Trade Preference ProgramsImports of certain Haitian manufactured textile and apparel goods are eligible for duty-free treatment under the Caribbean Basin Trade Partnership Act (CBTPA). Additional benefits under CBTPA have been added through the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE), the Food Conservation and Energy Act of 2008 (HOPE II) and the Haiti Economic Lift Program of 2010 (HELP).
For Haitian Textiles And Apparel
CBTPA and HOPE established unlimited duty-free treatment for various apparel products, with certain restrictions regarding the source of the yarns and fabrics used in the apparel, and duty-free treatment for certain apparel up to certain annual quotas, known as tariff preference levels (TPLs). HOPE II and HELP expand these existing preference programs by allowing additional textile and apparel articles to qualify for duty-free treatment, as well as increasing some of the TPLs.
The legislation for each program outlines the requirements and restrictions for duty-free treatment, which are enforced by U.S. Customs and Border Protection (CBP). While OTEXA can provide general advice and guidance on the trade preferences available to importers (see “FAQs”), CBP is the final arbiter on whether imports of Haitian textiles and apparel qualify for duty-free treatment.
While CBP enforces the TPLs, OTEXA does publish trade data and fill rates for each TPL, as well as general import data for Haitian textile and apparel products.
OTEXA also administers the Earned Import Allowance Program (EIAP), which was established in 2008 under HOPE II and later modified in 2010 by HELP.
Haiti Trade Preference Programs: Frequently Asked Questions
Notification of Annual Quantitative Limit for Certain Apparel under Haiti HOPE (Value-Added Quota) for 2012/2013 Annual Period. For the period December 20, 2012 through December 19, 2013, the annual quantitative limit of the Haiti HOPE Value-Added program is 306,742,329 square meter equivalents.
GAO Report for 2012: “Follow-up on the Haiti Earned Import Allowance Program” (GAO-13-219R) In compliance with its mandate under Haiti HOPE II, the GAO has issued its most recent report on the usage and effectiveness of the Haiti Earned Import Allowance during the 2011/2012 period.
Relevant Legislative Texts of CBTPA, HOPE, HOPE II and HELP:
CBTPA Legislation: Public Law 106-200
CBP Summary of CBTPA trade preferences for Textiles and Apparel
CBP Summary of HOPE trade preferences (TBT-07-006)
HOPE II (2008):
HOPE II Legislation
CBP Summary of HOPE II trade preferences (TBT-08-013)
Earned Import Allowance Program
The Earned Import Allowance Program (EIAP) provides duty-free entry for certain apparel from Haiti into the United States. For every two or three (depending on the date of the inquiry) square meter equivalents (SME) of qualifying fabric, one SME may enter the U.S. duty-free using third party yarn and fabric. Currently, OTEXA’s Interim Procedures for the EIAP reflect the original program under HOPE II, with a “3 for 1” allowance. However, on May 24, 2010, HELP modified the EIAP by allowing one SME to enter duty-free for every two SMEs of qualifying fabric. OTEXA’s forthcoming final procedures for the EIAP will reflect this modification.
Qualifying producers and their designated proxies can only access the EIAP through OTEXA’s online system. The online system allows qualifying producers to request a new account, submit a request for a deposit into an existing account, redeem credits for import certificates, and review account balances and activity.
Earned Import Allowance Program: Interim Procedures (issued 9/15/2008)
Earned Import Allowance: Frequently Asked Questions
Earned Import Allowance Program: Webinar hosted by OTEXA (pre-Haiti HELP, reflecting “3 for 1” allowance)
Office of Textiles and Apparel (OTEXA)
U.S. Department of Commerce
Washington, DC 20230
Phone: (202) 482-5078 | Fax: (202) 482-2331