The phrase "cut in one or more beneficiary countries" refers specifically to apparel articles, indicating that all fabric components used in the creation of the article were cut from fabric located in designated beneficiary countries. These countries are typically those that receive special trade benefits under U.S. law, allowing for reduced tariffs or duty-free treatment for certain goods.
This term is primarily used in the context of international trade law, particularly concerning the importation of textiles and apparel into the United States. It is relevant for businesses involved in the manufacturing, importing, and exporting of clothing. Understanding this term is essential for compliance with customs regulations and for taking advantage of trade agreements that benefit certain countries.
Here are a couple of examples of abatement:
For instance, a clothing manufacturer sources fabric from a beneficiary country, such as Honduras, and has the fabric cut there before assembling the final product in the United States. This process allows them to qualify for reduced tariffs when importing the finished apparel.
(Hypothetical example) A company imports shirts made from fabric cut in Guatemala. Since Guatemala is a beneficiary country, the company benefits from lower import duties.
19 CFR 10.212 outlines the conditions under which apparel articles can be considered to have been "cut in one or more beneficiary countries." This regulation is part of the broader framework governing customs duties and international trade.
| Term | Definition | Difference |
|---|---|---|
| Cut and Sew | Refers to the process of cutting fabric and sewing it into finished garments. | "Cut in one or more beneficiary countries" specifies the location of fabric cutting, while "cut and sew" focuses on the overall manufacturing process. |
| Beneficiary Country | A country that receives special trade benefits under U.S. law. | This term refers to the country status, while "cut in one or more beneficiary countries" describes the specific action taken with the fabric. |
If you are involved in importing apparel, ensure that you understand the requirements for qualifying for reduced tariffs under this definition. You may want to consult with a customs broker or legal professional to navigate the complexities of trade regulations. Additionally, consider exploring US Legal Forms' templates for trade compliance documents to facilitate your processes.
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A beneficiary country is one that receives special trade benefits under U.S. trade laws, which may include reduced tariffs on certain goods.