2011 U.S.-Chile FTA "3rd Country" TPLs for Apparel and Fabric
U.S. Customs and Border Protection has issued two notices on the U.S.-Chile Free Trade Agreement's (UCFTA, or CFTA) 2011 tariff preference levels for duty-free imports from Chile of certain cotton and man-made fiber (MMF) apparel goods and certain cotton/MMF fabric, as described below.
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These UCFTA TPLs are temporary provisions provided for in HTS Chapter 99, Subchapter XI, U.S. Notes 22 and 23 and expire on December 31, 2015.
According to the UCFTA, goods in these TPLs that meet the applicable UCFTA conditions for preferential treatment other than the condition that they be originating goods, are accorded UCFTA preferential treatment as if they were originating goods.
Details of "3rd Country" UCFTA TPL for Apparel
According to HTS Chapter 99, Subchapter XI, U.S. Note 23(a), the UCFTA TPL provided for in HTS 9911.99.40 is applicable to cotton or MMF apparel goods, or apparel goods subject to cotton or MMF restraints, that are both cut (or knit-to-shape) and sewn or otherwise assembled in Chile from fabric or yarn produced or obtained outside the territory of Chile or of the U.S., that are classifiable in the eight-digit HTS Chapters 61 and 62 tariff numbers specified in U.S. Note 23(a).
According to CBP, the 2011 UCFTA TPL for such apparel is for the period of January 1, 2011 through December 31, 2011 and opens on Monday, January 3, 2011. The TPL limit for this time period is 2,000,000 square meter equivalents (SME).
(See CBP's notice for special instructions on ensembles classified under certain HTS numbers in Chapters 61 and 62.)
Details of "3rd Country" UCFTA TPL for Fabric
HTS Chapter 99, Subchapter XI, U.S. Note 22 describes the UCFTA TPL provided for in HTS 9911.99.20 for fabric goods as follows:
- cotton or MMF fabric goods provided for in HTS Chapters 52, 54, 55, 58, and 60 that are wholly formed in Chile from yarn produced or obtained outside the territory of Chile or of the U.S.; and
- cotton or MMF fabric goods provided for in Annex 4.1 (Specific Rules of Origin), that are wholly formed in Chile from yarn spun in the territory of Chile or of the U.S. from fiber produced or obtained outside the territory of Chile or of the U.S.
According to CBP, the 2011 UCFTA TPL for such fabric is for the period of January 1, 2011 through December 31, 2011 and opens on Monday, January 3, 2011. The TPL limit for this time period is 1,000,000 SME.
Importer Certification Is Required for UCFTA TPLs for Apparel and Fabric
Certification of eligibility is required for preferential tariff treatment under these provisions. At time of entry, a statement is required by the importer certifying and containing information demonstrating that the goods are eligible for the TPL.
Once the in-quota allocation for a UCFTA TPL is filled, goods will be allowed to enter at the Normal Trade Relations (NTR) rate or General rate of duty as noted in the HTS.
CBP notes that "CL" should be used as the primary SPI indicator.
CBP contact -- Michelle Videlock (202) 863-6511
CBP notice on 2011 UCFTA apparel TPL (QBT-10-107, dated 11/09/10) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/textiles_and_quotas/qbts/qbt2010/qbt_10_107.ctt/qbt_10_107.pdf.
CBP notice on 2011 UCFTA TPL for fabric (QBT-10-108, dated 11/09/10) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/textiles_and_quotas/qbts/qbt2010/qbt_10_108.ctt/108.pdf.
BP Notes
As of November 8, 2010, the 2010 UCFTA TPL for apparel is 20.79% filled and the 2010 UCFTA TPL for fabric is 0% filled.
In December 2006 CBP issued a final rule adopting, with some changes, the interim rule implementing the preferential tariff treatment and other customs-related provisions of the UCFTA. (See ITT's Online Archives or 01/29/07 news, 07012910, for BP summary.)