U.S. Customs and Border Protection reports that the second phase of the pocket bag fabric rule for blue denim apparel under the U.S.-Mexico-Canada Agreement will be implemented Jan. 1, 2023.
The first phase of this rule, which took effect Jan. 1, 2022, provides that for apparel goods of HTSUS Chapters 61 and 62 that contain a pocket or pockets, the pocket bag fabric must be formed and finished in the territory of one or more USMCA countries from yarn wholly formed in one or more USMCA countries.
The second phase will apply to woven apparel goods of HTSUS Chapter 62 that are made of blue denim fabric of subheadings 5209.42, 5211.42, 5212.24 and/or 5514.30 and contain a pocket or pockets. If applicable, the pocket bag fabric must be formed and finished in the territory of one or more USMCA countries; i.e., it must be formed from yarn that was wholly formed and finished in the territory of one or more USMCA countries.
CBP notes that all apparel shipments claiming USMCA preference are subject to verification, that it may deny preferential treatment for claims that cannot be substantiated, and that false claims may result in the issuance of penalties.
For more information on trade-related issues affecting textiles and apparel, please contact ST&R’s textile and apparel practice leader Elise Shibles at (415) 490-1403 or via email.
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