U.S. TARIFF PREFERENCE LEVEL ALERT – TPL ON NON-WOOL APPAREL FROM THE U.S. IS 88% UTILIZED

As of June 22, 2009 the TPL utilization for non-wool apparel from the United States is 7,910,378 square meter equivalents (SME’s), or 88%.

Last year at this time, the utilization for these goods was 100% utilized on June 4.

Each year there are 9 million SMEs of cotton and man-made apparel 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.

TPL utilization for wool apparel is at 6%.

Importers may wish to monitor the utilization levels by visiting the Department of Foreign Affairs and International Trade website at:
http://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.