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

US announces final CVD on fine denier PSF from China, India

Textiles | On 19th Jan 2018

US announces final CVD on fine denier PSF from China, India

The US secretary of commerce Wilbur Ross recently announced the...

EU consumers to gain from cheaper, safer, better e-payments

Apparel/Garments | On 19th Jan 2018

EU consumers to gain from cheaper, safer, better e-payments

European consumers can now reap the full benefits of paying online...

Courtesy: Epson

Textiles | On 19th Jan 2018

Epson's new SC F2100 enhances DTG printing

Epson, a leader in inkjet printers and digital textile printing...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search