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Apparel Tariff Preference Level for Nicaragua Lowered

Monday, July 01, 2013
Sandler, Travis & Rosenberg Trade Report

Effective July 1, the Committee for the Implementation of Textile Agreements is reducing to 98,447,866 square meters equivalent the 2013 tariff preference level under DR-CAFTA for non-originating apparel goods of Nicaragua. This decrease accounts for the shortfall in meeting the one-to-one commitment for cotton and manmade fiber woven trousers exported from Nicaragua to the U.S.

For each SME of exports of cotton and manmade fiber woven trousers entered under the TPL, Nicaragua has agreed to export to the U.S. an equal amount of cotton and manmade fiber woven trousers made of U.S.-formed fabric of U.S.-formed yarn. Any shortfall in meeting this commitment that is not rectified by April 1 of the succeeding year is applied against the TPL for the succeeding year. For 2012, the shortfall was 1,552,134 SMEs, an amount that is now being deducted from the 2013 TPL.

The Nicaragua TPL is scheduled to expire at the end of 2014 but would be extended for ten eyars under a bill introduced recently in the Senate.

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