Tuesday, October 20, 2020

No matter who wins the election, US fashion manufacturing won’t be returning to China

“Democrats are still going to be looking at tariffs as a policy,” said Stephen Lamar, CEO of the American Apparel & Footwear Association.

Read more HERE

Mohair South Africa partner with Oritain to verify the origin of 50% of the worlds mohair

Mohair South Africa, the industry body for mohair in South Africa, has increased its commitment to sustainable mohair by partnering with scientific traceability company, Oritain.

South Africa currently produces approximately 50% of the world’s mohair, accounting for nearly 30,000 jobs for local South Africans.

Read more HERE.

Monday, October 19, 2020

Maine fabrics manufacturer accuses Belarus of ‘dumping’ in U.S. market

Kathie Leonard, president and CEO of Auburn Manufacturing Inc., said the dumping – selling products in the U.S. at a very low price, sometimes below the cost of production, to capture market share from domestic companies – is hurting her company as she tries to deal with the business impact of the coronavirus pandemic. It also comes just after Auburn Manufacturing successfully fought off dumping of the same products by China.

Read more in the Press Herald.

Army T-Shirt Contract Awarded to National Industries for the Blind

The National Industries for the Blind, Alexandria, Virginia, has been awarded a maximum $8,728,339 modification (P00008) exercising the second one-year option period of a one-year base contract (SPE1C1-19-D-B043) with four one-year option periods for moisture wicking t-shirts. This is an indefinite-delivery contract. Locations of performance are Virginia, North Carolina, and Arkansas, with an Oct. 30, 2021, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency, Troop Support, Philadelphia, Pennsylvania.

Thursday, October 15, 2020

CBP Detains Shipment of Chinese Apparel Suspected to be Made with Forced Labor in Xinjiang

In September, CBP personnel at the LA/LB Seaport detained a shipment of women's leather gloves suspected to be made with forced labor.LOS ANGELES — U.S. Customs and Border Protection (CBP) personnel at the Los Angeles/Long Beach Seaport detained a shipment containing 32 cartons of women’s leather gloves suspected to have been manufactured using forced labor. The shipment originated in China’s Xinjiang Uyghur Autonomous Region, where the Chinese government is engaging in systemic human rights abuses against the Uyghur people and other ethnic and religious minorities.

CBP detained the shipment in September in accordance with a Withhold Release Order (WRO) on apparel manufactured by Yili Zhuowan Garment Manufacturing Co., Ltd. and Baoding LYSZD Trade and Business Co., Ltd. That WRO was the product of a months-long CBP investigation that identified forced labor indicators at Yili Zhuowan and Baoding manufacturing sites including the restriction of movement, isolation, intimidation and threats, withholding of wages, and abusive working and living conditions.

“The Trump administration is taking decisive action to combat the brutal practice of forced labor and counteract China’s unfair trade practices,” said CBP Acting Commissioner Mark A. Morgan. “Forced labor not only subjects workers to violence and intimidation, but it also hurts U.S. businesses and the economy.”

Federal statute 19 U.S.C. 1307 prohibits the importation of merchandise mined, manufactured, or produced, wholly or in part, by forced labor, including convict labor, forced child labor, and indentured labor. CBP issues WROs to direct personnel at ports of entry to detain shipments of goods reasonably suspected to have been made by forced labor. Importers of record have three months to re-export detained shipments or to submit proof to CBP that the merchandise was not produced with forced labor.

A CBP Officer at the LA/LB Seaport inspects a shipment of leather gloves suspected to have been made with forced labor in Xinjiang, China.Imported goods made with forced labor create unfair competition for U.S. companies that respect human rights and fair labor standards. All importers operating in the United States are responsible for ensuring that their supply chains are free of forced labor and that the origin and quality of their merchandise align with the laws and principles established by the U.S. Government.

“CBP will not tolerate modern slavery in U.S. commerce,” said Brenda Smith, Executive Assistant Commissioner of the CBP Office of Trade. “We expect every U.S. importer to ensure that its supply chains are free of forced labor.”

In Fiscal Year 2020, CBP issued an unprecedented 13 WROs, including eight on goods from China. Recent CBP WROs have encouraged entities to address concerns about forced labor in their tobacco, gold>, and seafood supply chains, among others. CBP publishes all WROs to its Forced Labor Withhold Release Orders and Findings web page.

CBP receives allegations of forced labor from a variety of sources, including from the public. Any person or organization that has reason to believe merchandise produced with the use of forced labor is being, or likely to be, imported into the U.S. can report detailed allegations by contacting CBP through the e-Allegations Online Trade Violation Reporting System or by calling 1-800-BE-ALERT.

GUIDANCE: Caribbean Basin Trade Partnership Act (CBPTA) Renewal with Procedures for Retroactive Duty Refunds

The purpose of this guidance is to inform the Trade of the renewal of the Caribbean Basin Trade Partnership Act (CBTPA) and to provide information on the procedures for requesting a refund of duties paid during the lapse.

CBTPA Renewed

On Saturday, October 10, 2020, the President signed bill H.R. 991, the “Extension of the Caribbean Basin Economic Recovery Act,” extending CBTPA for goods entered or withdrawn from warehouse for consumption from October 1, 2020 through September 30, 2030.

Requesting Duty Refund

Additionally, this bill allows for the refund of duties paid by the importer on CBTPA-eligible goods entered during the lapse period, October 1, 2020 through October 14, 2020.

Importers may file a Post Summary Correction (PSC) requesting a refund of duties paid on goods that were eligible for CBTPA during the lapsed period. The PSC must be filed in a timely manner. If an entry has already liquidated, the refund request may be submitted as a protest. (19 USC 1514, 19 CFR 174).

Filing CBTPA Claims

On and after October 15, 2020, the Automated Commercial Environment (ACE) will accept CBTPA (special program indicator “R”) claims, as well as the following provisional HTS numbers for textile and apparel goods:

    9820.11.03                 9820.11.06
    9820.11.09                 9820.11.12
    9820.11.15                 9820.11.18
    9820.11.21                 9820.11.24
    9820.11.27                 9820.11.30
    9820.11.33                 9802.00.8044

Post-Importation CBTPA Claims on Importations Prior to Expiration

Importations made on or before September 30, 2020, remain unaffected by the aforementioned instructions. Importers may continue to make post-importation CBTPA claims in accordance with applicable PSC and protest procedures (19 USC 1514, 19 CFR 174).

CBP proposed revocation of one ruling letter and revocation of treatment relating to the tariff classification of foil print fabric.

On October 14, 2020, (Customs Bulletin Vol. 54, No. 40, beginning on page 17) CBP proposed revocation of one ruling letter and revocation of treatment relating to the tariff classification of foil print fabric.

In Binding Ruling Letter NY N267195, U.S. Customs and Border Protection classified foil print fabric in heading 6004, HTSUS, specifically in subheading 6004.10.85, HTSUS, which provides for “Knitted or crocheted fabrics of a width exceeding 30 cm, containing by weight 5 percent or more of elastometric yarn or rubber thread, other than those of heading 6001: Containing by weight 5 percent or more of elastometric yarn but not containing rubber thread, Other.” CBP has reviewed NY N267195 and has determined the ruling letter to be in error. It is now CBP’s position that foil print fabric is properly classified, in heading 5903, HTSUS, specifically in subheading 5903.90.25, HTSUS, which provides for “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: Other: Of man-made fibers: Other: Other.”

The provisions relating to Coated Textiles Classified in Chapter 59 of the Harmonized Tariff Schedule of the United States And Articles Thereof have been the subject of many rulings, reversal of ruling, and even litigation. >Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can learn more at http://agathonassociates.com/textile-pri/coated-textiles/index.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.