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When does a product qualify for AGOA duty-free treatment?

In order for a product to qualify for AGOA preferences, a number of factors are considered.

These include the following: 

(1) the product must be included in the list of AGOA eligible products (such products are denoted with the special program indicator 'D' in the US tariff schedule), or they must be a qualifying apparel or textile item;

(2) It must be imported into the United States directly from the AGOA beneficiary country or pass through another country in a sealed container and addressed to a location in the United States;

(3) The article must be the growth, product, or manufacture of the AGOA beneficiary country by fulfilling the relevant Rules of Origin requirements for general or apparel items, respectively

(4) If foreign materials are imported into the AGOA country first, to be used in the production of an AGOA-eligible product, the sum of the cost of the materials produced in the AGOA beneficiary country, plus the costs of processing, must equal at least 35 percent of the product’s appraised value when the product is sold for export into the United States (see section on Rules of Origin). Apart from the 35% local content requirement, any imported non-originating materials used in the calculation of local content (35%) must have been substantially transformed locally in the exporting country claiming AGOA origin through a double transformation (into a separate and distinct intermediate article of commerce having a distinctive name, character or use - see United States v. Gibson-Thomsen Co., Inc., 27 CCPA 269 (1940).

(5) In the case of clothing/apparel, the 35% rule does not apply directly, instead, the goods need to comply with the respective textile and apparel Rules of Origin requirements and be entered into the US under their respective RoO category;

(6) The US importer must request duty-free treatment under AGOA on the relevant customs entry form (Form 7501) by placing an “D” in column 27 in front of the US tariff number that identifies the imported article.

Find additional details at this link on AGOA's product eligibility principles.

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