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What are some of the specifics of the textiles and apparel Rules of Origin under AGOA?

As outlined elsewhere, the general 35% rule does not apply to textiles and apparel, for which a number of separate and different rule categories apply.

AGOA beneficiary countries whose exporters wish to export textiles and apparel to the US under AGOA must first implement a so-called apparel visa system (see a related announcement relating to Madagascar), which pertains to the monitoring and control of inputs such as fabric used in the production of apparel, as well as maintaining adequate records pertaining to the use of any non-originating imported fabric. As of 2023, approximately 25 of the 35 current AGOA beneficiaries had implemented the requisite apparel visa system and were current AGOA beneficiaries, enabling them to ship qualifying apparel under AGOA.

The textile and apparel rules of origin (additional details about these provisions are available here) are set out in more than a dozen separate categories each with their own special classification code, for which the US tariff database uses a special tariff book chapter and associated headings, subheadings and 8-digit sub-divisions (>> see HTS Chapter HTS 98 / Heading HTS 9819 / Sub-heading HTS 9819.11 / division HTS 9819.11.03 onwards).

 

The three most prominent RoO categories (and HTS codes) for textiles and apparel relating to AGOA exports - with the bulk of AGOA trade -  are as follows:

 

Textiles:

 

>> HTS 9819.11.33 

Textiles classified under chapters 50 through 60, as well as chapter 63, which are produced in a LDC AGOA beneficiary, and which are made from fibers, yarns, fabrics, fabric components or components knit-to-shape in one or more such AGOA beneficiaries. (Note that South Africa is currently the only AGOA beneficiary that is not considered an LDC country, meaning that textile preferences do not apply to South African exports)

 

Apparel:

 

>> HTS 9819.11.12 

Apparel articles assembled or knit-to-shape in a LDC AGOA beneficiary, regardless of the country of origin of the fabric or the yarn used to make such articles. This provision applies to almost all current AGOA beneficiaries that qualify for textiles and apparel exports under AGOA, with the exception of South Africa (not a LDC beneficiary under AGOA). South African exporters are therefore more limited in terms of where they can source fabric from and still meet the Rules of Origin provisions. 

 

>> HTS 9819.11.09 

Apparel articles assembled in an AGOA beneficiary country from fabric wholly formed in one or more such AGOA beneficiaries from yarn originating in the US or in an AGOA beneficiary (or former beneficiary) country. This provision applies to South African exporters, as South Africa is not classified as an LDC beneficiary country. This means that apparel must be assembled from AGOA beneficiary country fabrics or knit to shape components, which in turn must have been made from US or AGOA beneficiary country yarns. Exporters from South Africa may however use certain components sourced from third countries (including collars, cuffs, drawstrings, belts attached to garments, padding, shoulder pads) provided the value of such items is less than 25% of the total cost of the garment. Under the de minimis provisions, up to 10% by weight may also comprise non-originating fibers and yarns. 

 

Follow this link to the AGOA textile data section.

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