Apparel Imports from Sub-Saharan Africa Duty-Free Cap Set
Summary
The U.S. Department of Commerce has published the new 12-month cap for duty- and quota-free apparel imports from Sub-Saharan Africa under the African Growth and Opportunity Act (AGOA). The new limitations become applicable on October 1, 2024, with specific quantities set for general imports and a sub-limit for lesser-developed countries.
What changed
The U.S. Department of Commerce, through the Committee for the Implementation of Textile Agreements (CITA), is publishing the quantitative limitation for duty- and quota-free apparel imports from designated Sub-Saharan African countries under the African Growth and Opportunity Act (AGOA). For the period October 1, 2024, through September 30, 2025, the aggregate quantity is set at 1,757,888,503 square meters equivalent, with 878,944,252 square meters equivalent allocated for apparel from lesser-developed countries. Imports exceeding these caps will be subject to standard tariffs.
Importers and exporters dealing with apparel from Sub-Saharan Africa must be aware of these new quantitative limits. Compliance requires tracking import volumes to ensure they remain within the specified caps to benefit from duty-free treatment. Exceeding these limits will result in the imposition of applicable tariffs, impacting cost and profitability. This rule is effective for the upcoming 12-month period starting October 1, 2024.
What to do next
- Monitor import volumes to ensure compliance with the specified duty-free caps for apparel from Sub-Saharan Africa.
- Adjust import strategies to account for the new quantitative limitations effective October 1, 2024.
- Consult with customs brokers and trade compliance specialists regarding adherence to AGOA provisions.
Penalties
Apparel articles entered in excess of these quantities will be subject to otherwise applicable tariffs.
Source document (simplified)
Content
ACTION:
Publishing the new 12-month cap on duty- and quota-free benefits.
DATES:
The new limitations become applicable October 1, 2024.
FOR FURTHER INFORMATION CONTACT:
Thomas Newberg, International Trade Specialist, Office of Textiles and Apparel, U.S. Department of Commerce, (202)-482-7578.
SUPPLEMENTARY INFORMATION:
Authority: Title I, section 112(b)(3) of the Trade and Development Act of 2000 (TDA 2000), Public Law (Pub. L.) 106-200, as amended by
Division B, Title XXI, section 3108 of the Trade Act of 2002, Public Law 107-210; Section 7(b)(2) of the AGOA Acceleration
Act of 2004, Public Law 108-274; Division D, title VI, section 6002 of the Tax Relief and Health Care Act of 2006 (TRHCA 2006),
Public Law 109-432, and section 1 of The African Growth and Opportunity Amendments (Public Law 112-163), August 10, 2012;
Presidential Proclamation 7350 of October 2, 2000 (65 FR 59321); Presidential Proclamation 7626 of November 13, 2002 (67 FR
69459); and title I, section 103(b)(2) and (3) of the Trade Preferences Extension Act of 2015, Public Law 114-27, June 29,
2015.
Title I of TDA 2000 provides for duty- and quota-free treatment for certain textile and apparel articles imported from designated
beneficiary sub-Saharan African countries. Section 112(b)(3) of TDA 2000 provides duty- and quota-free treatment for 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 in the United States or one or more beneficiary sub-Saharan
African countries. This preferential treatment is also available for apparel articles 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, subject
to quantitative limitation. Public Law 114-27 extended this special rule for lesser-developed countries through September
30, 2025.
The AGOA Acceleration Act of 2004 provides that the quantitative limitation for the 12-month period beginning October 1, 2024
will be an amount not to exceed 7 percent 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. See section 112(b)(3)(A)(ii)(I) of TDA 2000, as amended by section 7(b)(2)(B) of the AGOA Acceleration Act of 2004. Of this overall
amount, apparel imported under the special rule for lesser-developed countries is limited to an amount not to exceed 3.5 percent
of all apparel articles imported into the United States in the preceding 12-month period. See section 112(b)(3)(B)(ii)(II) of TDA 2000, as amended by section 6002(a)(3) of TRHCA 2006. The Annex to Presidential Proclamation
7350 of October 2, 2000 directed CITA to publish the aggregate quantity of imports allowed during each 12-month period in
the
Federal Register
.
For the one-year period, beginning on October 1, 2024, and extending through September 30, 2025, the aggregate quantity of
imports eligible for preferential treatment under these provisions is 1,757,888,503 square meters equivalent. Of this amount,
878,944,252 square meters equivalent is available to apparel articles imported under the special rule for lesser-developed
countries. Apparel articles entered in excess of these quantities will be subject to otherwise applicable tariffs.
These quantities are calculated using the aggregate square meter equivalents of all apparel articles imported into the United
States, derived from the set of Harmonized System lines listed in the Annex to the World Trade Organization Agreement on Textiles
and Clothing (ATC), and the conversion factors for units of measure into square meter equivalents used by the United States
in implementing the ATC.
Tyler Beckelman, Chairman, Committee for the Implementation of Textile Agreements. [FR Doc. 2024-22397 Filed 9-27-24; 8:45 am] P
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