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ATPDEA Textile Provisions. U.S. Customs & Border Protection 2003. Andean Trade Promotion and Drug Eradication Act. H.R. 3009 Public law 107-210 Signed into law on August 6, 2002 Effective on October 1, 2002 Will expire on December 31, 2006

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atpdea textile provisions

ATPDEATextile Provisions

U.S. Customs & Border Protection

2003

andean trade promotion and drug eradication act
Andean Trade Promotion and Drug Eradication Act
  • H.R. 3009
  • Public law 107-210
  • Signed into law on August 6, 2002
  • Effective on October 1, 2002
  • Will expire on December 31, 2006
    • AndeanTrade Promotionand DrugEradication Act (ATPDEA)
slide3
Colombia

Ecuador

Peru

Bolivia

ATPDEA Eligible Countries

andean trade promotion and drug eradication act atpdea
Andean Trade Promotion and Drug Eradication Act (ATPDEA)
  • Preferential treatment for certain textiles and apparel and luggage
  • Protections against transshipment

Benefits

Obligations

trade benefits for andean apparel manufacturers
Trade Benefits for Andean Apparel Manufacturers
  • Quota free
  • Duty free

Access to the

U.S. Market

u s apparel imports
U.S. Apparel Imports
  • Total apparel imports into the U.S. Amounted to $60 billion
  • Mexico exported $7.4 billion
  • Andean countries exported $847 million, slightly over 1% of all apparel imports

Category 1 of the Major Shipper’s Report for Year Ended April 2003

slide7

Applicability

Apparel articles that are imported directly into the customs territory of the United States from an ATPDEA beneficiary country shall enter the United States free of duty and free of any quantitative restrictions, limitations, or consultation levels, but only if such articles are described in subparagraph (B).

slide8

“Apparel Articles”

  • Goods classifiable in chapters 61 and 62 and headings 6501, 6502, 6503, 6504, and subheadings 6406.99.15 and 6505.90, HTSUS.

19 CFR 10.242

slide9

“Imported Directly”

19 CFR 10.243(d)

slide10

“Imported Directly”

  • The article must be imported directly from an ATPDEA country to the US
  • Three definitions of “imported directly”
slide11

“Imported Directly”

1.Direct shipment from an ATPDEA to US without passing through the territory of any non-beneficiary country

2.Shipment from an ATPDEA to US through a non-beneficiary country only if:

  • The merchandise does not enter into the commerce of any non-beneficiary country, and
  • Invoice, bills of lading, and other shipping documents show US as the final destination
slide12

“Imported Directly”

3.Shipment from an ATPDEA to US through a non-beneficiary country and the invoices and other documents do not show US as the final destination only if:

  • Goods remained under the control of the customs authority of the intermediate country
  • Goods did not enter the commerce of that intermediate country
  • The transaction that causes the goods to be imported into the US must be between the US importer and the producer or the producer’s agent
  • Goods were not subjected to operations other than loading and unloading or preservation
general rule of origin for apparel
General Rule of Origin for Apparel
  • “Yarn forward” rule
    • US/ATPDEA yarn and fabric

Made in Ecuador

slide18

“Wholly Formed” Yarns

All of the production processes took place in the US or in 1 or more ATPDEA country. This means, starting with the extrusion of filament, strip, film or sheet and including drawing to fully orient a filament or slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a yarn or plied yarn.

19 CFR 10.242

slide19

“Wholly Formed” Fabric

All of the production processes took place in a single country. This means starting with polymers, fibers, filaments, textile strips, yarns, twine, cordage, rope or strips of fabric and ending with a fabric by a weaving, knitting, needling, tufting, felting, entangling or other process.

19 CFR 10.242

slide20

“Wholly Formed” Fabric Components

All of the production processes starting with the production of wholly formed fabric and ending with a component that is ready for incorporation into an apparel article, took place in a single country.

19 CFR 10.242

knit to shape components
“Knit-to-shape Components”
  • Means components that are knitted or crocheted from a yarn directly to a specific shape containing a self-start edge. Minor cutting or trimming will not affect the determination of whether a component is “knit-to-shape.”
  • 19 CFR 10.242
assembled or sewn or otherwise assembled in one or more beneficiary countries
“Assembled or Sewn or Otherwise Assembled in One or More Beneficiary Countries”

A joining together of two or more components that occurred in one or more beneficiary countries, whether or not a prior joining operation was performed on the article or any of its components in the US

19 CFR 10.242

slide23

Printing, Dyeing and Finishing

  • Fabric or fabric components for apparel articles made from US knit or woven fabric must be printed, dyed and finished in the US. This requirement does not apply to non-woven fabric or

fabric components.

  • 19 CFR 10.243(b)
slide24

Preference Group A-Summary

  • Apparel assembled from US fabric/components
  • 9821.11.01, HTSUS
  • 19 CFR 10.243(a)(1)(i)
example 1
Example 1
  • Cotton grown in US
  • Cotton fibers spun into yarn in US
  • Cotton yarn woven into cotton twill fabric in US
  • Cotton twill fabric dyed and finished in US
  • Finished fabric shipped to Ecuador
  • Cotton twill fabric cut into components for a pair of jeans in Ecuador
  • All components assembled

in Ecuador

example 2
Example 2
  • Cotton grown in US
  • Cotton fibers spun into yarn in US
  • Cotton yarn woven into cotton twill fabric in US
  • Cotton twill fabric dyed and finished in US
  • Cotton twill fabric cut into components for a pair of jeans in US
  • Belt loops and waistband assembled in US
  • Components shipped to Ecuador
  • All components assembled in Ecuador
slide27

Preference Group B

  • Apparel article
  • Chief value llama, alpaca or vicuña fabric or components
  • Yarns wholly formed in one or more ATPDEA beneficiary countries
  • Fabrics or components wholly formed in 1 or more ATPDEA beneficiary countries
  • Assembled in 1 or more beneficiary ATPDEA countries or US, or both
  • Entered under 9821.11.04, HTSUS
chief value
“Chief Value”
  • Means that the value of those materials exceeds the value of any other single textile material in the fabric or component under consideration
  • 19 CFR 10.242
slide29

Assembled from Chief Value Llama, Alpaca or Vicuña

Apparel articles sewn or otherwise assembled from fabric, fabric components or components knit to shape, in chief value of llama, alpaca or vicuña, in an ATPDEA country from yarns wholly formed in one or more ATPDEA country (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more ATPDEA countries).

19 CFR 10.243(a)(1)(ii)

slide30

Preference Group B-Summary

  • Assembled from fabric, fabric components, or components knit-to-shape, in chief value of llama, alpaca or vicuña
  • 9821.11.04, HTSUS
  • 19 CFR 10.243(a)(1)(ii)
example 3
Example 3
  • Alpaca spun into yarn in Peru
  • Nylon spun into yarn in Colombia
  • Nylon yarn shipped to Peru
  • Alpaca and nylon yarn woven into 55% nylon/45% alpaca fabric in Peru
  • Alpaca fibers 70% of value of fabric
  • Fabric cut into components for a coat in Peru
  • All components assembled in Peru
preference group c
Preference Group C
  • NAFTA short supply
  • Entered under 9821.11.07, HTSUS
nafta short supply
“NAFTA Short Supply”
  • Apparel articles sewn or otherwise assembled in 1 or more ATPDEA beneficiary countries, or in the US, or in both, from fabrics or yarns, provided that apparel articles (except articles of subheading 6212.10, HTSUS) of those fabrics or yarns would be considered originating goods under General Note 12(t), HTSUS, if the apparel articles were imported directly from Canada or Mexico

19 CFR 10.243(a)(1)(iii)

nafta short supply34
NAFTA Short Supply
  • Silk
  • Linen
  • Cotton velveteen
  • Fine wale corduroy
  • Harris tweed
  • Certain woven fabrics made with fine animal hair
  • Certain lightweight, high thread count polyester/cotton woven fabrics
  • Certain lightweight, high thread count broadwoven fabrics used in the production of men’s or boys’ shirts (not a definitive list)
slide35

Preference Group C-Summary

  • NAFTA short supply
  • 9821.11.07, HTSUS
  • 19 CFR 10.243(a)(1)(iii)
example 4
Example 4
  • 100% linen fabric imported from Ireland
  • Fabric cut into components for women’s blouse in Bolivia
  • Components sewn to form a blouse in Bolivia
example 5
Example 5
  • 60% linen/40% cotton fabric imported from Egypt
  • Polyester pocketing material imported from China
  • Components cut in Colombia
  • Components sewn into men’s trousers in Bolivia
preference group d
Preference Group D
  • Designated short supply
  • Entered under 9821.11.10, HTSUS
designated short supply
“Designated Short Supply”
  • US president, or his designee, is authorized to add additional yarns or fabrics, that can be used without regard to their origin, if such yarns or fabrics cannot be supplied by the domestic industry in

commercial quantities

in a timely manner

  • 19 CFR 10.243(a)(1)(iv)
designated short supply40
“Designated Short Supply”
  • CITA -- committee for the implementation of textile agreements has been delegated authority
  • Http:\\www.otexa.ita.doc.gov
slide41

Preference Group D-Summary

  • Designated short supply
  • 9821.11.10, HTSUS
  • 19 CFR 10.243(a)(1)(iv)
preference group e
Preference Group E
  • Combination of groupings A - D
  • Entered under 9821.11.13, HTSUS
apparel assembled from any combination of groupings a d
Apparel Assembled From Any Combination of Groupings A-D

Apparel articles sewn or otherwise assembled in 1 or more ATPDEA beneficiary countries, or in the US, or in both, exclusively from a combination of fabrics, fabric components, knit-to-shape components or yarns described in two or more of groupings A-D

19 CFR 10.243(a)(2)

slide44

Preference Group E-Summary

  • Combination of groupings A-D
  • 9821.11.13, HTSUS
  • 19 CFR 10.243(a)(2)
example 6
Example 6
  • 100% acrylic knit to shape components knit in US from US yarn
  • 100% alpaca knit to shape components from Peru
  • Assembled in Colombia into sweater with acrylic and alpaca patchwork panels
  • Combination of groupings

A and B

preference group f
Preference Group F
  • Handloomed articles
  • Handmade articles
  • Folklore apparel or textile articles
  • Entered under 9821.11.16, HTSUS
handloomed handmade or folklore textile or apparel articles
Handloomed, Handmade, or Folklore Textile or Apparel Articles
  • Competent authority in beneficiary country must certify articles considered handloomed, handmade, or folklore
  • U.S. will consult with beneficiary country authorities to determine which articles, if any, will be treated as handloomed, handmade, or folklore
  • CITA has been delegated authority to designate eligible articles

19 CFR 10.243(a)(3)

handloomed handmade or folklore textile or apparel articles48
Handloomed, Handmade, or Folklore Textile or Apparel Articles
  • Must be handloomed fabric, handmade goods of handloomed fabric or traditional folklore articles.
  • Generally apparel, apparel accessories or decorative furnishings
  • May not include “modern” features, patterns or styles such as zippers, velcro®, etc.
  • Please provide samples and descriptions when submitting articles to CITA for designation
preference group f summary
Preference Group F -Summary
  • Handloomed, handmade or folklore articles
  • 9821.11.16
  • 19 CFR 10.243(a)(3)
preference group g
Preference Group G
  • Brassieres
  • Cut and sewn in the US, or one or more ATPDEA beneficiary countries or both
  • Subject to value requirement
  • Entered under 9821.11.19, HTSUS
brassieres
Brassieres
  • Brassieres, classifiable under subheading 6212.10 of the HTSUS, cut and sewn or otherwise assembled in the US, or one or more ATPDEA beneficiary countries, or both.

19 CFR 10.243(a)(4)

slide52
19 CFR 10.248(b) limitations on preferential treatment

(1) general. During the year that begins on October 1, 2003, & during any subsequent year, articles of a producer or entity controlling production that conform to the production standards set forth in §10.243(a)(4) will be eligible for preferential treatment only if:

19 cfr 10 248 b limitations on preferential treatment
19 CFR 10.248(b) Limitations on Preferential Treatment

(1)(i) The aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the US that were used in the production of all of those articles of that producer or that entity controlling production that are entered as articles described in §10.243(a)(4) during the immediately preceding year was at least 75% of the aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that are entered as articles described in §10.243(a)(4) during that year; or

19 cfr 10 248 b limitations on preferential treatment54
19 CFR 10.248(b) Limitations on Preferential Treatment

(1)(ii) In a case in which the 75% requirement set forth in (b)(1)(i) of this section was not met during a year & therefore those articles of that producer or entity controlling production were not eligible for preferential treatment during the following year, the aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the US that were used in the production of all those articles of that producer or that entity controlling production that conform to the production standards set forth in §10.243(a)(4) and that were entered during the immediately preceding year was at least 85% of the aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that conform to the production standards set forth in §10.243(a)(4) and that were entered during that year.

brassieres 19 cfr 10 248 a definitions of terms
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Producer
  • Entity controlling production
  • Fabrics formed in the US
  • Cost
  • Declared customs value
  • Year
  • Entered
brassieres 19 cfr 10 248 a definitions of terms56
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Producer
      • Individual
      • Corporation
      • Partnership
      • Association
      • Other Entity or Group
    • Direct, Daily Control Over Production
    • In ATPDEA Country
brassieres 19 cfr 10 248 a definitions of terms57
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Entity Controlling Production
      • Individual
      • Corporation
      • Partnership
      • Association
      • Other Entity or Group
    • Not a Producer
    • Controls Production in ATPDEA Country through Contractual Relationship or other Indirect Method
brassieres 19 cfr 10 248 a definitions of terms58
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Fabrics Formed in the U.S.
      • Weaving
      • Knitting
      • Needling
      • Tufting
      • Felting
      • Entangling
      • Other Formation Process
brassieres 19 cfr 10 248 a definitions of terms59
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Cost
      • Price of U.S.-formed fabrics when last purchased FOB port of export, or with adjustments to reach a FOB price
      • If unable to determine FOB price, or price is determined to be unreasonable, then a Computed Value equivalent for the fabrics plus costs representing freight, insurance, packing, and other costs to get it to port of export
brassieres 19 cfr 10 248 a definitions of terms60
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Cost Examples
    • U.S. formed fabric, purchased FOB Miami
      • Price paid is the “cost”
    • U.S. formed fabric, purchased on the local (ATPDEA) market
      • “Cost” is price paid, minus:
        • freight and insurance, from U.S. to ATPDEA country
        • duty paid at entry to ATPDEA country
        • mark-up
        • etc.
brassieres 19 cfr 10 248 a definitions of terms61
Brassieres-19 CFR 10.248(a)Definitions of Terms
  • Declared Customs Value
      • Cost of U.S. Formed Fabric, plus
      • Cost of All Non-U.S.-Formed Fabric Contained in Article
      • Value of Findings/Trimmings not Included
      • Each Figure Must be Verifiable
brassieres62
Brassieres
  • In first year, only requirement is that the bras be cut and sewn or otherwise assembled in the US or ATPDEA beneficiary countries or both (no US fabric content required for duty free treatment)
  • Beginning Oct. 1, 2003, requirement that in the preceding year, the aggregate cost of US fabrics used in the production of a producer’s or entity’s bras was at least 75% of aggregate declared customs value of the fabric in all bras of that producer or entity that were entered and eligible under this provision in preceding 1-year period
  • If fail to meet requirement, 85% US fabric requirement is imposed

19 CFR 10.243(a)(4); 19 CFR 10.248(b)

declaration of compliance
Declaration of Compliance

1. Year Commencing October 1, Ending September 30 of Calendar Year in Which Applicable % Standard was Met

2. Legal Name and Address of the Preparer, Including Preparer’s I.R. Number, if Applicable

3. Legal Name(s) and Address(es) of ATPDEA Producer, if not Already Identified in Block 2

4.,5. Related to Goods Entered During Year in Block 1

6. Declare Standard: 75% or 85%

7. Signature of Authorized, Knowledgeable Person

slide65

Preference Group G-Summary

  • Brassieres assembled in the US and/or one or more ATPDEA beneficiary countries
  • 9821.11.19, HTSUS
  • 19 CFR 10.243(a)(4)
example 7
Example 7
  • A Producer in an ATPDEA Country:
    • In Single Calendar Year, Sends Entire Production of Goods meeting 10.243(a)(4) to the U.S.
    • Consists of Two Shipments
      • Shipment 1 does not Meet 75% Standard
      • Shipment 2 Exceeds 85% Standard
    • Shipment 1 is Entered on March 1
    • Shipment 2 is Entered into a Warehouse and not Withdrawn for Consumption until November 1
  • For that Calendar Year, Can the Producer Complete a Valid Declaration of Compliance?
preference group h
Preference Group H
  • Textile luggage
  • Assembled in ATPDEA beneficiary country
  • Fabric/components wholly formed in US
  • Yarn wholly formed in US
  • Entered under 9802.00.8048 and 9821.11.22, HTSUS
slide68

Cut in One or More ATPDEA Countries

All fabric components used in the assembly of the article were cut from fabric in one or more ATPDEA countries, or were cut from fabric in the United States and used in a partial assembly of the article in one or more ATPDEA beneficiary countries, or both.

19 CFR 10.242

luggage 19 cfr 10 242
Luggage-19 CFR 10.242

Travel goods, such as trunks, hand trunks, lockers, valises, satchels, suitcases, wardrobe cases, overnight bags, pullman bags, gladstone bags, traveling bags, knapsacks, kitbags, haversacks, duffel bags, and like articles designed to contain clothing or other personal effects during travel; and

Briefcases, portfolios, school bags, photographic equipment bags, golf bags, camera cases, binocular cases, gun cases, occupational luggage cases (physicians’ cases, sample cases, etc.), And like containers and cases designed to be carried with the person.

luggage 19 cfr 10 242 continued
Luggage-19 CFR 10.242(Continued)

Luggage does not include the following:

“Handbags” which include pocketbooks, purses,

shoulder bags, clutch bags, and all similar articles, by

whatever name known, customarily carried by women or

girls; or,

“Flat goods” which includes small flatware designed to

be carried on the person, such as banknote cases, bill

cases, billfolds, bill purses, bill rolls, card cases, change

cases, cigarette cases, coin purses, coin holders,

compacts, currency cases, key cases, letter cases, license

cases, money cases, pass cases, passport cases, powder

cases, spectacle cases, stamp cases, vanity cases,

tobacco pouches and similar articles.

textile luggage
Textile Luggage
  • Textile luggage satisfying the criteria for eligibility will not be precluded from receiving preferential treatment because it incorporates foreign-made non-textile components. Example: leather handle
  • However, foreign-origin findings and trimmings are subject to the 25% cost limitation.

Example: zipper

slide72

Preference Group H-Summary

  • Textile luggage assembled in ATPDEA beneficiary country from US fabric and yarn
  • 9802.00.8048 (US fabric cut in US) and 9821.11.22 (US fabric cut in 1 or more ATPDEA beneficiary country)
  • 19 CFR 10.243(a)(5)&(6)
preference group i
Preference Group I
  • Apparel sewn or otherwise assembled in 1 or more ATPDEA beneficiary countries from ATPDEA formed fabrics or components
  • US or ATPDEA wholly

Formed yarn

  • Whether or not in

Combination with

Groupings A-D

  • Subject to tariff preference level (TPL)
  • Entered under 9821.11.25, HTSUS
slide74

Assembled from Regional Fabric

Apparel articles assembled in 1 or more ATPDEA beneficiary countries from ATPDEA fabrics or components, from yarns wholly formed in the US or 1 or more beneficiary countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in 1 or more beneficiary countries), whether or not the apparel articles are also made from any of the fabrics or components described in groupings A - D 19 CFR 10.243(a)(7)

slide75

Preference Group I-Summary

  • Apparel assembled in ATPDEA beneficiary countries from ATPDEA fabric/components from US/ATPDEA yarn, whether or not in combination with groupings A-D
  • 9821.11.25, HTSUS
  • 19 CFR 10.243(a)(7)
example 8
Example 8
  • 100% linen fabric imported from Ireland
  • 100% cotton voile fabric woven in Colombia from yarn wholly formed in Colombia
  • Fabric cut into components in Peru
  • Components assembled in Ecuador to form linen blouse with sheer cotton voile sleeves
special rules
Special Rules
  • Findings & trimmings
  • Certain interlinings
  • De minimis
  • Nylon filament yarn
findings and trimmings
Findings and Trimmings
  • General rule
    • Apparel article eligible for preferential treatment under ATPDEA
    • Findings or trimmings of foreign origin can be included
    • IF the value of such findings and trimmings does not exceed 25% of the cost of the components of the assembled article.

$ $ $ $

findings and trimmings80
Findings and Trimmings
  • General rule
    • An article otherwise eligible for preferential treatment under this section will not be ineligible for such treatment because the article contains findings or trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25% of the cost of the components of the assembled article.

19 CFR 10.243(c)(1)(i)(a)

findings and trimmings81
Findings and Trimmings
  • Findings - sewing essentials used in garments
  • Trimmings- decorative or ornamental parts
findings and trimmings82
Findings and Trimmings
  • Examples:
    • Sewing thread
    • Hooks and eyes
    • Snaps
    • Buttons
    • “Bow buds”
    • Decorative lace trim
    • Zippers, zipper tapes
    • Labels
    • Elastic strips
qualifying findings and trimmings
Qualifying Findings and Trimmings
  • Reinforcing tape --analogous to zipper tape, a necessity in constructing a garment
  • Embroidery thread, button tacks, and bias tape -- analogous to sewing thread, buttons and zipper tape
  • “Tommy Hilfiger” patch sewn onto jeans -- is an example of a small textile ornamentation
  • “Pooh” patch-- symbolized brand

And adds ornamentation

not considered findings and trimmings
Not Considered Findings and Trimmings
  • Velveteen upper collar of women’s jacket
  • Shoulder pads and sleeve headers for men’s suit-type jacket
  • Textile drawstring cord for jackets
  • Chest pieces, suede yoke and elbow patches for men’s jackets -- yoke and elbow patches comprised a relatively large surface area and served more than mere decorative purpose unlike lace trim
certain interlinings
Certain Interlinings
  • General rule
    • Apparel article eligible for preferential treatment under APTDEA
    • Certain interlinings of foreign origin can be included
    • IF the value of such interlinings (And any foreign findings and trimmings) does not exceed 25% of the cost of the components of the assembled article

$ $ $ $

certain interlinings86
Certain Interlinings
  • General rule
    • An article otherwise eligible for preferential treatment under this section will not be ineligible for such treatment because the article contains certain interlinings of foreign origin, if the value of those interlinings (And any foreign findings and trimmings) does not exceed 25% of the cost of the components of the assembled article

19 CFR 10.243(c)(1)(i)(b)

interlining
“Interlining”

A fabric placed between the lining and the outer fabric of a garment as a stiffening, to give the garment shape or as padding, for extra warmth. Many different fabrics of various fibers are used, e.G., Canvas, crinoline, haircloth, flannel, padding, quilted fabric, batting webs and non-woven fabrics.

Fairchild’s dictionary of textiles

certain interlinings88
Certain Interlinings
  • Eligible interlinings
    • Type
      • Chest type plate
      • Hymo piece
      • Sleeve header
    • Construction
      • Of woven or weft-inserted warp knit construction
      • Of coarse animal hair or man-made filaments
de minimis rule
De Minimis Rule
  • An article otherwise eligible for preferential treatment under this section will not be ineligible for such treatment because the article contains yarns not wholly formed in the US or one or more ATPDEA beneficiary countries if the total weight of all those yarns is not more than 7% of the total weight of the article.

19 CFR 10.243(c)(1)(i)(d)

de minimis rule90
De Minimis Rule
  • “Very small matter”
  • Small percentage of total weight of the good can be of foreign yarns
  • 7% maximum limit
de minimis rule example
De Minimis Rule - Example
  • Brown wool yarn formed in US
  • White wool yarn formed in India
  • Wool fabric woven in Peru from brown yarn and small amount of white yarn (a decorative yarn--only comprises 5% of weight of fabric)
  • Wool fabric is cut and sewn into a jacket in Peru
de minimus rule example
De Minimus Rule - Example
  • Rayon fabric formed in US from US yarns
  • Rayon fabric cut into front and back panels for women’s shirt to be assembled in Colombia
  • Sheer polyester fabric formed in China
  • Sheer polyester fabric cut into cap sleeves in Colombia (the cap sleeves are 1 % by weight of the total weight of the textiles in the shirt.
  • Shirt wholly assembled in Colombia
special rule for certain nylon filament yarns
Special Rule for Certain Nylon Filament Yarns
  • Apparel provided for in provisions requiring use of US formed fabric or components will not be ineligible for preferential treatment because the apparel contains specified nylon filament yarn (other than elastomeric yarn) that entered the U.S. Duty free from Israel (under U.S.-Israel free trade agreement), or Canada or Mexico (under NAFTA)
  • 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5403.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00

Or 5402.61.00, HTSUS 19 CFR 10.243(c)(2)

other than elastomeric yarn
(Other Than Elastomeric Yarn)
  • Elastomeric yarn = filament yarn, including monofilament, of synthetic textile material, other than textured yarn, which does not break on being extended to three times its original length and which returns, after being extended to twice its original length, within a period of five minutes, to a length not greater than one and a half times its original length. Subheading note 1(a), section XI
  • Covers all forms of elastomeric yarn
  • Amount of elastomeric content within a yarn does not matter
atpdea question 1
ATPDEA Question 1

A knit shirt is assembled in Peru using 100% alpaca fabric, which was formed in the U.S. with alpaca yarns from Bolivia. Knit-to-shape collars and cuffs for the shirts are made in Peru using the same Bolivian alpaca yarns. The knit fabric for the shirt is cut and assembled in Peru. The finished shirts are dyed and finished in Peru. After completion, the shirts are exported to the U.S.

Are these shirts eligible for ATPDEA treatment and under what grouping?

atpdea question 1 answer
ATPDEA Question 1 - Answer

YES! Grouping E

The shirt is made U.S. fabric, from ATPDEA yarns.

The knit-to-shape collars and cuffs were made in APTDEA country using ATPDEA yarns.

The shirts are garment dyed, thus the dyeing printing provision would not apply.

atpdea question 2
ATPDEA Question 2

Knitted tracksuits are cut and assembled in Colombia from knitted nylon fabric formed in the U.S. with nylon filament yarns that were formed either in the U.S. or Canada and if yarns were imported they were classified under 5402.10.30. The tracksuit also contains woven pocketing fabric which is woven in Colombia using U.S. formed cotton yarns. After completion, the tracksuits are exported to the U.S.

Are these tracksuits eligible for ATPDEA treatment and under what grouping?

atpdea question 2 answer
ATPDEA Question 2 - Answer

YES! Grouping I

The tracksuits are made from fabric formed in the U.S. using nylon filament yarns either made in the U.S. or made in Canada (using the exception for nylon filament yarn) that is permitted.

The pocketing fabric is woven in Colombia using U.S. formed yarns.

customs regulations
Customs Regulations
  • Issues regarding the interpretation and implementation of the ATPDEA are addressed in the interim regulations published in the federal register (68 FR 14478) on march 25, 2003.

http://www.cbp.gov

request a binding ruling
Request a Binding Ruling
  • Binding on U.S. Customs & border protection
  • Provides certainty
  • Ruling is

Free

http://www.cbp.gov

Write to:

U.S. Customs & Border Protection

Office of Regulations & Rulings

Commercial Rulings Division, Mint Annex

1300 Pennsylvania Ave. NW

Washington, DC 20229

atpdea information on the internet
ATPDEA Information on the Internet
  • Duty rates (HTS) www.usitc.gov
  • Customs & BP www.cbp.gov
  • Textile trade data www.otexa.ita.doc.gov
  • U.S. Trade rep www.ustr.gov
questions
Questions?

Elise Shibles

International Trade Specialist

US Customs & Border Protection

Textile Policy Branch

1300 Pennsylvania Ave. NW, 4.2E

Washington, DC 20229

tel. (202) 927-1249

fax (202)927-0308

[email protected]

Kelly Herman

Attorney Advisor

US Customs & Border Protection

Office of Rulings and Regulations

1300 Pennsylvania Ave. NW

Washington, DC 20229

tel. (202) 572-8713

fax (202) 572-8799

[email protected]

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