DR-CAFTA Textile & Apparel Duty Refund Claims for Costa Rican Products Due by April 1

Issue 85, December 29, 2008

Costa Rica has passed the final piece of required legislation to implement the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). DR-CAFTA is already in force for the other signatories - El Salvador, Honduras, Nicaragua, Guatemala, the Dominican Republic and the United States. This action is retroactive and makes qualifying textile and apparel goods that have been shipped since January 1, 2004 eligible for duty refunds.

President Bush has issued the required proclamation announcing that DR-CAFTA will take effect with respect to Costa Rica as of Jan. 1, 2009. Importers now have 90 days after January 1, 2009 (that is until April 1, 2009) to file for refunds of duties paid from Jan. 1, 2004, through Jan. 1, 2009 on:

• DR-CAFTA originating textile or apparel products that are products of Costa Rica.
• DR-CAFTA originating textile or apparel products that contain Costa Rican inputs and are originating in other DR-CAFTA countries; and
• Any other outstanding refund claims for goods of other DR-CAFTA countries.

It is important to note that DR-CAFTA textile and apparel goods must meet the current rules of origin under that agreement. The agreement has been modified since 2004, most recently on Aug. 15 to require originating pocketing fabric and to relax the yarn-forward requirement for certain apparel articles. Importers of any apparel articles that became single transformation under the Aug. 15 changes should make sure to examine their prior imports of such goods from all DR-CAFTA countries to assess their eligibility for refunds.

If you require additional information or clarification, please contact your local DHL Global Forwarding representative.

Sincerely,

Karl F. Krueger
Regulatory Compliance Consultant
Licensed Customs Broker
NCBFAA Certified Customs Specialist