US Rep. Jim McDermott (Democrat-Washington) has recently introduced legislation that would provide duty-free or reduced duty treatment to certain apparel products from the Philippines that are generally not produced in the US.
These products include men's and boys' cotton knitted shirts; women's and girls' cotton knitted shirts and blouses; men's and boys' cotton trousers, breeches and shorts; women's and girls' cotton trousers, slacks and shorts; men's and boys' cotton underwear; men's and boys' man-made fibre underwear; men's and boys' man-made fibre knitted shirts; women's and girls' man-made fibre knitted shirts and blouses; men's and boys' man-made fibre trousers, breeches and shorts; women's and girls' man-made fibre slacks, breeches and shorts; men's and boys' non-knitted man-made fibre shirts; brassieres and other body support garments; man-made fibre brassieres and other body support garments; man-made fibre swimwear; and cotton swimwear.
These products would be afforded duty-free treatment provided they are wholly assembled in the Philippines or the US and the component determining the article's tariff classification consists entirely of (i) fabric components cut in the US or the Philippines, or both, from fabric and yarns wholly formed in the US; (ii) components knit-to-shape in the US from yarns wholly formed in the US; or (iii) any combination of the fabric components or components knit-to-shape described in points (i) and (ii). In addition, the fabrics, fabric components or knit-to-shape components that determine the tariff classification of the articles would have to be dyed, printed and finished in the US.
The legislation would also provide reduced duty treatment to the aforementioned apparel products if they are made with Philippines fabrics or knit-to-shape components from US yarns (rather than from US fabrics from US yarns), or if the apparel is made with US fabrics or knit-to-shape components from US yarns but the fabric dyeing, printing or finishing does not take place in the US.
Qualifying apparel would be allowed to use foreign fibres and yarns in the component that determines the tariff classification of the article provided their total weight is not more than 10% of the total weight of that component, although any elastomeric yarns would have to be wholly formed in the US. or the Philippines. Lastly, the legislation requires the apparel to be imported directly into the US from the Philippines.
