CBP Adds Flexibility for Records that Verify Trade Benefits for Textiles with U.S/Regional Materials
U.S. Customs and Border Protection has issued an update to its 2007 instructions on providing documents when CBP requests them that substantiate a claim that textiles and wearing apparel meet a preference program’s rules of origin. The update indicates that an affidavit from the raw material producer is no longer the only “primary” documentation that CBP will accept. In addition, a centralized office can supply such documentation, rather than the production sites.
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CBP No Longer Needs Affidavits if Similar Docs Available
According to CBP’s 2007 instructions, affidavits supplied by the producers of the raw materials (e.g., yarn, fabric, or knit-to-shape components) are the “primary” documents for proving that U.S. or regional materials were used in textile and apparel products claiming preference benefits from a free trade agreement or legislated trade program.
CBP’s revised instructions now state that as an alternative to affidavits, import specialists may accept other documentation if it contains all the necessary elements to demonstrate the product meets the FTA or legislated trade program’s rules of origin.
An example of such an alternative is a Certificate of Origin prepared for a specific product by the Government of Guatemala's National Commission of Quota Administration for Textiles and Wearing Apparel (Comision Nacional de Administracion de Cuotas Textiles y Prendas de Vestir de Guatemala).
Affidavits or Similar Docs Can also be Supplied by a Central Office
CBP continues to require that the “primary” documentation for proving the origin of preference textiles and apparel be from a person with direct knowledge of the production of the raw material.
However, CBP newly states that if a company has factories in several locations and has designated a centralized point of contact, CBP will accept the documentation from that authorized provider.
Essential Elements for an Affidavit or Similar Doc Listed
To reflect these and other changes, CBP has updated its 2007 list of the requirements for “primary” documentation (affidavit or similar document) to emphasis the “essential elements” (CBP adds that its 2007 instructions should also be consulted):
1. The statement should be from a person with direct knowledge of the production of the raw material. If a company has factories in several locations and has designated a centralized point of contact for providing this information, CBP will accept the statement from the authorized provider.1
2. The address of the actual production facility where the raw material was produced should be on the statement. This cannot be a post office box. While the person authorized to sign the document may work from the corporate office or another office facility, the document must show the address where the materials were produced.
3. The name of the contact person legibly printed, and at least one of the following: phone number, fax number, or email address, should be on the statement.
4. And lastly, a description of the goods including fiber content, yarn count, and fabric type, as appropriate, and identifying information such as invoice or order number, should be on the statement.
(Note that this list of "essentials" does not include blanket certificates of origin, which are listed in the 2007 instructions. While still accepted, sources state that CBP is concerned over their possible misuse if an order is cancelled, etc.)
CBP May Request Add’l Records to Substantiate the Use of U.S./Regional Inputs
CBP adds that other records may additionally be requested, as needed, when verifying claims that U.S. or regional materials were used to meet preference rules of origin. This list of records is contained in the 2007 instructions.
(In the 2007 instructions, CBP lists the records for U.S. yarn or fabric as:
- Records demonstrating that the imported merchandise was produced using U.S. formed yarn or fabric, or U.S. cut or knit-to-shape components. Such records include certificates of origin, purchase orders, invoices, delivery notices, and, in some cases, records of yarn, fabric, or panel formation from the actual producer of a component.
- Transportation and export records (e.g., bills of lading).
- Entry documents showing movement of the inputs into the regional country of final production.
And for regional yarn or fabric as:
- Records demonstrating that a party to the transaction sourced regionally formed yarn, fabric, or cut or knit-to-shape components clearly dedicated to the final imported merchandise. Such records include purchase orders, invoices, delivery notices, etc. These documents should demonstrate a direct correlation of the materials or components to the finished good by way of style numbers, fabric type and construction, or other means.
- Transportation and export records (e.g., bills of lading) from the regional country of origin of the yarn or fabric to the regional country of final production.
- Entry documents showing movement of the inputs into the regional country of final production.
- Documents showing movement and delivery of inputs within the regional country of final production.)
1CBP sources explain that such statements are most credible when the centralized site and outlying factories have the same company name.
(See ITT's Online Archives or 04/05/11 news, 11040511, for BP announcement of the availability of this new document. See ITT’s Online Archives or 10/24/07 news, 07102405, for BP summary of CBP's 2007 instructions.)
CBP contact: Diane Liberta (202) 863-6241
(TBT-11-004, dated 03/31/11)