Five years after its implementation, the Earned Import Allowance Program (EIAP) is not providing enough incentives to help reverse the decline in Dominican apparel exports to the U.S. market, as intended, reports the U.S. International Trade Commission (USITC) in its publication Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Fifth Annual.
- Of the 12 registered firms, only 5 firms are currently using the program, down from 7 firms reported in the fourth annual review.
- In 2013, U.S. imports of woven cotton bottoms from the Dominican Republic declined by 76 percent, by both quantity and value, compared to 2012. Also, U.S. exports to the Dominican Republic of cotton fabrics of a weight suitable for making bottoms fell for the second year in a row, declining by 25 percent by both quantity and value between 2012 and 2013.
- The USITC received several recommendations from industry and other sources concerning improvements to the EIAP. The recommendations were the same as those received during the previous four annual reviews-1) lowering the 2-for-1 ratio of U.S. to foreign fabric to a 1-for-1 ratio; 2) expanding the program coverage to enable other types of fabrics and apparel items to be included in the EIAP; and 3) changing the requirement that dyeing and finishing of eligible fabrics occur in the United States.
Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Fifth Annual (Inv. No. 332-503, USITC Publication 4476, July 25, 2014) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4476.pdf.