Proclamation Suspends Bolivia from ATPA/ATPDEA, Amends HTS for Repeal of AGOA Abundant Supply, and for "2 for 1" DR Apparel Benefit, Etc.

Bolivia Suspended from ATPA/ATPDEA

Effective December 15, 2008, the designation of Bolivia as a beneficiary country for purposes of the Andean Trade Preference Act and the Andean Trade Promotion and Drug Eradication Act will be suspended. On that date, HTS General Notes 11(a) and 11(d), and U.S. Note 1 to Chapter 98, Subchapter XXI will be modified by deleting 'Bolivia' from the lists of ATPA and ATPDEA beneficiary countries.

(See ITT's Online Archives or 09/29/08 news, 08092915, for BP summary of President Bush's memorandum that proposed to suspend Bolivia from ATPA/ATPDEA.)

AGOA "Abundant Supply" Provision Repealed

Effective for goods entered or withdrawn from warehouse for consumption on or after October 31, 2008, HTS 9819.15.10 through 9819.15.42 are deleted from the HTS as the African Growth and Opportunity Act was amended to repeal the "abundant supply" provision for certain AGOA apparel in order to ensure African countries can use third country fabrics in apparel qualifying for AGOA duty-free treatment.

Mauritius Included as an AGOA Lesser Developed Beneficiary Country

Effective for goods entered or withdrawn from warehouse for consumption on or after October 31, 2008, Mauritius is included as an AGOA lesser developed beneficiary country, and its eligibility to use the AGOA "third country fabric" provisions is reinstated. (Mauritius' eligibility lapsed in 2005.)

Duty-Free "2 for 1" Benefit for DR Cotton Trousers, Skirts, Etc. Made from "Third Country" Fabric

Effective for goods entered or withdrawn from warehouse for consumption on or after December 1, 2008, new HTS 9822.06.05 and U.S. Note 27 are added to Subchapter XXII of Chapter 98 to implement a duty-free "2 for 1" Earned Import Allowance Program for eligible apparel wholly assembled in and imported directly from the Dominican Republic that is accompanied by an Earned Import Allowance Certificate.

Under the DR 2-for-1 Earned Income Allowance Program, producers receive a credit (equivalent to 1 square meter equivalents) when they purchase 2 SMEs of U.S. fabric for certain apparel production in the Dominican Republic. This credit can then be used to ship a proportional quantity of eligible apparel (woven cotton (but not of denim) trousers, bib and brace overalls, breeches and shorts, skirts and divided skirts, and pants) from the Dominican Republic to the U.S. duty-free regardless of the origin of the fabric from which the apparel product is made. This DR "2 for 1" program is slated to be in effect for a 10 year period.

HTS Chapter 58 NAFTA Rule of Origin Change for Canada

Effective for goods originating in Canada under the terms of HTS General Note 12, that are entered or withdrawn from warehouse for consumption on a date to be announced by the U.S. Trade Representative, Tariff Classification Rule 1 for Chapter 58 and the TCR note immediately above it are modified. In addition, a new TCR 1A is added.

Chapter 90 and Chapter 99 Modifications

Effective for goods entered or withdrawn from warehouse for consumption on or after January 4, 2007, HTS 9902.23.23 is modified by deleting 2931.00.90 and replacing it with 2931.00.60.

Effective for goods entered or withdrawn from warehouse for consumption on or after July 1, 1997, HTS 9030.90.64 is modified by deleting 9030.82 and inserting "9030.40 or 9030.82" in lieu thereof, and by renumbering it as 9030.90.66. Conforming changes are also made to TCR 70 for Chapter 90, as set forth in General Note 12(t), and General Note 25(m)(9) and (m)(152).

See ITT's Online Archives or 10/20/08 news, 08102015, for BP summary on the enactment of H.R. 7222 (Public Law 110-436), to extend the Andean trade preferences and Generalized System of Preferences programs beyond their current expiration dates, and make various changes regarding AGOA and DR apparel, etc.)

Presidential Proclamation 8323 (FR Pub 11/28/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-28537.pdf