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Little Effect from Proposed CAFTA-DR Rule of Origin Changes, ITC Says

Tuesday, June 21, 2016
Sandler, Travis & Rosenberg Trade Report

The International Trade Commission has determined that proposed modifications to the CAFTA-DR rules of origin with respect to the following products would likely have no significant or substantial effects on total U.S. trade or U.S. industry.

- fishing lures of HTSUS subheading 9507.90

- gaming machines of HTSUS subheading 9504.30

- polyvinyl chloride and other plastics of HTSUS subheadings 3904.21 and 3904.22

- products of the chemical or allied industries in HTSUS chapters 28-38

The proposed modifications would liberalize the current rules of origin by allowing the use of more non-originating inputs through the expansion of process-based ROOs or changes in tariff shift rules and regional value content requirements.

The ITC found that the proposed modification with respect to fishing lures could result in a significant increase in U.S. imports from CAFTA-DR partner countries but that because such imports are a small portion of total U.S imports of fishing lures the effect on total U.S. imports of these products is likely negligible. For all other products, the likely effects on U.S. imports from CAFTA-DR partner countries are negligible.

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