1. The African Growth and
Opportunity Act (AGOA)-
Using AGOA to be more competitive in the
handcrafts industry

2. AGOA – Un aperçu
• A comprehensive program of trade preferences unilaterally applied by
the United States
– The law was signed May 2000 as part of the Law on Commerce and Development
of 2000
• Eliminates import tariffs on more than 6,400 products
– 4,600 of these qualify for elimination of tariffs under the General System of
Preferences (GSP) of the U.S.
– 2,000 additional products that would qualify under GSP are now included within
AGOA.
• “AGOA III” extends the law to 2015.
– The exception for textiles from the Third World has been extended until 2012
• Led to the creation of four trade hubs financed by USAID in Botswana,
Ghana, Kenya and Senegal to provide technical assistance.

3. AGOA – Guide Pratique
Country « A »
(Not AGOA eligible)
Produit
Similar characteristics
(quality, price)
$ 2 FOB
United
States
Exports under the Normal
Commercial Relations framework
(RCN)
According to the HS codes,
tariffs vary from 5 to 32%
Under AGOA, tariffs are
eliminiated – 0%
Price (RCN) ≈
$ 2.1 to $
2.64
Country « B »
(AGOA eligible)
Produit
Exports under AGOA
Prixce
(AGOA) =
$ 2

4. Understanding the Harmonized System of
Customs Codes

5. An HS Code example
(Leather sacks)
Tariffs under AGOA = 0% (eliminated)
HS Code
Product
description
Tariff paid by importer
under Normal
Commercial Relations
framework (NTR) Forgiven for
AGOA eligible
countries (D)

6. AGOA Resource Centers (ARCs)
• 15 ARCs (Bénin, Burkina Faso, Cameroun,
Cape Vert, Gabon, Gambie, Ghana, Guinée
Bissau, Liberia, Mali, Nigeria, Sao Tome e
Principe, Sénégal, Sierra Leone, Tchad)
ARCs are focal points in countries managed with local partner
institutions with the following goals:
◦ To increase awareness and understanding among the private sector of
the advantages set by AGOA
◦ To increase access to resources and capacity of exporters:
The centers identify export‐ready companies and refers them to the Trade Hub
for eventual participation in international trade shows and market linkages
activities.
◦ To work strategically with the public and private sectors to define and
implement national export strategies.

7. AGOA Export Toolkit

8. www.agoatoolkit.com

9. • Sense of urgency: Time is truly money!
• Punctuality (deliveries, communications)
• Save time, get to the point
• Regular and frequent communication, particularly
regarding problems
• Reliability, quality (quantity, size, color…)
• Consistent quality
• Price (quality relative to price)
• Change in products, trends and markets. Change is
constant!
• Once established, the price should not change unless
there is an important change
• No surprises
The American Market… Business Culture

10. Is your company ready to export to the U.S.?
Preparatory work/study
A proven business model
Export experience
Health of the business
Export budget
Strategic vision/Export strategy
Human resources
Competitive advantage
Production capacity
Product quality
Certifications (i.e. ISO, Fair Trade) or
applicable registrations (i.e. USFDA)
Communications/IT/E-mail
Expertise
Commitment
Finance
Marketing
Rapid access to the market
Transport efficiency
International norms

11. Documentation required to export to the
United States
Non-Textile Products Textiles Products
Commercial invoice
Certificate of Origin SGP
(Form A)
Packing List
Commericial Invoice
(stamped with textile visa)
Certificate of Origin for
Textiles
Packing List

12. For More Information
www.watradehub.com
Read Tradewinds, the Trade Hub’s
monthly e‐newsletter.
info@watradehub.com
MERCI