin, was requested by the U.S. Trade Representative (USTR) in a letter received on August 24, 2016. The letter included an attachment detailing the certain textile and apparel articles affected by the proposed modifications.

As requested by the USTR, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed U.S.-Morocco FTA rules of origin modifications on U.S. trade under U.S.-Morocco FTA, total U.S. trade, and on domestic producers of the affected articles.

The USITC expects to submit its advice to the USTR by January 24, 2017. A public version of the report, with all confidential business information deleted, will be released as soon as possible thereafter.

The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on October 13, 2016.

Agathon Associates has examined the six specific modifications requested in the letter and has prepared an unofficial summary:

1. Certain women's apparel of woven fabric of 100% rayon,
2. Women's skirts of woven cotton corduroy,
3. Women's skirts of woven polyester corduroy,
4. Women's pants of woven bi-stretch fabric of a certain blend of polyester, rayon, and spandex,
5. Women's pants of woven fabric of a certain blend of polyester, rayon, and spandex, and
6. Women's pants of herringbone weave fabric of a certain blend of rayon, polyester, cotton, wool, nylon, and spandex.

The preliminary determination of "short supply" covers but a subset of the several requests from the government of Morocco submitted from November 2015 through April 2016. The other requests, including those relating to swimsear, are still pending. U.S. manufacturers with an interest in any of the pending requests are urged to continue dialogue with the Morocco apparel manufactures involved and with the U.S. government. Agathon Associates has compiled a list of all the requests and public responses for the convenience of clients. That list may be accessed at www.agathonassociates.com/textile-pri/morocco/short-supply.htm. To access the list you will need your username and password. If you have forgotten your username and password, email David Trumbull at david@agathonassociates.com.

Three New U.S.-Morocco Short Supply Requests Filed

On April 15, 2016, the Committee for the Implementation of Textile Agreements published in the Federal Register (81 FR 22238) Request for public comments concerning a request for modification of the U.S.-Morocco Free Trade Agreement (USMFTA) rules of origin for pants, skirts, jackets, shirts, and casual dresses made from certain woven fabrics.

The Government of the United States received a request from the Government of Morocco, submitted on March 9, 2016, and updated on April 1, 2016, on behalf of CROSSING to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for pants, skirts, jackets, shirts and casual dresses to address availability of supply of certain woven fabrics in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain woven fabrics can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

• Fabric 1: 100% lyocell classified in subheading 5516.11 and 5516.12 of the HTSUS;
• Fabric 2: Lyocell/cotton classified in subheading 5516.41, 5516.42, and 5516.43 of the HTSUS;
• Fabric 3: Cotton/polyester classified in subheading 5210.49 and 5211.42 of the HTSUS;
• Fabric 4: Cotton/polyester/elastane classified in subheading 5210.49 and 5211.4210 of the HTSUS;
• Fabric 5: Corduroy with cotton classified in subheading 5801.22 of the HTSUS; and
• Fabric 6: Corduroy polyester classified in subheading 5801.32 of the HTSUS

Comments must be submitted by May 16, 2016

On April 15, 2016, the Committee for the Implementation of Textile Agreements published in the Federal Register (81 FR 22237) Request for public comments concerning a request for modification of the U.S.-Morocco Free Trade Agreement (USMFTA) rules of origin for certain women's pants made from certain woven fabrics.

The Government of the United States received a request from the Government of Morocco, dated March 9, 2016, on behalf of MODALINE HOLDING to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for women's pants to address availability of supply of certain woven fabrics in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain woven fabrics can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

• Fabric 1: 45%-52% polyester, 45%-52% rayon, 1%-7% spandex woven synthetic bi-stretch fabric, classified in subheading 5515.11 of the HTSUS;
• Fabric 2: 60%-68% polyester, 29%-37% rayon, 1%-7% spandex woven poly-viscose fabric, classified in subheading 5515.11 of the HTSUS;
• Fabric 3: 31%-37% viscose, 17%-23% polyester, 17%-23% cotton, 13%-19% wool, 5%-11% nylon, 1%-6% spandex woven herringbone fabric, classified in subheading 5408.33 of the HTSUS;
• Fabric 4: 94%-99% virgin wool, 1%-6% spandex, twill stretch flannel reactive dyed fabric, classified in subheading 5112.11 of the HTSUS; and
• Fabric 5: 89%-95% polyester, 5%-11% spandex printed and solid woven polyester crepe fabric (with filament yarn size of 120D + 40D*120D + 40D and a construction of 175*104), classified in subheading 5407.61 of the HTSUS.

Comments must be submitted by May 16, 201

On April 15, 2016, the Committee for the Implementation of Textile Agreements published in the Federal Register (81 FR 22236) Request for public comments concerning a request for modification of the U.S.-Morocco Free Trade Agreement (USMFTA) rules of origin for dresses, skirts, blouses and tops made from certain woven fabric.

The Government of the United States received a request from the Government of Morocco, dated March 1, 2016, on behalf of ARYANS to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for dresses, skirts, blouses and tops to address availability of supply of certain woven fabric in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain woven fabric can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

Fabrics: 87%-93% cotton/5%-9% polyester/2%-4% elastane woven fabric, classified in subheading 5209.42 of the HTSUS.

Comments must be submitted by May 16, 2016.

Another Petition to Add Woven Fabric of Rayon to Morocco FTA Short Supply List

On January 27, 2016, the Government of the United States received a request from the Government of Morocco, on behalf of HTL FASHION to initiate consultations with the Government of Morocco under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for dresses, skirts, and blouses and tops to address availability of supply of 100% viscose woven fabric in the territories of the Parties.

Comments must be received no later than March 31, 2016.

Subscribers to Agathon Associates' Trade Advisor Service can learn more about short supply under the U.S.-Morocco Free Trade Agreement, including a copy of this request, by CLICKING HERE.

Comments on Moroccan Short Supply Request Relating to Swimsuit Fabric

On November 16, 2015, the Government of the United States received a request from the Swimsuit Commission Corporation ("SCC"), that the United States and Morocco consider revising the rules of origin for certain women’s and girls’ swimwear to address availability of supply of certain printed and piece-dyed warp knit fabrics of polyester or nylon fibers classified under HTSUS subheading 6004.10 containing between 3 percent and 41 percent elastomeric yarns, in which the elastomeric yarns were engineered for chlorine resistance, which the SCC alleges cannot be supplied by the U.S. and Moroccan industries in commercial quantities in a timely manner.

Public comments were due today. Agathon Associates submitted the following comments--

I write as a consultant to the U.S. textile industry to oppose the request to modify the rules of origin for certain swimwear made of certain warp knit fabric under the U.S. Morocco Free Trade Agreement ("MFTA"), published December 7, 2015, at 80 FR 75999. I understand that my clients, Elastic Fabrics of American and the Darlington division of the George C. Moore will be filing their own comments as domestic U.S. manufacturers of the subject fabrics.

The request from the Swimsuit Commission Corporation should be rejected "out of hand" as failing to present any factual basis for the request. No attempt is made in the request to demonstrate short supply of the fabric in the region. No evidence is presented of any attempt to contact potential suppliers in the U.S. or Morocco. Indeed, my associates in the warp knit industry in the U.S. state that they were at no time contacted by the Swimsuit Commission Corporation, Gottex Swimwear Brands LTD, or any Moroccan swimwear manufacturers. Had the requestors made any attempt to locate regional suppliers they would have known that the fabric is indisputably not in short supply.

The sole justification given in the request for modifying the rules of origin is the fact that such warp knit fabric for use in the production of swimwear is on the short supply list of a negotiated, but not enacted, let alone implemented, free trade agreement, the Trans-Pacific Partnership ("TPP"). I believe it is a misuse of the negotiated TPP and the MFTA to suggest that the mere appearance of an article on the TPP short supply list is compelling and sufficient evidence for the article being short supply under the terms of another agreement.

My clients who make warp knit swimwear fabric in the U.S. believe that the U.S. negotiators erred in allowing this fabric on the TPP short supply list. However, we understand that the TPP list was the result of negotiations and compromises. Perhaps the negotiators, in "giving up" that fabric in TPP, believed they were getting something for textiles in return that was worth the damage it would do to America's warp knit industry. Whether what they got was worth it is not the point. The point is that the Moroccans now want the same concession without having to give up anything in return.

Because this fabric is available from domestic U.S. sources that will be harmed were the request granted, and because no U.S. textile industry interests can possibly be aided by the requested change, I urge in the strongest terms that the U.S. reject this request.

Comments were also submitted by:

• Darlington Fabrics, a Moore Company,
• Elastic Fabrics of America,
• McMurray Fabrics,
• Joint comments from the American Fiber Manufacturers Association and the National Council of Textile Organizations, and
• The Government of Morocco.

To read public versions of all comments received CLICK HERE and you will be redirected the website of the U.S. Department of Commerce Office of Textiles and Apparel.

Short Supply Requests Filed Relating to Woven Fabric of Rayon and Warp Knit Fabric for Swimwear

1. A request from American Eagle Outfitters ("AEO") that the United States and Morocco consider revising the rules of origin for women’s and girls’ woven garments to address availability of supply of 100% rayon woven fabric of Harmonized Tariff Schedule of the United States ("HTSUS") subheading 5408, which AEO alleges cannot be supplied by the U.S. and Moroccan industries in commercial quantities in a timely manner; and

2. A request from the Swimsuit Commission Corporation ("SCC"), that the United States and Morocco consider revising the rules of origin for certain women’s and girls’ swimwear to address availability of supply of certain printed and piece-dyed warp knit fabrics of polyester or nylon fibers classified under HTSUS subheading 6004.10 containing between 3 percent and 41 percent elastomeric yarns, in which the elastomeric yarns were engineered for chlorine resistance, which the SCC alleges cannot be supplied by the U.S. and Moroccan industries in commercial quantities in a timely manner.

Comments must be received by January 6, 2016.