Chapter 15, Section 2703a, Subsection (b) · 19 U.S.C. Chapter 15 — CARIBBEAN BASIN ECONOMIC RECOVERY

Contents

(b)

(1)

(A)Apparel articles described in subparagraph (B) of a producer or entity controlling production that are imported directly from Haiti or the Dominican Republic shall enter the United States free of duty during the initial applicable 1-year period and any 1-year period thereafter, subject to the limitations set forth in subparagraphs (B) and (C), and subject to subparagraph (D).

(B)

(i)In the initial applicable 1-year period and any 1-year period thereafter, apparel articles described in this paragraph are apparel articles that are wholly assembled, or are knit-to-shape, in Haiti from any combination of fabrics, fabric components, components knit-to-shape, and yarns, only if, for each entry in that 1-year period, the sum of—

(I)the cost or value of the materials produced in Haiti or one or more countries described in clause (iii), or any combination thereof, plus

(II)the direct costs of processing operations (as defined in section 2703(a)(3) of this title) performed in Haiti or one or more countries described in clause (iii), or any combination thereof,

(ii)In calculating cost or value under clause (i)(I), there shall be deducted the cost or value of—

(I)any foreign materials that are used in the production of the apparel articles in Haiti; and

(II)any foreign materials that are used in the production of the materials described in clause (i)(I).

(iii)The countries referred to in clause (i) are the following:

(I)The United States.

(II)Any country that is a party to a free trade agreement with the United States that is in effect on December 20, 2006, or that enters into force thereafter.

(III)Any country designated as a beneficiary country under section 2703(b)(5)(B) of this title.

(IV)Any country designated as a beneficiary country under section 2466a(a)(1) of this title, if a finding has been made by the President or the President’s designee, and published in the Federal Register, that the country has satisfied the requirements of section 3722 of this title.

(V)Any country designated as a beneficiary country under section 3203(b)(6)(B) of this title.

(iv)

(I)In the initial applicable 1-year period, the requirements under clause (i) relating to applicable percentage may also be met for articles of a producer or an entity controlling production that enter during the initial applicable 1-year period by aggregating—

(aa)the cost or value of materials under subclause (I) of clause (i), and

(bb)the direct costs of processing operations under subclause (II) of clause (i),

of all apparel articles of that producer or entity controlling production that are wholly assembled, or are knit-to-shape, in Haiti and are entered during the initial applicable 1-year period.

is not less than the applicable percentage (as defined in clause (v)(I)) of the declared customs value of such apparel articles.

(II)In any 1-year period after the initial applicable 1-year period, the requirements under clause (i) relating to applicable percentage may also be met for articles of a producer or an entity controlling production that enter during the 1-year period by aggregating—

(aa)the cost or value of materials under subclause (I) of clause (i), and

(bb)the direct costs of processing operations under subclause (II) of clause (i),

(III)In calculating cost or value under subclause (I)(aa) or (II)(aa), there shall be deducted the cost or value of—

(aa)any foreign materials that are used in the production of the apparel articles in Haiti; and

(bb)any foreign materials that are used in the production of the materials described in subclause (I)(aa) or (II)(aa) (as the case may be).

(IV)Entries of apparel articles that receive preferential treatment under any provision of law other than this subparagraph or are subject to the “General” column 1 rate of duty under the HTS are not included in the annual aggregation under subclause (I) or (II) unless the producer or entity controlling production elects, at the time the annual aggregation calculation is made, to include such entries in such aggregation.

of all apparel articles of that producer or entity controlling production that are wholly assembled, or are knit-to-shape, in Haiti and are entered during the preceding 1-year period.

United States Government work; public domain under 17 U.S.C. § 105.

Defined terms · 24

Show every defined term

applicable percentage
means 60 percent or more on and after December 20, 2017.
appropriate congressional committees
means the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives.
beneficiary country
includes the Commonwealth of Puerto Rico, the United States Virgin Islands, and any former beneficiary country.
category
has the meaning given that term in paragraph (2A)(E) of this subsection.
CBTPA
means the United States-Caribbean Basin Trade Partnership Act.
core labor standards
means—
direct costs of processing operations
includes, but is not limited to— Such phrase does not include costs which are not directly attributable to the merchandise concerned or are not costs of manufacturing the product, such as (i) profit, and (ii) general expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen’s salaries, commissions or expenses.
entered
means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States.
foreign material
means a material produced in a country other than Haiti or any country described in clause (iii).
former beneficiary country
means a country that ceases to be designated as a beneficiary country under this chapter because the country has become a party to a free trade agreement with the United States.
former CBTPA beneficiary country
means a country that ceases to be designated as a CBTPA beneficiary country under this chapter because the country has become a party to a free trade agreement with the United States.
FTAA
means the Free Trade Area of the Americas.
HTS
means Harmonized Tariff Schedule of the United States.
initial applicable 1-year period
means the 1-year period beginning on December 20, 2006.
NAFTA
means the North American Free Trade Agreement.
perishable product
means—
Plan
means a stable food production plan that consists of measures and proposals designed to ensure that the present level of food production in, and the nutritional level of the population of, a beneficiary country will not be adversely affected by changes in land use and land ownership that will result if increased production of sugar and beef products is undertaken in response to the duty-free treatment extended under this chapter to such products.
qualifying knit fabric
means fabric or knit-to-shape components wholly formed or knit-to-shape in any country or any combination of countries described in paragraph (1)(B)(iii), from yarns wholly formed in the United States, except that—
qualifying woven fabric
means fabric wholly formed in the United States from yarns wholly formed in the United States, except that—
sugar and beef products
means—
the Annex
means Annex 300–B of the North American Free Trade Agreement entered into between the United States, Mexico, and Canada on December 17, 1992.
transition period
means, with respect to a CBTPA beneficiary country, the period that begins on October 1, 2000, and ends on the earlier of—
USMCA
has the meaning given that term in section 4502 of this title.
wire harness automotive component
means any article provided for in subheading 8544.30.00 of the HTS, as in effect on December 20, 2006.