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Earned Import Allowance Program for Dominican Republic Under Annual Review

Tuesday, March 08, 2016
Sandler, Travis & Rosenberg Trade Report

The International Trade Commission is conducting its annual review of the Earned Import Allowance Program for trousers and certain other garments made in the Dominican Republic.

The EIAP provides an uncapped duty-free benefit for U.S. imports of certain woven cotton bottoms (pants and trousers, bib and brace overalls, breeches and shorts, and skirts and divided skirts) assembled in the Dominican Republic from third-country fabric. To qualify, the bottoms must be accompanied by a certificate documenting the purchase of certain U.S.-produced woven cotton fabric at a ratio of 2:1. Under this formula, for every two units of qualifying “wholly formed” fabric (defined as formed in the U.S. from U.S.-formed yarns) purchased for apparel production in the Dominican Republic, a one-unit credit is received that can be used toward the duty-free importation of apparel into the U.S. that has been manufactured using third-country fabric.

The ITC is required to review this program annually to evaluate its effectiveness and make recommendations for improvements. The ITC has not scheduled a public hearing in connection with this investigation; instead, interested parties are invited to file written submissions no later than April 15. The ITC’s report will be submitted to the House Ways and Means and Senate Finance committees by July 29.

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