CBP Notices on U.S.-Chile FTA "3rd Country" TPLs for Certain Cotton/MMF Apparel and Fabric
U.S. Customs and Border Protection (CBP) has issued separate notices on the U.S.-Chile Free Trade Agreement's (UCFTA) 2004 Tariff Preference Levels (TPLs) for imports from Chile of certain cotton and man-made fiber (MMF) apparel goods and certain cotton/MMF fabric goods, as described below.
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(CBP has also issued a third notice concerning the HTS numbers for ensembles subject to the UCFTA TPL for certain cotton and MMF apparel.)
These UCFTA TPLs are temporary provisions provided in HTS Chapter 99, Subchapter XI, U.S. Notes 22 and 23 for the years 2004 - 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 282 eight-digit HTS Chapters 61 and 62 tariff numbers.
CBP states that the 2004 UCFTA TPL for apparel opened for 2,000,000 square meter equivalents (SME) on January 2, 2004 at 12:00 noon, E.S.T., or its equivalent in other time zones, for exports during the period January 1, 2004 through December 31, 2004.
According to U.S. Note 23(b), the quantity for this TPL will remain 2,000,000 SME for each of the years 2005 - 2013, and will be reduced to 1,000,000 SME for each of the years 2014 and 2015.
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 chapters 52, 54, 55, 58, and 60 of the tariff schedule 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), i.e. certain chapter 58 and 60 tariff numbers, 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, this UCFTA TPL for fabric covers goods that are classifiable in 1,033 ten-digit HTS tariff numbers in the above listed chapters.
CBP states that the 2004 UCFTA TPL for fabric opened for 1,000,000 SME on January 2, 2004 at 12:00 noon, E.S.T., or its equivalent in other time zones, for exports during the period January 1, 2004 through December 31, 2004.
U.S. Note 22 indicates that the quantity for this TPL will remain at 1,000,000 SME for each of the remaining years of 2005 - 2015.
Non-ABI Entries Required Until UCFTA Programming Completed
In its notices for the 2004 UCFTA TPLs for apparel and fabric, CBP states that due to ongoing system programming for the UCFTA, ABI transmission of entries for eligible goods is not available at this time. Therefore, filers are required to file non-ABI entries for UCFTA-eligible goods until further notice. CBP states that ports and the trade community will be notified once this programming is completed and in place.
Importer Certification Is Required for UCFTA TPLs for Apparel and Fabric
In its special instructions for the 2004 UCFTA TPLs for apparel and for fabric, CBP also states that the importer must certify the eligibility of apparel or fabric for UCFTA preferential tariff treatment under HTS 9911.99.40 or 9911.99.20, respectively. This importer certification statement must contain information demonstrating that the goods are eligible for the applicable UCFTA TPL.
(Subscribers should note that once the in-quota allocation for a UCFTA TPL is filled, goods will be allowed to enter at the General Column 1 rate of duty as noted in the HTS.)
CBP Contact - Michelle Videlock (202) 927-5396
CBP notice on 2004 UCFTA TPL for apparel (QBT-2003-065, dated 12/31/03) available at http://www.cbp.gov/ImageCache/cgov/content/import/textiles/qbt/qbt2003/2003_2d065_2edoc/v1/2003_2d065.doc
CBP notice on 2004 UCFTA TPL for fabric (QBT-2003-064, dated 12/31/03) available at http://www.cbp.gov/ImageCache/cgov/content/import/textiles/qbt/qbt2003/2003_2d064_2edoc/v1/2003_2d064.doc
CBP notice on ensembles subject to the UCFTA TPL for apparel under HTS 9911.99.40 (QBT-2003-066, dated 12/31/03) available at http://www.cbp.gov/ImageCache/cgov/content/import/textiles/qbt/qbt2003/2003_2d066_2edoc/v1/2003_2d066.doc