Side-by-Side Comparison of Free Trade Agreements and Selected Preferential Trade Legislation Programs--Non-Textiles

Transcription

1 Provision NAFTA CHILE (CFTA) SINGAPORE (SFTA) AUSTRALIA (AFTA) GENERAL INFO & DATES Agreement Name rth American Free Trade Agreement US-Chile Free Trade Agreement US-Singapore Free Trade Agreement US-Australia Free Trade Agreement Implementation Date January 1, 1994 January 1, 2004 January 1, 2004 January 1, 2005 Expiration ne ne ne ne Duty Phase-Out January 1, 2008 (15 Years) January 1, 2015 (12 Years) January 1, 2013 (10 years) January 1, 2022 (18 Years) Merchandise Processing Fee Exempt for originating goods Exempt for originating goods Exempt for originating goods Exempt for originating goods (MPF) Direct Shipment Imported Directly Transit & Transshipment Primary Responsibility for Compliance Transshipment: May NOT leave customs' control nor undergo production in a 3rd country; 19 CFR 181 Appendix, Sec. 16; 19 CFR (b) Transit and Transshipment: May leave customs' control; may not undergo further production in a 3rd country; 19 CFR Third Country Transportation: May leave customs' control; may not undergo further production in a 3rd country; 19 CFR Exporter Importer Importer Importer CITATIONS HTS General te (GN) GN 12 GN 26 GN 25 GN 28 US Code 19 USC USC 3805 note 19 USC 3805 note 19 USC 3805 note Third Country Operations: May leave customs' control; may not undergo further production in a 3rd country; GN 28c(iii) CFR 19 CFR 181 and Appendix 19 CFR (Subpart H) 19 CFR (Subpart I) interim Regulations published to date 19 CFR 102 (Interim) Marking Rules 19 CFR CFR CFR CFR 134 Special Program Indicator "CA" or "MX" "CL" "SG" or " " (ISI) "AU" 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 1

2 Provision NAFTA CHILE (CFTA) SINGAPORE (SFTA) AUSTRALIA (AFTA) ORIGINATION, ETC. Rules of Origin Citations General te 12(b), 19 CFR 181 General te 26(b); 19 CFR General te 25(b); 19 CFR General te 28(b) Append., Part II, Sec. 4 Rules of Origin Wholly Obtained or Produced; Wholly of Wholly Obtained or Produced; Wholly Wholly Obtained or Produced; Tariff Wholly Obtained or Produced; Wholly of Originating Materials; Tariff Shift & / or Regional Value Content of Originating Materials; Tariff Shift & / or Regional Value Content Shift & / or Regional Value Content; Integrated Sourcing Initiative (ISI) Originating Materials; Tariff Shift & / or Regional Value Content Tariff Shift Rules Tariff Change Rules Product Specific Rules Comply with 2007 HTSUS Comply with 2012 HTSUS Chemical Reaction and Related Rules of Origin GN 12(t) GN 26(n) GN 25(o) GN 28(n) Yes, Presidential Proclamation 8405 Yes, Presidential Proclamation 8214 Yes, Presidential Proclamation 8214 Yes Yes, Presidential Proclamation 8771, 12/28/11, effective 2/3/12 Yes, for certain petroleum goods Yes, HTS Ch ; GN 26(m)(vi) Yes, HTS Ch ; GN 25(n)(v) Yes; HTS Ch ; GN 28(m)(vii) Special Origination Rules Annex (E Criterion) for certain high-tech goods; 69 FR 54739, Sept. 9, 2004, Disassembly treated as production; 19 CFR Integrated Sourcing Initiative (ISI) GN 25(m) for certain 3rd-country, high-tech goods imported from Singapore Drawback Restrictions Yes, Article 303; 19 CFR 181, Subpart E; 19 USC 1313 Yes, Article 3.8; 19 USC 1313; General te or Regulation Citation Repair & Alteration Provision Documentation required in the importer's possession at the time of claim Duty Free per 19 CFR ; HTSUS Yes, NAFTA Certificate of Origin must be in importer's possession at time of claim; 19 CFR Duty Free per 19 CFR ; HTSUS, freeform "Certification" with the elements in 19 CFR upon request by CBP Duty Free per 19 CFR ; HTSUS Duty Free per Agreement Article 2.6; HTSUS, freeform "Supporting Statement" with the elements in 19 CFR upon request by CBP, freeform "Supporting Statement" with 10 elements upon request by CBP; grams/international_agreements/free_trade/ australia/ 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 2

3 Provision NAFTA CHILE (CFTA) SINGAPORE (SFTA) AUSTRALIA (AFTA) VALUE Regional Value Content (RVC) Citations Regional Value Content (RVC) Calculation Methods GN12(c), 19 CFR 181, Appendix, Section 6-10 Transaction Value & Net Cost where there is RVC GN 26(g); 19 CFR GN 25(g); 19 CFR GN 28(g); Agreement Article 5.4 Build-Up & Build-Down where there is RVC Build-Up & Build-Down where there is RVC Build-Up, Build-Down & Net Cost (automotive only) where there is RVC Special Regimen for Automotive Goods De Minimis (most common threshold) Yes, tracing the value of certain nonoriginating materials and net cost required 7% of transaction value; 19 CFR 181 Appendix, Sec. 5; GN 12(f) (with exceptions), although RVC percentages are 30% Build-Up, 50% Build-Down 10% of adjusted value; 19 CFR ; GN 26(e) (with exceptions) INVENTORY MANAGEMENT METHODS Fungible Goods & Materials LIFO, FIFO, Average; GN 12(g) LIFO, FIFO, Average; other GAAPrecongized method; GN 26(i) CLAIMS & DETERMINATIONS Post-Importation Claims 19 USC 1520(d) 19 CFR USC 1520(d) 19 CFR , although RVC percentages are 30% Build-Up, 50% Build-Down 10% of adjusted value; 19 CFR ; GN 25(e) (with exceptions) LIFO, FIFO, Average; other GAAPrecongized method; GN 25(i) Summary Correction (PSC) or 19 USC 1514 Reconciliation Claims Yes, 67 FR 6120, Sept. 27, 2002 Yes, 69 FR 53730, Sept. 2, 2004 Yes, certain tariffs require net cost RVC (GN 28(g)(iii)) 10% of adjusted value; GN 28(e) (with exceptions) LIFO, FIFO, Average; other GAAPrecongized method; GN 28(i) Summary Correction (PSC) or 19 USC 1514 Determinations Communicated to Exporter Yes Yes, if correspondence with exporter Yes, if correspondence with exporter Yes, if correspondence with exporter Pattern of Conduct Clause Yes, 19 CFR (c) Yes, 19 CFR /19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 3

4 Provision ISRAEL (ILFTA) JORDAN (JFTA) BAHRAIN (BFTA) MOROCCO (MFTA) OMAN (OFTA) GENERAL INFO & DATES Agreement Name US-Israel Free Trade Area Agreement US-Jordan Free Trade Area Agreement US-Bahrain Free Trade Agreement US-Morocco Free Trade Agreement US-Oman Free Trade Agreement Implementation Date September 1, 1985 December 17, 2001 August 1, 2006 January 1, 2006 January 1, 2009 Expiration ne ne ne ne ne Duty Phase-Out January 1, 1995 January 1, 2010 (10 years) January 1, 2015 (10 years) January 1, 2023 (18 years) January 1, 2018 (10 years) Merchandise Processing Fee (MPF) Direct Shipment Imported Directly Transit & Transshipment Exempt for products of Israel, whether or not originating; 19 CFR 24.23(c)(5) Imported Directly: May NOT enter the commerce of a 3rd country except for non-retail sale where the importation is the result of the original transaction, may NOT undergo further production in a 3rd country; GN 3(a)(v)(B) Exemption Imported Directly: May NOT enter the commerce of a 3rd country except for non-retail sale where the importation is the result of the original transaction, may not undergo further production in a 3rd country; 19 CFR Exempt for originating goods; 19 CFR 24.23(c)(8) Imported Directly: May leave customs' control, may not undergo further production in a 3rd country, limited operations specified; 19 CFR Exemption Imported Directly: May leave customs' control, may not undergo further production in a 3rd country, limited operations specified; 19 CFR Primary Responsibility for Importer Importer Importer Importer Importer Compliance CITATIONS HTS General te (GN) GN 8 GN 18 GN 30 GN 27 GN 31 Exempt for originating goods; 19 CFR 24.23(c)(10) Imported Directly: May leave customs' control, may not undergo further production in a 3rd country; 19 CFR US Code 19 USC 2112 note 19 USC 2112 note 19 USC 3805 note 19 USC 3805 note 19 USC 3805 note CFR ne 19 CFR (Subpart K) 19 CFR (Subpart N) 19 CFR (Subpart M) 19 CFR (Subpart P) Marking Rules 19 CFR CFR CFR 102 (Side Letter) 19 CFR 102 (Side Letter) 19 CFR 134 Special Program Indicator "IL" ("N" for Qualified Industrial Zones (QIZs)) "JO" "BH" "MA" "OM" 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 4

5 Provision ISRAEL (ILFTA) JORDAN (JFTA) BAHRAIN (BFTA) MOROCCO (MFTA) OMAN (OFTA) ORIGINATION, ETC. Rules of Origin Citations Agreement Annex 3 19 U.S.C (note) General te 18(b) 19 CFR , General te 30(b) 19 CFR General te 27(b) 19 CFR General te 31(b) 19 CFR Rules of Origin "Growth, Product, or Manufacture" or "Wholly the growth, product, or Value Content + Substantial Transformation manufacture" or Value Content + Substantial Transformation Tariff Shift Rules Tariff Change Rules "Wholly the growth, product, or manufacture" or Value Content + 19 CFR 102 or Product-Specific Tariff shift GN 30(h); Tariff Shift Rules for Certain Goods in HTS 17, 18, 20, 21, 42, 70 & 94 "Wholly the growth, product, or manufacture" or Value Content + 19 CFR 102 or Product-Specific Tariff shift GN 27(h); Tariff Shift Rules for Certain Goods in HTS 6-9, 12-13, 20-22, 39, 42, 70, 72, 85, 87 & 94 "Wholly the growth, product, or manufacture" or Value Content + Substantial Transformation or Product-Specific Tariff shift GN 31(h); Tariff Shift Rules for Certain Goods in HTS 17, 18, 20, 21, 42, 70 & 94 Comply with 2007 HTSUS Comply with 2012 HTSUS Chemical Reaction and Related Rules of Origin N/A N/A Yes N/A N/A Special Origination Rules Qualified Industrial Zones (QIZs) (Gaza, West Bank, parts of Jordan and Egypt); GN 3(a)(v) Drawback Restrictions Repair & Alteration Provision Duty Free per 19 CFR Duty Free per 19 CFR Duty Free per 19 CFR Documentation required in the importer's possession at the time of claim VALUE Regional Value Content (RVC) Citations Regional Value Content (RVC) Calculation Methods and Most Common Thresholds Special Regimen for Automotive Goods ILFTA: ne QIZ:, "Declaration" with listed elements upon request by CBP; GN 3(a)(v)(F)(2) 19 USC 2112 (note), Sec. 9 (QIZ), Sec. 402 (ILFTA); Agreement Annex 3 Israeli materials + direct cost of processing must at least equal 35% of appraised value (up to 15% US content), freeform "Declaration" with the elements in 19 CFR upon request by CBP, freeform "Declaration" with the elements in 19 CFR upon request by CBP 19 CFR ; GN 18(iv), (v) 19 CFR ; 19 CFR ; GN 30(b)(ii), (c), (d), (f) Jordanian materials + direct cost of processing must at least equal 35% of appraised value (up to 15% US content) US/Bahraini materials + direct cost of processing must at least equal 35% of appraised value, freeform "Declaration" with the elements in 19 CFR upon request by CBP 19 CFR ; GN 27(b)(ii), (c), (d), (f) US/Moroccan materials + direct cost of processing must at least equal 35% of appraised value De Minimis Provision, freeform "Declaration" with the elements in 19 CFR upon request by CBP 19 CFR ; ; GN 31(b)(ii), (c), (d), (f) US/Omani materials + direct cost of processing must at least equal 35% of appraised value 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 5

6 Provision ISRAEL (ILFTA) JORDAN (JFTA) BAHRAIN (BFTA) MOROCCO (MFTA) OMAN (OFTA) INVENTORY MANAGEMENT METHODS Fungible Goods & Materials CLAIMS & DETERMINATIONS Post-Importation Claims Summary Correction (PSC) or 19 USC 1514 Summary Correction (PSC) or 19 USC 1514 Summary Correction (PSC) or 19 USC 1514 Summary Correction (PSC) or 19 USC USC 1520(d); 19 CFR Reconciliation Claims Yes, 78 FR 27984, May 13, 2013 Determinations Communicated to Exporter Yes, if correspondence with exporter Yes, if correspondence with exporter Yes, if correspondence with exporter Yes, if correspondence with exporter Yes, if correspondence with exporter Pattern of Conduct Clause 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 6

7 Provision CAFTA-DR Peru (PTPA) Korea (UKFTA) Colombia (CTPA) Panama (PATPA) GENERAL INFO & DATES Agreement Name Dominican Republic-Central America-United States Free Trade Agreement Implementation Date El Salvador: 3/1/06 Nicaragua: 4/1/06 Honduras: 4/1/06 Guatemala: 7/1/06 Dominican Republic: 3/1/07 Costa Rica: 1/1/09 US-Peru Trade Promotion Agreement US-Korea Free Trade Agreement US-Colombia Trade Promotion Agreement US-Panama Trade Promotion Agreement February 1, 2009 March 15, 2012 May 15, 2012 October 31, 2012 Expiration ne ne ne ne ne Duty Phase-Out January 1, 2025 (20 Years) Annex 3.3 January 1, 2025 (17 years) Annex 2.3 January 1, 2026 (15 years) Annex 3-B January 1, 2028 (17 years) Annex 2.3 January 1, 2028 (17 years) Annex 3.3 Merchandise Processing Fee (MPF) Exempt for Originating Goods 19 CFR 24.23(c)(9) Exempt for Originating Goods 19 CFR 24.23(c)(11) Exempt for Originating Goods 19 CFR 24.23(c)(12) Exempt for Originating Goods 19 CFR 24.23(c)(13) Exempt for Originating Goods 19 CFR 24.23(c)(14) Direct Shipment Imported Directly Transshipment Primary Responsibility for Compliance CITATIONS Transit and Tansshipment: May NOT leave customs' control nor undergo further production in a non-party; 19 CFR Transit and Transshipment: May NOT leave customs' control nor undergo further production in a 3rd country; 19 CFR Transit and Transshipment: May NOT leave customs' control nor undergo further production in a 3rd country; 19 CFR Transit and Transshipment: May NOT leave customs' control nor undergo further production in a 3rd country; 19 CFR Importer Importer Importer Importer Importer HTS General te (GN) GN 29 GN 32 GN 33 GN 34 GN 35 Transit and Transshipment: May NOT leave customs' control nor undergo further production in a 3rd country; 19 CFR US Code 19 USC USC 3805 note 19 USC 3805 note 19 USC 3805 note 19 USC 3805 note CFR 19 CFR (Subpart J) 19 CFR (Subpart 19 CFR (Subpart 19 CFR CFR (Subpart Q); 77 FR 64031, Oct. 18, R); 78 FR 32356, May 30, 2013 (Subpart T); 78 FR 60191, Oct. S); 78 FR 63052, Oct. 23, , 2013 (interim) Marking Rules 19 CFR CFR CFR CFR CFR 134 Special Program Indicator "P," "P+" for qualifying agricultural goods "PE" "KR" "CO" "PA" 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 7

8 Provision CAFTA-DR Peru (PTPA) Korea (UKFTA) Colombia (CTPA) Panama (PATPA) ORIGINATION, ETC. Rules of Origin Citations Rules of Origin General te 29(b); 19 CFR GN 32(b); 19 CFR GN 33(b); 19 CFR GN 34(b); 19 CFR GN 35(b); 19 CFR Wholly Obtained or Produced, Wholly Obtained or Produced, Wholly Obtained or Produced, Wholly Obtained or Produced, Wholly Obtained or Produced, Tariff Shift & / or Regional Value Tariff Shift & / or Regional Value Tariff Shift & / or Regional Value Tariff Shift & / or Regional Value Tariff Shift & / or Regional Value Content, Wholly of Originating Content, or Wholly of Originating Content, or Wholly of Originating Content, or Wholly of Originating Content, or Wholly of Originating Materials, Qualifying Goods Materials Materials Materials Materials Tariff Shift Rule Citation GN 29(n) GN 32(n) GN 33(o) GN 34(o) GN 35(o) Comply with 2007 HTSUS Comply with 2012 HTSUS Chemical Reaction and HTS Ch 27-40; GN 29(m)(vii) HTS Ch 27-40; GN 32(m)(vii) HTS Ch 27-40; GN 33(n)(vii)- HTS Ch 27-40; GN 34(n)(v)-(vi) HTS Ch 27-40, GN 35(n)(v)-(vi) Related Rules of Origin (viii) Special Origination Rules Qualifying Goods; GN 29(a)(ii) for certain CAFTA-DR agricultural goods Drawback Restrictions Repair & Alteration Provision Duty Free per 19 CFR Duty Free per 19 CFR Duty Free per 19 CFR Duty Free per 19 CFR Duty Free per 19 CFR Documentation required in the, freeform "Certification" with, freeform "Certification" with, freeform "Certification" with, freeform "Certification" with, freeform "Certification" with importer's possession at the the elements in 19 CFR the elements in 19 CFR the elements in 19 CFR the elements in 19 CFR the elements in 19 CFR time of claim upon request by CBP upon request by CBP upon request by CBP upon request by CBP upon request by CBP VALUE Regional Value Content (RVC) Citations 19 CFR ; GN 29(f) 19 CFR ; GN 32(f) 19 CFR ; GN 33(g) 19 CFR ; GN 34(g) 19 CFR ; GN 35(g) Regional Value Content (RVC) Calculation Methods Build-Up, Build-Down Net-Cost (limited) Build-Up, Build-Down Net-Cost (limited) Build-Up, Build-Down; Net-Cost (limited); Indirect materials are disregarded when computing the value of originating materials in Build-Up Build-Up, Build-Down Net-Cost (limited) Build-Up, Build-Down Net-Cost (limited) 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 8

9 Provision CAFTA-DR Peru (PTPA) Korea (UKFTA) Colombia (CTPA) Panama (PATPA) Special Regimen for Yes, automotive goods MAY use Yes, automotive goods MUST Yes, automotive goods MAY use Yes, automotive goods MUST Yes, automotive goods MAY use Automotive Goods NC, BU or BD for RVC; 19 CFR (d); GN 29(f)(iii) use Net Cost RVC; 19 CFR (d); GN 32(f)(iii) NC, BU or BD for RVC; 19 CFR (d); GN 33(h) use Net Cost for RVC; 19 CFR (d); GN 34(h) NC, BU or BD for RVC, 19 CFR (d), GN 35(h) De Minimis (most common threshold) Sets INVENTORY MANAGEMENT METHODS Fungible Goods & Materials 10% of adjusted value (with exclusions); 19 CFR ; GN 29(e) Value of the non-originating components may not exceed 10% of the AV of the set; GN 29(c)(v); 19 CFR LIFO, FIFO, Average, other GAAP-recongized method; GN 29(h) CLAIMS & DETERMINATIONS Post-Importation Claims 19 USC 1520(d); 19 CFR Reconciliation Claims Yes, 71 FR 37596, June 30, 2006 Determinations Yes, if correspondence with Communicated to Exporter exporter 10% of the adjusted value (with exclusions); 19 CFR ; GN 32(e) Value of the non-originating components may not exceed 15% of the AV of the set; GN 32(c)(v); 19 CFR LIFO, FIFO, Average, other GAAP-recongized method; GN 32(h) 19 USC 1520(d); 19 CFR Yes, 78 FR 27984, May 13, 2013 Yes, if correspondence with exporter 10% of the adjusted value (with exclusions); 19 CFR ; GN 33(e) Value of the non-originating components may not exceed 15% of the AV of the set; GN 33(n)(iv); 19 CFR LIFO, FIFO, Average, other GAAP-recongized method; GN 33(j) 19 USC 1520(d); 19 CFR Yes, 78 FR 27984, May 13, 2013 Yes, if correspondence with exporter 10% of the adjusted value (with exclusions); 19 CFR ; GN 34(e) Value of the non-originating components may not exceed 15% of the AV of the set. GN 34(c)(iv); 19 CFR LIFO, FIFO, Average, other GAAP-recongized method; GN 34(j) 19 USC 1520(d); 19 CFR Yes, 78 FR 27984, May 13, 2013 Yes, if correspondence with exporter 10% of the adjusted value (with exclusions), 19 CFR , GN 35(e) Value of the non-originating components may exceed 15% of the AV of the set; GN 35(e)(i); 19 CFR LIFO, FIFO, Average, other GAAP-recongized method; GN 35(j) 19 USC 1520(d); 19 CFR Yes, 78 FR 27984, May 13, 2013 Yes, if correspondence with exporter Pattern of Conduct Clause Yes, 19 CFR Yes, 19 CFR Yes, 19 CFR Yes, 19 CFR Yes, 19 CFR /19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 9

10 Provision CBERA CBTPA ATPA ATPDEA GENERAL INFO & DATES Preferential Trade Legislation Name Caribbean Basin Economic Recovery Act Caribbean Basin Trade Partnership Act Andean Trade Preference Act Implementation Date January 1, 1984 October 5, 2000 December 4, 1991 October 31, 2002 Expiration ne 9/30/2020 Ecuador: 7/31/2013 (expired) Colombia: 5/15/2012 (expired) Peru: 12/31/10 (expired) Bolivia: 12/15/08 (expired) Complete Duty Phase-Out Immediate Immediate Immediate Immediate Merchandise Processing Fee (MPF) Direct Shipment Imported Directly Transshipment Exempt for all products of CBERA beneficiary countries, whether or not claiming preference Imported Directly: May NOT enter the commerce of a nonbeneficiary country except for non-retail sale where the importation is the result of the original transaction, may NOT undergo further production in a 3rd country; 19 CFR Exempt for all products of CBERA beneficiary countries, including goods in HTS Andean Trade Promotion and Drug Eradication Act Ecuador: 7/31/2013 (expired) Colombia: 5/15/12 (expired) Peru 12/31/10 (expired) Bolivia: 12/15/08 (expired) Exemption Exempt only for HTS CFR 24.23(c)(1)(i) Imported Directly: May NOT enter Imported Directly: May NOT enter the the commerce of a non-beneficiary commerce of a non-beneficiary country excerpt for non-retail sale country except for non-retail sale where the importation is the result where the importation is the result of of the original transaction, may the original transaction; may NOT NOT undergo further production in undergo further production in a 3rd a 3rd country; 19 CFR (d) country; 19 CFR and (d). Goods may be exported from a former CBTPA country that became a CAFTA country as long as the originconferring activity occurred in the CBTPA. Imported Directly: May NOT enter the commerce of a non-beneficiary country except for non-retail sale where the importation is the result of the original transaction; may NOT undergo further production in a 3rd country; 19 CFR (b); 19 CFR (d) Primary Responsibility for Compliance Covered n-textile Goods Importer Importer Importer, Exporter with regard to ATPA Declaration Benefits apply to petroleum products, watches, handbags, luggage, flat goods, work gloves, leather apparel, tuna and footwear, 19 CFR Importer, Exporter with regard to Certificate of Origin Benefits apply to goods listed on CBP Form 449, 19 CFR and Subchapter 21, Chapter 98 (petroleum products, watches, footwear, handbags, luggage, flat goods, work gloves, leather apparel, and tuna) 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 10

11 Provision CBERA CBTPA ATPA ATPDEA CITATIONS HTS General te (GN) GN 7 GN 17; Subchapter XX, Chapter GN 11 GN 11; Subchapter 21, Chapter US Code 19 USC USC USC USC CFR 19 CFR CFR CFR CFR (Subpart B) Marking Rules 19 CFR CFR CFR CFR 134 Special Program Indicator "E" "E*" "R"; Applicable subheading, Subchapter XX, Chapter 98 "J" and "J*" "J+"; Applicable subheading, Subchapter XXI, Chapter 98 ORIGINATION, ETC. Rules of Origin Citations General te 7(b) 19 CFR General te 17(b); 19 CFR (b) General te11(b) 19 CFR General te11(b) 19 CFR (c) Rules of Origin Regional Value Content + substantial transformation NAFTA GN 12 rules of origin apply. May use CAFTA-DR materials; GN 17(e); 19 CFR Regional Value Content + substantial transformation or "growth, product, and manufacture" Regional Value Content + substantial transformation or "growth, product, and manufacture" (b) Tariff Shift Rule Citations Yes, General te 12(t) Comply with 2007 HTSUS N/A Yes N/A N/A Comply with 2012 HTSUS N/A N/A N/A Chemical Reaction and Related Rules of Origin NAFTA GN 12 rules of origin apply, (GN 17(e)); 19 CFR (b) Special Origination Rules Drawback Restrictions Repair & Alteration Provision 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 11

12 Provision CBERA CBTPA ATPA ATPDEA Documentation required in the, declaration submitted upon Yes, CBP Form 450 signed by, must submit an "ATPA Yes, CBP Form 449 signed by exporter importer's possession at the time of claim request, as provided for in 19 CFR exporter Declaration," per 19 CFR , upon request VALUE Regional Value Content (RVC) 19 CFR ; GN 19 CFR (b); General te GN 11(b)(i)(B), 19 CFR GN 11(b)(i)(B), 19 CFR (d) Citations 7(b)(i)(B), (b)(iii) 12(c) Regional Value Content (RVC) CBERA materials + direct cost Transaction Value & Net Cost ATPA materials + direct cost of ATPDEA materials + direct cost of Calculation Methods of processing where there is RVC processing processing General RVC Percentages Minimum 35% of appraised value (up to 15% US content) See NAFTA regulations Minimum 35% of appraised value (up to 15% US content) Special Regimen for Automotive Goods De Minimis Provision N/A N/A N/A N/A INVENTORY MANAGEMENT METHODS Fungible Goods & Materials CLAIMS & DETERMINATIONS Post-Importation Claims Post Entry Amendment (PEA), Post Summary Correction (PSC) or 19 USC 1514 Post Entry Amendment (PEA), Post Summary Correction (PSC) or 19 USC 1514 Summary Correction (PSC) or 19 USC 1514 Minimum 35% of appraised value (up to 15% US content) Summary Correction (PSC) or 19 USC 1514 Reconciliation Claims Determinations If correspondence with exporter If correspondence with exporter Yes, if correspondence with exporter Yes, if correspondence with exporter Communicated to Exporter Pattern of Conduct Clause 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 12

13 Provision GSP AGOA GENERAL INFO & DATES Preferential Trade Legislation Name Generalized System of Preferences African Growth and Opportunity Act Implementation Date January 1, 1976 October 5, 2000 Expiration 7/31/2013 (expired) 9/30/2015 Complete Duty Phase-Out Immediate Immediate Merchandise Processing Fee (MPF) Direct Shipment Imported Directly Transshipment Primary Responsibility for Compliance Products of Least Developed Countries are exempt, GN 4(b)(i); 19 CFR 24.23(c)(1)(iv) Imported Directly: May NOT enter the commerce of a 3rd country except for non-retail sale where the importation is the result of the original transaction, may NOT undergo further production in a 3rd country, may undergo limited operations (sorting, grading, testing, packing, labeling, etc.) in the free trade zone of beneficiary country; 19 CFR (c). May enter into the commerce of any of four former GSP countries per 19 CFR (e). Importer; Exporter with regard to 19 CFR (a)(1)(i) declaration Covered n-textile Goods. Exempt when products of an LDBDC per 19 CFR 24.23(c)(1)(iv), or when entered under HTS 9819, per 19 CFR 24.23(c)(1)(i) Imported Directly: May NOT enter the commerce of a nonbeneficiary country except for non-retail sale where the importation is the result of the original transaction, may NOT undergo further production in a 3rd country; 19 CFR (e)4; 19 CFR (d). Importer; Exporter with regard to 19 CFR (a)(1)(i) declaration 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 13

14 Provision GSP AGOA CITATIONS HTS General te (GN) GN 4 GN 16 US Code 19 USC USC CFR 19 CFR CFR a Marking Rules 19 CFR CFR 134 Special Program Indicator "A" "A+" (Least-Developed Beneficiary Developing Countries) "A*" (with exceptions) "D" ORIGINATION, ETC. Rules of Origin Citations General te 4(b)(ii) & 4(c); 19 CFR ; 19 USC 2463(a)(2) General te 16(b) 19 CFR a (referencing 19 CFR , , and ) Rules of Origin Regional Value Content + substantial transformation Regional Value Content + substantial transformation Tariff Shift Rule Citations N/A N/A Comply with 2007 HTSUS Comply with 2012 HTSUS N/A Chemical Reaction and Related Rules of Origin Special Origination Rules Drawback Restrictions Repair & Alteration Provision Documentation required in, GSP Declaration upon, GSP Declaration upon the importer's possession at request, as provided for in 19 request, as provided for in 19 the time of claim CFR CFR and 19 CFR a(d) N/A 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 14

15 Provision GSP AGOA VALUE Regional Value Content (RVC) Citations 19 CFR (a)(1), ; GN 4(b)(ii) & (c) GN 16(b)(ii); 19 CFR 178a(d)(4) Regional Value Content (RVC) Calculation Methods GSP materials + direct cost of processing AGOA materials + direct cost of processing General RVC Percentages Minimum 35% of appraised value Minimum 35% of appraised value (up to 15% US content) Special Regimen for Automotive Goods De Minimis Provision N/A N/A INVENTORY MANAGEMENT METHODS Fungible Goods & Materials CLAIMS & DETERMINATIONS Post-Importation Claims Post Entry Amendment (PEA), Post Summary Correction (PSC) or 19 USC 1514 Post Entry Amendment (PEA), Post Summary Correction (PSC) or 19 USC 1514 Reconciliation Claims Determinations Communicated to Exporter If correspondence with exporter If correspondence with exporter Pattern of Conduct Clause 11/19/13 DISCLAIMER: THIS INFORMATION IS FOR COMPARATIVE PURPOSES AND IS NOT LEGALLY BINDING 15