Duty Reduction and Suspension on Fine Wool Expired January 1st

The following five tariff lines related to duty suspensions or reductions under the Section 501 of the Trade and Development Act of 2000 Expired as of January 1, 2015. Importers are now paying full duty on these inputs unless they qualify for duty-free entry under one of the U.S. free trade agreements
Subheading	Article Description	General Rate of Duty	Effective Through
9902.51.11	Fabrics, of worsted wool, with average fiber diameters greater than 18.5 micron (provided for in subheading 5112.11.60, or 5112.19.95) See U.S. note 15	10%	12/31/2014
9902.51.13	Yarn, of combed wool, not put up for retail sale, containing 85 percent or more by weight of wool, formed with wool fibers having average diameters of 18.5 micron or less (provided for in subheading 5107.10.30)	Free	12/31/2014
9902.51.14	Wool fiber, waste, garnetted stock, combed wool, or wool top, the foregoing having average fiber diameters of 18.5 micron or less (provided for in subheading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21, or 5105.29)	Free	12/31/2014
9902.51.15	Fabrics of combed wool, containing 85 percent or more by weight of wool, with wool yarns of average fiber diameters of 18.5 micron or less, under the terms of U.S. note 16(b) to this subchapter (provided for in subheading 5112.11.30 or 5112.19.60)	Free	12/31/2014
9902.51.16	Fabrics of combed wool, containing 85 percent or more by weight of wool, with wool yarns of average fiber diameters of 18.5 micron or less, under the terms of U.S. note 17 to this subchapter (provided for in subheading 5112.11.30 or 5112.19.60)	Free	12/31/2014

U.S. Notes

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13. For purposes of headings 9902.51.11 and 9902.51.12, the term “suit” has the meaning given such term under note 3(a) of chapter 62 for purposes of headings 6203 and 6204.

14. For purposes of headings 9902.51.11 and 9902.51.12, the term “making” means cut and sewn in the United States.

15. (a) The aggregate quantity of worsted wool fabrics entered under heading 9902.51.11 shall be limited to 2,500,000 square meter equivalents in calendar year 2001, 3,500,000 square meter equivalents in calendar year 2002, 4,500,000 square meter equivalents in calendar years 2003 and 2004, and 5,500,000 square meter equivalents in calendar year 2005 and each calendar year thereafter for the benefit of persons who cut and sew men’s and boys’ worsted wool suits and suit-like jackets and trousers in the United States, allocated as required by section 501(e) of the Trade and Development Act of 2000.

(b) For purposes of heading 9902.51.11, all fabrics entered under such heading must be certified by the importer as suitable for use in making men’s and boys’ suits (as defined in U.S. note 13 to this subchapter), suit-type jackets, or trousers and must be imported for the benefit of persons who cut and sew such clothing in the United States.

16. (a) The aggregate quantity of worsted wool fabrics entered under subheading 9902.51.15 shall be limited to 1,500,000 square meter equivalents in calendar year 2001, 2,500,000 square meter equivalents in calendar year 2002, 3,500,000 square meter equivalents in calendar years 2003 and 2004, 5,000,000 square meter equivalents in calendar year 2005 and each calendar year thereafter, allocated as required by section 501(e) of the Trade and Development Act of 2000 for the benefit of persons who cut and sew such clothing in the United States.

(b) For purposes of heading 9902.51.15, all fabrics entered under such heading must be certified by the importer as suitable for use in making men’s and boys’ suits (as defined in U.S. note 13 to this subchapter), suit-typejackets, or trousers and must be imported for the benefit of persons who cut and sew such clothing in the United States.

17. (a) The aggregate quantity of worsted wool fabric entered under subheading 9902.51.16 shall be limited to 2,000,000 square meter equivalents in calendar year 2005 and each calendar year thereafter, allocated in accordance with section 501(e) of the Trade and Development Act of 2000 for the benefit of persons who weave worsted wool fabric suitable for use in men’s and boys’ suits.

(b) For purposes of heading 9902.51.16, all fabrics entered under such heading must be certified by the importer as suitable for use in making men’s and boys’ suits (as defined in U.S. note 13 to this subchapter), suit-type jackets, or trousers and must be imported for the benefit of persons who weave in the United States worsted wool fabric suitable for use in such clothing.

The duty on fabric is 25% and 6% on yarn. Fiber in the various stages of processing is subject to a range of import duties.

RELIEF MAY BE COMING. The 2014 "Farm Bill" provides that:

"In any calendar year in which the suspension of duty on wool fabrics provided for under headings 9902.51.11, 9902.51.13, 9902.51.14, 9902.51.15, and 9902.51.16 of the Harmonized Tariff Schedule of the United States are not in effect, the amount of any payment described in subsection (b)(1) to a manufacturer or successor-in-interest shall be increased by an amount the Secretary, after consultation with the Secretary of Commerce, determines is equal to the amount the manufacturer or successor-in-interest would have saved during the calendar year of the payment if the suspension of duty on wool fabrics were in effect."

The regulation to implement the provision for refund of duties has not yet been written, so we are not clear at this time on how it will be implemented.