Monday, June 20, 2016

Proposed Chile FTA Exception from Yarn Forward Rule for Certain Filament Rayon

The United States International Trade Commission ("USITC") is seeking input on a new investigation concerning proposed modifications to the United States-Chile Free Trade Agreement ("FTA") rules of origin.

The investigation, Probable Economic Effect of Certain Modifications to the U.S.-Chile FTA Rules of Origin, was requested by the U.S. Trade Representative ("USTR") in a letter received on May 24, 2016. The letter included an attachment detailing the articles affected by the proposed modifications. The request covers woven fabric of artificial filament yarns.

As requested by the USTR, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed U.S.-Chile FTA rules of origin modifications on U.S. trade under the Agreement, total U.S. trade, and on domestic producers of the affected articles.

The USITC expects to submit its advice to the USTR by August 24, 2016. A public version of the report, with all confidential business information deleted, will be released as soon as possible thereafter.

The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on July 11, 2016.

The change would allow non-originating rayon yarn (subheadings 5403.10, 5403.31, 5403.32, and 5403.41 Harmonized Tariff Schedule of the United States ("HTSUS") in the production of woven fabric containing 85 percent or more by weight of artificial filament in the case of fabric that is dyed (5408.22 HTSUS) or is of yarns of different colors (5408.23 HTSUS).

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can learn more abut the U.S.-Chile FTA at You will need to enter your username and password. If you do not know your username and password email David Trumbull at

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