President Bush issued Dec. 20 a proclamation outlining a number of modifications to the DR-CAFTA pursuant to the letters of understanding the U.S. signed with the DR-CAFTA countries on July 27, August 6 and August 14, 2007. However, these modifications will not enter into effect until a date that will be announced later by the U.S. Trade Representative in the Federal Register. Highlights of the proclamation are as follows.
• A cumulation provision will allow the USTR to announce sometime in the future that inputs from Mexico and Canada may be used in the production of apparel products that qualify for duty-free treatment under the DR-CAFTA. The initial quantitative limit on such goods is established but provisions are made for this limit to be increased in the future.
• For any garment that contains a pocket bag, the pocket bag material must be made in the DR-CAFTA region from yarns made in the DR-CAFTA region.
• Apparel subject to the cut and sew only rule of origin is exempted from the requirement to use originating sewing thread, narrow elastic fabric and pocket bag fabrics.
• The specific rules of origin in HTSUS chapters 61 and 62 are amended to allow the cut and sew only rule of origin for certain goods.
• HTSUS chapter 62 is amended to exempt certain jackets, suit coats, etc. made from carded wool yarns or wool yarn with an average fiber diameter of less than or equal to 18.5 microns from the requirement to use only originating visible inner lining.
• The Costa Rica wool tariff preference level provision is amended.
• A new HTSUS designation is provided for reduced duty liability for certain trousers and pants.
World Trade/Interactive
