ITC Sets Schedule for Second Report on DR "2 for 1" Apparel Earned Import Allowance Program

(This program was mandated by the Andean Trade Preference Extension Act of 2008 (ATPEA), which requires the International Trade Administration to create an un-capped duty-free benefit for "qualifying apparel articles"¹ wholly assembled in the Dominican Republic from fabrics (not including denim), fabric components, or yarns, regardless of their source, if such apparel articles are accompanied by an earned import allowance certificate in accordance with the "2 for 1" program.

Under the program, one square meter equivalent (SME) credit will be issued to a qualifying apparel producer² for every two SMEs of "qualifying woven fabric" that this producer can demonstrate was purchased for the manufacture in the Dominican Republic of "qualifying apparel articles" wholly assembled in the Dominican Republic.)

ITA Required to Review Program Annually to Evaluate Effectiveness, Make Recommendations

The investigation, “Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic,” is required by amendments to the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) that were included in the ATPEA.

The ITC is required to review the program annually to evaluate its effectiveness and make recommendations for improvements in the program. The reports will be submitted to the House of Representatives' Committee on Ways and Means and the Senate's Committee on Finance.

ITC to Hold a Hearing on March 22 and Transmit Report on July 22

The ITC will submit its second report to the committees by July 22, 2011. It will hold a public hearing in connection with the investigation on March 22. Requests to appear at the public hearing are due by March 3.

The deadline for filing pre-hearing briefs and statements is March 8 and the deadline for filing post-hearing briefs and statements and all other written submissions is April 1.

(The Earned Import Allowance Program became effective as of December 1, 2009 and remains in effect until November 30, 2018.)

¹"Qualifying apparel articles" means the following articles of cotton (but not of denim) classified in HTS Chapter 62 (and meeting the requirements of the rules relating to HTS Chapter 62 of General Note 29(n)): trousers, bib and brace overalls, breeches and shorts, skirts and divided skirts, and pants.

²A “qualifying apparel producer” is an individual, corporation, partnership, association, or other entity or group that exercises direct, daily operational control over the apparel production process in the Dominican Republic; or an entity that is not a producer and that controls the apparel production process in the Dominican Republic through a contractual relationship or other indirect means.

(See ITT’s Online Archives or 07/30/10 news, 10073011, for BP summary of ITC’s first report on the effectiveness of this program, which found that the program had initial beneficial effects on U.S. and Dominican Republic textile and apparel industries.

See ITT’s Online Archives or 08/03/10 news, 10080328, for BP summary of the Commerce Department maintaining the wholly formed requirement for this program.

See ITT's Online Archives or 12/05/08 news, (Ref: 08120505), for BP summary of Presidential Proclamation 8323, which amended the HTS for this program, etc.)