July 22, 2011
News Release 11-092
Inv. No. 332-503
Contact: Peg O'Laughlin, 202-205-1819

PROGRAM APPEARS TO PROVIDE TOO FEW INCENTIVES TO ENCOURAGE MORE APPAREL PRODUCTION IN THE DOMINICAN REPUBLIC, SAYS USITC

The Earned Import Allowance Program (EIAP) appears to provide insufficient incentive to increase production of woven cotton bottoms in the Dominican Republic, according to the U.S. International Trade Commission (USITC) in its report Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Second Annual Report.

The EIAP allows apparel manufacturers in the Dominican Republic who use U.S. fabric to produce certain apparel to earn a credit that can be used to ship eligible apparel made with non-U.S.-produced fabric into the United States duty free. The USITC, an independent, nonpartisan, factfinding federal agency, is required to evaluate the effectiveness of the EIAP program and make recommendations for improvements annually under the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, as amended.

The USITC's second annual report was submitted to the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Committee on Finance in July 2011. Highlights of the report follow.

Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Second Annual Report (Investigation No. 332-503, USITC Publication 4246, July 2011) will be available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4246.pdf. A CD-ROM of the report may be requested by e-mailing pubrequest@usitc.gov, calling 202-205-2000, or contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance, or the House Committee on Ways and Means. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

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