CSMS Message: 02-001175

DATE : 09/10/2002

TO: DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE COMPLIANCE AND FACILITATION
OFFICE OF FIELD OPERATIONS

SUBJECT: TBT- 02-030 AMENDMENT TO THE CARIBBEAN BASIN
TRADE AND PARTNERSHIP ACT (CBTPA) FOR
TEXTILE AND APPAREL PRODUCTS

REFERENCE: TBT-00-023-01 IMPLEMENTATION INFORMATION ON THE
CBTPA FOR TEXTILE AND APPAREL PRODUCTS

BACKGROUND:

THE TRADE AND DEVELOPMENT ACT OF 2000, WHICH WAS SIGNED INTO LAW
ON MAY 18, 2000, AUTHORIZED THE EXPANSION OF TRADE BENEFITS TO
DESIGNATED COUNTRIES IN THE CARIBBEAN BASIN. THIS TRADE PROGRAM
PROVIDES FOR THE ENTRY OF SPECIFIC TEXTILE AND APPAREL ARTICLES
FREE OF DUTY AND FREE OF ANY QUANTITATIVE RESTRICTIONS,
LIMITATIONS OR CONSULTATION LEVELS, AS WELL AS OTHER BENEFITS TO
NON-TEXTILE PRODUCTS. THIS NOTICE IS TO ADDRESS THE
REQUIREMENTS FOR THE ENTRY OF TEXTILE AND APPAREL PRODUCTS UNDER
THE CBTPA.

THE TRADE ACT OF 2002, WHICH WAS SIGNED INTO LAW BY PRESIDENT
BUSH ON AUGUST 6, 2002, AUTHORIZED AMENDMENTS TO THE CBTPA.
WHILE A PRESIDENTIAL PROCLAMATION IS NEEDED TO MODIFY THE EXISTING
9820 HTS NUMBERS, PLEASE TAKE NOTE THAT EFFECTIVE SEPTEMBER 1, 2002,
PRINTING AND DYEING OF U.S. FORMED KNIT OR WOVEN FABRIC, AS INDICATED
BELOW, IS REQUIRED IN ORDER TO MAKE CBTPA CLAIM.

INFORMATION:
IN GENERAL, SECTIONS 213 (B) (2)(A) OF THE CARIBBEAN BASIN
ECONOMIC RECOVERY ACT {19 U.S.C. 2703(B)(2)(A)} IS AMENDED AS
FOLLOWS:
CLAUSE (I) IS AMENDED--
(A) BY STRIKING THE MATTER PRECEDING SUBCLAUSE (I) AND INSERTING
THE FOLLOWING:
`(I) APPAREL ARTICLES ASSEMBLED IN ONE OR MORE CBTPA BENEFICIARY
COUNTRIES- APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE
OR MORE CBTPA BENEFICIARY COUNTRIES FROM FABRICS WHOLLY FORMED
AND CUT, OR FROM COMPONENTS KNIT-TO-SHAPE, IN THE UNITED STATES
FROM YARNS WHOLLY FORMED IN THE UNITED STATES, (INCLUDING
FABRICS NOT FORMED FROM YARNS, IF SUCH FABRICS ARE CLASSIFIABLE
UNDER HEADING 5602 OR 5603 OF THE HTS AND ARE WHOLLY FORMED AND
CUT IN THE UNITED STATES) THAT ARE--'; AND
(B) BY ADDING AT THE END THE FOLLOWING:
`APPAREL ARTICLES ENTERED ON OR AFTER SEPTEMBER 1, 2002, SHALL
QUALIFY UNDER THE PRECEDING SENTENCE ONLY IF ALL DYEING,
PRINTING, AND FINISHING OF THE FABRICS FROM WHICH THE ARTICLES
ARE ASSEMBLED, IF THE FABRICS ARE KNIT FABRICS, IS CARRIED OUT
IN THE UNITED STATES. APPAREL ARTICLES ENTERED ON OR AFTER
SEPTEMBER 1, 2002, SHALL QUALIFY UNDER THE FIRST SENTENCE OF
THIS CLAUSE ONLY IF ALL DYEING, PRINTING, AND FINISHING OF THE
FABRICS FROM WHICH THE ARTICLES ARE ASSEMBLED, IF THE FABRICS
ARE WOVEN FABRICS, IS CARRIED OUT IN THE UNITED STATES.'.
(2) CLAUSE (II) IS AMENDED TO READ AS FOLLOWS:
`(II) OTHER APPAREL ARTICLES ASSEMBLED IN ONE OR MORE CBTPA
BENEFICIARY COUNTRIES- APPAREL ARTICLES SEWN OR OTHERWISE
ASSEMBLED IN ONE OR MORE CBTPA BENEFICIARY COUNTRIES WITH THREAD
FORMED IN THE UNITED STATES FROM FABRICS WHOLLY FORMED IN THE
UNITED STATES AND CUT IN ONE OR MORE CBTPA BENEFICIARY COUNTRIES
FROM YARNS WHOLLY FORMED IN THE UNITED STATES, OR FROM
COMPONENTS KNIT-TO-SHAPE IN THE UNITED STATES FROM YARNS WHOLLY
FORMED IN THE UNITED STATES, OR BOTH (INCLUDING FABRICS NOT
FORMED FROM YARNS, IF SUCH FABRICS ARE CLASSIFIABLE UNDER
HEADING 5602 OR 5603 OF THE HTS AND ARE WHOLLY FORMED IN THE
UNITED STATES). APPAREL ARTICLES ENTERED ON OR AFTER SEPTEMBER
1, 2002, SHALL QUALIFY UNDER THE PRECEDING SENTENCE ONLY IF ALL
DYEING, PRINTING, AND FINISHING OF THE FABRICS FROM WHICH THE
ARTICLES ARE ASSEMBLED, IF THE FABRICS ARE KNIT FABRICS, IS
CARRIED OUT IN THE UNITED STATES. APPAREL ARTICLES ENTERED ON OR
AFTER SEPTEMBER 1, 2002, SHALL QUALIFY UNDER THE FIRST SENTENCE
OF THIS CLAUSE ONLY IF ALL DYEING, PRINTING, AND FINISHING OF
THE FABRICS FROM WHICH THE ARTICLES ARE ASSEMBLED, IF THE
FABRICS ARE WOVEN FABRICS, IS CARRIED OUT IN THE UNITED STATES.

ACTION:

EFFECTIVE SEPTEMBER 1, 2002, APPAREL ARTICLES SHALL QUALIFY
UNDER CLAUSE (I) OR CLAUSE (II) ABOVE, ONLY IF ALL DYEING,
PRINTING, AND FINISHING OF THE FABRICS FROM WHICH THE ARTICLES
ARE ASSEMBLED, IF THE FABRICS ARE KNIT OR WOVEN, IS CARRIED OUT
IN THE UNITED STATES.

PLEASE PASS THIS ADMINISTRATIVE MESSAGE TO PORT DIRECTORS,
ASSISTANT PORT DIRECTORS, IMPORT SPECIALISTS, INSPECTORS, ENTRY
SPECIALISTS, BROKERS, IMPORTERS AND OTHER INTERESTED PARTIES.

IF YOU HAVE ANY QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL
MS. CHERIE PARSONS AT (202) 927-3719, OR MR. ROBERT ABELS AT
(202) 927-1959.

\S\ RICHARD CRICHTON FOR

ELIZABETH G. DURANT