Free Trade Tuesday - AGOA

Implemented in 2000, the African Growth and Opportunity Act provides for the duty free entry of certain non-textile articles previously excluded from preferential treatment under the Generalized System of Preferences program, as well as, the duty and quota-free entry of certain textile and apparel articles that meet certain specific production requirements. The AGOA is intended to encourage economic growth in more than three dozen sub-Saharan countries. This program will be in effect until September 30, 2015.

The origin criteria under AGOA are similar to that of GSP. In order to be eligible special duty treatment under AGOA, an article must meet the following criteria:

·The article is imported directly from a designated beneficiary country.

·The sum of (1) the cost or value of the materials produced in one or more designated beneficiary countries, plus (2) the direct costs of processing operations performed in the designated beneficiary country, or in one or more members of an association of countries which is treated as one country, is at least 35 percent of the appraised value of the article.

·Up to 15 percent of the 35 percent local value content requirement may be attributable to the cost or value of materials produced in the United States.

·Origin will not be based on simple combining or packaging operations or dilution with water or another substance, as these processes do not materially alter the characteristics of the article.

AGOA Key Facts

Expiration: 9/30/2015 - GSP Provisions
HTS General Note: GN 16
Imported Directly: Yes
SPI: D
De Minimis: 10% Weight - Textiles
Origin Criteria: 35% - with 15% U.S. Origin Content Allowable, Substantial Transformation MPF: No Exemption
Countries: Click for list.
Regulations:
19 CFR 10.211
10.178a