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Eight O Seven (807)

What does Eight O Seven (807) mean?

A law that pertains to the textile industry.  Specifically, the “807” law allows fabrics to be cut in the United States, garments to be assembled in Mexico, Caribbean and Central American countries, and returned to the United States with tariff assessed only on the added value (i.e. sewing).

Heddels explains Eight O Seven (807)

Also known as “production sharing”, the 807/9802 provision in the United States allows manufacturers to cut down on the cost of labor for their products.

However, the law is highly controversial. Its opponents argue that the provision exports jobs from Americans to other nations, restricts free trade with Japan and other Asian countries, and encourages the development of sweatshop working conditions in the Caribbean.