> March 30, 2007
>
> ENT-14 OT:TPP:TEO:TO SST

MEMORANDUM FOR: DIRECTORS, FIELD OPERATIONS

ASSISTANT DIRECTORS, TRADE, FIELD OPERATIONS

OFFICE OF FIELD OPERATIONS

FROM: Acting Executive Director, Trade Policy and Programs

> Office of International Trade

SUBJECT: TBT-07-007 Amendments to the African Growth and Opportunity Act
for Textile and Apparel Products

REF: TBT-01-008 Implementation Information on the AGOA for Textiles and
Apparel Products

TBT-02-038 Amendments to AGOA

TBT-04-022 Retroactive Benefits under the AGOA

TBT-04-024-01 Amendments to the AGOA

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 CBP 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. Amendments to the AGOA were
made in the Trade Act of 2002, which was signed into law by President
Bush on August 6, 2002 and the AGOA Acceleration Act of 2004, which was
signed into law by President Bush on July 13, 2004.

Title VI of the Tax Relief and Health Care Act of 2006, signed into law
by President Bush on December 20, 2006, set forth additional amendments
to the AGOA. This administrative notice details these amendments. Please
take note to changes within the preference groupings. All other
information in TBT-01-008, TBT-02-038 and TBT-04-024-01 remain 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, 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 and cut in the United States)
that are entered under subheading 9802.00.80 of the HTSUS.
**(9802.00.8042, visa grouping 1) -- no changes**

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, 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 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) -- no changes**

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) -- no
changes**

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 or former beneficiary sub-Saharan African countries, 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 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 countries or former
> beneficiary sub-Saharan African countries, or both, 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
> or former beneficiary sub-Saharan African countries, or both, whether
> or not the apparel articles are also made from any of the fabrics,
> fabric components formed, or components knit-to-shape described in
> groupings 1, 2, and 3 (unless the apparel articles are made
> exclusively from any of the fabrics, fabric components formed, or
> components knit-to-shape described in groupings 1, 2, and 3.
> **(9819.11.09, visa grouping 4) -- no changes**
>
> This preference grouping continues to have limitations on benefits.
> The HQ Quota Branch issues QBTS regarding the 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)**

> Use of this provision has been extended to September 30, 2012. This
> preference grouping continues to have limitations on benefits.

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) -- no
changes**

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) -- no
changes**

8\. Apparel articles that are both cut (or knit-to-shape) and sewn or
otherwise assembled in one or more such beneficiary sub-Saharan African
countries to the extent that apparel articles of such fabrics or yarns
would be eligible for the tariff treatment provided in general note 12
of the HTSUS, without regard to the source of the fabrics or yarns. 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) -- no changes**

> 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) -- no changes**

> Please refer to TBT-01-047, TBT-01-054, TBT-02-017, TBT-02-029,
> TBT-03-030, TBT-03-033, TBT-04-009, TBT-04-019, TBT-04-021,
> TBT-05-012, TBT-06-007, and TBT-06-023 for the fabrics and yarns that
> have been designated as short supply by CITA.

10. Handloomed, handmade or folklore articles; ethnic printed fabrics

> Handloomed, handmade and folklore items are negotiated between The
> President and the sub-Saharan African countries. To date Botswana,
> Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali, Mozambique,
> Namibia, Niger, Nigeria, Senegal, Sierra Leone, Swaziland, Tanzania
> and Zambia have agreements for handloomed fabric and handmade articles
> from such handloomed fabrics produced in the eligible country.
> Ethiopia, Ghana, Mali, Mozambique, Niger, Nigeria, Sierra Leone and
> Tanzania also have an agreement for certain folklore articles. The
> ports and the trade community will be notified when additional
> countries and/or products are eligible. **(9819.11.27, visa grouping
> 9) -- No changes**

Please refer to TBT-02-032, TBT-02-039, TBT-02-042, TBT-02-044,
TBT-03-009, TBT-03-011, TBT-03-021, TBT-03-028, and TBT-04-029,
TBT-05-001, TBT-05-013, TBT-05-017, TBT-05-021, TBT-05-021-01,
TBT-05-030, TBT-06-014, TBT-06-024, TBT-06-025, TBT-06-026 for
additional information.

Requirements for ethnic printed fabrics are as follows:

(i) containing a selvedge on both edges, having a width of less than 50
    inches, classifiable under subheading 5208.52.30 or 5208.52.40 of
    the HTSUS;

(ii) of the type that contains designs, symbols, and other
     characteristics of African prints:

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(I) normally produced for and sold on the indigenous African market; and

(II) normally sold in Africa by the piece as opposed to being tailored
     into garments before being sold in indigenous African markets;

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(iii) printed, including waxed, in one or more eligible beneficiary
      sub-Saharan countries; and

(iv) formed in the United States, from yarns formed in the United
     States, or from fabric formed in one or more beneficiary
     sub-Saharan African countries from yarn originating in either the
     United States or one or more beneficiary sub-Saharan African
     countries.

> Mali, Niger, Nigeria and Tanzania have an agreement for ethnic printed
> fabrics. The ports and the trade community will be notified when
> additional countries and/or products are eligible.

Please refer to TBT-05-021, TBT-05-021-01, TBT-06-024, TBT-06-025,
TBT-06-026 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
    or former 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 or former
    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) -- No changes**

12. Apparel articles of chapter 61 or 62, wholly assembled, or knit to
    shape and wholly assembled, or both, in one or more lesser developed
    beneficiary sub-Saharan African countries that contain a fabric or
    yarn produced in a beneficiary sub-Saharan African country that has
    been determined by the United States International Trade Commission
    (USITC) to be available in commercial quantities for use in lesser
    developed sub-Saharan African beneficiary countries. **(9819.15.10
    through 9819.15.42, visa grouping 4, certificate of origin
    grouping D) -- new HTSUS numbers**

> Only denim provided for in subheading HTSUS 5209.42.00 has been deemed
> by the USITC to be in abundant supply. If the component that
> determines classification contains denim fabric of HTSUS 5209.42.00
> produced in a beneficiary sub-Saharan African country, it should be
> classified in HTSUS 9819.15.10. A visa for grouping 4 is required and
> the goods are subject to tariff preference levels.
>
> As USITC deems other fabrics or yarns in abundant supply, a TBT will
> be issued.

13. Textile articles classified in HTSUS chapters 50 -- 60, inclusive,
    or HTSUS chapter 63, that are products of a lesser developed
    beneficiary sub-Saharan African country and are wholly formed in one
    or more such countries from fibers, yarns, fabrics, fabric
    components, components knit-to-shape that are the product of one or
    more such countries. **(9819.11.33, visa grouping 0, certificate of
    origin grouping J) -- new HTSUS number, visa grouping, and
    certificate of origin grouping**

> Currently no countries are eligible to issue grouping 0 visas. As
> countries become eligible, a TBT will be issued.

ACTION:

Currently, the HTSUS numbers have not been programmed, and therefore,
claims cannot be made at this time, including those made on non-ABI
entries. Once the necessary ACS programming is completed, a TBT will be
issued.

Once programming in completed, claims for preferential tariff treatment
under the new AGOA provisions described in this TBT may be made on
qualifying merchandise entered, or withdrawn from warehouse, for
consumption on or after October 1, 2006.

Importers who paid duties on apparel articles that are eligible for the
new trade preferences and were entered on or after October 1, 2006, may
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 new provisions, documentation requirements must
be met, e.g. a textile certificate of origin and a commercial invoice
with the necessary visa stamp issued by the government of the
sub-Saharan African country.

Please pass this administrative message to Port Directors, Assistant
Port Directors, Import Specialists, CBP Officers, Entry Specialists,
Brokers, Importers and Other Interested Parties.

INFORMATION:

If you have any questions concerning this notice, please call Ms. Nancy
Mondich, at (202) 344-2166, Ms. Jacqueline Sprungle, at (202) 344-2277,
or Ms. Susan Thomas at (202) 344-3719, or Mr. Robert Abels at (202)
344-1959.

//s//

Anne Maricich