Would a garment classifiable in Chapter 62 and shipped to the U.S. qualify for treatment under the U.S. – Australia Free Trade Agreement (UAFTA) if it is manufactured in Australia of Australian silk (94%), elastomeric yarn made in Peru (3%) and cotton lace made in Ethiopia (3%)?
A. Yes, because the chief weight of the fabric is made in the territory of a UAFTA party
B. No, because the cotton lace trimming is not made in the territory of a UAFTA party
C. Yes, because the de minimus rule states “an originating textile or apparel good may contain 7% by weight of foreign fibers or yarns”
D. No, because the fact that the cotton lace is made in Ethiopia would shift the garment to be considered under the African Growth and Opportunity Act
E. No, because the elastomeric yarn is made in Peru
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The Answer is: E
Citation: Harmonized Tariff Schedule, General Note 28 (d)(i)
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