H.R. 6500: AGOA Extension Act

This bill, known as the AGOA Extension Act, focuses on the extension of certain trade benefits and customs user fees related to imports from specific African countries. Here are the key points of what the bill aims to accomplish:

Extension of Duty-Free Treatment

The bill will extend the existing duty-free treatment for imports from specified countries in Africa under the African Growth and Opportunity Act (AGOA). It proposes to change the expiration date for these benefits from September 30, 2025 to December 31, 2028. This means that countries eligible under AGOA will continue to receive preferential treatment when exporting to the United States for an additional three years.

Changes to Apparel Article Programs

The legislation also amends provisions concerning regional apparel article programs, increasing certain limits:

• It extends the limit on succeeding apparel articles from 21 to 24.
• Similar adjustments are made to other sections related to third-country fabric programs, ensuring that more types of fabrics may be used in producing apparel that can be exported duty-free.

Retroactive Application

The bill includes a provision for retroactive application of the duty-free treatment. Any covered articles that entered the U.S. after September 30, 2025, and before the enactment of this Act can be treated as if they entered on the date of enactment. This means that importers may request to have their duties recalculated based on the new law.

• Importers must submit their requests within 180 days after the enactment of the Act.
• Amounts owed by the U.S. for these re-duties will be paid without interest within 90 days of the liquidation or reliquidation process.

Extension of Customs User Fees

The bill extends customs user fees set within the Consolidated Omnibus Budget Reconciliation Act of 1985 and the United States-Korea Free Trade Agreement Implementation Act. The expiration date for these fees is also moved from September 30, 2031 to December 31, 2031.

Definitions of Key Terms

The bill provides definitions for certain key terms used within the text:

• Covered article: Refers to products imported from countries specified as beneficiaries under AGOA.
• Entry: Includes any withdrawal from warehouse for consumption.

Relevant Companies

• NKE (Nike, Inc.): As a company that sources apparel and manufacturing in various parts of Africa, Nike may benefit from extended duty-free treatment, potentially reducing their costs for importing products.
• KMB (Kimberly-Clark Corporation): This company may see impacts in terms of the raw materials sourced from African countries, especially if they are categorized as covered articles under this legislation.