CSMS Message: 02-001589

TO : ALL ABI BROKERS.

FROM : CHERIE B ZZ-PARSONS

SUBJECT : CBTPA AMENDMENTS

DATE : 11/20/2002

NOVEMBER 20, 2002
ENT-14 FO:TCF:TEO:TO CP

TO: DIRECTORS, FIELD OPERATIONS

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

SUBJECT: TBT-02-040 AMENDMENTS TO THE CARIBBEAN BASIN TRADE
PARTNERSHIP ACT (CBTPA) FOR TEXTILE AND APPAREL
PRODUCTS

REF: TBT-00-023-01 IMPLEMENTATION INFORMATION ON THE CBTPA
FOR
TEXTILES 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. SECTION 211 OF THE
ACT OUTLINES THE TREATMENT OF CERTAIN TEXTILES AND APPAREL
ARTICLES FOR CBTPA. APPAREL ARTICLES THAT ARE IMPORTED DIRECTLY
INTO THE CUSTOMS TERRITORY OF THE UNITED STATES FROM A
DESIGNATED BENEFICIARY CARIBBEAN 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 211.

THE PRESIDENT IS AUTHORIZED TO DESIGNATE A CARIBBEAN BASIN
COUNTRY AS AN ELIGIBLE BENEFICIARY COUNTRY BASED ON SEVERAL
CRITERIA ESTABLISHED IN THE ACT. THE PREFERENTIAL TARIFF
TREATMENT PROVIDED UNDER CBTPA IS EFFECTIVE UNTIL THE EARLIER OF
SEPTEMBER 30, 2008 OR THE DATE ON WHICH THE FREE TRADE AREA OF
THE AMERICAS (FTAA) OR ANOTHER FREE TRADE AGREEMENT IS
IMPLEMENTED WITH RESPECT TO THE UNITED STATES AND THE CBTPA
BENEFICIARY COUNTRY. THE TRADE COMMUNITY WILL BE NOTIFIED IF
CBTPA ELIGIBILITY IS CHANGED FOR ANY BENEFICIARY COUNTRY.

THE TRADE ACT OF 2002, WHICH WAS SIGNED INTO LAW BY PRESIDENT
BUSH ON AUGUST 6, 2002, AUTHORIZED AMENDMENTS TO THE CBTPA.
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 THOSE AMENDMENTS SET FORTH IN SECTION 3107 OF THE
ACT. PLEASE TAKE NOTE TO CHANGES WITHIN THE PREFERENCE
GROUPINGS, QUANTITATIVE LIMITS, AND THE ADDITION OF A NEW
PREFERENCE GROUPING. ALL OTHER INFORMATION IN TBT-00-023-01
REMAINS IN EFFECT.

SECTION 211 OF THE ACT OUTLINES THE TREATMENT OF CERTAIN TEXTILE
AND APPAREL ARTICLES FOR CBTPA. WEARING APPAREL ARTICLES THAT
MEET THE SPECIFIC PREFERENTIAL CATEGORIES MAY ENTER INTO THE
CUSTOMS TERRITORY OF THE UNITED STATES FREE OF DUTY AND FREE OF
1ANY QUANTITATIVE RESTRICTIONS, LIMITATIONS, OR CONSULTATION
LEVELS, EXCEPT THOSE NOTED BELOW.

PREFERENTIAL GROUPINGS

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

* APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE OR MORE
SUCH 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 IN
HEADING 5602 OR 5603 AND ARE WHOLLY FORMED AND CUT IN THE
UNITED STATES) THAT ARE ENTERED UNDER SUBHEADING
9802.00.8044. APPAREL ARTICLES ENTERED ON OR AFTER SEPTEMBER
2, 2002, SHALL BE ELIGIBLE FOR DUTY FREE TREATMENT ONLY IF
THE DYEING, PRINTING AND FINISHING OF THE KNITTED, CROCHETED
OR WOVEN FABRICS IS CARRIED OUT IN THE UNITED STATES.
(9802.00.8044)

* APPAREL ARTICLES ASSEMBLED IN ONE OR MORE SUCH 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 IN
HEADING 5602 OR 5603 AND ARE WHOLLY FORMED AND CUT IN THE
UNITED STATES), THAT ARE ENTERED UNDER CHAPTER 61 OR 62 OF
THE HTSUS AND IF AFTER SUCH ASSEMBLY, THE ARTICLES WOULD HAVE
QUALIFIED FOR ENTRY UNDER SUBHEADING 9802.00.80 OF THE HTSUS
BUT FOR THE FACT THAT THE ARTICLES WERE EMBROIDERED OR
SUBJECTED TO STONE-WASHING, ENZYME-WASHING, ACID WASHING,
PERMA-PRESSING, OVEN-BAKING, BLEACHING, GARMENT-DYEING,
SCREEN PRINTING OR OTHER SIMILAR PROCESSES. APPAREL ARTICLES
ENTERED ON OR AFTER SEPTEMBER 2, 2002, SHALL BE ELIGIBLE FOR
DUTY FREE TREATMENT ONLY IF THE DYEING, PRINTING AND
FINISHING OF THE KNITTED, CROCHETED OR WOVEN FABRICS IS
CARRIED OUT IN THE UNITED STATES. (9820.11.03)

NOTE: MERCHANDISE THAT QUALIFIES FOR 9802 SHOULD NOT
ALSO USE HTSUS NUMBER 9820.11.03.

* APPAREL ARTICLES (OTHER THAN THOSE IDENTIFIED IN 9820.11.18)
SEWN OR OTHERWISE ASSEMBLED IN ONE OR MORE SUCH BENEFICIARY
COUNTRIES WITH THREAD FORMED IN THE UNITED STATES FROM
FABRICS WHOLLY FORMED IN THE UNITED STATES AND CUT IN ONE OR
MORE 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 IN HEADING 5602 OR 5603 AND ARE WHOLLY FORMED IN
THE UNITED STATES). APPAREL ARTICLES ENTERED ON OR AFTER
SEPTEMBER 2, 2002, SHALL BE ELIGIBLE FOR DUTY FREE TREATMENT
1 ONLY IF THE DYEING, PRINTING AND FINISHING OF THE KNITTED,
CROCHETED OR WOVEN FABRICS IS CARRIED OUT IN THE UNITED
STATES. (9820.11.06)

* APPAREL ARTICLES (OTHER THAN SOCKS PROVIDED FOR IN HEADING
6115 OF THE HTSUS) KNIT-TO-SHAPE IN A BENEFICIARY COUNTRY
FROM YARNS WHOLLY FORMED IN THE UNITED STATES; KNITTED OR
CROCHETED APPAREL ARTICLES (EXCEPT T-SHIRTS, OTHER THAN
UNDERWEAR, CLASSIFIABLE IN SUBHEADINGS 6109.10.00 AND
6109.90.10 AND DESCRIBED IN SUBHEADING 9820.11.12) CUT AND
WHOLLY ASSEMBLED IN ONE OR MORE SUCH BENEFICIARY COUNTRIES
FROM FABRICS FORMED IN ONE OR MORE SUCH BENEFICIARY COUNTRIES
OR IN ONE OR MORE SUCH BENEFICIARY COUNTRIES AND THE UNITED
STATES FROM YARNS WHOLLY FORMED IN THE UNITED STATES
(INCLUDING FABRICS NOT FORMED FROM YARNS, IF SUCH FABRICS ARE
CLASSIFIABLE IN HEADING 5602 OR 5603 OF THE TARIFF SCHEDULE
AND ARE FORMED IN ONE OR MORE SUCH BENEFICIARY COUNTRIES).
(9820.11.09)

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

* T-SHIRTS, OTHER THAN UNDERWEAR, CLASSIFIABLE IN SUBHEADINGS
6109.10.00 AND 6109.90.10 OF THE HTSUS, MADE IN ONE OR MORE
DESIGNATED BENEFICIARY COUNTRIES FROM FABRIC FORMED IN ONE OR
MORE SUCH COUNTRIES FROM YARNS WHOLLY FORMED IN THE UNITED
STATES. (9820.11.12)

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

* BRASSIERES CLASSIFIABLE IN SUBHEADING 6212.10 OF THE HTSUS,
BOTH CUT AND SEWN OR OTHERWISE ASSEMBLED IN THE UNITED STATES
OR ONE OR MORE DESIGNATED BENEFICIARY COUNTRIES OR BOTH,
SUBJECT TO THE PROVISIONS IN SUBCHAPTER XX, U.S. NOTE 2(D) OF
THE HTSUS. (9820.11.15)

* APPAREL ARTICLES BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR
OTHERWISE ASSEMBLED IN ONE OR MORE BENEFICIARY COUNTRIES
FROM FABRICS OR YARNS NOT FORMED IN THE UNITED STATES OR
IN ONE OR MORE SUCH 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 (9820.11.24):

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

APPAREL ARTICLES BOTH CUT (OR KNIT-TO-SHAPE) AND SEWN OR
OTHERWISE ASSEMBLED IN ONE OR MORE SUCH BENEFICIARY
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.
(9820.11.27)

PLEASE REFER TO TBT-01-046, TBT-01-054, TBT-02-017 AND
TBT-02-022 FOR MORE INFORMATION ON SHORT SUPPLY FABRICS AND
YARNS.

* HANDLOOMED, HANDMADE OR FOLKLORE TEXTILE AND APPAREL GOODS,
UNDER THE TERMS OF SUBCHAPTER XX, U.S. NOTE 4 OF THE HTSUS.
(9820.11.30)

TO DATE, NO SUCH AGREEMENTS HAVE BEEN ESTABLISHED.

* TEXTILE LUGGAGE ASSEMBLED IN A DESIGNATED BENEFICIARY COUNTRY
FROM FABRIC WHOLLY FORMED AND CUT IN THE UNITED STATES FROM
YARN WHOLLY FORMED IN THE UNITED STATES THAT IS ENTERED UNDER
SUBHEADING 9802.00.8046. (9802.00.8046)

* TEXTILE LUGGAGE ASSEMBLED IN A CBTPA BENEFICIARY COUNTRY FROM
FABRIC CUT IN A DESIGNATED BENEFICIARY COUNTRY FROM FABRIC
WHOLLY FORMED IN THE UNITED STATES FROM YARN WHOLLY FORMED IN
THE UNITED STATES. (9820.11.21)

* KNITTED OR CROCHETED APPAREL ARTICLES CUT AND ASSEMBLED IN
ONE OR MORE SUCH BENEFICIARY 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 IN HEADING 5602 OR 5603 AND ARE
WHOLLY FORMED IN THE UNITED STATES) IF SUCH ASSEMBLY IS WITH
THREAD FORMED IN THE UNITED STATES. (9820.11.18)

* APPAREL ARTICLES SEWN OR OTHERWISE ASSEMBLED IN ONE OR MORE
SUCH BENEFICIARY COUNTRIES WITH THREAD FORMED IN THE UNITED
STATES, THE FOREGOING (I) FROM COMPONENTS CUT IN THE UNITED
STATES AND IN ONE OR MORE SUCH BENEFICIARY COUNTRIES FROM
FABRIC 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 IN HEADING 5602
OR 5603 AND ARE WHOLLY FORMED IN THE UNITED STATES), OR (II)
FROM COMPONENTS KNIT-TO-SHAPE IN THE UNITED STATES AND ONE OR
MORE SUCH COUNTRIES FROM YARNS WHOLLY FORMED IN THE UNITED
STATES, (III) FROM ANY COMBINATION OF TWO OR MORE OF THE
FOREGOING KNITTING-TO-SHAPE OR CUTTING OPERATIONS. APPAREL
ARTICLES ENTERED ON OR AFTER SEPTEMBER 2, 2002, SHALL BE
ELIGIBLE FOR DUTY FREE TREATMENT ONLY IF THE DYEING, PRINTING
AND FINISHING OF THE KNITTED, CROCHETED OR WOVEN FABRICS IS
CARRIED OUT IN THE UNITED STATES. (9820.11.33)

ACTION:

CLAIMS FOR PREFERENTIAL TARIFF TREATMENT UNDER THE AMENDED CBTPA
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 THE AMENDED CBTPA PROVISIONS 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
APPLICABLE POST ENTRY PROCEDURES.

IN ORDER FOR AN IMPORTER TO MAKE A CLAIM UNDER THE CBTPA
AMENDMENTS, A MODIFIED TEXTILE CERTIFICATE OF ORIGIN WILL BE
REQUIRED TO REFLECT THE CBTPA ELIGIBLE ARTICLE. 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.

INFORMATION:

IF YOU HAVE ANY QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL
1MS. CHERIE PARSONS AT (202) 927-7002, OR MR. ROBERT ABELS AT
(202) 927-1959.

\S\ RICHARD CRICHTON FOR
ELIZABETH G. DURANT