African Growth and Opportunity Act (AGOA)

Background

The African Growth and Opportunity Act (AGOA) builds on the existing Generalised System of Preferences (GSP) scheme and offers duty-free and quota-free market access to the United States for approximately 7000 products including the roughly 1,800 product tariff lines that were added to the GSP by the AGOA legislation.

AGOA Legislation
H. R. 7222 - AGOA Amendments: Eligibility of Mauritius to the third country fabric provision

Mauritius became eligible to the third country fabric provision in 2008. Since then, Mauritius has taken advantage of the third country fabric provision, which allowed us to consolidate our exports on the US market.

The start of the implementation of the AGOA benefits coincided with the last stages of the termination of the WTO Multi Fibre Agreement quotas. Mauritius suffered from the combined effects of the phasing out of the MFA quotas and non-eligibility to the third country fabric provision

Since its enactment, AGOA has had a very positive impact on US Africa trade flows and has contributed to the economic development in Africa. AGOA has also created thousands of direct and indirect jobs on the African continent especially, including for SMEs and women. Overall AGOA has increased two-way trade and has benefitted both the US and SSA countries.

The AGOA has a very positive impact on the industrial development of Mauritius. It has particularly helped the apparel sector to flourish and become vertically integrated.

Rules of origin

General Rules of Origin (Non-textile and apparel)

In order to qualify for duty-free access to the US under GSP, the Rules of Origin require that the following rules be met:

• Products must be imported directly from the beneficiary country into the United States;
• Products must be "grown, produced or manufactured" of one or more of the beneficiary countries;
• Products may incorporate materials sourced from non-beneficiary countries provided that the sum of the direct cost or value (i.e. the transaction value) of the materials produced in the beneficiary countries, plus the "direct costs of processing" undertaken in the beneficiary countries, equal at least 35% of the product's appraised value at the U.S. port of entry.

Rules of origin under GSP

Rules of Origin for textile and apparel

Apparel and textiles are not included under the General System of Preferences (GSP) program, on which AGOA is based. However, AGOA provides beneficiary Sub-Saharan African countries with duty-free access to the U.S. market for apparel, subject to specific rules of origin and other administrative requirements. Mauritius is eligible for the third country fabric provision.

Products from AGOA countries must choose from a specific criteria in order to meet to the Rules of Origin requirements and qualify for duty-free treatment (either yarn from US or yarn from SSA countries or third country fabric)

AGOA Rules of origin for Textile and Apparel

List of eligible products

These include items such as apparel and footwear, wine, certain motor vehicle components, a variety of agricultural products, chemicals, steel and others.

GSP list of products
Additional products added to the GSP list under the AGOA Scheme

Export Procedures for Textiles and Apparel products under AGOA

Registration

Any person or company willing to export under the provision of AGOA has to register with the Trade Division of the Ministry of Commerce and Consumer Protection by filling a registration form available at the Ministry.

AGOA Visa Certificate

Each consignment of goods to be exported to the USA under the AGOA scheme should be accompanied by an AGOA Visa Certificate delivered by the Trade Division of the Ministry of Commerce and Consumer Protection.

Level 1, Custom House
Mer Rouge
Port Louis
Republic of Mauritius

Telephone Numbers: + (230) 2020500/ + (230) 460-2500
Fax Number: + (230) 468-7404 / 468-7395

Email: mcom@govmu.org

Application for an AGOA visa must be accompanied by the following documents:

• Original commercial invoices together with 4 copies
• AGOA Textile Certificate of Origin in triplicate obtainable from the Mauritius Export Association (MEXA)
• Export Declaration Form obtainable from the Mauritius Export Association (MEXA)
• Copy of the Export Permit duly approved by the Ministry
• Customs Declaration (Import and Export)
• Costing (where applicable)
• Affidavit, Import Invoice (where applicable)
• Any other documents as may be required by the Trade Division