CBP Announces Implementation of New GSP/Certified Hand-loomed and Folklore Agreement with Cambodia, Etc.
U.S. Customs and Border Protection has issued a notice announcing that the U.S. Trade Representative has negotiated a Generalized System of Preferences (GSP) hand-loomed and folklore agreement with Cambodia that meets the requirements of the "certified hand-loomed and folklore" provision in HTS Section XI, Additional U.S. Note 2.1
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.
New Duty Benefits for Certain Cambodia Wall Hangings and Pillow Covers
According to CBP sources, as a result of this negotiated agreement, "certified hand-loomed and folklore" Cambodian woven wool or fine animal hair wall hangings (HTS 6304.99.1000) and woven wool or fine animal hair pillow covers (HTS 6304.99.4000), entered or withdrawn from warehouse for consumption on or after July 25, 2008, are eligible for the lower "certified hand-loomed and folklore" Normal Trade Relations (NTR) rate, or duty-free GSP rate (provided the requirements normally applying to GSP-eligible articles are satisfied), if properly certified as described below.
(Prior to the implementation of this agreement, these tariff numbers could not be used for Cambodian hand-loomed and folklore articles.)
Importers can file for refund. Importers who paid duties on eligible articles that were entered or withdrawn from warehouse for consumption on or after July 25, 2008 may file a claim for refund of duties under any of the applicable post entry procedures with the exception of North American Free Trade Agreement (NAFTA) 520(d).
Certification consists of stamp, statement on invoice. The certification for eligible articles will be in the form of a triangular stamp placed on the commercial invoice. The stamp will include the following details:
the name, signature, title and department of a government official authorized to issue the certification;
the date the certification was signed; and
a statement in English that the fabrics or products covered by the certification are: (a) hand-loomed fabrics of the cottage industry, (b) hand-made cottage industry products made of hand-loomed fabrics, or (c) traditional handicraft textile products.
CBP states that the required certification must be presented at time of entry and may not be waived. If the certification is not provided at the time of entry, the merchandise will be considered dutiable and classified in the alternative tariff schedule provisions for these products.
Agreement Also Provides "Alternative Means" to Certain Lower Duty Rates, Etc.
CBP sources state that with a negotiated GSP/hand-loomed and folklore products agreement with Cambodia:
Textile floor coverings. Cambodian articles can now be entered under HTS subheadings 5701.10.13, 5702.10.10, 5702.91.20, 5805.00.20 and be duty free as a "certified hand-loomed and folklore product" (if accompanied by the certification describe above), or continue to be entered under the subsequent tariff number (no certification required) for duty free/lower NTR duty treatment.
Fabric. The certification described above, rather than a generic government certification which is still allowed, may now be used for Cambodian articles entered under HTS subheadings 5208.31.20, 5208.32.10, 5208.41.20, 5208.42.10, 5208.51.20, 5208.52.10, 5209.31.30, 5209.41.30, 5209.51.30 to obtain the lower "certified hand-loomed fabrics" duty rate, or duty-free GSP rate (if the GSP requirements are satisfied).
Note that HTS Chapter 52, AUSN 4 details the requirements for "certified hand-loomed fabrics" which, among other things, does not require a USTR agreement.
U.S. has Hand-loomed/Folklore Agreements with 15 Countries, Mongolia Expected Soon
CBP states that GSP/certified hand-loomed and folklore agreements exist with the following countries to date: Afghanistan, Argentina, Botswana, Cambodia, Colombia, Egypt, Jordan, Nepal, Pakistan, Paraguay, Peru, Thailand, Tunisia, Turkey, and Uruguay. It is anticipated that an agreement with Mongolia will be finalized soon.
1AUSN 2 of HTS Section XI requires that the tariff provisions for "certified hand-loomed and folklore" products can only be used if such an agreement exists.
CBP contact - Jacqueline Sprungle (202) 863-6517
CBP notice (TBT-08-011, dated 09/09/08) available at http://www.cbp.gov/linkhandler/cgov/trade/priority_trade/textiles/tbts/tbt2008/tbt_08_011.ctt/tbt_08_011.doc.