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Deadline for Costa Rica to Join CAFTA-DR Extended

Client Alert | 1 min read | 11.04.08

Tolling Period on Recovery of Textile/Apparel Import Duties from CAFTA Countries Expected to Begin on January 1, 2009

On August 2, 2005 the United States-Dominican Republic-Central America Free Trade Agreement (CAFTA) was signed into law in the United States. CAFTA is a regional free trade agreement (FTA) among seven signatories (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and the United States).

For importers/exporters of apparel and textile articles, CAFTA provides an opportunity to enjoy not only preferential access to markets prospectively, but also retroactive duty refunds for qualifying merchandise. Specifically, CAFTA provides for reciprocal duty free access for textile and apparel goods, retroactive to January 1, 2004. To qualify, products must meet the CAFTA's rule of origin and refunds must be requested, processed and compliant with Customs and Border Protection (CBP) regulations.

Requests for retroactive refunds are due 90 days after the last country enters into the agreement. The agreement has been entered into force by all signatory countries, except Costa Rica. Costa Rica approved CAFTA by national referendum in October 2007, but must still implement legislation required to carry out its obligations under the agreement. While progress has been made, the Costa Rican government needs additional time to adopt necessary implementing legislation before CAFTA can enter into force for Costa Rica.

Under CAFTA, Costa Rica was required to implement these laws by March 2008, however, the six current CAFTA countries have agreed to extend the deadline for Costa Rica's entering the agreement until January 1, 2009. Based on this extension, it is expected that the deadline for filing refund claims for originating textile and apparel imports will be April 1, 2009.

Please contact a member of the Crowell and Moring duty recovery team for assistance in quantifying and processing refunds.

Insights

Client Alert | 3 min read | 06.12.26

DOJ Guidance Backs Away From Disparate Impact Liability

On June 9, 2026, the U.S. Department of Justice (DOJ) issued a formal opinion concluding that the Equal Opportunity Employment Commission’s (EEOC) existing interpretations of Title VII of the Civil Rights Act of 1964 (Title VII) disparate-impact liability, including the Uniform Guidelines on Employee Selection Procedures (UGESP), are unconstitutional. According to the opinion, EEOC’s prior interpretations contemplate liability based on disproportionately adverse effects alone, without regard to an employer’s likely intent, rather than treating disparate impact as an evidentiary mechanism to “smoke out” intentional discrimination. DOJ found that this approach functions as a “qualified racial-proportionality mandate” that places “a racial thumb on the scales, often requiring employers to evaluate the racial outcomes of their policies, and to make decisions based on (because of) those racial outcomes.” The opinion fulfills one mandate of Executive Order 14281, which rejected disparate-impact liability insofar as it “creates a near insurmountable presumption that unlawful discrimination exists wherever there are any differences in outcomes among different [demographic groups].”...