HR 6500: AGOA Extension Act

HR 6500 in plain English: This bill extends duty-free access to the U.S. market for exports from eligible sub-Saharan African countries through December 31, 2028, under the African Growth and Opportunity Act (AGOA) and related trade programs. It also extends certain customs and merchandise processing fees through December 31, 2031, and allows importers to claim refunds on duties paid on eligible goods that entered the U.S. after September 30, 2025, before the bill's enactment.

Stated purpose

This bill extends duty-free access to the U.S. market for most exports from eligible sub-Saharan African countries through December 31, 2028, and also extends customs user fees and merchandise processing fees through December 31, 2031.

Key points

• Extends duty-free U.S. market access for exports from up to 32 eligible sub-Saharan African countries through 2028.
• Includes duty-free treatment for apparel and a third-country fabric provision allowing apparel made with non-AGOA fabrics to qualify.
• Extends customs user fees and merchandise processing fees through December 31, 2031.
• Allows refunds on duties paid for eligible goods entering the U.S. after September 30, 2025, with CBP required to refund within 90 days.

Arguments supporters make

• Renewing these trade preferences supports economic growth and job creation in some of the world's poorest countries, advancing development and stability in sub-Saharan Africa.
• U.S. businesses that rely on affordable imports from Africa benefit from continued duty-free access, helping keep costs down across supply chains.
• The retroactive refund provision corrects a gap caused by the program's lapse, ensuring importers are not unfairly penalized for goods brought in during a period when Congress had not yet acted.

Arguments opponents make

• The third-country fabric provision allows goods assembled with materials from countries like China to receive duty-free treatment, which critics say undermines the goal of building genuine African industries and may benefit foreign manufacturers more than African workers.
• Extending the program without updating eligibility standards or accountability measures continues preferences for countries regardless of whether they are meeting AGOA's requirements around governance and human rights.
• Extending customs user fees, which are paid by importers, adds costs that are often passed on to American consumers and businesses, effectively bundling a fee increase with the trade preference renewal.

Tradeoffs

Extending duty-free preferences supports African exporters and lowers costs for U.S. importers, but the third-country fabric rule means some benefits flow to non-African suppliers; extending customs fees raises revenue for the U.S. government but increases costs on trade.

Current status in Congress: Passed House.

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