Annex 3.27 — wool apparel assembled in Costa Rica
50 % of the MFN rate; up to 500,000 SME a year in the first two years
Treaty textCAFTA-DR Anexo 3.27The CAFTA-DR text provides several flexibilities to the yarn-forward rule. Annex 3.25 (short-supply list): fabrics and yarns that may be used without losing origin, for example velveteen fabrics of subheading 5801.23, corduroy of 5801.22 with 85 % or more cotton and more than 7.5 wales per centimetre, certain hand-woven wool fabrics of 5111.11/5111.19; the list applies until the United States publishes a replacement list under articles 3.25.4 and 3.25.5. Annex 3.27: the United States applies 50 % of the MFN rate to tailored wool apparel of headings 6203 and 6204 (categories 433, 435 suit-type jackets only, 442, 443, 444, 447 and 448) cut and sewn in Costa Rica regardless of the fabric's origin, up to 500,000 SME in each of the treaty's first two years. Annex 3.28 (Nicaragua's tariff preference level, TPL): cotton and man-made-fibre apparel of chapters 61 and 62 cut and sewn in Nicaragua receives the preferential rate without being originating, up to 100,000,000 SME in each of the first five years, 80,000,000 in the sixth, 60,000,000 in the seventh, 40,000,000 in the eighth and 20,000,000 in the ninth, and the annex ceases to apply from the tenth year. Annex 3.29: textile or apparel goods not covered by section G (for example wadding and gauze 3005.90, coated fabrics ex 3921, felt footwear ex 6405.20, hat shapes 6501.00). Guatemala has no TPL of its own. Cumulation with Mexico and Canada exists only for chapter 62 (appendix 4.1-B) and is conditional on notifications and on Mexico's FTAs with the Parties.
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- Annex 3.28 — Nicaragua's TPL100,000,000 SME/year (years 1–5), 80 M (6th), 60 M (7th), 40 M (8th), 20 M (9th); ceases from the 10th yearTreaty textCAFTA-DR Anexo 3.28
