2012 Morocco FTA Textile and Apparel TPLs Announced
U.S. Customs and Border Protection has issued two notices on the 2012 Morocco Free Trade Agreement (MFTA) duty-free tariff preference levels for certain textile and apparel products provided for in HTS Chapter 99, Subchapter XII, U.S. Note 64 (non-originating apparel and fabric) and U.S. Note 65 (yarn and knit fabric of AGOA cotton fiber).
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These MFTA TPLs are scheduled to open on January 3, 2012. CBP notes that "MA" should be used as the primary Special Program Indicator (SPI).
TPL for Fabric & Apparel Goods, Regardless of Fiber/Yarn Origin, Etc.
The duty-free TPL provided for in U.S. Note 64 is for imports from Morocco that are (1) fabric goods provided for in HTS Chapters 51, 52, 54, 55, 58 and 60 that are wholly formed in Morocco, regardless of the origin of the fiber or yarn used to produce the goods, or (2) apparel goods provided for in HTS Chapter 61 or 62, that are cut or knit to shape, or both, and sewn or otherwise assembled in Morocco, regardless of the origin of the fabric or yarn used to produce the goods.
This 2012 duty-free TPL (subheading 9912.99.20) is 17,142,000 Square Meter Equivalents (SME). Once this TPL is filled, goods enter at the normal trade relations (NTR) rate or General rate of duty as noted in the HTS.
TPL for Yarn and Knit Fabric Made from Certain AGOA Cotton Fibers
The duty-free TPL provided for in U.S. Note 65 is for certain yarn and knit fabric listed in Annex 4-A of the MFTA, that is not an originating good solely because cotton fibers used the production of the good do not undergo an applicable change in tariff classification, if the cotton fibers, classified in HTS 5201, used in the good originate in one or more African Growth and Opportunity Act (AGOA) least-developed beneficiary countries (LDBC) (listed in U.S. Note 65) as of the date of entry into force of the MFTA, and provided the cotton fibers are carded or combed in Morocco or the U.S. or of a designated AGOA LDBC.
This 2012 duty-free TPL (subheading 9912.99.40) is 1,067,257 kg. CBP adds that once this TPL is filled, goods enter at the NTR rate or General rate of duty as noted in the HTS.
(According to HTS Chapter 99, U.S Note 64 subheading 9912.99.20 is only effective for imports from Morocco entered through the close of December 31, 2015, and U.S. Note 65 subheading 9912.99.40 through the close of December 31, 2020.
As of December 12, 2011, the 2011 TPL for apparel and fabric provided for in U.S. Note 64 was 8.06% filled. The 2011 TPL for yarn and knit fabric provided for in U.S. Note 64 was 0.00% filled.)
QBT-11-588 (U.S. Note 64) is available here.
QBT-11-589 (U.S. Note 65) is available here.