ITC Sets Schedule for 3rd Report on DR Apparel Earned Import Program
The International Trade Commission has announced that it is seeking comments for its third annual report in the investigation of the effectiveness of the "2 for 1" Earned Import Allowance Program (EIAP) for certain apparel from the Dominican Republic. The ITC is required to conduct this annual review of the EIAP for the purpose of evaluating the effectiveness of the program and making recommendations for improvements.
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EIAP Allows DR Apparel Produced Using U.S. Fabric to Enter Duty-Free
The EIAP provides an uncapped benefit for duty-free imports of bottoms (woven cotton pants and trousers, bib and brace overalls, breeches and shorts, and skirts and divided skirts) assembled in the Dominican Republic from foreign fabric, provided such imports are accompanied by a certificate documenting the purchase of certain U.S.-produced woven cotton fabric at a ratio of 2 for 1. Under this formula, for every 2 units of qualifying fabric (defined as formed in the U.S. from U.S.-formed yarns) purchased for apparel production in the Dominican Republic, a 1-unit credit is received that can be used in the manufacture and importation of apparel using non-qualifying fabric.1
No Public Hearing Scheduled, Written Submissions Are Due April 12
ITC hasn't announced a public hearing in connection with this investigation as it has done for its previous reports. Instead, interested parties are invited to file written submissions concerning this third annual review. The deadline for filing written submissions is April 12, 2012.
ITC Will Transmit Report to House and Senate by July 26
The ITC will transmit its report to the House Ways and Means Committee and the Senate Finance Committee by July 26, 2012. The ITC intends to publish only a public report in this review. Consequently, the report that the ITC sends to the committees will not contain any confidential business information.
1According to the ITC's 2010 report, there has been limited use of the EIAP, and industry sources indicated potential to improve the program that could spur greater interest going forward. Nonetheless, the EIAP has reportedly benefited a handful of U.S. and Dominican firms, particularly U.S. firms that dye and finish fabric and Dominican producers of apparel items eligible under the program.
(See ITT's Online Archives 10073011 for summary of the ITC's first report on the effectiveness of this program, which found that the program had initial beneficial effects on U.S. and Dominican Republic textile and apparel industries.
See ITT's Online Archives 11072509 for summary of the ITC's second report on the effectiveness of this program, which found that the EIAP provides insufficient incentive to increase production of woven cotton bottoms in the Dominican Republic.)
ITC Contacts:
Investigation information -- Laura Rodriguez (202) 205-3499, laura.rodriguez@usitc.gov
Legal -- William Gearhart (202) 205-3091, william.gearhart@usitc.gov
(FR Pub 03/12/12, Investigation No. 332-503)