AGOA and Haiti apparel duty-free programs are extended to Dec. 31, 2026, Gabon regains AGOA status, and related HTSUS notes are updated.
The proclamation implements 2026 appropriations provisions by extending AGOA duty-free treatment, including regional and third-country fabric apparel programs, through December 31, 2026, and restoring Gabon as an AGOA beneficiary in the HTSUS effective January 1, 2026. It also extends and adjusts Haiti apparel preference limits and duty-free treatment under CBERA, and makes technical HTSUS corrections. Importers of qualifying apparel and other AGOA/CBERA-eligible goods must ensure correct use of updated HTS notes, dates, and program limits on entries from late 2025 onward.
REGULATORY BRIEFING – AGOA AND HAITI PREFERENTIAL PROGRAM EXTENSIONS AND HTSUS CHANGES
1. WHAT CHANGED
1.1 African Growth and Opportunity Act (AGOA) – Program Extension
- Duty-free treatment for eligible products from beneficiary sub-Saharan African countries under AGOA is extended through December 31, 2026.
- The AGOA regional apparel article program and the third-country fabric program are also extended through December 31, 2026.
- These extensions are implemented via modifications to the Harmonized Tariff Schedule of the United States (HTSUS) in Annex I.
1.2 Re-designation of Gabon as AGOA Beneficiary
- Gabon (Gabonese Republic) is re-designated as a “beneficiary sub-Saharan African country” under AGOA and section 506A of the Trade Act.
- This is reflected in HTSUS General Note 16(a), effective January 1, 2026.
1.3 Haiti Apparel Preferences under CBERA – Extension and Limits
- The Haiti Economic Lift Program and related apparel preferences under the Caribbean Basin Economic Recovery Act (CBERA) are extended through December 31, 2026.
- The “applicable percentage” for certain Haiti apparel provisions is confirmed at 60 percent or more on and after December 20, 2017.
- The quantitative limit for certain Haiti apparel preferences is set at not more than 1.25 percent of the aggregate square meter equivalents (SME) of all apparel imported into the United States in the most recent 12-month period for which data are available.
- These changes are implemented via modifications to U.S. Note 6 to subchapter XX of chapter 98, HTSUS, in Annex III.
1.4 Technical HTSUS Corrections for AGOA Apparel Provisions
- HTSUS General Note 16(c), U.S. Note 2(b) to subchapter XIX of chapter 98, and heading 9819.11.12 are updated to replace the prior AGOA expiration date of “September 30, 2025” with “December 31, 2026.”
- A legacy reference “through October 1, 2011,” in U.S. Note 2(b) to subchapter XIX of chapter 98 is deleted to align with subsequent statutory extensions.
- These corrections ensure the HTSUS text conforms to the extended AGOA apparel program dates and limits.
2. AFFECTED PRODUCTS AND HTS CODES
2.1 AGOA – General Duty-Free Treatment
- Products: A wide range of goods designated as eligible under AGOA from beneficiary sub-Saharan African countries.
- HTSUS references:
- General Note 16(a): List of beneficiary sub-Saharan African countries (now including Gabon effective January 1, 2026).
- General Note 16(c): Duration of AGOA preferences (now through December 31, 2026).
2.2 AGOA Apparel – Regional and Third-Country Fabric Programs
- Products: Apparel articles qualifying under AGOA regional and third-country fabric rules, including from lesser developed beneficiary sub-Saharan African countries.
- Key HTSUS provisions:
- Subchapter XIX, chapter 98:
- U.S. Note 2(b): Defines limits and conditions for apparel from lesser developed beneficiary sub-Saharan African countries.
- Subheading 9819.11.09: Apparel articles from lesser developed beneficiary sub-Saharan African countries (subject to program limits and rules of origin).
- Subheading 9819.11.12: Apparel articles under the third-country fabric program (article description date updated to December 31, 2026).
2.3 Haiti Apparel Preferences under CBERA
- Products: Apparel articles from Haiti eligible under the Haiti Economic Lift Program and related CBERA provisions.
- Key HTSUS provisions:
- Subchapter XX, chapter 98:
- U.S. Note 6(f)(i): Defines “applicable percentage” as 60 percent or more on and after December 20, 2017.
- U.S. Note 6(g)(i): Sets the quantitative limit and duration for preferential treatment under headings 9820.61.25 and 9820.61.30.
- Headings:
- 9820.61.25 and 9820.61.30: Haiti apparel preference provisions subject to the 1.25 percent SME cap and duty-free treatment through December 31, 2026.
3. RATE CHANGES AND QUANTITATIVE LIMITS
3.1 Duty Rates
- The proclamation and annexes do not change the nominal duty rates for the covered HTS headings; they extend existing duty-free treatment periods.
- For qualifying goods:
- AGOA-eligible products (including qualifying apparel under 9819.11.09 and 9819.11.12) continue to receive a 0% duty rate (duty-free) through December 31, 2026, provided all program conditions are met.
- Haiti apparel under headings 9820.61.25 and 9820.61.30 continues to receive duty-free treatment through December 31, 2026, within the specified quantitative limits.
3.2 Quantitative Limits – Haiti Apparel
- Applicable percentage (Haiti Economic Lift Program):
- U.S. Note 6(f)(i) now states: “The term ‘applicable percentage’ means 60 percent or more on and after December 20, 2017.”
- This confirms that, for the relevant Haiti apparel provisions, at least 60% of the value (as defined in the statute) must meet the specified criteria from that date forward.
- SME cap for Haiti apparel preferences:
- U.S. Note 6(g)(i) now states that preferential treatment under headings 9820.61.25 and 9820.61.30 is limited, during each period after the initial applicable 1-year period, to not more than 1.25% of the aggregate square meter equivalents of all apparel articles imported into the United States in the most recent 12-month period for which data are available.
- This 1.25% cap is a binding quantitative limit on the volume of apparel that can enter duty-free under these headings in each relevant period.
3.3 AGOA Apparel Limits
- The annexes confirm and extend existing AGOA apparel program dates and limits but do not introduce new numerical quota percentages beyond what is already in statute and existing notes.
- The key change is the extension of the program end date from September 30, 2025, to December 31, 2026, in:
- General Note 16(c)
- U.S. Note 2(b) to subchapter XIX, chapter 98
- Heading 9819.11.12 article description
4. EFFECTIVE DATES
4.1 AGOA Program and Apparel Extensions (Annex I)
- Effective date for HTSUS modifications in Annex I (unless otherwise specified):
- For date changes:
- Effective with respect to articles entered or withdrawn from warehouse for consumption on or after October 1, 2025:
- General Note 16(c): “September 30, 2025” → “December 31, 2026”.
- U.S. Note 2(b) to subchapter XIX, chapter 98: “September 30, 2025” → “December 31, 2026” (each occurrence).
- Heading 9819.11.12 article description: “September 30, 2025” → “December 31, 2026”.
- For Gabon’s re-designation:
- Effective with respect to articles entered or withdrawn from warehouse for consumption on or after January 1, 2026:
- General Note 16(a): “Gabonese Republic” is inserted in the alphabetical list of beneficiary sub-Saharan African countries.
4.2 Haiti Apparel Preferences (Annex III)
- Effective with respect to articles entered or withdrawn from warehouse for consumption on or after December 20, 2025:
- U.S. Note 6(f)(i) to subchapter XX, chapter 98 is replaced to define “applicable percentage” as 60% or more on and after December 20, 2017.
- U.S. Note 6(g)(i) to subchapter XX, chapter 98 is replaced to:
- Set the 1.25% SME cap for headings 9820.61.25 and 9820.61.30.
- Confirm that duty-free treatment under this section remains in effect until December 31, 2026.
4.3 Technical Correction for AGOA Apparel Limits (Annex II)
- Effective with respect to limits for apparel articles from a lesser developed beneficiary sub-Saharan African country on or after October 1, 2025:
- U.S. Note 2(b) to subchapter XIX, chapter 98 is modified by deleting the phrase “through October 1, 2011,”.
5. REQUIRED ACTIONS FOR IMPORTERS, BROKERS, AND COMPLIANCE TEAMS
5.1 Update HTS Classification and FTA/Preference Setups
- Ensure internal classification databases and broker instructions reflect the updated AGOA and Haiti program end dates:
- Replace any internal references to AGOA expiration on September 30, 2025, with December 31, 2026, for:
- General Note 16(c)
- U.S. Note 2(b) to subchapter XIX, chapter 98
- Subheadings 9819.11.09 and 9819.11.12 (and any related AGOA apparel provisions used by your company).
- For Haiti apparel:
- Confirm that systems recognize duty-free eligibility under headings 9820.61.25 and 9820.61.30 through December 31, 2026, subject to the 1.25% SME cap.
5.2 Gabon – Reinstatement as AGOA Beneficiary
- For imports from Gabon:
- Effective for entries on or after January 1, 2026, evaluate whether products qualify for AGOA duty-free treatment.
- Update vendor onboarding and origin documentation requirements for Gabonese suppliers to support AGOA claims (e.g., certificates of origin, production records, yarn/fabric origin for apparel).
- Instruct brokers to begin applying AGOA preference indicators and relevant HTSUS provisions for qualifying Gabon-origin goods from January 1, 2026, onward.
5.3 AGOA Apparel – Rules of Origin and Limits
- For apparel imported under AGOA from lesser developed beneficiary sub-Saharan African countries:
- Confirm continued eligibility under subheading 9819.11.09 and 9819.11.12 through December 31, 2026.
- Review and maintain documentation demonstrating compliance with:
- Regional or third-country fabric rules.
- Any applicable quantitative limits or value-content requirements referenced in U.S. Note 2(b) to subchapter XIX.
- Coordinate with brokers to ensure correct use of chapter 98 AGOA apparel provisions and proper declaration of preference claims.
5.4 Haiti Apparel – Compliance with 60% Applicable Percentage and 1.25% SME Cap
- For apparel imported from Haiti under headings 9820.61.25 and 9820.61.30:
- Confirm that sourcing and cost structures meet the “applicable percentage” requirement of 60% or more (as defined in U.S. Note 6(f)(i)) for the relevant period.
- Monitor the 1.25% SME cap:
- Work with brokers and, where applicable, quota management teams to track utilization of the 1.25% cap for each period.
- Be prepared for potential denial of preference once the cap is reached; entries beyond the cap may be dutiable at MFN rates.
- Ensure documentation (bills of materials, cost breakdowns, production records) is retained to substantiate compliance with the Haiti program requirements.
5.5 System and Procedure Updates
- ERP/Trade Compliance Systems:
- Update FTA/preference program tables to reflect:
- AGOA validity through December 31, 2026.
- Haiti CBERA apparel preferences through December 31, 2026.
- Gabon’s AGOA beneficiary status effective January 1, 2026.
- Remove any internal reliance on the obsolete phrase “through October 1, 2011,” in relation to AGOA apparel limits.
- Broker Instructions and SOPs:
- Issue updated written instructions to customs brokers specifying:
- Correct HTSUS notes and dates for AGOA and Haiti programs.
- Effective dates for Gabon AGOA eligibility.
- Train internal staff on the extended timelines and any operational impacts (e.g., sourcing decisions, landed cost calculations).
5.6 Audit and Risk Management
- Conduct a targeted review of:
- AGOA claims on entries around the transition dates (October 1, 2025; January 1, 2026) to ensure correct application of preferences.
- Haiti apparel entries to confirm adherence to the 60% applicable percentage and awareness of the 1.25% SME cap.
- Prepare for potential CBP inquiries by organizing supporting documentation for AGOA and Haiti preference claims, including origin, production, and value-content evidence.
6. REFERENCES AND SOURCE DOCUMENTS
- Presidential Proclamation: “To Implement Certain Provisions in the Consolidated Appropriations Act, 2026, and for Other Purposes” (May 19, 2026) – White House.
- Annex I – AGOA Extensions and Gabon Re-designation:
- PDF: https://www.whitehouse.gov/wp-content/uploads/2026/05/ANNEX-I.pdf
- Key content:
- General Note 16(c): “September 30, 2025” → “December 31, 2026”.
- U.S. Note 2(b) to subchapter XIX, chapter 98: “September 30, 2025” → “December 31, 2026”.
- Heading 9819.11.12 article description: “September 30, 2025” → “December 31, 2026”.
- General Note 16(a): Addition of “Gabonese Republic” as a beneficiary sub-Saharan African country effective January 1, 2026.
- Annex II – Technical Correction for AGOA Apparel Limits:
- PDF: https://www.whitehouse.gov/wp-content/uploads/2026/05/ANNEX-II.pdf
- Key content:
- U.S. Note 2(b) to subchapter XIX, chapter 98: deletion of the phrase “through October 1, 2011,” for apparel articles from lesser developed beneficiary sub-Saharan African countries under subheading 9819.11.09.
- Annex III – Haiti Apparel Preferences under CBERA:
- PDF: https://www.whitehouse.gov/wp-content/uploads/2026/05/ANNEX-III.pdf
- Key content (effective for entries on or after December 20, 2025):
- U.S. Note 6(f)(i) to subchapter XX, chapter 98: “The term ‘applicable percentage’ means 60 percent or more on and after December 20, 2017.”
- U.S. Note 6(g)(i) to subchapter XX, chapter 98: 1.25% SME cap for headings 9820.61.25 and 9820.61.30 and duty-free treatment through December 31, 2026.
Importers and brokers should rely on the exact HTSUS text as amended by these annexes and monitor any subsequent Federal Register notices from the U.S. Trade Representative or CBP for additional technical modifications or clarifications.