House Ways and Means Committee Amends and Approves AGOA III Bill
On May 5, 2004, the House Ways and Means Committee amended and ordered reported (i.e., approved) H.R. 4103, the African Growth and Opportunity Act (AGOA) Acceleration Act of 2004. (This bill is often referred to as "AGOA III.")
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(The Senate's AGOA bill, the U.S.-Africa Partnership Act, (S. 1900) was introduced and referred to the Senate Finance Committee in November 2003. See ITT's Online Archives or 05/06/04 news, 04050699 1, for BP summary.)
This is Part II of a multi-part series of summaries of H.R. 4103 as amended and ordered reported by the House Ways and Means Committee and covers some of the apparel-related provisions of the bill. See future issues of ITT for additional summaries, including additional apparel provisions.
H.R. 4103, as amended and ordered reported ("H.R. 4103"), would:
Hybrid (fabric and components) AGOA apparel. H.R. 4103 would amend 19 USC 3721(b)(1) by adding the phrase "or both" to indicate that such apparel articles sewn or otherwise assembled in one or more AGOA beneficiary countries can be made from (i) wholly formed and cut U.S. fabric and (ii) components knit-to-shape in the U.S.
Fabric, components in, and/or seamlessly knit, AGOA regional apparel. H.R. 4103 would amend 19 USC 3721(b)(3) to indicate that for AGOA regional apparel, the fabrics formed, components knit-to-shape, or garments seamlessly knit, may be from yarns originating in the U.S. or one or more AGOA beneficiary countries or former AGOA beneficiary countries1 , or both.
1 H.R. 4103 would define "former AGOA beneficiary country" as an AGOA beneficiary country that has ceased to be a beneficiary because it entered into a free trade agreement (FTA) with the U.S.
H.R. 4103 would also amend 19 USC 3721(b)(3) to indicate that in AGOA regional apparel, U.S. formed fabrics (cut in either the U.S. or AGOA beneficiary country) and/or components knit-to-shape in the U.S. may be used.
Aggregate duty-free cap for AGOA apparel - H.R. 4103 would amend 19 USC 3721(b)(3)(A) to extend through September 30, 2015 and increase the aggregate cap for AGOA apparel (HTS 9819.11.09 and 9819.11.12) by having the applicable percentage2, which would be 4.747% beginning October 1, 2003, increase in each of five succeeding one-year periods by equal increments, so that for the one-year period beginning October 1, 2007, the applicable percentagedoes not exceed 7% and for each succeeding one-year period until September 30, 2015 does not to exceed 7%.
2 This term means the percentage of the aggregate square meter equivalents of all apparel articles imported into the U.S. in the preceding 12-month period for which data are available.
Duty-free sublimit on AGOA apparel made from "third country" fabric/yarn - H.R. 4103 would amend 19 USC 3721(b)(3)(B) to extend for three years (to September 30, 2007) the duty-free sublimit under HTS 9819.11.12 for AGOA apparel that is wholly assembled or knit-to-shape and wholly assembled, or both, in one or more lesser developed AGOA beneficiary countries, regardless of the country of origin of the fabric or the yarn used to make such articles ("third country" fabric/yarn).
The applicable percentage for the duty-free sublimit would increase for the period beginning October 1, 2004 to 2.6428%, for the period beginning October 1, 2005 to 2.9285%, but would decrease to 1.6071% for the last period beginning October 1, 2006.
(The current duty-free sublimit expires on September 30, 2004. See ITT's Online Archives or 09/24/03 news, 03092420, for BP summary on the 2003/2004 AGOA apparel cap and its sublimit for apparel made from 'third country" fabric/yarn.)
Use of AGOA fabric or yarn in apparel that uses "commercially unavailable" fabric or yarn. H.R. 4103 would amend 19 USC 3721(b)(5)(A), regarding apparel articles assembled with fabric or yarn listed in NAFTA Annex 401 as not available in commercial quantities in the U.S., to indicate that fabric or yarn formed in an AGOA beneficiary country may also be used.
(This change would similarly affect 19 UCS 3721(b)(5)(B), an AGOA provision that pertains to apparel articles containing CITA-determined additional "commercially unavailable" fabrics or yarns.)
(See ITT's Online Archives or 05/10/04 news, 04051005, for Part I of this series of BP summaries of H.R. 4103 as approved by House Ways and Means.)
House Ways and Means press release (FC 17-A, dated 05/08/04) are available at http://waysandmeans.house.gov/legis.asp?formmode=read&id=1438.H.R. 4103 as amended and ordered reported are available at http://waysandmeans.house.gov/Media/pdf/hr4103/hr4103sub.pdf.
House Ways and Means Committee description of the amendments made to H.R. 4103 during committee mark-up are available at http://waysandmeans.house.gov/Media/pdf/hr4103/hr4103subdesc.pdf.
BP Note
Many of apparel provisions in H.R. 4103 which are outlined above are identical to those contained in the Senate-passed version of H.R. 1047, the Miscellaneous Trade and Technical Corrections Act of 2003. (See ITT's Online Archives or 04/16/04 news, 04041625, for earlier BP summary of those Miscellaneous bill provisions.)