New HELP Bill Would Extend CBTPA/HOPE, Expand Haiti Textile Benefits, Etc.
On April 28, 2010, Senate Finance and House Ways and Means Committee leaders1 introduced the Haiti Economic Lift Program (HELP) Act (S. 3275, H.R. 5160) to expand duty-free access to the U.S. market for Haitian textile and apparel exports and extend existing trade preference programs for Haiti through 2020.
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According to a press release issued by the bills’ sponsors, Senate Finance and House Ways and Means leaders worked closely with the U.S. retail and textile industries to craft the HELP Act and both industries have expressed their support for the bill.
Highlights of the HELP Act include:
CBTPA and Haiti HOPE Would be Extended
The HELP legislation would extend the Caribbean Basin Trade Partnership Act (CBTPA) for a number of Caribbean countries (including Haiti) and the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE) for Haiti through September 30, 2020.
Haiti HOPE Benefits Would be Expanded
The HELP bill would also amend the Haiti HOPE Act to:
Expand the wholly assembled list - provide duty-free treatment for additional textile and apparel products that are wholly assembled or knit-to-shape in Haiti regardless of the origin of the inputs.
Increase TPLs - The bill increases from 70 million square meter equivalents (SMEs) to 200 million SMEs the respective tariff preference levels (TPLs) under which certain Haitian knit and woven apparel products may receive duty-free treatment regardless of the origin of the inputs.
The increase would be triggered in any given year if 52 million SMEs of Haitian apparel enter the U.S. under the existing knit or woven TPL. Once the increase is triggered, certain knit apparel products entering duty-free under the knit TPL would be subject to an 85 million SME sublimit, and certain woven apparel products entering duty-free under the woven TPL would be subject to a 70 million SME sublimit.
Safeguard against transshipment - require U.S. Customs and Border Protection (CBP) to verify that apparel articles imported under the TPLs are not being unlawfully transshipped into the U.S.. The bill would also authorize the President to reduce the TPLs to account for unlawful apparel transshipment.
Liberalize the earned import allowance rule - permit the duty-free importation into the U.S. of one SME of apparel wholly assembled or knit-to-shape in Haiti regardless of the origin of the inputs for every two SMEs of qualifying fabric purchased from the U.S.
Extend the value-added rule - extend until December 20, 2015, the rule that provides duty-free treatment for apparel wholly assembled or knit-to-shape in Haiti with at least 50% value from Haiti, the U.S., a U.S. free trade agreement partner or preference program beneficiary, or a combination thereof.
The bill similarly would extend until December 20, 2017, duty-free treatment for Haitian apparel with at least 55% of value from qualifying countries, and until December 20, 2018, duty-free treatment for Haitian apparel with at least 60% value from qualifying countries.
Extend duty-free treatment for wire harnesses - extend until December 20, 2016, the rule that provides duty-free treatment for wire harness automotive components imported from Haiti.
CBP Support Services Would be Provided
The HELP Act would require U.S. Customs and Border Protection to assess Haiti’s customs-related needs and provide assistance to reestablish Haiti’s port operations.
The bill would also require CBP to provide Congress with a report that describes Haiti’s customs infrastructure needs, sets forth a plan for providing technical assistance, and describes any funds expended to assist Haiti in rebuilding its customs infrastructure. And the bill authorizes funds to help Haiti meet its immediate customs infrastructure needs, and to maintain a CBP team in Haiti.
Trade Partners Would be Encouraged to Adopt Unilateral Preferences for Haiti
The HELP Act would also express the sense of Congress that the Office of the U.S. Trade Representative should consult with U.S. trading partners to encourage the establishment of unilateral preference programs with Haiti, and that CBP should consult with U.S. trading partners to prevent unlawful transshipment of textile and apparel products through Haiti into the U.S..
1Senate Finance Committee Chairman Baucus (D) and House Ways and Means Committee Chairman Levin (D), along with Finance Ranking Member Grassley (R), Ways and Means Ranking Member Camp (R) and Representative Rangel (D).
(See ITT’s Online Archives or 03/10/10 news, (Ref: 10031005), for BP summary on Senate Finance plans for trade preference reform, Haiti legislation.
See ITT’s Online Archives or 02/17/10 news, (Ref: 10021715), for BP summary on the USTR’s “Plus One” for Haiti program to encourage Haitian textile production.)