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New 12-Month Cap on Duty/Quota-Free Benefits for Andean Apparel

Friday, October 28, 2011
Sandler, Travis & Rosenberg Trade Report

The Committee for the Implementation of Textile Agreements has issued a notice extending through Sept. 30, 2012, the quantitative limitation on imports of qualifying apparel articles eligible for preferential tariff treatment under the regional fabric provision of the Andean Trade Promotion and Drug Eradication Act.

The ATPDEA provides duty- and quota-free treatment for certain apparel articles assembled in ATPDEA beneficiary countries from regional fabric and components, subject to quantitative limitation. More specifically, this provision applies to apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries from fabrics or fabric components formed, or from components knit-to-shape, in one or more ATPDEA beneficiary countries from yarns wholly formed in the U.S. or one or more ATPDEA beneficiary countries (including fabrics not formed from yarns, if such fabrics are classifiable under HTSUS 5602 and 5603 and are formed in one or more ATPDEA beneficiary countries). Such apparel articles may also contain certain other eligible fabrics, fabric components or components knit-to-shape.

In light of the recent extension of the ATPDEA through July 31, 2013, this notice provides that for the period Oct. 1, 2011, through Sept. 30, 2012, the aggregate quantity of imports eligible for preferential treatment under the ATPDEA regional fabric provision is 1,341,021,673 square meters equivalent. Apparel articles entered in excess of this quantity will be subject to otherwise applicable tariffs.

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