USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in February 1, Arthur W. Bodek, Esq.

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1 USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in 2018 February 1, 2018 Arthur W. Bodek, Esq. abodek@gdlsk.com USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

2 Case Study No. 1: Pants Pockets under AGOA Pants cut and sewn in an AGOA LDC from non-african fabric. Precut pieces for inside of back pocket made in Asia and sent to Africa. Problem? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

3 Case Study No. 1: Pants Pockets under AGOA General Rule: Fabric may be non-african. As a rule, components may not be non-african. Certain exceptions collars or cuffs, drawstrings, shoulder pads / other padding, waistbands, attached belt, certain limited elastic straps, elbow patches. Certain findings or trimmings and certain interlinings (defined in the AGOA) 25% of the cost of the components of the assembled article Where does that leave our precut pieces for inside of back pocket? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

4 Case Study No. 1: Pants Pockets under AGOA It depends! USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

5 Case Study No. 1: Pants Pockets under AGOA To be a pocket, an item must be a part. To be a part, the item must be made-up article for purposes of Section XI. Made up defined, in relevant part, as cut otherwise than into squares or rectangles USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

6 Case Study No. 1: Pants Pockets under AGOA Therefore... Good Piece of fabric Bad Component USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

7 Case Study No. 2: Maternity Pants Under CAFTA Pants cut and sewn in a CAFTA country from CAFTA fabric, yarn, etc. Incorporated into the maternity pants was a stretch band at the top made from non-cafta materials. Problem? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

8 Case Study No. 2: Maternity Pants Under CAFTA General Rule: The CAFTA tariff shift rule need only be satisfied with respect to the component that determines the tariff classification. Certain exceptions. One such exception is that fabrics of subheading or heading 6002 (narrow elastic fabrics) must be both formed from yarn and finished in one or more CAFTA countries. Where does that leave our stretch band? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

9 It depends! Case Study No. 2: Maternity Pants Under CAFTA USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

10 Case Study No. 2: Maternity Pants Under CAFTA To be a narrow elastic fabric, an item must be a fabric. If the item is a made-up article for purposes of Section XI, then it is not fabric. Made up defined, in relevant part, to include items Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length. USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

11 Case Study No. 2: Maternity Pants Under CAFTA Therefore... Good Component Bad Fabric USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

12 Case Study No. 3: Pockets under CAFTA Pants cut and sewn in a CAFTA country from CAFTA fabric, yarn, etc. Lined pockets - Front of pocket bag made from CAFTA fabric and yarn. Back (or lining ) made from non-cafta materials. Problem? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

13 Case Study No. 3: Pockets under CAFTA General Rule: Subject to exceptions, pocket bag fabric must be formed and finished in the CAFTA territory from yarn wholly formed in the CAFTA territory. Linings need only be from CAFTA territory for certain garments and only if part of the visible lining area. Where does that leave our two-sided lined pockets? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

14 Case Study No. 3: Pockets under CAFTA Problem USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

15 Case Study No. 3: Pockets under CAFTA Importer confused the CAFTA s pocket bag requirement and the visible lining requirement basically combining the two principles into one requirement. They had even consulted with the CAFTA country s trade office. USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

16 Case Study No. 3: Pockets under CAFTA Result? USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

Thank You! 9889620 Arthur W. Bodek, Esq. abodek@gdlsk.

17 Thank You! Arthur W. Bodek, Esq USFIA Fashion Forward: San Francisco / Key FTA Case Studies to Consider in

Martial Arts Product Catalog. A BIT, ABOUT US Our company has provided high quality uniform & accessories for over 32 years. Manager:

Martial Arts Product Catalog. A BIT, ABOUT US Our company has provided high quality uniform & accessories for over 32 years. Manager: Martial Arts A BIT, ABOUT US Our company has provided high quality uniform & accessories for over 32 years. ARTICLE #: MA-101 - INCLUDES WHITE BELT, JACKET AND PANTS - ELASTIC WAISTBAND WITH TIE - EASY