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Notice
to Exporters
Ref. : EIC 111/10/1/31
III
Date
: 15 June 1995
Dear Sirs,
Notice
to Exporters : Series 1 (USA) No. 35/95
Export
of Textiles to the USA
Multilateral
Application of North American
Free Trade Agreement (NAFTA) Country of Origin Rules
Uruguay
Round Agreements Act (URAA)
Country of Origin Rules for Textiles and Clothing
The US Customs Service
has announced certain proposed amendments to the US Customs Regulations
in relation to
-
the multilateral
application of NAFTA country of origin rules; and
-
the implementation
of the country of origin provisions embodied in the Uruguay Round
Agreements Act.
Copies of the relevant
Federal Register notices are available for public reference in the Americas
Division, Commercial Relations Branch, 18/F., Trade Department Tower,
700 Nathan Road, Kowloon. (contact Mr. L.C.K. Chung, tel. no. 2398 5405.)
Interested parties may submit written comments to the US Customs Service
(Regulations Branch, Franklin Court, 1301 Constitution Avenue, N.W.,
Washington D.C. 20229) by 17 July 1995 in respect
of (a) above and by 22 June 1995 in respect of (b) above.
Multilateral
Application of NAFTA Origin Rules
-
Exporters were
first informed of a set of proposed amendments in relation to the
multilateral application of NAFTA origin rules in Notice to Exporters
Series 1 (USA) No. 8/94 dated 18 February 1994.
The recently-announced proposed amendments aim to clarify and refine
the previous proposed amendments. Of interest to Hong Kong are amendments
relating to certain bed linen, furnishing articles, handkerchiefs,
shawls and scarves.
-
Instead of forming
of fabric as the sole origin determining criterion as laid down in
the previous proposed amendments, the latest proposed amendments allow
'cutting finished fabric on all sides and hemming all cut edges plus
at least one other subsequent process' as origin conferring determination
for non-quilted bed linen products and furnishing articles. For handkerchiefs,
shawls and scarves, the latest proposed amendments allow a change
from greige fabric by means of bleaching, dyeing, printing, plus cutting
on all sides and stitching as origin conferring determination.
URAA Country of Origin Rules for Textiles & Clothing
-
The US Uruguay
Round Agreements Act (URAA) contains provisions for changing the US
origin rules for imported textiles and clothing products, and requires
the US Secretary of the Treasury to prescribe rules implementing the
principles in the Act not later than 1 July 1995 for implementation
on 1 July 1996.
-
Salient features
of the proposed implementing regulations recently announced by US
Customs in this relation include :
-
For apparel,
other than apparel made of knit-to-shape components, the country
of origin is the country where the apparel is wholly assembled.
-
For apparel
made of knit-to-shape components, the country of origin is the country
in which the components are knitted.
-
For fabric,
the country origin is the country where the fabric is formed.
-
For home furnishings
and other made-up textiles articles of Chapter 63 of the Harmonized
Tariff Schedule of the United States (HTSUS) the country of origin
is the country in which the fabric is formed.
The term 'wholly
assembled' is defined to mean combining all components in a single country,
territory, or insular possession. Minor attachments and minor embellishments
(e.g. appliques, beads, spangles, embroidery, buttons)
and minor subassemblies (e.g. collars, cuffs, plackets, pockets) will
not affect the status of a good as 'wholly assembled' in a single country,
territory, or insular possession. Further, the regulations also provide
for multi-country assembly and the determination of origin by the last
country of important assembly.
-
The application
of NAFTA country of origin rules on textiles and clothing imports
will lapse once the origin rules under the URAA take effect.
Enquiries
-
Should you require
further information on the subject, please contact the following officers
:
| Trade
Controls Officer |
Tel.
No. |
|
| Ms
H.K. Ho |
2398
5423 ) |
Group
I Categories |
| Mr
K.K. Cheung
Ms Y.K. Au
|
2398
5419 )
2398 5420 )
|
Group
II Cotton Specific Limit Categories
|
| Mr
Y.S. Ip |
2398
5421) |
Group
II MMF Specific Limit and Basket Categories
|
| Mr
K.C. Yu |
2398
5422 ) |
Group
II Wool and MMF Specific Limit Garment Categories and Wool Basket
Categories
|
| Mr
Y.W. Lam |
2398
5589 ) |
Group
II Cotton and MMF Specific Limit Categories and Cotton Basket Categories
|
| Mr
H.L. Chan |
2398
5426 ) |
Group
III and Sweaters Categories of Silk Blend and/or Non-cotton Vegetable
Fibre
|
Yours faithfully,
(Miss Grace Lai)
for Director-General
of Trade
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