Details of Proclamation Easing Certain SFTA Apparel Rules, & Other FTA Changes

Duty-Free Tariff Treatment for Singapore Apparel of Certain Yarns/Fabrics

Proclamation 8682 amends U.S. Note 2 to HTS Chapter 98, Subchapter XXII by adding a new subdivision (c), effective for imports from Singapore that are entered or withdrawn from warehouse for consumption, that are entered on or after May 24, 2011¹, in order to extend SFTA duty-free treatment under HTS 9822.01.25 to certain apparel articles made in Singapore, regardlessof the source of the listed yarn/fabric inputs.

New subdivision (c) states that for purposes of U.S. Note 2 and HTS 9822.01.25, in addition to any goods otherwise eligible for entry under such heading, the following goods that are imported from Singapore shall be eligible for entry under HTS 9822.01.25, on or after May 21, 2011¹:

• apparel goods of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from viscose rayon filament yarns (such yarns classifiable in HTS 5403.41.00);
• blouses for women or girls of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from woven cotton fabrics, not of square construction, containing more than 70 warp ends and filling picks per cm², of average yarn number exceeding 70 nm (such fabrics classifiable in HTS 5210.11);
• apparel goods (excluding gloves) of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from 100 percent cotton woven yarn-dyed flannel fabrics made from single ring-spun yarns of nm 14 through 41, of 2 x 1 twill weave construction, weighing 200 g/m2 or less (such fabrics classifiable in HTS 5208.43.00);
• shirts, trousers, nightwear, robes, dressing gowns or woven underwear of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from 100 percent cotton woven flannel fabrics (such fabrics classifiable in HTS 5208.42.30 or, if napped, in HTS 5209.41.60);
• shirts, trousers, nightwear, robes, dressing gowns or woven underwear of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both. From 100 percent cotton woven flannel fabrics (such fabrics comprising sheeting classifiable in subheading 5208.32.30 or napped sheeting classifiable in HTS 5209.31.60);
• shirts, trousers, nightwear, robes, dressing gowns or woven underwear of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from 100 percent cotton woven napped fabrics (such fabrics classifiable in HTS 5209.41.60); or
• shirts, trousers, nightwear, robes, dressing gowns or woven underwear of chapters 61 or 62, the foregoing cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from 100 percent cotton woven double-napped fabrics (such fabrics classifiable in HTS 5209.31.60).”

Modifications to SFTA Tariff Classification Rule 64 (for HTS Chapter 90)

Proclamation 8682 also amends the SFTA tariff classification rules (TCRs) in HTS General Note 25(o) by redesignating TCRs 64A, 64B, 64C, and 64D for Chapter 90 (optical, photographic, etc. instruments) as 64B, 64C, 64D, and 64E, respectively and adding an new TCR 64A.

These modifications are effective for goods of Singapore, under the terms of HTS General Note 25, that are entered or withdrawn from warehouse for consumption on or after February 7, 2008.

Tariff Treatment for Ethyl Alcohol and ETBE from Peru

In order to carry out U.S. General Note 5 to Annex 2.3 of the PTPA², Proclamation 8682 amends HTS Chapter 99, Subchapter I by:

• Adding a new subdivision (e) to U.S. Note 3 for Peru which reads as follows:

(e) For purposes of headings 9901.00.50 (ethyl alcohol) and 9901.00.52 (ethyl tertiary-buytl ether (ETBE)), originating goods of Peru, under the terms of HTS general note 32 (for the PTPA²), shall not be subject to any duty provided for in such headings, provided that (i) the goods are imported directly from Peru into the customs territory of the U.S., and (ii) the sum of the cost or value of the materials produced in the territory of Peru plus the direct costs of processing operations performed in the territory of Peru is not less than 35% of the appraised value of such goods at the time they are entered.

• Revising the Column 1 Special duty rate subcolumn by adding the phrase “see U.S. note 3(e) (PE)” for HTS 9901.00.50 and 9901.00.52.

These modifications are effective with respect to goods of Peru, under the terms of HTS General Note 32, that are entered or withdrawn from warehouse for consumption on or after January 1, 2011.

NAFTA Technical Corrections for Certain Organic Chemicals, Vehicles

In June 2010, Proclamation 8536 made technical corrections to certain NAFTA rules of origin. However, additional errors to HTS General Note 12 were not corrected in that Proclamation. The President has determined that further technical corrections to HTS General Note 12 are necessary to provide the tariff and certain other treatment accorded under NAFTA to originating goods.

In order to provide such treatment, Proclamation 8682 amends the NAFTA TCRs for certain organic chemicals in HTS Chapter 29 and vehicles in HTS Chapter 87 by amending HTS General Note 12(t) as follows:

• TCRs 44 and 44A for Chapter 29 are deleted and a new TCR 44 is inserted in lieu thereof;
• TCR 47B for Chapter 29 is deleted; TCRs 47C, 47D, 47E, and 47F are redesignated 47D, 47E, 47F, and 47G, respectively, and new TCRs 47B and 47C are added; and
• TCRs 20 and 21 for Chapter 87 are deleted.

These technical corrections are effective with respect to goods of Mexico or Canada, under the terms of HTS General Note 12 that are entered or withdrawn from warehouse for consumption on or after October 2, 2009.

¹BP is checking to see whether there is a discrepancy between these two dates and will update the summary as information is available.

²U.S.-Peru Trade Promotion Agreement (PTPA or PFTA).

(See ITT’s Online Archives or 06/28/10 news, 10062809, for BP summary of previously announced corrections to General Note12.

See ITT’s Online Archives or 08/17/09 news, 09081730, for BP summary of an ITC report on the proposed SFTA apparel rule of origin changes, which the ITC states result from determinations that these yarns and fabrics are not produced in the U.S. or Singapore in commercial quantities in a timely manner.

See ITT’s Online Archives or 05/24/11 news, 11052410, for BP summary announcing issuance of the Proclamation.)