1. Andrea M. Ewart, Esq. DevelopTradeLaw, LLC www.developtradelaw.com May, 2014

2. Overview What is CBI? What are the benefits of CBI? Are my products eligible for CBI? How do I get my products into the US under CBI? Challenges Q & A

3. What is CBI? Caribbean Basin Economic Recovery Act (CBERA) Caribbean Basin Trade Partnership Act (CBTPA) Dominican Republic-U.S.-Central American Free Trade Agreement (DR-CAFTA) Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Acts I &II Haiti Economic Lift Program (HELP) Act

4. Benefits of CBI to Barbados US unilateral trade preference program for the region 5700 tariff lines receive duty-free or reduced-duty entry into the US on non-reciprocal basis Excluded goods - textiles/apparel, leather, canned tuna, petroleum and derivatives, footwear, watches/parts; agricultural goods exceeding tariff-rate quota (TRQ) Permanent – no expiry date or graduation criteria (subject to WTO waiver)

5. Benefits of CBI to Barbados Barbados is also a beneficiary of CBPTA: duty-free entry of qualifying cotton, wool, and manmade-fiber apparel classified in HTS chapters 61 and 62 duty-free entry for textile luggage assembled from U.S. fabrics made of U.S. yarns. NAFTA treatment for other products excluded from CBERA, including petroleum and petroleum products, certain tuna, certain footwear, and certain watches and watch parts

6. Benefits of CBI to Barbados Exemption from Merchandise Processing Fee (MPF) Tax relief Attract FDI to take advantage of preferential treatment Regular consultations with US President

7. Is my product eligible? Any product that meets U.S. laws can enter the U.S. market It may also be eligible for duty-free entry: Generalized System of Preferences (GSP)* Most Favored Nation (MFN) CBI

8. Is my product eligible for CBI? 1.Country Eligibility US President designates according to criteria specified by US Congress 2.Product Eligibility Harmonized Tariff Schedule of the United States (HTSUS), General Notes 7 & 17

9. Is my product eligible for CBI? Product Eligibility Criteria CBI RULES OF ORIGIN Wholly grown, produced or manufactured in-country AND Imported directly into the U.S.

10. Is my product eligible for CBI? Product Eligibility Criteria CBI RULES OF ORIGIN Substantial Transformation AND Regional Value Content AND Imported directly into the U.S.

11. Is my product eligible for CBI? Substantial Transformation: Inputs NOT wholly grown, produced or manufactured in any CBERA country must be substantially transformed, creating a new or different product (new tariff sub-heading) That new product must then be incorporated into a finished good.

12. Is my product eligible for CBI? Regional Value Content: Value of materials produced in any CBERA (current or former) country/Puerto Rico, USVI + direct processing costs in any CBERA country (including up to 15% in US) – (combining/packing/dilution) =/> 35% of value of good at time of entry into the U.S.

13. Is my product eligible for CBI? To encourage production sharing between Puerto Rico and CBERA countries: allows duty-free entry for goods produced in Puerto Rico that are “by any means advanced in value or improved in condition” in a CBERA country; materials added to Puerto Rican articles must be of U.S. or CBERA-country origin; final product must be imported directly into the U.S.

14. Is my product eligible for CBI? Product Eligibility Criteria CBI RULES OF ORIGIN DISCUSSION

15. Getting my product in free Product Eligibility Criteria Harmonized Tariff Schedule of the United States (HTSUS) Online Reference Tool -- http://hts.usitc.gov/http://hts.usitc.gov/ General Rate = duty rate for MFN trade partners Special Rates = preferential rates for FTA or developing country trade partners E, E* = eligible for entry under CBERA R = eligible for entry under CBTPA A = GSP eligible

16. Getting my product in free: Rum

17. Getting my product in free: apparatus

18. Getting my product in free Claimed at time of entry Proof of Country of Origin Certificate of Origin

19. Doing It Right Importers are legally required to: Have complete invoice, including accurate description and value of product Correctly classify goods Correctly value the goods If eligible, claim CBI status at time of entry Pay the correct duties Correctly and clearly identify the country of origin Properly package and mark or label Comply with entry requirements for the relevant agencies Prepare and keep ALL supporting documentation

20. Stay in touch DevelopTradeLaw, LLC Andrea M. Ewart, Esq. Email: aewart@developtradelaw.comaewart@developtradelaw.com Website: www.developtradelaw.comwww.developtradelaw.com Facebook: Twitter: @developtradelaw

21. Doing It Right US Customs and Border Protection (CBP) also enforces the entry requirements of numerous other agencies: Food & Drug Administration (FDA) Food Safety Modernization Act http://www.fda.gov/Food/GuidanceRegulation/FSMA/ucm361902.htm US Department of Agriculture (USDA) US Patent & Trademark Office (USPTO) CBP Informed Compliance Requirements -- http://cbp.gov/linkhandler/cgov/trade/legal/informed_co mpliance_pubs/icp021.ctt/icp021.pdf http://cbp.gov/linkhandler/cgov/trade/legal/informed_co mpliance_pubs/icp021.ctt/icp021.pdf

22. CHALLENGES CBI is underutilized! Lack of awareness Rules of origin SPS requirements Service-focused economies Supply-side constraints Inadequate infrastructure High energy & production costs Inadequate access to financing Small vulnerable economies Changes in US policy

23. SOLUTIONS Activities to increase awareness of CBI benefits Barbados private sector Foreign investors Active engagement with United States USITC reports TIFA & TIC Address supply-side constraints