CSMS Message: 02-001587

Title:AGOA II AMENDMENTS
Date:2002-11-21
To:abi
Links:previous, next

NOVEMBER 19, 2002

TO: DIRECTORS, FIELD OPERATIONS

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

SUBJECT: TBT-02-038 AMENDMENTS TO THE AFRICAN GROWTH AND
OPPORTUNITY ACT (AGOA) FOR TEXTILE AND APPAREL
PRODUCTS

REF: TBT-01-008 IMPLEMENTATION INFORMATION ON THE AGOA FOR
TEXTILES AND APPAREL PRODUCTS

BACKGROUND:

THE TRADE AND DEVELOPMENT ACT OF 2000, WHICH WAS SIGNED INTO LAW
ON MAY 18, 2000, AUTHORIZED A NEW TRADE AND INVESTMENT POLICY FOR
SUB-SAHARAN AFRICA. SECTION 112 OF THE ACT OUTLINES THE
TREATMENT OF CERTAIN TEXTILES AND APPAREL ARTICLES FOR AGOA.
APPAREL ARTICLES THAT ARE IMPORTED DIRECTLY INTO THE CUSTOMS
TERRITORY OF THE UNITED STATES FROM A DESIGNATED BENEFICIARY
SUB-SAHARAN AFRICAN COUNTRY SHALL ENTER FREE OF DUTY AND FREE
OF ANY QUANTITATIVE LIMITATIONS (EXCLUDING ANY TARIFF PREFERENCE
LEVELS IDENTIFIED IN THE ACT) IF THE COUNTRY HAS SATISFIED THE
REQUIREMENTS SET FORTH IN SECTION 113.

THE TRADE ACT OF 2002, WHICH WAS SIGNED INTO LAW BY PRESIDENT
BUSH ON AUGUST 6, 2002, AUTHORIZED AMENDMENTS TO THE AGOA.
PRESIDENTIAL PROCLAMATION 7626, WHICH WAS SIGNED NOVEMBER 13,
2002 AND PUBLISHED IN THE NOVEMBER 18, 2002 FEDERAL REGISTER (67
FR 69459) SETS FORTH THOSE AMENDMENTS. THIS ADMINISTRATIVE
NOTICE DETAILS THESE AMENDMENTS SET FORTH IN SECTION 3108 OF THE
ACT, WHICH IS REFERRED TO AS AGOA II IN THE TRADE COMMUNITY.
PLEASE TAKE NOTE TO CHANGES WITHIN THE PREFERENCE GROUPINGS AND
THE ADDITION OF A NEW PREFERENCE GROUPING. ALL OTHER
INFORMATION IN TBT-01-008 REMAINS IN EFFECT.

INFORMATION:

PREFERENTIAL GROUPINGS

A CLAIM FOR PREFERENTIAL TARIFF TREATMENT UNDER AGOA MAY BE MADE
IF THE TEXTILE OR APPAREL ARTICLE QUALIFIES UNDER ONE OF THESE
GROUPINGS:

1. APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN 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 HTSUS AND ARE WHOLLY FORMED
AND CUT IN THE UNITED STATES) THAT ARE ENTERED UNDER
SUBHEADING 9802.00.80 OF THE HTSUS. (9802.00.8042, VISA
GROUPING 1)

2. APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN 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 HTSUS AND ARE WHOLLY FORMED
AND CUT IN THE UNITED STATES), THE FOREGOING WHICH (1)
ARE EMBROIDERED OR WERE SUBJECTED TO STONE-WASHING,
ENZYME-WASHING, ACID WASHING, PERMAPRESSING, OVEN-BAKING,
BLEACHING, GARMENT-DYEING, SCREEN PRINTING, OR OTHER
SIMILAR PROCESSES, AND (2) BUT FOR SUCH EMBROIDERY OR
PROCESSING ARE OF A TYPE OTHERWISE DESCRIBED IN HEADING
9802.00.80 OF THE HTSUS. (9819.11.03, VISA GROUPING 2)

3. APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES WITH
THREAD FORMED IN THE UNITED STATES FROM FABRICS WHOLLY
FORMED IN THE UNITED STATES AND CUT IN ONE OR MORE
BENEFICIARY SUB-SAHARAN AFRICAN 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 HTSUS AND ARE WHOLLY
FORMED IN THE UNITED STATES). (9819.11.06, VISA GROUPING 3)

4. APPAREL ARTICLES WHOLLY ASSEMBLED IN ONE OR MORE
BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM FABRICS
WHOLLY FORMED IN ONE OR MORE BENEFICIARY SUB-SAHARAN
AFRICAN COUNTRIES FROM YARNS ORIGINATING EITHER IN THE
UNITED STATES OR ONE OR MORE BENEFICIARY SUB-SAHARAN
AFRICAN COUNTRIES (INCLUDING FABRICS NOT FORMED FROM
YARNS, IF SUCH FABRICS ARE CLASSIFIABLE UNDER HEADING
5602 OR 5603 OF THE HTSUS AND ARE WHOLLY FORMED AND CUT
IN ONE OR MORE BENEFICIARY SUB-SAHARAN AFRICAN
COUNTRIES), OR FROM COMPONENTS KNIT-TO-SHAPE IN ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM YARNS
ORIGINATING EITHER IN THE UNITED STATES OR ONE OR MORE
BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES, OR APPAREL
ARTICLES WHOLLY FORMED ON SEAMLESS KNITTING MACHINES IN A
BENEFICIARY SUB-SAHARAN AFRICAN COUNTRY FROM YARNS
ORIGINATING EITHER IN THE UNITED STATES OR ONE OR MORE
BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES. (9819.11.09,
VISA GROUPING 4)

THIS PREFERENCE GROUPING CONTINUES TO HAVE LIMITATIONS ON
BENEFITS. A QBT WILL BE ISSUED BY THE QUOTA BRANCH
REGARDING THE NEW TARIFF PREFERENCE LEVELS.

5. APPAREL ARTICLES WHOLLY ASSEMBLED, OR KNIT-TO-SHAPE AND
WHOLLY ASSEMBLED, OR BOTH, IN ONE OR MORE LESSER
DEVELOPED BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES
REGARDLESS OF THE COUNTRY OF ORIGIN OF THE FABRIC OR THE
YARN USED TO MAKE SUCH ARTICLES. (9819.11.12, VISA
GROUPING 5)

PLEASE NOTE THAT US OR FOREIGN COMPONENTS, INCLUDING
KNIT-TO-SHAPE COMPONENTS, MAY NOT BE UTILIZED IN THIS
PROVISION.

THIS PREFERENCE GROUPING CONTINUES TO HAVE LIMITATIONS ON
BENEFITS. A QBT WILL BE ISSUED BY THE QUOTA BRANCH WITH
THE NEW TARIFF PREFERENCE LEVELS.

6. SWEATERS, IN CHIEF WEIGHT OF CASHMERE, KNIT-TO-SHAPE IN
ONE OR MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES AND
CLASSIFIABLE UNDER SUBHEADING 6110.10 OF THE HTSUS.
(9819.11.15, VISA GROUPING 6)

7. SWEATERS, 50 PERCENT OR MORE BY WEIGHT OF WOOL MEASURING
21.5 MICRONS IN DIAMETER OR FINER, KNIT-TO-SHAPE IN ONE
OR MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES.
(9819.11.18, VISA GROUPING 7)

8. APPAREL ARTICLES BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR
OTHERWISE ASSEMBLED IN ONE OR MORE BENEFICIARY
SUB-SAHARAN AFRICAN COUNTRIES FROM FABRICS OR YARN NOT
FORMED IN THE UNITED STATES OR IN ONE OR MORE BENEFICIARY
SUB-SAHARAN COUNTRIES, PROVIDED THAT SUCH APPAREL
ARTICLES OF SUCH FABRICS OR YARNS WOULD BE CONSIDERED AN
ORIGINATING GOOD UNDER THE TERMS OF GENERAL NOTE 12(T) TO
THE HTSUS WITHOUT REGARD TO THE SOURCE OF THE FABRIC OR
YARN IF SUCH APPAREL ARTICLE HAD BEEN IMPORTED FROM THE
TERRITORY OF CANADA OR THE TERRITORY OF MEXICO DIRECTLY
INTO THE CUSTOMS TERRITORY OF THE UNITED STATES. THE
FABRICS AND YARNS IN QUESTION INCLUDE:

A) FINE COUNT COTTON KNITTED FABRICS FOR CERTAIN
APPAREL (SEE GENERAL NOTE 12^T|, CHAPTER 61,
CHAPTER RULES 61.27^A|, 61.30^A| AND 61.32^A|),
B) LINEN FABRICS AND YARNS OF FLAX, EXCEPT KNITTED OR
CROCHETED FABRICS,
C) SILK FABRICS AND YARNS, EXCEPT KNITTED OR
CROCHETED FABRICS,
D) COTTON VELVETEEN,
E) FINE WALE CORDUROY,
F) HARRIS TWEED,
G) CERTAIN WOVEN FABRICS MADE WITH ANIMAL HAIRS (SEE
GENERAL NOTE 12(T), CHAPTER 62, CHAPTER RULE 2 (D)),
H) CERTAIN LIGHTWEIGHT, HIGH THREAD COUNT COTTON
POLY-COTTON WOVEN FABRICS (SEE GENERAL NOTE 12(T),
CHAPTER 62, CHAPTER RULE 2 (E)),
I) CERTAIN LIGHTWEIGHT, HIGH THREAD COUNT BROADWOVEN
FABRICS USED IN PRODUCTION OF MEN'S AND BOYS'
SHIRTS (SEE GENERAL NOTE 12(T), CHAPTER 62.SR30,
SUBHEADING RULE A-I), AND
J) QUILTED TEXTILE PRODUCTS IN THE PIECE OF HEADING
5811.00.

(9819.11.21, VISA GROUPING 8)

SEE TBT-01-004-01 FOR MORE INFORMATION ON SHORT SUPPLY
FABRICS AND YARNS.

9. APPAREL ARTICLES BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR
OTHERWISE ASSEMBLED IN ONE OR MORE BENEFICIARY
SUB-SAHARAN AFRICAN COUNTRIES, FROM FABRICS OR YARN
DESIGNATED BY THE APPROPRIATE U.S. GOVERNMENT AUTHORITY
IN THE FEDERAL REGISTER AS FABRICS OR YARN NOT AVAILABLE
IN COMMERCIAL QUANTITIES IN THE UNITED STATES, UNDER ANY
TERMS AS SUCH AUTHORITY MAY PROVIDE. (9819.11.24, VISA
GROUPING 8)

PLEASE REFER TO TBT-01-047, TBT-01-054, TBT-02-017, AND
TBT-02-029 FOR THE FABRICS AND YARNS THAT HAVE BEEN
DESIGNATED AS SHORT SUPPLY BY CITA.

10. HANDLOOMED, HANDMADE OR FOLKLORE TEXTILE AND APPAREL
GOODS. THIS WILL BE NEGOTIATED BETWEEN THE PRESIDENT AND
THE SUB-SAHARAN AFRICAN COUNTRIES. TO DATE, KENYA AND
BOTSWANA HAVE AGREEMENTS FOR HANDLOOMED FABRIC AND
HANDMADE ARTICLES FROM SUCH HANDLOOMED FABRICS PRODUCED
IN THE ELIGIBLE COUNTRY. THE PORTS AND THE TRADE
COMMUNITY WILL BE NOTIFIED WHEN ADDITIONAL AGREEMENTS ARE
MADE. (9819.11.27, VISA GROUPING 9)

PLEASE REFER TO TBT-02-032 AND TBT-02-039 FOR ADDITIONAL
INFORMATION.

11. APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES WITH
THREAD FORMED IN THE UNITED STATES, THE FOREGOING (I)
FROM COMPONENTS CUT IN THE UNITED STATES AND IN ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM
FABRICS WHOLLY FORMED 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 HTSUS), OR (II) FROM
COMPONENTS KNIT-TO-SHAPE IN THE UNITED STATES AND ONE OR
MORE BENEFICIARY SUB-SAHARAN AFRICAN COUNTRIES FROM YARNS
WHOLLY FORMED IN THE UNITED STATES, OR (III) FROM ANY
COMBINATION OF TWO OR MORE OF THE FOREGOING
KNITTING-TO-SHAPE OR CUTTING OPERATIONS. (9819.11.30,
VISA GROUPING 3)

LESSER DEVELOPED BENEFICIARY COUNTRIES (LDBC)

THE ACT HAS NAMED BOTSWANA AND NAMIBIA AS LDBC'S THAT MAY TAKE
ADVANTAGE OF THE BENEFITS OUTLINED IN GROUPING 5.

ACTION:

CLAIMS FOR PREFERENTIAL TARIFF TREATMENT UNDER THE NEW AGOA
REQUIREMENTS MAY BE MADE ON QUALIFYING MERCHANDISE ENTERED,
OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION ON OR AFTER
AUGUST 6, 2002.

IMPORTERS WHO PAID DUTIES ON APPAREL ARTICLES THAT ARE ELIGIBLE
FOR PREFERENCES UNDER AGOA II AND WERE ENTERED ON OR AFTER
AUGUST 6, 2002, MAY NOW APPLY FOR A FULL REFUND OF DUTIES PAID.
IMPORTERS CAN AVAIL THEMSELVES OF ALL THE APPLICABLE POST ENTRY
PROCEDURES.

IN ORDER FOR AN IMPORTER TO MAKE A CLAIM UNDER THE AGOA II
AMENDMENTS, A MODIFIED TEXTILE CERTIFICATE OF ORIGIN WILL BE
REQUIRED TO REFLECT THE AGOA II ELIGIBLE ARTICLE, AND A
COMMERCIAL INVOICE WITH THE NECESSARY VISA STAMP ISSUED BY THE
HOST GOVERNMENT CUSTOMS ADMINISTRATION. MODIFICATIONS ON THE
CERTIFICATES OF ORIGIN SHOULD REFLECT THE DESCRIPTION OF THE
ARTICLE AND THE APPLICABLE PROVISION SET FORTH IN PRESIDENTIAL
PROCLAMATION 7626. UNTIL A NEW FORMAT IS ESTABLISHED FOR THE
TEXTILE CERTIFICATE OF ORIGIN, THE CURRENT FORMAT MAY BE USED
AND MODIFIED. AFTER CUSTOMS MODIFIES ITS REGULATIONS TO
ESTABLISH A NEW FORMAT, CLAIMANTS MAY NEED TO PERFECT THEIR
CERTIFICATES TO CONFORM TO THE NEW FORMAT.

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. SUSAN THOMAS AT (202) 927-3719, OR MR. ROBERT ABELS AT
(202) 927-1959.

/SIGNED JANET L. LABUDA/
FOR ELIZABETH G. DURANT