On January 1, 2017 the new nomenclature comes into force, which extends codes used in the Tariff System to 10 digits.
From a statement issued by the Salvadoran Association of Industrialists (ASI):
The Salvadoran Association of Industrialists (ASI) held on this day a conference with the aim of informing its members about the implementation of the Sixth Amendment to the nomenclature in the System for Tariff Description and Coding (SAC) and the enlargement to ten digits of the codes for goods that are exported and imported.
Factors such as production costs and labor, as well as security and economic stability seem to be more relevant to the textile companies that choose the country than tariff benefits.
The expiry on December 31 of the Tariff Preference Level (TPL) with the United States has not impacted the textile industry, as initially expected at least so far. According to the Nicaraguan Association of Textile and Apparel Industry (Anitec), the country still has attractive conditions for foreign investment in this sector.
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.
A bill that is being analyzed by the U.S. Congress aims to reduce the level of tariff preference to only 6% of imports from Nicaraguan textile factories.
Although the possibility exists of an extension of the current Tariff Preference Level (TPL) until 2015, American congressmen have proposed that the benefit be granted only on cotton pants, which represent the lowest proportion of Nicaraguan textile exports to the United States.
The preferential system which allows Nicaraguan textiles made with raw materials from countries outside of the DR-CAFTA to enter the U.S. without tariffs will expire at the end of 2014.
"... By the end of next year the nine-year grace period given by the United States to Nicaragua will expire, a benefit known as tariff preference level (TPL) which allows the country to export clothing made from yarn and fabrics from third countries for a maximum annual volume of one hundred million square meters." noted an article in Laprensa.com.ni.