Nearshore Production in Latin America

We offer a Dominican Republic (DR) facility that reduces shipping times, lowers transportation costs, and eliminates or significantly reduces tariffs under CAFTA-DR. This means faster turnaround and fewer customs complications compared to more distant locations like Asia. With the ability to avoid tariff and duty costs backed by our 75 years of garment manufacturing excellence, you can ensure that all of our garments withstand our high-quality guarantee, strict quality control, and exceptional fit.

​To ensure your apparel products manufactured in the Dominican Republic qualify for duty-free entry into the United States under the CAFTA-DR agreement, please adhere to the following key requirements:​

1. Yarn-Forward Rule: All stages of production, from yarn spinning to fabric weaving or knitting and final garment assembly, must occur within CAFTA-DR member countries (including the Dominican Republic and the United States). This ensures the product qualifies as originating within the free trade area. ​

2. Use of Originating Thread and Elastics: Sewing threads and narrow elastic fabrics used in the assembly of apparel must be produced within the CAFTA-DR region. This stipulation ensures that essential components of the garment are sourced from member countries. ​

3. De Minimis Provision: Up to 10% of the weight of the garment may consist of non-originating fibers or yarns without affecting its duty-free status. However, this allowance does not apply to elastomeric yarns, which must be sourced from within the CAFTA-DR region. ​

4. Short Supply List: If certain yarns or fabrics are not commercially available within the CAFTA-DR countries, they may be sourced from outside the region. These exceptions are listed in Annex 3.25 of the agreement, known as the “short supply list.” ​

5. Proper Documentation: Maintain accurate records and obtain a Certificate of Origin to substantiate that your products comply with CAFTA-DR requirements. This documentation is essential for claiming preferential tariff treatment upon importation into the United States. ​U.S. Customs and Border Protection

6. Compliance with Customs Procedures: Ensure adherence to all customs procedures outlined in the CAFTA-DR agreement, including accurate classification and valuation of goods, to facilitate smooth importation and avoid potential penalties. ​

By following these guidelines, you can effectively navigate the CAFTA-DR provisions and benefit from duty-free access to the U.S. market for your apparel products.

Our team meticulously follows CAFTA-DR requirements. We use regionally sourced materials (fabric, thread, and elastics) wherever possible, and we manage the necessary documentation—including Certificates of Origin—to guarantee you receive the full duty-free benefit.

Production timelines vary based on factors like order size, fabric availability, and design complexity. However, proximity to the U.S. typically means shorter shipping times—often just a few days—so you can quickly restock or respond to market demands.

In most cases, garments must be made with regionally sourced materials to qualify for duty-free treatment. The exception is the “short supply” list, which allows certain non-regional fabrics if they’re not available within CAFTA-DR countries. We’ll guide you through these requirements to ensure maximum savings. Full list here.

We manage the entire process for you—from fabric sourcing and production to freight coordination and customs documentation. Our experienced logistics team will ensure smooth entry into the U.S., reducing delays and unexpected fees.