U.S. President Barack Obama Signs "Third Country Yarn" Clause

U.S. President Barack Obama signed H.R5986 document a few days ago, and the "Third Country Yarn" (TCF, also known as "Third Country Fabric") extension clause of the "African Growth and Opportunity Law" (AGOA) formally came into effect. The extension period will be 10 years from 2012. From January 1 to September 31, 2015 for a period of three years.

The AGOA was launched in October 2000 and will expire in September 2015. The Act provides preferential conditions for unilateral trade to 48 countries in sub-Saharan Africa. The above-mentioned countries that meet the conditions of AGOA can export goods to the US market with tax exemption of more than 6,000 kinds. Textile and apparel is an important part of AGOA, and its third country yarn clause is a preferential or indispensable condition for the actual enjoyment of textile and clothing. At present, about 24 sub-Saharan countries, including Mauritius, are beneficiaries of textile and clothing preferences. AGOA also offers choices for U.S. imports, retailers and consumers to enjoy relatively low-cost textile and apparel.