Bill Would Extend AGOA 3rd Country Fabric TPL, Progress South Sudan
On July 11, 2011, House Trade Subcommittee Ranking Member McDermott (D) introduced H.R. 2493, a bill to extend the African Growth and Opportunity Act’s third country fabric provision for three years, through September 30, 2015 and add the newly independent Republic of South Sudan to the list of sub-Saharan African countries (under 19 USC 3706).
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(AGOA authorizes the President to designate a country listed in 19 USC 3706 as a beneficiary sub-Saharan African country (i.e., eligible for AGOA benefits) if he determines that the country meets certain eligibility requirements.)
Would Align TPL Expiration with Expiration of Rest of AGOA
According to Representative McDermott, this would align the third country fabric provision, i.e., the duty-free tariff preference level (TPL) in HTS 9819.11.12 for apparel made in lesser-developed AGOA beneficiary countries from third country yarns and fabrics, with the rest of the AGOA program which expires on September 30, 2015.
McDermott also notes that he is working on an improvement and extension of the AGOA program beyond 2015.
(The Administration has previously stated that it wants to extend the AGOA third country fabric provision through 2022, add South Sudan to the list of countries eligible for AGOA benefits, and make South Africa eligible for the third country fabric provision. See ITT’s Online Archives or 06/06/11 and 06/10/11, 11060619 and 11061026, for BP summaries.)
H.R. 2493 available here
Representative McDermott’s remarks on H.R. 2493 available here