My apologies if the title of this post ever disappoints sci-fi fans, but certain cashmere yarns from all over the world have now had an opportunity to trek to South Korea, and eventually to the United States.
A number of regional trading agreements (RTAs) contain the “yarn-forwarding” rule. This rule requires members of an RTA to source raw materials for textiles and apparels (such as yarns and fabrics) exclusively from member countries of that RTA for a final product (such as clothes) made out of such yarns to be eligible for any preferential treatment (duty-free). (See my previous post on this issue.) In practice, this rule may benefit two interest groups: first, domestic yarn producers of member countries; second, domestic textiles/apparels producers of member countries as well (since limited sourcing channels tend to restrain an influx of imports due to an RTA). Then, what if there are no yarns available in any of those member countries? In that case, should the yarn-forward rule be still enforceable?
The answer may be in the negative. For example, the United State-Korea (KORUS) FTA provides certain exception to the yarn-forward rule when yarns are “not available in commercial quantities in a timely manner from suppliers in the United States. (``Commercial Availability List'').” “A textile or apparel good imported into the United States containing fibers, yarns, or fabrics that are included on the Commercial Availability List in Appendix 4- B-1 of the KORUS FTA will be treated as if it is an originating good for purposes of the specific rules of origin in Annex 4-A of the KORUS FTA, regardless of the actual origin of those inputs (…).” (italics added) Obviously, there are no cashmere yarns produced in the United States, at least not commercially available in a timely manner.
Now, certain cashmere yarns from different countries will “explore strange new worlds,” “seek out new life and new civilizations,” and “boldly go where no [yarn] has gone before”!
