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What exceptions exist to CAFTA-DR's yarn-forward rule: short supply, wool, TPL?

According to the cited documentsTrade

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 3.27

The 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

Sources

  • CAFTA-DR

    Texto oficial en español · capítulo 3, sección G textiles y vestido

    infotrade.economia.gob.svAccessed Sep 13, 2026Go to the source
  • CAFTA-DR

    Texto oficial en español · anexo 3.25, lista de mercancías en escaso abasto

    infotrade.economia.gob.svAccessed Sep 13, 2026Go to the source
  • CAFTA-DR

    Texto oficial en español · anexo 3.27, prendas de lana ensambladas en Costa Rica

    infotrade.economia.gob.svAccessed Sep 13, 2026Go to the source
  • CAFTA-DR

    Texto oficial en español · anexo 3.28, prendas no originarias de Nicaragua

    infotrade.economia.gob.svAccessed Sep 13, 2026Go to the source
  • CAFTA-DR

    Texto oficial en español · anexo 3.29, mercancías no comprendidas en la sección G

    infotrade.economia.gob.svAccessed Sep 13, 2026Go to the source
  • CAFTA-DR

    Texto oficial en español · anexo 4.1, reglas de origen específicas

    infotrade.economia.gob.svAccessed Sep 13, 2026Go to the source
  • InfoTrade / MINEC El Salvador

    Portal oficial CAFTA

    infotrade.economia.gob.svAccessed Aug 19, 2026Go to the source
  • USITC

    Office of Industries Working Paper ID-092, The Impact of Apparel Rules of Origin

    usitc.govAccessed Aug 19, 2026Go to the source