basic-guide-to-exporting_Latest_eg_main_086196

Textile ProductsThe textile and apparel ROOs are the “yarn-forward” standard, which requires thatthe yarn production and all operations “forward” (fabric production through apparelassembly) occur in the United States and/or the partner country. However, fibers,yarns, and fabrics determined not to be available in commercial quantities in a timelymanner may be sourced from outside the countries for use in qualifying textile andapparel products. For example, a fabric that is determined not to be commerciallyavailable may come from a third party, be cut and assembled into a garment in thepartner country, and imported to the United States duty-free. Other factors may needto be considered, such as tariff preference levels and safeguards. To look up ROOsfor textile products, visit otexa.ita.doc.gov and click on the specific FTA countryor region.Fungible Goods and MaterialsFTAs allow treating “fungible goods or materials” as originating where some goodsare FTA eligible but others are not. A fungible good may be considered originatingif the importer, exporter, or producer has either physically segregated (originatingfrom the nonoriginating) the fungible good or material or used any inventorymanagement system to segregate what is recognized in the Generally AcceptedAccounting Principles.Indirect MaterialsIndirect materials are considered to be originating materials regardless of wherethey are produced. An indirect material is defined as a good used in the production,testing, or inspection of a good, but not physically incorporated into the good, or agood used in the maintenance of buildings or the operation of equipment associatedwith the production of a good.Accessories, Spare Parts, and ToolsAccessories, spare parts, and tools that are delivered with the goods and thatform part of the goods’ standard accessories, spare parts, or tools, are consideredoriginating if the goods originate and are disregarded in determining whether all thenon-originating materials undergo tariff change.Certifying Origin of a Product for FTADepending on a particular FTA, the exporter or importer may need to document theorigin of the good. Documenting the origin varies, depending on the FTA. In general,the manufacturer, importer, or exporter will certify that a particular good is FTAeligibleeven though it may contain nonoriginating material. The actual certificatesmay be required forms such as U.S.–Israel FTA or NAFTA. (Note: Customs authoritiesnow allow the use of an alternative NAFTA form, with prior customs approval.)Other FTAs may not require specific certificates. Claiming preference is done bythe importer.210U.S. Commercial Service • A Basic Guide to Exporting