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U.S. – Central America & Dominican Republic

Free Trade Agreement (CAFTA)

Summary of Textile and Apparel Provisions

October 2012

CAFTA Textile & Apparel Provisions August 2012

© International Development Systems, Inc. http://www.ids-quota.com; Email: [email protected]

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Table of Contents CAFTA Partners and Effective Dates……………………….………….……………. 3 Rules of Origin – Non-Apparel………………………………………..………………. 5 Yarns……………………………………………………………………………. 5 Fabrics………………………………………………………………………….. 5 Made-Up Articles………………………………………………………………. 5 Chapter Rules for Made-Up Articles……..………………………………….. 6 Rules of Origin – Apparel………………………………………………………..……. 7 Chapter Rules for Knit and Woven Apparel………………………………….. 8 Exceptions to Yarn-Forward Rule of Origin for Apparel…………………... 10 De Minimis Provision………………………………….……………… 10 Nylon Filament Yarn…………………………………………….……. 10 Cumulation with Mexico………………………………………………. 11 Tariff Preference Levels (TPLs) Costa Rica…………………………………………………..… 13 Nicaragua……………………………………………………... 16 Nicaragua 1-for-1 Commitment………………………….…. 17 Earned Income Allowance Program (DR)…..……………………… 19 Single Transformation………………………………………………… 21 CAFTA Short Supply………………………………………………….. 23 CAFTA Short Supply Mechanism……………………………………………….……. 26 CAFTA Folklore Provision…………………………………………………………….. 29 Reduced Duty Programs for Certain Apparel & Made-Ups…………………………. 30 Most Favored Nation Rates of Duty for Non-Originating Fabrics…………. 30 Reduced Duty Treatment for Certain Woven Garments…………………… 31 CAFTA Safeguard Provision………………………………………………….………. 32 U.S. CAFTA Safeguard on Socks from Honduras………………………… 33 Documentation and Record-Keeping Requirements………………………….……. 34 Appendices of 10-digit HTS Classifications

Appendix A: Garments Eligible for Costa Rica Wool TPL(A)……………… 39 Appendix B: Garments Eligible for Costa Rica Wool TPL(C)……………… 41 Appendix C: CAFTA Single Transformation Garments………………….…. 38 Appendix D: Reduced Duty Rates for Select Non-CAFTAWoven Garments…… 41



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CAFTA Partners & Effective Dates The United States and El Salvador first implemented the U.S.-Central America and Dominican Republic Free Trade Agreement (CAFTA) on March 1, 2006. In a process of staggered implementation, the other CAFTA signatories enacted the agreement after meeting all of the prerequisites for implementation. CAFTA benefits are applicable by date of entry. The effective dates, by country of origin, are listed below:

Costa Rica – January 1, 2009 Dominican Republic – March 1, 2007

El Salvador – March 1, 2006

Guatemala – July 1, 2006

Honduras – April 1, 2006

Nicaragua – April 1, 2006

CAFTA textile and apparel benefits are retroactive to January 1, 2004. Goods entered into the U.S. on or after January 1, 2004, but before the effective date listed above, which otherwise met all of the applicable CAFTA Rules of Origin, are eligible for a refund of any duties paid. Requests for such refunds had to be filed by March 31, 2009. CAFTA Cumulation benefits for woven apparel utilizing inputs from Mexico are available for shipments entered on or after August 15, 2008 (see page11). The CAFTA agreement offers Cumulation benefits only to those countries that have an FTA with both the U.S. and Mexico. The Dominican Republic was required to enter into an FTA with Mexico within five years of the entry into force of CAFTA, or by March 1, 2012. Since the Dominican Republic and Mexico did not conclude a FTA, the Dominican Republic is no longer eligible for Cumulation benefits. Qualifying apparel from Costa Rica or Nicaragua can enter the U.S. using those countries’ Tariff Preference Level (TPL) provisions. TPL claims may be made only for goods entered on or after April 1, 2006 (Cotton or Man-made Fiber Apparel from Nicaragua), August 15, 2008 (Certain Men’s Wool Coats from Nicaragua), or January 1, 2009 for Costa Rica (see pages 16 and 13, respectively).



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Under the terms of CAFTA, all changes to the text of the agreement must be approved by all CAFTA Parties and must be notified to the Organization of American States (OAS). The CAFTA “fixes” were approved in March 2011 by CAFTA trade ministers during the first meeting of the CAFTA Free Trade Commission in El Salvador. These “fixes” went into effect on October 13, 2012 and help to correct technical errors in the agreement.



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Rules of Origin – Non-Apparel

Yarns

The CAFTA Rule of Origin for Yarns is “fiber-forward” which means the raw fibers must be of U.S. or regional origin, and the yarn must be spun or extruded and finished in one or more CAFTA countries.

Fabrics

The CAFTA Rule of Origin for Knit Fabrics is “fiber-forward” which means the raw fibers must be of U.S. or CAFTA origin, the yarn must be spun or extruded in the U.S. or one or more CAFTA countries, and the fabric must be knit and finished in one or more CAFTA countries. The CAFTA Rule of Origin for Woven Fabrics is “yarn-forward” which means the yarn must be spun or extruded and the fabric woven and finished in one or more CAFTA countries (the raw fibers may be of any origin).

Made-up Articles

The CAFTA Rule of Origin for Made-Up Articles is “yarn-forward” which means the yarn must be spun or extruded, the fabric knit or woven, and all cutting or knitting-to-shape, sewing and finishing operations must occur in one or more CAFTA countries.

CAFTA Chapter Rules apply to all “yarn-forward” made-ups. See next page.

CAFTA’s Short Supply provisions permit the use of certain non-U.S., non-regional inputs in the manufacture of CAFTA-qualifying (duty-free) yarns, fabrics and made-up articles (see page 23 for details).



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Chapter Rules for Made-up Articles

In addition to meeting the Rule of Origin listed above, the following “Chapter Rules” apply for goods classified in HTS Chapter 63: Rule 1: Essential Character The Rule of Origin applies only to the component of the good that determines the tariff classification of the article (the essential character). All cutting or knitting-to-shape of all components must occur in one or more CAFTA countries, even though the yarn and/or fabric may be of any origin for components other than the essential character component. Rule 2: Sewing Thread Sewing thread classified under HTS Nos. 5204, 5401, 5402 [Effective October 13, 2012], 5508, used as sewing thread contained in CAFTA-originating made-up articles (either used for assembly or decorative trim) must be “formed and finished” in one or more CAFTA countries. Fiber may be of any origin but it must be spun/extruded and finished into thread in a CAFTA country. Rule 3: Short Supply Effective October 13, 2012 sewing thread, visible lining fabrics, narrow elastic fabric, and pocketing bag fabric can be added to the list of materials eligible for Short Supply.



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Rules of Origin - Apparel Cotton and Man-Made Fiber Apparel The basic Rule of Origin for cotton or man-made fiber apparel articles under CAFTA is “yarn-forward.” This means the following processes must occur in one or more CAFTA countries:

Yarn Spun or Extruded, and Finished (“Wholly Formed”); Fabric Knit or Woven; Cutting or Knitting-to-Shape of All Components; Sewing or Assembly; Finishing; Packaging & Shipping

Wool Apparel The Rule of Origin for wool garments under CAFTA is “fabric-forward,” which permits the use of yarns of any origin. Other than the spinning or extruding and finishing of the yarn, all of the above steps also apply to wool garments.

CAFTA Chapter Rules apply to all shipments of “yarn-forward” cotton or man-made fiber garments and “fabric-forward” wool garments. See page 8.

CAFTA’s Short Supply provisions permit the use of certain non-U.S., non-regional inputs in the manufacture of CAFTA-qualifying (duty-free) garments (see page 23 for details).



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Chapter Rules for Knit and Woven Apparel (HTS Chapters 61 & 62)

Rule 1: Visible Linings Fabrics identified in specific HTS headings and subheadings must be “formed from yarn and finished” in the U.S. or a CAFTA Party (yarn may be of any origin), when used as visible lining material in men’s and women’s suits, suit-type jackets, skirts, overcoats, carcoats, anoraks, windbreakers, and similar articles. This restriction applies only to the visible lining fabric in the main body of the garment, excluding sleeves, and does not apply to any removable linings. Rule 2: Essential Character The Rule of Origin applies only to the component of the garment that determines the tariff classification of the garment (the essential character). All cutting or knitting-to-shape of all components must occur in one or more CAFTA countries, even though the yarn and/or fabric may be of any origin for components other than the essential character component. Rule 3: Elastic Bands or Narrow Elastic Fabrics Elastic bands or “narrow elastic fabrics” classified under HTS Nos. 5806.20 or 6002 must be “formed from yarn and finished” in the U.S. or one or more CAFTA countries (yarns – including spandex or other elastomeric yarns -- may be of any origin); latex used in such fabrics may be of any origin. Rule 4: Sewing Thread Sewing thread classified under HTS Nos. 5204, 5401, 5402 [Effective October 13, 2012], 5508, contained in CAFTA-originating garments (either used for assembly or decorative trim) must be “formed and finished” in one or more CAFTA countries. Fiber may be of any origin but it must be spun/extruded and finished into thread in a CAFTA country. Rule 5: Pocketing Fabrics Pocketing bag fabric for any pocket or pockets contained in CAFTA-originating garments must be formed and finished in one or more CAFTA countries from yarn wholly formed (spun or extruded, and finished) in one or more CAFTA countries (i.e. “yarn-forward”).



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Rule 6: Short Supply Effective October 13, 2012 sewing thread, visible lining fabrics, narrow elastic fabric, and pocketing bag fabric can be added to the list of materials eligible for Short Supply.



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Exceptions to Yarn-Forward Rule of Origin for Apparel

De Minimis Provision – No Expiration Date Up to 10 percent of the essential character component of a textile or apparel good (by weight) may be yarns and fibers of non-U.S. and non-CAFTA origin. However, elastomeric yarns (including spandex) are not eligible for de minimis treatment and must be of U.S. or CAFTA origin [HTS GN 29(d)(i)(A)] unless they are on the short supply list. Nylon Filament Yarn – No Expiration Date CAFTA-qualifying garments may include certain nylon filament yarns (other than elastomeric yarn) from Israel, Canada or Mexico. (This is the same exception permitted under the Africa Growth and Opportunity Act (AGOA), the Andean Trade Promotion and Drug Eradication Act (ATPDEA) and the Caribbean Basin Trade Partnership Act (CBTPA)) [HTS GN 29(d)(i)(B)]. The specific yarn classifications are:

HTS No. 5402.10.30, Single High Tenacity Multifilament Yarns of Nylon *

HTS No. 5402.10.60, Multiple, Folded, Cabled High Tenacity Yarns of Nylon

Filament * HTS No. 5402.31.30, Single Textured Yarns of Nylon Filament HTS No. 5402.31.60, Multiple, Folded, Cabled Textured Yarns of Nylon Filament HTS No. 5402.32.30, Single Textured Yarns of Nylon Filament HTS No. 5402.32.60, Multiple, Folded, Cabled Textured Yarns of Nylon Filament HTS No. 5402.41.10, Synthetic Filament Yarns, Nylon, Colored *

HTS No. 5402.41.90, Single Multifilament Other Yarns, of Nylon * HTS No. 5402.51.00, Single Other Twisted Yarns of Nylon Filament HTS No. 5402.61.00, Multiple, Folded, Cabled Other Yarns of Nylon Filament

* Modifications to the U.S. HTS effective February 3, 2007 changed some of

these tariff classifications as follows:

HTS No. 5402.10.30 to 5402.11.30 and 5402.19.30; HTS No. 5402.10.60 to 5402.11.60 and 5402.19.60; HTS No. 5402.41.10 to 5402.45.10; and HTS No. 5402.41.90 to 5402.45.90.



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Cumulation with Mexico – No Expiration Date, Quantitative Limits Apply CAFTA cumulation benefits permit the use of certain inputs from non-CAFTA trading partners which are a Party to a separate Free Trade Agreement (FTA) with the U.S. and each of the CAFTA countries. The CAFTA text specifically mentions Canada and Mexico. However, at this time, Mexico is the only country which meets the requirement of being a Party to an FTA with all of the CAFTA Parties (with the exception of the Dominican Republic as explained below). (The United States and Costa Rica are Parties to an FTA with Canada, but the remaining countries are still in negotiations with Canada) [GN 29(d)(vii)]. Effective August 15, 2008, a limited quantity of woven garments cut and assembled in one or more CAFTA countries may include materials from Mexico in place of CAFTA-originating inputs as required, and these garments may still enter the United States duty-free. CAFTA cumulation benefits are restricted by a set of annual quantitative limits as follows (for the U.S. market):

Total Woven Apparel 100 million SME Woven Cotton/MMF Skirts/Trousers (Not Denim) (sublimit) 45 million SME Woven Denim Skirts and Trousers (sublimit) 20 million SME Woven Tailored Wool Apparel (sublimit) ** 1 million SME

In addition to the limits above, CAFTA cumulation garments must also adhere to all of the Chapter Rules for Chapter 62 of the HTS (see page 8).

** Tailored wool garments not made from carded wool fabric, or made from wool yarns of average fiber diameter greater than 18.5 microns, using inputs from Mexico are unlimited. These wool

garments are also exempt from the Chapter Rules which apply to all other Cumulation garments.

The limits above will be reviewed by the CAFTA Parties and may be increased up to 200 million SME in proportion to the overall increase in U.S. imports of woven apparel from the CAFTA region. The CAFTA agreement offers Cumulation benefits only to those countries that have an FTA with both the U.S. and Mexico. Originally the Dominican Republic was allowed to use the Cumulation benefit even though it did not have an FTA with Mexico. The Dominican Republic was required to enter into an FTA with Mexico within five years of the entry into force of CAFTA, or by March 1, 2012. Since the Dominican Republic and Mexico did not conclude a FTA, the Dominican Republic is no longer eligible for Cumulation benefits.



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As with other shipments restricted by quantitative limits, CAFTA cumulation garments are not eligible for pre-clearance prior to the date of entry. The cumulation limits are not divided in any set way among the CAFTA countries. There is no allocation of the limited quantity available either among the five non-U.S. CAFTA countries, or among the individual exporters in each of those countries. Shipments from all five of the eligible CAFTA exporting countries are charged against the one common set of limits on a first-come, first-served basis. This means U.S. Customs and Border Protection will charge the shipment quantity (in SME) against the single limit and/or sublimit (if applicable) as goods enter the United States. With the August 15, 2008 implementation of CAFTA cumulation benefits, the U.S. and Mexico also enacted a new bilateral Customs Cooperation Agreement. This was one of the prerequisites for the implementation of cumulation benefits. This agreement authorizes U.S. Customs officials to visit Mexican factories in order to verify the production of the input which in turn is used for duty-free apparel shipments from the CAFTA region to the United States using CAFTA cumulation benefits. The language of the U.S.-Mexico agreement is identical to the CAFTA Customs Cooperation provisions which allow U.S. Customs to conduct production verification visits to CAFTA factories to confirm specific goods comply with CAFTA’s Rules of Origin. The North America Free Trade Agreement (NAFTA), implemented in 1994 between the U.S., Mexico and Canada, does not contain this language. Therefore, the U.S. required a separate agreement with Mexico in order to mirror the textile and apparel enforcement provisions found in CAFTA. See page 34 for more information about documentation and record-keeping requirements. Shipments claiming preferential treatment under CAFTA Cumulation provisions must cite HTS subheading 9822.05.11 (if subject to quantitative limits) or HTS subheading 9822.05.13 (for wool garments exempt from quantitative limits) on entry documents submitted to U.S. Customs and Border Protection (CBP).



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Tariff Preference Level(s) – Expiration Dates and Quantitative Limits Apply Costa Rica – 10 Years – 2009 to 2018 For a limited time (10 years), a limited quantity of specific apparel articles, cut and assembled in Costa Rica, may enter the United States duty-free using one of Costa Rica’s three Tariff Preference Levels (TPLs). All cutting or knitting-to-shape and assembly of all components must be done in Costa Rica. Although the origin of the yarn or fabric used to manufacture the garment does not matter, no pre-formed or pre-cut components (such as collars, cuffs, waist, ribbed knit waistbands etc.) are allowed. All cutting or knitting to shape, and all sewing or assembly must take place in Costa Rica. The CAFTA agreement states that Costa Rica and the United States “shall consult 18 months before the expiration of [the TPLs] regarding the operation of [the TPLs] and the availability of relevant yarns and fabrics in the region, with a view to the renewal of this provision.” Entries claiming preferential treatment under one of Costa Rica’s TPL provisions must cite one of the HTS Chapter 99 subheadings noted below. Following is a brief description for each of Costa Rica’s three TPLs: 1) Wool TPL (A) - Tailored Wool Apparel Articles Including Garments From

Wool Fabric of Yarn of Average Fiber Diameter of <=18.5 Microns (Finer Wool Fabric)(HTS Chapter 99-XV Note 16(a))

Garments eligible for preferential duty-free treatment using Wool TPL (A) include men’s, boys’, women’s, and girls’ tailored wool garments (including from wool fabric made of wool yarn having an average fiber diameter of <=18.5 microns) in Categories 433, 435 (suit-type jackets only), 442, 443, 444, 447 and 448, provided the garments are classified within headings 6203 and 6204 (certain woven garments only).*

The Chapter Rules apply to Costa Rica Finer Wool TPL garments (Wool TPL(A)). See page 8 for details.

* See Appendix A for the Wool TPL (A) 10-digit HTS Numbers (page 39). The annual limit for Costa Rica Wool TPL (A) is 500,000 SME. Claims for preferential treatment under Costa Rica Wool TPL (A) provision must cite HTS subheading 9915.62.05 on the entry documents presented to U.S. Customs and Border Protection.



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2) Wool TPL (C) – Tailored Wool Apparel Articles Other Than of Carded

Wool Fabric or of Yarn of Average Fiber Diameter >18.5 Microns (Coarser Wool Fabric) (HTS Chapter 99-XV Note 16 (c))

Garments eligible for preferential duty-free treatment using Wool TPL (C) include men’s, boys’, women’s, and girls’ tailored wool garments from wool fabric other than of carded wool fabric or made from wool yarn having an average fiber diameter of >18.5 microns in Categories 433, 435 (suit-type jackets only), 442, 443, 444, 447 and 448, provided the garments are classified within headings 6203 and 6204 (certain woven garments only)*.

The Chapter Rules do not apply to Costa Rica Coarser Wool TPL garments (Wool TPL (C)).

* See Appendix B for the Wool TPL (C) 10-digit HTS Numbers (page 42). If a garment is eligible for preferential treatment under both Wool TPL (A) and Wool TPL (C), shipments are to be charged against Wool TPL (C). Only if the limit for Wool TPL (C) is reached, then such shipments are to be charged against Wool TPL (A) (and must then comply with all Chapter rules). The annual limit for Costa Rica Wool TPL (C) is 500,000 SME. Claims for preferential treatment under Costa Rica Wool TPL (C) provision must cite HTS subheading 9915.62.15 on the entry documents presented to U.S. Customs and Border Protection. TPL shipments are not eligible for pre-clearance prior to arrival at a U.S. port.



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3) Special Women’s Knit Swimwear TPL (Chapter 99-XV Note 17) Garments eligible for preferential duty-free treatment using Costa Rica’s Swimwear TPL include women’s knit swimwear that is specially designed to accommodate post mastectomy breast prostheses, containing two full size interior pockets with side openings, two preformed cups, a supporting elastic band below the breast, and vertical center stitching to separate the two pockets.

The Chapter Rules do not apply to Costa Rica Swimwear TPL garments.

The annual limit for Costa Rica Swimwear TPL is as follows:

January 1, 2009 to December 31, 2009: 100,000 SME January 1, 2010 to December 31, 2010: 106,000 SME January 1, 2011 to December 31, 2011: 112,360 SME January 1, 2012 to December 31, 2012: 119,102 SME January 1, 2013 to December 31, 2013: 126,248 SME January 1, 2014 to December 31, 2014: 133,823 SME January 1, 2015 to December 31, 2015: 133,823 SME January 1, 2016 to December 31, 2016: 133,823 SME January 1, 2017 to December 31, 2017: 133,823 SME January 1, 2018 to December 31, 2018: 133,823 SME

Claims for preferential treatment under Costa Rica Swimwear TPL must cite one of the following HTS subheadings on the entry documents presented to U.S. Customs and Border Protection:

Subheading 9915.61.03: for garments classified in HTS No.6112.41.00; Subheading 9915.61.04: for garments classified in HTS No.6112.49.00.

TPL shipments are not eligible for pre-clearance prior to arrival at a U.S. port.



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Tariff Preference Level(s) – Expiration Dates and Quantitative Limits Apply Nicaragua – 9 Years – 2006 to 2014 For a limited time (eliminated at the beginning of year 10), a limited quantity of Cotton and Man-Made Fiber Apparel, and (effective August 15, 2008) certain Men’s Wool Suit-type Coats in Category 433, cut and assembled in Nicaragua from fabric of any origin may enter the United States duty-free. CAFTA entered into force for Nicaragua on April 1, 2006, which means 2006 is considered the first year of TPL benefits. Therefore, Nicaragua’s TPL expires on December 31, 2014, the end of the ninth year of CAFTA benefits for Nicaragua. All cutting or knitting-to-shape and all sewing or assembly of all components must be done in Nicaragua. Although the origin of the yarn or fabric used to manufacture the garment does not matter, no pre-formed or pre-cut components (such as collars, cuffs, waist, ribbed knit waistbands etc.) are allowed. All cutting or knitting to shape, and all sewing or assembly must take place in Nicaragua. However, post-assembly finishing operations may be performed in one or more CAFTA countries prior to shipment to the U.S. market.

Nicaragua TPL garments are exempt from the CAFTA Chapter Rules.

The annual limit is 100 million SME, of which no more than 1.5 million SME may be Wool Coats in Category 433. The initial quota period was April 1, 2006 to December 31, 2006 (Year 1); from 2007 through 2014 the quota period is January 1 to December 31. Claims for preferential treatment under Nicaragua’s TPL provision must cite HTS subheading 9915.61.01 on the entry documents presented to U.S. Customs and Border Protection. The CAFTA Special Program Indicator of “P” is not required for TPL entries. Additionally, U.S. Customs requires an original TPL Certificate, issued by Nicaragua’s Office of Textile Administration (OAT), at the time of entry. The OAT manages and oversees Nicaragua’s allocation of the TPL. TPL shipments are not eligible for pre-clearance prior to arrival at a U.S. port.



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Nicaragua 1-for-1 Commitment for Cotton and MMF Woven Trousers Shipments of Cotton and Man-Made Fiber Woven Trousers under Nicaragua’s TPL are further limited by the 1-for-1 commitment. The 1-for-1 commitment states that each Nicaragua TPL shipment of these garments must be matched with a Nicaraguan shipment of woven trousers made from U.S. fabrics of U.S. yarns. In the event that there are more TPL shipments than shipments using U.S. fabrics, the United States reduces Nicaragua’s TPL limit for the following year to account for the “shortfall.” The 1-for-1 commitment applies only to Cotton and Man-made Fiber Woven Trousers. The U.S. reviews the entry data for TPL shipments for the period of January 1 to December 31 each year. However, Nicaragua is able to count shipments of woven trousers made from U.S. fabric and U.S. yarns exported in the months of January, February and March to offset the initial shortfall for the period ending the previous December. This means the U.S. review and assessment of any penalty to the following year’s TPL is not done until at least May when the official U.S. import data for March of the previous year becomes available. In its practical application, the first assessment of the 1-for-1 commitment compared TPL shipments from April 1, 2006 to December 31, 2006 (9 months) vs. U.S. fabric shipments from April 1, 2006 to March 31, 2007 (12 months). Thereafter, TPL shipments are reviewed for the full calendar year (12 months) vs. U.S. fabric shipments from April 1 to March 31 (12 months). To distinguish the already CAFTA-originating shipments of woven trousers from U.S. fabrics and yarns from other CAFTA-originating shipments (which may use regional fabrics and regional yarns), the United States created a special HTS Chapter 99 breakout and marker for these shipments. U.S. importers are asked to denote woven trouser shipments made from U.S. fabrics and yarns by marking HTS subheading 9915.61.05 on entry documents. This marker is in addition to indicating the shipment is CAFTA-originating with the Special Program Indicator of “P” by the garment’s HTS classification. From the formal entry data, the United States is able to track the exact quantity of Cotton and MMF trousers that claim CAFTA duty-free treatment under the TPL or which meet the “yarn-forward” Rule of Origin. The U.S. is able to distinguish garments made from U.S. fabrics and U.S. yarns from other CAFTA fabrics and yarns only if the importer uses the additional Chapter 99 marker, which is not required for entry or to secure duty-free CAFTA treatment. This data is publicly available and updated each month on OTEXA’s website: http://otexa.ita.doc.gov/agoa-cbtpa/nicaragua_2008tpl.htm

http://otexa.ita.doc.gov/agoa-cbtpa/nicaragua_2008tpl.htm



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Each Nicaraguan exporter is required to meet this commitment individually, thereby ensuring an overall balance and successful fulfillment of the commitment for Nicaragua on the whole. Once the U.S. review and penalty assessment is complete, the U.S. confidentially shares the import data, including the exporting company names, with Nicaraguan officials. Relying on the official import data, Nicaragua’s OAT verifies each company’s 1-for-1 account. Any penalty assessed against Nicaragua by the United States is proportionately shared among the trouser exporters which failed to meet the 1-for-1 commitment. Nicaragua’s policy is to partially revoke the current year’s TPL allocation for the specific manufacturers responsible for the shortfall. Historical Usage of the 1-for-1 Commitment

Under the terms of the 1-for-1 commitment, each Nicaragua TPL shipment of woven trousers must be matched with a Nicaraguan shipment of woven trousers made from U.S. fabrics of U.S. yarns. Failure of these numbers to match means the U.S. reduces Nicaragua’s TPL limit for the following year to account for the shortfall. These shortfalls are illustrated in the table below. The only year when there was no shortfall in the use of U.S fabric is 2010.

Review of the Nicaragua Tariff Preference Level (TPL)

1–for–1 Commitment

2006 Official Shortfall

2,415,661 SME

(Charged July 24, 2007)


12,102,954 SME

(Charged June 27, 2008)


11,381,738 SME

(Charged June 26, 2009)


761,138 SME (Charged July 6, 2010)

2010 Official Shortfall 0 SME


3, 470, 941 SME

(Charged July 9, 2012)



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Earned Import Allowance Program (DR) In 2008, the U.S. Congress created the Earned Import Allowance Program to extend additional duty-free benefits to the Dominican Republic. The Earned Import Allowance Program rewards the use of U.S. fabrics of U.S. yarns in the production of woven cotton bottoms (trousers, shorts, skirts) with credit for duty-free treatment of comparable garments made from fabric of any origin. These benefits are applied in a ratio of 2 SME of U.S. fabrics of U.S. yarns to 1 SME of fabric of any origin. The program is administered by the Department of Commerce’s Office of Textiles and Apparel (OTEXA). Currently, the Dominican Republic is the only country eligible for this Earned Import Allowance Program. Benefits for the Dominican Republic began on December 1, 2008 and are scheduled to last for 10 years. OTEXA’s website now includes an online application process for a “producer or entity controlling production” of the garment manufacturing process in the Dominican Republic to open an “Earned Import Allowance” account. The entity holding the account may then submit a request to deposit credits to the account and/or submit a request for the issuance of an Earned Import Allowance certificate. There is no pre-set quantity for the Earned Import Allowance. Whether or not a certificate is issued for the use of foreign fabric depends only on the 2-to-1 ratio of credits accumulated in the account. OTEXA’s Earned Import Allowance Website: http://web.ita.doc.gov/tacgi/eamain.nsf/6e1600e39721316c852570ab0056f719/abf187b4c9ffc0f9852574d00058ff56?OpenDocument Product coverage for the Earned Import Allowance Program includes woven cotton (but not denim) trousers, bib and brace overalls, breeches and shorts, skirts and divided skirts, and pants. The Earned Import Allowance Program, although not part of CAFTA, incorporates references to some of CAFTA’s restrictions and flexibilities. The flexibilities are that the U.S. fabric of U.S. yarns may:

include up to 7 percent (by weight) of non-U.S. yarns or fibers (similar to CAFTA’s De Minimis provision)(see page 10);

include certain nylon filament yarns from Israel, Canada or Mexico (see page 10); or

be used in combination with items on any U.S. short supply list (CAFTA, NAFTA, AGOA, CBTPA, ATPDEA, etc).

http://web.ita.doc.gov/tacgi/eamain.nsf/6e1600e39721316c852570ab0056f719/abf187b4c9ffc0f9852574d00058ff56?OpenDocument

http://web.ita.doc.gov/tacgi/eamain.nsf/6e1600e39721316c852570ab0056f719/abf187b4c9ffc0f9852574d00058ff56?OpenDocument



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The restrictions are that all eligible articles (made from U.S. fabric or foreign fabric) are subject to the CAFTA Rules for Chapter 62 (see page 8). Shipments from the Dominican Republic of cotton woven bottoms made from non-CAFTA fabric claiming preferential treatment under the Earned Import Allowance Program must cite HTS subheading 9822.06.05 on entry documents submitted to U.S. Customs and Border Protection (CBP). Shipments must also be accompanied by an Earned Import Allowance Certificate issued by the U.S. Department of Commerce.



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Single Transformation – No Expiration Date, No Quantitative Limits Under CAFTA, select garments are eligible for a Single Transformation or a “cut and sew” Rule of Origin. These garments may be made from fabric of any origin. The cutting or knitting-to-shape and assembly of all components must occur in one or more CAFTA countries. Quantities are unlimited.

The Chapter Rules do not apply to Single Transformation garments listed below.

Garments are described below using the abbreviated HTS descriptions noted in the CAFTA agreement or pocketing side letters. For a complete list of the 10-digit HTS codes and the applicable Column 1 duty rate, please see Appendix C (page 42). Original Woven Garments The original text of the CAFTA Agreement extends Single Transformation or “cut and sew” benefits only to the select woven garments listed below:

Brassieres: HTS Nos. 6212.10 (a total of 8 items @ 10-digit HTS classification level);

Boxer Shorts: HTS Nos. 6207.11, 6207.19.90, 6208.91.30, 628.92.00 (a

total of 7 items @ 10-digit HTS classification level);

Woven Pajamas: HTS Nos. 6207.21, 6207.22, 6207.91.30, 6207.92.40 (current 2008 HTS No. is 6207.99.85.10), 6208.21, 6208.22 (a total of 11 items @ 10-digit HTS classification level); and

Woven Girls’ Dresses: HTS Nos. 6204.42.30 (not corduroy), 6204.43.40,

6204.44.40 (5 items @10-digit HTS classification level). Additional Knit and Woven Garments (Based on Pocketing Letters) In response to the U.S. request to amend the textile and apparel Rules of Origin for more restrictive treatment of pocketing fabrics (Chapter Rule 5, see page 8), Costa Rica, the Dominican Republic, El Salvador, Guatemala and Honduras each negotiated additional Single Transformation benefits for additional knit and woven garments. Although negotiated individually, the new benefits are available to all CAFTA Parties. The “pocketing amendments” entered into effect on August 15, 2008.



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The additional items are listed below:

Babywear Dresses: Only HTS No. 6209.20.10.00; Women’s Coats :

Cotton Coats in Category 335 (a total of 43 items @ 10-digit HTS classification level);

Certain Wool Coats in Category 435: Only HTS Nos. 6202.91.20.11, 6204.39.80.20, and 6211.41.00.55;

Certain MMF Coats in Category 635: Only HTS Nos. 6202.93.45.00, 6204.33.20.00, and 6204.39.80.30;

Certain Non-Cotton Vegetable Fiber (NCVF) Coats in Category 835: Only HTS Nos. 6204.39.80.50 and 6204.39.80.60;

Women’s MMF Suits in Category 644 (a total of 5 items @ 10-digit HTS classification level);

Men’s Suit-type Jackets: Only HTS No. 6203.39.90.20;

Men’s Woven Yarn-Dyed Dress Shirts: Only HTS Nos. 6205.20.20.16

(Cotton) and 6205.30.20.10 (MMF);

Certain Ensemble Components: HTS Nos. 6204.23.00 and 6204.29. Additional Woven Garments (Effective October 13, 2012)

Woven Pajamas: HTS Nos. 6208.91.30, 6208.92.00, 6208.99.20 (a total of 8 items @ 10-digit HTS classification level).



23

CAFTA Short Supply – No Expiration Date, No Quantitative Limits The CAFTA agreement’s textile and apparel provisions include comprehensive “Short Supply” benefits for yarns, fabrics, made-ups and apparel. A “Short Supply” item is defined as an input required by the Rules of Origin to be of U.S. or regional origin which is acknowledged to be “not available in commercial quantities in a timely manner” from U.S. or CAFTA suppliers. Short Supply claims (for either textile or apparel products) must cite HTS subheading 9822.05.01 and specify which of the Short Supply items are used in the finished product imported into the United States. CAFTA Short Supply eligible inputs are listed in U.S. note 20 to subchapter XXII of Chapter 98 (items 1 to 70); and subsequent additions to the list (by the CAFTA Short Supply Mechanism explained on page 26) are identified on the complete list which can be found on the website of the Office of Textiles and Apparel (OTEXA) of the Department of Commerce’s International Trade Administration (ITA): http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/aa4a8d4e4e834fe4852572c700477f2e/f30332701dfb867f852572c70047dfa0?OpenDocument The CAFTA Short Supply list is maintained by OTEXA and additions are listed in order by effective date. The IDS Special Report, “CAFTA Short Supply: A Reference Guide to Short Supply Items” sorts the current Short Supply items by HTS number, providing an index to the CAFTA Short Supply Item Number found on OTEXA’s list. A copy of this report is available from IDS upon request. CAFTA Short Supply Qualities Must Match Exactly The exact definitions and other characteristics required to meet CAFTA Short Supply rules are found on OTEXA’s CAFTA Short Supply list. Without exception, all of the qualities listed in the official description – which in addition to HTS number may include specific fiber mixes, yarn sizes, width or finishing operations – must match exactly. In many cases, the same HTS number appears multiple times on the CAFTA Short Supply list because of qualitative differences in the fiber, yarn or fabric that are more specific than its tariff classification. For several of the fabrics on the CAFTA Short Supply list, one specification that proved to be problematic is the exact fiber percentages listed in the description of some fabrics. These exact fiber percentages leave no room for standard tolerances or variations. To address this issue, many of the subsequent additions to the CAFTA Short Supply list (using the CAFTA Short Supply Mechanism described in the next section) provide a range of percentages (i.e. the tolerances are specified) in the description of the fabric’s fiber blend.

http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/aa4a8d4e4e834fe4852572c700477f2e/f30332701dfb867f852572c70047dfa0?OpenDocument

http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/aa4a8d4e4e834fe4852572c700477f2e/f30332701dfb867f852572c70047dfa0?OpenDocument



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The specific Short Supply Rules of Origin for yarns, fabrics, made-ups and apparel are outlined below. For all products, CAFTA’s De Minimis provisions apply to the Short Supply finished product. Elastomeric Yarns (Effective October 13, 2012) For garments or made up articles, elastomeric yarns contained in CAFTA Short Supply fabrics may be non-originating. Yarns and Fabrics The CAFTA Short Supply rule for textile goods classified in Chapters 50 through 60 (yarns and fabrics) is that the good must be wholly formed in the territory of one or more of the CAFTA countries from:

one or more of the fibers or yarns on the CAFTA Short Supply list; or a combination of Short Supply fibers and/or yarns and CAFTA-originating

fibers and yarns. Made-Up Articles The CAFTA Short Supply rule for textile goods classified in Chapters 63 or 94 (made-up articles) states the good must be cut or knit-to-shape, or both, and sewn or otherwise assembled in the territory of one or more CAFTA countries. The essential character component of the good must be wholly of:

one or more fabrics on the Short Supply list; one or more fabrics formed in a CAFTA country from one or more yarns

found on the Short Supply list; or any combination of such fabrics or fabrics made from such yarns and

CAFTA-originating fabrics.

The Chapter Rules do not apply to Short Supply made-up articles.



25

Knit and Woven Apparel The CAFTA Short Supply rule for garments classified in Chapters 61 or 62 state the apparel article must be cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more CAFTA countries, and the fabric of the outer shell of the garment (exclusive of collars, cuffs, and ribbed waistbands**) must be wholly:

one or more of the fabrics on the CAFTA Short Supply list; one or more fabrics formed in a CAFTA country from one or more yarns

found on the CAFTA short supply list; any combination of the above with CAFTA-originating fabrics.

By definition, “outer shell” is more than just the component that confers the “essential character” to the garment.

The Chapter Rules do not apply to Short Supply garments.

Note that ALL cutting, knitting to shape or both, and ALL sewing or assembly must be done in one or more CAFTA countries. Although the collars, cuffs, and ribbed knit waistbands may be of any yarn or fabric, those collars, cuffs, and ribbed knit waistbands must be cut or knit-to-shape in a CAFTA country. No pre-formed or pre-cut components are allowed. ** Ribbed waistbands must be in combination with cuffs and identical in fabric construction to the cuffs. All components, including ribbed waistbands, must be knit to shape.



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CAFTA Short Supply Mechanism In addition to the items contained in Annex 3.25 of the CAFTA text, the agreement also directs the United States to create a process for the consideration of requests to either add or delete items from the CAFTA Short Supply list. The idea of a Short Supply mechanism to add items to a short supply list is adapted from CAFTA’s predecessor, the unilateral U.S. preference program, the Caribbean Basin Trade Partnership Act (CBTPA). However, compared to CBTPA, CAFTA specifically shortens the timeline for the consideration of new short supply requests and, for the first time, includes language that allows for items to be removed from the CAFTA Short Supply list. The CAFTA agreement spells out the following parameters with respect to the consideration of requests to add items to the CAFTA Short Supply list:

Within 30 business days after receiving a request, the United States will add a fabric, fiber or yarn to the CAFTA Short Supply list based on information that the item is not available in commercial quantities in a timely manner from a producer in the CAFTA region. If no interested entity objects to the request, the item will be added to the list.

The U.S. may extend the period of time for making a determination as to

the commercial availability of an item requested to be added to the CAFTA Short Supply list by 14 business days, as needed, in order to meet with interested parties and gather additional information.

If the U.S. does not make a determination within 15 business days

following either the 30 business days or 44 business days described above, the request shall be granted and the item added to the CAFTA Short Supply list.

Requests may be granted in unrestricted or restricted quantities. If added

as a restricted quantity, within 6 months of adding an item to the CAFTA Short Supply list, the United States may eliminate the restriction.

Additionally, the text states that any interested entity may request the removal of any item added to the CAFTA Short Supply list 6 months after it is added to the list. The text mandates the United States make a determination about any request to remove an added item within 30 business days. The effective date of the removal is then 6 months after the announcement of the U.S. decision. Rather than just removing the item, the United States may also introduce a restriction on the quantity allowed for short supply benefits.



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The CAFTA agreement requires the United States to publish procedures for the consideration of CAFTA Short Supply requests “promptly after the date of entry into force” of the agreement. With the initial proclamation to implement CAFTA with El Salvador on March 1, 2006, President Bush delegated the authority to manage and oversee the CAFTA Short Supply process to the Committee for the Implementation of Textile Agreements (CITA). In a Federal Register notice published on February 26, 2006 (as interim procedures), on March 21, 2007 (as final procedures), and September 15, 2008 (as modifications to the procedures), CITA outlined the parameters for the submission and consideration of requests to add/delete items to/from the CAFTA Short Supply list. These procedures specifically define who is eligible to file or respond to a request to add an item to the CAFTA Short Supply list; the information that must be included in any petition; and an explanation of “due diligence” process which is the responsibility of the party submitting the request. The due diligence process of preparing a petition for CITA requires the party seeking to add an item to the CAFTA Short Supply list to attempt to purchase the item from any and all potential producers in the CAFTA region. Through this process of seeking to buy the item from regional suppliers, the petitioner must document that it is not available in commercial quantities in a timely manner from these prospective suppliers. Once a petition is filed with CITA, the only objections that may be raised are “offers to supply” the named item. In keeping with the CAFTA text noted above, if no objections are filed, then the item will be added to the CAFTA Short Supply list. If a CAFTA regional producer states it is able to produce and supply the item, then CITA may rely on the option to call a meeting of the interested parties to gather more information before making its determination. Additional information on the CAFTA Short Supply Mechanism, including a copy of CITA’s procedures and Frequently Asked Questions (FAQs), may be found on OTEXA’s website: http://web.ita.doc.gov/tacgi/fta.nsf/6b2bbf77ad031a928525737d0053e0b1/5e747f200543c3c1852573a900660b33?OpenDocument Interested parties are invited to sign up for email notifications of new CAFTA Short Supply requests or announcements: http://web.ita.doc.gov/tacgi/CABroadcast.nsf/Document?Openform

http://web.ita.doc.gov/tacgi/fta.nsf/6b2bbf77ad031a928525737d0053e0b1/5e747f200543c3c1852573a900660b33?OpenDocument

http://web.ita.doc.gov/tacgi/fta.nsf/6b2bbf77ad031a928525737d0053e0b1/5e747f200543c3c1852573a900660b33?OpenDocument

http://web.ita.doc.gov/tacgi/CABroadcast.nsf/Document?Openform



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OTEXA’s website also tracks the status of all past and pending requests to add items to the CAFTA Short Supply list as well as requests to remove items. There has been only one request to remove a product from the CAFTA Short Supply list. As published in the Federal Register on August 23, 2011, the Committee for the Implementation of Textile Agreements (CITA) determined that an acceptable substitute for certain compacted, plied, ring spun cotton yarns (compacted, plied, ring spun cotton yarns, with yarn counts in the range from 42 to 102 metric, classified in subheadings 5205.42.0020, 5205.43.0020, 5205.44.0020, 5205.46.0020, and 5205.47.0020) is now available in the CAFTA-DR countries in commercial quantities in a timely manner. These yarns were removed from the CAFTA Short Supply list.



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CAFTA Folklore Provision The text of the CAFTA agreement includes language providing potential duty-free benefits for folklore and handicraft items. These goods must first be identified and mutually agreed upon by the Parties of the Agreement and be one of the following:

Hand-loomed fabrics of a cottage industry; Hand-loomed cottage industry goods made of such hand-loomed fabrics;

or Traditional folklore handicraft goods.

At this time, there are no specific folklore products identified by any of the Central American countries or the Dominican Republic. A “competent authority” in the exporting country would be required to issue an official certification as directed by the U.S. Committee for the Implementation of Textile Agreements (CITA). Folklore claims (for either textile or apparel products) must cite HTS subheading 9822.05.25 and be properly certified by the exporting Party according to the criteria established by CITA.



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Reduced Duty Programs for Certain Apparel and Made-Ups In addition to the Rules of Origin for textile and apparel products which confer duty-free status to U.S. imports from the six CAFTA partners, CAFTA benefits also include two specific reduced duty programs for select apparel and made-up articles. These benefits permit the limited use of either U.S. fabrics made from non-CAFTA origin yarns or foreign fabrics. A description of the requirements for claiming these reduced duty benefits, and the restrictions associated with each program, are described below. Most-Favored-Nation Rates of Duty for Non-Originating Fabrics For textile and apparel goods classified in HTS Chapters 61 (knit garments), 62 (woven garments) or 63 (made-up articles) which do not meet the respective CAFTA Rule of Origin, certain goods may qualify for reduced treatment when imported into the United States. Goods must be cut and assembled from U.S. formed fabric or components knit-to-shape in the United States, using U.S. formed and finished sewing thread in order to qualify for this program. Yarns of any origin may be used to make the U.S. formed fabric. Provided the requirements below are all met, the U.S. will assess regular Most-Favored-Nation (MFN) rates of duty on the full value of the finished good minus the value of “fabrics, components or materials” of the United States used in the production of the good. The benefit requires the following:

fabric must be wholly formed in the United States (from yarns of any origin) which means all of the production processes and finishing operations, starting with the weaving, knitting, needling, tufting, felting, entangling or other process, and ending with a fabric ready for cutting and assembly without further processing, took place in the United States; and

finished good must be assembled with thread wholly formed in the United

States; this means the fibers must be spun or extruded into thread, and the thread finished in the United States (this is more restrictive than the CAFTA Chapter Rule requirement for originating goods to use regional sewing thread).

Claims for preferential treatment under the CAFTA MFN rates of duty provision must cite HTS subheading 9822.05.10 on the entry documents presented to U.S. Customs and Border Protection.



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Reduced Duty Treatment for Certain Woven Garments Effective August 15, 2008, specific woven apparel articles that do not otherwise meet the CAFTA Rule of Origin or any of the exceptions to those rules may be eligible for a discounted rate of duty, regardless of the origin of the fabric. All of the cutting or knitting-to-shape and sewing or assembly of these garments must occur in one or more CAFTA countries.

All Chapter Rules apply to these Discounted Duty Garments. See page 8.

The following items are eligible for a duty reduction of 0.5% from Column 1 rates (i.e. from 16.6% to 16.1%):

HTS No. 6202.11.00, Women’s and Girls’ Woven Wool Overcoats HTS No. 6203.31.90, Men’s and Boys’ Woven Wool Suit-type Jackets HTS No. 6203.33.10, Men’s and Boys’ Woven Synthetic Fiber Suit-type Jackets, >=36%

Wool HTS No. 6203.41.18, Men’s and Boys’ Woven Wool Trousers and Shorts of Fine Animal

Hair HTS No. 6203.42.40, Men’s and Boys Woven Cotton Trousers and Shorts HTS No. 6203.43.30, Men’s and Boys’ Woven Synthetic Fiber Trousers and Shorts,

>=36% Wool HTS No. 6204.62.40, Women’s and Girls’ Woven Cotton Trousers and Shorts

The following items are eligible for a duty reduction of 2% from Column 1 rates (i.e. from 27.9% to 25.9%):

HTS No. 6203.12.20.20, Men’s Woven Other Synthetic Fiber Suits HTS No. 6203.43.40, Men’s and Boys’ Woven Other Synthetic Fiber Trousers and Shorts HTS No. 6204.63.35, Women’s and Girls’ Woven Other Synthetic Fiber Trousers and

Shorts

Claims for preferential treatment under the CAFTA Discounted Duty provision must cite the correct HTS Chapter 98 subheading (9822.05 - .30 to .70)(varies by garment type) on the entry documents presented to U.S. Customs and Border Protection. A complete list of the 10-digit HTS classifications for eligible garments and the corresponding subheadings are shown in Appendix D (page 45).



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CAFTA Safeguard Provision The CAFTA text includes a special Textile Safeguard provision, available for use by all of the Parties to the agreement during the transition period following implementation. The transition period is 5 years. The Textile Safeguard provision expired on February 28, 2011. The Textile Safeguard permits an importing Party (any of the CAFTA countries) to reinstate or “snap-back” to the regular Column 1 rates of duty for a specific product for a period of up to 3 years. The criteria for utilizing the Textile Safeguard provision are as follows:

…if, as a result of the reduction or elimination of duty provided for in this Agreement, a textile or apparel good… is being imported… in such increased quantities, in absolute terms or relative to the domestic market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent necessary to prevent or remedy such damage and to facilitate adjustment, apply a textile safeguard…

The agreement spells out a specific timeline for consultations in the event a CAFTA Party decides to pursue remedy action using the Textile Safeguard. The importing Party and the exporting Party are directed to hold bilateral consultations for no more than 60 days, after which the importing Party will make a decision of whether or not to apply the safeguard within an additional 30 days. If remedy action is taken, i.e. duties are reinstated, then the exporting Party is entitled to concessions from the importing Party “having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the textile safeguard measure.” Textile Safeguard actions may not be applied for longer than 3 years, may not be applied to the same product more than once, and may not be maintained beyond the expiration of the transition period (February 28, 2011).



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U.S. CAFTA Safeguard on Socks from Honduras Throughout the CAFTA implementation process, U.S. sock producers and their elected officials applied continuous pressure on the White House for additional protection from imports of socks. Specifically, the U.S. sock industry sought either a change to the CAFTA Rule of Origin for duty-free treatment for socks, or to initiate a Textile Safeguard investigation and thereby reinstate Column 1 duty rates for a limited time. U.S. negotiators pressed for this change during the negotiation of the pocketing amendments. However, none of the other CAFTA Parties agreed to the U.S. proposal. The U.S., therefore, turned to the CAFTA Textile Safeguard mechanism. A recap of the timeline for the U.S. safeguard action follows:

On August 21, 2007, the U.S. Committee for the Implementation of Textile Agreements (CITA) requested public comments regarding a possible CAFTA Textile Safeguard action against imports of Cotton, Wool and Man-Made Fiber Socks from Honduras.

On January 18, 2008, CITA announced its determination to proceed with a

Safeguard Action and formally requested consultations with Honduras.

On April 25, 2008, CITA announced the U.S. decision to apply a remedy measure, but only to Cotton Socks, and only for six months; until December 31, 2008.

On January 1, 2009, the U.S. CAFTA safeguard action against Cotton

Socks from Honduras expired. The end result of the U.S. CAFTA Textile Safeguard investigation against socks imported from Honduras was the application of 5 percent duty across the board (which is lower than the Column 1 rate of duty) on all Cotton Socks imported from Honduras. The effective date for the remedy action was July 1, 2008 until December 31, 2008. During consultations, the U.S. and Honduras agreed to this shorter safeguard period (the maximum would permit the additional duties until the end of the transition period on February 28, 2011) and an additional duty rate of only 5 percent instead of the full Column 1 rates for Cotton Socks. In exchange, Honduras did not seek the compensation it was otherwise entitled to. This was the only case filed under the CAFTA Textile Safeguard.



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Documentation and Record-Keeping Requirements For imports into the United States, a claim for preferential treatment under CAFTA may be filed at the time of entry by placing a Special Program Indicator (SPI) “P” as a prefix to the HTS subheading for each good or line item for which benefits are claimed. Some apparel and made-up goods that qualify for CAFTA benefits but do not meet the “yarn-forward” or “fabric-forward” Rule of Origin must also cite the HTS Chapter 98 or 99 subheading which corresponds to the applicable exception to that Rule of Origin, as follows:

9822.05.01: CAFTA Short Supply Articles (Duty-free, unlimited) 9822.05.05: Cumulation for Woven Apparel (Duty-free, limits apply) 9822.05.10: CAFTA MFN Duty Rate (Reduced Duty Rates) 9822.05.11: CAFTA Cumulation (Duty-free, limits apply) 9822.05.13: CAFTA Wool Cumulation (Duty-free, exempt from limit) 9822.05.25: CAFTA Folklore Articles 9822.05.30 - 70: CAFTA Discounted Duty Garments (Reduced Duty

Rates)(see Appendix D) 9822.06.05: Earned Import Allowance Program (Duty-free)

Cumulation garments will be charged against the U.S. quantitative restraints at the time of entry. Short Supply claims should also indicate the CAFTA Short Supply list number for the fiber, yarn or fabric used in the finished imported product. For garments utilizing one of CAFTA’s TPL benefits, the SPI of “P” is not required (all duty-free, limits apply):

9915.61.01: Nicaragua TPL for Cotton and MMF Apparel, and Men’s Suit-type Wool Coats

9915.61.03: Costa Rica TPL for Swimwear in HTS No. 6112.41.00 9915.61.04: Costa Rica TPL for Swimwear in HTS No. 6112.49.00 9915.62.05: Costa Rica Wool TPL (A) 9915.62.15: Costa Rica Wool TPL (C)

U.S. Customs requires an original TPL Certificate for entry for shipments claiming CAFTA benefits through Nicaragua’s TPL. Additionally, those shipments of Cotton or MMF Woven Trousers from Nicaragua made from U.S. fabric of U.S. yarns (which are CAFTA-originating and therefore already use the SPI of “P”) should also note:

9915.61.05: Nicaragua Woven Cotton or MMF Trousers Made from U.S. Fabric from U.S. Yarns



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Certification and Documentation Requirements In addition to the SPI of “P”, notation of the Chapter 98 or 99 subheading as appropriate, or Nicaragua TPL Certificate as needed, the importer is expected to provide a written or electronic certification “to include reasonable reliance on information in the importer’s possession” that the good qualifies for CAFTA treatment according to CAFTA’s Rules of Origin. The importer must be prepared to submit, upon request from U.S. Customs and Border Protection (CBP), the certification or other information to support the claim for preferential treatment. The back up documentation or other information is not needed at the time the claim is made or for entry purposes (with the exception of the Nicaragua TPL Certificate). However, it is the importer’s responsibility to retain supporting documentation for all claims for 5 years. There is no prescribed format for the certification and no set Certificate of Origin form for CAFTA goods. Although there are no set forms required for CAFTA claims, information contained in two U.S. Customs notices outline the data elements for the certification of origin or preference claim under CAFTA:

CAFTA Implementation Instructions (With El Salvador, Amended): This April 26, 2006 CBP Memorandum (which updates a set of instructions first issued on March 3, 2006) includes Attachment A (page 15) with a list of documentation data elements that may be required to verify a CAFTA claim, as well as sample certification language (page 16).

The full document can be found on CBP’s website: http://www.cbp.gov/xp/cgov/trade/trade_programs/international_agreements/free_trade/dominican_republic/ The list of data elements includes:

Name and address of importer; Name and address of exporter; Name and address of producer; Description of the good; HTS number; Preference criterion; Single shipment – invoice number; Multiple shipments of identical goods – provide a blanket

statement (for a maximum of 12 months); Authorized signature, company, title, telephone, fax, e-mail

and certification date Certification as follows:

http://www.cbp.gov/xp/cgov/trade/trade_programs/international_agreements/free_trade/dominican_republic/

http://www.cbp.gov/xp/cgov/trade/trade_programs/international_agreements/free_trade/dominican_republic/



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I certify that: The information on this document is true and accurate and I assume the responsibility for providing such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain, and present upon request, documentation necessary to support this certification, and to inform, in writing, all persons to whom the certificate was given of any changes that could affect the accuracy or validity of this certification; The goods originated in the territory of one or more of the Parties, and comply with the origin requirements specified for those goods in the United States-Dominican Republic-Central America Free Trade Agreement, there has been no further production of any other operation outside of the territories of the parties, other than unloading, reloading, or any other operation necessary to preserve it in god condition or to transport the good to the United States; and This certification consist of __ pages, including all attachments.

TBT-07-019, Documents Used to Verify Free Trade Agreement and Legislated Trade Program Claims for Textiles and Wearing Apparel: In this notice CBP provides clarification with respect to the primary documents importers must submit to confirm the origin of raw materials used in the production of CAFTA goods.

Depending on the applicable Rule of Origin, source documents may be requested to verify the origin of the fiber, yarn, fabric, sewing thread, elastic bands, visible linings, pocketing fabric, Mexican material (for cumulation), spandex (for all goods including Short Supply fabrics), in addition to the garment cut and sew records. Such records include certificates of origin, purchase orders, invoices, delivery notices, transportation and export records and entry documents showing the movement of the inputs into the country of final production.



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TBT-11-044, Additional Documents Used to Verify Free Trade Agreement and Legislated Trade Program Claims for Textiles and Wearing Apparel: In this notice CBP expands on information previously provided in TBT-07-019. The new TBT explains that Customs will accept documents other than an affidavit to verify Rule of Origin if they include the required elements.

TBT-12-003, Supplemental Instructions for Document Review When Verifying Trade Preference Program Claims for Textiles and Apparel: In this notice CBP provides additional guidelines regarding the submission and review of documentation to substantiate that imports meet the Rules of Origin for free trade agreements (FTAs) and trade preference programs. This TBT builds on guidance provided by CBP for origin verification documentation in previous TBTs (TBT-07-019 and TBT-11-004).



38

CAFTA Customs Cooperation Provisions & Factory Visits The CAFTA agreement includes special enforcement language with respect to textile and apparel products. The Customs Cooperation provisions grant U.S. Customs the authority to conduct production verification visits to factories in any of the CAFTA countries. During a factory visit, Customs officials may also seek to review the documents listed above in order to verify the validity of CAFTA preference claims. With the implementation of CAFTA cumulation benefits, and the implementation of the U.S.-Mexico Customs Cooperation Agreement, U.S. Customs also has the authority to conduct such factory visits to Mexican factories which supply the inputs for duty-free claims for woven garments using CAFTA’s cumulation benefits.



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Appendix A

Garments Eligible for Costa Rica Wool TPL (A) HTS No. Description

Category 433, Men’s and Boys’ Suit-type Wool Coats

6203.23.00.15 M/B Not Knit Synthetic Fiber Suit-type Jackets / Blazers, pt. Ensemble, >= 36% Wool

6203.29.10.15 M/ B Not Knit Wool / Fine Animal Hair Suit-type Jackets, Wool Yarns diam <=18.5 microns

6203.29.15.15 M/ B Not Knit Wool / Fine Animal Hair Suit-type Jackets, Wool Yarns, Other, ensemble

6203.31.50.20 M / B Not Knit Wool Suit-type Jackets of Wool Yarn dia <=18.5 microns, Other

6203.31.90.20 M / B Not Knit Wool Suits, Wool Yarn dia <=18.5 microns, in note 3(a), Other

6203.33.10.40 Men's Not Knit Synthetic Fiber Suit-type Jackets and Blazers, >= 36% Wool, Other

6203.33.10.60 Boys' Not Knit Synthetic Fiber Suit-type Jackets and Blazers, >= 36% Wool, Other

6203.39.10.20 Men's or Boys' Not Knit Artificial Fiber Suit-type Jackets / Blazers, >= 36% Wool, Other

6203.39.90.20 M / B Not Knit Other Textile Fiber Suit-type Jackets / Blazers, S.T. Wool Restraint

Category 435, Women’s and Girls’ Wool Coats, Suit-type Jackets Only

6204.31.20.10 Women's Not Knit Other Wool Suit-type Jackets and Blazers

6204.31.20.20 Girls' Not Knit Other Wool Suit-type Jackets and Blazers

6204.33.40.10 Women's Not Knit Synthetic Fiber Suit-type Jackets and Blazers, >= 36% Wool

6204.33.40.20 Girls' Not Knit Synthetic Fiber Suit-type Jackets and Blazers, >= 36% Wool

6204.39.20.10 Women's Not Knit Artificial Fiber Suit-type Jackets and Blazers, >= 36% Wool

6204.39.20.20 Girls' Not Knit Artificial Fiber Suit-type Jackets and Blazers, >= 36% Wool

6204.39.80.20 W/G Not Knit Other Textile Fiber Suit-type Jackets / Blazers, S.T. Wool Restraint

Category 442, Wool Skirts

6204.21.00.30 Women's or Girls' Not Knit Wool Skirts and Divided Skirts, part of Ensemble

6204.23.00.10 W / G Not Knit Synthetic Fiber Skirts / Divided Skirts, pt. Ensemble, >= 36% Wool

6204.29.40.24 Women's / Girls' Not Knit Oth Tex Fiber Skirts / Divided Skirts, pt. Ens, S.T. Wool Restraint

6204.51.00.10 Women's Not Knit Wool Skirts and Divided Skirts

6204.51.00.20 Girls' Not Knit Wool Skirts and Divided Skirts

6204.53.20.10 Women's Not Knit Synthetic Fiber Skirts and Divided Skirts, >= 36% Wool

6204.53.20.20 Girls' Not Knit Synthetic Fiber Skirts and Divided Skirts, >= 36% Wool

6204.59.20.10 Women's Not Knit Artificial Fiber Skirts and Divided Skirts, >= 36% Wool

6204.59.20.20 Girls' Not Knit Artificial Fiber Skirts and Divided Skirts, >= 36% Wool

6204.59.40.20 Women's / Girls' Not Knit Other Textile Fiber Skirts / Divided Skirts, S.T. Wool Restraint

Category 443, Men’s and Boys’ Wool Suits

6203.11.15.00 Men's / Boys' Not Knit Wool / F.A.H. Suits>= 30% Silk, Wstd Wool Fab dia <=18.5 microns

6203.11.30.00 Men's or Boys' Not Knit Wool / F.A.H. Suits, >= 30% Silk / Silk , Other

6203.11.60.00 M / B Not Knit Wool / F.A.H. Suits,Worsted Wool Fabric, Wl Yarn dia <=18.5 microns

6203.11.90.00 Men's or Boys' Not Knit Wool / F.A.H. Suits,

6203.12.10.00 Men's or Boys' Not Knit Synthetic Fiber Suits, >= 36% Wool

6203.19.20.00 Men's or Boys' Not Knit Artificial Fiber Suits, >= 36% Wool

6203.19.90.40 Men's or Boys' Not Knit Other Textile Fiber Suits, S.T. Wool Restraint

6203.29.10.10 Men's / Boys' Not Knit Wool / F.A.H Suits, Wool Yarn dia <=18.5 microns, pt. Ensemble

6203.31.50.10 M/ B Not Knit Wool Suit-type Jkts / Blazers, Wl Yn dia <= 18.5 micr, suits in note 3(a)

http://www.ids-quota.com/oasis/corr_single.asp?hts=6203.29.10.15




































40

Garments Eligible for Costa Rica Wool TPL (A) HTS No. Description

6203.31.90.10 M / B Not Knit Wl Suit-type Jackets, Wool Yrn dia <= 18.5 micr, Oth, suits in note 3(a), Oth

6203.33.10.30 Men's Not Knit Synthetic Fiber Suit-type Jackets and Blazers, >= 36% Wool, see Note 3(a)

6203.33.10.50 Boys' Not Knit Synthetic Fiber Suit-type Jackets and Blazers, >= 36% Wool, see Note 3(a)

6203.39.10.10 M/ B Not Knit Artificial Fiber Suit-type Jackets / Blazers, >= 36% Wool, see Note 3(a)

Category 444, Women’s and Girls’ Wool Suits

6204.11.00.00 Women's or Girls' Not Knit Wool Suits

6204.13.10.00 Women's or Girls' Not Knit Synthetic Fiber Suits, >=36% Wool

6204.19.10.00 Women's or Girls' Not Knit Artificial Fiber Suits, >=36% Wool

6204.19.80.50 Women's or Girls' Not Knit Other Textile Fiber Suits, S.T. Wool Restraint

Category 447, Men’s and Boy’s Wool Trousers, Shorts, etc.

6203.23.00.20 M / B Not Knit Synth Fiber Trousers, Breeches, Shorts, pt. Ensemble, >=36% Wool

6203.29.10.20 M / B Not Knit Wool / F.A.H Trousers, Wool Yarns dia <=18.5 microns, pt ensemble

6203.29.15.20 Men's or Boys' Not Knit Wool / F.A.H, Trousers, Breeches and Shorts, Other, pt ensemble

6203.41.05.10 Men's Not Knit Wool Trousers & Breeches, containing elastomeric fiber, Water Resistant

6203.41.05.20 Boys' Not Knit Wool Trousers & Breeches, containing elastomeric fiber, Water Resistant

6203.41.12.10 Men’s Not Knit Trousers / Shorts, Worsted Wool Fabric, avg. fiber dia <=18.5 micron

6203.41.12.20 Boys' Not Knit Trousers / Shorts, Worsted Wool Fabric, avg. fiber dia <=18.5 micron

6203.41.18.10 Men's Not Knit Trousers & Breeches, Wool / F.A.H., Other

6203.41.18.20 Boys' Not Knit Trousers & Breeches, Wool / F.A.H., Other

6203.41.18.30 Men's or Boys' Not Knit Shorts, Wool / F.A.H., Other

6203.43.30.10 Men's Not Knit Synthetic Fiber Trousers & Breeches, >= 36% Wool

6203.43.30.20 Boys' Not Knit Synthetic Fiber Trousers & Breeches, >= 36% Wool

6203.43.30.30 Men's or Boys' Not Knit Synthetic Fiber Shorts, >=36% Wool

6203.49.20.05 Men's or Boys' Not Knit Artificial Fiber Trousers, Breeches, & Shorts, >= 36% Wool

6203.49.80.25 Men's or Boys' Not Knit Other Textile Fiber Trousers & Breeches, S.T. Wool Restraint

Category 448, Women’s and Girls’ Wool Trousers, Shorts, etc.

6204.21.00.40 Women's or Girls' Not Knit Wool Trousers, Breeches, & Shorts, part of Ensemble

6204.23.00.15 Women's / Girls' Not Knit Synth Trousers, Breeches, Shorts, pt. Ensemble, >=36% Wool

6204.29.40.36 W / G Not Knit Oth Fiber Trousers / Breeches / Shorts pt. Ens, S.T. Wool Restraint

6204.61.10.10 Women's Not Knit Wool Trousers / Breeches, con elastomeric yarns, Water Resistant

6204.61.10.20 Girls' Not Knit Wool Trousers & Breeches, containing elastomeric yarns, Water Resistant

6204.61.90.10 Women's Not Knit Wool Trousers & Breeches

6204.61.90.20 Girls' Not Knit Wool Trousers & Breeches

6204.61.90.30 Women's or Girls' Not Knit Wool Shorts

6204.63.25.10 Women's Not Knit Synthetic Fiber Trousers, Breeches, & Shorts, >= 36% Wool

6204.63.25.20 Girls' Not Knit Synthetic Fiber Trousers, Breeches, & Shorts, >= 36% Wool

6204.69.20.10 Women's Not Knit Artificial Fiber Trousers & Breeches, >= 36% Wool

6204.69.20.20 Girls' Not Knit Artificial Fiber Trousers & Breeches, >= 36% Wool

6204.69.20.30 Women's or Girls' Not Knit Artificial Fiber Shorts, >=36% Wool

6204.69.60.20 Women's / Girls' Not Knit Silk Blend Trousers / Breeches / Shorts, S.T. Wool Restraint

6204.69.90.20 W/G Not Knit Non-Cotton Veg Fiber Trousers, Breeches, & Shorts, S.T. Wool Restraint









































41

Appendix B

Garments Eligible for Costa Rica Wool TPL ( C) HTS No. Description

Category 433, Men’s and Boys’ Suit-type Wool Coats

6203.29.15.15 M/ B Not Knit Wool / Fine Animal Hair Suit-type Jackets, Wool Yarns, Other, ensemble

6203.31.90.20 M / B Not Knit Wool Suits, Wool Yarn dia <=18.5 microns, in note 3(a), Other

Category 435, Women’s and Girls’ Wool Coats, Suit-type Jackets Only

6204.31.10.10 Women's Not Knit Wool Suit-type Jackets and Blazers, >= 30% Silk

6204.31.10.20 Girls' Not Knit Wool Suit-type Jackets and Blazers, >= 30% Silk

6204.31.20.10 Women's Not Knit Other Wool Suit-type Jackets and Blazers

6204.31.20.20 Girls' Not Knit Other Wool Suit-type Jackets and Blazers

Category 442, Wool Skirts

6204.21.00.30 Women's or Girls' Not Knit Wool Skirts and Divided Skirts, part of Ensemble

6204.51.00.10 Women's Not Knit Wool Skirts and Divided Skirts

6204.51.00.20 Girls' Not Knit Wool Skirts and Divided Skirts

Category 443, Men’s and Boys’ Wool Suits

6203.11.30.00 Men's or Boys' Not Knit Wool / F.A.H. Suits, >= 30% Silk / Silk , Other

6203.11.90.00 Men's or Boys' Not Knit Wool / F.A.H. Suits,

Category 444, Women’s and Girls’ Wool Suits

6204.11.00.00 Women's or Girls' Not Knit Wool Suits

Category 447, Men’s and Boy’s Wool Trousers, Shorts, etc.

6203.29.15.20 Men's or Boys' Not Knit Wool / F.A.H, Trousers, Breeches and Shorts, Other, pt ensemble

6203.41.05.10 Men's Not Knit Wool Trousers & Breeches, containing elastomeric fiber, Water Resistant

6203.41.05.20 Boys' Not Knit Wool Trousers & Breeches, containing elastomeric fiber, Water Resistant

6203.41.18.10 Men's Not Knit Trousers & Breeches, Wool / F.A.H., Other

6203.41.18.20 Boys' Not Knit Trousers & Breeches, Wool / F.A.H., Other

6203.41.18.30 Men's or Boys' Not Knit Shorts, Wool / F.A.H., Other

Category 448, Women’s and Girls’ Wool Trousers, Shorts, etc.

6204.21.00.40 Women's or Girls' Not Knit Wool Trousers, Breeches, & Shorts, part of Ensemble

6204.61.10.10 Women's Not Knit Wool Trousers / Breeches, con elastomeric yarns, Water Resistant

6204.61.10.20 Girls' Not Knit Wool Trousers & Breeches, containing elastomeric yarns, Water Resistant

6204.61.90.10 Women's Not Knit Wool Trousers & Breeches

6204.61.90.20 Girls' Not Knit Wool Trousers & Breeches

6204.61.90.30 Women's or Girls' Not Knit Wool Shorts

Category 459, Other Wool Apparel

6211.39.05.40 Men’s or Boy’s Not Knit Wool Vests

6211.41.00.50 Women’s or Girls’ Not Knit Wool Vests



























42

Appendix C

CAFTA Single Transformation Garments *

HTS No. Cat Description MFN Duty

Brassieres

6212.10.30.00 749 Brassieres with Lace, Net or Embroidery Containing at least 70% Silk 4.8%

6212.10.50.10 349 Cotton Bras, containing lace or net or embroidery, whether or not knit 16.9%

6212.10.50.20 649 MMF Bras, containing lace or net or embroidery, whether or not knit 16.9%

6212.10.50.30 859 Other MFA Fiber Bras, containing lace/net/embroidery, whether or not knit 16.9%

6212.10.70.00 749 Brassieres Containing at least 70 Percent Silk 2.7%

6212.10.90.10 349 Cotton Bras, not containing lace or net or embroidery, whether or not knit 16.9%

6212.10.90.20 649 MMF Bras, not containing lace or net or embroidery, whether or not knit 16.9%

6212.10.90.40 859 Other MFA Fiber Bras, without lace/net/embroidery, whether or not knit 16.9%

Woven Boxer Shorts

6207.11.00.00 352 Men's or Boys' Not Knit Cotton Underpants and Briefs 6.1%

6207.19.90.10 652 Men's or Boys' Not Knit Man-made Fiber Underpants and Briefs 10.5%

6207.19.90.30 852 Men's or Boys' Not Knit Other MFA Fiber Underpants and Briefs 10.5%

6208.91.30.10 352 Women's Not Knit Cotton Singlets, Briefs, Panties, & Negligees, etc. 11.2%

6208.91.30.20 352 Girls' Not Knit Cotton Singlets, Briefs, Panties, & Negligees, etc. 11.2%

6208.92.00.30 652 Women's Not Knit MMF Singlets, Briefs, Panties, & Negligees, etc. 16%

6208.92.00.40 652 Girls' Not Knit Man-made Fiber Singlets, Briefs, Panties, & Negligees, etc. 16%

Woven Pajamas

6207.21.00.10 351 Men's Not Knit Cotton Nightshirts and Pajamas, Yarn-dyed 8.9%

6207.21.00.20 351 Boys' Not Knit Cotton Nightshirts and Pajamas, Yarn-dyed 8.9%

6207.21.00.30 351 Men's Not Knit Cotton Nightshirts and Pajamas, not Yarn-dyed 8.9%

6207.21.00.40 351 Boys' Not Knit Cotton Nightshirts and Pajamas, not Yarn-dyed 8.9%

6207.22.00.00 651 Men's or Boys' Not Knit Man-made Fiber Nightshirts and Pajamas 16%

6207.91.30.10 351 Men's or Boys' Not Knit Cotton Other Sleepwear 6.1%

6207.99.85.10 651 Men's or Boys' Not Knit Man-made Fiber Other Sleepwear 10.5%

6208.21.00.10 351 Women's or Girls' Not Knit Cotton Nightdresses and Pajamas, Yarn-dyed 8.9%

6208.21.00.20 351 Women's Not Knit Cotton Nightdresses and Pajamas, not Yarn-dyed 8.9%

6208.21.00.30 351 Girls' Not Knit Cotton Nightdresses and Pajamas, not Yarn-dyed 8.9%

6208.22.00.00 651 Women's or Girls' Not Knit Man-made Fiber Nightdresses and Pajamas 16%

6208.91.30.10 352 Women's Not Knit Cotton Singlets, Briefs, Panties, & Negligees, etc.*** 11.2%

6208.91.30.20 352 Girls' Not Knit Cotton Singlets, Briefs, Panties, & Negligees, etc. *** 11.2%

6208.92.00.10 650 Women's Not Knit Man-made Fiber Bathrobes, Dressing Gowns, etc. *** 16%

6208.92.00.20 650 Girls' Not Knit Man-made Fiber Bathrobes, Dressing Gowns, etc. *** 16%

6208.92.00.30 652 Women's Not Knit Man-made Fiber Singlets, Briefs, Panties, & Negligees, etc. *** 16%

6208.92.00.40 652 Girls' Not Knit Man-made Fiber Singlets, Briefs, Panties, & Negligees, etc. *** 16%

6208.99.20.10 459 Women's or Girls' Not Knit Wool Bathrobes, Dressing Gowns, etc. *** 8.50%

6208.99.20.20 459 Women's or Girls' Not Knit Wool Singlets, Briefs, Panties, & Negligees, etc. *** 8.50%

*** Effective October 13, 2012 as part of the CAFTA “fixes”

http://www.ids-quota.com/index.php?article_id=116&hts=6208.91.30.10



43

Girls’ Woven Dresses

6204.42.30.40 336 Girls' Not Knit Other Cotton Dresses, Yarn-dyed 8.4%

6204.42.30.60 336 Girls' Not Knit Other Cotton Dresses, Other 8.4%

6204.43.40.20 636 Girls' Not Knit Other Synthetic Fiber Dresses, Yarn-dyed 16%

6204.43.40.40 636 Girls' Not Knit Other Synthetic Fiber Dresses, not Yarn-dyed 16%

6204.44.40.20 636 Girls' Not Knit Other Artificial Fiber Dresses 16%

Babywear

6209.20.10.00 239 Baby Wear Not Knit Cotton Dresses 11.8%

Cotton Coats, Women’s and Girls’

6102.20.00.10 335 Women’s Knit Cotton Overcoats / Anoraks / Windbreakers 15.9%

6102.20.00.20 335 Girls’ Knit Cotton Overcoats, Anoraks, Windbreakers 15.9%

6102.90.90.05 335 W/G Knit Oth. Tex. Fib. Overcoats/Anoraks/Windbreakers S.T.Cotton Res. 5.7%

6104.19.60.10* 335 Women’s or Girls’ Knit Cotton Jackets, part of a Suit 9.4%

6104.19.80.10 335 W/G Knit Other Textile Fiber Jackets, part of Suit, Subject to Cot. Restraint 5.6%

6104.22.00.10 335 W/G Knit Cotton Overcoats/Jackets/Blazers, part of Ensemble Sep

6104.29.20.10 335 W/G Knit Other Tex. Fiber Coats/Jackets, part of Ensemble, S.T. Cot. Res. Sep

6104.32.00.00 335 Women’s/Girls’ Knit Cotton Suit-type Jackets / Blazers 14.9%

6104.39.20.10 335 W/G Knit Other Textile Fiber Suit-type Jackets/Blazers, S. T. Cot. Restraint Free

6112.11.00.20 335 Women’s or Girls’ Knit Cotton Coats and Jackets, part of a Track-suit 14.9%

6113.00.90.20 335 Women’s or Girls’ Knit Cotton Coats and Jackets, impregnated fabric 7.1%

6117.90.90.40 335 Knit Cot. Other Made-up Clothing, Coats/Jackets parts; unassembled 14.6%

6202.12.20.10 335 Women’s Not Knit Cotton Overcoats, Carcoats, Capes, etc, Raincoats 8.9%

6202.12.20.20 335 Girls’ Not Knit Overcoats, Carcoats, Capes, etc, Raincoats 8.9%

6202.12.20.25 335 Women’s Not Knit Cotton Overcoats, Carcoats, Capes, etc, Corduroy 8.9%

6202.12.20.35 335 Girls’ Not Knit Cotton Overcoats, Carcoats, Capes, etc, Corduroy 8.9%

6202.12.20.50 335 Women’s Not Knit Cotton Overcoats, Carcoats, Capes, etc, Other 8.9%

6202.12.20.60 335 Girls’ Not Knit Cotton Overcoats, Carcoats, Capes, etc, Other 8.9%

6202.19.90.10 335 W/G Not Knit Oth. Tex. Fiber Overcoats/Carcoats/Capes/etc, S. T. Cot. Res. 2.8%

6202.92.15.00 335 W/G Not Knit Cotton Anoraks/Windbreakers, Water Resist., not Down-filled 6.2%

6202.92.20.10 335 W/G Not Knit Cot. Padded, Sleeveless, Jackets, w/ attachments for sleeves 8.9%

6202.92.20.26 335 Women’s Not Knit Cotton Anoraks, Windbreakers, etc, Corduroy 8.9%

6202.92.20.31 335 Girls’ Not Knit Cotton Anoraks, Windbreakers, etc, Corduroy 8.9%

6202.92.20.61 335 Women’s Not Knit Cotton Anoraks, Windbreakers, etc, Other 8.9%

6202.92.20.71 335 Girls’ Not Knit Cotton Anoraks, Windbreakers, Other 8.9%

6202.99.90.11 335 W/G Not Knit Oth. Tex. Fiber Anoraks/Windbrkrs/etc, S. T. Cot. Restraint 2.8%

6204.12.00.10 335 Women’s or Girls’ Not Knit Cotton Jackets, part of Suit 14.9%

6204.19.80.10 335 W/G Not Knit Other Tex. Fiber Jackets, part of Suit, Subject to Cot. Restraint 6.5%

6204.22.30.10 335 W/G Not Knit Cotton Coats/Jackets/Blazers, part of Ensemble Sep

6204.29.40.10 335 W/G Not Knit Oth Tex Fib Coats/Jackets/Blazers pt of Ensmbl, Cot. Restr. Sep

6204.32.10.00 335 W/G Not Knit Cotton Suit-type Jackets/Blazers, at least 36% Flax 2.8%

6204.32.20.10 335 Women’s Not Knit Other Cotton Suit-type Jackets/Blazers, Corduroy 9.4%

6204.32.20.20 335 Girls’ Not Knit Other Cotton Suit-type Jackets and Blazers, Corduroy 9.4%



44

6204.32.20.30 335 Women’s Not Knit Other Cotton Suit-type Jackets and Blazers, Other 9.4%

6204.32.20.40 335 Girls’ Not Knit Other Cotton Suit-type Jackets and Blazers, Other 9.4%

6204.39.80.10 335 W/G Not Knit Oth Tex Fib Suit-type Jackets/Blazers, S. T. Cot. Restraint 6.3%

6210.30.90.20 335 W/G Not Knit Oth than MMF / Linen, Overcoats/Carcoats/etc, Impreg fabric 6.2%

6210.50.90.50* 335 W/G Not Knit Oth than MMF Anoraks/Coats/Jackets/etc, Impreg fabric 6.2%

6211.20.15.40 335 W/G Not Knit Cotton Anoraks/Windbreakers pt. Ski-suit, Water Resistant 7.1%

6211.20.58.10 335 W/G Not Knit Cotton Anoraks, Coats, Jackets, etc, part of a Ski-suit 28%

6211.42.00.40 335 W/G Not Knit Cotton Other than Trousers, part of a Track-suit 8.1%

6211.42.00.75 335 W/G Not Knit Cot. Jacket/Jacket-type garment excluded from Heading 6202 8.1%

6217.90.90.25 335 Not Knit Cotton Coats and Jackets, imported as parts; unassembled 14.6%

Man-made Fiber Coats, Women’s and Girls’

6202.93.45.00 635 W/G Not Knit Oth MMF Anoraks/Windbreakers, Water Res., not Down-filled 7.1%

6204.33.20.00 635 W/G Not Knit Synthetic Fiber Suit-type Jackets/Blazers, at least 36% Flax 2.8%

6204.39.80.30 635 W/G Not Knit Oth Tex. Fiber Suit-type Jackets/Blazers, S.T. MMF Restraint 6.3%

Wool Coats, Women’s and Girls’

6202.91.20.11 435 Women's Not Knit Wool Anoraks, Windbreakers, etc. 36¢/kg+16.3%

6204.39.80.20 435 W/G Not Knit Oth. Tex. Fiber Suit-type Jackets/Blazers, S.T. Wool Restraint 6.3%

6211.41.00.55 435 W/G Not Knit Wool Jackets/Jacket-type garments excluded from 6202 12%

Silk Blend & Non-Cotton Vegetable Fiber Coats, Women’s and Girls’

6204.39.80.50 835 Women's or Girls' Not Knit Other Silk Blend Suit-type Jackets and Blazers 6.3%

6204.39.80.60 835 W/G Not Knit Non-Cotton Vegetable Fiber Suit-type Jackets and Blazers 6.3%

Man-made Fiber Suits, Women’s and Girls’

6104.13.20.00 644 Women’s or Girls’ Knit Other Synthetic Fiber Suits 14.9%

6104.19.15.00 644 Women’s or Girls’ Knit Other Artificial Fiber Suits Free

6104.19.80.60 644 Women’s or Girls’ Knit Other Textile Fiber Suits, S. T. MMF Restraint 5.6%

6204.13.20.10 644 Women’s Not Knit Other Synthetic Fiber Suits 35.3¢/kg+25.9%

6204.13.20.20 644 Girls’ Not Knit Other Synthetic Fiber Suits 35.3¢/kg+25.9%

Man-made Fiber Suits, Women’s and Girls’, Continued:

6204.19.20.00 644 Women's or Girls' Not Knit Other Artificial Fiber Suits 35.3¢/kg+25.9%

6204.19.80.60 644 Women's or Girls' Not Knit Other Textile Fiber Suits, S.T. MMF Restraint 6.5%

Wool Suit-type Jackets, Men’s and Boys’

6203.39.90.20 433 M/B Not Knit Other Textile Fiber Suit-type Jackets/Blazers, S.T. Wool Res. 6.5%

Woven Yarn-dyed Dress Shirts, Men’s

6205.20.20.16 340 Men's Not Knit Cotton Dress Shirts, Yarn-dyed 19.7%

6205.30.20.10 640 Men's Not Knit Other Man-made Fiber Dress Shirts, Yarn-dyed 29.1¢/kg+25.9%

* Also includes Certain Ensemble Components classified under HTS Nos. 6204.23.00 and 6204.29 which are not listed.

* Presidential Proclamation 8213 lists HTS number 6104.12.00, which is not a valid 2008 HTS number. The correct

number is 6104.19.60.10. This fix will require a technical correction.

** Presidential Proclamation 8213 lists “6210.50.90 (for anoraks).” However, the language of the pocketing letters

exchanged between the CAFTA governments covers only 6210.50.90.50.



45

Appendix D Reduced Duty Rates for Select Non-CAFTA Woven Garments

HTS No. Cat Ch. 98 No. Description MFN Duty

Eligible for Reduction of 0.5% Off MFN Rate

6202.11.00.10 435 9822.05.30 Women’s Not Knit Wool Overcoats, Carcoats,

Capes

41¢kg+16.3%

6202.11.00.20 435 9822.05.30 Girls’ Not Knit Wool Overcoats, Carcoats, Capes,

etc.

41¢kg+16.3%

6203.31.90.10 443 9822.05.35 Men's / Boys' Not Knit Wl Suit-type Jkts / Blazrs, Wl

Yrn dia <= 18.5 micr, Oth, suits in note 3(a), Oth

17.5%

6203.31.90.20 433 9822.05.35 Men's / Boys' Not Knit Wool Suits, Wool Yarn dia

<=18.5 microns, in note 3(a), Other

17.5%

6203.33.10.30 443 9822.05.40 Men's Not Knit Synthetic Fiber Suit-type Jackets

and Blazers, >= 36% Wool, see Note 3(a)

22%

6203.33.10.40 433 9822.05.40 Men's Not Knit Synthetic Fiber Suit-type Jackets

and Blazers, >= 36% Wool, Other

22%

6203.33.10.50 443 9822.05.40 Boys' Not Knit Synthetic Fiber Suit-type Jackets

and Blazers, >= 36% Wool, see Note 3(a)

22%

6203.33.10.60 433 9822.05.40 Boys' Not Knit Synthetic Fiber Suit-type Jackets

and Blazers, >= 36% Wool, Other

22%

6203.41.18.10 447 9822.05.45 Men's Not Knit Trousers & Breeches, Wool /

F.A.H., Other

41.9¢/kg+16.3%

6203.41.18.20 447 9822.05.45 Boys' Not Knit Trousers & Breeches, Wool / F.A.H.,

Other

41.9¢/kg+16.3%

6203.41.18.30 447 9822.05.45 Men's or Boys' Not Knit Shorts, Wool / F.A.H.,

Other

41.9¢/kg+16.3%

6203.42.40.03 347 9822.05.50 Men's and Boys' Not Knit Cotton Trousers and

Shorts Containing Compact Yarns

16.6%

6203.42.40.06 347 9822.05.50 Men's Not Knit Cotton Trousers & Breeches,

Corduroy

16.6%

6203.42.40.11 347 9822.05.50 Men's Not Knit Cotton Trousers & Breeches, Blue

Denim

16.6%

6203.42.40.16 347 9822.05.50 Men's Not Knit Cotton Trousers & Breeches, Other 16.6%

6203.42.40.21 237 9822.05.50 Boys' Not Knit Cotton Trousers & Breeches, part of

a Playsuit, Corduroy

16.6%

6203.42.40.26 347 9822.05.50 Boys' Not Knit Cotton Trousers & Breeches, Other,

Corduroy

16.6%


a Playsuit, Blue Denim

16.6%


Blue Denim

16.6%


a Playsuit, Other

16.6%


Other

16.6%

6203.42.40.51 347 9822.05.50 Men's Not Knit Cotton Shorts 16.6%

6203.42.40.56 237 9822.05.50 Boys' Not Knit Cotton Shorts, part of a Playsuit 16.6%

6203.42.40.61 347 9822.05.50 Boys' Not Knit Cotton Shorts, Other 16.6%

6204.62.40.03 348 9822.05.50 Women's and Girls' Not Knit Cotton Trousers and

Shorts Containing Compact Yarns

16.6%

6204.62.40.06 348 9822.05.50 Women's Not Knit Cotton Trousers & Breeches,

Corduroy

16.6%


Blue Denim

16.6%


Other

16.6%

6204.62.40.26 237 9822.05.50 Girls' Not Knit Cotton Trousers & Breeches, part of

a Playsuit, Corduroy

16.6%

6204.62.40.31 348 9822.05.50 Girls' Not Knit Cotton Trousers & Breeches, Other,

Corduroy

16.6%


a Playsuit, Blue Denim

16.6%


Blue Denim

16.6%


a Playsuit, Other

16.6%


Other

16.6%

6204.62.40.56 348 9822.05.50 Women's Not Knit Cotton Shorts 16.6%

6204.62.40.61 237 9822.05.50 Girls' Not Knit Cotton Shorts, part of a Playsuit 16.6%

6204.62.40.66 348 9822.05.50 Girls' Not Knit Cotton Shorts, Other 16.6%

6203.43.30.10 447 9822.05.55 Men's Not Knit Synthetic Fiber Trousers &

Breeches, >= 36% Wool

49.6¢/kg+19.7%

6203.43.30.20 447 9822.05.55 Boys' Not Knit Synthetic Fiber Trousers &

Breeches, >= 36% Wool

49.6¢/kg+19.7%

6203.43.30.30 447 9822.05.55 Men's or Boys' Not Knit Synthetic Fiber Shorts,

>=36% Wool

49.6¢/kg+19.7%



46

Reduced Duty Rates for Select Non-CAFTA Woven Garments

HTS No. Cat Ch. 98 No. Description MFN Duty

Eligible for Reduction of 2% Off MFN Rate

6203.12.20.20 643 9822.05.60 Boys’ Not Knit Other Synthetic Fiber Suits 27.3%

6203.43.40.10 647 9822.05.65 Men's Not Knit Other Synthetic Fiber Trousers &

Breeches

27.9%

6203.43.40.15 237 9822.05.65 Boys' Not Knit Other Synthetic Fiber Trousers &

Breeches, part of a Playsuit

27.9%

6203.43.40.20 647 9822.05.65 Boys' Not Knit Other Synthetic Fiber Trousers &

Breeches, Other

27.9%

6203.43.40.30 647 9822.05.65 Men's Not Knit Other Synthetic Fiber Shorts 27.9%

6203.43.40.35 237 9822.05.65 Boys' Not Knit Other Synthetic Fiber Shorts, part of

a Playsuit

27.9%

6203.43.40.40 647 9822.05.65 Boys' Not Knit Other Synthetic Fiber Shorts, Other 27.9%

6204.63.35.10 648 9822.05.70 Women's Not Knit Other Synthetic Fiber Trousers

& Breeches

28.6%

6204.63.35.25 237 9822.05.70 Girls' Not Knit Other Synthetic Fiber Trousers &

Breeches, part of a Playsuit

28.6%

6204.63.35.30 648 9822.05.70 Girls' Not Knit Other Synthetic Fiber Trousers &

Breeches, Other

28.6%

6204.63.35.32 648 9822.05.70 Women's Not Knit Other Synthetic Fiber Shorts 28.6%

6204.63.35.35 237 9822.05.70 Girls' Not Knit Other Synthetic Fiber Shorts, part of

a Playsuit

28.6%

6204.63.35.40 648 9822.05.70 Girls' Not Knit Other Synthetic Fiber Shorts, Other 28.6%