Can “qualifying knit fabrics” and “qualifying woven fabrics” be dyed and finished outside the United States and/or designated beneficiary countries and still qualify under the Haiti EIAP?
Section 2 of OTEXA’s interim procedures, as contained in the Haiti EIAP legislation, defines “qualifying knit fabric” as “fabric or knit-to-shape components wholly formed or knit-to-shape (in designated beneficiary countries – See FAQs 26 and 27) from yarns wholly formed in the United States,” and defines “qualifying woven fabric” as “fabric wholly formed in the United States from yarns wholly formed in the United States.” The legislation establishing the Haiti EIAP does not define the term “wholly formed.” OTEXA recently addressed this issue in a similar earned import allowance program with the Dominican Republic, “the DR 2 for 1 program.” See 75 FR 45603, August 3, 2010. For that program, OTEXA interpreted “wholly formed” within the definition of “qualifying woven fabric” to require that all production processes and finishing operations, starting with weaving or knitting and ending with a fabric ready for cutting or assembly without further processing, take place in the United States
