U.S. TARIFF PREFERENCE LEVEL ALERT – KNITTED FABRIC IS AT 77% & APPAREL IS AT 56%

As of April 5, 2010, import TPL utilization for cotton or man-made fibre KNITTED FABRICS was at 1,540,651 of 2 million SME’s or 77%. Last year at this time the utilization for these goods was at 64% and was fully utilized on May 27.

TPL utilization for APPAREL made in the U.S. from non-originating cotton & man-made fibre yarns and/or fabrics was at 5,071,413 of 9 million SMEs or 56%. Last year at this time, the utilization for these goods was at 46%, and was fully utilized on July 14.

Each year there are 9 million SMEs of cotton and man-made apparel and 2 million SMEs of knitted fabrics under TPL allocated to importers on a first-come, first-served basis. Once the utilization level reaches 100%, shipments of those goods produced in the U.S. from non-NAFTA materials or yarns are subject to MFN duty rates of 17-18% on apparel and 7-10% on knitted fabrics.

Importers may wish to monitor the utilization levels by visiting the Department of Foreign Affairs and International Trade website at:
www.international.gc.ca/controls-controles/textiles/index.aspx?menu_id=21&menu=R

Additional information concerning this and other recent developments is available from our technical consulting group.