U.S. yarn is woven into cotton fabric and exported to South Africa where it is cut and assembled into trousers. The thread used for sewing is from Korea and the waistbands are formed in Korea. The trousers are washed, packed and shipped from Kenya to the United States. Which of the following statements is true based on the requirements for the African Growth Opportunity Act (AGOA)?
A. These trousers qualify for AGOA.
B. The Korean waistband disqualifies these garments for AGOA.
C. The Korean sewing thread disqualifies these garments for AGOA.
D. These trousers would be classified in Chapter 61 of the HTSUS.
E. These trousers do not qualify for AGOA because they were not shipped directly from South Africa to the U.S.
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The Answer is: C
Citation: HTSUS Chapter 98, Subchapter XIX
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