A proposed modification to the U.S.-Korea free trade agreement rules of origin for certain fabrics of HTSUS heading 5408 made from textured and non-textured triacetate filament yarns of subheading 5403.33 appears likely to move ahead after a recent International Trade Commission report.

The U.S. and Korea announced in July a preliminary agreement on this change, which would allow woven fabrics of artificial filament yarn made in Korea or the U.S. to be eligible for preferential treatment under KORUS when made with non-originating triacetate yarn.

The ITC has now determined that U.S. imports of and demand for the affected articles is small and that the likely effect of the proposed change on imports under KORUS and total U.S. imports of these products is negligible. The ITC states that there would also be little to no effect on U.S. production or exports of the affected articles because there are no known domestic producers of the articles directly affected by the proposed change.

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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