US, Morocco modify originating status rule for garments

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The United States recently signed an agreement with Morocco under which the originating status rule for five classes of woven garments has been modified to allow the use of certain non-originating fabrics. This implies the specified fabrics for the listed garments may be sourced from outside both the nations. The agreement becomes effective from April 1.

In most instances, qualification of apparel for duty-free entry into the United States under the US-Morocco Free Trade Agreement (USMFTA) requires satisfaction of a ‘yarn forward’ rule, meaning the formation of the yarn and all further processing occur in either of the two countries.

The garments and materials affected by the new agreement include women’s cotton corduroy skirts and divided skirts, cotton corduroy fabrics, women’s man-made fibre blouses, shirts and shirt-blouses, polyester corduroy fabrics and certain women’s trousers, according to a press release from the Office of the US Trade Representative. (DS)

Fibre2Fashion News Desk – India

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