Preferential treatment
1
Products covered
Apparel articles assembled in one or more beneficiary sub-Saharan African countries
Other apparel articles assembled in one or more beneficiary sub-Saharan African countries
Apparel articles sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries with thread formed in the United States from fabrics wholly formed in the United States and cut in one or more beneficiary sub-Saharan African countries from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed in the United States).
Apparel articles from regional fabric or yarns
Limitations on benefits
In general
Preferential treatment under this paragraph shall be extended in the 1-year period beginning , and in each of the 21 succeeding 1-year periods, to imports of apparel articles in an amount not to exceed the applicable percentage of the aggregate square meter equivalents of all apparel articles imported into the United States in the preceding 12-month period for which data are available.
Applicable percentage
Surge mechanism
Import monitoring
The Secretary of Commerce shall monitor imports of articles described in this paragraph on a monthly basis to determine if there has been a surge in imports of such articles. In order to permit public access to preliminary international trade data and to facilitate the early identification of potentially disruptive import surges, the Director of the Office of Management and Budget may grant an exception to the publication dates established for the release of data on United States international trade in covered articles, if the Director notifies Congress of the early release of the data.
Determination of damage or threat thereof
Whenever the Secretary of Commerce determines, based on the data described in clause (i), or pursuant to a written request made by an interested party, that there has been a surge in imports of an article described in this paragraph from a beneficiary sub-Saharan African country, the Secretary shall determine whether such article from such country is being imported in such increased quantities as to cause serious damage, or threat thereof, to the domestic industry producing a like or directly competitive article. If the Secretary’s determination is affirmative, the President shall suspend the duty-free treatment provided for such article under this paragraph. If the inquiry is initiated at the request of an interested party, the Secretary shall make the determination within 60 days after the date of the request.
Factors to consider
In determining whether a domestic industry has been seriously damaged, or is threatened with serious damage, the Secretary shall examine the effect of the imports on relevant economic indicators such as domestic production, sales, market share, capacity utilization, inventories, employment, profits, exports, prices, and investment.
Procedure
Initiation
The Secretary of Commerce shall initiate an inquiry within 10 days after receiving a written request and supporting information for an inquiry from an interested party. Notice of initiation of an inquiry shall be published in the Federal Register.
Participation by interested parties
The Secretary of Commerce shall establish procedures to ensure participation in the inquiry by interested parties.
Notice of determination
The Secretary shall publish the determination described in clause (ii) in the Federal Register.
Information available
If relevant information is not available on the record or any party withholds information that has been requested by the Secretary, the Secretary shall make the determination on the basis of the facts available. When the Secretary relies on information submitted in the inquiry as facts available, the Secretary shall, to the extent practicable, corroborate the information from independent sources that are reasonably available to the Secretary.
Interested party
For purposes of this subparagraph, the term “interested party” means any producer of a like or directly competitive article, a certified union or recognized union or group of workers which is representative of an industry engaged in the manufacture, production, or sale in the United States of a like or directly competitive article, a trade or business association representing producers or sellers of like or directly competitive articles, producers engaged in the production of essential inputs for like or directly competitive articles, a certified union or group of workers which is representative of an industry engaged in the manufacture, production, or sale of essential inputs for the like or directly competitive article, or a trade or business association representing companies engaged in the manufacture, production, or sale of such essential inputs.
Sweaters knit-to-shape from cashmere or merino wool
Cashmere
Sweaters, in chief weight of cashmere, knit-to-shape in one or more beneficiary sub-Saharan African countries and classifiable under subheading 6110.10 of the Harmonized Tariff Schedule of the United States.
Merino wool
Sweaters, 50 percent or more by weight of wool measuring 21.5 microns in diameter or finer, knit-to-shape in one or more beneficiary sub-Saharan African countries.
Apparel articles wholly assembled from fabric or yarn not available in commercial quantities in the United States
In general
Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries, to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabrics or yarns, under Annex 4–B of the USMCA.
Additional apparel articles
Removal of designation of fabrics or yarns not available in commercial quantities
If the President determines that any fabric or yarn was determined to be eligible for preferential treatment under subparagraph (A) on the basis of fraud, the President is authorized to remove that designation from that fabric or yarn with respect to articles entered after such removal.
Handloomed, handmade, folklore articles and ethnic printed fabrics
In general
A handloomed, handmade, folklore article or an ethnic printed fabric of a beneficiary sub-Saharan African country or countries that is certified as such by the competent authority of such beneficiary country or countries. For purposes of this section, the President, after consultation with the beneficiary sub-Saharan African country or countries concerned, shall determine which, if any, particular textile and apparel goods of the country (or countries) shall be treated as being handloomed, handmade, or folklore articles or an ethnic printed fabric.
Requirements for ethnic printed fabric
Apparel articles assembled in one or more beneficiary sub-Saharan African countries from United States and beneficiary sub-Saharan African country components
Apparel articles sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries with thread formed in the United States from components cut in the United States and one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries from fabric wholly formed in the United States from yarns wholly formed in the United States, or from components knit-to-shape in the United States and one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States).
Textile articles originating entirely in one or more lesser developed beneficiary sub-Saharan African countries
Textile and textile articles classifiable under chapters 50 through 60 or chapter 63 of the Harmonized Tariff Schedule of the United States that are products of a lesser developed beneficiary sub-Saharan African country and are wholly formed in one or more such countries from fibers, yarns, fabrics, fabric components, or components knit-to-shape that are the product of one or more such countries.
Lesser developed countries
Preferential treatment of products through
Products covered
2
Applicable percentage
Applicability of other provisions
Subsection (b)(3)(B) applies to apparel articles eligible for preferential treatment under this subsection to the same extent as that subsection applies to apparel articles eligible for preferential treatment under subsection (b)(3).
Definition
Treatment of quotas on textile and apparel imports from Kenya and Mauritius
Special rules
Findings and trimmings
General rule
An article otherwise eligible for preferential treatment under this section shall not be ineligible for such treatment because the article contains findings or trimmings of foreign origin, if the value of such findings and trimmings do not exceed 25 percent of the cost of the components of the assembled article. Examples of findings and trimmings are sewing thread, hooks and eyes, snaps, buttons, “bow buds”, decorative lace trim, elastic strips, and zippers, including zipper tapes and labels. Elastic strips are considered findings or trimmings only if they are each less than 1 inch in width and used in the production of brassieres.
Certain interlinings
General rule
An article otherwise eligible for preferential treatment under this section shall not be ineligible for such treatment because the article contains certain interlinings of foreign origin, if the value of such interlinings (and any findings and trimmings) does not exceed 25 percent of the cost of the components of the assembled article.
Interlinings described
Interlinings eligible for the treatment described in clause (i) include only a chest type plate, a “hymo” piece, or “sleeve header”, of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments.
Termination of treatment
The treatment described in this subparagraph shall terminate if the President makes a determination that United States manufacturers are producing such interlinings in the United States in commercial quantities.
Exception
In the case of an article described in subsection (b)(2), sewing thread shall not be treated as findings or trimmings under subparagraph (A).
De minimis rule
An article otherwise eligible for preferential treatment under this section shall not be ineligible for such treatment because the article contains fibers or yarns not wholly formed in the United States or one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries if the total weight of all such fibers and yarns is not more than 10 percent of the total weight of the article.
Certain components
Definitions
Agreement on textiles and clothing
section 3511(d)(4) of this titleThe term “Agreement on Textiles and Clothing” means the Agreement on Textiles and Clothing referred to in .
Beneficiary sub-Saharan African country, etc.
section 2466a(c) of this titleThe terms “beneficiary sub-Saharan African country” and “beneficiary sub-Saharan African countries” have the same meaning as such terms have under .
USMCA
section 4502 of this titleThe term “USMCA” has the meaning given that term in .
Former sub-Saharan African country
3
Enter; entered
The terms “enter” and “entered” refer to the entry, or withdrawal from warehouse for consumption, in the customs territory of the United States.
Effective date
This section takes effect on , and shall remain in effect through .
Pub. L. 106–200, title I, § 112114 Stat. 258Pub. L. 107–210, div. C, title XXXI, § 3108(a)116 Stat. 1038Pub. L. 108–274, § 7(b)118 Stat. 824–826Pub. L. 108–429, title II, § 2004(k)(1)118 Stat. 2595Pub. L. 109–432, div. D, title VI120 Stat. 3190–3194Pub. L. 110–436, § 3(a)122 Stat. 4980Pub. L. 112–163, § 1(a)126 Stat. 1274Pub. L. 114–27, title I, § 103(b)129 Stat. 364Pub. L. 116–260, div. O, title VI, § 602(a)(1)134 Stat. 2152(, , ; , , ; –(f), , ; , , ; , §§ 6002–6004, , ; , (d), , , 4981; , , ; , , ; , , .)
Editorial Notes
References in Text
Section 2466a(c) of this titlesection 2466a(e) of this titlePub. L. 114–27, title I, § 105(b)129 Stat. 366, referred to in subsec. (a), was redesignated by , (c), , .
section 1202 of this titleThe Harmonized Tariff Schedule of the United States, referred to in subsec. (b), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under .
Pub. L. 106–200114 Stat. 252section 3701 of this titleThis chapter, referred to in subsec. (f)(4), was in the original “this Act”, and was translated as reading “this title”, meaning title I of , , , which is classified principally to this chapter, to reflect the probable intent of Congress. For complete classification of title I to the Code, see Short Title note set out under and Tables.
Amendments
Pub. L. 116–260, § 602(a)(1)(A)2020—Subsec. (b)(5)(A). , substituted “Annex 4–B of the USMCA” for “Annex 401 to the NAFTA”.
Pub. L. 116–260, § 602(a)(1)(B)Subsec. (f)(3). , added par. (3) and struck out former par. (3) which defined “NAFTA”.
Pub. L. 114–27, § 103(b)(2)(A)2015—Subsec. (b)(3)(A)(i). , substituted “21 succeeding” for “11 succeeding”.
Pub. L. 114–27, § 103(b)(2)(B)Subsec. (b)(3)(A)(ii)(II). , substituted “” for “”.
Pub. L. 114–27, § 103(b)(3)(A)Subsec. (c)(1). , substituted “” for “” in heading.
Pub. L. 114–27, § 103(b)(3)(B)Subsec. (c)(1)(A). , substituted “” for “”.
Pub. L. 114–27, § 103(b)(3)(C)Subsec. (c)(1)(B)(ii). , substituted “” for “”.
Pub. L. 114–27, § 103(b)(1)Subsec. (g). , substituted “” for “”.
Pub. L. 112–163, § 1(a)(1)2012—Subsec. (c)(1). , substituted “2015” for “2012” in heading.
Pub. L. 112–163, § 1(a)(2)Subsec. (c)(1)(A). , substituted “2015” for “2012”.
Pub. L. 112–163, § 1(a)(3)Subsec. (c)(1)(B)(ii). , substituted “2015” for “2012”.
Pub. L. 110–436, § 3(d)Pub. L. 109–432, § 6002(a)(2)(B)2008—Subsec. (b)(3)(B), (C). , made technical correction to directory language of . See 2006 Amendment note below.
Pub. L. 110–436, § 3(a)(1)Subsec. (b)(6)(A). , substituted “ethnic” for “ethic” in second sentence.
Pub. L. 110–436, § 3(a)(2)(A)Subsec. (c)(1)(A). , struck out “, and subject to paragraph (2),” after “described in subsection (b)”.
Pub. L. 110–436, § 3(a)(2)(B)Subsec. (c)(2). , (C)(ii), redesignated par. (4) as (2) and struck out former par. (2) which provided special rules for products in commercial quantities in Africa.
Pub. L. 110–436, § 3(a)(2)(B)Subsec. (c)(3). , (D), added par. (3) and struck out former par. (3) which provided for removal of designation of fabrics or yarns not available in commercial quantities.
Pub. L. 110–436, § 3(a)(2)(C)Subsec. (c)(4). , substituted “Subsection (b)(3)(B)” for “Subsection (b)(3)(C)” and redesignated par. (4) as (2).
Pub. L. 110–436, § 3(a)(2)(D)Subsec. (c)(5). , struck out par. (5) which defined “applicable 1-year period”, “Commission”, “enter” and “entry”, and “lesser developed beneficiary sub-Saharan African country”.
Pub. L. 109–432, § 6002(a)(2)(A)2006—Subsec. (b). , substituted “Subject to subsection (c), the” for “The” in introductory provisions.
Pub. L. 109–432, § 6002(a)(2)(B)Pub. L. 110–436, § 3(d)Subsec. (b)(3)(B), (C). , as amended by , redesignated subpar. (C) as (B) and struck out former subpar. (B), which related to extension of preferential treatment though , for apparel articles wholly assembled, or knit-to-shape and wholly assembled, or both, in one or more lesser developed beneficiary sub-Saharan African countries.
Pub. L. 109–432, § 6003(1)Subsec. (b)(5)(C). , added subpar. (C).
Pub. L. 109–432, § 6002(b)Subsec. (b)(8). , added par. (8).
Pub. L. 109–432, § 6002(a)(1)Subsecs. (c), (d). , (3), added subsec. (c) and redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).
Pub. L. 109–432, § 6002(a)(1)Subsec. (e). , redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).
Pub. L. 109–432, § 6002(c)Subsec. (e)(3). , substituted “subsections (b) and (c)” for “subsection (b)” in concluding provisions.
Pub. L. 109–432, § 6002(a)(1)Subsec. (f). , redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).
Pub. L. 109–432, § 6003(2)Subsec. (f)(5). , added par. (5).
Pub. L. 109–432, § 6004Subsec. (g). , substituted “2015” for “2008”.
Pub. L. 109–432, § 6002(a)(1), redesignated subsec. (f) as (g).
Pub. L. 108–274, § 7(b)(1)2004—Subsec. (b)(1). , substituted “or both (including” for “(including”.
Pub. L. 108–274, § 7(b)(2)(A)Subsec. (b)(3). , in introductory provisions, substituted “in the United States or one or more beneficiary sub-Saharan African countries or former beneficiary sub-Saharan African countries, or both” for “either in the United States or one or more beneficiary sub-Saharan African countries” wherever appearing and “whether or not the apparel articles are also made from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (1) or (2) (unless the apparel articles are made exclusively from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (1) or (2)), subject to the following:” for “subject to the following:”.
Pub. L. 108–274, § 7(b)(2)(B)Subsec. (b)(3)(A), (B). , added subpars. (A) and (B) and struck out headings and text of former subpars. (A) and (B) which set forth differing percentages and time periods applicable to the preferential treatment of imports of apparel articles from beneficiary countries and to special rules for lesser developed countries.
Pub. L. 108–429Subsec. (b)(3)(B)(iv). added cl. (iv).
Pub. L. 108–274, § 7(b)(3)Subsec. (b)(5)(A). , amended heading and text generally. Prior to amendment, text read as follows: “Apparel articles that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more beneficiary sub-Saharan African countries, from fabric or yarn that is not formed in the United States or a beneficiary sub-Saharan African country, to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabric or yarn, under Annex 401 to the NAFTA.”
Pub. L. 108–274, § 7(c)Subsec. (b)(6). , amended heading and text generally. Prior to amendment, text read as follows: “A handloomed, handmade, or folklore article of a beneficiary sub-Saharan African country or countries that is certified as such by the competent authority of such beneficiary country or countries. For purposes of this paragraph, the President, after consultation with the beneficiary sub-Saharan African country or countries concerned, shall determine which, if any, particular textile and apparel goods of the country (or countries) shall be treated as being handloomed, handmade, or folklore articles.”
Pub. L. 108–274, § 7(d)Subsec. (b)(7). , inserted “or former beneficiary sub-Saharan African countries” after “and one or more beneficiary sub-Saharan African countries” in two places.
Pub. L. 108–274, § 7(e)(2)Subsec. (d)(2). , inserted “or former beneficiary sub-Saharan African countries” after “countries” and substituted “10 percent” for “7 percent”.
Pub. L. 108–274, § 7(e)(1)Subsec. (d)(3). , added par. (3).
Pub. L. 108–274, § 7(f)Subsec. (e)(4). , added par. (4).
Pub. L. 107–210, § 3108(a)(1)2002—Subsec. (b)(1). , substituted “Apparel articles assembled in one or more beneficiary sub-Saharan African countries” for “Apparel articles assembled in beneficiary sub-Saharan African countries” in heading and amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: “Apparel articles assembled in one or more beneficiary sub-Saharan African countries from fabrics wholly formed and cut in the United States, from yarns wholly formed in the United States, (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed and cut in the United States) that are—”.
Pub. L. 107–210, § 3108(a)(2)Subsec. (b)(2). , substituted “Other apparel articles assembled in one or more beneficiary sub-Saharan African countries” for “Apparel articles cut and assembled in beneficiary sub-Saharan African countries” in heading and amended text generally. Prior to amendment, text read as follows: “Apparel articles cut in one or more beneficiary sub-Saharan African countries from fabric wholly formed in the United States from yarns wholly formed in the United States, (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed in the United States) if such articles are assembled in one or more beneficiary sub-Saharan African countries with thread formed in the United States.”
Pub. L. 107–210, § 3108(a)(3)(A)Subsec. (b)(3). , substituted “Apparel articles from regional fabric or yarns” for “Apparel articles assembled from regional and other fabric” in heading and amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: “Apparel articles wholly assembled in one or more beneficiary sub-Saharan African countries from fabric wholly formed in one or more beneficiary sub-Saharan African countries from yarn originating either in the United States or one or more beneficiary sub-Saharan African countries (including fabrics not formed from yarns, if such fabrics are classifiable under heading 5602 or 5603 of the Harmonized Tariff Schedule of the United States and are wholly formed and cut in one or more beneficiary sub-Saharan African countries), subject to the following:”.
Pub. L. 107–210, § 3108(a)(3)(B)Subsec. (b)(3)(B). , amended heading and text generally. Prior to amendment, text read as follows:
In general“(i) .—Subject to subparagraph (A), preferential treatment shall be extended through , for apparel articles wholly assembled in one or more lesser developed beneficiary sub-Saharan African countries regardless of the country of origin of the fabric used to make such articles.
Lesser developed beneficiary sub-saharan african country“(ii) .—For purposes of this subparagraph the term ‘lesser developed beneficiary sub-Saharan African country’ means a beneficiary sub-Saharan African country that had a per capita gross national product of less than $1,500 a year in 1998, as measured by the World Bank.”
Pub. L. 107–210, § 3108(a)(4)Subsec. (b)(4)(B). , substituted “21.5 microns” for “18.5 microns”.
Pub. L. 107–210, § 3108(a)(5)Subsec. (b)(7). , added par. (7).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Pub. L. 116–260section 602(g) of div. O of Pub. L. 116–260section 2578b of this titleAmendment by effective , see , set out as a note under .
Effective Date of 2008 Amendment
Pub. L. 110–436, § 3(b)122 Stat. 4980
Effective Date of 2004 Amendment
Pub. L. 108–429, title II, § 2004(k)(2)118 Stat. 2595
Transfer of Functions
section 542 of Title 6Pub. L. 107–296section 211 of Title 6Pub. L. 114–125section 802(b) of Pub. L. 114–125section 211 of Title 6For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of , as modified, set out as a note under . For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in as of , see , as amended generally by , and , set out as a note under .
Increase in Limitation on Certain Benefits
Pub. L. 107–210, div. C, title XXXI, § 3108(b)116 Stat. 1039
Executive Documents
Delegation of Authority
section 2703 of this titleFor delegation of certain authority of the President under this section to the Committee for the Implementation of Textile Agreements and the United States Trade Representative, see Ex. Ord. No. 13191, §§ 1–3, , 66 F.R. 7271, set out as a note under .
Proc. No. 7350. To Implement the African Growth and Opportunity Act and To Designate Eritrea as a Beneficiary Developing Country for Purposes of the Generalized System of Preferences
section 2483 of this titleProc. No. 7350, , 65 F.R. 59321, provided in par. (5) that the United States Trade Representative is authorized to determine whether Kenya and Mauritius have satisfied the requirements of section 3721(c)[d] of this title, is directed to set forth the determination in a notice to be published in the Federal Register and to cause the existing quotas on textile and apparel articles imported into the United States from such country to be eliminated within 30 days after the determination, and is authorized to exercise the authority provided to the President under to embody modifications and technical or conforming changes in the Harmonized Tariff Schedule of the United States.