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USTR Lists Nigeria as Eligible for AGOA Textile and Apparel Benefits

The Office of the U.S. Trade Representative (USTR) has issued a notice announcing its determination that Nigeria (1) has adopted an effective visa system and related procedures to prevent unlawful transshipment and the use of counterfeit documents in connection with shipments of textile and apparel articles, and (2) has implemented and follows, or is making substantial progress toward implementing and following, the customs procedures required by the African Growth and Opportunity Act (AGOA). This determination is effective July 14, 2004.

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As result, imports of eligible textile and apparel articles from Nigeria qualify for AGOA duty-free treatment, effective for articles entered, or withdrawn from warehouse for consumption, on or after July 14, 2004.

(Importers claiming such preferential treatment should also ensure that such entries meet the applicable AGOA visa requirements.)

Since Nigeria is a lesser-developed AGOA beneficiary country, it is eligible for HTS 9819.11.12 (AGOA visa grouping 5) duty-free treatment for certain apparel articles wholly assembled, or 'knit-to-shape' and wholly assembled, or both, in one or more such lesser developed countries from "third country" fabric or yarn.

(Imports under HTS 9819.11.09 (AGOA visa grouping 4) and HTS 9819.11.12 (AGOA visa grouping 5) are subject to the aggregate AGOA tariff preference level (TPL, also referred to as a cap). Imports under HTS 9819.11.12 (AGOA visa grouping 5) are also subject to the aggregate AGOA TPL sublimit.)

The USTR's notice also amends HTS Chapter 98, Subchapter II, U.S. Note 7(a) and HTS Chapter 98, Subchapter XIX, U.S. Note 1 to reflect the USTR's determination that Nigeria is eligible for AGOA textile and apparel benefits.

CBP Must Issue Instructions Before Ports Will Accept Duty-Free or TPL Claims

Although the USTR has designated Nigeria as eligible for AGOA textile and apparel benefits effective as of July 14, 2004, U.S. Customs and Border Protection (CBP) has previously stated that it cannot accept (a) duty-free textile or apparel claims for Nigeria until CBP Headquarters has issued country-specific (i.e., Nigeria-specific) visa instructions to the ports, or (b) duty-free claims utilizing the AGOA TPL (under HTS 9819.11.09 and 9819.11.12) or its sublimit (under HTS 9819.11.12) until CBP Headquarters has issued TPL-specific instructions to the ports.

Sources have stated that CBP Headquarters usually issues these instructions to the ports sometime after the Federal Register publication of the USTR listing. In addition, the ports often get these instructions days before they are made publicly available via administrative messages and/or posting to CBP's Web site.

Nigeria joins Benin, Botswana, Cameroon, Cape Verde, Cote d'Ivoire, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda and Zambia as AGOA beneficiary countries that have been determined to be eligible for AGOA textile benefits.

USTR contact - Patrick Coleman (202) 395-9514

USTR notice (FR Pub 07/14/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-15858.pdf