This message is to inform the trade community of the following modifications pursuant to Presidential Proclamation 10128 (PP 10128) issued on December 22, 2020 and published in the Federal Register (85 FRN 85491) on December 29, 2020. The modifications include the reinstatement of the Democratic Republic of Congo as an African Growth Opportunity Act (AGOA) beneficiary and designation as a lesser developed beneficiary (LDB) sub-Saharan African country; the extension of the US-Israel Free Trade Agreement on certain agricultural products, and duty reductions for select tariff numbers negotiated under the European Union Agreement.

DEMOCRATIC REBUBLIC OF THE CONGO (DRC)

Effective January 1, 2021, the DRC is reinstated and designated as a lesser developed beneficiary (LDB) sub-Saharan African country under section 112(c) of the AGOA.  In order to reflect this designation in the Harmonized Tariff Schedule of the United States (HTSUS), the general note 16(a) to the HTSUS is modified to include the DRC on the list of beneficiary sub-Saharan countries and note 2(d) to subchapter XIX of chapter 98 of the HTSUS as a qualifying lesser developed beneficiary sub-Saharan African country.  

Goods imported from the DRC entered for consumption, or withdrawn from warehouse for consumption, on or after January 1, 2021, 12:01 AM EST are eligible to claim preferential tariff treatment under AGOA, by placing the Special Program Indicator (SPI) 'D' before the eligible tariff number.  The goods must meet the 35% value-added rule and all applicable AGOA requirements. 

Textile and apparel goods are not eligible for entry under subchapter XIX of chapter 98 of the HTSUS until the USTR has determined that the DRC has adopted an effective visa system and made significant progress towards implementing Customs procedures in line with AGOA requirements.

CBP will complete the ACE programming of the DRC changes on January 14, 2021.  Importers may file a Post Summary Correction (PSC) or file a protest (pursuant to 19 USC § 1514) to claim duty refunds on eligible entries filed on January 1, 2021 thru January 14, 2021.

US-ISRAEL FREE TRADE AGREEMENT

PP 10128 extends the US-Israel Free Trade Agreement benefits on Agricultural Products through December 31, 2021.

Effective January 1, 2021, 12:01 AM EST, eligible agricultural goods (as identified in Annex I of 85 FRN 85491) imported from Israel and entered, or withdrawn from warehouse, for consumption, may claim preferential tariff treatment into the United States. 

CBP has completed ACE programming for these duty modifications.

TARIFF DUTY REDUCTION

The United States entered into an agreement with the European Union on November 20, 2020.  As a result, PP 10128 modifies the duty rates for six tariff items identified in Annex II of 85 FRN 85491.  The six tariff subheadings subject to this duty reduction are the following: 1604.20.05, 3214.90.50, 3601.00.00, 7013.41.50, 9613.11.00, and 9613.90.80.  These duty reductions are retroactive as of August 1, 2020 and applicable for unliquidated entry summaries or entry summaries not final as of August 1, 2020.   Importers may file a Post Summary Correction (PSC) or file a protest (pursuant to 19 USC § 1514) to claim duty refunds on eligible entries.

Further duty reductions on the following five tariff subheadings will be effective on August 1, 2021 for goods entered, or withdrawn from warehouse, for consumption: 1604.20.05, 3214.90.50, 3601.00.00, 9613.11.00, and 9613.90.80. 

CBP has completed ACE programming for these duty modifications.

Questions regarding this notice may be directed to the CBP – Office of Trade – Trade Policy and Programs – Textiles and Trade Agreements Division – Trade Agreements Branch at FTA@CBP.DHS.gov.

REFERENCE DOCUMENTS

The Presidential Proclamation 10128:

https://www.whitehouse.gov/presidential-actions/proclamation-take-certain-actions-african-growth-opportunity-act-purposes/

Federal Register Notice - 85 FRN 85491 published on December 29, 2020:

https://www.federalregister.gov/public-inspection/2020-28878/trade-african-growth-and-opportunity-act-beneficiary-country-designations-and-modifications-proc

For more information on the AGOA, visit USTR’s website:

https://ustr.gov/issue-areas/trade-development/preference-programs/african-growth-and-opportunity-act-agoa

For more information on Trade in agricultural products of Israel, visit USTR’s website: https://ustr.gov/trade-agreements/free-trade-agreements/israel-fta.