CBP Issues Instructions on Retroactive DR-CAFTA Benefits for Nicaragua & Honduras Textile and Apparel Goods
U.S. Customs and Border Protection (CBP) has issued a memorandum which contains instructions on the retroactive application of the preferential tariff provisions1 of the U.S. - Dominican Republic - Central America Free Trade Agreement (DR-CAFTA) to qualifying textile or apparel goods of eligible DR-CAFTA countries that were entered or withdrawn from warehouse for consumption on or after January 1, 2004 and before April 1, 2006, the DR-CAFTA's effective date for Nicaragua and Honduras.
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As countries other than Nicaragua, Honduras, and El Salvador become eligible for retroactive DR-CAFTA benefits, CBP will notify the trade. (See ITT's Online Archives 0r 03/09/06 news, 06030915 for BP summary of similar CBP instructions for El Salvador. See ITT's Online Archives or 03/07/06 news, 06030705, for BP summary of CBP interim rule on DR-CAFTA retroactive textile and apparel benefits and USTR notice granting retroactive textile benefits to El Salvador.)
Requirements for Textile & Apparel from Nicaragua or Honduras to Qualify for Retroactive Treatment
According to CBP, textile and apparel goods will qualify for this treatment provided that they would have qualified as an originating good from Nicaragua or Honduras under the tariff shift rules in General Note 29, of the Harmonized Tariff Schedule (HTS). For purposes of General Note 29 and retroactive treatment, beneficiary country status is currently limited to Nicaragua, Honduras, and El Salvador and the U.S.
CBP states that textile and apparel articles eligible for retroactive benefits are defined as the following:
HTS Chapters 50-63, Textile and Textile Articles
HTS 4202.12, 4202.22, 4202.32, or 4202.92, Textile Luggage and Handbags
HTS 6601, Umbrellas
HTS 7019, Glass Fibers and Articles thereof
HTS 9404.90, Pillows, Quilts, Comforters
Requests must be filed for liquidation or reliquidation by December 31, 2006. Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, CBP shall liquidate or reliquidate qualifying articles for retroactive preferential tariff treatment1 and refund any excess duties paid with interest. Liquidation or reliquidation of goods from the eligible countries may be made only if a request is filed with CBP by December 31, 2006. The request must be filed at the port of entry and must contain sufficient information to enable CBP to locate the entry or reconstruct the entry if it cannot be located. Additionally, there must be sufficient information for CBP to determine that the good would have qualified for the DR-CAFTA had it been entered after the date of entry into force of the DR-CAFTA for that country.
Protest procedures. Any protests made for entries qualifying for DR-CAFTA for textile and apparel goods entered between January 1, 2004 to March 31, 2006 must cite the regulation 19 CFR 10.699. Any entries qualifying for DR-CAFTA that are made on or after April 1, 2006 would not be eligible for protest under 19 CFR 10.699, but must be submitted under the normal protest procedures.
Certain originating goods from El Salvador. CBP notes that originating goods from El Salvador, with raw materials from Nicaragua or Honduras, entered during March 1, 2006 through March 31, 2006, are not eligible for CAFTA-DR retroactive treatment.
1 With the exception of textile and apparel articles classified in 14 subheadings subject to DR-CAFTA staged duty rate reductions, the retroactive benefits are duty-free treatment. (The 14 subheadings are found in HTS Chapters 51, 52, and 94.)
(See ITT's Online Archives or 04/04/06 and 04/05/06 news, 06040405 and 06040515, for Parts I and II of BP summary of the proclamation implementing the DR-CAFTA for both Nicaragua and Honduras.)
CBP Contact - Ms. Jacqueline Sprungle (202) 344-2277
CBP Memorandum (TBT-06-009, dated 04/13/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/tbt2006/tbt_06_009.ctt/tbt_06_009.doc
USTR Notice (FR Pub 04/07/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-5074.pdf
BP Note
The DR-CAFTA is also referred to as "CAFTA-DR".