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USTR Provides Retroactive DR-CAFTA Benefits for Dominican Republic Textile and Apparel Goods

The Office of the U.S. Trade Representative (USTR) has issued a notice announcing its determination that, effective April 17, 2007, the Dominican Republic is eligible for retroactive preferential tariff treatment1 under the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), effective for qualifying textile or apparel goods entered on or after January 1, 2004 and before March 1, 2007.

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According to U.S. Customs and Border Protection (CBP) sources, CBP will soon issue a memorandum that will contain instructions on this retroactive treatment. These instructions are expected to be the same as those issued for El Salvador, Guatemala, Honduras, and Nicaragua, except for the country and effective date.

Such instructions are expected to state that textile and apparel articles eligible for retroactive preferential tariff treatment1 are defined as:

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

The instructions are also expected to state that requests for liquidation or reliquidation of qualifying articles for retroactive preferential tariff treatment1 must be filed before the 90th day after the last country (Costa Rica) joins the DR-CAFTA, and any excess duties paid will be returned with interest, among other things.

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 01/10/07 news, 07011020, for BP summary of CBP notice extending the time period for filing retroactive claims of certain qualifying textile and apparel articles from December 31, 2006 to 90 days after the entry into force of the DR-CAFTA with respect to Costa Rica.

See ITT's Online Archives or 03/09/06, 04/17/06, and 08/01/06 news, 06030915, 06041710, and 06080115, for BP summaries of similar CBP instructions for El Salvador, Nicaragua and Honduras, and Guatemala, respectively.

See ITT's Online Archives or 03/02/07 and 03/26/07 news, 07030200 and 07032610, for Parts I and II of BP's summary of Presidential Proclamation 8111, which implemented the DR-CAFTA for the Dominican Republic.)

USTR Contact - Robert Carrigg (202) 395-3026

USTR Notice (FR Pub 04/17/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-7263.pdf