> September 9, 2008
>
> CMP-1 OT:TPP:TAPP:TO JS

MEMORANDUM FOR: DIRECTORS, FIELD OPERATIONS

ASSISTANT DIRECTORS, TRADE, FIELD OPERATIONS

OFFICE OF FIELD OPERATIONS

FROM: Executive Director, Trade Policy and Programs

Office of International Trade

SUBJECT: TBT-08-011 Generalized System of Preferences (GSP) Treatment
for Hand-Loomed and Folklore Products from Cambodia

BACKGROUND:

The United States Trade Representative (USTR) has negotiated a GSP
certified hand-loomed and folklore agreement with Cambodia. Additional
U.S. Note 2 of Section XI of the Harmonized Tariff Schedule of the
United States (HTS) requires that certain tariff provisions for
hand-loomed and folklore articles can only be used if such an agreement
exists and certification is provided by the foreign government.

Accordingly, properly certified hand-loomed and folklore textile
articles of HTS subheadings 6304.99.10 and 6304.99.40 from Cambodia are
eligible for GSP treatment, provided that all other requirements
normally applying to GSP-eligible articles are satisfied.

The certification for eligible articles will be in the form of a
triangular stamp placed on the commercial invoice. The stamp will
include the following details:

1)  The name, signature, title and department of a government official
    authorized to issue the certification,

2)  The date the certification was signed, and

3)  A statement in English that the fabrics or products covered by the
    certification are:

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a)  Hand-loomed fabrics of the cottage industry,

b)  Hand-made cottage industry products made of hand loomed fabrics, or

c)  Traditional handicraft textile products.

The required certification must be presented at time of entry and may
not be waived. If the certification is not provided at the time of
entry, the merchandise will be considered dutiable and classified in the
alternative tariff schedule provisions for these products.

Certified articles may also be entered under HTS subheadings 5701.10.13,
5702.10.10, 5702.91.20, 5805.00.20, which are also subject to Additional
U.S. Note 2 of Section XI of the HTS. Preferential tariff treatment
under GSP is not applicable to these tariff provisions, which have a
Normal Trade Relations (NTR) duty rate of free. Textile articles
classifiable in these subheadings, but not accompanied by a
certification, are to be entered under the alternative provisions, which
also have a NTR duty rate of free.

To date, the USTR website ([www.ustr.gov](http://www.ustr.gov/))
indicates that GSP certified hand-loomed and folklore agreements exist
with the following countries: Afghanistan, Argentina, Botswana,
Cambodia, Colombia, Egypt, Jordan, Nepal, Pakistan, Paraguay, Peru,
Thailand, Tunisia, Turkey, and Uruguay. It is anticipated that an
agreement with Mongolia will be finalized soon.

The certification described above may be used to satisfy Additional U.S.
Note 4 of Chapter 52, making articles entered under HTS subheadings
5208.31.20, 5208.32.10, 5208.41.20, 5208.42.10, 5208.51.20, 5208.52.10,
5209.31.30, 5209.41.30, 5209.51.30 eligible for duty free treatment
under GSP, as long as all other requirements of GSP are satisfied.

ACTION:

Effective July 25, 2008, hand-loomed and folklore articles from Cambodia
that are properly certified in accordance with Additional U.S. Note 2 of
Section XI of the HTS, and classified in HTS 6304.99.1000 and
6304.99.4000 that are entered, or withdrawn from warehouse for
consumption, are eligible for GSP treatment, provided that the proper
GSP requirements are met.

Importers who paid duties on eligible articles that were entered or
withdrawn from warehouse for consumption on or after July 25, 2008, may
file a claim for refund of duties under any of the applicable post entry
procedures with the exception of NAFTA 520(d).

Please pass this memorandum to Port Directors, Assistant Port Directors,
Import Specialists, Inspectors, Entry Specialists, Brokers, Importers
and Other Interested Parties.

INFORMATION:

Questions regarding this administrative notice should be directed to
Import Specialist Jacqueline Sprungle at (202) 863-6517, Import
Specialist Nancy Mondich at (202) 863-6524, or Chief, Textile Operations
Branch Mr. Robert Abels, at (202) 863-6503.

/s/

Brenda Smith