SMART has been actively engaged on an emerging trade issue in El Salvador, where government authorities have recently misinterpreted the rules of origin as they apply to used clothing (HTS 6309). Instead of recognizing that secondhand clothing qualifies as U.S.-origin goods when collected and prepared here, El Salvador has taken the position that origin is tied to the country where the clothing was first manufactured. This interpretation has created barriers for U.S. exporters of used textiles, despite the clear intent of U.S. trade agreements to allow secondhand clothing to move freely as U.S. goods.
SMART has raised this concern directly with U.S. trade officials and is pressing for clarification to ensure El Salvador corrects this misinterpretation. We continue to advocate for recognition that secondhand clothing is a legitimate U.S. export, critical to both our domestic industry and to consumers in Central America who rely on access to affordable apparel.
