Sponsors (7)
The bill extends and restores tariff preferences that lower costs for U.S. importers and support Caribbean suppliers, while imposing a tight cap on Haitian benefits and generating lost tariff revenue, increased competition for some domestic producers, and added compliance burdens.
U.S. apparel importers and businesses that source from Haiti keep duty‑free access through September 30, 2035, lowering import costs for those firms and likely reducing prices for some consumers.
Importers and businesses that relied on 2006 HTSUS classifications for certain Caribbean Basin products regain preferential tariff treatment, reducing their costs and supporting trade with regional suppliers.
The bill clarifies eligibility rules (e.g., the 60% applicable percentage) for firms using Haitian inputs, improving predictability for sourcing decisions and compliance planning.
The bill caps preferential Haitian apparel volumes at 1.25% of total U.S. apparel imports per period, which limits market access for Haitian exporters and could reduce the intended economic benefits for Haiti; if demand exceeds the cap, U.S. buyers may face higher prices.
Restoring tariff preferences reduces federal tariff revenue, which could increase deficits or require offsets, imposing a cost on taxpayers.
Domestic producers of competing goods may face stronger competition from imports receiving renewed preferential treatment, potentially harming U.S. manufacturers and workers.
Based on analysis of 3 sections of legislative text.
Revises and extends Haiti's preferential apparel duty rules: sets a 60% content threshold, adds a 1.25% quantitative cap, and extends duty‑free treatment through Sept 30, 2035; directs HTSUS fixes.
Official title: Extend duty-free treatment provided with respect to imports from Haiti under the Caribbean Basin Economic Recovery Act, and for other purposes.
Introduced February 26, 2025 by Bill Cassidy · Last progress February 26, 2025
Extends and revises U.S. preferential tariff rules for apparel from Haiti under the Caribbean Basin Economic Recovery Act through September 30, 2035. The bill sets the required "applicable percentage" for eligible Haiti-made apparel at 60% (effective on or after December 20, 2017), imposes a quantitative cap on preferential-duty-eligible apparel equal to 1.25% of recent U.S. apparel imports (by square meter equivalents), clarifies timing language for successive one‑year periods, and directs the President to adjust the Harmonized Tariff Schedule to restore eligibility for articles that were made ineligible only because of HTS revisions.