Proposed Modification To The U.S.-Korea Fta Rules Of Origin For Certain Fabrics Would Likely Have A Negligible Effect On U.S. Imports And Exports, Says Usitc

A proposed modification to the United States-Korea Free Trade Agreement (KORUS) rules of origin for certain fabrics of triacetate filament yarns is likely to have a negligible effect on U.S. imports and U.S. exports, reports the United States International Trade Commission (USITC) in its publication Certain Fabrics of Triacetate Filament Yarns: Effect of Modification to U.S.-Korea Free Trade Agreement Rules of Origin (Inv. no. FTA-103-033).

The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR).

As requested, the report provides advice on the probable economic effect of the proposed modification to the KORUS rules of origin on U.S. trade under the agreement, on total U.S. trade, and on domestic production of the affected articles. The proposed modification, detailed in the USTR's request letter, covers the following heading of the Harmonized Tariff Schedule of the United States (HTS):

• Certain fabrics (under HTS heading 5408) of textured and non-textured triacetate filament yarns (under HTS subheading 5403.33)

The proposed modification to the rules of origin would liberalize the current rules of origin by allowing woven fabrics of artificial filament yarn made in Korea or the United States to be eligible for preferential treatment under KORUS when made with non-originating triacetate yarn. However, U.S. imports of and demand for the affected articles is small. Thus, the likely effect of the proposed modification on imports under KORUS and on total U.S. imports of these products is negligible.

There would be little to no effect on U.S. production or exports of the affected articles because there are no known domestic producers of the articles directly affected by the proposed modification.

Certain Fabrics of Triacetate Filament Yarns: Effect of Modification to U.S.-Korea Free Trade Agreement Rules of Origin (Inv. FTA-103-033, USITC publication 5383, November 2022) is available at https://www.usitc.gov/publications/332/pub5383.pdf.

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