September 10, 2004

CMP-11 FO:TCF:TEO:TO SST

MEMORANDUM FOR: DIRECTORS, FIELD OPERATIONS

FROM: Executive Director, Trade Compliance and Facilitation

> Office of Field Operations

SUBJECT: TBT-04-029 Folklore Articles, Handloomed Fabric and Handmade
Articles From Such Handloomed Fabric Produced in Tanzania Eligible For
Preferential Tariff Treatment Under the African Growth and Opportunity
Act (AGOA)

REFERENCE: TBT-01-008 AGOA Implementation Instructions

> TBT-02-007 Tanzania Visa Arrangement

BACKGROUND:

The Trade and Development Act of 2000 ("the Act"), which was signed into
law on

May 18, 2000, authorized a new trade and investment policy for
sub-Saharan Africa. The Act provides for duty-free treatment for imports
of certain textile and apparel products of beneficiary sub-Saharan
African countries, including handloomed, handmade, or folklore articles
that are certified as such by competent authorities of the beneficiary
country. Executive Order 13191 dated January 17,2001 authorized the
Committee for the Implementation of Textile Agreements (CITA) to consult
with beneficiary countries and to determine which particular textile and
apparel goods shall be treated as handloomed, handmade, or folklore
articles.

Per a January 25, 2001 [Federal Register]{.underline} Notice (66 FR
7837), the President delegated the Office of the United States Trade
Representative (USTR) the authority to direct Customs to ensure that
textile and apparel articles described in Section 112 of the Act are
entered, or withdrawn from warehouse, for consumption accompanied by an
appropriate export visa when preferential tariff treatment is claimed
with respect to such articles. Grouping 9 of this visa arrangement is
for handmade, handloomed, or folklore articles. Please note that the
quantity shown on the visa for grouping 9 will be the normal reporting
quantity for the type of imported merchandise. For example, if rugs or
handloomed fabric are imported, the reported quantity will be in square
meters; if bedspreads, towels or other household furnishings are
imported, the reported quantity will be in kilos; and if it is wearing
apparel, it will be reported as in groupings 1 to 8.

CITA has consulted with Tanzanian authorities. In a September 8, 2004
[Federal Register]{.underline} Notice (69 FR 54268), CITA has determined
that certain folklore articles, listed below, handloomed fabrics,
handloomed articles (e.g., handloomed rugs, scarves, place

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mats, and tablecloths) and handmade articles made from handloomed
fabrics produced in and exported from Tanzania are eligible for
preferential tariff treatment under section 112(a) of the AGOA if
accompanied by an AGOA export visa for Grouping 9 issued by the
Government of Tanzania. An AGOA claim may be filed for such articles
under Harmonized Tariff Schedule (HTS) provision 9819.11.27 when
accompanied by an appropriate export visa.

CITA has determined that the following textile and apparel goods shall
be treated as folklore articles for purposes of the AGOA if made in
Tanzania and certified by a competent authority. Articles must be
ornamented in characteristic Tanzanian or regional folk style. An
article may not include modern features such as zippers, elastic,
elasticized fabrics, or hook-and-pile fasteners (such as Velcro or
similar holding fabric). An article may not incorporate patterns that
are not traditional or historical to Tanzania, such as airplanes, buses,
cowboys, or cartoon characters and may not incorporate designs
referencing holidays or festivals not common to traditional Tanzanian
culture, such as Halloween and Thanksgiving.

Kikoi (also spelled Kikoy)

Kikoi is a traditional Tanzanian multipurpose fabric of the East African
coast, varying in size depending on use. Kikoi is a 100 percent cotton
fabric, either handloomed or machine-made. Kikoi has distinct striped or
plaid patterns and usually has knotted or unknotted tassels along each
hem. If striped, the stripes are vertical along the selvedge edges in
bright colors, such as red, yellow, orange, green, or blue for garments.
Folklore articles made of Kikoi fabric eligible for treatment as
folklore articles are currently limited to the Mgolole, the Traditional
Kikoi Shirt, and the Traditional Kikoi Boubou, as described below.
Handloomed Kikoi fabric and handmade articles of such fabric may be
eligible for preferential AGOA treatment as handloomed or handmade
articles, but not as folklore articles.

Eligible folklore articles:

(a) Mgolole (Body Wrap, Scarf)

Made of Kikoi fabric, these traditional garments are worn as a wrap
around garment by both men and women all over the East African coast,
similar to the sarong of South East Asia. This traditional garment is
draped over one shoulder and held in place with a knot. The Kikoi
Mgolole can also be thrown over one shoulder for decoration or treated
as a normal scarf. Dimensions for the Mgolole are approximately 45 x 80
inches long

for wraps and 12 x 80 inches for scarves. The unfinished top and lower
hems are knotted or unknotted tassels along each hem.

(b) Traditional Kikoi Shirt

Made of Kikoi fabric, the article is a loose-fitting, straight- seamed
shirt. Sleeves are half to three-quarter in length. The neckline is
rounded or v- shaped, without collar.

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The shirt may or may not have square-shaped breast and lower front
pockets. It may have wooden button fastenings below the neckline. Kikoi
striped-trim typically decorates the neckline, pockets and each arm
opening. The bottom hem and/or pockets may be finished or left
unfinished with fringe or knotted tassels hanging.

(c) Traditional Kikoi Boubou (long tunic)

A loose flowing, straight-seamed, non-tailored, full-length outer tunic,
made of Kikoi fabric. The neckline is rounded or v-shaped, without
collar. Kikoi striped-trim decorates the neckline and each arm opening,
which extend down the full length of the garment. There are no
discernable sleeves. The garment is rectangular in shape. The bottom hem
can be finished or left unfinished with fringe knotted tassels hanging.

ACTION:

Effective September 13 2004 certain folklore articles, listed above,
handloomed fabrics, handmade articles (e.g. handloomed rugs, scarves,
place mats, and tablecloths) and handmade articles made from such
handloomed fabrics produced in and exported from Tanzania are eligible
for preferential tariff treatment under section 112(a) of the AGOA if
accompanied by an AGOA export visa for Grouping 9 issued by the
Government of Tanzania. Such products are classifiable under HTS
provision 9819.11.27 when accompanied by an appropriate export visa.

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

INFORMATION:

For additional information, please contact Ms. Susan Thomas, at (202)
344-3719 or

Mr. Robert Abels, at (202) 344-1959.

/s/

Elizabeth G. Durant