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CBP Notice on Bahrain FTA TPL for Certain Textiles and Apparel

U.S. Customs and Border Protection (CBP) has issued a notice on the duty-free Bahrain Free Trade Agreement (BFTA) tariff preference level (TPL) for certain non-originating textiles and apparel, as provided for in HTS Chapter 99, Subchapter XIV, U.S. Note 13. CBP has also issued a second notice for certain apparel ensembles under this TPL.

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CBP states that the HTS Chapter 99 tariff number for this TPL is 9914.99.20, and '"BH" is the primary SPI indicator.

Bahrain FTA Textile and Apparel TPL is for a Ten Year Period

According to CBP, the 2006 Bahrain FTA TPL is for the period of August 1, 2006 - December 31, 2006, and opened on August 1, 2006 at 1:00 p.m., EDT or its equivalent in other time zones. The TPL limit for this five month time period is 27,083,333 square meter equivalents (SME).

(U.S. Note 13 and a USTR Fact Sheet also indicate that the annual TPL limit for each calendar year from 2007 through 2015 is 65 million SME. The USTR's Fact Sheet also states that after this TPL expires on December 31, 2015, all textile and apparel trade under the Bahrain FTA must adhere to the yarn-forward rule of origin.)

Four 'Groups' of Non-Originating Textiles and Apparel Eligible for TPL

In addition, HTS Chapter 99, Subchapter XIV, U.S., Note 13 indicates that four groups (A - D) of non-originating textiles and apparel can qualify for this TPL, as follows:

Group A (Cotton/MMF Fabric) - cotton or man-made fiber (MMF) fabric goods provided for in HTS Chapters 52, 54, 55, 58, and 60 that are wholly formed in Bahrain from yarn produced or obtained outside of Bahrain or the U.S.

Group B (Cotton/MMF Fabric)- cotton or MMF fabric goods provided for in approximately 79 specified six- and eight- digit headings in HTS Chapters 58 and 60 that are wholly formed in Bahrain from yarn spun in Bahrain or the U.S. from fiber produced or obtained outside of Bahrain or the U.S.

Group C (Cotton/MMF Apparel)- cotton or MMF apparel goods provided for in HTS Chapters 61 or 62 that are cut or knit to shape, or both, and sewn or otherwise assembled in Bahrain from fabric or yarn produced or obtained outside of Bahrain or the U.S.

(In a separate notice, CBP states that whenever goods are classified under this TPL as ensembles in combination with certain knit or woven apparel (see CBP's list of 8-digit tariff numbers), the reporting number shall be for the specific component apparel article in the ensemble, and not the ensemble number. Each specific apparel article in the ensemble must be identified separately with a corresponding HTS 9914.99.20.)

Group D (Cotton/MMF Made-Up Goods) - cotton or MMF made-up goods provided for in specified tariff numbers in HTS Chapter 63 that are cut or knit to shape, or both, and sewn or otherwise assembled in Bahrain from fabric wholly formed in Bahrain or the U.S. from yarn produced or obtained outside of Bahrain or the U.S.

Non-ABI Entry Required Until Further Notice

Due to ongoing system programming for the Bahrain FTA, CBP states that ABI transmission of entries for eligible goods is not available at this time. Filers are required to file non-ABI until further notice.

Ports to Release Goods, But Hold Off Charging TPL Until ABI Programming Completed

CBP states that the ports must hold entries subject to this BFTA TPL until ABI programming is completed. Once completed, ports and the trade community will be notified and the ports can process the entries through the ACS quota module.

CBP contact: Michelle Vidlock (202) 344-2276

CBP QBT-06-023, listing eligible tariff numbers (dated 07/31/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2006/06_023.ctt/06_023.doc

CBP QBT-06-024 on ensembles (dated 07/31/06) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2006/06_024.ctt/06_024.doc

USTR Fact Sheet on BFTA Textiles available at http://www.ustr.gov/assets/Trade_Agreements/Bilateral/Bahrain_FTA/Briefing_Book/asset_upload_file123_7949.pdf

BP Note

According to CBP sources, QBT-06-23 was re-posted (but not re-numbered) in order to correct the subject line text to state "non-originating" and to remove an extra digit at the end of the listed TPL quantity.