Duty-free Asian fabric versus duty-free access to the US

Imported fabric enters Guatemala free of import duty and VAT under temporary admission, but if the garment is to reach the United States duty-free, the yarn and the fabric must come from the United States or the CAFTA-DR region: "only apparel using yarn and fabric from the United States, Central America and the Dominican Republic qualifies for duty-free benefits" (USTR, verified 2026-08-22). The two regimes cut across each other: Asian fabric means a Guatemalan customs saving but full duty in the United States; regional or US fabric means duty-free access. The exception is the Short Supply List (Annex 3.25): fibers, yarns and fabrics declared not commercially available in the region qualify even when sourced from outside; the detail of the process appears in commercial guides and with CBP.

The research is written in English; quoted figures, source names and the titles of legal instruments stay in the language their source published them in.