CBP Issues Instructions on Retroactive DR-CAFTA Benefits for El Salvador Textile and Apparel Goods
U.S. Customs and Border Protection (CBP) has issued a memorandum which contains instructions on the retroactive application of the preferential tariff provisions1 of the U.S. - Dominican Republic - Central America Free Trade Agreement (DR-CAFTA) to qualifying textile or apparel goods of eligible DR-CAFTA countries that were entered or withdrawn from warehouse for consumption on or after January 1, 2004 and before March 1, 2006, the DR-CAFTA's effective date for El Salvador, which is currently the only country to which such benefits apply.
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As countries other than El Salvador become eligible for retroactive DR-CAFTA benefits, CBP will notify the trade. (See ITT's Online Archives or 03/07/06 news, 06030705, for BP summary of CBP interim rule providing DR-CAFTA retroactive textile and apparel benefits, and USTR notice granting retroactive textile benefits to El Salvador.)
Requirements for Textile & Apparel from El Salvador to Qualify for Retroactive Treatment
According to CBP, textile and apparel goods will qualify for this treatment provided that they would have qualified as an originating good from El Salvador under the tariff shift rules in General Note 29, of the Harmonized Tariff Schedule (HTS). For purposes of General Note 29 and retroactive treatment, beneficiary country status is currently limited to El Salvador or the U.S.
CBP states that textile and apparel articles eligible for retroactive benefits are defined as the following:
HTS Chapters 50-63, Textile and Textile Articles
HTS 4202.12, 4202.22, 4202.32, or 4202.92, Textile Luggage and Handbags
HTS 6601, Umbrellas
HTS 7019, Glass Fibers and Articles thereof
HTS 9404.90, Pillows, Quilts, Comforters
Requests must be filed for liquidation or reliquidation by December 31, 2006. Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, CBP shall liquidate or reliquidate qualifying articles for preferential tariff treatment1 and refund any excess duties paid with interest. Liquidation or reliquidation of goods from El Salvador may be made only if a request is filed with CBP by December 31, 2006. The request must be filed at the port of entry and must contain sufficient information to enable CBP to locate the entry or reconstruct the entry if it cannot be located.
Protest procedures. Any protests made for El Salvador entries qualifying for DR-CAFTA for textile and apparel goods entered between January 1, 2004 to February 28, 2006 must cite the regulation 19 CFR 10.699. Any entries qualifying for DR-CAFTA that are made on or after March 1, 2006 would not be eligible for protest under 19 CFR 10.699, but must be submitted under the normal protest procedures.
1 With the exception of textile and apparel articles classified in 14 subheadings subject to DR-CAFTA staged duty rate reductions, the retroactive benefits are duty-free treatment. (The 14 subheadings are found in HTS Chapters 51, 52, and 94.)
(See ITT's Online Archives or 03/08/06 and 03/09/06 news, 06030805 and 06030910, for Parts I and II of CBP's implementing instructions for DR-CAFTA.)
CBP Contact - Ms. Jacqueline Sprungle (202) 344-2277
CBP Memorandum (TBT-06-005, dated 03/06/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/tbt2006/tbt_06_005.ctt/tbt_06_005.doc
BP Note
The DR-CAFTA is also referred to as "CAFTA-DR".