Imports in excess of these limits are not entitled to duty-free treatment. However, unlike current textile quotas, products in excess of the caps can enter the U.S. but must pay MFN or normal duties. Some apparel assembled in Africa can enter duty-free from AGOA beneficiaries free of the ceiling even if produced from third country yam or apparel. Partial assembly means that some of the sewing together of apparel parts are done in non-beneficiary countries. The bill does not provide a mechanism for allocating this amount if imports reach the ceiling.
Investors are concerned if a first-come serve basis is used.
On the other hand, country allocations can result in unused portions of the global allocation. One proposal is to provide preference in the allocate for apparel incorporating local yams and fabric as opposed to third country materials. In some circumstances, linings and sewing thread may be included in the definition. A special safeguard mechanism applies to apparel subject to the cap. In addition to duties, stiff penalties can be levied for fraudulent practices such as for transhipments.