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6 The African Growth and Opportunity Act - AGOA

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6 The African Growth and Opportunity Act - AGOA

  1. 1. The African Growth and Opportunity Act (AGOA)- Using AGOA to be more competitive in the handcrafts industry
  2. 2. AGOA – Un aperçu • A comprehensive program of trade preferences unilaterally applied by  the United States – The law was signed May 2000 as part of the Law on Commerce and Development of 2000 • Eliminates import tariffs on more than 6,400 products – 4,600 of these qualify for elimination of tariffs under the General System of  Preferences (GSP) of the U.S. – 2,000 additional products that would qualify under GSP are now included within AGOA.  • “AGOA III” extends the law to 2015. – The exception for textiles from the Third World has been extended until 2012 • Led to the creation of four trade hubs financed by USAID in Botswana,  Ghana, Kenya and Senegal to provide technical assistance. 
  3. 3. AGOA – Guide Pratique Country « A » (Not AGOA eligible) Produit Similar characteristics (quality, price) $ 2 FOB United  States Exports under the Normal Commercial Relations framework (RCN) According to the HS codes, tariffs vary from 5 to 32% Under AGOA, tariffs are eliminiated – 0% Price (RCN) ≈  $ 2.1 to $  2.64 Country « B » (AGOA eligible) Produit Exports under AGOA Prixce (AGOA) =  $ 2
  4. 4. Understanding the Harmonized System of  Customs Codes
  5. 5. An HS Code example (Leather sacks) Tariffs under AGOA = 0% (eliminated) HS Code Product description Tariff paid by importer under Normal Commercial Relations framework (NTR) Forgiven for AGOA eligible countries (D)
  6. 6. AGOA Resource Centers (ARCs) • 15 ARCs (Bénin, Burkina Faso, Cameroun,  Cape Vert, Gabon, Gambie, Ghana, Guinée  Bissau, Liberia, Mali, Nigeria, Sao Tome e  Principe, Sénégal, Sierra Leone, Tchad) ARCs are focal points in countries managed with local partner institutions with the following goals: ◦ To increase awareness and understanding among the private sector of  the advantages set by AGOA ◦ To increase access to resources and capacity of exporters: The centers identify export‐ready companies and refers them to the Trade Hub  for eventual participation in international trade shows and market linkages  activities.  ◦ To work strategically with the public and private sectors to define and  implement national export strategies. 
  7. 7. AGOA Export Toolkit
  8. 8. www.agoatoolkit.com
  9. 9. • Sense of urgency: Time is truly money! • Punctuality (deliveries, communications) • Save time, get to the point • Regular and frequent communication, particularly regarding problems • Reliability, quality (quantity, size, color…) • Consistent quality • Price (quality relative to price) • Change in products, trends and markets. Change is constant! • Once established, the price should not change unless there is an important change  • No surprises The American Market… Business Culture
  10. 10. Is your company ready to export to the U.S.? Preparatory work/study A proven business model Export experience Health of the business Export budget Strategic vision/Export strategy Human resources Competitive advantage Production capacity Product quality Certifications (i.e. ISO, Fair Trade) or applicable registrations (i.e. USFDA) Communications/IT/E-mail Expertise Commitment Finance Marketing Rapid access to the market Transport efficiency International norms
  11. 11. Documentation required to export to the  United States Non-Textile Products Textiles Products Commercial invoice Certificate of Origin SGP (Form A) Packing List Commericial Invoice (stamped with textile visa) Certificate of Origin for Textiles Packing List
  12. 12. For More Information www.watradehub.com Read Tradewinds, the Trade Hub’s  monthly e‐newsletter. info@watradehub.com MERCI