LOUBEN SPORTSWEAR INC.
DYED WOVEN FABRICS
MARCH 21, 1996
Request No. TR-95-011
Tribunal Members: Arthur B. Trudeau, Presiding Member
Robert C. Coates, Q. C. Member
Desmond Hallissey, Member
Research Director: Marcel J. W. Brazeau
Standard Life Centre
333 Laurier Avenue West
On July 14, 1994, the Canadian International Trade Tribunal (the Tribunal) received terms of reference from the Minister of Finance (the Minister) pursuant to section 19 of the Canadian International Trade Tribunal Act.  The Minister directed the Tribunal to investigate requests from domestic producers for tariff relief on imported textile inputs for use in their manufacturing operations and to make recommendations in respect of those requests to the Minister.
Pursuant to the Minister’s reference, on June 2, 1995, the Tribunal received a request from Louben Sportswear Inc. (Louben), of Montreal, Quebec, for the permanent removal of the customs duty on importations of certain dyed, woven triacetate/polyester fabrics for use in the production of ladies’ coordinated sportswear (the subject fabrics). Louben requested that tariff relief be granted retroactively to September 30, 1994.
On September 20, 1995, the Tribunal, being satisfied that the request was properly documented, issued a notice of commencement of investigation, which was distributed and published in the September 30, 1995, edition of the Canada Gazette. Part I.  On October 20, 1995, the Tribunal issued and distributed to interested parties a notice of amendment to the notice of commencement of investigation to reflect the fact that the descriptions of the subject fabrics had been modified.
As part of the investigation, the Tribunal’s research staff sent questionnaires to 10 potential producers of fabrics identical to or substitutable for the subject fabrics. Questionnaires were also sent to 16 potential users of the subject fabrics in the manufacture of ladies’ coordinated sportswear. A letter was sent to the Department of National Revenue (Revenue Canada) requesting information on the tariff classification of the subject fabrics, and samples of the subject fabrics were provided for laboratory analysis. Letters were also sent to a number of other government departments requesting information and advice.
On November 23, 1995, a staff investigation report, summarizing the information received from these departments, Louben and other firms that responded to the questionnaires, was provided to parties that had filed notices of appearance for this investigation. These parties are Louben and the Canadian Textiles Institute (CTI).
Following distribution of the staff investigation report, the CTI filed a submission with the Tribunal, to which Louben responded.
A public hearing was not held for this investigation.
Louben describes the subject fabrics as consisting of three qualities of woven, dyed triacetate/polyester fabrics:
(1) quality No. S-80620, which contains 70 percent by weight of triacetate filaments and 30 percent by weight of polyester filaments;
(2) quality No. S-81490, which contains 75 percent by weight of triacetate filaments and 25 percent by weight, of polyester filaments; and
(3) quality No. S-83680, which contains 81 percent by weight of triacetate filaments and 19 percent by weight of polyester filaments.
According to Louben, quality No. S-80620 is the predominant quality of the subject fabrics which it imports.
Revenue Canada analyzed samples of the three qualities of the subject fabrics and concluded that quality No. S-83680 contains 80 percent by weight of triacetate filaments and 20 percent by weight of viscose rayon filaments. Its analysis confirmed the triacetate/polyester blends for quality Nos. S-80620 and S-81490 as submitted by Louben. The analysis by Revenue Canada also provided the following technical information about the three samples.
Quality No. S-80620