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According to law firm Sandler Travis & Rosenberg (ST&R), under the rule, woven apparel goods of HTSUS Chapter 62 that are made of blue denim fabric of subheadings 5209.42, 5211.42, 5212.24 and/or 5514.30 and contain a pocket or pockets, must have the pocket bag fabric made from yarn that was wholly formed and finished in the territory of one or more USMCA countries.

The CBP notes 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.

The USMCA was implemented in July 2020 and was celebrated by the US apparel and Footwear Industry.

It made a number of updates and modifications to the 25-year-old North American Free Trade Agreement (NAFTA) and offered qualifying textiles and apparel, travel goods and footwear originating from the USMCA region duty-free access to the US and Canadian markets.

It also included provisions on textiles that incentivised greater North American production, strengthened customs enforcement, and facilitated broader consultation and cooperation among the three parties.

The summary of the US-Mexico-Canada Agreement can be found here.

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By GlobalData