Customs May Change Rules on Pullovers From Singapore

For years now, women’s cotton pullovers cut and sewn in Singapore from knit fabric made of U.S. yarns have come into the United States duty free.

But that may change.

Now, U.S. Customs and Border Protection is proposing that those garments, which feature a patch pocket made of Chinese knit fabric, will not be eligible for preferential tariff treatment under the United States–Singapore Free Trade Agreement.

In the past, the free-tariff determination has been made because it was believed the fabric for the pullover’s main body determined the free-trade classification.

But the CBP is proposing that the pullovers not be granted duty-free status because no single component determines how the garment should be classified.

Customs said the patch pocket doesn’t meet the free-trade agreement’s rules of origins. Comments can be made to customs about the tariff change until Sept. 19. —Deborah Belgum