2nd phase of USMCA Pocket Bag Fabric Rule to be implemented from Jan 1

02 Dec 22 1 min read

The second phase of the pocket bag fabric rule applicable to woven apparel goods made of blue denim fabric under the US-Mexico-Canada Agreement (USMCA) will be implemented from January 1 next year, the US Customs and Border Protection (CBP) recently announced. The first phase of this government regulation became effective on January 1 this year.

The first phase provides that for apparel goods of Harmonized Tariff Schedule of the United States Code (HTSUS) Chapters 61 and 62 that contain a pocket or pockets, the pocket bag fabric must be formed and finished in the territory of one or more USMCA countries from yarn wholly formed in one or more USMCA countries.

CBP noted that all apparel shipments claiming USMCA preference are subject to verification, that it may deny preferential treatment for claims that cannot be substantiated, and that false claims may result in the issuance of penalties, US trade media reported.

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