USTR Seeks Proposals to Change DR-CAFTA Non-Textile/Apparel Origin Rules
The Office of the U.S. Trade Representative is soliciting proposals on appropriate changes it should consider for modifying the rules of origin for non-textile and non-apparel products under the Dominican Republic-Central America-U.S. Free Trade Agreement (DR-CAFTA). Comments are due by April 17, 2012.
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(In February 2011, the DR-CAFTA Free Trade Commission, the plurilateral ministerial-level body responsible for supervising the implementation of the Agreement, agreed to a series of changes to the Agreement’s rules of origin for textiles and apparel goods, including changes for sewing thread, increased cumulation limits, nightwear, and the "short supply" list. USTR has stated that these changes will take effect after Parties to the Agreement notify each other that they have approved the modifications in accordance with each of their legal procedures.1 See ITT's Online Archives 11022523 and 11030715 for most recent summaries.)
Parties Have not Yet Decided Whether to Make Changes to Rules of Origin
On January 23, 2012, the DR-CAFTA Free Trade Commission agreed to consider modifying the rules of origin for non-textiles and non-apparel goods established in the Agreement, particularly in light of recent free trade agreements. The U.S. and the other DR-CAFTA Parties have not yet decided whether to make changes to the Agreement’s rules of origin and, if such changes were made, what the scope or extent of such changes should be.
(See ITT's Online Archives 12012604 for summary of the January Commission meeting.)
Will Consider Costs, Feasibility & Industry Interest Before Making Changes
The U.S. and other DR-CAFTA Parties expect to take into account several factors in considering whether to make such changes to the rules of origin, including: (1) the extent that any such changes may reduce transaction and manufacturing costs or increase trade among the Parties; (2) the feasibility of devising, implementing, and monitoring new rules of origin; and (3) the level and breadth of interest that manufacturers, processors, traders, and consumers in the Parties express for making particular changes. The Parties expect to make only those changes that are broadly supported by stakeholders in all countries.
Encourages Submitters Review & Gain Consensus on Broad Range of Items
USTR encourages interested parties to review the broadest appropriate range of items and to submit proposals that reflect a consensus reached after such a broad-based review. A single proposal can thus include requests covering multiple tariff headings. Proposals should cover entire 8-digit tariff subheadings, and may also be submitted at the 6, 4, or 2 digit level where the intent is to cover all subsidiary tariff lines.
Submitters Should also Discuss Proposals with Relevant Sectors in Other Parties
Additionally, USTR states submitters should indicate whether they have discussed their proposals with representatives of the relevant sector in the other Parties and, if such discussions have taken place, the result of those discussions. Submissions should indicate if representatives of the relevant sector in the other Parties do not support the proposal. USTR encourages interested parties to consider submitting proposals jointly with interested parties in the other Parties.
Written comments must identify on the first page of the submission "CAFTA-DR Rules of Origin." However, USTR strongly encourages commenters to make online submissions at http://www.regulations.gov under docket number "USTR-2012-0002".
1In the U.S., the DR-CAFTA Implementation Act (19 USC 4011, P.L. 109-53) authorizes the President to proclaim modifications to the DR-CAFTA product-specific origin rules set forth in the Harmonized Tariff Schedule, subject to certain consultation and layover conditions under section 104 of the Act.
USTR Contact -- Kent Shigetomi (202) 395-9459
(FR Pub 02/17/12)