The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) is a reciprocal free trade agreement among the United States and six partners: Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. It was implemented in U.S. law by Pub. L. 109-53 and entered into force on a rolling basis between 2006 and 2009.
Origin rules. Like other modern U.S. FTAs, CAFTA-DR uses product-specific rules of origin combining tariff shift and regional value content tests. RVC may be calculated using either the build-up or build-down method; the build-down threshold is generally 35%, the build-up is 45%. A 10% de minimis tolerance applies.
Apparel: yarn-forward. CAFTA-DR uses a strict "yarn-forward" rule — yarn and fabric must originate in the region for the finished apparel to qualify. Limited exceptions:
- Pocket bag fabric exception (effective 2008)
- Single transformation allowed for certain knit-to-shape and silk garments
- Cumulation with Canada and Mexico (NAFTA) for some woven apparel
Certification. No prescribed form. The importer makes a claim based on a certification provided by the importer, exporter, or producer containing prescribed data elements (CAFTA-DR Article 4.16). Records are retained for five years.
Claims. Use Special Program Indicator "P" or "P+" on CBP Form 7501. Post-importation claims may be filed within one year under 19 U.S.C. § 1520(d).
CAFTA-DR effectively replaced CBERA and CBTPA preferences for its six partner countries.