President Signs AGOA III Bill Into Law
On July 13, 2004, President Bush signed into law H.R. 4103, the African Growth and Opportunity Act (AGOA) Acceleration Act of 2004 (AGOA III).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
(The House passed H.R. 4103 on June 14, 2004 and the Senate subsequently passed H.R. 4103 on June 24, 2004, clearing the measure for the President. See ITT's Online Archives or 06/28/04 news, 04062805, for BP summary.)
H.R. 4103 will, 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); and
(According to the U.S. Association of Importers of Textiles and Apparel (USA-ITA), this provision provides retroactive benefits for (1) knit-to-shape garments, (2) hybrid goods that include U.S. and regional fabrics, and expressly incorporates (3) the NAFTA short supply list. USA-ITA also notes that the availability of such retroactive benefits may be limited by the date the particular AGOA country became eligible for benefits, if that eligibility occurred after October 1, 2000.)
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 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4103enr.txt.pdf.
USA-ITA Textile Development Memos, dated 06/25/04 and 07/13/04, www.usaita.com.