AGOA TPL and "Third Country" Sublimit for FY 2012 Announced
The Committee for the Implementation of Textile Agreements has issued a notice announcing the fiscal year 2012 duty-free tariff preference level and lesser-developed beneficiary countries (LDBC) sublimit for certain apparel from African Growth and Opportunity Act (AGOA) beneficiary countries1, as specified in HTS 9819.11.09 and 9819.11.12.
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TPL and Sublimit Period for Oct 1, 2011 thru Sept 30, 2012
For the period beginning on October 1, 2011, and extending through September 30, 2012, the TPL limit is 1,877,430,342 SME (HTS 9819.11.09 and 9819.11.12); the LDBC sublimit is 938,715,171 SME (HTS 9819.11.12).
9819.11.09: Apparel articles wholly assembled in one or more eligible AGOA beneficiary countries from fabric wholly formed in one or more eligible AGOA beneficiary countries from yarn originating either in the U.S. or one or more eligible AGOA beneficiary countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTS and are wholly formed and cut in one or more eligible AGOA beneficiary countries), or from components knit-to-shape in one or more eligible AGOA beneficiary countries from yarns originating in the U.S. or one or more eligible AGOA beneficiary countries or former AGOA beneficiary countries, or both, or apparel articles wholly formed on seamless knitting machines in an eligible AGOA beneficiary country from yarns originating in the U.S. or one or more eligible AGOA beneficiary countries or former eligible AGOA beneficiary countries, or both, whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in HTS Chapter 98, Subchapter XIX, U.S. note 2(e) (unless the apparel articles are made exclusively from any of the fabrics, fabric components formed, or components knit to shape described in such note), subject to the provisions of HTS Chapter 98, Subchapter XIX, U.S. Note 2. (This HTS number is available through September 30, 20152.)
9819.11.12: Apparel articles wholly assembled, or knit-to-shape and wholly assembled, or both, in one or more lesser developed eligible AGOA beneficiary countries, subject to the provisions of HTS Chapter 98, Subchapter XIX, U.S. Note 2, regardless of the country of origin of the fabric or the yarn used to make such articles. (This HTS number is available through September 30, 20122.)
Apparel articles entered in excess of this TPL and/or sublimit will be subject to otherwise applicable tariffs. Also note that certain documentation requirements may need to be met in order to utilize these Chapter 98 tariff numbers for duty-free treatment.
Administration Wants to Extend 3rd Country Fabric Provision Through 2022
The Administration has previously stated that it wants to extend the AGOA third country fabric provision through 2022, add South Sudan to the list of countries eligible for AGOA benefits, and make South Africa eligible for the third country fabric provision. See ITT’s Online Archives or 06/06/11 and 06/10/11, 11060619 and 11061026, for BP summaries.)
See ITT’s Online Archives or 07/14/11 news, 11071415, for BP summary of bill that would extend AGOA’s third country fabric provision through September 30, 2015, etc.
1The following AGOA beneficiary countries, as listed in HTS Chapter 98, Subchapter XIX, U.S. Note 1, are eligible for these Chapter 98 benefits: Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Ethiopia, The Gambia, Ghana, Kenya, Lesotho, Liberia, Malawi, Mali, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, and Zambia.
Note that although U.S. Note 1 lists Madagascar and Niger as eligible for AGOA textile benefits, Madagascar and Niger's AGOA eligibility was terminated effective January 1, 2010. (See ITT’s Online Archives or 12/30/09 news, 09123030, for BP summary.
However, Niger is currently the subject of an out-of-cycle review of its AGOA eligibility. (See ITT's Online Archives or 08/12/11 news, 11081209, for BP summary of USTR announcing a review of Niger and two other countries to determine if they should be redesignated as AGOA beneficiaries.)
2The TPL and sublimit were extended (and the sublimit increased) by the Tax Relief and Health Care Act of 2006 (Public Law (P.L.) 109-432). See ITT's Online Archives or 02/06/07 news, 07020610, for BP summary of the AGOA changes in P.L. 109-432.)
Also note that P.L. 109-432 also enacted a special rule to encourage the use (in least developed AGOA beneficiaries) of fabric made in AGOA beneficiary countries that is determined to be in “abundant supply.”)
(Note that the HTS uses the terms “former beneficiary sub-Saharan African country(ies)” or “beneficiary sub-Saharan African country(ies)” while this ITT notice uses the terms former AGOA beneficiary country(ies) or AGOA beneficiary country(ies).
(See ITT’s Online Archives or 09/22/11 news, 11092207, for BP summary of USTR’s request for comments for its 2012 review of AGOA eligibility.)
CITA contact -- Don Niewiaroski (202) 482-2496