Home / Knowledge / News / Textiles / SAVE for Philippine fails to deliver for textile industry, NTA
SAVE for Philippine fails to deliver for textile industry, NTA
03
Oct '09
NTA's David Trumbull attended a luncheon meeting on the "Save our Industry (SAVE) Act" (H.R.3039) in New York City at which he met with several representatives of the Philippine government and apparel industry as well as American proponents of the bill.

The bill provides for trade benefits under three scenarios

1. 809 Program
Apparel assembled in the Philippines of fabric wholly formed and finished in the United States, of yarn wholly formed in the U.S. Under this provision, sometimes called an "809 program" several types of garments would be eligible for duty-free treatment. Under this "809 program" the U.S. fabric and yarn requirement will apply to only the single fabric component in the garment that determines the tariff classification of the garment.

Due to this rule, sometimes known as "essential character" other textile components of the garments, such as linings, narrow elastic fabrics, sewing thread, and pocketing, could come from any source. The essential character rule renders the program of no benefit to significant sectors of the U.S. textile industry. There is also a de minimis provision for up to to ten percent of the fiber or yarn (except for elastomeric yarn) in the fabric to be foreign.

2. Local Philippine Fabric Program
The second major provision grants a reduced rate of duty for apparel assembled in the Philippines from fabric wholly formed in the United States or the Philippines, or both, from yarns wholly formed in the United States. The reduced rate of duty would be either 50 percent of the column 1 rate of duty (the normal rate) that applies to the apparel article or the column 1 rate of duty that applies to the article, assessed upon the value of the article, less the cost or value of yarns in the article that are wholly formed in the United States. This provision applies to the same types of garments as the 809 provision and with the same essential character and de minimis provisions.

3. Single Transformation
The final provision, and by far the most controversial allows for duty-free treatment of certain apparel assembled in the Philippines without regard to the origin of the fabric or yarn. The list of eligible garments is lengthy and in many cases fails to include the tariff classification or import category number, making it impossible to know precisely what are the covered products. However, it is clear that some of the products eligible under this provision, such as brassieres, women's wool apparel, men's wool coats, and several types of cotton and man-made fiber apparel, will attract opposition from domestic U.S. manufacturers of the fabrics used in such apparel.

Supporters of the bill indicated that it may be possible to remove brassieres from the single transformation list. However, the remaining list would pose huge problems for U.S. manufacturers of wool fabrics, knit fleece, and a wide range of cotton and man-made fiber fabrics. Supporters also indicated an openness to negotions over the treatment of various products and NTA will continue to be engaged in this dialogue.

National Textile Association

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search