Textile Provisions

ATPDEAATPDEATextile ProvisionsTextile Provisions

U.S. Customs & Border ProtectionU.S. Customs & Border Protection

20032003

Andean Trade Promotion and Drug Eradication Act

• H.R. 3009• Public law 107-210• Signed into law on August 6, 2002• Effective on October 1, 2002• Will expire on December 31, 2006

– Andean Trade Promotion and Drug Eradication Act (ATPDEA)

ATPDEA Eligible CountriesATPDEA Eligible Countries

• Colombia• Ecuador• Peru• Bolivia

Andean Trade Promotion and Drug Eradication Act (ATPDEA)

• Preferential treatment for certain textiles and apparel and luggage

• Protections against transshipment

Benefits

Obligations

Trade Benefits for Andean Apparel Manufacturers

• Quota free • Duty free Access to

the

U.S. Market

U.S. Apparel Imports

• Total apparel imports into the U.S. Amounted to $60 billion

• Mexico exported $7.4 billion

• Andean countries exported $847 million, slightly over 1% of all apparel imports

Category 1 of the Major Shipper’s Report for Year Ended April 2003

ApplicabilityApplicability

Apparel articles that are imported directly into the customs territory of the United States from an ATPDEA beneficiary country shall enter the United States free of duty and free of any quantitative restrictions, limitations, or consultation levels, but only if such articles are described in subparagraph (B).

““Apparel Articles”Apparel Articles”

• Goods classifiable in chapters 61 and 62 and headings 6501, 6502, 6503, 6504, and subheadings 6406.99.15 and 6505.90, HTSUS.

19 CFR 10.24219 CFR 10.242

““Imported Directly”Imported Directly”

19 CFR 10.243(d)


– The article must be imported directly from an ATPDEA country to the US

– Three definitions of “imported directly”


1.Direct shipment from an ATPDEA to US without passing through the territory of any non-beneficiary country

2.Shipment from an ATPDEA to US through a non-beneficiary country only if:– The merchandise does not enter into the

commerce of any non-beneficiary country, and

– Invoice, bills of lading, and other shipping documents show US as the final destination


3.Shipment from an ATPDEA to US through a non-beneficiary country and the invoices and other documents do not show US as the final destination only if:– Goods remained under the control of the customs

authority of the intermediate country– Goods did not enter the commerce of that intermediate

country– The transaction that causes the goods to be imported

into the US must be between the US importer and the producer or the producer’s agent

– Goods were not subjected to operations other than loading and unloading or preservation

General Rule of Origin for Apparel

• “Yarn forward” rule– US/ATPDEA yarn and

fabric

Made in Ecuador

Preference Groups A-EPreference Groups A-E

Apparel Assembled from:Apparel Assembled from:

AA - US Fabric or US Components from US or - US Fabric or US Components from US or Andean yarnsAndean yarns

BB - Chief Value Llama, Alpaca or Vicuña Andean - Chief Value Llama, Alpaca or Vicuña AndeanFabrics/ Components from Andean yarnsFabrics/ Components from Andean yarns

CC - NAFTA Short Supply - NAFTA Short SupplyDD - Designated Short Supply - Designated Short Supply

EE - Combination of Groupings A - D - Combination of Groupings A - D

Preference Groups F-IPreference Groups F-I

FF - - Handloomed Handloomed, Handmade or Folklore Textile, Handmade or Folklore Textileand Apparel Articlesand Apparel Articles

GG - Brassieres Assembled in the US/ Andean - Brassieres Assembled in the US/ Andean beneficiary countriesbeneficiary countries

HH - Textile Luggage Assembled from US Fabrics - Textile Luggage Assembled from US Fabricsand Yarnsand Yarns

II - Apparel Assembled from Regional Fabrics or - Apparel Assembled from Regional Fabrics orComponents, whether or not in combinationComponents, whether or not in combinationwith Groupings A - Dwith Groupings A - D

Preference Group APreference Group A•• Apparel ArticleApparel Article

•• US or ATPDEA US or ATPDEA Wholly Formed Yarn (nylon (nylonfilament yarn exception)filament yarn exception)

•• Fabrics or fabric components wholly formed orFabrics or fabric components wholly formed orcomponents components knit to shape in the US from in the US from yarnswholly formed in US or one or more ATPDEA in US or one or more ATPDEAcountriescountries

• Dyeing, Printing and Finishing of Fabric in US of Fabric in US(knitted or crocheted or woven from (knitted or crocheted or woven from whollyformed fabric or wholly formed fabriccomponents))

• Assembled in 1 or more Beneficiary ATPDEAcountries or US, or both

•• Entered under 9821.11.01, HTSUSEntered under 9821.11.01, HTSUS

Apparel Assembled from USApparel Assembled from USFabric/ ComponentsFabric/ Components

Apparel articles sewn or otherwiseassembled from fabric, knit to shapecomponents or fabric components whollyformed (dyed, printed and finished) inUS from yarns wholly formed in the USor one or more beneficiary countries(including fabrics not formed from yarns, ifsuch fabrics are classifiable under heading5602 or 5603 of the HTSUS and are formedin the US).

19 CFR 10.243(a)(1)(i)

““Wholly Formed” YarnsWholly Formed” Yarns

All of the production processes took place in the US or in 1 or more ATPDEA country. This means, starting with the extrusion of filament, strip, film or sheet and including drawing to fully orient a filament or slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a yarn or plied yarn.

19 CFR 10.242

““Wholly Formed” Wholly Formed” FabricFabric All of the production processes took place in a

single country. This means starting with polymers, fibers, filaments, textile strips, yarns, twine, cordage, rope or strips of fabric and ending with a fabric by a weaving, knitting, needling, tufting, felting, entangling or other process.

19 CFR 10.24219 CFR 10.242

““Wholly Formed” Fabric Wholly Formed” Fabric ComponentsComponents

All of the production processes starting with the production of wholly formed fabric and ending with a component that is ready for incorporation into an apparel article, took place in a single country.

19 CFR 10.242

““Knit-to-shape Knit-to-shape Components” Components”

• Means components that are knitted or crocheted from a yarn directly to a specific shape containing a self-start edge. Minor cutting or trimming will not affect the determination of whether a component is “knit-to-shape.”

• 19 CFR 10.242

““Assembled or Sewn or Assembled or Sewn or Otherwise Assembled in One or Otherwise Assembled in One or More Beneficiary Countries”More Beneficiary Countries”

A joining together of two or more components that occurred in one or more beneficiary countries, whether or not a prior joining operation was performed on the article or any of its components in the US

19 CFR 10.242

Printing, Dyeing and Printing, Dyeing and FinishingFinishing

• Fabric or fabric components for apparel articles Fabric or fabric components for apparel articles made from US knit or woven fabric must be made from US knit or woven fabric must be printed, dyed and finished in the US. This printed, dyed and finished in the US. This requirement does not apply to non-woven fabric requirement does not apply to non-woven fabric or or

fabric components.fabric components.

• 19 CFR 10.243(b)19 CFR 10.243(b)

Preference Group A-Preference Group A-SummarySummary

• Apparel assembled from US Apparel assembled from US fabric/componentsfabric/components

• 9821.11.01, HTSUS9821.11.01, HTSUS

• 19 CFR 10.243(a)(1)(i)19 CFR 10.243(a)(1)(i)

Example 1Example 1

• Cotton grown in USCotton grown in US• Cotton fibers spun into yarn in USCotton fibers spun into yarn in US• Cotton yarn woven into cotton twill fabric in Cotton yarn woven into cotton twill fabric in

USUS• Cotton twill fabric dyed and finished in USCotton twill fabric dyed and finished in US• Finished fabric shipped to EcuadorFinished fabric shipped to Ecuador• Cotton twill fabric cut into components for a Cotton twill fabric cut into components for a

pair of jeans in Ecuadorpair of jeans in Ecuador• All components assembled All components assembled

in Ecuadorin Ecuador

Example 2Example 2• Cotton grown in USCotton grown in US• Cotton fibers spun into yarn in USCotton fibers spun into yarn in US• Cotton yarn woven into cotton twill fabric in USCotton yarn woven into cotton twill fabric in US• Cotton twill fabric dyed and finished in USCotton twill fabric dyed and finished in US• Cotton twill fabric cut into components for a pair Cotton twill fabric cut into components for a pair

of jeans in USof jeans in US• Belt loops and waistband assembled in USBelt loops and waistband assembled in US• Components shipped to EcuadorComponents shipped to Ecuador• All components assembled in EcuadorAll components assembled in Ecuador

Preference Group BPreference Group B

• Apparel articleApparel article• Chief value llama, alpaca or vicuña llama, alpaca or vicuña

fabric or componentsfabric or components• Yarns wholly formed in one or more Yarns wholly formed in one or more

ATPDEA beneficiary countriesATPDEA beneficiary countries• Fabrics or components wholly formed Fabrics or components wholly formed

in 1 or more ATPDEA beneficiary in 1 or more ATPDEA beneficiary countriescountries

• Assembled in 1 or more beneficiary Assembled in 1 or more beneficiary ATPDEA countries or US, or bothATPDEA countries or US, or both

• Entered under 9821.11.04, HTSUSEntered under 9821.11.04, HTSUS

““Chief Value”Chief Value”

• Means that the value of those materials exceeds the value of any other single textile material in the fabric or component under consideration

• 19 CFR 10.242

Assembled from Chief Value Assembled from Chief Value Llama, Alpaca or VicuñaLlama, Alpaca or Vicuña

Apparel articles sewn or otherwise assembled from fabric, fabric components or components knit to shape, in chief value of llama, alpaca or vicuña, in an ATPDEA country from yarns wholly formed in one or more ATPDEA country (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more ATPDEA countries).

19 CFR 10.243(a)(1)(ii)

Preference Group B-Preference Group B-SummarySummary

• Assembled from fabric, fabric components, or Assembled from fabric, fabric components, or components knit-to-shape, in chief value of components knit-to-shape, in chief value of llama, alpaca or vicuñallama, alpaca or vicuña

• 9821.11.04, HTSUS9821.11.04, HTSUS

• 19 CFR 10.243(a)(1)(ii)19 CFR 10.243(a)(1)(ii)

Example 3Example 3

• Alpaca spun into yarn in PeruAlpaca spun into yarn in Peru• Nylon spun into yarn in ColombiaNylon spun into yarn in Colombia• Nylon yarn shipped to PeruNylon yarn shipped to Peru• Alpaca and nylon yarn woven into Alpaca and nylon yarn woven into

55% nylon/45% alpaca fabric in Peru55% nylon/45% alpaca fabric in Peru• Alpaca fibers 70% of value of fabricAlpaca fibers 70% of value of fabric• Fabric cut into components for a coat Fabric cut into components for a coat

in Peruin Peru• All components assembled in PeruAll components assembled in Peru

Preference Group CPreference Group C

• NAFTA short supply


““NAFTA Short Supply”NAFTA Short Supply”

• Apparel articles sewn or otherwise assembled in 1 or more ATPDEA beneficiary countries, or in the US, or in both, from fabrics or yarns, provided that apparel articles (except articles of subheading 6212.10, HTSUS) of those fabrics or yarns would be considered originating goods under General Note 12(t), HTSUS, if the apparel articles were imported directly from Canada or Mexico

19 CFR 10.243(a)(1)(iii)19 CFR 10.243(a)(1)(iii)

– Silk– Linen– Cotton velveteen– Fine wale corduroy– Harris tweed– Certain woven fabrics made with fine animal

hair– Certain lightweight, high thread count

polyester/cotton woven fabrics– Certain lightweight, high thread count

broadwoven fabrics used in the production of men’s or boys’ shirts (not a definitive list)

NAFTA Short SupplyNAFTA Short Supply

Preference Group C-Preference Group C-SummarySummary

• NAFTA short supplyNAFTA short supply

• 9821.11.07, HTSUS9821.11.07, HTSUS

• 19 CFR 10.243(a)(1)(iii)19 CFR 10.243(a)(1)(iii)

Example 4Example 4

•100% linen fabric imported from Ireland100% linen fabric imported from Ireland•Fabric cut into components for Fabric cut into components for women’s blouse in Boliviawomen’s blouse in Bolivia

•Components sewn to form a blouse in Components sewn to form a blouse in BoliviaBolivia

Example 5Example 5

•60% linen/40% cotton fabric imported 60% linen/40% cotton fabric imported from Egyptfrom Egypt

•Polyester pocketing material imported Polyester pocketing material imported from Chinafrom China

•Components cut in ColombiaComponents cut in Colombia•Components sewn into men’s trousers Components sewn into men’s trousers in Boliviain Bolivia

Preference Group DPreference Group D

• Designated short supply


““Designated Short Designated Short Supply”Supply”

• US president, or his designee, is US president, or his designee, is authorized to add additional yarns authorized to add additional yarns or fabrics, that can be used without or fabrics, that can be used without regard to their origin, if such yarns regard to their origin, if such yarns or fabrics cannot be supplied by the or fabrics cannot be supplied by the domestic industry indomestic industry in

commercial quantities commercial quantities

in a timely mannerin a timely manner

• 19 CFR 10.243(a)(1)(iv)19 CFR 10.243(a)(1)(iv)

““Designated Short Supply”Designated Short Supply”

• CITA -- committee for the CITA -- committee for the implementation of textile implementation of textile agreements has been delegated agreements has been delegated authorityauthority

• Http:\\www.otexa.ita.doc.govHttp:\\www.otexa.ita.doc.gov

Preference Group D-Preference Group D-SummarySummary

• Designated short supplyDesignated short supply

• 9821.11.10, HTSUS9821.11.10, HTSUS

• 19 CFR 10.243(a)(1)(iv)19 CFR 10.243(a)(1)(iv)

Preference Group EPreference Group E

• Combination of groupings A - D


Apparel Assembled From Any Apparel Assembled From Any Combination of Groupings A-DCombination of Groupings A-D

Apparel articles sewn or otherwise Apparel articles sewn or otherwise assembled in 1 or more ATPDEA assembled in 1 or more ATPDEA beneficiary countries, or in the US, beneficiary countries, or in the US, or in both, exclusively from a or in both, exclusively from a combination of fabrics, fabric combination of fabrics, fabric components, knit-to-shape components, knit-to-shape components or yarns described in components or yarns described in two or more of groupings A-Dtwo or more of groupings A-D

19 CFR 10.243(a)(2)19 CFR 10.243(a)(2)

Preference Group E-Preference Group E-SummarySummary

• Combination of groupings A-DCombination of groupings A-D

• 9821.11.13, HTSUS9821.11.13, HTSUS

• 19 CFR 10.243(a)(2)19 CFR 10.243(a)(2)

Example 6Example 6

•100% acrylic knit to shape components knit in US from US yarn

•100% alpaca knit to shape components from Peru

•Assembled in Colombia into sweater with acrylic and alpaca patchwork panels

•Combination of groupings A and B

Preference Group FPreference Group F

• Handloomed articles• Handmade articles• Folklore apparel or textile articles• Entered under 9821.11.16, HTSUSEntered under 9821.11.16, HTSUS

Handloomed, Handmade, or Handloomed, Handmade, or Folklore Textile or Apparel ArticlesFolklore Textile or Apparel Articles

• Competent authority in beneficiary country must certify articles considered handloomed, handmade, or folklore

• U.S. will consult with beneficiary country authorities to determine which articles, if any, will be treated as handloomed, handmade, or folklore

• CITA has been delegated authority to designate eligible articles

19 CFR 10.243(a)(3)

Handloomed, Handmade, or Handloomed, Handmade, or Folklore Textile or Apparel ArticlesFolklore Textile or Apparel Articles

• Must be handloomed fabric, handmade goods of handloomed fabric or traditional folklore articles.

• Generally apparel, apparel accessories or decorative furnishings

• May not include “modern” features, patterns or styles such as zippers, velcro®, etc.

• Please provide samples and descriptions when submitting articles to CITA for designation

Preference Group F -Preference Group F -SummarySummary

• Handloomed, handmade or folklore articles

• 9821.11.16

• 19 CFR 10.243(a)(3)

Preference Group GPreference Group G

• Brassieres• Cut and sewn in the US, or one or

more ATPDEA beneficiary countries or both

• Subject to value requirement• Entered under 9821.11.19, HTSUSEntered under 9821.11.19, HTSUS

Brassieres

• Brassieres, classifiable under Brassieres, classifiable under subheading 6212.10 of the HTSUS, subheading 6212.10 of the HTSUS, cut and sewn or otherwise cut and sewn or otherwise assembled in the US, or one or assembled in the US, or one or more ATPDEA beneficiary countries, more ATPDEA beneficiary countries, or both.or both.

19 CFR 10.243(a)(4)19 CFR 10.243(a)(4)

19 CFR 10.248(b)19 CFR 10.248(b) limitations on limitations on preferential treatmentpreferential treatment

(1) general. During the year that begins on October 1, 2003, & during any subsequent year, articles of a producer or entity controlling production that conform to the production standards set forth in §10.243(a)(4) will be eligible for preferential treatment only if:

19 CFR 10.248(b)19 CFR 10.248(b) Limitations on Limitations on Preferential TreatmentPreferential Treatment

(1)(i) The aggregate cost of fabrics (exclusive (1)(i) The aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the of all findings and trimmings) formed in the US that were used in the production of all US that were used in the production of all of those articles of that producer or that of those articles of that producer or that entity controlling production that are entity controlling production that are entered as articles described in §10.243(a)entered as articles described in §10.243(a)(4) during the immediately preceding year (4) during the immediately preceding year was at least 75% of the aggregate declared was at least 75% of the aggregate declared customs value of the fabric (exclusive of all customs value of the fabric (exclusive of all findings and trimmings) contained in all of findings and trimmings) contained in all of those articles of that producer or that those articles of that producer or that entity controlling production that are entity controlling production that are entered as articles described in §10.243(a)entered as articles described in §10.243(a)(4) during that year; or(4) during that year; or

(1)(ii) In a case in which the 75% requirement set forth in (b)(1)(1)(ii) In a case in which the 75% requirement set forth in (b)(1)(i) of this section was not met during a year & therefore those (i) of this section was not met during a year & therefore those articles of that producer or entity controlling production were not articles of that producer or entity controlling production were not eligible for preferential treatment during the following year, the eligible for preferential treatment during the following year, the aggregate cost of fabrics (exclusive of all findings and aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the US that were used in the production of trimmings) formed in the US that were used in the production of all those articles of that producer or that entity controlling all those articles of that producer or that entity controlling production that conform to the production standards set forth in production that conform to the production standards set forth in §10.243(a)(4) and that were entered during the immediately §10.243(a)(4) and that were entered during the immediately preceding year was at least 85% of the aggregate declared preceding year was at least 85% of the aggregate declared customs value of the fabric (exclusive of all findings and customs value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or trimmings) contained in all of those articles of that producer or that entity controlling production that conform to the production that entity controlling production that conform to the production standards set forth in §10.243(a)(4) and that were entered during standards set forth in §10.243(a)(4) and that were entered during that year.that year.

19 CFR 10.248(b)19 CFR 10.248(b) Limitations on Limitations on Preferential TreatmentPreferential Treatment

• ProducerProducer• Entity controlling productionEntity controlling production• Fabrics formed in the USFabrics formed in the US• CostCost• Declared customs valueDeclared customs value• YearYear• EnteredEntered

Brassieres-Brassieres-19 CFR 10.248(a)19 CFR 10.248(a) Definitions of TermsDefinitions of Terms


•ProducerProducer•IndividualIndividual

•CorporationCorporation

•PartnershipPartnership

•AssociationAssociation

•Other Entity or GroupOther Entity or Group

•Direct, Daily Control Over ProductionDirect, Daily Control Over Production

•In ATPDEA CountryIn ATPDEA Country


• Entity Controlling ProductionEntity Controlling Production• IndividualIndividual• CorporationCorporation• PartnershipPartnership• AssociationAssociation• Other Entity or GroupOther Entity or Group

• Not a ProducerNot a Producer• Controls Production in ATPDEA Country Controls Production in ATPDEA Country

through Contractual Relationship or through Contractual Relationship or other Indirect Methodother Indirect Method


• Fabrics Formed in the U.S.Fabrics Formed in the U.S.

• WeavingWeaving• KnittingKnitting• NeedlingNeedling• TuftingTufting• FeltingFelting• EntanglingEntangling• Other Formation ProcessOther Formation Process


• CostCost• Price of Price of U.S.-formedU.S.-formed fabrics when last fabrics when last

purchased FOB port of export, or with purchased FOB port of export, or with adjustments to reach a FOB priceadjustments to reach a FOB price

• If unable to determine FOB price, or If unable to determine FOB price, or price is determined to be price is determined to be unreasonable, then a Computed Value unreasonable, then a Computed Value equivalent for the fabrics plus costs equivalent for the fabrics plus costs representing freight, insurance, representing freight, insurance, packing, and other costs to get it to packing, and other costs to get it to port of exportport of export


• Cost ExamplesCost Examples– U.S. formed fabric, purchased FOB U.S. formed fabric, purchased FOB

MiamiMiami• Price paid is the “cost”Price paid is the “cost”

– U.S. formed fabric, purchased on U.S. formed fabric, purchased on the local (ATPDEA) marketthe local (ATPDEA) market• ““Cost” is price paid, minus:Cost” is price paid, minus:

– freight and insurance, from U.S. to ATPDEA freight and insurance, from U.S. to ATPDEA countrycountry

– duty paid at entry to ATPDEA countryduty paid at entry to ATPDEA country– mark-upmark-up– etc.etc.


• Declared Customs ValueDeclared Customs Value

•Cost of U.S. Formed Fabric, plusCost of U.S. Formed Fabric, plus•Cost of All Non-U.S.-Formed Cost of All Non-U.S.-Formed Fabric Contained in ArticleFabric Contained in Article

•Value of Findings/Trimmings Value of Findings/Trimmings notnot IncludedIncluded

•Each Figure Must be VerifiableEach Figure Must be Verifiable

BrassieresBrassieres

• In first year, only requirement is that the bras be In first year, only requirement is that the bras be cut and sewn or otherwise assembled in the US cut and sewn or otherwise assembled in the US or ATPDEA beneficiary countries or both (no US or ATPDEA beneficiary countries or both (no US fabric content required for duty free treatment) fabric content required for duty free treatment)

• Beginning Oct. 1, 2003, requirement that in the Beginning Oct. 1, 2003, requirement that in the preceding year, the aggregate cost of US fabrics preceding year, the aggregate cost of US fabrics used in the production of a producer’s or entity’s used in the production of a producer’s or entity’s bras was at least 75% of aggregate declared bras was at least 75% of aggregate declared customs value of the fabric in all bras of that customs value of the fabric in all bras of that producer or entity that were entered and eligible producer or entity that were entered and eligible under this provision in preceding 1-year periodunder this provision in preceding 1-year period

• If fail to meet requirement, 85% US fabric If fail to meet requirement, 85% US fabric requirement is imposedrequirement is imposed

19 CFR 10.243(a)(4); 19 CFR 10.248(b)19 CFR 10.243(a)(4); 19 CFR 10.248(b)

Andean Trade Promotion and Drug Eradication ActDeclaration of Compliance for Brassieres

(19 CFR 10.243(a)(4) and 10.248)1. Year beginning date: October 1, . Year ending date: September 30, .

Official U.S. Customs Use Only Assigned number: ___________ Assignment date: ___________

2. Identity of preparer (producer or entity controlling production):

Full name and address: Telephone number: __________ Facsimile number: __________ Importer identification number: ________

3. If the preparer is an entity controlling production, provide the following for each producer:

Full name and address: Telephone number: __________ Facsimile number: ___________

4. Aggregate cost of fabrics formed in the United States that were used in the production of brassieres that were entered during the year: _________

5. Aggregate declared customs value of the fabric contained in brassieres that were entered during the year: _________

6. I declare that the aggregate cost of fabric formed in the United States was at least 75 percent (or 85 percent, if applicable under 19 CFR 10.248(b)(1)(ii)) of the aggregate declared customs value of the fabric contained in brassieres entered during the year.7. Authorized signature:

Date:

8. Name and title (print or type):

Declaration of ComplianceDeclaration of Compliance

1.1. Year Commencing October 1, Ending Year Commencing October 1, Ending September 30 of Calendar Year in September 30 of Calendar Year in Which Applicable % Standard was MetWhich Applicable % Standard was Met

2.2. Legal Name and Address of the Legal Name and Address of the Preparer, Including Preparer’s I.R. Preparer, Including Preparer’s I.R. Number, if ApplicableNumber, if Applicable

3.3. Legal Name(s) and Address(es) of Legal Name(s) and Address(es) of ATPDEA Producer, if not Already ATPDEA Producer, if not Already Identified in Block 2Identified in Block 2

4.,5.4.,5. Related to Goods Entered During Year in Related to Goods Entered During Year in Block 1Block 1

6.6. Declare Standard: 75% or 85%Declare Standard: 75% or 85%

7.7. Signature of Authorized, Knowledgeable Signature of Authorized, Knowledgeable PersonPerson

Preference Group G-Preference Group G-SummarySummary

• Brassieres assembled in the US and/or one or more ATPDEA beneficiary countries

• 9821.11.19, HTSUS9821.11.19, HTSUS

• 19 CFR 10.243(a)(4)19 CFR 10.243(a)(4)

Example 7Example 7

• A Producer in an ATPDEA Country:A Producer in an ATPDEA Country:– In Single Calendar Year, Sends Entire In Single Calendar Year, Sends Entire

Production of Goods meeting 10.243(a)(4) to Production of Goods meeting 10.243(a)(4) to the U.S.the U.S.

– Consists of Two ShipmentsConsists of Two Shipments• Shipment 1 does not Meet 75% StandardShipment 1 does not Meet 75% Standard• Shipment 2 Exceeds 85% StandardShipment 2 Exceeds 85% Standard

– Shipment 1 is Entered on March 1Shipment 1 is Entered on March 1– Shipment 2 is Entered into a Warehouse and Shipment 2 is Entered into a Warehouse and

not Withdrawn for Consumption until not Withdrawn for Consumption until November 1November 1

• For that Calendar Year, Can the For that Calendar Year, Can the Producer Complete a Valid Producer Complete a Valid Declaration of Compliance?Declaration of Compliance?

Preference Group HPreference Group H

• Textile luggage• Assembled in ATPDEA beneficiary

country• Fabric/components wholly formed in

US• Yarn wholly formed in US• Entered under 9802.00.8048 and Entered under 9802.00.8048 and

9821.11.22, HTSUS9821.11.22, HTSUS

Cut in One or More ATPDEA Cut in One or More ATPDEA CountriesCountries

All fabric components used in the assembly of the article were cut from fabric in one or more ATPDEA countries, or were cut from fabric in the United States and used in a partial assembly of the article in one or more ATPDEA beneficiary countries, or both.

19 CFR 10.242

Luggage-19 CFR 10.242Luggage-19 CFR 10.242

Travel goods, such as trunks, hand trunks, lockers, valises, satchels, suitcases, wardrobe cases, overnight bags, pullman bags, gladstone bags, traveling bags, knapsacks, kitbags, haversacks, duffel bags, and like articles designed to contain clothing or other personal effects during travel; and

Briefcases, portfolios, school bags, photographic equipment bags, golf bags, camera cases, binocular cases, gun cases, occupational luggage cases (physicians’ cases, sample cases, etc.), And like containers and cases designed to be carried with the person.

Luggage-19 CFR 10.242Luggage-19 CFR 10.242 (Continued)(Continued)

Luggage does not include the following:“Handbags” which include pocketbooks, purses,shoulder bags, clutch bags, and all similar articles, by whatever name known, customarily carried by women or girls; or,“Flat goods” which includes small flatware designed to be carried on the person, such as banknote cases, bill cases, billfolds, bill purses, bill rolls, card cases, change cases, cigarette cases, coin purses, coin holders, compacts, currency cases, key cases, letter cases, license cases, money cases, pass cases, passport cases, powder cases, spectacle cases, stamp cases, vanity cases, tobacco pouches and similar articles.

Textile LuggageTextile Luggage

• Textile luggage satisfying the Textile luggage satisfying the criteria for eligibility will not be criteria for eligibility will not be precluded from receiving precluded from receiving preferential treatment because it preferential treatment because it incorporates foreign-made non-incorporates foreign-made non-textile components. Example: textile components. Example: leather handleleather handle

• However, foreign-origin findings However, foreign-origin findings and trimmings are subject to the and trimmings are subject to the 25% cost limitation. 25% cost limitation.

Example: zipperExample: zipper

Preference Group H-Preference Group H-SummarySummary

• Textile luggage assembled in ATPDEA Textile luggage assembled in ATPDEA beneficiary country from US fabric and yarnbeneficiary country from US fabric and yarn

• 9802.00.8048 (US fabric cut in US) and 9802.00.8048 (US fabric cut in US) and 9821.11.22 (US fabric cut in 1 or more 9821.11.22 (US fabric cut in 1 or more ATPDEA beneficiary country)ATPDEA beneficiary country)

• 19 CFR 10.243(a)(5)&(6)19 CFR 10.243(a)(5)&(6)

• Apparel sewn or otherwise assembled in 1 or more ATPDEA beneficiary countries from ATPDEA formed fabrics or components

• US or ATPDEA wholly Formed yarn

• Whether or not in Combination with Groupings A-D

• Subject to tariff preference level (TPL)• Entered under 9821.11.25, HTSUSEntered under 9821.11.25, HTSUS

Preference Group IPreference Group I

Assembled from Regional Assembled from Regional FabricFabric

Apparel articles assembled in 1 or more ATPDEA beneficiary countries from ATPDEA fabrics or components, from yarns wholly formed in the US or 1 or more beneficiary countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in 1 or more beneficiary countries), whether or not the apparel articles are also made from any of the fabrics or components described in groupings A - D 19 CFR 10.243(a)(7)

Preference Group I-Preference Group I-SummarySummary

• Apparel assembled in ATPDEA beneficiary Apparel assembled in ATPDEA beneficiary countries from ATPDEA fabric/components countries from ATPDEA fabric/components from US/ATPDEA yarn, whether or not in from US/ATPDEA yarn, whether or not in combination with groupings A-Dcombination with groupings A-D

• 9821.11.25, HTSUS9821.11.25, HTSUS• 19 CFR 10.243(a)(7)19 CFR 10.243(a)(7)

Example 8Example 8

•100% linen fabric imported from 100% linen fabric imported from IrelandIreland

•100% cotton voile fabric woven in 100% cotton voile fabric woven in Colombia from yarn wholly formed in Colombia from yarn wholly formed in ColombiaColombia

•Fabric cut into components in PeruFabric cut into components in Peru•Components assembled in Ecuador to Components assembled in Ecuador to form linen blouse with sheer cotton form linen blouse with sheer cotton voile sleevesvoile sleeves

Andean Trade Promotion and Drug Eradication ActTextile Certificate of Origin

1. Exporter Name & Address:

2. Producer Name & Address:

3. Importer Name & Address:

4. Description of Article:

5. Preference Group:

Group Each description below is only a summary of the cited CFR provision. 19 CFR

A.Apparel assembled from U.S. formed, dyed, printed and finished fabrics orfabric components, or U.S. formed knit-to-shape components from U.S. orAndean yarns.

10.243(a)(1)(i)

B.Apparel assembled from Andean chief value llama, alpaca or vicuña fabrics,fabric components, or knit-to-shape components, from Andean yarns.

10.243(a)(1)(ii)

C.Apparel assembled from fabrics or yarns considered as being in short supplyin the NAFTA.

10.243(a)(1)(iii)

D.Apparel assembled from fabrics or yarns designated as not available incommercial quantities in the United States.

10.243(a)(1)(iv)

E.Apparel assembled from a combination of two or more yarns, fabrics, fabriccomponents, or knit-to-shape components described in preference groups Athough D.

10.243(a)(2)

F. Handloomed, handmade, or folklore textile and apparel goods. 10.243(a)(3)

G.Brassieres assembled in the U.S. and/or one or more Andean beneficiarycountries.

10.243(a)(4)

H. Textile luggage assembled from U.S. formed fabrics from U.S. yarns. 10.243(a)(5)&(6)

I.

Apparel assembled from Andean formed fabrics, fabric components, or knit-to-shape components from U.S. or Andean yarns, whether or not alsoassembled, in part, from yarns, fabrics and fabric components described inpreference groups A through D.

10.243(a)(7)

6. U.S./Andean Fabric Producer Name &Address:

7. U.S./Andean Yarn Producer Name & Address:

8. Handloomed, Handmade, or Folklore Article: 9. Name of Short Supply Fabric or Yarn:

I certify that the information on this document is complete and accurate and I assume theresponsibility for proving such representations. I understand that I am liable for any falsestatements or material omissions made on or in connection with this document. I agree tomaintain, and present upon request, documentation necessary to support this certificate.

10. Authorized Signature: 11. Company:

12. Name: (Print or Type) 13. Title:

14. Date: (DD/MM/YY) 15. Blanket PeriodFrom: To:

16: Telephone: Facsimile:

Special RulesSpecial Rules

•Findings & trimmingsFindings & trimmings•Certain interliningsCertain interlinings•De minimisDe minimis•Nylon filament yarnNylon filament yarn

Findings and TrimmingsFindings and Trimmings

• General ruleGeneral rule– Apparel article eligible for preferential Apparel article eligible for preferential

treatment under ATPDEA treatment under ATPDEA – Findings or trimmings of foreign origin can be Findings or trimmings of foreign origin can be

included included – IF the value of such findings and trimmings IF the value of such findings and trimmings

does not exceed 25%does not exceed 25% of the cost of the of the cost of the components of the assembled article. components of the assembled article.

$ $ $ $ $$ $ $


• General rule– An article otherwise eligible for preferential

treatment under this section will not be ineligible for such treatment because the article contains findings or trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25% of the cost of the components of the assembled article.

19 CFR 10.243(c)(1)(i)(a)


• Findings - sewing essentials Findings - sewing essentials used in garmentsused in garments

• Trimmings- decorative or Trimmings- decorative or ornamental partsornamental parts


• Examples:Examples:– Sewing threadSewing thread– Hooks and eyesHooks and eyes– SnapsSnaps– ButtonsButtons– ““Bow buds”Bow buds”– Decorative lace trimDecorative lace trim– Zippers, zipper tapesZippers, zipper tapes– LabelsLabels– Elastic stripsElastic strips

Qualifying Qualifying Findings and TrimmingsFindings and Trimmings

• Reinforcing tape --analogous to zipper tape, a necessity in constructing a garment

• Embroidery thread, button tacks, and bias tape -- analogous to sewing thread, buttons and zipper tape

• “Tommy Hilfiger” patch sewn onto jeans -- is an example of a small textile ornamentation

• “Pooh” patch-- symbolized brand And adds ornamentation

Not Considered Not Considered Findings and TrimmingsFindings and Trimmings

• Velveteen upper collar of women’s jacket • Shoulder pads and sleeve headers for

men’s suit-type jacket • Textile drawstring cord for jackets • Chest pieces, suede yoke and elbow

patches for men’s jackets -- yoke and elbow patches comprised a relatively large surface area and served more than mere decorative purpose unlike lace trim

Certain InterliningsCertain Interlinings

• General ruleGeneral rule– Apparel article eligible for preferential Apparel article eligible for preferential

treatment under APTDEA treatment under APTDEA – Certain interlinings of foreign origin can be Certain interlinings of foreign origin can be

included included – IF the IF the value of such value of such interlinings (And any (And any

foreign findings and trimmings) does not foreign findings and trimmings) does not exceed 25%exceed 25% of the cost of the components of of the cost of the components of the assembled articlethe assembled article

$ $ $ $ $$ $ $


• General rule– An article otherwise eligible for preferential

treatment under this section will not be ineligible for such treatment because the article contains certain interlinings of foreign origin, if the value of those interlinings (And any foreign findings and trimmings) does not exceed 25% of the cost of the components of the assembled article

19 CFR 10.243(c)(1)(i)(b)

““Interlining”Interlining”

A fabric placed between the lining and the outer fabric of a garment as a stiffening, to give the garment shape or as padding, for extra warmth. Many different fabrics of various fibers are used, e.G., Canvas, crinoline, haircloth, flannel, padding, quilted fabric, batting webs and non-woven fabrics.

Fairchild’s dictionary of textiles


• Eligible interliningsEligible interlinings– TypeType

• Chest type plateChest type plate• Hymo pieceHymo piece• Sleeve headerSleeve header

– ConstructionConstruction• Of woven or weft-inserted warp knit Of woven or weft-inserted warp knit

constructionconstruction• Of coarse animal hair or man-made Of coarse animal hair or man-made

filamentsfilaments

De Minimis RuleDe Minimis Rule

• An article otherwise eligible for preferential treatment under this section will not be ineligible for such treatment because the article contains yarns not wholly formed in the US or one or more ATPDEA beneficiary countries if the total weight of all those yarns is not more than 7% of the total weight of the article.

19 CFR 10.243(c)(1)(i)(d)

De Minimis RuleDe Minimis Rule

• “Very small matter”• Small percentage of total weight of

the good can be of foreign yarns• 7% maximum limit

De Minimis Rule - ExampleDe Minimis Rule - Example

• Brown wool yarn formed in US• White wool yarn formed in India• Wool fabric woven in Peru from brown

yarn and small amount of white yarn (a decorative yarn--only comprises 5% of weight of fabric)

• Wool fabric is cut and sewn into a jacket in Peru

De Minimus Rule - ExampleDe Minimus Rule - Example

• Rayon fabric formed in US from US yarns• Rayon fabric cut into front and back panels

for women’s shirt to be assembled in Colombia

• Sheer polyester fabric formed in China• Sheer polyester fabric cut into cap sleeves in

Colombia (the cap sleeves are 1 % by weight of the total weight of the textiles in the shirt.

• Shirt wholly assembled in Colombia

Special Rule for Certain Special Rule for Certain Nylon Filament YarnsNylon Filament Yarns

• Apparel provided for in provisions requiring use of US formed fabric or components will not be ineligible for preferential treatment because the apparel contains specified nylon filament yarn (other than elastomeric yarn) that entered the U.S. Duty free from Israel (under U.S.-Israel free trade agreement), or Canada or Mexico (under NAFTA)

• 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5403.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00 Or 5402.61.00, HTSUS 19 CFR 10.243(c)(2)

(Other Than (Other Than Elastomeric Yarn)Elastomeric Yarn)

• Elastomeric yarn = filament yarn, including monofilament, of synthetic textile material, other than textured yarn, which does not break on being extended to three times its original length and which returns, after being extended to twice its original length, within a period of five minutes, to a length not greater than one and a half times its original length. Subheading note 1(a), section XI

• Covers all forms of elastomeric yarn • Amount of elastomeric content within a yarn does not matter

ATPDEAQuestions

ATPDEA Question 1ATPDEA Question 1

A knit shirt is assembled in Peru using 100% alpaca fabric, which was formed in the U.S. with alpaca yarns from Bolivia. Knit-to-shape collars and cuffs for the shirts are made in Peru using the same Bolivian alpaca yarns. The knit fabric for the shirt is cut and assembled in Peru. The finished shirts are dyed and finished in Peru. After completion, the shirts are exported to the U.S.

Are these shirts eligible for ATPDEA treatment and under what grouping?

ATPDEA Question 1 - ATPDEA Question 1 - AnswerAnswer

YES! Grouping E

The shirt is made U.S. fabric, from ATPDEA yarns. The knit-to-shape collars and cuffs were made in APTDEA country using ATPDEA yarns.

The shirts are garment dyed, thus the dyeing printing provision would not apply.

ATPDEA Question 2ATPDEA Question 2

Knitted tracksuits are cut and assembled in Colombia from knitted nylon fabric formed in the U.S. with nylon filament yarns that were formed either in the U.S. or Canada and if yarns were imported they were classified under 5402.10.30. The tracksuit also contains woven pocketing fabric which is woven in Colombia using U.S. formed cotton yarns. After completion, the tracksuits are exported to the U.S. Are these tracksuits eligible for ATPDEA treatment and under what grouping?

ATPDEA Question 2 - ATPDEA Question 2 - AnswerAnswer

YES! Grouping I

The tracksuits are made from fabric formed in the U.S. using nylon filament yarns either made in the U.S. or made in Canada (using the exception for nylon filament yarn) that is permitted.

The pocketing fabric is woven in Colombia using U.S. formed yarns.

Customs Regulations

• Issues regarding the interpretation and implementation of the ATPDEA are addressed in the interim regulations published in the federal register (68 FR 14478) on march 25, 2003.

http://www.cbp.gov

Request a Binding Ruling

• Binding on U.S. Customs & border protection

• Provides certainty • Ruling is

Free

U.S. Customs & Border Protection

Office of Regulations & Rulings

Commercial Rulings Division, Mint Annex

1300 Pennsylvania Ave. NW

Washington, DC 20229

http://www.cbp.gov

Write to:

ATPDEA Information on the Internet

• Duty rates (HTS) www.usitc.gov• Customs & BP www.cbp.gov• Textile trade data

www.otexa.ita.doc.gov• U.S. Trade rep www.ustr.gov

Questions?Questions?

Elise ShiblesInternational Trade Specialist

US Customs & Border ProtectionTextile Policy Branch

1300 Pennsylvania Ave. NW, 4.2EWashington, DC 20229

tel. (202) 927-1249 fax (202)927-0308

[email protected]

Kelly HermanAttorney Advisor

US Customs & Border ProtectionOffice of Rulings and Regulations

1300 Pennsylvania Ave. NWWashington, DC 20229

tel. (202) 572-8713fax (202) 572-8799

[email protected]

Thank YouThank You

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