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CBP Revises Numerous Definitions, Changes Origin Certificate Authority in AGOA Regulations

June 3, 2014 by Tim Warren|Customs

CBP's adoption of final interim regulations to reflect Treasury Department Decisions and legislation affecting eligibility for African Growth and Opportunity Act (AGOA) preferential treatment, will make a number of changes to the agency's regulations. The updates will be effective June 26. Some of the more substantial changes include:

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  • The inclusion of the cost or value of materials produced in “former beneficiary sub-Saharan African countries” toward meeting the Generalized System of Preferences 35% value-content requirement, and a new paragraph to define “former beneficiary sub-Saharan African country.”
  • CBP has determined that the producer or the producer’s authorized agent having knowledge of the relevant facts should be permitted to sign the Certificate of Origin in addition to the exporter or the exporter’s authorized agent. The producer clearly is in the best position to attest to the accuracy of the information set forth in the Certificate. CBP notes that this change is consistent with changes to the implementing regulations under the Caribbean Basin Trade Partnership Act (CBTPA) and the Andean Trade Promotion and Drug Eradication Act (ATPDEA) and thus brings uniformity to the three programs.
  • The following definitions are either new or were revised:
    • “Apparel articles” is revised to delete heading “6503”, to replace the reference to subheading “6406.99” of the HTSUS with a reference to subheading “6406.90.15”, and to replace the reference to subheading “6505.90” with a reference to subheadings “6505.00.02-6505.00.90.”
    • The definition of “assembled in one or more beneficiary countries” has been replaced by a definition of “sewn or otherwise assembled in one or more beneficiary countries.”
    • The definition of “cut in one or more beneficiary countries” has been revised to add the words “or were cut from fabric in the U.S. and used in a partial assembly operation in the United States prior to the cutting of fabric and final assembly of the article in one or more beneficiary countries, or both.
    • A definition of “ethnic printed fabric” has been added.
    • The definition of “foreign” has been replaced by a definition of “foreign origin.” That's because, in the case of textile findings, trimmings and interlinings the concept of “foreign” logically only has relevance in the context of an exception to the production standards that apply to articles eligible for preferential treatment.
    • A definition of “former beneficiary country” has been added.
    • The definition of “knit-to-shape components” has been modified to clarify the words “specific shape” and to replace the article “a” immediately before “self-start edge” with the words “at least one” to clarify that knit-to-shape components may contain one or more self-start edges.
    • A definition of “lesser developed beneficiary country” has been added as new paragraph.
    • A definition of “self-start edge” has been added as new paragraph.
    • A definition of “sewing thread” has been added as new paragraph.
    • The definition of “wholly formed fabrics”has been modified to clarify that fabric formation does not encompass dyeing, printing and finishing operations.
    • The definition of “wholly formed yarns” has been revised to clarify that draw-texturing to fully orient a filament falls within the scope of “wholly formed” as it relates to yarn while dyeing, printing, and finishing operations do not.
  • CBP clarified that the certain apparel articles may be made both from fabrics wholly formed and cut in the U.S. and from components knit-to-shape in the U.S.
  • CBP revised a paragraph to replace the words “either in the United States or one or more beneficiary countries” each place they appear with the words “in the United States or one or more beneficiary countries or former beneficiary countries, or both.”
  • A new paragraph has been added to include preferential treatment for “textile and textile articles classifiable under Chapters 50 through 60 or Chapter 63 of the HTSUS that are products of a lesser developed beneficiary country and are wholly formed in one or more such countries from fibers, yarns, fabrics, fabric components, or components knit-to-shape that are the product of one or more such countries.”