CRS Reports on Improvements Made by Haitian HOPE and HELP Acts
The Congressional Research Service has issued a report entitled “The Haitian Economy and the HOPE Act.
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(The Haitian Hemispheric Opportunity through Partnership Encouragement Acts of 2006 and 2008 (collectively, the HOPE Act) allow for the duty-free treatment of select apparel imports from Haiti made from less expensive third-country inputs (e.g., non-regional yarns, fabrics, and components), provided Haiti meets certain rules of origin and eligibility criteria.)
Apparel Production/Exports are Responsive to Changes Made by HOPE II
The HOPE Act of 2008 (HOPE II) extended HOPE Act preferences for 10 years, expanded coverage of duty-free treatment to more apparel products, particularly knit articles, and simplified the rules, making them easier to use. HOPE II also amended eligibility requirements by requiring Haiti to establish a program1 to help Haitian apparel factories comply with meeting core labor standards, Haitian labor laws, and occupational health and safety rules, as a prerequisite for utilizing the tariff preferences.
CRS states that assessments of the effectiveness of the HOPE Act of 2006 (HOPE I) were disappointing; however, early evidence suggests that apparel production and exports are responding to the changes made by HOPE II.
(See ITT’s Online Archives or 10/10/08 and 10/20/09 news, 08101010 and 09102030, for BP summaries CBP’s final rule implementing HOPE I and HOPE II, and the President’s extension of HOPE II benefits.)
HELP Act Improves U.S. Market Access to Haitian Apparel
CRS reports that in response to the January 2010 earthquake in Haiti, Congress amended the HOPE Act with the Haiti Economic Lift Program (HELP) Act of 2010 (P.L. 111- 171), which improves U.S. market access for Haitian apparel exports.
HELP Act changes including extending the Caribbean Basin Trade Partnership Act (CBTPA) and the HOPE Act through September 30, 2020; allowing the value-added rule to remain at 50% through 2015; increasing the woven tariff preference level (TPL) to 200 million square meter equivalents (SMEs), with many exclusions to accommodate U.S. industry; expanding the knit TPL similarly; reducing the 3-for-1 earned import credit to 2-for-1; and expanding the list of products eligible for duty-free treatment under special assembly rules.
The HELP Act requires U.S. Customs and Border Protection to verify that apparel articles imported under the TPLs are not transshipped illegally into the U.S., and to develop a plan to evaluate and improve Haiti's customs capabilities.
1The Technical Assistance Improvement and Compliance Needs Assessment and Remediation (TAICNAR) Program.
(See ITT’s Online Archives or 05/26/10 news, 10052663, for BP summary of the President signing the HELP Act into law.)
(Report dated 06/24/10)