A new bilateral trade agreement between the U.S. and Egypt, focusing on products under specific HS codes including those in U.S. note 21(h), has reduced tariffs on Egyptian textile exports to the U.S., boosting trade volume.
October 15, 2023
Impact: This agreement is expected to increase Egyptian textile exports to the U.S. by 15% annually, strengthening economic ties and benefiting U.S. consumers with lower-cost goods.
Egyptian Cotton Gains Market Share in U.S. Under Qualifying Rules
Egyptian cotton products classified under subheadings in U.S. note 21(h) have seen a surge in demand in the U.S. market due to their qualification for preferential treatment under the Qualifying Industrial Zone (QIZ) protocol.
September 20, 2023
Impact: The preferential access is likely to enhance Egypt’s position as a key supplier of high-quality cotton, potentially increasing U.S. imports by 10% in this category over the next year.
U.S. Importers Face Delays in Egyptian Shipments Under HS Subheadings
Logistical challenges at Egyptian ports have delayed shipments of goods under HS subheadings enumerated in U.S. note 21(h), affecting U.S. importers of apparel and textiles.
August 5, 2023
Impact: Delays may lead to temporary shortages and higher costs for U.S. retailers, potentially disrupting supply chains for products covered under these subheadings.
Policy Updates
Extension of U.S.-Egypt QIZ Protocol
The U.S. has extended the Qualifying Industrial Zone (QIZ) protocol with Egypt, allowing duty-free access for products under subheadings in U.S. note 21(h) provided they meet specific rules of origin criteria.
Date: November 1, 2023
Updated U.S. Tariff Schedule for Egyptian Imports
The U.S. International Trade Commission released an updated tariff schedule clarifying classifications under U.S. note 21(h), ensuring smoother customs processing for Egyptian goods entering under preferential agreements.
