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KORUS Rule of Origin Changes Would Have Negligible Effect, ITC Says

Monday, July 29, 2019
Sandler, Travis & Rosenberg Trade Report

The International Trade Commission has concluded that proposed modifications to the U.S.-Korea Free Trade Agreement rules of origin for the textile and apparel goods listed below would likely have a negligible short-term effect on U.S. trade under KORUS and total U.S. imports and exports.

- cotton yarns (under HTSUS heading 5206) with viscose rayon staple fibers (under subheadings 5504.10 or 5507.00)

- woven fabrics (under heading 5408) with cuprammonium rayon yarns (under heading 5403.39)

- apparel (under heading 6110) and accessories and parts of apparel (under heading 6117) of certain cashmere yarns (under heading 5108)

The ITC reached this conclusion in light of the relatively low value of current dutiable imports from Korea, the very small share of U.S. textile and apparel imports (0.8 percent) accounted for by Korea, recent trends in Korean exports of the affected articles to other countries, and the limited likelihood of substantial trade diversion. The ITC also notes Korea’s relatively small size as an export destination for U.S. exports of the subject goods and Korea’s limited imports of such goods.

The ITC did find that domestic producers of the subject cotton yarns and apparel items could potentially see a significant adverse effect resulting from the modifications.

For more information on FTA rules of origin and how to comply, please contact Nicole Bivens Collinson at (202) 730-4956 or Elise Shibles at (415) 490-1403.

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