Hi. I produce clothing in Kenya. Most of the fabric I use is imported but we do all the design work and production in Kenya.
- Am I legible for AGOA?
- Does exporting with AGOA have to be bulk items?
- Does AGOA facilitate market for our products?
Yes. Your products qualify for duty free export considered under AGOA’s third-country fabric provision, which is a special rule that allows U.S. apparel imports from least-developed Sub-Saharan Africa countries to qualify for duty-free treatment even if the yarns and fabrics used in the production of the apparel are imported from non-AGOA countries.
The web link below will provide you with more information on textile provisions, qualifying textile and apparel, as well as other specific textile and apparel provisions providing rules of origin for all.
Secondly, please note the following points on how exported products qualify under AGOA duty free treatment, and this is to take care of your second question on whether the items must be in bulk; we are assuming that you are asking about quantity here, if not then please respond with clarification.
- The product must be included in the list of GSP-eligible articles, or included in the list of new AGOA products, or be a qualifying apparel or textile item;
- It must be imported into the United States directly from the AGOA beneficiary country or pass through another country in a sealed container and addressed to a location in the United States;
- The article must be the growth, product, or manufacture of the AGOA beneficiary country by fulfilling the relevant Rules of Origin requirements for general or apparel items respectively (see next points)
- If foreign materials are imported into the AGOA country first, to be used in the production of an AGOA-eligible product, the sum of the cost of the materials produced in the AGOA beneficiary country, plus the costs of processing, must equal at least 35 percent of the product’s value when the product is sold for export into the United States;
- In the case of clothing/apparel, the 35% rule does not apply directly, instead, the goods need to comply with the respective Rules of Origin requirements;
- The US importer must request duty-free treatment under AGOA on the relevant customs entry form (Form 7501) by placing a "D" in column 27 in front of the US tariff number that identifies the imported article. For more information please read https://agoa.info/about-agoa/product-eligibility.html .
Finally, yes, AGOA facilitate market for products by enhancing market access to the US for qualifying Sub-Saharan Africa countries. Please check out these links for more information on AGOA and what it does https://agoa.info/about-agoa.html and http://www.eatradehub.org/agoa.