> December 16, 2004
>
> ENT-14 FO:TCF:TEO:TO SST

MEMORANDUM FOR: DIRECTORS, FIELD OPERATIONS

FROM: Executive Director, Trade Compliance and Facilitation

Office of Field Operations

SUBJECT: TBT-04-032 Retroactive Benefits under the African Growth and
Opportunity Act (AGOA) and the Caribbean Basin Trade Partnership Act
(CBTPA) under the Miscellaneous Trade and Technical Corrections Act of
2004 (TCF TC# 05-0430)

REFERENCE: TBT-04-022 Amendments to the AGOA under the AGOA Acceleration
Act of 2004

BACKGROUND:

The Miscellaneous Trade and Technical Corrections Act of 2004, which was
signed into law by President Bush on December 3, 2004, sets forth
changes to the CBPTA and AGOA. These changes and those made in the Trade
Act of 2002 and the AGOA Acceleration Act of 2004 are retroactive to
October 1, 2000.

Notwithstanding section 514 of the Tariff Act of 1930 or any other
provision of law,

Customs and Border Protection (CBP) shall liquidate or reliquidate
articles as free of duty and free of any quantitative limitations
(excluding any tariff preference levels) entries that meet these
requirements. Liquidation or reliquidation may be made only if a request
is filed with CBP within 90 days after the enactment of the
Miscellaneous Trade and Technical Corrections Act of 2004 and the
request contains sufficient information to enable CBP to locate the
entry or reconstruct the entry if it cannot be located. The requests
must include specific information regarding the change that allows the
merchandise to now be eligible for preferential tariff treatment. The
requests must be made at the port of entry by COB March 3, 2005.

Importers will receive denials for refund requests under the AGOA
Acceleration Act of 2004 for claims based on the changes to the special
rules, such as the use of foreign collars and cuffs. Importers must file
a refund request citing the Miscellaneous Trade and Technical
Corrections Act of 2004.

\- 2 -

For all requests for liquidation or reliquidation for AGOA merchandise,
all entry document requirements of AGOA must be met at the time a claim
is made (AGOA visa, AGOA certificate of origin, etc.)

The following is a summation of the amendments that may be applied
retroactively. If a HTS number has not yet been identified, no changes
were made to that grouping that would be affected by a protest.

## TRADE ACT OF 2002 

AGOA

HTS 9802.00.8042 Visa Grouping 1

Allows for US Knit-to-Shape Components

HTS 9819.11.03 Visa Grouping 2

Allows for US Knit-to-Shape Components

HTS 9819.11.06 Visa Grouping 3

Allows for US Knit-to-Shape Components

Allows for Combination of US Formed Fabrics and

> US Knit-to-Shape Components

HTS 9819.11.09 Visa Grouping 4

> Allows for Beneficiary sub-Saharan African (SSA) Country Knit-to-Shape
>
> Components from US or SSA yarn
>
> Allows for Articles Wholly Formed on Seamless Knitting Machines in
> Beneficiary
>
> SSA country from SSA or US yarn

HTS 9819.11.12 Visa Grouping 5

Allows for Knit-to-Shape Articles Regardless of the Country of Origin of
the yarn

Namibia and Botswana added to list of countries eligible for this
benefit

HTS 9819.11.18 Visa Grouping 7

Diameter of the wool changed to 21.5 microns or finer

HTS 9819.11.30 Visa Grouping 3

> New tariff number for apparel articles sewn or otherwise assembled in
> one or more beneficiary SSA countries with thread formed in the US,
> the foregoing (I) from components cut in the US or in one or more
> beneficiary SSA countries from fabrics wholly formed in the US from
> yarns wholly formed in the US (including fabrics not formed from
> yarns, if such fabrics are classifiable under heading 5602 or 5603 of
> the HTS, or (II) from components knit-to-shape in the US and one or
> more beneficiary SSA countries from yarn wholly formed in the US, or
> (III) from any combination of two or more of the foregoing
> knitting-to-shape or cutting operations.

\- 3 -

CBTPA

HTS 9802.00.8044

Allows for US Knit-to-Shape Components

HTS 9820.11.03

Allows for US Knit-to-Shape Components

HTS 9820.11.06

Allows for US Knit-to-Shape Components

HTS 9820.11.33

> New tariff number for apparel articles sewn or otherwise assembled in
> one or more such beneficiary countries with thread formed in the
> United States, from (i) components cut in the United States and in one
> or more such beneficiary countries from fabric 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 in
> heading 5602 or 5603 and are wholly formed in the United States), or
> (ii) components knit-to-shape in the United States and one or more
> such 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. Apparel articles entered on or after September
> 2, 2002, are eligible for duty free treatment only if the dyeing,
> printing and finishing of the knitted, crocheted or woven fabrics is
> carried out in the United States.

## AGOA ACCELERATION ACT OF 2004

AGOA

HTS 9802.00.8042 Visa Grouping 1

> Allows for Combination of US Formed Fabrics and US Knit-to-Shape
>
> Components

HTS 9819.11.03 Visa Grouping 2

> Allows for Combination of US Formed Fabrics and US Knit-to-Shape
>
> Components

HTS 9819.11.09 Visa Grouping 4

> Allows for Fabric, Knit-to-Shape Components, or both from Former
> Beneficiary
>
> SSA Countries
>
> Allows for Yarn to Originate in Former Beneficiary SSA Countries

Allows For the Apparel Articles to be also Made from any of the Fabrics,
Fabric

> Components Formed, or Components Knit-To-Shape Described in Visa
> 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 Visa Groupings 1, 2, and 3.)

\- 4 -

HTS 9819.11.21 Visa Grouping 8

> Allows for the "Short Supply" Fabric or Yarn to be Formed in any
>
> Country Including the US and AGOA Beneficiary Countries

HTS 9819.11.24 Visa Grouping 8

> Allows for the "Short Supply" Fabric or Yarn to be Formed in any
>
> Country Including the US and AGOA Beneficiary Countries

HTS 9819.11.27 Visa Grouping 9

Allows for Ethnic Printed Fabrics

HTS 9819.11.30 Visa Grouping 3

> Allows for Cut Components, Knit-to-Shape Components, or both from
> Former
>
> Beneficiary SSA countries

[Special Rules:]{.underline}

Certain Components: An article otherwise eligible for preferential
treatment will not be ineligible for such treatment because the article
contains the items listed below that do not meet the requirements set
forth in the above preference groupings, regardless of the country of
origin of the item:

a)  any collars or cuffs (cut or knit-to-shape),

b)  drawstrings,

c)  shoulder pads or other padding,

d)  waistbands,

e)  belt attached to the article,

f)  straps containing elastic, or

g)  elbow patches

De Minimis Rule: An article otherwise eligible for preferential
treatment shall not be ineligible for such treatment because the article
contains fibers or yarns not wholly formed in the United States or one
or more beneficiary sub-Saharan African countries or a former
beneficiary sub-Saharan African country if the total weight of all such
fibers and yarns is not more than 10 percent of the total weight of the
article.

## MISCELLANEOUS TRADE AND TECHNICAL CORRECTIONS ACT OF 2004

AGOA

HTS 9819.11.12 Visa Grouping 5

> Mauritius added to list of countries eligible for this benefit for the
> period of October 1, 2004 through September 30, 2005. They may use no
> more than 5% of the quantitative limits.

All amendments to Section 112 in the Trade Act of 2002 and the AGOA
Acceleration Act of 2004 are retroactive to October 1, 2000. This would
include those changes to the special rules, such as collars and cuffs.

\- 5 -

CBTPA

HTS 9802.00.8044

> Allows for Combination of US Formed Fabrics and US Knit-to-Shape
>
> Components

HTS 9820.11.03

> Allows for Combination of US Formed Fabrics and US Knit-to-Shape
>
> Components

HTS 9820.11.24

> Allows for the "Short Supply" Fabric or Yarn to be Formed in any
>
> Country Including the US and CBTPA Beneficiary Countries

HTS 9820.11.27

> Allows for the "Short Supply" Fabric or Yarn to be Formed in any
>
> Country Including the US and CBTPA Beneficiary Countries

Special Origin Rule**:** For purposes of subheadings 9802.00.8044,
9820.11.03, 9820.11.06, 9820.11.18 and 9820.11.33, an apparel article
otherwise eligible for preferential treatment under such subheadings
shall not be ineligible for such treatment because the article contains
nylon filament yarn (other than elastomeric yarn) classifiable under
subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30,
5402.32.60, 5402.41.10, 5401.41.90, 5402.51.00 or 5402.61.00 of the HTS
if the origin of the yarn is from Canada, Mexico or Israel.

All amendments to CBTPA in the Trade Act of 2002 and the Miscellaneous
Trade and Technical Corrections Act of 2004 are retroactive to October
1, 2000.

INFORMATION:

Requests for liquidation or reliquidation cannot be processed until the
Presidential Proclamation is published. This office will issue an
administrative notice when the Presidential Proclamation has been
issued.

Please pass this memorandum to Port Directors, Assistant Port Directors,
Import Specialists, Inspectors, Entry Specialists, Brokers, Importers
and other interested parties.

If you have any questions regarding this memorandum, please contact Ms.
Susan Thomas, at (202) 344-3719, Ms. Jackeline Martel, at (202)
344-2277, or Mr. Robert Abels, at (202) 344-1959.

(signed Janet L. Labuda for)

Elizabeth G. Durant