Proclamation on Haiti HELP, Bahrain FTA Still Pending Signature
A Proclamation to amend the Harmonized Tariff Schedule to provide duty-free treatment to additional types of Haitian textile and apparel products, as provided for by the Haiti Economic Lift Program (HELP) Act (Public Law 111-171), is awaiting Presidential signature, and has been for some time.
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The Proclamation will also amend the HTS Bahrain Free Trade Agreement (BFTA) rules of origin, and make several technical corrections to other HTS provisions.
USTR sources did not know when the Proclamation would be signed, but speculated that it would likely occur by the end of the year.
(The HELP Act, which was enacted on May 24, 2010, expands the duty-free access to the U.S. market for Haitian textile and apparel products and wire harnesses provided by the Haitian Hemispheric Opportunity through Partnership Encouragement Acts (HOPE I and II). HELP also extended HOPE I and II through 2020.1)
Proclamation to Add HELP Tariff Numbers, Indicate Effective Date
According to sources at U.S. Customs and Border Protection, the proclamation will create new HTS Chapter 98 tariff numbers for the additional HELP benefits.
Sources at CBP, the International Trade Commission, and the U.S. Trade Representative’s office all stated that the Proclamation will specify the effective date of the tariff changes being implemented by HELP.
Most of HOPE and HELP Benefits Are for Apparel, Textile Products
HOPE and HELP largely focus on the textile and apparel sector:
HOPE I created three duty-free Chapter 98 tariff numbers for apparel assembled in Haiti; some have value requirements, all have assembly requirements, and all are subject to a tariff preference level (TPL). HOPE I also created a duty-free Chapter 98 tariff number for brassieres, subject to an assembly requirement.
HOPE II made the duty-free benefits more expansive, adding another five duty-free Chapter 98 numbers for luggage, apparel, and headwear, with an assembly requirement, but without a value requirement or TPL. Two more Chapter 98 numbers were added for i) a new TPL for certain assembled knit apparel and ii) a ‘3 for 1’ Earned Import Allowance Program (EIP).
HELP will allow additional apparel items to receive duty-free treatment under HOPE, such as coats, dresses, pajamas, and knit shirts and blouses. HELP will also provide duty-free benefits to certain towels, floor coverings, furnishings, and other manufactures.
All have assembly requirements, with a provision for direct importation from Haiti or the Dominican Republic. A new provision also allows certain TPLs to be increased if heavily utilized (with exceptions for certain woven trousers and certain knit apparel). HELP also lowers the Earned Import Allowance rule to ‘2 for 1’.
A value-added rule under HOPE I was also revised to allow value to be added from U.S. free trade partner or preference partner nations. In addition, the value percentage was lowered, and two expiration dates were extended.
Upcoming OTEXA Webinar on Using HOPE and HELP
The Office of Textiles and Apparel is hosting a free webinar on utilizing HOPE and HELP on November 16, 2010. (See ITT’s Online Archives or 09/22/10 news, 10092212, for BP summary on registration for the webinar.)
(See ITT’s Online Archives or 09/22/10 news, 10092216, for BP summary of Korean firm signing MOU for an industrial part for garment manufacturing, etc. in Haiti.)
Proclamation to also Amend HTS for Bahrain FTA, Make Technical Corrections
Sources state that the Proclamation will also amend the HTS Rules of Origin for the Bahrain Free Trade Agreement, so that they conform to the many World Customs Organization (WCO)-conforming changes implemented by the U.S. on February 3, 2007.
The Proclamation will also contain a handful of technical corrections to the HTS.
1CBP sources noted that the CBTPA (Caribbean Basin Trade and Partnership Act) program is more commonly used for Haiti apparel than HOPE I and II to date.
(See ITT’s Online Archives or 05/26/10 news, 1005663, for BP summary detailing the HELP Act. See ITT’s Online Archives or 10/21/08 news, 08102115, for BP summary of HOPE I and II.)