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class=Section2> footwear items.6 Section 213(a)(6) of the CBERA as amended (19 U.S.C. § 2703 (a)(6)) also provides for duty-free treatment of certain beverages produced in Canada from rum produced in CBERA beneficiary countries.
The HOPE Act as amended (Section 213a of the CBERA) provides for apparel imports from Haiti to enter the United States duty-free if the “applicable percentage” of the value of inputs and/or costs of processing is met from any combination of Haiti, United States, U.S. FTA or regional preference program partner countries. The HOPE Act as amended also provides duty-free treatment for certain apparel articles if imported directly from Haiti or the Dominican Republic, provided that Haiti and the Dominican Republic develop procedures to prevent transhipment. The HOPE Act as amended also removes duties for three years on a specified quantity of woven apparel imports from Haiti made from fabric produced anywhere in the world. Additionally, the Act allows duty-free treatment for any apparel article classifiable under heading 6212.10 of the HTS (certain brassieres), if the article is both cut and sewn or otherwise assembled in Haiti or the U.S., or both without regard to the source of the fabric or components from which the article is made. Finally, the HOPE Act as amended allows automotive wire harnesses imported from Haiti that contain at least 50 percent by value of materials produced in Haiti, the United States, or U.S.-FTA partner or regional preference program beneficiary countries to qualify for duty-free treatment. The HOPE Act as amended also establishes an International Labor Organization monitoring program, and requires the President to establish certain procedures to monitor Haiti’s and individual producers’ compliance with the eligibility criteria.
Under section 212(e) of the CBERA as amended (19 U.S.C. § 2702 (e)), the President may, in certain circumstances, withdraw or suspend the designation of any country as a beneficiary country, and may also withdraw, suspend, or limit the application of preferential treatment to any article of any beneficiary country. The CBERA as amended does not alter the benefits the United States provides under its Generalized System of Preferences (GSP) program to other developing countries.
Benefits provided under the original CBERA are permanent. The benefits added by the CBTPA are available through 30 September 2010, or until the Free Trade Area of the Americas (FTAA) or other free trade agreement between the United States and the beneficiary country enters into force, whichever occurs first.7 Additionally, certain benefits authorized by the HOPE Act as amended are available to Haiti through 20 December 2011.
2.Specific policy objectives of the measure
The CBERA as amended is intended to help Caribbean Basin countries develop their economies and diversify their exports. The CBERA as amended furthers these goals by creating opportunities to expand trade between the United States and beneficiary countries, thus promoting economic opportunity and growth in the region. The CBERA as amended is further intended to
6 With respect to footwear, note that section 1558 of the Miscellaneous Trade and Tariff Act of 2004 amended section 213(b) of the CBERA to reduce the number of footwear items that are ineligible to receive duty-free treatment.
7 Under section 201(a)(3)(B) of the Dominican Republic-Central America-United States Free Trade Implementation Act, three exceptions apply to withdrawal of CBERA/CBTPA beneficiary status; the United States will continue to treat CAFTA-DR countries as beneficiary countries: (1) to preclude the International Trade Commission from cumulating CBERA imports in antidumping and countervailing duty investigations according to section 771(7)(G)(ii)(III) of the Tariff Act of 1930 (19 U.S.C. 1677(7)(G)(ii)(III)); (2) to implement duty free treatment for certain ethyl alcohol provided under paragraph 12 of Appendix I of the General Notes to the Schedule of the United States to Annex 3.3 of the Agreement; and (3) for purposes of taxpayer deductions for business trips to CBERA countries. Additionally, current CBERA and CBTPA beneficiary countries will be able to continue to count inputs from the former beneficiaries toward qualifying for benefits under CBERA and CBTPA.