CBP Notices on 2006 U.S.-Chile FTA "3rd Country" TPLs for Certain Cotton/MMF Apparel and Fabric
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U.S. Customs and Border Protection (CBP) has issued separate notices on the U.S.-Chile Free Trade Agreement's (UCFTA, or CFTA) 2006 Tariff Preference Levels (TPLs) for imports from Chile of certain cotton and man-made fiber (MMF) apparel goods and certain cotton/MMF fabric goods, as described below.
These UCFTA TPLs are temporary provisions provided in HTS Chapter 99, Subchapter XI, U.S. Notes 22 and 23 for the years 2004 - 2015.
According to the UCFTA, goods in these TPLs that meet the applicable UCFTA conditions for preferential treatment other than the condition that they be originating goods, are accorded UCFTA preferential treatment as if they were originating goods.
Details of "3rd Country" UCFTA TPL for Apparel
According to HTS Chapter 99, Subchapter XI, U.S. Note 23(a), the UCFTA TPL provided for in HTS 9911.99.40 is applicable to cotton or MMF apparel goods, or apparel goods subject to cotton or MMF restraints, that are both cut (or knit-to-shape) and sewn or otherwise assembled in Chile from fabric or yarn produced or obtained outside the territory of Chile or of the U.S., that are classifiable in the eight-digit HTS Chapters 61 and 62 tariff numbers specified in U.S. Note 23(a).
CBP states that the 2006 UCFTA TPL for apparel will open for 2,000,000 square meter equivalents (SME) on January 3, 2006 at 12:00 p.m. E.S.T., or its equivalent in other time zones, for exports during the period January 1, 2006 through December 31, 2006.
Details of "3rd Country" UCFTA TPL for Fabric
HTS Chapter 99, Subchapter XI, U.S. Note 22 describes the UCFTA TPL provided for in HTS 9911.99.20 for fabric goods as follows:
cotton or MMF fabric goods provided for in HTS Chapters 52, 54, 55, 58, and 60 that are wholly formed in Chile from yarn produced or obtained outside the territory of Chile or of the U.S.; and
cotton or MMF fabric goods provided for in Annex 4.1 (Specific Rules of Origin), that are wholly formed in Chile from yarn spun in the territory of Chile or of the U.S. from fiber produced or obtained outside the territory of Chile or of the U.S.
CBP states that the 2006 UCFTA TPL for fabric will open for 1,000,000 SME on January 3, 2006 at 12:00 p.m., E.S.T., or its equivalent in other time zones, for exports during the period January 1, 2006 through December 31, 2006.
Importer Certification Is Required for UCFTA TPLs for Apparel and Fabric
In its instructions for the 2006 UCFTA TPLs for apparel and for fabric, CBP also states that certification of eligibility is required for preferential tariff treatment under these provisions. A statement is required by the importer certifying and containing information demonstrating that the goods are eligible for the TPL at time of entry.
CBP notes that once the in-quota allocation for a UCFTA TPL is filled, goods will be allowed to enter at the General Column 1 rate of duty as noted in the HTS.
CBP Contact - Michelle Videlock (202) 344-2276
CBP notice on 2006 UCFTA TPL for apparel (QBT-05-063, dated 12/13/05) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2005/05_063.ctt/05_063.doc
CBP notice on 2006 UCFTA TPL for fabric (QBT-05-062, dated 12/13/05) available athttp://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2005/05_062.ctt/05_062.doc
BP Note
According to CBP's December 12, 2005 weekly quota commodity report, the 2005 UCFTA TPL for apparel is 6.04% filled and the 2005 UCFTA TPL for fabric is 0% filled.