DUTY REFUNDS AVAILABLE UNDER NAFTA ON TEXTILE APPAREL MADE FROM NON-ORIGINATING FABRICS

Generally, textile apparel made in the U.S. from offshore-origin yarns or materials is subject to duty once the tariff preference level (TPL) has been reached. This year, TPL ran out on June 4.

There is, however, a list of “short supply” materials, and if apparel is made from those non-originating materials, it can qualify under NAFTA, duty-free even if the material is made offshore.

By mutual agreement under NAFTA, certain fabrics which are in short supply in North America are exempted from the “yarn-forward” concept for certain specified goods, and are considered to be originating if they are cut and sewn or otherwise assembled in the territory.

The following are examples of goods deemed to qualify under NAFTA regardless of the origin of the material:

  • Woven apparel made from woven fabrics of filament yarns of viscose rayon (54.08)
  • Woven apparel made from woven fabrics of combed wool or fine animal hair, 340g/m2 by weight or less, containing wool, 20% by weight or more fine animal hair and 15% by weight or more of man-made staple fibres (5112.30)
  • Woven apparel made from cut corduroy fabrics containing 85% or more by weight of cotton and containing more than 7.5 wales per centimetre (5801.22)
  • Men’s and boys’ shirts made from woven fabrics of cotton, 85% or more by weight of cotton, weighing 200g/m2 or less, which may be bleached, piece dyed, yarn dyed, or printed of average yarn number more than 135 metric
  • Men’s and boys’ nightshirts and pyjamas made from circular knitted fabric, solely of cotton yarns measuring less than 100 decitex per single yarn (6006.21.10)
  • Women’s and girls briefs, panties, nightdresses and pyjamas made from circular knitted fabric, solely of cotton yarns measuring less than 100 decitex per single yarn (6006.21.10)

Under NAFTA, refund claims are allowed up to one year after importation.

Importers are encouraged to contact our technical consulting team to determine if their dutiable U.S. origin apparel is eligible for NAFTA duty-free treatment.