Caribbean Trade Reference Centre

Caribbean Trade Reference Centre

 
Hemispheric Opportunity through Partnership Encouragement (HOPE) Act
 
English | Français
The 2006 Haitian Hemispheric Opportunity through Partnership Encouragement (HHOPE) Act, which was signed into law on December 20, 2006 and became effective March 20, 2007, was designed to support development and employment growth in Haiti, the poorest country in the Western Hemisphere. The HHOPE Act provides expanded trade benefits beyond what the country receives under the Caribbean Basin Trade Partnership Act (CBTPA), extending duty-free treatment to U.S. imports of knit and woven apparel assembled in Haiti from U.S., Haitian, or global inputs, subject to eligibility requirements, and in most cases, value-added content requirements. The Act provides for more flexible sourcing alternatives than the CBTPA and has the potential to improve the competitiveness of Haitian manufacturers by allowing the use of lower cost raw materials, a primary cost component in the production of apparel. On September 30, 2008, HOPE II entered into force for a period of 10 years. The HOPE Act as amended (Section 213a of the CBERA) provides for apparel imports from Haiti to enter the United States duty-free if the “applicable percentage” of the value of inputs and/or costs of processing is met from any combination of Haiti, United States, U.S. FTA or regional preference program partner countries. The HOPE Act as amended also provides duty-free treatment for certain apparel articles if imported directly from Haiti or the Dominican Republic, provided that Haiti and the Dominican Republic develop procedures to prevent transhipment. The HOPE Act as amended also removes duties for three years on a specified quantity of woven apparel imports from Haiti made from fabric produced anywhere in the world. Additionally, the Act allows duty-free treatment for any apparel article classifiable under heading 6212.10 of the HTS (certain brassieres), if the article is both cut and sewn or otherwise assembled in Haiti or the U.S., or both without regard to the source of the fabric or components from which the article is made. Finally, the HOPE Act as amended allows automotive wire harnesses imported from Haiti that contain at least 50 percent by value of materials produced in Haiti, the United States, or U.S.-FTA partner or regional preference program beneficiary countries to qualify for duty-free treatment. The HOPE Act as amended also establishes an International Labor Organization monitoring program, and requires the President to establish certain procedures to monitor Haiti’s and individual producers’ compliance with the eligibility criteria.