Friday, September 21, 2018

Weeplay Kids Recalls Children’s Coveralls Due to Choking Hazard

Description: This recall involves infant ED by Ellen DeGeneres coveralls with hat. The pink striped, two-piece, long-sleeve coveralls are 100% cotton. They have a kangaroo pocket and bunny-shaped applique on the left chest, a hat with pompom and snaps in the crotch. Style ED01210 was sold in infant sizes 3M, 6M and 9M; and style ED13210 was sold in 12M, 18M and 24M. The style number and manufacture date code of August 2017 (08/2017) are printed on the inside garment tag located inside the seam of the garment. “ED by Ellen DeGeneres” and the garment sizes are printed on the inside back of the garment.

Remedy: Consumers should immediately stop using the recalled coveralls and return them to the place of purchase for a full refund.

Incidents/Injuries: The firm has received one report in Canada where the bunny applique detached from the garment, and a young child put it in their mouth. The grandparent removed it before it caused them to choke. No incidents or injuries have been reported in the United States.

Sold At: Buy Buy Baby and Marshalls stores nationwide and online at www.buybuybaby.com from September 2017 through January 2018 for about $16.

Manufacturer(s): Dongguan Sureon Trading Limited, of China

Distributor(s): Weeplay Kids LLC, of N.Y.

Manufactured In: China

Recall number: 18-225

China Section 301 Tariff Update

On September 21, 2018, the Office of the United States Trade Representative published in the Federal Register (83 FR 47974) Notice of Modification of Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation -- the publication of the list of products of Chines-origin to be subject to 10% additional tariffs beginning on September 24, 2018. The notice did not include a procedure for companies to request exclusions of specific products. The earlier two lists of "Section 301" tariffs were followed, relatively shortly with publication of procedures for seeking exclusions and most observers expect there will be a similar procedure with regard to this list.

For more information see Agathon Associates MUST-READ Update on China Section 301 Tariffs.

Thursday, September 20, 2018

Contract Awarded for Flame Resistant Trousers for the Army

Bethel Industries, Inc. Jersey City, New Jersey, has been awarded a maximum $65,320,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for flame resistant trousers for the Army Combat Uniform. This was a competitive acquisition with 12 responses received. This is an 18-month base contract with one one-year option period. Maximum dollar amount is for the life of the contract, including the option. Location of performance is New Jersey, with a March 18, 2021, estimated performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1087).

Wednesday, September 19, 2018

CPSC to Meet with Upholstery Group

On October 4, 2018, Consumer Product Safety Commissioner Robert Adler and staff are meeting with representatives from Upholstered Furniture Action Council (UFAC): Donald Coleman, President; Bobby Bush, Technical Director; as well as Neal Cohen, consumer product safety attorney. Agenda topics include consumer education and other upcoming initiatives.

Department of Defense Clothing Contracts Awarded

Pentaq Manufacturing Corp., Sabana Grande, Puerto Rico, has been awarded a maximum $32,908,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for various types of coats and trousers. This is a two-year contract with no option periods. This was a competitive acquisition with five responses received. Location of performance is Puerto Rico, with a Sept. 17, 2020, estimated performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2018 through 2020 defense working capital funds. The contracting activity is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1084).

Coachys & Associates LLC, Canton, Georgia, has been awarded a maximum $12,499,907 modification (P00008) exercising the second one-year option period of a one-year base contract (SPE1C1-16-D-1087) with two one-year option periods for camouflage parkas. This is a firm-fixed-price contract. Locations of performance are Georgia and Tennessee, with a Sept. 27, 2019, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Federal Business Opportunities through September 19, 2018

Recently posted federal business opportunities

-------------------------------------------------------
Title:             Turnout Fire-Fighting Clothing
Sol. #:            N00104-18-Q-X053
Agency:            Department of the Navy
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Title:             COLD PROTECTION JACKET & PANTS
Sol. #:            W91QVN-18-R-0232
Agency:            Department of the Army
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Title:             WORK PANTS
Sol. #:            W91QVN-18-R-0230
Agency:            Department of the Army
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Title:             Gear Bags
Sol. #:            W9124X-18-Q-5020
Agency:            Department of the Army
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Title:             Deployment Clothing
Sol. #:            W9127Q-18-R-0059
Agency:            Department of the Army
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Title:             Level III Tactical Armor
Sol. #:            15B61818Q00000038
Agency:            Department of Justice
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Title:             CRASH TOWEL TIERED EVALUATIONS SDVOSB - VOSB  
Sol. #:            36C25818Q9853
Agency:            Department of Veterans Affairs
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Title:             Deployment Gear
Sol. #:            141SFSDEPLOYMENT
Agency:            Department of the Army
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Title:             BAG,WATER,ASSEMBLY
Sol. #:            SPE1C118R01300001
Agency:            Defense Logistics Agency
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Title:             CSI and Forensics Equipment
Sol. #:            191NLE18Q0055
Agency:            Department of State
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Title:             OSD IDENTIFICATION BADGES
Sol. #:            DSB0818181550
Agency:            Other Defense Agencies
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Title:             Ballistic Plate Carriers
Sol. #:            FA3099-18-Q-0047
Agency:            Department of the Air Force
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Title:             Sweaters Various Items
Sol. #:            SPE1C1-18-R-0150
Agency:            Defense Logistics Agency
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Title:             Cubicle Curtains 
Sol. #:            IRWINBJS0002
Agency:            Department of the Army
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Title:             Shelter, Airbeam
Sol. #:            JacksonDRIMPED0004
Agency:            Department of the Army
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Title:             Cold Weather Gear - A6 Pants
Sol. #:            Bragg18WSMNV0011
Agency:            Department of the Army
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Title:             Cold Weather Gear - A7 Pants
Sol. #:            Bragg18WSMNV0010
Agency:            Department of the Army
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Title:             Award notice for Norfolk Super Servmart
Sol. #:            N0018918R0003
Agency:            Department of the Navy
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Title:             Cold Weather Gear - A3 Top
Sol. #:            BraggMNV0009
Agency:            Department of the Army
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Title:             Blouse Coats
Sol. #:            IQ1_LOG201800115
Agency:            United States Capitol Police
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Title:             Cold Weather Gear - A4 Top
Sol. #:            BraggMNV0008
Agency:            Department of the Army
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Title:             Cold Weather Gear - A5 Jacket
Sol. #:            Bragg18WSMNV0007
Agency:            Department of the Army
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Title:             Repair kit, 2-man combat
Sol. #:            014626490
Agency:            Defense Logistics Agency
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Title:             OCP Velcro Patches
Sol. #:            FA440718F2032
Agency:            Department of the Air Force
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Title:             Alfa Nordic Ski Boot 
Sol. #:            Nordic_005
Agency:            Department of the Army
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Title:             US Honor Guard Boots
Sol. #:            F1D0268136GW01
Agency:            Department of the Navy
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Title:             Four man, four season freestanding self-supporting tent
Sol. #:            Nordic_004
Agency:            Department of the Army
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Title:             Tents
Sol. #:            Bragg18WSMNV0002
Agency:            Department of the Army
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Title:             Mag Pouches and Holsters
Sol. #:            Bragg18WSMNV0004
Agency:            Department of the Army
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Title:             Army Combat Shirts
Sol. #:            W912NR18Q0088
Agency:            Department of the Army
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Title:             A2CU Coats and Trousers
Sol. #:            SPE1C1-18-R-0124
Agency:            Defense Logistics Agency
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Title:             GLOVES,MEN'S
Sol. #:            
Agency:            Defense Logistics Agency
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Title:             commercial Improved Ghillie Suit
Sol. #:            w911qy18r0026
Agency:            Department of the Army
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Title:             Solicitation SPE1C1-18-Q-0340
Sol. #:            SPE1C1-18-Q-0340
Agency:            Defense Logistics Agency
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Title:             First Responder IDIQ Uniforms
Sol. #:            W912BU-18-R-0042
Agency:            Department of the Army
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Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
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Title:             Curtains for ACSC Wood Auditorium
Sol. #:            F2XHC18220AW01
Agency:            Department of the Air Force
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Title:             Ballistic Plates
Sol. #:            F8T3SF8257A001
Agency:            Department of the Army
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Title:             Thermal Injury Prevention Gear
Sol. #:            PANNGB_18_P_0000_079403
Agency:            Department of the Army
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Title:             Army Keller Hospital Security Equipment -West Point
Sol. #:            W911SD-18-R-0181
Agency:            Department of the Army
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Title:             BAG,WATER
Sol. #:            SPE1C118Q0330
Agency:            Defense Logistics Agency
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Title:             Ballistic Plates
Sol. #:            N6328518T1508
Agency:            Department of the Navy
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Title:             Tents
Sol. #:            W912PB18Q3155-0002
Agency:            Department of the Army
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Title:             Police Uniforms and Equipment
Sol. #:            2031ZA18N00048
Agency:            Department of the Treasury
-------------------------------------------------------
Title:             MP outer vests and inserts
Sol. #:            W90VN818R0091
Agency:            Department of the Army
-------------------------------------------------------
Title:             Airborne Equipment
Sol. #:            Bragg18WSMNV0017
Agency:            Department of the Army
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Title:             Eye Pro AIrborne
Sol. #:            Bragg18WSMNV0014
Agency:            Department of the Army
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Title:             Cold Weather Gear - A4 Pants
Sol. #:            Bragg18WSMNV0013
Agency:            Department of the Army
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Title:             Cold Weather Gear - A5 Pants
Sol. #:            Bragg18WSMNV0012
Agency:            Department of the Army
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Title:             Cold Weather Gear - A6 Pants
Sol. #:            Bragg18WSMNV0011
Agency:            Department of the Army
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Title:             Cold Weather Gear - A7 Pants
Sol. #:            Bragg18WSMNV0010
Agency:            Department of the Army
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Title:             Cold Weather Gear - A3 Top
Sol. #:            BraggMNV0009
Agency:            Department of the Army
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Title:             Cold Weather Gear - A4 Top
Sol. #:            BraggMNV0008
Agency:            Department of the Army
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Title:             Cold Weather Gear - A7 Jacket
Sol. #:            Bragg18WSMNV0006
Agency:            Department of the Army
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Title:             Cold Weather Gear - A5 Jacket
Sol. #:            Bragg18WSMNV0007
Agency:            Department of the Army
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Title:             Cold Weather Gear - A6 Jacket
Sol. #:            Bragg18WSMNV0005
Agency:            Department of the Army
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Title:             Soft shelter- Folding Frame Tents RFI
Sol. #:            na156156
Agency:            Department of the Army
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Title:             AirBeam Tents/Structures  RFI
Sol. #:            na09142018
Agency:            Department of the Army
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Title:             Air Beam Tent
Sol. #:            BENNTF128JS0001
Agency:            Department of the Army
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Title:             Army Liners Fabric Pre-Cuts for Trunk APFU Program
Sol. #:            CT2252A-18
Agency:            Department of Justice
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Title:             JUMP PACK,MISSILE
Sol. #:            SPE1C118Q0316
Agency:            Defense Logistics Agency
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Title:             Logistics Service Uniforms 662A8    
Sol. #:            36C26118Q9674
Agency:            Department of Veterans Affairs
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Title:             HELMET,PARACHUTISTS
Sol. #:            SPE1C118Q0335
Agency:            Defense Logistics Agency
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Title:              Army USAACE Approved touchscreen capable glove
Sol. #:            0011215071
Agency:            Department of the Army
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Title:             SPMYM2-18-Q-3834
Sol. #:            SPMYM2-18-Q-3834
Agency:            Defense Logistics Agency
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Title:             Cold Temperature and Artic Protective System (CTAPS)
Sol. #:            W911QY18R0034
Agency:            Department of the Army
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Title:             For Cold Temperature and Artic Protective System (CTAPS) Project
Sol. #:            W911QY18R0034
Agency:            Department of the Army
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Title:             Presentation of recognition items for retention purposes 
Sol. #:            SAMRETPC0003
Agency:            Department of the Army
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Title:             EFB Gloves 
Sol. #:            F3V1A18239AW01
Agency:            Department of the Air Force
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Title:             RAF Croughton Inflatable Shelters
Sol. #:            FA557018Q0024
Agency:            Department of the Air Force
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Title:             Gun Range Shade Shelters (Solicitation #: FA3016-18-U-0368)
Sol. #:            
Agency:            Department of the Air Force
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Title:             Cold Temperature and Artic Protective System (CTAPS)
Sol. #:            W911QY18R0034
Agency:            Department of the Army
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Title:             Tactical Rover
Sol. #:            N6893618Q0358
Agency:            Department of the Navy
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Title:             Air Rapid Response Kit
Sol. #:            FA5000-18-Q-0228
Agency:            Department of the Air Force
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Title:             Fast Rope Gloves
Sol. #:            POLK5AVNPF0008
Agency:            Department of the Army
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Title:             Bed Linen
Sol. #:            N0018918Q0520
Agency:            Department of the Navy
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Title:             BPA and 1st Order for SBA-ODA Logo Jackets
Sol. #:            73351018Q0041
Agency:            Small Business Administration
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Title:             Shelter, Airbeam
Sol. #:            JacksonDRIMPED0004
Agency:            Department of the Army
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Title:             Uniforms
Sol. #:            192118VHQ4SRT0064
Agency:            Department of Homeland Security
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Title:             EFB Gloves 
Sol. #:            F3V1A18239AW01
Agency:            Department of the Air Force
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Title:             Non NSN Deployment Gear
Sol. #:            FA4528-18-Q-4069
Agency:            Department of the Air Force
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Title:             Level IIIA Ballistic Helmets
Sol. #:            FA7014-18-F1DT858141AW01
Agency:            Department of the Air Force
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Title:             BINDING,STRAP
Sol. #:            SPE1C118T1986
Agency:            Defense Logistics Agency
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Title:             BPA and 1st Order for SBA-ODA Logo Polo Shirts
Sol. #:            73351018Q0039
Agency:            Small Business Administration
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Title:             HELMET,PARACHUTISTS
Sol. #:            SPE1C118Q0334
Agency:            Defense Logistics Agency
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Title:             Sandbag Replenishment
Sol. #:            W912DW18R0041
Agency:            Department of the Army
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Title:             GEAR & UNIFORMS DEPLOYMENT GEAR
Sol. #:            FA8201-18-R-0025
Agency:            Department of the Air Force
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Title:             HEAVY DUTY VINYL STEEL TARPS/ FIRE RETARDANT
Sol. #:            N4761818RC10110
Agency:            Department of the Navy
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Title:             Chin Strap Extender
Sol. #:            M67854-18-P-1409
Agency:            Department of the Navy
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Title:             UA Rain Gear 
Sol. #:            Branded_UA_Rain_Gear
Agency:            Department of the Army
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Title:             Industries for the Blind
Sol. #:            95332A18T0064
Agency:            Corporation for National and Community Service
-------------------------------------------------------
Title:             Final Bid - Flight Clothing
Sol. #:            W912JM-18-Q-0008-01
Agency:            Department of the Army
-------------------------------------------------------
Title:             Brigade TAC Tent
Sol. #:            FBNC382PJS00010
Agency:            Department of the Army
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Title:             Tents
Sol. #:            W912PB18Q3155-0002
Agency:            Department of the Army
-------------------------------------------------------
Title:             Tents
Sol. #:            W912PB18Q3155
Agency:            Department of the Army
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Title:             T-11 Personnel Parachute System
Sol. #:            w911qy18r0033
Agency:            Department of the Army
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Title:             HEAVY DUTY VINYL STEEL TARPS/ FIRE RETARDANT
Sol. #:            N4761818RC10110
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Body Armor
Sol. #:            N6328518T1167
Agency:            Department of the Navy
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Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             Army Liners Fabric Pre-Cuts for Trunk APFU Program
Sol. #:            CT2252A-18
Agency:            Department of Justice
-------------------------------------------------------
Title:             Canopy Replacement
Sol. #:            FA301618U0342
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             FA4497-TENT
Sol. #:            F4497-TENT
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Thermal Injury Prevention Gear
Sol. #:            PANNGB_18_P_0000_079403
Agency:            Department of the Army
-------------------------------------------------------
Title:             DES Road Gear and Law Enforcement Equipment Supplies
Sol. #:            W911SD-18-R-0212
Agency:            Department of the Army
-------------------------------------------------------
Title:             TACTICAL PANTS
Sol. #:            TACTICAL_PANTS_USAMU
Agency:            Department of the Army
-------------------------------------------------------
Title:             ARRK Deployable Assets
Sol. #:            FA441718Q0229
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Non NSN Deployment Gear
Sol. #:            FA4528-18-Q-4069
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Zumro Tent Shelters (Model 400)
Sol. #:            W912LA-18-T-6079 
Agency:            Department of the Army
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Title:             Army Combat Shirts
Sol. #:            W912NR18Q0088
Agency:            Department of the Army
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Title:             Pew Cushions
Sol. #:            DrumRSOCAB0001
Agency:            Department of the Army
-------------------------------------------------------

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can find links to the full solicitations at www.agathonassociates.com/textile-pri/berry/fbo.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Tuesday, September 18, 2018

MUST-READ Update on China Section 301 Tariffs

On September 17, 2018, as part of the United States' continuing response to China's theft of American intellectual property and forced transfer of American technology, the Office of the United States Trade Representative (USTR) released a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs. In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10 percent. Starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.

The list contains 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Chinese imports announced on July 10, 2018. Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received comments over a six-week period and testimony during a six-day public hearing in August. The Office of USTR believes they engaged in a thorough process to rigorously examine the comments and testimony and, as a result, determined to fully or partially remove 297 tariff lines from the original proposed list.

If you filed comments or gave testimony in an attempt to get something removed, remember, it was not a waste of your time. Your comments appear to have been largely ignored by the President, who, it appears, is taking this abrupt action in an attempt to accelerate talks with the Chinese toward a negotiated agreement. Your comments and testimony may well influence the U.S. position in the talks.

Agathon Associates is aware that there is considerable confusion and concern over this action.

Q and A.

Q1. What is on the final list?

A1. The official list is available HERE

Q2. What lines were removed?

A2. USTR has made the following general statement:"Included among the products removed from the proposed list are certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets, and child safety furniture such as car seats and playpens."

Agathon Associates has prepared an UNOFFICAL list in spread sheet form.

Q3. An article I import from China is on the list? What can I do?

A3. Unless you can quickly change your sourcing, or defer imports, you should prepare to start paying an additional 10% duty starting on September 24, 2018. It will likely be temporary, but no one knows how long it will be in effect or whether it will continue with a 25% rate starting January 1, 2019.

Q4. Is there any chance it may not go into effect?

A4. Yes, it is widely understood that the President is taking actions against China to bring China to the negotiation table and get a better trading arrangement for the U.S. It is possible that he could accomplish that before the tariffs go into effect. It is also possible that a deal could be made within a few weeks, limiting the duration of the harm. It is also possible that a court may delay it (see question 5, below).

Q5. Is this even legal? All these list suddenly released looks like he's making it up as he goes along, rather than following regulatory procedures.

A5. Good point.

The Consumer Technology Association ("CTA") has filed comments challenging the legality of List 3 (see the history below if you want to clarify the three lists). CTA contends that the administration did not have the authority to impose new tariffs -- beyond the two lists of tariffs already in effect -- without initiating a new investigation."Section 301 does not authorize the additional $200 billion in List 3 tariffs, for at least two reasons," the submission states. "First, the announcement of the List 3 tariffs came well outside the 30-day limit imposed by Section 305 of the Trade Act. Second, the List 3 tariffs were based on impermissible reasons post-dating the Section 301 investigation --namely, 'China's response to the $50 billion action announced in the investigation and its refusal to change its acts, policies, and practices,' -- rather than on the original Section 301 investigatory findings, as the statute requires." CTA further argues that Section 307 of the 1974 trade law does not permit the administration to modify remedies indefinitely. "It does not authorize USTR to impose brand new penalties that more than quadruple those imposed following the original investigation," the submission says. "Nor does it offer the Administration a blank check to increase tariffs at any time based on events post-dating the initial Section 301 investigation. Such unfettered discretion is inconsistent with the fact-based determination required by Section 301."

Another consideration is the timing. Just 12 days after the close of the September 6, 2018, comment period, and just two days after the transcript of the hearing was made available on regulations.com, USTR announced the final list. There is no way that government bureaucrats had time to fully analyze over 6,000 comments and testimony from over 300 witness in such a short time. One can argue that once you acknowledge that the proposed action requires consideration of public comments, you cannot then move ahead without even reading those comments.

Would a legal challenged based on the assertions above be successful? It may not be necessary to prevail, merely finding one judge to stay the action pending a full court hearing would, at least for a considerable time, stop the tariffs.

Q6. What about filing for an exclusion by the October 9, 2018, deadline?

A6. As of now there is no provision for filling for an exclusion from List 3 tariffs. The October 9th deadline refers to List 1. If List 3 tariffs are imposed it is generally expected that an opportunity to file for exclusion will be announced when they go into effect or shortly after. However, the extremely high volume of exclusion requests expected will put a tremendous strain on the government to process them, with the result that they may take more than the 90 days they are supposed to take to complete. For more information see the history below.

Q7. What about duty suspensions under the Miscellaneous Tariff Bill?

A7. If you successfully filed for a temporary duty suspension under the recently enacted MTB, those duty suspensions will go into effect as scheduled, 30 days from enactment. So if you currently pay duty on an article from China and it's on the MTB list, you will avoid the general duty. However, if the Section 301 duties go into effect you cannot avoid them. They are in addition to the general rate and unaffected by the MTB.

Q8. Can I use a Foreign-Trade Zone to avoid 301 duties?

A8. Possibly. If you use inputs subject to 301 duties and subsequently export those articles, either in the same condition, or after manufacturing, you can avoid 301 duties on exports using FTZ procedures. FTZ procedures will also avoid 301 duties on materials that become waste in the manufacturing process.

HISTORY: THE INVESTIGATION THAT SET THIS ALL IN MOTION

On August 14, 2017, the President issued a Memorandum (82 FR 39007) instructing the Trade Representative to determine whether to investigate under section 301 of the Trade Act of 1974 (Trade Act) (19 U.S.C. 2411), laws, policies, practices, or actions of the Government of China that may be unreasonable or discriminatory and that may be harming American intellectual property rights, innovation, or technology development. On August 18, 2017, after consultation with the appropriate advisory committees and the interagency Section 301 Committee, USTR initiated an investigation into certain acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation.

The findings of this investigation were the basis for President Trump's proposal to impose additional tariffs on certain goods of Chinese origin. So far two tranches of tariffs have been imposed and a third is scheduled to be implemented on September 24, 2018.

TRANCHE ONE

On April 3, 2018, USTR released a proposal to place an additional 25% import duty on products covered by 1,333 tariff classifications. The list was published in the April 6, 2018, Federal Register (83 FR 14906).

Interested persons filed approximately 3,200 written submissions. In addition, USTR and the Section 301 Committee convened a three-day public hearing from May 15-17, 2018, during which 121 witnesses provided testimony and responded to questions. Post-hearing comments were accepted through May 22, 2018. 515 items were removed from the list.

On June 15, 2018, 24 days after the close of the comment period, USTR announced the final list.

On July 6, 2018, additional tariffs of 25% began to be applied to those 818 lines.

On July 11, 2018, five days after implementing the tarffs, USTR posted in the Federal Register (83 FR 32181) procedures to apply for exclusions from the 25% tariff on items covered by Tranche 1. The deadline to apply for an exclusion is October 9, 2018. If an exclusion is granted it will be retroactive to July 6th.

TRANCHE TWO

On June 15, 2018, USTR released a proposal to place an additional 25% import duty on products covered by 284 tariff classifications. The list was published in the June 20, 2018, Federal Register (83 FR 28710).

On August 8, 2018, eight days after the close of the July 31, 2018, comment period, USTR announced a list containing 279 of the original 284 tariff lines that were on a proposed list that will be subject to 25% additional tariffs. These went into effect August 23. On September 18, 2018, USTR published in the Requests for exclusions from the additional 25 percent tariff imposed as of Aug. 23 on goods classified under 284 tariff lines when imported from China are due by December 18.

TRANCHE THREE

On July 6, 2018, in response to unfair Chinese practices, the United States began imposing tariffs of 25 percent on approximately $34 billion worth of Chinese imports. These tariffs will eventually cover up to $50 billion in Chinese imports as legal processes conclude. The products targeted by the tariffs are those that benefit from China’s industrial policy and forced technology transfer practices. China has since retaliated against the United States by imposing tariffs on $34 billion in U.S. exports to China, and threatening tariffs on another $16 billion. The U.S. claims that China did this without any international legal basis or justification. As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports. The U.S. maintains that this is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies.

On July 17, 2018, USTR posted a third list, this one with over 6,031 items. Comments were due September 6.

On September 17, 2018, (just 12 days after the close of the September 6, 2018, comment period, and just two days after the transcript of the hearing was made available on regulations.com) USTR announced the final tranche 3 list of 5,745 full or partial lines of the original 6,031 tariff lines as the final tranche 3 list with 10% additional tariff to be imposed starting September 24, 2018, and rising to 25% on January 1, 2019. They fully or partially removed 297 tariff lines from the original proposed list. Included among the products removed from the proposed list are certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets, and child safety furniture such as car seats and playpens. Most observers expect that tranche 3 will have an exclusion procedure, as did tranche 1 and tranche 2. It will likely be announced in a few weeks. >