CBP Issues Final Rule on ATPDEA Trade Benefits (Part II)

(The ATPDEA currently applies to the Andean countries of Bolivia, Colombia, Ecuador, and Peru.)

This is Part II of a multipart series of BP summaries of this final rule, and highlights CBP's responses to various comments submitted on the 2003 interim rule. (See ITT's Online Archives or 09/07/06 news, 06090705 for Part I.)

Highlights of CBP's responses to comments submitted on the 2003 interim rule include the following:

U.S. Fabric Portion of "Hybrid" Regional/U.S. Apparel Must be Dyed, Printed, Finished in U.S.

In response to a commenter who argued that the U.S. dyeing, printing and finishing requirement should not apply to any U.S. knit or woven fabric/fabric components used in "hybrid" regional/U.S. apparel (apparel made with Andean formed fabrics, fabric components, or knit-to-shape components, whether or not also assembled, in part, with U.S. fabrics, fabric components, or knit-to-shape components), CBP clarified that while U.S. knit-to-shape components of such hybrid apparel do not have to be dyed, printed, and finished in the U.S., any U.S. fabric or fabric components of such hybrid apparel require it.

If "Short Supply" Fabric Determines Essential Character of Garment, Remaining Fabric Must Still be Originating

Another commenter cited language in the Conference Report to the Trade Act of 2002 as stating that when the short supply fabric determines the essential character of an apparel article, the remaining fabrics used in the apparel article may originate from anywhere; however, CBP states that the authority to designate short supply fabrics was delegated by the President to the Committee for the Implementation of Textile Agreements (CITA). As a result, CITA's language in its Federal Register short supply notices, that apparel incorporating short supply fabrics designated by CITA must use fabrics wholly formed in the U.S. from yarns wholly formed in the U.S. for all other fabric components prevails.

Findings and Trimmings, Elastic Strips, Brassiere Straps

In response to comments, CBP states that the foreign origin "findings and trimmings" exception should be limited to the examples in 19 CFR 10.243 (c)(1)(A) as well as items closely analogous to the cited examples. (The cited examples are: sewing thread, hooks and eyes, snaps, buttons, bow buds, decorative lace trim, elastic strips, zippers (including zipper tapes), and labels.)

With respect to elastic strips, CBP states that in future considerations of whether particular items qualify as "elastic strips" under the ATPDEA "findings and trimmings" exception, CBP will not disqualify an item solely because it is an inch or more in width and used in the production of garments other than brassieres. Furthermore, CBP will not construe 'elastic strips' as encompassing only narrow elastic fabric strips or only non-textile (e.g. rubber) strips.

CBP also states that elastic fabric strips used to provide secure fittings in the leg and arm openings of garments qualify as findings under the ATPDEA. CBP states that whether elastic fabric strip used in waistbands would qualify as findings will be determined by the CBP ruling process.

With respect to brassiere straps, CBP believes that consistent with HQ 562018, brassiere straps, whether made of fabric or a non-textile material, do not qualify as 'findings or trimmings' for purposes of the ATPDEA.

Interlinings

In response to a comment, CBP states that it does not have the authority to allow the use of foreign (third country) interlinings beyond the three named and described (chest type plate, hymo piece, and sleeve header) in the ATPDEA. The use of other foreign interlinings in apparel articles, regardless of the amount, will preclude preferential treatment under the ATPDEA.

(See ITT's Online Archives or 04/15/03 news 03041520 for Part VI, the final part of BP's series of summaries of the interim rule, with links to Parts I - V.)

CBP final rule on ATPDEA (CBP Dec. 06-21), FR Pub 08/07/06, available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-6741.pdf