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USTR and Bahrain Agree to Amend BFTA Rules of Origin for Sheets, Pillow Cases, Etc.

The Office of the U.S. Trade Representative has sent a letter to the International Trade Commission stating that the U.S. and Bahrain recently reached an agreement in principle on certain modifications to the rules of origin for home furnishings (sheets, pillow cases, etc.) under the U.S.-Bahrain Free Trade Agreement.

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In its letter, USTR asks the ITC to report within five months on the probable effect of these modifications on U.S. trade under the Bahrain FTA, total U.S. trade and domestic producers of the affected articles.

Changes Needed as U.S. and Bahrain Producers Cannot Produce the Yarns

These changes are the result of determinations that neither U.S. nor Bahraini producers are able to produce certain combed cotton yarns used in the production of certain home furnishings (sheets, pillow cases, etc.) in commercial quantities in a timely manner.

Origin of Compacted, Single, Ring Spun Cotton Yarns Would be Disregarded

Under the proposed modifications, the origin of compacted, single, ring spun cotton yarns of subheadings 5205.27aa and 5205.28bb would be disregarded in determining the origin of cotton pillow cases, other than bolster cases, and sheets, of subheadings 6302.21.90cc, 6302.31.50dd, 6302.31.90ee, cotton bed skirts of subheading 6303.91ff, cotton shams and finished throw pillow covers of subheading 6304.92gg, cotton pillow shells of subheading 6307.90.89hh, and cotton shells for quilts, eiderdowns, comforters and similar articles of subheading 6307.90.89ii.

The letter provides the following descriptions of the HTS subheadings:

  1. 5.27aa - combed fiber, ring spun, compact yarn exceeding 102nm
  2. 5.28bb - combed fiber, ring spun, compact yarn exceeding 102 nm
  3. 2.21.90cc - pillow cases, other than bolster cases, and sheets
  4. 2.31.50dd - pillow cases, other than bolster cases, and sheets
  5. 2.31.90ee - pillow cases, other than bolster cases, and sheets
  6. 3.91.00ff - bed skirts
  7. 4.92.00gg - shams and finished throw pillow covers
  8. 7.90.89hh - pillow shells, of cotton
  9. 7.90.89ii - shells for quilts, eiderdowns, comforters and similar articles, of cotton

(According to ITC sources, whenever an FTA refers to 8-digit tariff numbers, which are not part of the international Harmonized System and are therefore not common, the parties include a table somewhere (usually after the product-specific rules of origin but occasionally in another annex) that lists what the double letters mean in terms of the country's actual domestic tariff schedule at the time. These tables must then be updated whenever the national schedules are amended. ITC sources state that ITC has not yet received a list explaining what these letters represent.)

USTR's letter to ITC (dated 02/12/10) available at https://edis.usitc.gov/edis3-external/546534-418709.pdf?sp=ZH4sIAAAAAAAAAFvzloG1uIjBND2%2FTK%2B0OLMkWa8ksSC1uKSoUi81Lz0zL1XPNSWzODg1uSQzPy84tagsMzk1ILEoMTe1JLXoPxB8qdrSzMTA7MPAlZKfXJqbmlfimVLCIOCTlViWqJ%2BTmJeu75Ofl27tw8BZDDHEM6WQoY6B0YdBECoQkl8QkppbEFqUWcLAB9GXl1qiHxrkaV1RAHQbH0hID2SUHtio7icTzvQr32diYPRiYC1LzClNrShiEEAo8ivNTUotalszVZZ7yoNuJgaGigIGEGBLnloMspoFzOMIe1YAAPCHCM79AAAA