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AGOA TPL and "Third Country" Sublimit for FY 2011 Announced

The Committee for the Implementation of Textile Agreements has issued a notice announcing the fiscal year 2011 duty-free tariff preference level and lesser-developed beneficiary countries (LDBC) sublimit for certain apparel from African Growth and Opportunity Act (AGOA) beneficiary countries,1 as specified in HTS 9819.11.09 and 9819.11.12.

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TPL and Sublimit Period for Oct 1, 2010 thru Sept 30, 2011

For the period beginning on October 1, 2010, and extending through September 30, 2011, the TPL limit is 1,733,484,674 SME (HTS 9819.11.09 and 9819.11.12); the LDBC sublimit is 866,742,337 SME (HTS 9819.11.12).

9819.11.09: Apparel articles wholly assembled in one or more eligible AGOA beneficiary countries from fabric wholly formed in one or more eligible AGOA beneficiary countries from yarn originating either in the U.S. or one or more eligible AGOA beneficiary countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the HTS and are wholly formed and cut in one or more eligible AGOA beneficiary countries), or from components knit-to-shape in one or more eligible AGOA beneficiary countries from yarns originating in the U.S. or one or more eligible AGOA beneficiary countries or former AGOA beneficiary countries, or both, or apparel articles wholly formed on seamless knitting machines in an eligible AGOA beneficiary country from yarns originating in the U.S. or one or more eligible AGOA beneficiary countries or former eligible AGOA beneficiary countries, or both, whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in HTS Chapter 98, Subchapter XIX, U.S. note 2(e) (unless the apparel articles are made exclusively from any of the fabrics, fabric components formed, or components knit to shape described in such note), subject to the provisions of HTS Chapter 98, Subchapter XIX, U.S. Note 2. (This HTS number is available through September 30, 20152.)

9819.11.12: Apparel articles wholly assembled, or knit-to-shape and wholly assembled, or both, in one or more lesser developed eligible AGOA beneficiary countries, subject to the provisions of HTS Chapter 98, Subchapter XIX, U.S. Note 2, regardless of the country of origin of the fabric or the yarn used to make such articles. (This HTS number is available through September 30, 20122.)

Apparel articles entered in excess of this TPL and/or sublimit will be subject to otherwise applicable tariffs. Also note that certain documentation requirements may need to be met in order to utilize these Chapter 98 tariff numbers for duty-free treatment.

AGOA Set to Expire in September 2015

AGOA is scheduled to expire on September 30, 2015.

1The following AGOA beneficiary countries, as listed in HTS Chapter 98, Subchapter XIX, U.S. Note 1, are eligible for these Chapter 98 benefits: Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Ethiopia, The Gambia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, and Zambia.

2The TPL and sublimit were extended (and the sublimit increased) by the Tax Relief and Health Care Act of 2006 (Public Law (P.L.) 109-432). See ITT's Online Archives or 02/06/07 news, 07020610, for BP summary of the AGOA changes in P.L. 109-432.)

(Note that the HTS uses the terms “former beneficiary sub-Saharan African country(ies)” or “beneficiary sub-Saharan African country(ies)” while this ITT notice uses the terms former AGOA beneficiary country(ies) or AGOA beneficiary country(ies).

Also note that P.L. 109-432 also enacted a special rule to encourage the use (in least developed AGOA beneficiaries) of fabric made in AGOA beneficiary countries that is determined to be in “abundant supply.”)

CITA contact -- Don Niewiaroski (202) 482-4058