Imported fabric enters Guatemala free of import duty and VAT under temporary admission, but if the garment is to reach the United States duty-free, the yarn and the fabric must come from the United States or the CAFTA-DR region: "only apparel using yarn and fabric from the United States, Central America and the Dominican Republic qualifies for duty-free benefits" (USTR, verified Aug 22, 2026). The two regimes cut across each other: Asian fabric means a Guatemalan customs saving but full duty in the United States; regional or US fabric means duty-free access. The exception is the Short Supply List (Annex 3.25): fibers, yarns and fabrics declared not commercially available in the region qualify even when sourced from outside; the detail of the process appears in commercial guides and with CBP.
Can I import Asian fabric duty-free and still export to the US duty-free?
According to the cited documentsSetting up a plant
Sources
USTR CAFTA Policy Brief Textiles in the CAFTA-DR
MakeMine Guía CAFTA-DR
CBP Modificaciones a reglas de origen textiles CAFTA-DR
