American Free Trade Agreement On Free Import Of Textiles From The Central American Free Trade Agreement

The US U.S. Customs and Border Protection (CBP) is reviewing the application of zero tariff treatment in the US market in accordance with the provisions of the Central American Free Trade Agreement (CAFTA-DR) pocket cloth.

CAFTA-DR's pocket cloth regulation industry came into effect in August 15th (2008). According to the regulations, garments products need to use the original cloth bags in the CAFTA-DR area to meet the tax exemption qualification. The use of outer pocket cloth will lose the preferential treatment.

CBP is reviewing the application of CAFTA-DR preferential treatment. The results show that most of the unfinished garments are based on the shortage of raw materials.

CBP Dan Baldwin explains that CBP is strengthening its application for the examination of preferential treatment.

Since the amount of garments imported in the form of FTA preferential treatment last year amounted to US $22 billion, CBP must be cautious and expand the application of zero tariff preference imports.

In view of the fact that 40% of the annual tariff revenue of the United States has been imported from textile and clothing products, CBP has set the textile products as the focus of inspection, because failing to check carefully may lead to huge tax losses, damage the American economy, or threaten the health and safety of the American people.

The ultimate goal is to ensure that imported textiles comply with laws, regulations, quotas, FTA codes and intellectual property rights regulations.

Yang Jing: editor in charge