Details of the Proclamation Implementing the DR-CAFTA for the Dominican Republic, Etc. (Part II)

According to the Proclamation, the DR-CAFTA for the Dominican Republic is generally in effect for goods entered, or withdrawn from warehouse, for consumption on or after March 1, 2007.

This is Part II, the second in a three-part series of summaries of Proclamation 8111 and highlights the many changes listed in Annexes I and II of International Trade Commission (ITC) publication 3901, which is incorporated by reference into Proclamation 8111. (See ITT's Online Archives or 03/02/07 news, 07030200, for Part I. See future issue for Part III covering certain NAFTA rule of origin changes for Mexico.)

CBTPA Former Beneficiaries

The Annexes make technical amendments to the HTS with regard to former Caribbean Basin Trade Partnership Act (CBTPA) beneficiaries, as follows:

Articles can be processed in a DR-CAFTA country, but must be a "product of" a CBTPA beneficiary country for benefits (with 1 exception). HTS General Note 17; HTS Chapter 98, Subchapter II, U.S. Note 7(b); and HTS Chapter 98, Subchapter XX, U.S. Note 5 are all amended to add a new subdivision indicating that CBTPA articles may be processed in former CBTPA beneficiary countries but the final product must be a "product of" a current CBTPA beneficiary country, with one exception (see below).

(Note that the "product of" requirement is effective for good entered, or withdrawn from warehouse, for consumption, on the date that the each current member (including the Dominican Republic) joined the DR-CAFTA.)

Exception for Dominican Republic and Haiti. These same notes are also modified to add a new subdivision indicating that a good produced in both the Dominican Republic and Haiti that would otherwise qualify for CBTPA preferential treatment, will continue to qualify even if the origin-conferring production takes place in the Dominican Republic.

March 1, 2007 DR-CAFTA Changes for the Dominican Republic

The Annexes state that effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after March 1, 2007 (partial list):

Dominican Republic added to list of DR-CAFTA countries; removed from CBTPA, CBERA, GSP, etc. HTS General Note 29 is amended to add the Dominican Republic to the list of DR-CAFTA countries. General Note 29(n) is modified by adding notes and tariff classification rules applicable to goods of the Dominican Republic for the classification rules for Chapters 27 and 39.

HTS General Notes 4, 7, and 17; HTS Chapter 98, Subchapter XX, U.S. Note 1; and HTS Chapter 98, Subchapter II, U.S. Note 7(b) are amended variously to: delete the Dominican Republic from the list of Caribbean Basin Economic Recovery Act (CBERA) beneficiaries and CBTPA beneficiaries; reflect the exclusion of the Dominican Republic from the Generalized System of Preferences (GSP); and to add the Dominican Republic to the list of former CBERA and CBTPA beneficiary countries.

DR-CAFTA agricultural TRQs for Dominican Republic. HTS Chapter 99, Subchapter XV, U.S. Notes 4, 8, 10, and 14 are amended to add agricultural tariff-rate quota (TRQ) levels for the Dominican Republic.

A new U.S. Note 9 is also added to HTS Chapter 99, Subchapter XV, to list the 2008 - 2025 TRQ levels for new HTS 9915.04.79, which pertains to certain milk/cream products from the Dominican Republic. (See ITT's Online Archives or 03/14/07 news, 07031410, for BP summary providing additional details on these agricultural TRQs.)

DR-CAFTA sugar TRQ for Dominican Republic, etc. HTS Chapter 98, Subchapter XXII, U.S. Note 25(a) is amended to state that the Dominican Republic's March 1, 2007 through December 31, 2007 in-quota quantity for the sugar, syrup goods, and sugar-containing products TRQ is zero (i.e. they have no TRQ level for 2007).

In addition, U.S. Note 25(b) is amended to add levels for this TRQ for the Dominican Republic for the years 2008-2021. (Note that each annual level will be the lesser of (1) the quantity listed in U.S. Note 25(b) or (2) the amount of the Dominican Republic's trade surplus in certain Chapter 17 sugar and syrup goods for that year.)

Dominican Republic added to list of countries eligible for duty-free entry for certain containers, etc. HTS Chapter 9 (Coffee, Tea, Mat, and Spices), Additional U.S. Note 4, is amended to add the Dominican Republic to the list of countries eligible for duty-free entry for certain immediate containers and wrappings and intermediate containers of tea (heading 0902).

¹ The DR-CAFTA is also abbreviated as "CAFTA-DR"

(See ITT's Online Archives or 03/05/07, 07030510, for BP summary of the ITC's institution of an investigation on the probable economic effect of proposed pocketing and other modifications to DR-CAFTA for certain apparel goods.

See ITT's Online Archives or 01/10/07 news, 07011020, for BP summary announcing that the time period for filing retroactive DR-CAFTA claims for certain textile and apparel goods has been extended as the Dominican Republic and Costa Rica had not yet joined the DR-CAFTA.

See ITT's Online Archives or 05/17/06 news 06051705, for BP summary of a guidance on understanding the CBTPA and other textile trade preference programs, which provides information on goods co-produced by Haiti and the Dominican Republic and states that such products are eligible for CBTPA preferential treatment.).

Presidential Proclamation 8111, FR Pub 03/06/07, available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-1068.pdf

ITC publication 3901, dated February 2007 (Annexes I & II), available at http://www.usitc.gov/tata/hts/other/rel_doc/annex/documents/3901ModificationsDominicanRepub_fullreport.pdf

BP Note

The Dominican Republic is the fifth country to implement the DR-CAFTA, joining El Salvador, Guatemala, Honduras, and Nicaragua. That leaves Costa Rica as being the sole country that has signed the DR-CAFTA but has not yet ratified it.