Congress Passes the AGOA III Bill (Clearing Measure for President)
On June 14, 2004, the House of Representatives approved H.R. 4103, the African Growth and Opportunity Act (AGOA) Acceleration Act of 2004 (AGOA III). The Senate subsequently passed H.R. 4103 without amendment on June 24, 2004, clearing the measure for the President.
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As passed by Congress, H.R. 4103 would, among other things (partial list):
extend both the standard Generalized System of Preferences (GSP) program (i.e., A, A*, and A) and AGOA-GSP program (i.e, D) for AGOA beneficiary countries through September 30, 2015;
extend through September 30, 2015 and increase the aggregate duty-free cap for AGOA apparel (HTS 9819.11.09 and 9819.11.12);
extend through September 30, 2007 and revise the duty-free sublimit for AGOA apparel made from "third country" fabric/yarn (HTS 9819.11.12). This provision is for 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.
(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.);
allow AGOA-qualifying apparel to incorporate nonqualifying collars or cuffs (cut or knit-to-shape), drawstrings, shoulder pads or other padding, waistbands, belt attached to the article, straps containing elastic, and elbow patches, regardless of the country of origin of the item;
provide for retroactive AGOA duty- and quota-free treatment for entries of apparel made on/after October 1, 2000 and before the date of enactment of H.R. 4103 that meet the requirements of AGOA for duty- and quota-free treatment (19 USC 3721(b), as amended by Section 3108 of the Trade Act of 2002 and H.R. 4103)
(According to the U.S. Association of Importers of Textiles and Apparel (USA-ITA), this provision provides retroactive benefits for the following: (1) knit-to-shape garments, (2) hybrid goods that include U.S. and regional fabrics, and (3) expressly incorporating the NAFTA short supply list.); and
expand the "de minimis" special rule threshold to 10% (from 7%).
(See ITT's Online Archives or 06/16/04 news, 04061610, for BP summary of the House's passage of H.R. 4103. See ITT's Online Archives or 05/11/04 news, 04051105, for BP summary of the House Committee on Ways and Means amendment and approval of H.R. 4103.)
H.R. 4103 as passed by both the House and Senate available at
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4103enr.txt.pdf.
USA-ITA Textile Development Memo (dated 06/25/04) available atwww.usaita.com
| Published in ITT on June 28, 2004 | 04062805 |
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