'Two-for-One' Program Having Modest Impact on Apparel Imports From D.R., ITC Says
The Earned Import Allowance Program didn’t substantially contribute to a tripling of the value and a fivefold increase in the quantity of imported woven cotton bottoms from the Dominican Republic in 2015, the International Trade Commission said in a yearly…
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report on the program’s effectiveness for certain apparel imports from the country (here). The program isn’t providing as many incentives as intended to boost apparel imports, the ITC said. Five of 12 registered firms are using the program, same as in 2014, the ITC said. The ITC again made the same three recommendations as last year on how to fix the program, which allows duty-free access for Dominican Republic apparel exporters that use U.S. fabric: lowering the two-for-one ratio of U.S. to foreign fabric to a one-for-one ratio; including other types of fabrics and apparel items in the program; and changing the requirement that dyeing, finishing and printing of eligible fabrics take place in the U.S. But the ITC additionally recommended adding countries to the program to facilitate regional integration and create more opportunities in CAFTA-DR countries.