Panama Assembled Cotton T-Shirt from Canada
A classic crewneck cotton T-shirt assembled in Panama from U.S.-formed fabrics cut in Panama and U.S.-formed thread. This qualifies under HTS 9822.09.61 as a non-originating apparel good of chapter 61 where duty applies only to the value minus U.S. fabric and thread components per U.S. note 39. The special duty calculation reduces tariffs significantly for Panama-assembled garments using American materials.
Duty Rate — Canada → United States
10%
Rate breakdown
9903.05.2910%Section 301 (forced labor) — additional 10% ad valorem on products of Canada
Import Tips
• Declare U.S. fabric formation certificates; calculate dutiable value excluding U.S. components; ensure Panama sewing documentation; verify thread origin compliance