CBP Issues Instructions on Retroactive DR-CAFTA Benefits for Guatemala Textile and Apparel Goods
U.S. Customs and Border Protection (CBP) has issued a textile bulletin which contains instructions on the retroactive application of the preferential tariff provisions of the U.S. - Dominican Republic - Central America Free Trade Agreement (DR-CAFTA) to qualifying textile or apparel goods of Guatemala that were entered or withdrawn from warehouse for consumption on or after January 1, 2004 and before July 1, 2006, the DR-CAFTA's effective date for Guatemala.
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.
(See ITT's Online Archives or 07/17/06 news, 06071710 for BP summary of earlier USTR notice naming Guatemala as eligible for these retroactive benefits effective July 14, 2006.)
Requirements for Textile & Apparel from Guatemala 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 Guatemala 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 Guatemala, Nicaragua, Honduras, and El Salvador and 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 as duty free and refund any excess duties paid with interest. Liquidation or reliquidation of goods from the eligible countries 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. Additionally, there must be sufficient information for CBP to determine that the good would have qualified for the DR-CAFTA had it been entered after the date of entry into force of the DR-CAFTA for that country.
Protest procedures. Any protests made for entries qualifying for DR-CAFTA for textile and apparel goods entered between January 1, 2004 to June 30, 2006 must cite the regulation 19 CFR 10.699. Any entries qualifying for DR-CAFTA that are made on or after July 1, 2006 would not be eligible for protest under 19 CFR 10.699, but must be submitted under the normal protest procedures.
Certain originating goods from El Salvador, Nicaragua, or Honduras. CBP notes that originating goods from El Salvador, with raw materials from Guatemala entered during March 1, 2006 through June 30, 2006, and originating goods from Nicaragua or Honduras with raw materials from Guatemala, entered April 1,2006 through June 30, 2006, are not eligible for CAFTA-DR retroactive treatment.
(See ITT's Online Archives or 04/17/06 news, 06041710 for BP summary of similar CBP instructions for Nicaragua and Honduras. See ITT's Online Archives or 03/09/06 news, 06030915 for similar BP summary for El Salvador. See ITT's Online Archives or 03/07/06 news, 06030705, for BP summary of CBP interim rule on DR-CAFTA retroactive textile and apparel benefits and USTR notice granting retroactive textile benefits to El Salvador.
See ITT's Online Archives or 07/06/06 and 07/14/06 news, 06070610 and 06071405 for two-part BP summary on proclamation implementing the CAFTA-DR for Guatemala.)
CBP Contact - Ms. Jacqueline Sprungle (202) 344-2277
CBP Memorandum (TBT-06-016, dated 07/21/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/tbt2006/tbt_06_016.ctt/tbt_06_016.doc
BP Note
The DR-CAFTA is also referred to as "CAFTA-DR".