CBP Posts Guidance on Israel/Jordan/Egypt FTAs and/or QIZ Programs for Textiles
U.S. Customs and Border Protection (CBP) has posted guidance on the Israel and Jordan free trade agreements (FTAs) and the U.S.-Israel FTA Qualified Industrial Zone (QIZ) programs with Jordan and Egypt that it provides to field Import Specialists.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Agreements and programs that do not follow tariff-shift rules. CBP states that the following agreements and preference programs are not based on tariff-shift rules:
Israel FTA
- Jordan QIZ
- Egypt QIZ
Jordan FTA
African Growth and Opportunity Act (AGOA)
U.S.-Caribbean Basin Trade Partnership Act (CBTPA)
Andean Trade Promotion and Drug Eradication Act (ATPDEA)
U.S.-Israel FTA. The following are highlights of CBP's information on the U.S.-Israel FTA:
effective September 1, 1985 and has no expiration date
provided for in Harmonized Tariff Schedule (HTS) General Note 8
No Chapter 98 or 99 HTS numbers
Israel rule of origin:
- "product of " Israel - cutting (former 19 CFR 12.130, now 19 CFR 102.22)
- 35% value added in Israel, Gaza Strip, or West Bank or QIZ [or double substantial transformation]
- may include a 15% or less U.S. content in order to meet the 35% value added
Jordan QIZ. The following are highlights of CBP's information on the Jordan QIZ:
effective November 21, 1996 and has no expiration date
provided for in HTS General Note 3(a)(v)
No Chapter 98 or 99 HTS numbers
Jordan QIZ rule of origin:
- "product of " Jordan - assembly or knitting to shape (19 CFR 102.21)
- 35% value added in Israel, Gaza Strip, West Bank or Jordan QIZ (or double substantial transformation)
- may include a 15% or less U.S. content in order to meet the 35% value added
- Israel and Jordan assure their agreed amount of Israeli content is present, not CBP
Egypt QIZ. The following are highlights of CBP's information on the Egypt QIZ:
effective December 29, 2004 and has no expiration date
provided for in HTS General Note 3(a)(v)
No Chapter 98 or 99 HTS numbers
Egypt QIZ rule of origin:
- "product of " Egypt - assembly or knitting to shape (19 CFR 102.21)
- 35% value added in Israel, Gaza Strip, West Bank or Egypt QIZ (or double substantial transformation)
- may include a 15% or less U.S. content in order to meet the 35% value added
- Israel and Egypt assure their agreed amount of Israeli content is present, not CBP
U.S.-Jordan FTA. The following are highlights of CBP's information on the U.S.-Jordan FTA:
effective December 17, 2001 and has no expiration date
provided for in HTS General Note 18
No Chapter 98 or 99 HTS numbers
Rule of origin:
- "product of " Jordan - assembly or knitting to shape (19 CFR 102.21)
- 35% value added in Jordan (or double substantial transformation)
- may include a 15% or less U.S. content in order to meet the 35% value added
Jordan FTA vs. Jordan QIZ. CBP makes the following comparison between the Jordan FTA and Jordan QIZ:
QIZ - immediately duty-free on everything
FTA - staged reduction of duty for some products
CBP March 2006 guidance (posted 04/17/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/fta_training/isreal_jordon.ctt/israel_jordan.pdf.