G/RO/LDC/N/USA/3  
 
11 July 2017  
(17-3716) Page: 1/6 
Committee on Rules of Origin  Original: English  
 
NOTIFICATION OF PREF ERENTIAL RULES OF OR IGIN FOR  
LEAST DEVELOPED COUN TRIES  
UNITED STATES 
The following communication, dated 30 June 2017, is being circulated at the request of the 
delegation of United States . 
_______________  
 
Paragraph 4.3 of the 2015 Min isterial Decision on preferential rules of origin for least developed 
countries (WT/L/917/Add.1) requires preference -granting Members  to notify preferential rules o f 
origin as per the established procedures1. In addition, as mandated by the Ministerial Dec ision, the 
Committee on Rules of Origin agreed, at its meeting of 2 March 2017, to a template  for such 
notifications (G/RO/84 ). 
 
Following such requirements, the following notification has been received from: United States . 
 
A. BASIC INFORMATION  
 
1)  Notifyin g member  United States  
2)  Date of entering into force of Rules 
of origin and any substantive  
modification thereof  Signed into Law:  18 May 2000  
Link:  https://www.congress.gov/106 /plaws/publ200/PLAW -
106publ200.pdf  
Entered into Force: 2 October 2000  
Link: https://w ww.federalregister.gov/articles/2000/10/04/00 -
25692/to -implement -the-african -growth -and-opportunity -act-
and-to-designate -eritrea -as-a-beneficiary  
3)  Date of expiration of Rules of origin 
if applicable  30 September 2025.  See Section 103 of the Trade 
Prefer ences Extension Act of 2015, available at:  
https://www.congress.gov/114/plaws/publ27/PLAW -
114publ27.pdf  
4)  Title of the preferential scheme for 
which legislation on Rules of origin  
is applicable  African Growth and Opportunity Act (AGOA)  
5)  Authority(ies) granting the 
preferential treatment  President of the United States ( www.whitehouse.gov ) 
6)  National authorities in charge of 
Rules of origin administration  Office of the U.S. Trade Representative ( www.ustr.gov ) 
Office of African Affairs  
1-202-395-9514 
correspondence@ustr.eop.gov  
 
                                                
1 The relevant notification requirements are contained in Paragraph 2(d) of Annex 1 of the Transparency 
Mechanism for Preferential Trade Arrangements (WT/L/806) and in Paragraph 4 of Annex II of the Agreement 
on Rules of Origin.  G/RO/LDC/N/USA/3  
 
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  B. INFORMATION ON RULES OF ORIGIN  
I.  BENEFICIARIES  
1)  List of Beneficiaries  As of 1 June 2017:  Angola, Benin, Botswana, Burkina Faso, 
Cameroon, Cape Verde, Central African Republic, Chad, 
Comoros, the Republic of the Congo, Cote d'Ivoire, Djibouti, 
Ethiopia, Gabon, Ghana, Guinea , Guinea -Bissau, Kenya, 
Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, 
Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, 
Sao Tome and Principe, Senegal, Sierra Leone, South Africa, 
Tanzania, Togo, Uganda, and Zambia.  
2)  Eligibility  Countri es Eligible for AGOA Benefits: Section 104 of the 
African Growth and Opportunity Act (Public Law 106 -200), 
accessible at  
https://www.congress.gov/106/plaws/publ200/PLAW -
106publ20 0.pdf 
 
II.  CRITERIA FOR DETERMINING SUBSTANTIAL TRANSFORMATION  
1)  General criteria, if applicable for all 
products   The general rule of origin can be found in 19 USC 2463(a)(2).  
This rule does not apply to textile and apparel goods.  The rule 
of origi n for textile and apparel goods is described in section 2, 
on product -specific rules (see below).  
"(2)  Rule of origin  
(A) General rule  
 The duty -free treatment provided under this subchapter 
shall apply to any eligible article which is the growth, 
product , or manufacture of a beneficiary developing 
country if— 
 (i) that article is imported directly from a beneficiary 
developing country into the customs territory of the 
United States; and  
 (ii)  the sum of— 
  (I) the cost or value of the materials produced in 
the beneficiary developing country or any two or 
more such countries that are members of the 
same association of countries and are treated as 
one country under section 2467(2) of this title, 
plus 
  (II) the direct costs of processing operations 
performe d in such beneficiary developing 
country or such member countries, is not less 
than 35% of the appraised value of such article 
at the time it is entered.  
(B)  Exclusions  
 An article shall not be treated as the growth, product, or 
manufacture of a beneficia ry developing country by virtue 
of having merely undergone — 
 (i) simple combining or packaging operations, or  
 (ii) mere dilution with water or mere dilution with 
another substance that does not materially alter the 
characteristics of the article."  
 (a) Definition of wholly obtained 
products  The definition for wholly obtained products can be found in 19 
CFR 10.176.  
"(a) Merchandise produced in a beneficiary developing country 
or any two or more countries which are members of the 
same association of countri es—(1) General.  Except as 
otherwise provided in this section, any article which either 
is wholly the growth, product, or manufacture of, or is a 
new or different article of commerce that has been 
grown, produced, or manufactured in, a beneficiary 
developi ng country may qualify for duty -free entry under G/RO/LDC/N/USA/3  
 
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  the Generalized System of Preferences (GSP). No article 
will be considered to have been grown, produced, or 
manufactured in a beneficiary developing country by 
virtue of having merely undergone simple (as op posed to 
complex or meaningful) combining or packaging 
operations or mere dilution with water or mere dilution 
with another substance that does not materially alter the 
characteristics of the article. Duty -free entry under the 
GSP may be accorded to an art icle only if the sum of the 
cost or value of the materials produced in the beneficiary 
developing country or any two or more countries that are 
members of the same association of countries and are 
treated as one country under section 507(2) of the Trade 
Act of 1974, as amended (19 U.S.C. 2467(2)), plus the 
direct costs of processing operations performed in the 
beneficiary developing country or member countries, is 
not less than 35% of the appraised value of the article at 
the time it is entered."  
 (b)  Describe the criteria for not -
wholly produced products  The criteria for not -wholly produced products can be found in 
19 CFR 10.176(a)(2)  
No article which has undergone only a simple combining or 
packaging operation or a mere dilution in a beneficiary 
developi ng country will be entitled to duty -free treatment even 
though the processing operation causes the article to meet the 
value requirement set forth in 19 CFR 10.176(a)(1).  
In addition, 19 CFR 10.176(a)(2) provides a non -exhaustive 
list of operations that a re insufficient to confer origin.  
 (c)  Insert the formula for 
calculating ad valorem  
percentage  The formula for calculating the regional value content of the 
article can be found in 19 CFR 10.176(a)(1).  Under the 
formula, the sum of the cost or value o f the materials 
produced in the beneficiary developing country or any 2 or 
more countries that are members of the same association of 
countries, plus the direct costs of processing operations 
performed in the beneficiary developing country or member 
countr ies, must not be less than 35% of the appraised value 
of the article at the time it is entered.  
In addition, 19 CFR 10.178a(d)(4)(i) provides that up to 15% 
of the aforementioned 35% requirement can be satisfied by 
value of materials produced in the United  States.  Information 
on cumulation can be found in section 5, below.  
2)  Product specific rules of origin, where applicable  
 (a)  Insert  the link where the 
complete list of product 
specific rules of origin can be 
found.  AGOA provides for the preferentia l treatment of certain textile 
and apparel products, footwear, and travel goods.  The rules 
of origin for these articles are different from the general rule 
described above.  
Textile and Apparel  
AGOA provides qualifying sub -Saharan African countries with 
duty-free and quota -free treatment for eligible apparel articles 
exported to the United States, through 30 September 2025.  
Qualifying articles include:  apparel made of U.S. yarns and 
fabrics; apparel made of sub -Saharan African (regional) yarns 
and fabrics , subject to a cap; apparel made in a designated 
lesser -developed country of third -country yarns and fabrics, 
also subject to a cap; apparel made of yarns and fabrics not 
produced in commercial quantities in the United States; textile 
or textile articles o riginating entirely in one or more lesser 
developed beneficiary sub -Saharan African countries; certain 
cashmere and merino wool sweaters; and eligible 
handloomed, handmade, or folklore articles, and ethnic 
printed fabrics.  
The rules of origin for these art icles can be found at 19 CFR 
211-213: 
https://www.ecfr.gov/cgi -bin/text -
idx?SID=61efe140c8a30e01ae54661a8c33c917&mc=true&no
de=sp19.1 .10.d&rgn=div6  G/RO/LDC/N/USA/3  
 
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   (b)  Insert the formula for 
calculating ad valorem  
percentage, when applied for 
product specific rule  N/A. 
3) Definition of non -originating 
material and originating material, if 
any N/A. 
4) List of insufficient working process, 
if any  Under 19 CFR 10.176(a)(2), simple combining or packaging 
operations or mere dilution carried out in a beneficiary country 
does not confer origin, even if the processing operation causes 
the article to meet the value requirement.  That section of the 
regulat ion also contains an illustrative list of non -qualifying 
operations.  
5) Rules for application of cumulation 
and related procedures if any  All AGOA beneficiary countries may cumulate (i.e., use inputs 
from other countries to meet the local value content 
requirement) with other AGOA beneficiary countries .  Under 
AGOA, up to 15% of the 35% local value content requirement 
may be attributable to the cost or value of materials produced 
in the United States.  In addition, AGOA beneficiaries may 
cumulate with form er AGOA beneficiaries.  A "former 
beneficiary" is defined as a country that ceases to be 
designated as a beneficiary country under the particular 
preference program because the country has become a Party 
to a free trade agreement with the United States.  
The regulation related to cumulation under AGOA can be found 
at 19 CFR 10.178a(d)(4)(ii):  
https://www.ec fr.gov/cgi -
bin/retrieveECFR?gp=&SID=78d6a6408073bb2527e006557f0
10f37&mc=true&n=pt19.1.10&r=PART&ty=HTML#se19.1.10_
1178a  
6) Any other information that member 
deems necessary  U.S. Customs and Border Protection has published a guide to 
AGOA, "What Every Mem ber of the Trade Community Should 
Know About: African Growth Opportunity Act."  It can be 
accessed at:  
https://www.cbp.gov/sites/default/files/documents/icp065_3.
pdf 
Specific in formation about the textile and apparel provisions of 
AGOA can be found on the website of the Office of Textiles and 
Apparel, part of the U.S. Department of Commerce 
(otexa.trade.gov, then click on "AGOA" under "Trade 
Agreements").  
 
III.   DOCUMENTARY REQ UIREMENTS  
1)  Certificate of origin and other proofs of origin  
 (a)  Requirement for certificate of 
origin and/or any other proof 
of origin, if any  A certificate of origin is not required, but when the article is 
not wholly the growth, product, or manufac ture of a single 
beneficiary country, the exporter of the merchandise or other 
appropriate party having knowledge of the relevant facts shall 
be prepared to submit a declaration setting forth all pertinent 
detailed information concerning the production or manufacture 
of the merchandise.  See 19 CFR 10.173:  
https://www.ecfr.gov/cgi -bin/text -
idx?SID=61efe140c8a30e01ae54661a8c33c917&mc =true&no
de=se19.1.10_1173&rgn=div8  
A certificate of origin is required for textile and apparel goods.  
See 19 CFR 10.214:  
https: //www.ecfr.gov/cgi -bin/text -
idx?SID=61efe140c8a30e01ae54661a8c33c917&mc=true&no
de=se19.1.10_1214&rgn=div8  
 (b)  Authority to be designated for 
issuance of certificate of origin  See subsection (a) above.  G/RO/LDC/N/USA/3  
 
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   (c)  Prescribed form of Certificate 
of origin and /or any other 
proof of origin  See 19 CFR 10.214:  
https://www.ecfr.gov/cgi -bin/text -
idx?SID=61efe140c8a30e01ae54661a8c33c917&mc=tr ue&no
de=se19.1.10_1214&rgn=div8  
 (d)  Any other procedures applied 
for certificate of origin and/or 
any other proof of origin, if 
any N/A. 
2)  Direct shipment  
 (a)  Rules applicable for direct 
shipment, if any  In order to qualify for preferential treat ment, the eligible 
article must be imported directly from a beneficiary country to 
the United States.  The term "imported directly" is defined at 
19 CFR 10.175.  
 (b)  Documentary requirement for 
proof of direct shipment 
including when the transport 
of con signment involves 
transit through one or more 
intermediate countries, if any  The documentary requirements can be found at 19 CFR 
10.175.  In general, if the shipment from a beneficiary country 
to the United States passes through the territory of any other 
country, the merchandise in the shipment cannot enter into 
the commerce of any other country while en route  to the 
United States, and the invoice, bills of lading, and other 
shipping documents must show the U.S. as the final 
destination; or if the goods ar e shipped from the beneficiary 
developing country to the United States through a free trade 
zone in a beneficiary developing country, the merchandise 
cannot enter into the commerce of the country maintaining 
the free trade zone.  
 
IV.  VERIFICATION AND PEN ALTIES  
1)  Procedure for verification of proofs 
of origin  The regulations related to examination, sampling, and testing 
of merchandise can be found at 19 CFR 151.1 through 151.16.   
2)  Penalties for fraud and false 
declarations  In general, if a claim for  preference under AGOA is incorrect, 
the importer's claim of preference will be denied, and the 
importer must pay the applicable duty.  If a Customs and 
Border Protection Officer finds any package that contains an 
article not specified on the invoice, and there is reason to 
believe the article was omitted from the invoice by fraud, 
gross negligence, negligence on the part of the seller, shipper, 
owner, or agent, a monetary penalty may be imposed, or in 
some cases, the merchandise may be seized or forfeited.  
(See e.g., 19 U.S.C. 1592, 19 CFR 162.)  
3)  Authorities and procedures for 
appeal in the case of dispute on 
verification  An importer may disagree with the dutiable status after the 
entry has been liquidated. A decision at this stage of the entry 
transact ion is requested by filing a protest and application for 
further review on CBP Form 19:  
https://www.cbp.gov/sites/default/files/documents/CBP_Form
_19.pdf  
4) Requirement for preserving the 
documents related to issuance of 
certificate of origin  Importers who make a claim of preference under AGOA are 
required to maintain records to support that claim for a period 
of 5 years from the date of entry.  
5) Any other relevant informat ion N/A. 
 
V.  REFERENCE TEXTS  
(a) The legislative texts in one of the 
official WTO languages containing 
the preferential rules of origin 
applicable under a PTA granted 
under the Decision on Measures in 
Favour of Least -Developed 
Countries (Annex F of the H ong 
Kong Ministerial Declaration)  See Section II above.  
(b) The full text of the administrative 
regulations concerning modalities 
for issuance, acceptance, See subsection III.1 above.  G/RO/LDC/N/USA/3  
 
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  retrospective issuance and 
replacement of certificates of 
origin or any equivalent 
declarations to be made, including 
any requirements  related to 
stamps to be used along with 
notification of stamps  
(c) The full text and related 
administrative regulations of the 
modalities for the proof of 
movement of the consignment of 
the goods from the beneficiary 
countries to preference -giving 
countries including transit through 
third countries  See subsection III.2 above.  
(d) The full texts of the modalities of 
the verification procedures and 
related penalties  See Section IV above.  
____ ______