"Be sure of your facts before taking the plunge in US"

THE US trade pact - the African Growth and Opportunity Act (AGOA) - is a very complex piece of legislation that comes with certain strings attached to it, according to a report from Safcor Panalpina. "In order to qualify for designation as an eligible country," it said, "countries have had to meet certain criteria. "These include progress in establishing a market-based economy, rule of law and the protection of intellectual property rights among others." And designation may be terminated, Safcor warns, if the US government determines that a country is not making continual progress in achieving the criteria that have been laid down. "A number of alterations in SA legislation have already been promulgated in order to comply with some of the requirements of the act," said the report. "These include a general prohibition of SA as an entrepot - when used to disguise the origin of goods." Proposed visa requirements for the export of goods to the USA under AGOA were published in Government Gazette 7020 of March 2. "These regulations," said Safcor, "also contain stringent requirements for other documents required for export, including commercial invoices and certificates of origin." The forwarder also highlights that preferential access to the US market for local textiles and clothing (the product on which AGOA was originally founded, but only added to the already lengthy list of acceptable products in March) could be of tremendous benefit to the whole of Southern Africa. But, Safcor warns, "the detailed and sometimes-onerous qualification requirements - as well as the severity of possible punitive action for non-compliance - make exporting under AGOA a matter that should not be approached lightly." This includes ascertaining how the US Customs Service will classify the relevant items, before engaging in supply contracts.