customs brokerage, freight forwarding and truck transportation

Issues on NAFTA Export TPL for Fabrics

: Textiles & Apparel

Actions by US CBP Leading to Confusion Among Exporters using NAFTA Tariff Preference Levels (TPL) 2017-12-05

As a result of data conversion issues faced by the U.S. Customs and Border Protection (CBP), U.S. data regarding the utilization of the Tariff Preference Level (TPL) for Fabric and Made-Up Goods under the North American Free Trade Agreement indicates that the quota has closed as of November 30, 2017.
 
Canadian utilization records (as of Dec.5) continue to show remaining quota availability, including remaining allocations provided to Canadian companies.
 
Because the U.S. considers the quota to be filled, as of December 1st, U.S. CBP began rejecting Certificates of Eligibility upon entry and regular MFN duty is payable.
 
IMPORTANT: This does not concern TPL for exports of apparel. It only affects TPL for certain Fabrics and Made-Up Goods exported to the US.  
 
If companies are able to delay shipments, they may wish to do so until Global Affairs Canada (“GAC”) are able to provide further information. We have been informed that GAC will not be issuing Certificates of Eligibility for the affected products at this time, but will do so as soon as the quota re-opens. GAC is working with the U.S. to have these issues addressed as quickly as possible so that the quota can be re-opened in a timely manner.
 
Milgram is monitoring this issue closely and will notify its clients as soon as the situation is resolved.
 
If you have any questions, please contact your Milgram representative.
 

Source: Global Affairs Canada, Canadian Apparel Federation

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