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ATPDEA Regional TPL for Oct-Dec 2010 Announced

The Committee for the Implementation of Textile Agreements has issued a notice announcing the three month duty-free tariff preference level for certain apparel from Andean Trade Promotion and Drug Eradication Act (ATPDEA) beneficiary countries (currently Colombia, Ecuador, and Peru1), as specified in HTS 9821.11.25.

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TPL Period for Three Months Only, but has Full 12-Month Quantity

The TPL for HTS 9821.11.25 is for the three month period of October 1 - December 31, 2010 due to the scheduled expiration of the ATPDEA. However, its level is set at 1,238,203,339 SME, which is the level for a full 12-month period. (If the ATPDEA is extended, this TPL would be expected to be extended through September 30, 2011.)

9821.11.25:Apparel articles imported from a designated ATPDEA beneficiary country that are sewn or otherwise assembled in one or more such countries from fabrics or from fabric components formed or from components knit-to-shape in one or more such countries, from yarns wholly formed in the U.S. or in one or more such countries (including fabrics not formed from yarns, if such fabrics are classifiable in HTS 5602 or 5603 and are formed in one or more such countries), imported under the terms of HTS Chapter 98, Subchapter XXI, U.S. Notes 3(d) and 3(e).

(According to U.S. Note 3(e), duty-free treatment shall be afforded to goods imported under HTS 9821.11.25 whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape that are described in 9821.11.01 through 9821.11.10, inclusive (unless exclusively so made).)

Apparel articles entered in excess of this TPL will be subject to otherwise applicable tariffs.

APTA/ATPDEA Set to Expire on Dec 31, But Congress Working on Extension

The Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) will expire on December 31, 2010, unless a law extending it is enacted.

Congressional sources state that the House Ways and Means and Senate Finance Committees are discussing an extension of the GSP and ATPA/ATPDEA programs.

Due to time constraints, any such legislation is likely to be a straight extension, rather than a reform of these trade preference programs. (See ITT’s Online Archives or 09/28/10 news, 10092820, for BP summary on ATPDEA expiring, etc.)

1Colombia, Ecuador, and Peru are considered ATPDEA beneficiary countries. Note that Bolivia lost its ATPA/ATPDEA benefits and while Peru entered into a trade promotion agreement with the U.S., it remains eligible as an ATPA/ATPDEA beneficiary country.

CITA contact -- Richard Stetson (202) 482-3400