The US Tariff Code may set up upper limit on CNMI's garment sales at $350 million a year, informed Saipan Chamber of Commerce.
A $350 million cap has been set on apparel and no cap for shoes have decided, Saipan Chamber of Commerce stated.
Under Modification of Headnote 3[a], that would allow 70-30. Benefits of 70-30 allow manufacturers to export duty free Saipan made garment to the US that have 70 percent of foreign content.
As per the law today, only 50 percent foreign contents are allowed.
CNMI Government and business leaders are persuading to sanction Headnote 3[a].
If this amendment gets approval of the US Government then it will allow country's manufactures to cut pieces overseas at lower cost and assemble them in country to export to the US.
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