ATPDEA (Colombia and Ecuador) Regional TPL Extended Thru Feb 12
The Committee for the Implementation of Textile Agreements has issued a notice extending the tariff preference level for certain apparel from Andean Trade Promotion and Drug Eradication Act (ATPDEA) beneficiary countries (currently only Colombia and Ecuador)1, as specified in HTS 9821.11.25, for an additional six weeks (from January 1, 2011 through February 12, 2011).
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(This TPL extension is due to the enactment of H.R. 6517, the Omnibus Trade Act (Public Law 111-344), on December 29, 2010. P.L. 111-344 extended ATPA/ATPDEA for Colombia and Ecuador2 only, including the ATPDEA regional fabric tariff preference level (TPL), and the ATPDEA brassiere provision, through February 12, 2011. Since P.L. 111-344 did not include an extension for Peru, ATPDEA expired for Peru on December 31, 2010. See ITT’s Online Archives or 12/30/10 news, 10123010, for BP summary on the enactment of P.L. 111-344.)
TPL Period Extended for Six Weeks, but has Full 12-Month Quantity
The TPL for HTS 9821.11.25 is for the period of October 1 -- February 12, 2011 due to the scheduled expiration of the ATPDEA at that time. However, its level is set at 1,238,203,339 SME, which is the level for a full 12-month period3.
9821.11.25: Apparel articles imported from a designated ATPDEA beneficiary country that are sewn or otherwise assembled in one or more such countries from fabrics or from fabric components formed or from components knit-to-shape in one or more such countries, from yarns wholly formed in the U.S. or in one or more such countries (including fabrics not formed from yarns, if such fabrics are classifiable in HTS 5602 or 5603 and are formed in one or more such countries), imported under the terms of HTS Chapter 98, Subchapter XXI, U.S. Notes 3(d) and 3(e).
(According to U.S. Note 3(e), duty-free treatment shall be afforded to goods imported under HTS 9821.11.25 whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape that are described in 9821.11.01 through 9821.11.10, inclusive (unless exclusively so made).)
Apparel articles entered in excess of this TPL will be subject to otherwise applicable tariffs.
ATPDEA Set to Expire on Feb 12, Congress Expected to Consider Extension Again
The ATPA/ATPDEA will expire on February 12, 2011, unless a law extending it is enacted. One Congressional source expects that the issue of ATPA extension will be revisited in the coming weeks.
(The U.S. Trade Representative has stated that the Obama Administration will continue to work with Congress in an effort to secure a full, long-term reauthorization of ATPDEA. In addition, new House Ways and Means Committee Chairman Camp (R) has previously stated that while he was glad that ATPDEA was extended, but would have rather passed a longer-term extension.)
1Note that Peru losts its ATPA/ATPDEA benefits on December 31, 2010 when Congress failed to renew its benefits (due to the U.S.-Peru Trade Promotion Agreement). Bolivia lost its ATPA/ATPDEA benefits in 2008.
2The extension for Ecuador is through February 12, 2011, unless the President reports to Congress that Ecuador does not satisfy ATPA/ATPDEA beneficiary criteria.
3The prior SME level was the same 12-month quantity even though the prior period was only three months, from October 1, 2010 through December 31, 2010.
CITA contact -- Richard Stetson (202) 482-3400
(CITA notice, FR Pub 01/07/11)