Summary of the Africa Investment Incentive Act of 2006
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SUMMARY OF AFRICA INVESTMENT INCENTIVE ACT OF 2006-- AGOA IV
The Africa Investment Incentive Act of 2006 (signed by President Bush on December 20, 2006) amends portions of the African Growth and Opportunity Act (AGOA) and is referred to as "AGOA IV". The legislation extends the third country fabric provision for five years, from September 2007 until September 2012; adds an abundant supply provision; designates certain denim articles as being in abundant supply; and allows lesser developed beneficiary sub-Saharan African countries export certain textile articles under AGOA.
Africa Investment Incentive Act of 2006 (AGOA IV) Summary:
- Extends textile and apparel provisions of the AGOA program until 2015.
- Extends the third country fabric provision until 2012 and increases the cap to 3.5 percent beginning October 1, 2006.
- Provides for special rules for fabrics or yarns produced in commercial quantities (or, "abundant supply") in any designated sub-Saharan African country for use in qualifying apparel articles. Upon receiving a petition, the International Trade Commission will determine the quantity of such fabrics or yarns that must be sourced from the region before applying the third country fabric provision.
- Provides for 30 million square meter equivalents (SMEs) of denim to be determined to be in abundant supply beginning October 1, 2006.
- Expands duty-free treatment for textiles or textile articles originating entirely in one or more lesser-developed beneficiary country.
- Provides for a process to remove designated fabrics or yarns that were determined to be not available in commercial quantities for use by lesser developed beneficiary sub-Saharan African countries on the basis of fraud.