The Andean Trade Promotion and Drug Eradication Act (ATPDEA)

If you have any questions about this program, please contact Maria Goodman
at the U.S. Department of Commerce Office of Textiles and Apparel at 202-482-3651
or click here for e-mail access.

**
The information presented on this website is meant to serve as a guide.
Only the official texts and the customs regulations issued to implement the program are definitive.

For complex issues or where interpretation is required, U.S. exporters should seek legal assistance or an
advanced ruling from the customs administration in the country to which they are exporting.
**


See the Office of the U.S. Trade Representative website for general information on the Andean Trade Promotion and Drug Eradication Act (ATPDEA).

What opportunities exist for U.S. textile manufacturers under the ATPDEA?

The Andean Trade Promotion and Drug Eradication Act (ATPDEA) provides a variety of trade preference benefits. In particular, the ATPDEA provides for duty- and quota-free access for certain apparel products manufactured in designated ATPDEA beneficiary countries, as summarized below. The legislation and U.S. Customs interim regulations should be consulted for a detailed presentation of each of these provisions.

Apparel--Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries, or the U.S., or both, exclusively from any one or any combination of the following. These apparel articles receive duty- and quota-free treatment when entered into the U.S. under the appropriate tariff lines of the Harmonized Tariff Schedule of the United States (HTSUS).

Fabrics or fabric components formed or knit-to-shape in the U.S. from yarns formed in the U.S. or the region--Fabrics or fabric components wholly formed, or components knit-to-shape, in the U.S., from yarns wholly formed in the U.S. or one or more ATPDEA beneficiary countries. “Fabrics” include fabrics not formed wholly formed from yarns (i.e. felts and non-wovens), if such fabrics are classifiable under the HTSUS heading 5602 and 5603 and are formed in the U.S. Apparel articles of such components qualify only if all dyeing, printing, and finishing of the fabrics woven or knit in the U.S.

Llama, alpaca, or vicuna fabrics or fabric components formed or knit-to-shape in the region--Fabrics or fabric components formed, or components knit-to-shape, in one or more ATPDEA beneficiary countries, from yarns wholly formed in one or more ATPDEA beneficiary countries, if such fabrics or components are of chief value llama, alpaca, or vicuna. “Fabrics” include fabrics not formed from yarns (i.e. felts and non-wovens), if such fabrics are classifiable under the HTS heading 5602 and 5603 and are formed in one or more APTDEA beneficiary countries.

Fabrics and yarns not available in commercial quantities--Fabrics or yarns determined not to be available from the U.S. industry in commercial quantities in a timely manner that have been identified under Annex 401 of NAFTA or such fabrics or yarns as determined by the President, and are sourced from third parties.

Regional fabrics or components, subject to a limitation--Fabrics or fabric components formed, or components knit-to-shape, in one or more ATPDEA beneficiary countries, from yarns wholly formed in the U.S. or one or more ATPDEA beneficiary countries. “Fabrics” include fabrics not formed from yarns (i.e. felts and non-wovens), if such fabrics are classifiable under the HTS heading 5602 and 5603 and are formed in one or more ATPDEA beneficiary countries. Such apparel articles can be entered duty- and quota-free up to a specified limit. (put a link in here to a chart showing the annual limits.)

Brassieres Cut & Assembled in US or Andean Region--Apparel articles classifiable under HTSUS subheading 6212.10 if it is both cut and sewn or otherwise assembled in the U.S. or one or more ATPDEA beneficiary countries, or both. A producer or entity controlling production is eligible only if aggregate cost of fabric components formed in the US in the preceding year is at least 75% of the value of the fabric.

Hand-loomed, Handmade, & Folklore Articles--Hand-loomed, handmade, or folklore articles of an ATPDEA country, that are mutually agreed upon as qualifying.

Special Rules for Textile and Apparel Articles--
    Findings and Trimmings: Foreign findings and trimming may be used up to 25 percent of the cost of the components. Examples include sewing thread, hook and eyes, snaps, buttons, ‘bow buds’, decorative lace trim, elastic strips, zippers, including zipper tapes and labels, and other similar products.

    Certain Interlinings: Certain interlinings of foreign origin if the value of such interlinings and any findings and trimming does not exceed 25 percent of the cost of the components. The types of interlinings that qualify are a chest type plate, “hymo” piece, or “sleeve header”, of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments. This rule can be terminated if a determination is made that U.S. manufacturers are producing such interlinings in the U.S. in commercial quantities.

    De Minimis: An article otherwise eligible can contain yarns not wholly formed in the U.S. or one or more ATPDEA beneficiary countries, if the total weight of all such yarns is not more the 7 percent of the total weight of the article.

    Special Origin Rule: Nylon filament yarn imported from a country with which the U.S. had a Free trade agreement prior to January 1, 1995 can be used in an otherwise eligible article. Nylon filament yarn that qualifies is classifiable under HTSUS sub-headings 5402.10.30, 5402.10.60, 5402.31.30, 5403.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00.
Footwear (HTSUS 6401 through 6405)--ATPDEA-assembled footwear must contain 35 percent regional value content (from either U.S. and/or ATPDEA countries) and non-U.S./ non-ATPDEA uppers are not permitted in qualifying footwear. A certificate of origin is required for footwear imports. All qualifying footwear from the Andean countries are duty-free except for 17 rubber/fabric and plastic/protective footwear items listed below, which receive no benefits under the ATPDEA and are subject to normal duties. The 17 rubber/fabric and plastic/protective footwear items (HTSUS) are: 6401.10.00, 6401.91.00, 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 6402.91.90, 6402.99.20, 6402.99.80, 6402.99.90, 6404.11.90 and 6404.19.20.

Which countries are eligible for the ATPDEA preferential trade benefits?

Colombia* and Ecuador.
note: Peru is no longer an ATPDEA beneficiary; Peru implemented a free trade agreement with the U.S. in 2009. *On May 15, 2012, when the U.S.-Colombia TPA enters-into-force, Colombia will no longer be eligible for ATPDEA benefits.

Are there any special documentary requirements?

A Certificate of Origin submitted to Customs. The Certificate of Origin must be prepared by the exporter in the ATPDEA beneficiary country in the form below:

- Must be in writing (on the appropriate form) or transmitted electronically in an approved format (containing the same information) pursuant to any electronic data interchange system authorized by Customs for that purpose;
- Must be signed by the exporter or by the exporter’s authorized agent having knowledge of the relevant facts;
- Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is completed in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and
- May be applicable to:
- a single importation of an article into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
- multiple importations of identical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. The term “identical articles” means articles that are the same in all material respects, including physical characteristics, quality, and reputation.

A certificate of origin is required for each shipment of textiles and apparel claiming the preferential trade benefits for textiles and apparel. The U.S. importer must obtain the certificate of origin from the manufacturer prior to presentation of entries to the U.S. Customs Service claiming an ATPDEA preference.

* The importer and exporter are required to retain the certificate of origin for five (5) years and to be able to present it upon demand by the U.S. Customs Service.

What is “transshipment?”

ATPDEA describes "transshipment" as claiming a textile or apparel article for preferential treatment on the basis of material false information concerning the country of origin, manufacture, processing or assembly of the article or any of its components. If it is determined that an exporter has engaged in, then ATPDEA benefits will be denied to such exporter, and any successor of such exporter, for a period of 2 years.

Where do I find U.S. suppliers of fabrics, yarns and threads?

See the listing of U.S. Textile and Apparel Trade Associations.

Where can I find information about the economic and political situations in eligible countries?

U.S. Embassies in these countries have information available on their websites, which also provide up-to-date reports. Several of them have sections dedicated to the ATPDEA opportunities. Visit the State Department website to locate a particular embassy.

Country Commercial Guides - The Country Commercial Guides (CCG) are prepared by US Embassy Staff once a year and contain information on the business and economic situation of foreign countries and the political climate as it affects U.S. business. Each CCG contains the same chapters, and an appendix, which include topics such as marketing, trade regulations, investment climate, and business travel.

Where can I find information on tariff and customs procedures in eligible countries?

You may find general tariff and tax information on the OTEXA Market Reports/Tariffs webpage (by country).

How much textiles and apparel does the United States currently export to eligible countries?

The OTEXA Export Report provides information on U.S. exports to the world of textile and apparel products.

What is a ruling letter and who needs one?

An importer or exporter of merchandise to the United States may request, in writing, a ruling from the U.S. Customs Service concerning U.S. Customs and related laws pertaining to a particular transaction. If there are questions as to the eligibility of a product for receiving the preferential benefits under the ATPDEA, consideration should be given to requesting a ruling letter from the U.S. Customs Service.

The U.S. Customs Service will give full and careful consideration to written requests for rulings or information setting forth, with respect to a specifically described product transaction, a definitive interpretation of applicable law, or other appropriate information. A Customs Ruling letter may be requested by any person, who as an importer or exporter of merchandise, has a direct and demonstrable interest in the question(s) presented in the ruling request, or by the authorized agent of such person. A "person" in this context includes an individual, a corporation, partnership, association, or other entity or group.