 This website was created in collaboration with the Zambia Development Agency.
The African Growth and Opportunity Act
AGOA is a United States (U.S.) trade agreement aimed at opening the economies of Sub- Saharan African countries. It expands on the benefits of the Generalized System of Preferences (GSP) program and allows eligible countries to export a greater number of qualifying products duty-free to the U.S. Because it is a unilateral trade act, exports from Zambia to the U.S. receive preferential treatment that imports from the U.S. into Zambia do not. AGOA was enacted in May 2000, expired in 2015, and has been renewed to be effective for another 10 years until 2025. Zambia is in a position to realize the benefits of expanding exports under AGOA. Taking steps now to increase exports of qualifying products will help to create jobs, grow the national economy, and diversify trade. AGOA and GSP
The African Growth and Opportunity Act (AGOA) was approved by the United States Congress to assist in the economic growth of eligible Sub-Saharan African countries. It builds on the Generalized Systems of Preferences (GSP), which allows 4,800 products to be imported into the U.S. duty-free from 129 developing countries. AGOA focuses on qualifying African nations, covers an additional 1,800 products, and has special provisions for the export of textile and apparel. AGOA also extends the benefits allowed under the GSP; although the GSP has been renewed for another 2.5 years and is effective only through 2017, AGOA-eligible countries can still enjoy the benefits under the GSP as long as AGOA is in effect, through 2025. Finally, while the GSP imposes quotas on the import of certain goods into the U.S., AGOA lifts some caps, thereby easing their importation. |
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Product Eligibility and Rules of Origin
For a product to be eligible for duty-free treatment under AGOA, it must comply with the basic rules of origin, established by the GSP to confirm a product’s origin from a beneficiary country:
For a product to be eligible for duty-free treatment under AGOA, it must comply with the basic rules of origin, established by the GSP to confirm a product’s origin from a beneficiary country:
- The product must be included on the list of GSP- or AGOA- eligible products, or qualify under the Special Rule for Apparel (see Product Finder).
- The product must be imported directly from the AGOA beneficiary country into the U.S. It may pass through another country as long as it is kept in a sealed container.
- The product must be grown, produced, or manufactured in the AGOA beneficiary country and accompanied by relevant documentation, including a certificate of origin.
- For non-textile goods, at least 35% of the product’s appraised value at the U.S. entry port must come from the sum of:
- Direct cost or value of materials produced in all AGOA beneficiary countries, and
- Direct costs of processing performed in all the AGOA beneficiary countries.
U.S. may contribute up to 15% of the 35% requirement. - For textile goods, the product must comply with the rules
of origin under the Special Rule for Apparel - To request duty-free treatment under AGOA, the U.S. must
indicate “D” in column 27 of the U.S. customs entry summary Form 7501 against the Harmonized Tariff Schedule (HTS) number for the AGOA-eligible product.