2007 DR-CAFTA TPL for Certain Non-Originating Nicaragua Cotton/MMF Apparel Decreased
The Committee for the Implementation of Textile Agreements has issued a notice announcing that the U.S.-Dominican Republic-Central America Free Trade Agreement 2007 tariff preference level for certain non-originating Nicaragua apparel of cotton or man-made fiber, or subject to cotton or MMF restraints,in HTS Chapter 99, Subchapter XV, U.S. Note 15 has been decreased to 97,584,339 SME (from 100,000,000 SME).
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According to CITA, this TPL was decreased to account for the shortfall in meeting the one-to-one commitment for cotton and MMF woven trousers exported from Nicaragua to the U.S.
(The Pension Protection Act of 2006 (Public Law 109-280), contained a provision which authorized the President to proclaim a reduction in the overall limit in the DR-CAFTA1 TPL for Nicaragua if it is determined that Nicaragua has failed to comply with a commitment regarding the purchase of U.S. trouser fabric.
CITA notes that Nicaragua had agreed that for each SME of exports of cotton and MMF apparel woven trousers entered under the TPL, Nicaragua would export to the U.S. an equal amount of cotton and MMF woven trousers made of U.S. formed fabric of U.S. formed yarn.
For 2006, the shortfall in meeting the one-to-one commitment is 2,415,661 SME, and this amount is being deducted from the 2007 TPL, resulting in the reduced TPL listed above.)
Decreased TPL Was 52.6% Filled as of July 27, 2007
According to Broker Power's weekly textile and apparel quota report, the decreased TPL had the following percentage filled and estimated close dates (using 07/27/07 data):
| Estimated Close Dates | |||
| % Filled | Standard | 4 Week | 1 Week |
|---|---|---|---|
| 52.6% | 12/31/07 | 12/26/07 | 11/30/07 |
(See ITT's Online Archives or 01/03/07 news, 07010310, for BP summary of U.S. Customs and Border Protection's announcement of the 2007 Nicaragua TPL.
See ITT's Online Archives or 08/11/06 news, 06081115, for BP summary of the Nicaragua TPL provisions in P.L. 109-280.)
DR-CAFTA is also abbreviated as "CAFTA-DR."
CITA contact - Richard Stetson (202) 482-3400
CITA notice (FR Pub 07/24/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-14320.pdf.