Outward Processing Program
Effective January 1, 2000, CITA has established a new Outward Processing Program with Romania and Macedonia. This program differs from the Special Access Program in several key ways: 1) It only applies to wool apparel categories from Romania and Macedonia. 2) If desired, goods may be cut and sewn in beneficiary countries from U.S.-formed fabrics (instead of only assembled in a beneficiary country from U.S. formed and cut fabrics). Of course, the 9802 tariff reduction provisions do not apply to fabric that was not cut in the U.S. into components. Thus, full duty applicable to the apparel is likely to be required; no reduction is provided for the use of U.S. fabric if it was not cut in the U.S. Alternatively, goods may be assembled in the beneficiary country under the exact same duty and quota provisions applicable to the Special Access Program. In other respects, including documentation requirements and enforcement, the Outward Processing Program is similar to the Special Access Program. The specific requirements are outlined in two Federal Register Notices published in 64 FR 69746 (December 14, 1999).