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Low Duty" Mexico TPL (3) Expires on December 31, 2004

U.S. Customs and Border Protection (CBP) has issued a notice stating that the low-duty Tariff Preference Level (TPL) (3) for Mexico is due to expire on December 31, 2004, the date the Multifiber Arrangement expires.

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As a result, CBP states that goods exported on or after January 1, 2005 will not be allowed entry into the U.S. using Mexico TPL (3).

(CBP explains that Mexico TPL (3), established under the North American Free Trade Agreement (NAFTA), expires after quantitative restrictions established pursuant to the Multifiber Arrangement or any successor agreement are terminated.)

Mexico TPL (3) is the annual low-duty quota for certain Chapter 61, 62, and 63 textile or apparel goods that are sewn or otherwise assembled in the territory of Mexico, from fabric cut in the territory of the U.S., such fabric having been knit or woven outside the territory of the U.S. or Mexico. Mexico TPL (3) goods enter under HTS 9802.00.8055 and are described in HTS Section XI, Additional U.S. Note (AUSN) 3(c) and (d).

(CBP notes that HTS 9802.00.8060 was the original HTS number cited in Annex 300-B of the NAFTA; CBP states it was replaced by several HTS numbers, including HTS 9802.00.8055, which is described in HTS Section XI, AUSN 3 (c) and (d).)

QBT-04-013 (dated 05/12/04) available at http://www.cbp.gov/ImageCache/cgov/content/import/textiles/qbt/qbt2004/2004_2d13_2edoc/v1/2004_2d13.doc

BP Note

As of May 21, 2004, Mexico TPL (3) was 72.9% filled; the standard estimated close date was July 12, 2004; and the four-week estimated close date was June 28, 2004.

(See ITT's Online Archives or 08/05/03 news, 03080515, for BP summary of Mexico TPL (3)'s 2003 level filling on July 21, 2003.)