Background

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 a 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) wholly 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. For every two square meter equivalents of qualifying fabric (woven cotton fabric wholly formed in the U.S. from yarns wholly formed in the U.S. that are suitable for use in the manufacture of woven cotton bottoms) purchased for apparel production in the Dominican Republic, a one SME credit is received that can be used toward the duty-free importation into the U.S. of woven cotton bottoms that have 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 30. The ITC’s report will be submitted to the House Ways and Means and Senate Finance committees by Aug. 3.

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