CBI Basics
Yarns must be wholly made in the U.S. to qualify for preferential treatment, except as noted below.
Supply Yarns from Nylstar in the U.S. qualify. Nylstar Europe does not.
(Yarns from Nilit in Israel, do qualify.)
Nafta yarns during the transition period are treated the same as CBI.
see http://www.customs.gov/news/fed-reg/notices/cbicbtpa.pdf
Supply Yarns from Dupont Mexico qualify.
Law 106-200. Special Rules-Special Origin Rule, which states that "An article otherwise eligible for preferential treatment under clause (i) or (ii) of the subparagraph shall not be ineligible for such treatment because the article contains nylon filament yarn ...that is classifiable under subheading ...5402.41.90... of the HTS duty-free from a country that is party to an agreement with the United States establishing a free trade area, which entered into force before Jan. 1, 1995. " (In plain English, this says that Mexican nylon qualifies for duty free treatment under CBTPA!)
(IV) Special Origin Rule
– Foreign nylon filament yarn (other than
elastomeric yarn) may be used if imported under
a free trade agreement with Canada, Mexico or
Israel.
(III) De Minimis Rule
– Foreign fibers and yarns* may be used so long
as the total weight of all such fibers and yarns is
not more than 7% of the total weight of the
good. (Note: No exclusion for fabrics).
*No exclusion for elastomeric yarns which must be wholly
formed in the United States.
U.S. Customs http://www.customs.ustreas.gov/
U.S. International Trade Administration http://www.ita.doc.gov/td/td_home/tdhome.html
Foreign Trade Information System
African Growth and Opportunity Act
http://www.usitc.gov/taffairs.htm
http://otexa.ita.doc.gov
http://www.cbp.gov/impoexpo/nafta_us.htm
http://www.cbp.gov/nafta/commspec.htm
http://otexa.ita.doc.gov/nafta/50-60_63.htm