Details of the Proclamation Implementing the DR-CAFTA for El Salvador (Full Summary)

Implementing the

DR-CAFTA for El Salvador

(Full Summary)

On February 28, 2006, President Bush issued Proclamation 7987 to amend the Harmonized Tariff Schedule (HTS), etc., to implement the U.S. - Dominican Republic -Central America Free Trade Agreement (DR-CAFTA) for El Salvador.

According to the Proclamation, the DR-CAFTA for El Salvador is generally in effect for goods entered, or withdrawn from warehouse, for consumption on or after March 1, 2006.

Annexes Containing HTS Modifications Posted to ITC Web Site

The Proclamation states that the HTS modifications necessary to implement DR-CAFTA for El Salvador are not in the proclamation but are instead listed in publication 3829 of the International Trade Commission (ITC), entitled "Modifications to the HTS of the U.S. to Implement the Dominican Republic - Central American - U.S. Free Trade Agreement with respect to El Salvador", which is posted to the ITC's web site and is incorporated by reference into Proclamation 7987.

These HTS modifications implement the initial stage of duty elimination provided for in the DR-CAFTA for El Salvador, and provide for future DR-CAFTA staged duty reductions for El Salvador, effective on the dates specified in the relevant sections of publication 3829.

HTS Modifications Include TRQs, Rules of Origin; Removal of GSP/CBTPA/CBERA for El Salvador

The HTS modifications also include tariff-rate quotas (TRQs) for certain El Salvador DR-CAFTA originating goods, rules of origin for determining whether a good is eligible for preferential tariff treatment, and provide for the removal of El Salvador from the list of countries eligible for benefits under the Generalized System of Preferences (GSP) program, the Caribbean Basin Trade Partnership Act (CBTPA), and the Caribbean Basin Economic Recovery Act (CBERA).

DR-CAFTA Textile and Apparel Authorities Delegated to CITA

While verification conducted: suspend/deny benefits; detain/deny entry.According to the proclamation, the Committee for the Implementation of Textile Agreements (CITA) is authorized to exercise the President's authority under Section 209 of the DR-CAFTA Implementation Act (Act) to suspend or deny preferential tariff treatment to textile or apparel goods; to detain textile or apparel goods; and to deny entry to textile or apparel goods - in situations that are the subject of a verification.

(Section 209 of the Act provides that if the U.S. asks a DR-CAFTA country to conduct a verification regarding compliance by an exporter or producer, CITA may take the above actions, if appropriate, while the verification is being conducted.)

Safeguard in form of increased duty rates due to damage/threat. CITA is also authorized to exercise the President's authority under Sections 321-328 of the DR-CAFTA Implementation Act to determine whether a DR-CAFTA textile or apparel article of a specified DR-CAFTA country is being imported into the U.S. in such increased quantities, in absolute terms or relative to the domestic market for that article, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing an article that is like, or directly competitive with, the imported article.

If CITA finds serious damage or actual threat thereof, it may increase the rate of duty for not more than 3 years in the aggregate (but it must not exceed the column 1 general rate of duty imposed on like articles). (The DR-CAFTA Implementation Act also states that this type of relief shall not be provided after the date that is 5 years after the date on which the Agreement enters into force.)

(According to sources at U.S. Customs and Border Protection (CBP), the language of the proclamation is based on the provisions in the DR-CAFTA Implementation Act, which reflect an evolution of the U.S.' approach to textile issues in FTAs, more than any specific DR-CAFTA concerns.)

Determine if fabric, yarn, fiber not available in commercial quantities. The President has also delegated to CITA the authority under Section 203(o) of the Act to determine that a fabric, yarn, or fiber is not available in commercial quantities in a timely manner in the United States and those DR-CAFTA countries for which the DR-CAFTA has entered into force, and to add any such fabric, yarn, or fiber to the list in Annex 3.25 of the DR-CAFTA in a restricted or unrestricted quantity; to eliminate a restriction on the quantity of a fabric, yarn, or fiber within 6 months after adding the fabric, yarn, or fiber to the list in Annex 3.25 of the DR-CAFTA in a restricted quantity; to restrict the quantity of, or remove from the list in Annex 3.25 of the DR-CAFTA, certain fabrics, yarns, or fibers, etc. (See ITT's Online Archives or 03/06/06 news, 06030610 for BP summary of CITA's interim procedures regarding commercial availability/short supply requests.)

According to the proclamation, U.S. Note 20 to subchapter XXII of HTS Chapter 98 will be amended by the U.S. Trade Representative (USTR) to reflect modifications by CITA to the list of fabrics, yarns, or fibers in Annex 3.25 of the DR-CAFTA.

Identify goods that are handloomed, handmade, or folklore articles. CITA is also authorized to consult with representatives of a DR-CAFTA country for the purpose of identifying particular textile or apparel goods of that country that are mutually agreed to be handloomed, handmade, or folklore articles as provided in Article 3.21 of the DR-CAFTA, with CBP carrying out any such determinations.

New HTS General Note 29 (CAFTA-DR). A new General Note 29 is added to the HTS that contains the specific rules of origin, definitions, and other provisions necessary to determine whether a good is an originating good, etc.^*, eligible for DR-CAFTA tariff treatment, some of which are subject to quantitative limitations. These goods are entered under HTS Chapter 1 - 97 followed by the symbol P or P, or are entered in HTS Chapters 98 or 99 where the rate of duty or other treatment is specified.

^*(Certain goods are eligible for a specified DR-CAFTA duty rate or other treatment, that otherwise qualify as originating but as to which any operations performed in, or any material obtained from, the U.S. shall be considered as if the operations were performed in, and the material was obtained from, a country that is not a party to the DR-CAFTA.)

Definitions. Included in new General Note 29 are definitions or descriptions for the following terms (partial list):

Good wholly obtained or produced

Recovered goods

Remanufactured goods

Material

Material that is self-produced

Nonoriginating good or nonoriginating material

Production

Adjusted value

Net cost

Goods that have undergone production necessary to qualify as an originating good

Accumulation

Goods classifiable as goods put up in sets

Textile and apparel goods. New General Note 29 also includes certain textile and apparel provisions, which are highlighted below:

De minimis, certain yarns. A textile or apparel good that is not an originating good under the terms of new General Note 29, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good¹ do not undergo an applicable change in tariff classification as set forth in Note 29(n), shall be considered an originating good if:

The total weight of all such fibers or yarns in that component is not more than 10% of the total weight of that component; or

Such yarns are nylon filament yarns (other than elastomeric yarn) provided for in HTS 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 from a country that is a party to an agreement with the U.S. establishing a free trade area that entered into force before January 1, 1995 (i.e., Israel, Mexico, or Canada).

(Notwithstanding the above information, a textile or apparel good containing elastomeric² yarn in the component of the good that determines the tariff classification of the good¹ shall be considered to be an originating good only if such yarns are wholly formed in the territory of a CAFTA-DR party.)

U.S. fabric cut in a CAFTA-DR beneficiary country. For a textile or apparel good provide for in HTS Chapters 61-63 that is not an originating good and for which the duty treatment set forth in HTS 9822.05.10 is claimed, the rate of duty set forth in the general subcolumn of rate of duty column 1 shall apply only to the value of the assembled good minus the value of fabrics formed in the U.S., components knit-to-shape in the U.S., and any other materials of U.S. origin used in the production of the good, provided that the good is sewn or otherwise assembled in the territory of a CAFTA-DR party (other than the U.S.) with thread wholly formed in the U.S. from fabrics wholly formed in the U.S. and cut in one or more CAFTA-DR parties or from components knit-to-shape in the U.S., or both.

New General Note 29 also discusses when a fabric and a thread is wholly formed in the U.S.

Textile or apparel good defined, exceptions listed. For purposes of General Note 29, the term "textile or apparel good" means a good listed in the Annex to the Agreement on Textiles and Clothing referred to in section 101(d)(4) of the Uruguay Round Agreement Act (19 USC 3511(d)(4)); but such term does notencompass the following goods that are listed in Annex 3.29 of the DR-CAFTA:

wadding, gauze, bandages and the like (subheading 3005.90);

woven, knitted or nonwoven fabrics coated, covered, or laminated with plastics (subheading 3921.12, 3921.13, or 3921.90);

footwear with soles and uppers of wool felt (subheading 6405.20);

footwear uppers of which 50% or more of the external surface is textile material (subheading 6406.10);

leg warmers and gaiters of textile material (subheading 6406.99);

hat forms, hat bodies and hoods of felt and plateaux and manchons of felt (heading 6501);

hat shapes, plaited or made by assembling strips of any material (heading 6502);

felt hats and other felt headgear (heading 6503);

hats and other headgear, plaited or made by assembling strips of any material (heading 6504);

hats and other headgear, knitted or made up from lace or other textile material (subheading 6505.90);

safety seat belts for motor vehicles (subheading 8708.21);

parachutes, parts thereof and accessories thereof (heading 8804);

watch straps, bands and bracelets of textile materials (subheading 9113.90);

garments for dolls (subheading 9502.91); and

woven ribbons of manmade fibers, other than those measuring less than 30 mm in width and permanently put up in cartridges (subheading 9612.10).

De minimis, regional content value, etc. Also described in new General Note 29 are the following:

De minimis amounts of nonoriginating material

Regional value content

Accessories, spare parts or tools

Fungible goods and materials

Packaging or packing materials and containers

Indirect materials

Generally accepted accounting principles

Special subcolumn indicators P and P. General Note 3(c)(i) indicates that the HTS "Special" subcolumn indicators for the CAFTA-DR are P or P.

GSP. General Note 4 (Generalized System of Preferences (GSP)) is modified by removing El Salvador from the list of GSP beneficiary countries.

In addition, General Note 4(d) is amended by removing the following three entries listed for El Salvador HTS 0713.33.20, 1102.90.30, and 2106.90.52. The "Special" duty subcolumn for each of these three HTS numbers is also modified by replacing "A*" with "A."

CBERA. General Note 7 (Caribbean Basin Economic Recovery Act (CBERA)) is modified by removing El Salvador from the list of CBERA beneficiary countries.

General Note 7 is also amended in order to allow the cost or value of materials produced in the territory of the U.S. Virgin Islands, Puerto Rico, and "former beneficiary countries" to be counted towards meeting the 35% value added requirement.

In addition, General Note 7 is amended by listing El Salvador as a former CBERA beneficiary country.

CBTPA. General Note 17 (U.S.-Caribbean Basin Trade Partnership Act (CBTPA)) is modified by removing El Salvador from the list of CBTPA beneficiary countries.

New CBTPA notice 17(e).In addition, a new General Note 17(e) is added for articles that undergo production in a CBTPA beneficiary country and a former CBTPA beneficiary country. New 17(e) states that:

For purposes of determining eligibility of an article for preferential treatment under General Note 17, references to (1) a CBTPA beneficiary country shall be considered to include any former CBTPA beneficiary country, and (2) CBTPA beneficiary countries shall be considered to include former CBTPA beneficiary countries, if the article or good used in the production of the article undergoes production in a CBTPA beneficiary country.

An article that is eligible for CBTPA preferential treatment under new 17(e)(i), shall not be ineligible for such treatment because the article is imported directly from a former CBTPA beneficiary country.

The term "former CBTPA beneficiary country" means a country that ceases to be designed as a CBTPA beneficiary country under Note 17 because the country has become a party to a free trade agreement with the U.S. El Salvador is currently the only country designated as a former CBTPA beneficiary country.

¹In the case of a good that is a yarn, fabric or fiber, the term "component of the good that determines the tariff classification of the good" means all of the fibers in the good.

²See new General Note 29 for details on the term "elastomeric".

New General Note 29 (CAFTA-DR)

Annex I contains a new General Note 29, highlights of which are provided below. (See Part III for previously summarized aspects of new General Note 29).

Claims for preferential treatment. An importer may make a claim for the tariff and other treatment provided for under the terms of General Note 29 based on either (a) a written or electronic certification by the importer, exporter, or producer; or (b) the importer's knowledge that the good is an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good; in such form and manner as may be required in applicable regulations.

Recordkeeping requirements. An importer of a good, for which entry is claimed under the terms of General Note 29, shall maintain, for a minimum of five years from the date of importation of the good, all records and documents necessary to demonstrate that the good qualified for the tariff and other treatment provided for under the terms of this note, in such form and manner as may be required in applicable regulations.

Verification. For purposes of determining whether a good imported into the customs territory of the U.S. from the territory of another party to the CAFTA-DR qualifies as an originating good under the provisions of General Note 29, the appropriate Customs officer may conduct a verification as set for the in pertinent regulations.

(See ITT's Online Archives or 03/08/06 and 03/13/06 news, 06030805 and 06031305, for BP summaries of CBP's CAFTA-DR implementation instructions, which provide details on claims for preferential treatment, recordkeeping requirements, and verification.)

Interpretation and application of DR-CAFTA tariff shift/other rules of origin. General Note 29(m) contains information on interpreting and applying the DR-CAFTA change in tariff classification rules (including tariff shift rules) found in General Note 29(n), as well as certain other origin rules, as follows:

(For purposes of General Note 29(m) and (n), a tariff provision is a "heading" if its article description is not indented; a provision is a "subheading" if it is designated by 6 digits under the Harmonized System; and the terms "chapter" and "section" refer to a chapter or section, respectively, of the tariff schedule.)

Non-originating materials. General Note 29(m) states that unless otherwise specified, the requirements of any rule in General Note 29(n) that is set out adjacent to a heading or subheading of the HTS and specifies a change in tariff classification applies only to nonoriginating materials.

Specific rules that exclude tariff provisions. Where a specific rule in General Note 29(n) is defined using the criterion of a change in tariff classification, and the rule is written to exclude tariff provisions at the level of a chapter, heading or subheading of the HTS, such rule shall be construed to require that materials classified in those excluded provisions be originating for the good to qualify as originating.

Heading or subheading subject to alternative specific rules. When a heading or subheading of the HTS is subject to alternative specific rules in General Note 29(n), the rule will be considered to be met if a good satisfies one of the alternatives.

Single rule applicable to a group of headings or subheadings. When a single rule is applicable to a group of headings or subheadings, and that rule of origin specifies a change of heading or subheading, the requirement shall be interpreted so that the change of heading or subheading may occur within a single heading or subheading or between headings or subheadings of the group. When, however, a rule refers to a change in heading or subheading "outside that group," such change in heading or subheading must occur from a heading or subheading that is outside the group of headings or subheadings set out in the rule.

References to weight for HTS Chapters 1-24. References to weight in the rules set forth the General Note 29(n) for goods provided for in HTS Chapters 1-24 are to dry weight, unless otherwise specified.

Agricultural or horticultural goods in HTS Chapters 6-14. For purposes of applying General Note 29(m) to goods of HTS Chapters 6-14, inclusive, agricultural and horticultural goods shall be treated as originating in the territory of a CAFTA-DR party even if grown from seeds, bulbs, rootstock, cuttings, grafts, shoots, buds or other live parts of plants imported from a country other than a CAFTA-DR party.

Origin conferring processes. For relevant products in the HTS Chapters (and headings) identified below, origin is conferred by certain processes, etc. (see GN 29(m)(vii)) for complete details). Notwithstanding this, a good is originating if it meets the applicable change in tariff classification rules specified in General Note 29(n). An outline of these HTS Chapters (and headings) and processes can be found below:

9822.05.01: textile goods of HTS Chapters 50-60. A textile good of HTS Chapters 50 through 60 and imported under HTS 9822.05.01 shall be considered originating if it is wholly formed in the territory of one or more CAFTA-DR parties from (a) one or more fibers and yarns listed in HTS Chapter 98, Subchapter XXII, U.S. Note 20; or (b) a combination of fibers and yarns listed in U.S. Note 20 and one or more fibers and yarns that originate under General Note 29(m)^1.

9822.05.01: apparel goods of HTS Chapters 61 or 62. An apparel good of HTS Chapter 61 or 62 and imported under HTS 9822.05.01 shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more CAFTA-DR parties, and if the fabric of the outer shell, exclusive of collars and cuffs where applicable, is wholly of (a) one or more fabrics listed in HTS Chapter 98, Subchapter XXII, U.S. Note 20; or (b) one or more fabrics formed in the territory of one or more of the CAFTA-DR parties from one or more of the yarns listed in U.S. Note 20; or (c) any combination of the fabrics referred to in (a) or (b) above, or one or more fabrics originating under General Note 29(m)².

9822.05.01: textile goods of HTS Chapters 63 or 64. A textile good of HTS Chapter 63 or 64 and imported under HTS 9822.05.01 shall be considered originating if it is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more CAFTA-DR parties, if the component that determines the tariff classification of the good is wholly of (a) one or more fabrics listed in HTS Chapter 98, Subchapter XXII, U.S. Note 20; or (b) one or more fabrics formed in the territory of one or more of the CAFTA-DR parties from one or more of the yarns listed in U.S. Note 20; or (c) any combination of the fabrics referred to in (a) or (b) above, or one or more fabrics originating under General Note 29(m)².

Change in tariff-classification rules. New General Note 29(n) contains the CAFTA-DR change in tariff-classification rules, which include certain tariff shift rules as well as certain chapter, heading, and subheading rules.

¹ the originating fibers and yarns may contain up to 10% by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in General Note 29(n). Any elastomeric yarn contained in a textile good of HTS Chapters 50 through 60 must be formed in the territory of one or more of CAFTA-DR parties.

² the originating fabrics may contain up to 10% by weight of fibers or yarns that do not undergo an applicable change in tariff classification set out in General Note 29(n). Any elastomeric yarn contained in a fabric referred to in (a), (b), or (c) of this provision must be formed in the territory of one or more of CAFTA-DR parties.

Former CBTPA beneficiary countries - 9802 and CBTPA Subchapters. Annex I amends U.S. Note 7(b) in Chapter 98, Subchapter II (Goods exported and returned, advanced or improved abroad), and amends U.S. Note 1 and adds a new U.S. Note 5 in Chapter 98, Subchapter XX (Goods eligible for special tariff benefits under the U.S.-Caribbean Basin Trade Partnership Act (CBTPA)), to provide that:

For purposes of determining the eligibility of an article for preferential treatment under U.S. Note 7(b) and Subchapter XX, a CBTPA beneficiary country shall be considered to include any former CBTPA beneficiary country, if the article, or a good used in the production of the article, undergoes production in a CBTPA beneficiary country. In addition, such articles may be imported directly from a former CBTPA beneficiary country.

Temporary admission of goods, goods re-entered after repair or alteration. Chapter 98, Subchapter XXII, U.S. Note 1(b) is revised in order to, for purposes of 9822.01.05, accord to a national or resident duty-free temporary admission without bond to goods enumerated as eligible in CAFTA-DR Article 3.5. (CAFTA-DR Article 3.5 provides duty-free temporary admission, regardless of origin, for certain professional equipment of a business person who qualifies for temporary entry, goods intended for display or demonstration, commercial samples and advertising films and recordings, and goods admitted for sports purposes.) This treatment is subject to certain conditions as outlined in U.S. Note 1(b) and DR-CAFTA Article 3.5.

Annex I also amends HTS Chapter 98, Subchapter XXII, U.S. Note 1(c) in order to, for purposes of HTS 9822.01.10, accord duty-free entry to vessels (together with equipment, parts or materials), regardless of origin, that are exported temporarily from the U.S. and that undergo repairs or alterations in a CAFTA-DR country, to the extent provided in CAFTA-DR article 3.6. (CAFTA-DR Article 3.6 covers goods (not just vessels) re-entered after repair or alteration.)

New 9822.05.01 and U.S. Note 20 on fabrics, yarns, fibers in "short supply." A new U.S. Note 20 is added to HTS Chapter 98, Subchapter XXII which states that HTS 9822.05.01 applies to textile or apparel goods of HTS chapters 50 through 63 and HTS 9404.90 that contain any of the fabrics, yarns, or fibers listed in new U.S. Note 20, are described in General Note (GN) 29, and otherwise meet the requirements of GN 29.

New U.S. Note 20 lists fabrics, yarns, or fibers not available in commercial quantities in a timely manner among the CAFTA-DR parties, that are allowed to be non-originating. (See ITT's Online Archives or 03/06/06 news, 06030610, for BP summary of the Committee for the Implementation of Textile Agreement's (CITA's) interim procedures for CAFTA-DR commercial availability requests.)

New 9822.05.10 and U.S. Note 22 on U.S. fabric/components.A new U.S. Note 22 is also added to HTS Chapter 98, Subchapter XXII which provides that for textile or apparel goods in HTS Chapters 61-63 that are not originating goods under GN 29, that are claiming HTS 9822.05.10 duty treatment, duty will be applied to the value of the imported article, minus the value of the fabrics, components, or materials of the U.S., provided the good is sewn or otherwise assembled in a CAFTA-DR beneficiary country (other than the U.S.) with thread wholly formed in the U.S., from fabrics wholly formed in the U.S. and cut in one or more CAFTA-DR parties (other than the U.S.) or from components knit-to-shape in the U.S., or both.

New U.S. Note 22 also discusses when a fabric and a thread are considered to be wholly formed in the U.S.

New 9822.05.25 and U.S. Note 26 on handloomed, handmade, folklore goods.New U.S. Note 26 in HTS Chapter 98, Subchapter XXII states that the CAFTA-DR tariff treatment (duty-free) provided for in HTS 9822.05.25 is limited to goods (as defined in GN 29(a)) that have been mutually agreed by a CAFTA-DR party and by CITA to fall within the following: (i) hand-loomed fabrics of a cottage industry; (ii) hand-made cottage industry goods made of such hand-loomed fabrics; or (iii) traditional folklore handicraft goods.

New Note 26 also states that such goods must be certified as eligible products of such party by the competent authority of such party, in accordance with any requirements established by CITA.

New U.S. note on ethyl alcohol TRQ. A new U.S. Note 3 is added to HTS Chapter 99, Subchapter I (temporary legislation providing for additional duties) regarding the tariff-rate quota (TRQ) on ethyl alcohol or certain mixtures containing ethyl alcohol provided for in HTS 9901.00.50. New U.S. Note 3 also details the "dedicated" portion of the TRQ assigned to El Salvador.

In addition, the rates of duty special subcolumn of HTS 9901.00.50 is amended to say "See U.S. Note 3 to this subchapter (E)" rather than "No Change (E)". New U.S. Note 3 states that for purposes of HTS 9901.00.50 and the special subcolumn indicator "E," duty-free treatment shall be accorded to ethyl alcohol or a mixture thereof when entered from an insular possession or beneficiary country to the extent provided for in new U.S. Note 3.

(Although special subcolumn indicator "E" is generally used to indicate the Caribbean Basin Economic Recovery Act (CBERA), in the context of new U.S. Note 3, the "E" special subcolumn indicator is not limited to CBERA countries, and includes the countries specified in new U.S. Note 3 (including El Salvador, a DR-CAFTA country).

According to House Report 109-182 on the DR-CAFTA Implementation Act, the CAFTA-DR countries continue to receive the duty-free treatment for ethyl alcohol that they received under CBERA. U.S. government sources note that the "E" indicator is used for both CBERA and former CBERA countries for CBP programming convenience, and that the addition of new U.S. Note 3 codifies the ethyl alcohol TRQ in the tariff schedule.)

(See ITT's Online Archives or 03/13/06 news, 06031315, for BP summary of CBP notice on the "dedicated" portion of the ethyl alcohol TRQ for El Salvador.)

Exemption for El Salvador from WTO agricultural safeguards. Annex I amends HTS Chapter 99, Subchapter IV, U.S. Note 1 by adding El Salvador to the list of countries whose goods that are imported into the U.S. are not subject to any of the provisions, duties, or limitations of Subchapter IV.

Subchapter IV contains (i) the safeguard measures established pursuant to Article 5 of the World Trade Organization's (WTO's) Agreement on Agriculture, which allows the imposition of additional duties based upon either the value or the quantity of goods imported into the U.S. for certain agricultural products, and (ii) provisions (e.g., fees, quantitative limitations) which may be proclaimed pursuant to section 22 of the Agricultural Adjustment Act, as amended (7 USC 624).

New subchapter on DR-CAFTA agricultural TRQs. A new Subchapter XV entitled "Temporary Provisions Established Pursuant to the CAFTA-DR" is added to HTS Chapter 99. This new subchapter consists of 10 new U.S. notes, which establish various agricultural TRQs for the periods 2006 through 2024 (or 2019 depending on the TRQ) in the following HTS Chapter 99 tariff numbers:

These 10 new U.S. notes also provide the "in quota" and/or "over quota" limits for El Salvador for the periods 2006 - 2024 (or 2019).

Subchapter XV also lists each specific HTS Chapter 99 tariff number for the in-quota (duty-free), over-quota (high duty), or safeguard duty rates, and the associated Chapter 1 - 97 tariff numbers. (These currently only apply to El Salvador.) (See ITT's 03/20/06 news, 06032015, for BP summary of CBP notice on the new TRQs for El Salvador, which contains additional details, including the use of SPI "P" and the treatment of certain U.S. materials or operations as non-originating.)

Immediate zero duty HTS numbers. Annex II lists the HTS Chapter 1-98 tariff numbers that are duty-free immediately for originating goods (indicated by a special program indicator (SPI) "P").

HTS Chapter 99 TRQs, etc. Annex II also adds references to certain HTS Chapters 1-97 tariff numbers for their corresponding HTS Chapter 99 TRQs (indicated by a SPI "P" for "qualifying" goods).

HTS Chapter 9, Additional U.S. Note 4. Annex II amends HTS Chapter 9 (Coffee, Tea, Mate and Spices), Additional U.S. Note (AUSN) 4, which states that all immediate containers and wrappings, and all intermediate containers, of tea (heading 0902) in packages of less than 2.3 kg. net, each are dutiable at the rates applicable to such containers and wrappings if imported empty, except that such goods originating in certain listed countries shall enter duty-free, by adding El Salvador to the list of countries eligible for duty-free entry.

HTS Chapter 11, AUSN 1. Annex II amends HTS Chapter 11 (Products of the Milling Industry; Malt; Starches; Inulin; Wheat Gluten), AUSN 1, to allow duty-free entry for mixtures of products classifiable in headings 1101, 1102, 1103, or 1104 (except mixtures classifiable in HTS 1102.90.30) that are originating (indicated by a SPI "P").

Articles of metal, exported for further processing, and returned to the U.S. for further processing in HTS 9802.00.60. Annex II amends the rates of duty special subcolumn for HTS 9802.00.60 by adding SPI "P" to the provision that states "A duty upon the value of such processing outside the U.S. (see U.S. note 3 of this subchapter)."

Staged CAFTA-DR duty reductions. Staged duty reductions (to zero) are listed for each affected HTS Chapter 1-97 eight-digit tariff number (as indicated by a SPI "P" in the rates of duty special subcolumn). The staged duty reductions take effect on March 1, 2006 and on January 1 of subsequent years, depending on the tariff number's phase-out schedule.

Staged duty reductions for CAFTA-DR agricultural TRQs. Staged duty reductions are listed for each the agricultural TRQ HTS Chapter 99 numbers (as indicated by a SPI "P" in the rates of duty special subcolumn). The staged duty reductions take effect on March 1, 2006 and on January 1 of subsequent years, depending on the tariff number's reduction schedule.

Articles of metal, exported for further processing, and returned to the U.S. for further processing in HTS 9802.00.60. Effective for originating goods under the terms of General Note 29 that are entered or withdrawn from warehouse for consumption on or after January 1, 2015, Annex II adds SPI "P" to the list of SPIs for which the rates of duty special subcolumn duty rate is free.

Presidential Proclamation 7987 (FR Pub 03/02/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-2084.pdf.

Annexes for CAFTA-DR Proclamation 7987 (USITC Publication 3829 (dated 02/06) available at http://www.usitc.gov/tata/hts/other/rel_doc/annex/index.htm