Cotton fabric is knitted in the U.S. from U.S. yarn and is sent to Guatemala where it is cut. The cut components are sewn into a dress in Jamaica using U.S. sewing thread. The dresses are returned to Guatemala where they are embroidered using Guatemalan embroidery thread that comprises 26% of the value of the garment. The dresses are imported into the U.S. from Guatemala. Would this dress qualify for Caribbean Basin Trade and Partnership (CBTPA)?
A. This dress qualifies for CBTPA.
B. This dress does not qualify for CBTPA because the fabric is cut in Guatemala.
C. This dress does not qualify for CBTPA because the embroidery thread exceeds the permissible de minimis value for foreign findings or trimmings.
D. This dress does not qualify for CBTPA because it does not meet the direct shipment requirement.
E. This dress would be classified in heading 6204 of the HTSUS.
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: A
Citation: HTSUS Chapter 98, Subchapter XX, General Note 17(e)(i)
[/bg_collapse]