December 1, 2022
Effective January 1, 2023, the second phase of the pocket bag fabric rule for blue denim apparel under the United States-Mexico-Canada Free Trade Agreement (USMCA) will be implemented.
This provision applies to woven apparel goods of HTS Chapter 62 that are made of blue denim fabric of HTS subheadings 5209.42, 5211.42, 5212.24 and/or 5514.30, which contain a pocket or pockets. If applicable, the pocket bag fabric must be formed and finished in the territory of one or more of the USMCA countries.
The provision found in General Note 11(o), Chapter 62, Rule 5 of the HTS states that pocket bag fabric is considered formed and finished in one or more USMCA countries if the pocket bag fabric has been formed from yarn that was wholly formed and finished in the territory of one or more of the USMCA countries.
The first phase of the pocket bag fabric Chapter Rule, found in General Note 11(o), Chapter 61, Rule 4 and Chapter 62, Rule 6, was effective January 1, 2022. This rule applies to apparel goods of Chapters 61 and 62 of the HTS that contain a pocket or pockets, the pocket bag fabric must be formed and finished in the territory of one or more of the USMCA countries from yarn wholly formed in one or more of the USMCA countries.
All apparel shipments claiming USMCA preference are subject to verification. Claims that are unable to be substantiated may be denied preferential tariff treatment and false claims may result in the issuance of penalties.
If additional information is needed, please contact Anita Harris, Textile Policy Branch at firstname.lastname@example.org
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com
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