Dom Rep Loses Eligibility for DR-CAFTA Cumulation for Mexican Inputs
U.S. Customs and Border Protection has been advised that effective March 1, 2012, the Dominican Republic lost its eligibility for using the DR-CAFTA cumulation provisions under HTS 9822.05.11 or 9822.05.13 as the basis for preferential treatment. These provisions permit certain materials to be sourced from Mexico. CBP states a Presidential Proclamation to amend the Harmonized Tariff Schedule (HTS) as necessary to implement this change is forthcoming.
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(CBP announced the 2012 tariff preference level (TPL) limit and sublimits for certain apparel goods1 that can benefit from cumulation using Mexican inputs in January 2012. See ITT's Online Archives 12010518 for summary. )
Claims Filed on or After March 1 Will be Assessed at Non-Originating Duty Rates
As a result, claims for preference on goods from the Dominican Republic based on these cumulation provisions that are filed on or after March 1, 2012, will be assessed duty as non-originating goods.
Additionally, entries under 9822.05.11 are subject to quota. Charges against the 2012 limit or sublimits for goods from the Dominican Republic entered on or after March 1, 2012, will be credited back to the limit(s) once the HTS changes are in place and systems are updated to remove the Dominican Republic from quota programming.
Status of Cumulation Claims on Goods from Other Countries Unaffected
The duty and quota status of cumulation claims on goods from Costa Rica, El Salvador, Guatemala, Honduras or Nicaragua under 9822.05.11 or 9822.05.13, which are not based on the Dominican Republic’s cumulation eligibility, will not be affected.
1Apparel that enters under HTS 9822.05.11 includes: (1) certain trousers, skirts, and parts thereof, of cotton or man-made fibers, or subject to cotton or man-made fiber restraints; (2) certain cotton blue denim trousers and skirts; (3) certain apparel goods, not knitted or crocheted, containing 36% or more by weight of wool or subject to wool restraints.
CBP has previously stated that certain woven wool suits, trousers, suit-type jackets, blazers, vests, and skirts, not made from carded wool fabric or made from wool yarn having an average fiber diameter of 18.5 microns or less are to be entered under HTS 9822.05.13.
For DR-CAFTA textile-related questions, contact Natalie Hanson at natalie.hanson@dhs.gov or (202) 863-6494.
Quota issues may be directed to John Raymer at hq.quota@dhs.gov or (202) 863-6560.
(CSMS #12-000070, dated 03/06/12)