House Passes HELP Bill To Expand Haiti Benefits, Extend CBTPA

(Although the bill has been passed by the House, it will not become law until the Senate passes an identical version and it is signed into law by the President.)

CBTPA, and its TPLs and Brassiere Provisions, Would be Extended Thru 2020

The HELP bill would extend the U.S.-Caribbean Basin Trade Partnership Act preference program another ten years, through September 30, 2020 (from September 30, 2010).

The two CBTPA TPLs, for certain knit apparel (other than socks) and certain T-shirts (other than underwear) would also be extended through that date, as would the CBTPA preference provision for certain brassieres with U.S. fabric content.

(Haiti is one of a number of CBTPA beneficiary countries.)

Haiti HOPE, and Woven and Knit TPLs, Would be Extended Thru 2020

The Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE) would be extended for two years, through September 30, 2020 (from September 30, 2018). The HOPE woven and knit apparel tariff preference levels would similarly be extended.

Highlights of Additional HELP Act Provisions

According to a House Ways and Means press release, the HELP Act would also:

Expand the wholly assembled list - provide duty-free treatment for additional textile and apparel products that are wholly assembled or knit-to-shape in Haiti regardless of the origin of the inputs.

Increase the TPLs - increase from 70 million square meter equivalents (SMEs) to 200 million SMEs the respective tariff preference levels (TPLs) under which certain Haitian knit and woven apparel products may receive duty-free treatment regardless of the origin of the inputs. The increase will be triggered in any given year if 52 million SMEs of Haitian apparel enter the U.S. under the existing knit or woven TPL. Once the increase is triggered, certain knit apparel products entering duty-free under the knit TPL will be subject to an 85 million SME sublimit, and certain woven apparel products entering duty-free under the woven TPL will be subject to a 70 million SME sublimit.

Safeguard against transshipment - require U.S. Customs and Border Protection (CBP) to verify that apparel articles imported under the TPLs are not being unlawfully transshipped into the U.S. The bill also authorizes the President to reduce the TPLs to account for unlawful apparel transshipment.

Liberalize the Earned Import Allowance rule - permit the duty-free importation into the U.S. of one SME of apparel wholly assembled or knit-to-shape in Haiti regardless of the origin of the inputs for every two SMEs of qualifying fabric purchased from the U.S.

Extend the value-added rule - extend until December 20, 2015, the rule that provides duty-free treatment for apparel wholly assembled or knit-to-shape in Haiti with at least 50 percent value from Haiti, the U.S., a U.S. free trade agreement partner or preference program beneficiary, or a combination thereof. The bill similarly extends until December 20, 2017, duty-free treatment for Haitian apparel with at least 55 percent of value from qualifying countries, and until December 20, 2018, duty-free treatment for Haitian apparel with at least 60 percent of value from qualifying countries.

Extends duty-free treatment for wire harnesses - extend until December 20, 2016, the rule that provides duty-free treatment for wire harness automotive components imported from Haiti.

Customs support services - require CBP to assess Haiti’s customs-related needs and provide assistance to reestablish Haiti’s port operations. The bill also requires CBP to provide to the Congress a report that describes Haiti’s customs infrastructure needs, sets forth a plan for providing technical assistance, and describes any funds expended to assist Haiti in rebuilding its customs infrastructure. And the bill authorizes funds to help Haiti meet its immediate customs infrastructure needs, and to maintain a U.S. customs team in Haiti.

Sense of Congress - express the sense of Congress that the Office of the U.S. Trade Representative should consult with U.S. trading partners to encourage the establishment of unilateral preference programs with Haiti, and that CBP should consult with U.S. trading partners to prevent unlawful transshipment of textile and apparel products through Haiti into the U.S.

(See future issue of ITT for detailed summary of this House-passed bill.)

House Ways and Means Committee press release (dated 05/05/10) available at http://waysandmeans.house.gov/press/PRArticle.aspx?NewsID=11171

H.R. 5160 as passed by House available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h5160eh.txt.pdf.