2012 October No.71 – Trade Agreements


Rayon yarn from China was woven into fabric in India, and then cut and sewn into blouses in Morocco. The blouses were shipped from Morocco to France, where they were consolidated into a container bound for New York. Does the resulting garment qualify for the Moroccan Free Trade Agreement, and if so, under what portion of the agreement?

A. Yes, it qualifies as originating.

B. Yes, it qualifies for the Trade Preference Level provision.

C. No, its country of origin is India.

D. No, its country of origin is Morocco.

E. No, it does not qualify because it was not directly shipped to the U.S.

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The Answer is: B

Citation: HTSUS 9912.99.20, Subchapter XII, U.S. Note 1, and U.S. Note 64(a) & (b)

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