New U.S.-Peru TPA Short Supply Request: Certain Carded Cashmere Yarn

The Committee for the Implementation of Textile Agreements ("CITA") is considering Commercial Availability Request File Number PE2026001 for certain carded cashmere yarn.

Comments Request; Interim Procedures for Short Supply Requests Under Panama and Peru FTAz

March 26, 2019, the Department of Commerce published in the Federal Register (84 FR 11283) Proposed Information Collection; Comment Request; Interim Procedures or Considering Requests Under the Commercial Availability Provision of the United States-Panama Trade Promotion Agreement (U.S.-Panama TPA).

March 26, 2019, the Department of Commerce published in the Federal Register (84 FR 11285) Proposed Information Collection; Comment Request; Interim Procedures for Considering Requests Under the Commercial Availability Provision of the United States-Peru Trade Promotion Agreement (US-PERU TPA).

Proposed Revocation Of One Ruling Letter And Revocation Of Treatment Relating To The Tariff Classification Of A Girl’s Upper Body Garment

In Binding Ruling Letter NY N279310, Customs and Border Protection classified a girl's upper body garment in heading 6109, HTSUS, specifically in subheading 6109.10.00, HTSUS, which provides for "T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton." CBP has reviewed NY N279310 and has determined the ruling letter to be in error. It is now CBP's position that the girl's upper body garment is properly classified, in heading 6212, HTSUS, specifically in subheading 6212.10.90, HTSUS, which provides for "Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted: Brassieres: Other." Furthermore, in NY N279310, CBP determined that based on the classification of the girl’s upper body garment in heading 6109, HTSUS, specifically in subheading 6109.10.00, HTSUS, the girl’s upper body garment did not qualify for preferential tariff treatment under the United States-Peru Trade Promotion Agreement. It is now CBP’s position that the girl's upper body garment, as properly classified in heading 6212, HTSUS, specifically in subheading 6212.10.90, HTSUS, meets the tariff shift requirement and qualifies for preferential tariff treatment under the PETPA.

Pursuant to 19 U.S.C. §1625(c)(1), CBP is proposing to revoke NY N279310 and to revoke or modify any other ruling not specifically identified to reflect the analysis contained in the proposed Headquarters Ruling Letter (“HQ”) H282945, set forth as Attachment B to this notice. Additionally, pursuant to 19 U.S.C. §1625(c)(2), CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.

Before taking this action, consideration will be given to any written comments timely received. Comments must be received on or before February 9, 2018.

The proposed revocation, with full analysis, is available in U.S. Customs Bulletin, Vol. 52, No. 2, beginning on Page 28.

U.S. Dept. of Labor Issues Report on Labor Concerns in Peru's Textile, Apparel, and Agricultural Sectors

On March 18, 2016, the U.S. Department of Labor released a report under the labor chapter of the United States-Peru Trade Promotion Agreement raisING significant concerns regarding the right to freedom of association in Peru’s non-traditional export sectors, which include exports of textiles, apparel and certain agricultural products.

Joint Statement of the Labor Affairs Council Peru-United States Trade Promotion Agreement (TPA)

Joint Statement of the Labor Affairs Council Peru-United States Trade Promotion Agreement (TPA)
Lima, Peru
October 17, 2014

The Labor Affairs Council (the Council) of the Peru - United States Trade Promotion Agreement (TPA) held its second meeting on October 17th, 2014, in Lima, Peru. Pursuant to Article 17.5 of the TPA, the Council oversees the implementation of, and reviews progress made under, Chapter 17 (Labor Chapter) of the TPA, including the activities of the Labor Cooperation and Capacity Building Mechanism established under article 17.6 of the Agreement. The Council is comprised of cabinet-level or equivalent representatives of the Parties, who may be represented on the Council by their deputies or high-level designees.

The second meeting of the Council was chaired by Ms. Sylvia Cáceres Pizarro, Vice Minister of Labor from the Ministry of Labor and Employment Promotion of Peru (MTPE); Ms. Teresa Mera Gómez, Coordinator for North America and Europe from the Ministry of Foreign Trade and Tourism of Peru (MINCETUR); Ms. Carol Pier, Deputy Undersecretary for International Affairs, U.S. Department of Labor (USDOL); and Mr. Carlos Romero, Deputy Assistant U.S. Trade Representative, Office of the United States Trade Representative (USTR). In addition, other officials participated from the MTPE, SUNAFIL and MINCETUR representing Peru, and from the USDOL, USTR, and the U.S. Department of State representing the United States.

During the meeting, the Council discussed matters regarding ongoing cooperation on labor matters such as those related to the prevention and abolition of child labor and combatting forced labor. In addition, areas of future cooperation were discussed such as capacity building for labor inspections.

Furthermore, the Parties exchanged information regarding the implementation of the Labor Chapter of the Peru – United States TPA, such as ongoing efforts to strengthen institutional capacity to support the enforcement of labor laws, strengthening institutional capacity for labor administration, which includes the labor inspectorate, as well as the promotion and protection of fundamental labor rights, including matters related to different forms of labor contracting.

The Parties reaffirmed their commitment to continue cooperating in order to guarantee full implementation of the Labor Chapter.

A public session of the Council was held on the afternoon of October 17th, with participation of representatives of union organizations, the private sector, and other interested persons, which gave Council members the opportunity to meet with the public to discuss matters related to the implementation of the Labor Chapter of the Peru - United States TPA. The Parties recognize that convening a public session is an important transparency mechanism to exchange information with the public regarding the implementation of the Labor Chapter of the Peru - United States TPA.

Tariff Classifications of Several Hand Knitting Yarns. Alpaca from Peru. Acrylic from Italy or Turkey.

With the increased interest in hand knitting in the U.S. more yarn, and more kinds of yarns, are being imported "put up for retail." Last month U.S. Customs and Border Protection issued Binding Ruling Letters relating to eleven such yarns.

Ruling #N250032 related to the tariff classification of four knitting yarns and a chenille yarn, from Italy or Turkey

1. Heartland Thick & Quick, is stated to be 100% acrylic. It is a three-ply twisted staple-fiber bulky yarn. The label states that the hank weighs five ounces.

2. Country 254 Quarry, is also said to be 100% acrylic. It is a two-ply twisted bulky staple-fiber yarn. The sample hank weighs 139 grams. A simple desk test reveals the decitex to be approximately 10,000.

3. Landscapes, is a 100% acrylic twisted yarn. The hank weighs 100 grams.

4. Gold Leaf, is a two-ply twisted yarn of 90% acrylic and 10% wool. The yarn is decorated with gold-colored foil, with a 3/4-inch piece every two inches or so. All of the above yarns meet the tariff definition of “put up for retail sale” found in Section XI, Note 4, Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading for the above yarns will be 5511.10.0030, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, acrylic. The duty rate will be 7.5% ad valorem.

5. Style Pelt is a yarn of knit construction with loose fibers caught in the knitted loops and extending out approximately 3/4 of an inch, creating a chenille effect. The applicable subheading for the yarn, style Pelt, will be 5606.00.0090, HTSUS, which provides for chenille yarn. The rate of duty will be 8% ad valorem.

Ruling #N250281 related to five styles of knitting yarns from Italy or Turkey.

1. Vanna’s Tapestry, is 100% acrylic. It is a four-ply twisted staple-fiber yarn. The label states that the hank is 136 meters and weighs 85 grams.

2. Vanna’s Palette, is eight small hanks, each 16 meters and 10 grams, 100% acrylic, twisted yarn packaged together in a plastic bag; each yarn is a different color.

3. Zanzibar, style 826, is a 53% wool and 47% acrylic twisted yarn. The hank weighs approximately 50 grams.

All of the above yarns meet the tariff definition of “put up for retail sale” found in Section XI, Note 4, Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading for Vanna’s Tapestry and Vanna’s Palette will be 5511.10.0030, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, acrylic. The duty rate will be 7.5% ad valorem. The applicable subheading for style 826, Zanzibar, will be 5109.90.9000, HTSUS, which provides for yarn of wool, put up for retail sale:… Other: Other: Other. The rate of duty will be 6% ad valorem.

4. Style Modern Baby is a 50% acrylic/50% nylon knit yarn, 158 meters, 75 grams. It, too, meets the tariff definition of “put up for retail sale” found in Section XI, Note 4. The applicable subheading for Modern Baby will be 5511.10.0060, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, other. The duty rate will be 7.5% ad valorem. Note 2(A) to Section XI, HTSUS, noted.

5. Style Keppi is an acrylic yarn intermittently combined with (either twisted with or gimped by) a chenille yarn that includes polyester textile strips that add to the chenille effect; 10 feet of the chenille yarn alternate with twenty or more feet of the twisted yarn. This yarn is considered a chenille yarn for tariff classification purposes. Keppi comes packaged with a pompom that is made of a knit pile fabric formed into a 2-3”- diameter ball filled with textile staple fibers. The yarn and pompom are retail-packaged with a crochet hook and instructions for a hat with a pompom. The yarn, pompom, and hook imported as a retail whole are considered a set for tariff classification purposes under the terms of General Rule of Interpretation (GRI) 3. According to the terms of GRI 3(b), the essential character of the set is imparted by the yarn and the set will be so classified. The applicable subheading for the yarn set Keppi will be 5606.00.0090, HTSUS, which provides for chenille yarn. The rate of duty will be 8% ad valorem.

Ruling #N249380 related to a alpaca/silk yarn from Peru, described as follows: 74% Suri Alpaca and 26% silk, called Andean Mist. (Suri Alpaca is a breed of the animal with longer hair, among other characteristics making it’s hair and the yarn made from it softer and finer, and thus more desirable and expensive.) Alpaca is considered fine animal hair for tariff classification purposes. Legal Note 1(b) to Chapter 51, Harmonized Tariff Schedule of the United States (HTSUS), noted. The yarn will be sold in 25-gram skeins. The yarn as imported meets the tariff definition of “put up for retail sale” found in Section XI, Note 4(b), HTSUS.

The applicable subheading for the alpaca /silk yarn as described above will be 5109.90.9000, HTSUS, which provides for yarn of wool or fine animal hair, put up for retail sale:…Other:…Other:…Other. The general rate of duty will be 6% ad valorem.

The yarn is manufactured in Peru. The alpaca is of Peru origin and silk fibers that are imported into Peru from China. The rule of origin in the U.S.-Peru Free Trade Promotion Agreement for goods classified in heading 5109 requires: "A change to heading 5106 through 5110 from any heading outside that group." The non-originating silk fibers are classified in Chapter 50, HTSUS and meet the terms of the tariff shift rule. Based on the facts provided, the yarn qualifies for Peru TPAIA preferential treatment because it meets the requirements of HTSUS General Note 32(b)(ii)(A). The merchandise will therefore be entitled to a Free rate of duty under the Peru TPAIA upon compliance with all applicable laws, regulations, and agreements.

AAFA Calls for Cumulation in Colombia and Peru FTAs

The American Apparel & Footwear Association ("AAFA") recently wrote to United States Trade Representative Michael Froman to express strong support for the negotiation of provisions that will establish "cumulation" within the Peru and Colombia Trade Promotion Agreements, stating:

As you may know Article 3.3.14 of the Colombia agreement and Article 3.3.14 of the Peru agreement contain provisions that authorize the negotiation of cumulation with other countries in the region. Such measures are urgently needed to help ensure that regional textile and apparel supply chains do not remain fragmented and that they can create unified markets for U.S. yarns and fabrics.

Under current rules, Colombia can only use inputs from itself and the United States. Likewise, Peru is also restricted to textile inputs originating from itself and the United States. Such policies artificially sever regional supply chains that U.S. apparel companies use, increasing their costs while diminishing the size of key U.S. yarn and fabric export markets. The current situation also stands at odds with historical U.S. trade policies. As recently as last year, these countries could also use inputs from each other, from other Andean countries, and, in certain cases, from Central America.

The letter is available on the AAFA website at https://www.wewear.org/assets/1/7/AAFA_Colombia-Peru_Letter_to_Froman_092313.pdf