CBP Publishes Guidance for USMCA TPL Canada

QB 24-112 USMCA TPL Canada

Commodity:

Certain Cotton, Wool and Man-made Fiber textile products, as provided for in Chapter 98, Sub-chapter XXIII, US Note 11 of the Harmonized Tariff Schedule of the United States.
 

Quota Period:

January 1, 2024, through December 31, 2024
 

Opening Date:

Tuesday, January 2, 2024
 

Restraint Limits

TPL Number	Description	Limit	UOM
1	Cotton or Man-made Fiber Apparel	40,000,000	UOM
2	Wool Apparel	200,000	UOM
3	Men’s and Boy’s Wool Suits of Category 443	3,800,000	UOM
4	Aggregate total of TPL 5 & 6	71,765,252	UOM
5	Cotton or man-made Fiber Fabrics and Made-up Textile Goods WOVEN	38,642,828	UOM
6	Cotton or man-made Fiber Fabrics and Made-up Textile Goods KNIT	38,642,828	UOM
7	Non-originating Cotton or Man-made Spun Yarn sub: ACRYLIC	3,000,000	UOM
8	Non-originating Cotton or Man-made Spun Yarn sub: OTHER YARNS	3,000,000	UOM

HTS Numbers

First Tariff Field	Second Tariff Field
98235201	Appropriate Chapter 1- 1-97 HTS Number
98235202	Appropriate Chapter 1- 1-97 HTS Number
98235203	Appropriate Chapter 1- 1-97 HTS Number
98235204	Appropriate Chapter 1- 1-97 HTS Number
98235205	Appropriate Chapter 1- 1-97 HTS Number
98235200	Appropriate Chapter 1- 1-97 HTS Number
98235207	Appropriate Chapter 1- 1-97 HTS Number
98235208	Appropriate Chapter 1- 1-97 HTS Number

Reporting Instructions:

Place the rate of duty in the "special" sub-column of column 1 followed by the symbol "S+" for ALL entries.

Use entry type code 02, 06, 07, 12, 23, 32, 38, or 52.

SQUARE METERS EQUIVALENT (SME) means that unit of measurement that results from the application of the conversion factors set out in Annex 6-B (Conversion Factors) to a primary unit of measure such as unit, dozen, or kilograms.
 

Special Reporting Instructions:

See Additional U.S. Note 11(a) and (iii) to Subchapter XXIII of the Harmonized Tariff Schedule (HTS).

TPL (1) - See Additional U.S. Note 11 (i)(A) Subchapter XXIII of the HTS.

TPL (2) - See Additional U.S. Note 11 (i)(B) Subchapter XXIII of the HTS.

TPL (3) - See Additional U.S. Note 11 (a)(l) Subchapter XXIII of the HTS.

TPL (4) - See Additional U.S. Note 11 (ll)(C) Subchapter XXIII of the HTS.

TPL (5) - See Additional U.S. Note 11 (ll)(A) Subchapter XXIII of the HTS. For category 222, use NFT

TPL (6) - See Additional U.S. Note 11 (ll)(B)(D)(l)(ll) Subchapter XXIII of the HTS. For category, 222 use NFT

TPL (7) - See Additional U.S. Note 11 (iii)(A) Subchapter XXIII of the HTS.

TPL (8) - See Additional U.S. Note 11 (iii)(B) Subchapter XXIII of the HTS.

This note and subheadings 9823.52.01 through 9823.52.08, inclusive, apply to certain textile and apparel goods of Canada that are not originating goods under the terms of general note 11 to the tariff schedule, however, that are eligible for special tariff treatment as provided for herein, USMCA claims involving non-originating textiles and apparel goods subject to TPL provisions must be accompanied by a valid certificate (or its electronic equivalent) of eligibility. For purposes of obtaining preferential tariff treatment, this document must be completed legibly and in full by the exporter and be in the possession of the importer at the time the declaration is made.
 

Certificate Numbering:

The first number of the certificate must match the year of presentation. For example, a 2024 certificate, e.g.4CA (XX) 123456, must accompany merchandise entered in 2024. The certificate must be reflected in column 34 on the CBP 7501. ABI filers can transmit the certificates of eligibility in the certificate field of the line information.

A 2023 certificate of eligibility CANNOT be used for merchandise presented in 2024.  Likewise, a 2024 certificate cannot be used on entries presented in 2023.  Merchandise presented in 2024 will require a 2024 certificate of eligibility and will be charged to the 2024 quota limits. Therefore, 2023 entry summaries for merchandise released on or after December 17, 2023, must be presented by December 31, 2023. If presented after December 31, 2023, liquidated damages may be assessed for late filing.
 

Post-Importation Claims:

Post-importation claims for TPL must be filed with the certificate of eligibility for the year the entry summary, or equivalent documentation, is accepted by CBP.  Post-importation claims will not be granted if the quantitative restraints for the subject TPL are already filled.

Questions from the importing community regarding this electronic message should be referred to the local CBP port. The port may refer questions through email to HQQUOTA@cbp.dhs.gov.

Customs Announced 2023 Canada Textile and Apparel TPLs

Commodity: Certain Cotton, Wool and Man-made Fiber textile products, as provided for in Chapter 98, Sub-chapter XXIII, US Note 11 of the Harmonized Tariff Schedule of the United States,

Read more HERE.

Canada and Mexico TPLs for Certain Cotton, Wool and Man-made Fiber Textile Products

U.S. Customs has issued broker guidance for USMCA TPLs for the quota period January 1, 2022 - December 31, 2022.

Mexico TPLs.

Canada TPLs,

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), in a notice to be published tomorrow, announces the TPL for the period October 1, 2021 through September 30, 2022 will be 2,066,936,295 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2021 will be 1,033,468,148 SME.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), in a notice to be published tomorrow, announces the TPL for the period October 1, 2020 through September 30, 2021 will be 1,856,390,368 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2020 will be 928,195,184 SME.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2019 through September 30, 2020 will be 2,146,573,294 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2019 will be 1,073,286,647 SME.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2018 through September 30, 2019 will be 2,048,357,135 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2018 will be 1,024,178,567 SME.

NAFTA TPLs an Outlier among US FTAs

Among the more contentious topics in the NAFTA re-negotiation has been the topic of Tariff Preference Level ("TPL"), the provisions for a limited quantity of textile products to received the NAFTA duty-free benefit even though they fail to satisfy the NAFTA rules. The are separate TPLs depending on the type of fiber and which international border is being crossed.

Yarn TPL

Cotton and MMF spun yarn:
Canada to U.S., 11.7 million kgs.
U.S. to Canada, 1 million kgs.
Canada to Mexico, 1 million kgs.
Mexico to Canada, 1 million kgs.
Mexico to U.S., 1 million kgs.
U.S. to Mexico, 1 million kgs.

Cotton and MMF Fabric/Made-ups:

Canada to U.S., 35 miilion sme knit and 35 million sme woven.
U.S. to Canada 2 million sme knit.
Canada to Mexico 7 million sme knit or woven.
Mexico to Canada 7 million sme knit or woven.
Mexico to U.S. 18 million sme knit.
Mexico to U.S. 6 million sme woven.
U.S. to Mexico 2 million sme knit or woven.

Apparel TPL, Cotton and MMF

Canada to U.S. 80 million sme.
U.S. to Can. 9 million sme.
Canada to Mexico 6 million sme.
Mexico to Canada 6 million sme.
Mexico to U.S. 45 million sme.
U.S. to Mexico 12 million sme.

Wool

Canada to U.S. 5.1 million sme.
U.S. to Canada 0.9 million sme.
Canada to Mexico 0.3 million sme.
Mexico to Canada 0.3 million sme.
Mexico to U.S. 1.5 milion sme.
U.S. to Mexico 1 million sme.

The U.S. has 14 FTAs with 20 nations. NAFTA is the only one of these agreements with permanent unchanging TPLs.

Half of the U.S. FTAs, those with seven nations, Australia, Colombia, Israel, Jordon, Korea, Panama, and Peru, were, from implementation, without TPLs.

An arguments can be made that TPLs should not be permanent. They may be justified in the short term as addressing lack of regional supply, but the point of a free trade agreement is to build up regional capacity. The following five FTAs contain TPLs that expire:

• The Singapore FTA went into effect in 2004 with a 25 million sme TPL for cotton and MMF apparel, which was phased out over 8 years.

• The Morocco FTA went into effect in 2006 with a 30 million sme TPL that was phased out over ten years.

• DR-CAFTA went into effect with a 100 million sme TPL for Nicaragua and a 1 million sme TPL for Costa Rica, both of which have expired per the agreement.

• The Bahrain FTA went into effect in 2006 with a 65 million sme TPL, which expired in the middle of last year per the agreement.

• The Oman FTA went into effect in 2009 with 50 million sme TPL, which is scheduled to expire ten years after implementation.

In addition to NAFTA, only the Chile FTA, which went into effect in 2004, has a permanent TPL for cotton and MMF fabric of 1 million sme. However, the TPL for cotton and MMF apparel, which started at 2 million sme, was reduced to 1 million sme after ten years.

US/Canadian/Mexican Industry Urge Negotiators to Preserve TPLs in NAFTA

Ten business groups – representing companies from across the textile and apparel supply chain in Canada, the U.S., and Mexico – urged negotiators to preserve Tariff Preference Levels (TPLs) in the NAFTA negotiations. READ MORE.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2017 through September 30, 2018 will be 2,022,822,376 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2017 will be 1,011,411,188 SME.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2016 through September 30, 2017 will be 1,966,511,796 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2016 will be 983,255,898 SME.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2015 through September 30, 2016 will be 1,935,096,830 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2015 will be 967,548,415 SME.

Clients of Agathon Associates, subscribers to Agathon Associates' Trade Advisor Service, and students in TMD 433 at the University of Rhode Island can learn more about AGOA at http://agathonassociates.com/textile-pri/agoa/. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2014 through September 30, 2015 will be 1,833,741,923 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2014 will be 916,870,961 SME.

Limitations of Duty- and Quota-Free Imports of Apparel Articles Assembled in Beneficiary Sub-Saharan African Countries From Regional and Third-Country Fabric

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2013 through September 30, 2014 will be 1,784,195,681 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting tomorrow will be 892,097,841 SME.

Industry Trade Advisory Committee on Small and Minority Business to Meet March 4th

The Industry Trade Advisory Committee on Small and Minority Business ("ITAC-11") will hold a meeting on Monday, March 4, 2013. The meeting will be opened to the public from 2:00 p.m. to 3:30 p.m. The meeting will be held at the Ronald Reagan International Trade Center 1300 Pennsylvania Avenue N.W., Suite M800, Training Room A, Washington, D.C. 20004. FOR FURTHER INFORMATION CONTACT: Laura Hellstern, Designated Federal Officer ("DFO") for ITAC-11 at (202) 482-3222, Department of Commerce, 14th Street and Constitution Avenue N.W., Washington, D.C. 20230. The Agenda topics to be discussed are:

• Export.gov 2.0 Launch,

• Doing Business in Africa Initiative, and

• Metropolitan Export Initiative.