November 19, 2002

> ENT-14 FO:TCF:TEO:TO SST

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]{.underline} (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]{.underline}

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]{.underline} 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)]{.underline}

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.

(Janet L. Labuda signed)

Elizabeth G. Durant