Use of non-originating cupro yarn under KORUS to begin in Aug: USTR

In June 2020, the US president proclaimed a modification to the rules of origin for certain Korean woven fabrics under the KORUS and specified that the modification would go into effect the first day of the month following the date on which the USTR published a notice that South Korea has completed its applicable procedures to give effect to a corresponding modification to its rules of origin to be applied to US goods.

South Korea notified the United States that it had completed its applicable procedures on April 19 this year. KORUS was signed on June 30, 2007.

Section 202 of the KORUS Implementation Act provides rules for determining whether goods imported into the United States originate in the territory of a KORUS party and thus are eligible for the tariff and other treatment contemplated under the KORUS.

The section also authorises the US president to proclaim the rules of origin set out in the KORUS, and to modify previously proclaimed rules of origin, subject to the consultation and layover requirements of section 104 of the Act.

In 2018, South Korea submitted requests to modify certain textile rules of origin based on commercial availability of specific inputs.

Following public comment on the proposed rules changes, both sides agreed to modify the rule of origin concerning certain woven fabrics of HTSUS heading 5408.

Pursuant to the KORUS Implementation Act, the US International Trade Commission (USITC) conducted an economic impact review and concluded that the impact on US imports, exports and production of the proposed modifications would be negligible.

The US industry trade advisory committee on textiles and clothing did not object to the proposed modifications. Congress also did not object during the consultation and layover process, an official release said.

Fibre2Fashion News Desk (DS)