SAVE Act Would Grant Duty-Free Access to Certain Philippine Apparel
The Save Our Industries Act of 2011 (SAVE Act) was introduced in the House and Senate in late June 2011. The SAVE Act would grant certain Philippine apparel duty-free entry, establish a single transformation rule for certain other Philippine apparel, and provide enforcement, penalty provisions.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The SAVE Act was introduced in the Senate (S. 1244) by Senator Inouye1 (D) on June 22, 2011 and in the House (H.R. 2387) by House Trade Subcommittee Ranking Member McDermott2 (D) on June 24, 2011. S. 1244 and H.R. 2387 appear to be identical.
Highlights of Senate and House SAVE Act
According to a Congressional Research Service summary, both S. 1244 and H.R. 2387 would:
Certain Philippine apparel of U.S. material would be duty-free. Grant duty-free treatment, subject to specified conditions, to certain apparel wholly assembled in the U.S. or the Philippines, or both, and components of such apparel consisting entirely of: (1) fabric cut in the U.S. or the Philippines, or both, from fabric wholly formed in the U.S. from yarns wholly formed in the U.S.; (2) components knit-to-shape in the U.S. from yarns wholly formed in the U.S.; or (3) any combination of such fabric or components.
Other apparel would only need single transformation for duty-free treatment. Prescribe single transformation duty-free rules for specified apparel articles, regardless of the source of the fabric, fabric components, components knit-to-shape, or yarns from which the articles are made, if they: (1) are cut and wholly assembled, or knit-to-shape, in the Philippines from any combination of such components; and (2) are imported directly into the U.S. from the Philippines.
(According to Senator Inouye, this would allow duty-free treatment for a limited range of apparel not using U.S. fabrics, including certain lines of coats, dresses, skirts, blouses, and infants' wear, and would not contain any components that could have been made in the U.S. He adds that such lines of apparel would not compete against imports from third countries using U.S. components.)
Provide for enforcement, penalties. Prescribe requirements for review and enforcement of the program, as well as penalties for exporters and importers who engage in the transshipment of apparel that has been afforded preferential treatment.
SAVE Act Previously Introduced in 2009-2010, but not Passed by Congress
A similar version of the SAVE Act was introduced in the 111th Congress (2009-2010, but was never passed the House or Senate.
1With co-sponsors Senators Reid (D), Akaka (D), and Blunt (R).
2With co-sponsors Austria (R), Bilbray (R), Bordallo (D), Filner (D), Hirono (D), Rangel (D), and Sablan (D).
S. 1244, including link to CRS summary, available here
Senator Inouye’s press release on S. 1244 available here
H.R. 2387, including link to CRS summary, available here
Representative McDermott’s press release on H.R. 2387 available here