Thursday, May 30, 2013

Bill Filed to Make Luggage and Travel Goods Eligible for GSP

On May 23, 2013, Representative Ander Crenshaw, Republican, from Florida's 4th Congressional District which runs from Jacksonville to Tallahassee, hugging the Georgia border most of the way, filed a bill (H.R.2139) to make certain luggage and travel articles eligible for duty-free treatment under the Generalized System of Preferences. The bill is co-sponsored by Representative Adrian Smith, Republican, whose district, Nebraska's third, encompasses the western three-fourths of that state.

The Generalized System of Preferences ("GSP") promotes economic development in developing and least-developed countries, however certain "import sensitive" articles, such as textiles, apparel, and luggage or travel articles and classified under chapter 42 of the Harmonized Tariff Schedule of the United States may not be designated as eligible articles for GSP. Sponsors of H.R.2139 maintain that global trade and manufacturing dynamics have changed since the enactment of the Generalized System of Preferences in 1974, and many luggage and travel articles may no longer be import-sensitive to industries in the United States.

According to the sponsors, 73 of the 132 countries designated as beneficiary developing countries under GSP export articles classified under heading 4202 (luggage and travel goods) of the Harmonized Tariff Schedule of the United States to the United States. Twenty of those countries have been designated as least-developed beneficiary developing countries for purposes of the Generalized System of Preferences. They also note that the People's Republic of China has a nearly 80 percent share of the market for certain luggage and travel articles being imported into the United States. This dominance, they assert, leaves little room for competition from smaller developing countries, citing data showing that countries designated as beneficiary developing countries under GSP account for merely 5 percent of imports of those articles into the United States.

The bill would allow GSP designation for:

SubheadingBrief DescriptionDuty
4202.11.00Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers with outer surface of leather or of composite leather8%
4202.12.40Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels and similar containers with outer surface of cotton (not of pile or tufted construction)6.3%
4202.21.60Handbags, whether or not with shoulder strap, including those without handle, with surface of leather or composition leather (not reptile), valued not over $20 each10%
4202.21.90Handbags, whether or not with shoulder strap, including those without handle, with surface of leather or composition leather (not reptile), valued over $20 each 9%
4202.22.15Handbags, whether or not with shoulder strap, including those without handle, with outer surface of sheeting of plastic16%
4202.22.45Handbags, whether or not with shoulder strap, including those without handle, with outer surface of cotton (not pile or tufted construction)6.3%
4202.31.60Articles of a kind normally carried in the pocket or in the handbag, with outer surface of leather or composition leather (not reptile)8%
4202.32.40Articles of a kind normally carried in the pocket or in the handbag, with outer surface of cotton (not pile or tufted construction)6.3%
4202.32.80Articles of a kind normally carried in the pocket or in the handbag, with outer surface of vegetable fiber other than cotton (not pile or tufted construction)5.7%
4202.92.15Travel, sports and similar bags, with outer surface of cotton (not pile or tufted construction)6.3%
4202.92.20Travel, sports and similar bags, with outer surface of vegetable fiber other than cotton (not pile or tufted construction)5.7%
4202.92.45 Travel, sports and similar bags, with outer surface of plastic20%
4202.99.90A "basket category" for travel good not elsewhere classified20%
4202.12.2020Trunks, suitcases, vanity cases and similar containers, structured, rigid on all sides, with outer surface of plastics20%
4202.12.2050Trunks, suitcases, vanity cases and similar containers, not structured, not rigid on all sides, with outer surface of plastics 20%
4202.12.8030Attache cases, briefcases, school satchels, occupational luggage cases and similar containers, of man-made fibers17.6%
4202.12.8070Trunks, suitcases, vanity cases and similar containers, of man-made fibers17.6%
4202.22.8050Handbags, whether or not with shoulder strap, including those without handle, of man-made fibers17.6%
4202.32.9550Articles of a kind normally carried in the pocket or in the handbag, of man-made fibers17.6%
4202.32.9560Articles of a kind normally carried in the pocket or in the handbag, of textile fibers other than cotton or man-made17.6%
4202.91.0030Travel, sports and similar bags, of leather or composition leather4.5%
4202.91.0090A "basket category" for other bags of leather or composition leather4.5%
4202.92.3020Backpacks of man-made fibers17.6%
4202.92.3031A "basket category" for other man-made fiber bags17.6%
4202.92.3091A "basket category" for textile bags other than cotton or man-made fiber17.6%
4202.92.9026A "basket category" for other cases with man-made fiber covering17.6%
4202.92.9060A "basket category" for other textile covered cases17.6%

Wednesday, May 29, 2013

Vive La Fete Recalls Children's Pajamas Due to Violation of Federal Flammability Standard

WASHINGTON, D.C.-Consumers should stop using this product, which is being recalled voluntarily, unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Recall Summary

Name of product: Children's two-piece pajama sets

Hazard: The pajamas fail to meet federal flammability standards for children's sleepwear, posing a risk of burn injuries to children.

Remedy: Refund

Consumer Contact: Vive La Fete at (800) 535-7396 from 9 a.m. to 6 p.m. ET Monday through Friday, online at www.vivelafete.com and click on Product Recall at the bottom of the page under the Shopping With section.

Photos available at: http://www.cpsc.gov/en/Recalls/2013/Vive-La-Fete-Recalls-Childrens-Pajamas/.

Units: About 710

Description: This recall involves Vive La Fete children's cotton or cotton/polyester two-piece pajama sets with style numbers HSH158BPL and HSH159BPL. They were sold in children's sizes 6 months through size 12. They consist of a long-sleeve shirt with collar and buttons paired with matching full-length pants with elastic waistband. Pajama set style HSH158BPL is blue with a white snowflake pattern. Pajama set style HSH159BPL is red and white gingham checkered pattern. The style number is printed on a white label located on the garments hangtag. There are two tags sewn into the neckline. "VIVE LA TE" is printed on the top tag. The garment size and fiber content with the phrases "CARE ON REVERSE" and "MADE IN EL SALVADOR" are printed on the bottom tag.

Incidents/Injuries: None reported

Sold at: Boutiques, children's specialty stores nationwide and online at www.vivelafete.com from September 2012 to January 2013 for about $40.

Importer: Vive La Fete Inc., of Miami

Manufactured in: El Salvador

Representatives of European Textile Industry to Meet with Consumer Product Safety Commission in Washington

On Thursday, June 6, U.S. Consumer Product Safety Commission staff Dean W. Woodard, Director, Office of Education, Global Outreach, and Small Business Ombudsman, Consumer Product Safety Commission, Richard O'Brien, Director of International Programs and Tom Phillips will meet with senior Executives of Euratex, the European apparel and textile confederation. Representing EURATEX will be Mr. Francesco Marchi, Director General, and Ms. Luisa Santos, Trade and Industry Manager. The meeting was requested by Ms. Santos. The meeting will be held on June 6, 2013 at 10:00 a.m. in the CPSC's executive offices. For additional information, please contact Dean W. Woodard at 301 504-7651 or dwoodard@cpsc.gov.

CPSC's Adler to Meet with Executive Director of Green Science Policy Inst. on Flammability

On Monday, June 17, U.S. Consumer Product Safety Commissioner Robert Adler and counsel have a meeting scheduled with Dr. Arlene Blum, Executive Director, Green Science Policy Institute to discuss flammability standards and health, smolder and open flame standards, and an update on the California standard's progress. The meeting was requested by Dr. Blum. For additional information contact Ophelia McCardell, (301) 504-7731.

AAFA Releases Revised Voluntary Product Environmental Profile as Industry Compliance Tool

The Voluntary Product Environmental Profile ("VPEP") is a supplier disclosure form that allows suppliers and buyers to easily exchange vital information on the chemical makeup of products and the environmental impact of apparel and textile products and processes. Developed by a group comprising of dyestuff and chemical suppliers, apparel and textile manufacturers, and professional staff of academic institutions and trade associations representing the chemical, dyestuff, and apparel and textile industries, VPEP can be used by apparel and textile companies and chemical suppliers to facilitate the efficient exchange of information necessary to make decisions regarding the environmental impact of textile products and processes.

VPEP was originally released to the public several years ago by the National Textile Association (which since then has merged with the National Council of Textile Organizations). The American Apparel and Footwear Association ("AAFA") has adopted the project and updated the form in 2013. While the use of VPEP is completely voluntary, it is preferred and has been widely implemented by many major companies in the chemical and textile industries.

For more information and for a downloadable version of the VPEP, please visit the AAFA website at https://www.wewear.org/industry-resources/voluntary-product-environmental-profile/.

Tuesday, May 28, 2013

DR-CAFTA Short Supply Petition Filed Relating to Certain Warp Stretch Woven Nylon/Rayon/Spandex Fabric

The Committee for the Implementation of Textile Agreements ("CITA") is considering a Commercial Availability Request for a certain warp stretch woven nylon/rayon/spandex fabric, file number: 179.2013.05.23.Fabric.GDLSKforPCATextiles. The Request was filed by Grunfeld Desiderio Lebowitz Silverman Klestadt on behalf of PCA Textiles.

Responses should include information that demonstrates a responder's claim that it has the capability to produce the subject product, or one substitutable, in commercial quantities in a timely manner. Responses should include all requested information as well as any other information the responder views as relevant to CITA's final determination. Responses are due by 11:59 P.M. (EST), June 7, 2013. Rebuttals are due by 11:59 P.M. (EST), June 13, 2013.

The request is available on the CITA website at http://web.ita.doc.gov/tacgi/CaftaReqTrack.nsf/92c0917eb2bd98d9852570fc006bde74/e183060b406c24fe85257b7400629e45/$FILE/Commercial%20Availability%20Request_%20Warp%20Stretch%20Woven%20Rayon%20Nylon%20Spandex%20Fabric-v%202.pdf.

US-EU Free Trade Agreement: What Will it Mean for Technical and Industrial Textiles.

In his recent guest commentary for BeaverLake6 Report, David Trumbull interviews Dr. Wolf-Rüdiger Baumann, Director General, Confederation of the German Textile and Fashion Industry, and raises topics of interest to American and European producers of technical, specialty, and industrial textiles in the context of the recently announced plans to negotiate a U.S.-E.U. free trade agreement. The commentary addresses, among other things, non-tariff barriers (regulations, procedures, and standards) on both sides of the Atlantic which add nearly 20% to the cost of trans-Atlantic trade. It gives special emphasis to the U.S. requirements for domestic sourcing of certain Department of Defense and Department of Homeland Security textile and clothing acquisitions. These rules, known as the Berry Amendment and Kissell Amendment, have been targeted by the European textile industry as non-tariff barriers to be negotiated away in the proposed agreement. For the full text of the article, go the the BeaverLake6 Report at http://www.beaverlake6.com/columns-and-blogs/commentary-by-david-trumbull/.

TPP Negotiaton Round in Peru Completed, Next Round Scheduled for Malaysia, July 15-25

The Office of the United States Trade Representative reports that at the 17th round of Trans-Pacific Partnership ("TPP"), a 10-day round that ended last Friday, the United States and the other TPP countries – Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam – discussed plans for smoothly integrating Japan into the TPP negotiations. Japan will join the negotiations following the successful completion of current members’ respective domestic processes. With Japan’s entry, TPP countries will account for nearly 40 percent of global GDP and about one-third of all world trade.

On May 19th, the TPP negotiations were temporarily suspended so negotiators could meet with the 300 stakeholders from the United States and other TPP countries. Stakeholders presented views to negotiators on a wide range of issues under discussion in the TPP, and met informally with U.S. and other negotiators to provide further input to them. Barbara Weisel, U.S. chief TPP negotiator, and the chief negotiators from the other 10 countries also briefed stakeholders on the status of the negotiations and responded to their questions on specific issues and the process going forward.

The 18th round of TPP negotiations will be held in Malaysia from July 15th-25th.

Thursday, May 23, 2013

Agathon Associates to Close Monday in Observance of Memorial Day

Agathon Associates will be closed Monday in observance of Memorial Day, a United States federal holiday which occurs every year on the last Monday of May. Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces. Readers of the Textiles and Trade Blog who do business in the United Kingdom should also note the the last Monday of May is the Spring Bank Holiday in the United Kingdom.

In much of the United States, Memorial Day marks the beginning of summer. The "three day weekend" created by the Monday holiday is enjoyed with cookouts, trips to the beach and other leisure activities as will as parades and public ceremonies honoring those who died in service of the nation.

POST-GAZETTE - Res Publica
The Story of Taps
by David Trumbull -- May 24, 2013

This Memorial Day we remember and honor the men and women who died to preserve our freedom. Even as we enjoy kicking off summer however we chose this weekend, that is itself a testimony to their sacrifices, for we enjoy the cookouts, trips to the beach, and so forth because they made it possible. We especially honor those who died for our country when we decorate their graves or participant in patriotic parades and ceremonies this weekend.

At those solemn memorial events in our towns and cities, in our churches and synagogues, and in the halls of our veterans or other lodges, a familiar, haunting melody will mark the day --

The familiar bugle call "Taps" is generally believed to be based on a traditional French call to curfew (from Middle English "curfeu," from Old French "cuevrefeu," meaning cover the fire and turn in for the night).

According to the United States Department of Veterans Affairs the version of those 24 melancholy notes that we know from military funerals was crafted during America's Civil War by Union General Daniel Adams Butterfield, heading a brigade camped at Harrison Landing, Va., near Richmond. This music was made the official Army bugle call after the war, but not given the name "taps" until 1874.

The same Veterans Affair internet resource, http://www1.va.gov/opa/publications/celebrate/taps.pdf, states that: "The first time taps was played at a military funeral may also have been in Virginia soon after Butterfield composed it. Union Capt. John Tidball, head of an artillery battery, ordered it played for the burial of a cannoneer killed in action. Not wanting to reveal the battery’s position in the woods to the enemy nearby, Tidball substituted taps for the traditional three rifle volleys fired over the grave. Taps was played at the funeral of Confederate Gen. Stonewall Jackson 10 months after it was composed. Army infantry regulations by 1891 required taps to be played at military funeral ceremonies."

Taps now is played by the military at burial and memorial services, to accompany the lowering of the flag, and to signal the "lights out" command at day's end.

Nourison Recalls Rugs Due to Fire Hazard; Sold Exclusively at Home Depot

Recall Details

Units: About 1,400

Description: This recall involves Nourison-branded I-CANDI collection polyester shag rugs. They were sold in one color, denim, consisting of a mix of dark blue, light blue and grey shades. The rugs measure 5-by 7-feet and 7-feet 6-inches by 9-feet 6-inches. “ICANDI COLLECTION” and “Nourison” are printed in black on a label affixed to the back of the rug.

Incidents/Injuries: None reported.

Remedy: Consumers should immediately stop using the recalled rugs and contact Nourison for instructions on how to return the rug for a full refund or replacement, including shipping.

Sold exclusively at The Home Depot stores in the following regions: Washington D.C.; San Diego, Calif.; San Francisco, Calif.; Las Vegas, Nev. and Houston, Texas in September 2012 for between $179 and $389.

Importer: Nourison Industries Inc., of Saddle Brook, N.J.

Manufactured in China.

For more information go to http://www.cpsc.gov/en/Recalls/2013/Nourison-Recalls-Rugs/

Wednesday, May 22, 2013

Representatives of European Textile Industry to Meet with Consumer Product Safety Commission in Washington

On Thursday, June 6, U.S. Consumer Product Safety Commission staff Dean W. Woodard, Director, Office of Education, Global Outreach, and Small Business Ombudsman, Consumer Product Safety Commission, Richard O'Brien, Director of International Programs and Tom Phillips will meet with senior Executives of Euratex, the European apparel and textile confederation. Representing EURATEX will be Mr. Francesco Marchi, Director General, and Ms. Luisa Santos, Trade and Industry Manager. The meeting was requested by Ms. Santos. The meeting will be held on June 6, 2013 at 10:00 a.m. in the CPSC's executive offices. For additional information, please contact Dean W. Woodard at 301 504-7651 or dwoodard@cpsc.gov.

Granite State Textile Company Wins Army Body Armor Contract

Warwick Mills Inc., New Ipswich, N.H., was awarded a firm-fixed-price, multi-year contract with a maximum value of $94,324,536 for the procurement of the Family of Concealable Body Armor Type-1 and Type-2 vest and outer covers. Performance location and type of appropriation will be determined with each order. The bid was solicited through the Internet, with five bids received. The Army Contracting Command, Aberdeen Proving Ground, Md., is the contracting activity (W91CRB-13-D-0010).

Court of International Trade Rules for Victoria's Secret, Overturns Customs Classification of "Bra Top"

The U.S. Court of International Trade ruled May 1, 2013 (Victoria's Secret Direct LLC v. United States, Ct. Int'l Trade, No. 07-00347 (Slip Op. 13-55), 5/1/13) that U.S. Customs and Border Protection erred in classifying a Victoria's Secret "bra top" as a "tank top" or similar article (Harmonized Tariff Schedule of the United States ("HTSUS") classification 6109.10.00) with a rate of import duty of 16.5 percent ad valorum.

The garment in question is a women's garment made of predominantly-cotton knitted fabric and containing an interior fabric insert marketed as a "shelf bra." The garment, Victoria’s Secret style number 194–423, was marketed under the description "Bra Top." It is worn on the upper body, has narrow straps, and has no shoulder or neck coverage.

Victoria's Secret claimed classification of the Bra Top as a "brassiere" or similar article (HTSUS 6212.90.00, rate of duty 6.6%) or, in the alternative, under a residual provision for other garments of cotton, knitted or crocheted (HTSUS 6114.20.00, rate of duty 10.8%).

The following uncontested facts were agreed to by the parties:

  1. The marketing name for Victoria’s Secret style 194–423 is the "Bra Top."
  2. The commercial invoice describes the Bra Top as "ladies knit sleeveless basic tank 3 pack with shelf bra tank top 95 pct cotton 5 pct spandex)."
  3. The Bra Top is made of knit fabric that is 95% cotton and 5% spandex.
  4. The Bra Top is an upper body garment.
  5. The Bra Top contains a "built-in shelf bra for hidden support" consisting of an inner layer of fabric that covers the bust of the wearer.
  6. The built-in shelf bra is attached solely at the top of the garment, the bottom of the shelf bra not being attached to the outside fabric layer of the garment.
  7. The built-in shelf bra has an elastic band attached to the bottom that is designed to be worn under the bust of the wearer.
  8. The shelf bra is intended to be form-fitting over the bust and to change the natural shape of the breasts of the wearer.
  9. The Bra Top has 3/8 inch straps that go over the top of the wearer's shoulders.
  10. Victoria’s Secret's marketing website describes Bra Tops as "[s]exy scoopneck tops with built-in shelf bra for hidden support. Three tops, three colors, one great price. Imported cotton."
  11. The Bra Top is sold in sizes XS (extra small) through XL (extra large).

The Court found:

1. The Bra Top Is Not Properly Classified under Heading 6109, HTSUS.

The article description for heading 6109 is "T-shirts, singlets, tank tops and similar garments, knitted or crocheted." The Bra Top is a knitted "garment," but it is not one of the garments named in the heading and is not of a type that was intended to be included within the heading as a garment "similar" to the named garments.

The "identity" or "essential characteristic" of the garments identified eo nomine in heading 6109 is that of undershirts (in British English, "vests") and adaptations of undershirts for outerwear, such as T-shirts, which are considered garments "of the vest type." Due to the bust support function it provides, the Bra Top does not have the identity or essential characteristic of an undershirt or "vest" as do other outerwear articles classified under the heading, such as outerwear T-shirts and singlets for athletic wear. But even if the court were to presume, arguendo, that the Bra Top has the "identity" or "essential characteristic" of a "tank top," that presumption does not resolve the question before the court, which is the proper scope of heading 6109 as defined by the terms therein. Defendant’s "identity" and "essential characteristic" arguments are not persuasive because garments providing bust support were not intended for inclusion within heading 6109, [because] the HS nomenclature does not consider women's undergarments worn on the upper part of the body and providing bust support, such as corsets, brassieres and similar such undergarments, to be properly described as undershirts or vests. These types of women's undergarments are described by the terms of HS subheading 62.12.

2. The Bra Top Is Not Properly Classified under Heading 6212, HTSUS.

Plaintiff claims classification of the Bra Top under heading 6212 ("Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted"). The court disagrees, concluding that the Bra Top is not described by any term within that heading. The court’s research has not found a standard dictionary definition of the term "brassiere" to which the Bra Top conforms, and plaintiff offers none. The facts as found by the court are sufficient to demonstrate that the shelf bra component of the Bra Top is similar in construction and purpose to some types of brassieres, notably "soft-cup" brassieres with a single cup and an elastic underbust band. Those same facts do not allow the court to conclude that the Bra Top on the whole is "similar" to a brassiere or to any other garment or article named in the heading.

3. The Bra Top Is Properly Classified under Heading 6114, HTSUS.

The court determines that heading 6114, HTSUS is the correct heading for classification of the Bra Top. This heading includes the term "[o]ther garments, knitted or crocheted." The Bra Top is a knitted garment. [H]eading 6114 is a residual provision that "covers knitted or crocheted garments which are not included more specifically in the preceding headings of this Chapter [6101–6113]." The Bra Top is not described by the terms of any heading in the group 6101–6113.

4. The Bra Top Is Properly Classified in Subheading 6114.20.00, HTSUS.

The only remaining question is the determination of the appropriate subheading under heading 6114. Plaintiff ’s alternate classification claim is under subheading 6114.20.00, the court agreed.

Tariff classification and status under DR-CAFTA, of women's tank tops from Guatemala.

A recent U.S. Customs and Border Protection Binding Ruling Letter (Ruling N241113, May 17, 2013), on the tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement ("DR-CAFTA"), of women's tank tops from Guatemala illustrates the complexity of both current global apparel sourcing practices and U.S. Customs regulations.

A manufacturing who understood the Customs regulations and arranged his global sourcing accordingly saved 16.5% in tariff cost while sourcing some of his spandex and knit fabric globally.

The item in question is a woman’s tank top. The garment is constructed from two fabrics. The upper back and shoulder straps are constructed of 90 percent nylon and 10 percent spandex lace like knit fabric. The front panel, lower back panel and capping are constructed of 98 percent cotton and 2 percent spandex rib knit fabric. The garment features a scooped front neckline, a racer style back neckline, 1-1/4 inch wide shoulder straps, self-fabric capping around the neckline and armholes and a hemmed bottom. The garment extends from the shoulders to below the waist but not to mid-thigh.

Because the garment is constructed of two different fabrics, Customs applies Harmonized Tariff Schedule of the United States ("HTSUS") General Rule of Interpretation ("GRI") 3(b), which states that garments will be classified by the component which gives them their essential character. Customs determines, in this case, that the cotton/spandex component of the garment imparts the essential character to the garment. With that settled, Customs determines that the applicable subheading will be HTSUS 6109.10.0060, which provides for T-shirts, singlets, tank tops and similar garments, knitted or crocheted: Of cotton: Women’s: Tank tops: Women’s. The duty rate is 16.5% ad valorem.

The manufacturing operations are as follows:

  • The cotton/spandex fabric: The yarn is produced in the United States or a DR-CAFTA country; the fabric is knitted in Guatemala.

  • The nylon/spandex lace-like open work fabric is manufactured in China.

  • The spandex yarn used in the lace like fabric is produced in Asia.

  • spandex in the rib knit fabric is formed and finished in the United States.

  • sewing thread is manufactured in Honduras.

  • fabrics are cut, sewn and assembled in Guatemala.

  • garment is exported directly from Guatemala to the U.S.

General Note ("GN") 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that:

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—

(i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;

(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or

(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.

As the good contains non-originating materials, it would have to undergo an applicable change in tariff classification in order to meet the requirements of GN 29(b)(ii)(A). General Note 29 (n), Chapter 61, Chapter rule 2 states:

For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in that rule for that good.

The component that determines the classification is the cotton/spandex rib knit fabric. Since it is determined to be originating, it does not need to meet the terms of the tariff shift.

GN 29(d)(i), HTSUS, also states in pertinent part,

A textile or apparel good containing elastomeric yarns in the component of the good that determines the classification of the good shall be considered to be originating good only if such yarns are wholly formed in the territory of the party to the Agreement.

The elastomeric yarn in the component that determines the classification is formed and finished in the United States.

General Note 29 (n), Chapter 61, Chapter rule 4 states:

Notwithstanding chapter rule 2 to this chapter, a good of this chapter containing sewing thread of headings 5204, 5401 and 5508 shall be considered originating only if such sewing thread is both formed from yarns and finished in the territory of one or more of the parties to the Agreement.

The sewing thread used to assemble both garments will be formed and finished in one or more of the parties to the Agreement.

Based on the facts provided, Customs ruled that the tank tops qualify for DR-CAFTA preferential treatment, because they meet the requirements of HTSUS General Note 29(b)(ii)(A). The merchandise will be entitled to a free rate of duty under the DR-CAFTA.

Monday, May 20, 2013

Australia's Woolmark Seeks to Expand Wool Textile Industry in Vietnam

The Woolmark Company anticipates its Out of Vietnam project will generate growth in the Vietnam wool processing industry, resulting in increased demand for Australian Merino wool, according to a Woolmark report released this spring. To see the full story go to http://www.woolmark.com/out-of-vietnam2. Note this quotation:
"We have already expanded from the initial flat-bed knitting sector and have introduced circular knits, socks and accessories to the project. We are also in the process of setting up a supply chain with the weaving sector to make men’s suits and separates."

Changes to Rules and Regulations Under the Textile Fiber Products Identification Act

Today the U.S. Federal Trade Commission published in the Federal Register (78 FR 29263) a notice of proposed rulemaking amending the rules and regulations under the Textile Fiber Products Identification Act ("Textile Rules") to:

  • Incorporate the updated ISO standard 2076:2010(E);

  • allow certain hang-tags that do not disclose the product's full fiber content information;

  • better address electronic commerce by amending the definition of the terms invoice and invoice or other paper;

  • update the guaranty provisions by, among other things, replacing the requirement that suppliers provide a guaranty signed under penalty of perjury with a certification that must be renewed annually, and revising accordingly the form used to file continuing guaranties with the Commission under the Textile, Fur, and Wool Acts; and

  • clarify several other provisions.

The Commission seeks comment on these proposals and several remaining issues. Written comments must be received on or before July 8, 2013. The Commission received 17 comments in response to the advance notice of proposed rulemaking in November 2011. The comments indicated widespread support for the Textile Rules. For example, the joint comment of eight textile trade associations ("joint comment") stated that the use of labels on textiles and apparel benefits consumers and businesses. The comments are posted at http://www.ftc.gov/os/comments/textilerulesanpr/index.shtm.

In connection with fiber content disclosures, the joint comment and six others supported amending section 303.7 to incorporate the revised ISO standard for man-made fiber names, ISO 2076:2010(E). Six also requested that the Commission clarify provisions relating to fiber content disclosures for trimmings and ornamentation. In addition,vthe joint comment and three others requested that the Commission modify fiber content disclosure requirements when fiber trademarks or fiber performance characteristics appear on hang-tags and other point-of-sale materials.

Two comments recommended amendments to the Textile Act. Bureau Veritas recommended revising the Textile Act to allow for the naming of fibers present in amounts less than 5% regardless of whether the fibers have a structural significance. Adam Varley recommended adding yak fibers to the definition of wool under the Act, which also would require an amendment to the Wool Act because the definition of wool comes from the Wool Act. Neither commenter provided evidence that the benefits of the proposed amendments, which would require new legislation, would exceed their costs.

Based on the record and the Commission's experience, the Commission proposes several amendments as explained below. The Commission also explains why it declines to propose several other amendments.

A. Fiber Content Disclosures

The Commission proposes the following amendments to the Rules' fiber content disclosures: (1) Revising section 303.7 to incorporate the updated ISO standard establishing generic fiber names for manufactured fibers; (2) clarifying section 303.12(a) concerning disclosures involving trimmings; (3) revising section 303.17(b) to allow certain hang-tags disclosing fiber names and trademarks, and performance information, without disclosing the product's full fiber content; and (4) clarifying section 303.35, describing products containing virgin or new wool, and sections 303.41 and 303.42, addressing fiber content disclosures in advertising. This section also explains why the Commission declines to propose certain amendments relating to fiber content advocated by comments.

1. International Standards and Regulations

The Commission proposes to amend the Rules to incorporate the revised ISO standard for man-made fiber names. The Commission, however, declines to propose any amendments to further align the Rules with textile regulations in other countries.

(a) The Updated ISO Standard for Man-Made Fiber Names

Section 303.7 (generic names and definitions for manufactured fibers) establishes the generic names for manufactured fibers to be used in the fiber content disclosures required by the Textile Act and Rules. This section establishes such names in two ways. First, it includes the generic names and definitions that the Commission has established through its textile petition process. Second, it establishes through incorporation by reference the generic names and definitions set forth in the ISO standard entitled "Textiles--Man-made fibres--Generic names," 2076:1999(E). Since the Commission incorporated ISO 2076:1999(E) into section 303.7 in 2000, the ISO standard has been updated, and is now identified as ISO 2076:2010(E).

The comments expressed strong support for modifying section 303.7 to incorporate the revised international standard for man-made fiber names. The joint comment noted that the ISO standard benefits businesses by establishing an international consensus that removes unnecessary barriers to trade. USA-ITA stated that the ISO standard helps its members develop labeling that satisfies the requirements of multiple countries. AAFA noted that the ISO standard would reduce Customs challenges. NRF stated that the Commission's adoption of the ISO standard would help forestall nationally-biased standards that often create barriers to trade and hinder efficient supply-chain management. C&R supported the modification as a way of addressing frequent inquiries from retailers, manufacturers, and brand companies relating to the standard.

Easing barriers to trade was one of the reasons for incorporating the previous version of the international standard into section 303.7 and remains an important priority for the Commission. Incorporating the updated standard would further this goal by permitting more internationally-recognized fiber names. In addition, updating the Rules would promote efficiency by reducing the need for industry members to petition the Commission to recognize new fiber names on a piecemeal basis. Accordingly, the Commission proposes to amend section 303.7 to incorporate the revised ISO standard ISO 2076:2010(E), "Textiles--Man-made fibres--Generic names."

The Commission notes that section 303.7 and the revised ISO standard define certain fiber names slightly differently. For example, section 303.7 includes elasterell-p as a subclass of polyester, while the ISO standard includes elasterell-p as an alternate name for elastomultiester. Similarly, section 303.7 includes lastol as a subclass of olefin, while the ISO standard includes lastol as an alternate name for elastolefin. The comments do not suggest that these differences present an obstacle to incorporating the ISO standard into section 303.7 or warrant any other amendments to that section. However, the Commission seeks comment on whether these differences present any problems and, if so, how the Commission should address them.

USA-ITA recommended that the Commission further amend section 303.7 to automatically incorporate future changes to the ISO standard to eliminate the need to amend section 303.7 each time the standard changes. However, the Textile Act directs the Commission to establish the generic names of manufactured fibers. Pursuant to this responsibility, the Commission cannot preapprove generic names that may be added to the ISO standard in the future. Nor can the Commission delegate its responsibility to establish fiber names to a standard setting organization such as the ISO. The Commission therefore declines to propose this amendment.

(b) International Regulations

To further ease trade barriers, the comments supported harmonizing the Textile Rules with regulations of other countries. USA-ITA stated that differing national labeling requirements inhibit U.S. companies from selling textile products in international markets, and suggested that the Commission consider recognizing international labeling requirements. CAF stated that the review of the Textile Rules is an excellent opportunity for the U.S. and Canada to harmonize labeling requirements. In addition, IKEA recommended that the FTC consider European Union Regulation (EU) No 1007/2011, and "align the US rules to the new EU regulation as much as possible, especially in regards to accepted fiber names and tolerances for fiber content." The comments promoting harmonization were very general and either did not discuss how the Commission should change the Textile Rules to further reduce barriers to trade, or did not discuss how specific international labeling requirements relate to the requirements of the Textile Rules or whether they are consistent with the Textile Act. The Commission declines to propose aligning the Textile Rules more closely with EU regulations. The Rules and EU regulations already substantially overlap. Specifically, all but five of the generic fiber names for man-made fibers in the EU regulations also appear in the proposed Rules. With respect to fiber tolerances (i.e., permissible deviations from specified fiber percentages), the Rules already allow the same tolerance as the EU regulations for textile products containing multiple fibers.

Additionally, the record does not support further harmonization. For example, it does not address whether differences between the Rules and EU regulations create problems for industry, or whether the benefits of further harmonization exceed the costs. Moreover, unlike the unanimous support for incorporating the latest ISO standard, which reflects a long-standing international consensus, further harmonization with the EU regulation was supported by only one commenter. Two comments urged greater international harmonization. One urged greater harmonization generally. The other sought increased consistency between Canadian and United States labeling. Neither, however, proposed specific changes or provided evidence regarding the problems caused by the lack of harmonization. Moreover, neither indicated whether the benefits of further harmonization would exceed the costs.

2. Trimmings and Ornamentation

The Textile Act and Rules exempt trimmings and ornamentation from the fiber content disclosure requirement under certain circumstances, and require that the fiber content disclosure state that it does not apply to trimmings or ornamentation. Six comments stated that the Rules relating to trimmings and ornamentation overlap and create confusion. These comments proposed four amendments and a clarification. The Commission addresses each below. First, Consumer Testing Laboratories recommended that the Commission define ``minor proportion'' in the description of trimmings because "the challenge for the industry is in determining what is considered minor proportion." However, the comment did not propose any particular definition, and it is the experience of the Commission that the absence of a definition of this term has not posed significant problems. Furthermore, the limited inquiries received by the Commission regarding this phrase indicate that its application to particular textile products is fact-specific, and that the phrase allows necessary flexibility. In addition, none of the other comments urged the Commission to address this issue. Therefore, the Commission declines to propose amending this section to define "minor proportion." The Commission notes that interested parties may seek advice from Commission staff, or consult educational materials published by the Commission.

Second, USA-ITA recommended that the Commission amend section 303.12 to clarify that elastic material is not a "finding" if it exceeds 20 percent of the surface area of a household textile article. The Commission, however, finds that section 303.12 is sufficiently clear. Under section 303.12, trim clearly includes both "findings" and certain elastic material that does not exceed 20 percent of the surface area.\37\ Thus, the Rules are clear that elastic material is not a "finding" or any other type of trim if it exceeds 20 percent of the surface area. In addition, the comments did not present any evidence that the provision has resulted in general confusion. The Commission therefore declines to propose this amendment.

Third, USA-ITA advocated amending the Rules to eliminate the fiber content disclosure for embroidery or other decoration on the interior of garments. Section 303.12(a) does not require a fiber content disclosure for decorative trim, whether applied by embroidery, overlay, applique, or attachment; or decorative patterns or designs which are an integral part of the fabric if the decorative trim or decorative pattern or design does not exceed 15 percent of the surface area of the article. If the embroidery or decoration exceeds this threshold, consumers may well regard the fiber content as material regardless of where it appears in the product. USA-ITA did not present any evidence showing otherwise. The Commission therefore declines to propose this amendment.

Fourth, NRF stated that when a textile product contains trimmings, elastic, and ornamentation, separately disclosing that each of these parts are excluded is excessive and does not provide meaningful information. NRF therefore recommended that the Commission amend the Rules to require only one statement. The Commission declines to propose this amendment because the Rules do not mandate the repetition of the phrase "exclusive of" (e.g., "exclusive of elastic," "exclusive of ornamentation") as NRF suggests. Rather, the Rules do not prohibit and therefore already allow such disclosures to be made in one statement (e.g., "exclusive of elastic and ornamentation").

Fifth, Bureau Veritas stated that where textile decoration is made of the same fiber blend as the fabric to which it is attached, although in different proportions, requiring the phrase "exclusive of decoration" may be unwarranted. Bureau Veritas requested that the FTC clarify the reason for using "exclusive of decoration" in that instance. The Commission notes that the disclosure is necessary because, if the decoration's fiber content differs in proportions from the fabric's fiber content, the fiber content disclosure for the fabric would not accurately describe the decoration's or the garment's fiber content. However, when the fabric's fiber content is the same as the decoration's fiber content, the Commission agrees that the Rules would not require the "exclusive of decoration" statement. The Commission proposes amending section 303.12 to clarify this point.

Although it declines to propose some of these suggested changes, the Commission proposes amending section 303.12 to clarify when the Textile Act and Rules exempt trimmings from fiber content disclosures. As described above, section 303.12 currently describes trimmings and the conditions for exempting trim from disclosure requirements, but does not expressly state that trim is generally exempt. The Commission proposes amending section 303.12 to remedy this omission.

Specifically, the Commission proposes amending section 303.12 to clarify that: (1) Section 12 of the Textile Act exempts trimmings; (2) exempt trimmings do not include decorative trim, decorative patterns and designs, and elastic material in findings that exceed the surface area thresholds described later in section 303.12; and (3) if the fiber content of exempt trimmings consisting of decorative trim or decoration differs from the fabric's fiber content, the fiber content of the fabric shall be followed by the statement "exclusive of decoration."

Finally, as recommended by AAFA, the Commission staff will continue to provide advice and educational materials on how to properly label products with decorative trim and ornamentation.

3. Disclosure Requirements Applicable to Hang-Tags and Advertisements

The Rules allow disclosure of non-deceptive fiber trademarks in conjunction with the generic name of each such fiber, and address how labels disclose these fiber trademarks. In particular, section 303.17(b) provides that a label using a generic name or a fiber trademark must disclose full and complete fiber content the first time the generic name or fiber trademark appears on the label. Similarly, sections 303.41 and 303.42 address fiber content disclosures in advertising, including point-of-sale advertising. These sections require a fiber content disclosure, including the generic name of the fiber, in advertising that uses a fiber trademark.

The joint comment of eight trade associations urged the Commission to modify the Rules to allow the use of hang-tags and other point-of-sale ("POS") materials relating to fiber trademarks and performance without requiring disclosure of full fiber content information. The joint comment did not urge the Commission to amend any particular section of the Rules. However, two of the eight trade associations also submitted a separate comment urging the Commission to amend section 303.17 to address this issue.

The joint comment and AAFA stated that the requirement that a full fiber content disclosure be made whenever a fiber trademark is used on a label (e.g., on hang-tags) is unnecessary for consumers and a burden on fiber producers. AAFA stated that requiring fiber percentages on hang-tags is redundant since the information is mandated on the required textile label. The joint comment, AAFA, and USA-ITA stated that fiber manufacturers often create hang-tags to provide important information about the performance characteristics and attributes of their fibers (e.g., the fiber's ability to stretch, its recycled content, the UV protection it provides, its moisture management characteristics, and its antimicrobial properties). However, fiber manufacturers may not know the final composition of the fabric or garment made with their fibers at the time they create these hang-tags. The final composition of the fabric or garment is determined by fabric manufacturers and apparel assemblers.

Therefore, the comments asserted that section 303.17 inhibits them from creating hang-tags to provide consumers with important fiber performance information. Instead of requiring a full fiber content disclosure, the comments recommended that the Textile Rules prohibit deceptive representations about fiber content on hang-tags and POS materials.

The Commission agrees. Section 303.17(b) may well discourage the non-deceptive use of fiber trademarks and truthful fiber performance representations on hang-tags. Furthermore, the Commission does not see any reason to prevent fiber, fabric, or garment manufacturers from creating hang-tags to provide consumers with truthful non-deceptive information, provided the product has a label with full fiber content information as required by the Act and the Rules. Allowing such hang-tags could also lower compliance costs because the tags would not have to include the full fiber content information. The Commission proposes to amend section 303.17(b) accordingly.

The Commission notes, however, that under some circumstances hang-tags without full fiber content information might mislead consumers if consumers mistakenly believe that the hang-tag provides full fiber content information. For example, a consumer reading a garment hang-tag with the trademark for a rayon fiber might incorrectly conclude that the product consists entirely of rayon. To address this concern, the Commission proposes amending section 303.17(b) to provide that hang-tags stating a fiber generic name or trademark must disclose clearly and conspicuously that the hang-tag does not provide the product's full fiber content unless the product's full fiber content is disclosed on the hang-tag or if the product is entirely composed of that fiber. Proposed section 303.17(b) provides two examples of compliant disclosures: "This tag does not disclose the product's full fiber content" and "See label for the product's full fiber content."

The joint comment also proposed that the Commission amend the rules to allow POS materials other than hang-tags to disclose fiber trademarks and performance without requiring disclosure of full fiber content information. However, the Textile Act requires that any written advertisement used to promote, sell or offer the product for sale disclose the product's full fiber content (although it need not disclose fiber percentages). Therefore, the Commission does not propose to amend sections 303.41 or 303.42 to allow POS advertising to disclose fiber trademarks and performance without requiring a fiber content disclosure.

Apart from the absence of statutory authority, the Commission notes that practical considerations warrant different treatment of hang-tags and advertisements. Hang-tags are affixed to the product, and likely are in relatively close proximity to the required labels disclosing the product's full fiber content. Therefore, a consumer examining a textile fiber product could read any labels and hang-tags at the same time the consumer considers purchasing the product. Because the required label disclosing the product's full fiber content is, like the hang-tag, affixed to the product, there is no need for, and the Act does not require, the hang-tag to disclose the product's full fiber content with, or without, the fiber percentages. In contrast, advertisements not affixed to the product have no such likely proximity to the product. A consumer reviewing such advertisements without access to the product would not necessarily be able to review any labels disclosing the product's full fiber content at the same time the consumer considers the advertisements.

4. Clarifications of Sections Relating to "Virgin" or "New" Fibers and Disclosures in Advertising

Based on informal inquiries received over the years, the Commission proposes clarifying sections 303.35, 303.41, and 303.42. None of the proposed clarifications involve a substantive change.

(a) New or Virgin Fiber

Section 303.35 states that the terms "virgin" or "new" should not be used to describe a product or any fiber or part thereof when the product or part so described is not wholly virgin or new. Although this section governs descriptions of any "product, or any fiber or part thereof," (emphasis added), it only expressly allows the use of the terms "virgin" or "new" in connection with "the product or part so described," not the "fiber." In other words, this provision literally prohibits truthful fiber content claims for virgin or new fiber. Prohibiting such truthful claims does not advance the goals of the Textile Act or protect consumers from deception, and prohibiting such claims was not the Commission's intent when it promulgated this provision. For example, a product or part containing 50% new fibers could not be described as containing 50% "new" fibers because the product or part is not composed wholly of such fibers. Accordingly, the Commission proposes to amend section 303.35 by adding the word "fiber" as set forth in section X below so that it states that the terms virgin or new shall not be used when the product, fiber or part so described is not composed wholly of new or virgin fiber.

(b) Advertising Disclosures

Section 303.41(a) provides that the use of a fiber trademark in an advertisement shall require a full disclosure of the fiber content information at least once in the advertisement. In other words, the use of a fiber trademark triggers the Rule's fiber content disclosure. In contrast, this section does not require a full disclosure of fiber content information when a generic fiber name is used. This distinction conflicts with the Act, which requires such a disclosure in advertisements that disclose or imply fiber content. Accordingly, to conform the Rules to the Act, the Commission proposes to amend section 303.41(a) to state that the use of a fiber trademark or a generic fiber name in an advertisement shall require a full disclosure of the fiber content information required by the Act and regulations at least once in the advertisement.

Section 303.42(a) also addresses the content and format of fiber disclosures in advertising. This provision implements the Textile Act's requirement that written textile fiber product advertisements disclosing or implying the presence of a fiber also disclose the product's full fiber content, "except that the percentages of the fiber present in the textile fiber product need not be stated." Section 303.42 implements this requirement but fails to explicitly state that advertising need not state the fiber percentages. Accordingly, the Commission proposes to amend the second sentence in section 303.42(a) by adding the following phrase: "except that the advertisement need not state the percentage of each fiber."

B. Country-of-Origin Disclosures

Section 303.33 effectuates the Textile Act's requirement that textile fiber products have labels disclosing the country where they were processed or manufactured. Section 303.33(a) provides sample disclosures for products completely made in the United States, products made in the United States using imported materials, and products partially manufactured in a foreign country and partially manufactured in the United States.

For the purpose of determining where an imported product was processed or manufactured (i.e., the country of origin), section 303.33(d) provides that the country where the imported product was principally made shall be considered to be the country where such product was processed or manufactured. It also provides that further work or material added to the product in another country must effect a basic change in form to render such other country the place where such product was processed or manufactured.

USA-ITA urged the Commission to consider revising section 303.33(d) to state that the country where imported products were processed or manufactured (i.e., country of origin) is determined under the trade laws (i.e., Customs laws) requiring country-of-origin labeling on imported products. USA-ITA argued that there is a conflict between the very detailed trade laws, specifically 19 U.S.C. 3592, and the more general country-of-origin rule in section 303.33(d). The Commission recognized the interplay between the Rules and the Customs laws when it first promulgated the Rules in 1959. Indeed, the Rules state that "[n]othing in this rule shall be construed as limiting in any way" the disclosures required by "any Tariff Act of the United States or regulations prescribed by the Secretary of the Treasury." Although the Commission has repeatedly noted its intent to ensure consistency between section 303.33 and the Customs laws, the trade laws and regulations applicable to textile fiber products have changed significantly. For example, in 1959, Customs regulations on marking imported products provided simply that the country of origin is the country where the product was first manufactured or substantially transformed. The Rules follow a nearly identical approach to determining the origin of imported products even though they do not use identical terminology. However, Customs no longer uses "substantial transformation" to determine the origin of many imported textile products. Rather, the Customs law now contains detailed rules for determining the country of origin of imported textile products. Therefore, the Commission agrees that it should update section 303.33(d) and (f) to better account for current Customs country-of-origin regulations and the fact that Customs is now part of the Department of Homeland Security rather than the Department of the Treasury. Accordingly, the Commission proposes to update and clarify section 303.33(d) to state that an imported product's country of origin as determined under the laws and regulations enforced by Customs shall be the country where the product was processed or manufactured. The Commission also proposes to update section 303.33(f) by dropping the outdated reference to the Treasury Department and instead refer to any Tariff Act and the regulations promulgated thereunder. These amendments would revise the Rules to clearly reflect the Commission's longstanding policy of ensuring the consistency of the Textile Rules and Customs regulations and address USA-ITA's concerns.

C. E-Commerce and Textile Guaranties

The Rules already apply to and specifically address electronic commerce by, for example, defining the terms mail order catalog and mail order promotional material to include materials disseminated by electronic means. Nonetheless, NRF urged the Commission to amend the Rules to more effectively address certain aspects of electronic commerce and to modify the provisions applicable to guaranties. To address these concerns, the Commission proposes amending the definition of the terms invoice and invoice or other paper in section 303.1(h) and the guaranty provisions in sections 303.36, 303.37, and 303.38. The Commission makes some modification to the rule as regards e-commerce and textile guaranties.

D. Coverage and Exemptions From the Act and Rules

Section 303.45 (Exclusions from the Act) has been the source of some confusion. The provision is phrased in terms of textile products excluded from operation of the Textile Act. However, instead of listing the excluded products, the provision lists 23 textile product categories that are not excluded. It then identifies the excluded product categories. To address this issue without changing the substance of this section, the Commission proposes amending the section so that paragraph (a) identifies the textile fiber product categories subject to the Act and regulations, unless excluded from the Act's requirements in paragraph (b). New paragraph (b) provides that all textile fiber products other than those identified in paragraph (a) are excluded, as well as the exempted products identified in paragraph (b). The Commission also proposes revising current paragraphs (b) and (c) to reflect the above change and redesignating them as paragraphs (c) and (d), respectively.

V. Other Amendments the Commission Declines to Propose

Several comments urged the Commission to address the disclosure of a business's identity, the provisions implementing the RN program, and disclosures in multiple languages. The Commission declines these requests either because the record does not include sufficient evidence to support them or the Commission lacks the authority to adopt them.

To read the Commission's full responses to all the comments submitted regarding the advanced notice of proposed rulemaking; to see the Commission's current proposals to modify the Textile Rules; or to see how to comment on the proposals, go the the notice of proposed rulemaking at http://www.gpo.gov/fdsys/pkg/FR-2013-05-20/pdf/2013-10584.pdf

Workshop on NAFTA Compliance and Mexico’s NAFTA Origin Verification Procedures

On Wednesday, May 29, 2013, Under Secretary for International Trade, Mr. Francisco Sánchez, will co-host a workshop with the Chief of Mexico's Servicio de Administración Tributaria ("SAT"), Mr. Aristóteles Núñez, on NAFTA Compliance and Mexico’s NAFTA Origin Verification Procedures with the U.S. and Mexican textile and apparel industries.

10:00-10:30 Welcome Remarks by Mr. Aristóteles Núñez, Chief of Mexico's SAT, and Mr. Francisco Sánchez, U.S. Under Secretary of Commerce

10:30-11:30 Agenda

  • NAFTA Chapter 5: Rights, Obligations and Consequences when filling out and signing a NAFTA Certificate of Origin

  • Procedures Technical Session including SAT's New Procedures Designed to Facilitate Compliance

  • How SAT is resolving current cases?

11:30–noon Question and Answer Session

NOTE: In the afternoon, following the workshop, U.S. and Mexican companies will have the opportunity to meet with SAT authorities on a one-on-one basis to discuss their specific cases. Please leave company specific questions for the one-on-one meetings. If your company is interested in meeting with an SAT representative, please let Richard Stetson at Richard.Stetson@trade.gov and Laurie Mease at Laurie.Mease@trade.gov know by no later than May 21st. Please bring your passports and arrive early to the forum in order to get through security.

Friday, May 17, 2013

International Trade Commission Releases 4th Annual Report on Textile and Apparel Imports from China

The U.S. International Trade Commission ("USITC") today released its annual compilation of bi-weekly reports on textile and apparel imports from China. The report, Textile and Apparel Imports from China: Statistical Reports, Annual Compilation 2012, was requested by the U.S. House of Representatives' Committee on Ways and Means.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, produced an annual compilation of data that has been posted on a bi-weekly basis on the USITC website. The data in the report are shown on an annual and quarterly basis, by category and by Harmonized Tariff Schedule (HTS) 10-digit subheadings.

By category, annual data are provided from 2006 through 2012, and quarterly data are provided from first quarter 2011 through fourth quarter 2012. By HTS10 subheading, annual data are provided from 2010 through 2012, and quarterly data are provided from first quarter 2011 through fourth quarter 2012.

The full report is available at http://www.usitc.gov/publications/332/pub4394.pdf

Notice of Meeting of Advisory Committee on Universal Cotton Standards

In accordance with the Federal Advisory Committee Act, as amended, (5 U.S.C. App.), the Agricultural Marketing Service (AMS) is announcing an upcoming meeting of the Advisory Committee on Universal Cotton Standards (Committee). The Committee is being convened to recommend to the Secretary of Agriculture any changes considered necessary to the Universal Cotton Standards and to review freshly prepared sets of Universal Cotton Standards for conformity with existing standards.

DATES: The meeting dates are June 19-21, 2013. The meeting will convene on Wednesday, June 19th, from 1:00 p.m. to 3:30 p.m. On Thursday, June 20, the meeting will continue from 9:00 a.m. to 5:00 p.m., and on Friday, June 21st meetings will take place from 9:00 a.m. until the completion of the review. The deadline to submit written public comments is June 11, 2013.

ADDRESSES: The June 19th meeting will take place at the Raleigh Marriott Crabtree Valley, 4500 Marriott Drive, Raleigh, North Carolina 27612. Meetings will re-convene on the morning of June 20th at the Raleigh Marriott Crabtree Valley before relocating to the offices of Cotton Incorporated, 6399 Weston Parkway, Cary, North Carolina 27513 in the afternoon. On the morning of June 21st, meetings re-convene at the offices of Cotton Incorporated. Information and instructions pertaining to the meeting are posted at the following Web address: http://www.ams.usda.gov/AMSv1.0/AdvisoryCommitteeonUniversalStandards.

FOR FURTHER INFORMATION CONTACT: James Knowlton, Standardization and Engineering Division, Cotton and Tobacco Programs, AMS, USDA, 3275 Appling Road, Memphis, Tennessee 38133; Phone: (901) 384-3030; Fax (901) 384-3032; Email: james.knowlton@ams.usda.gov.

SUPPLEMENTARY INFORMATION: The Advisory Committee on Universal Cotton Standards includes representatives of all segments of the U.S. cotton industry and the 22 international associations that are signatories to the Universal Cotton Standards Agreement, which is authorized under the United States Cotton Standards Act (U.S.C. 51-65). The purpose of these meetings is: (1) To recommend to the Secretary of Agriculture any changes considered necessary to the Universal Standards; and (2) to review freshly prepared sets of Universal Cotton Standards for conformity with existing standards.

The meeting will be open to the public. The meeting agenda for June 19th includes presentations of proposed standard for High Volume Instrument (HVI) trash measurements and amendments to the Universal Cotton Standards Agreement. A formal meeting of the Committee will take place on the morning of June 20th, and presentations by invited speakers will be made and formal committee action will take place. On the afternoon of June 20th, committee members will review the 1986 original set and reserve sets of standard guide boxes for authenticity. New standard guide boxes will then be matched and approved on June 21st. The final meeting agenda may be viewed at http://www.ams.usda.gov/AMSv1.0/AdvisoryCommitteeonUniversalStandards on June 18, 2013.

Public Comments: Written comments for the Committee's consideration will be accepted through Tuesday, June 11, 2013 via www.regulations.gov. Comments received after that date may not be reviewed by the Committee before the meeting. AMS strongly prefers comments to be submitted electronically; however, written comments may also be submitted by Tuesday, June 11, 2013 via mail to Mr. James Knowlton, Standardization and Engineering Division, Cotton and Tobacco Programs, AMS, USDA, 3275 Appling Road, Memphis, Tennessee 38133. Instructions for viewing all comments are posted at www.regulations.gov.

Meeting Accommodations: The meeting hotel and Cotton Incorporated Offices are ADA compliant, and the USDA provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in this public meeting, please notify James Knowlton at james.knowlton@ams.usda.gov or (901) 384-3030. Determinations for reasonable accommodation will be made on a case-by-case basis.

Two Pennsylvania Companies Awarded Navy Rope Contracts

Phillystran Inc., Montgomeryville, Pa., has been awarded a maximum $21,258,655 fixed-price with economic-price-adjustment contract. This contract is for aramid rope. Location of performance is Pennsylvania with a May 16, 2018 performance completion date. Using military service is Navy. Type of appropriation is fiscal 2013 through fiscal 2018 Defense Working Capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM8EE-13-D-0001).

Whitehill Manufacturing Corp., Chester, Pa., has been awarded a maximum $6,741,345 fixed-price with economic-price-adjustment contract. This contract is for aramid rope. Location of performance is Pennsylvania with a May 16, 2018 performance completion date. Using military service is Navy. Type of appropriation is fiscal 2013 through fiscal 2018 Defense Working Capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM8EE-13-D-0002).

Thursday, May 16, 2013

Deezo Children’s Hooded Sweatshirts with Drawstrings Recalled by Zulily Due to Strangulation Hazard

Recall Details

Units: About 560

Description: This recall involves a Deezo brand boys’, girls’, and toddlers’ zip-up hoodies made of 65% polyester and 35% cotton. The sweatshirts and jackets have designs that include a heart with arrow, swirl, alien, flower, guitar, motor scooter and circuit board designs and come in the following color combinations: pink with white or black trim; white with pink or green trim; blue with a light blue and white trim and black with blue or green trim. The following model numbers are included in the recall: 12501, 2502, 12503, 12504, 12505, 12506, 12507, 12508, 12509, 12801, 12802, 12803, 12804, 12806, 12807, 12808, 12809, 12810. Model numbers are located on the care label sewn into the garments side seam? The garment’s hangtag has “happyfashion4kids www.deezo.com.au” printed on it.

Incidents/Injuries: None reported

Remedy: Consumers should immediately take the garments away from children. Consumers can remove the drawstrings to eliminate the hazard or return the garments to Zulily for a full refund. Contact Zulily to obtain a return address label and instructions for returning the garment.

Sold at: Zulily.com from August 2012 to March 2013 for between $20 and $50.

Manufacturer: Zulily, Inc., of Seattle, Wash.

Manufactured in: China. For more information go to http://www.cpsc.gov/en/Recalls/2013/Deezo-Childrens-Hooded-Sweatshirts-with-Drawstrings-Recalled-by-Zulily/

Tuesday, May 14, 2013

Agathon Association Files Comments on U.S.-E.U. Trade Deal, Stressing Country of Origin Labeling, Wool Labeling, and Berry Amendment

May 10, 2013

Mr. Douglas Bell
Chair, Trade Policy Staff Committee

Via Electronic Filing

RE: Request for Comments on the Proposed Transatlantic Trade and Investment Partnership ("TTIP") agreement with the European Union (Docket No: USTR-2013-0019)

Dear Mr. Bell:

I write in response to the Request for Comments Concerning Proposed Transatlantic Trade and Investment Agreement published in the Federal Register on April 1, 2013 (78 Fed. Reg. 19566, April 1, 2013). In that Request the Trade Policy Staff Committee Chair invited comments, in particular, seeking comments regarding seventeen trade topics set forth as "a" through "q." My comments related to topics "b," "f" and "m."

(b) economic costs and benefits to U.S. producers and consumers of removal of tariffs and removal or reduction in non-tariff barriers on articles traded with the EU;

A 2009 study by the European research and consulting firm Ecorys found that non-tariff barriers ("NTBs") added 19.2 percent to the cost of European textile and clothing articles imported into the U.S. The added NTB cost for U.S. textiles and clothing exported to the E.U. was found to be 16.7 percent. Some of the so-called NTBs, such as country-of-origin labeling (addressed in response to "f" below) and domestic sourcing requirements for certain U.S. government procurement (addressed at "m" below) serve important consumer protection and national security functions and should not be sacrificed for a cheaper flow of goods. But in many other areas harmonization of rules could result in cost savings which could benefit U.S. and E.U. producers and consumers.

(f) opportunities for greater transatlantic regulatory compatibility, including concrete ideas on how greater compatibility could be achieved in a particular economic sector, without diminishing the ability of the United States to continue to meet legitimate regulatory objectives, for example with respect to health, safety and the environment, and which sectors should be the focus of such efforts;

The Textile Fiber Products Identification Act ("Textile Act"), 15 U.S.C. 70-70k, and the Wool Products Labeling Act of 1939 ("Wool Act"), 15 U.S.C. 68-68j, have, for many decades assisted American consumers in making informed choices regarding purchases of textile and wool products by requiring accurate and concise fiber content labeling on such products. While harmonization of labeling requirement could result in significant cost-savings for manufacturers, traders, and retailers, I urge U.S. negotiators to resist any weakening of these important consumer protections measures. Rather, the U.S. should seek to have the European Union come up to U.S. standards with regard to country-of-origin labeling and labeling of wool products, including the 2006 amendments to the Wool Act which gave greater clarity to the term "cashmere" and the use of "Super 100s" and such labeling of men's wool suits.

(m) relevant government procurement issues, including coverage of any government agencies or state-owned enterprises engaged in procurements of interest, that should be addressed in the negotiations;

Since 1941 the Berry Amendment has worked to assure that America's ability to defend herself will never be impaired by an interruption of the supply of vital textile and clothing resources for our men and women in uniform by requiring domestic sourcing of certain textile and clothing acquisition by the Department of Defense. The Kissell amendment extended similar requirements to certain textile and clothing acquisition by the Department of Homeland Security. The European Apparel and Textile Confederation ("EURATEX"), last month, issued a position paper on E.U.-U.S. trade relations, stating "strong support" for a free trade agreement between the U.S. and the E.U." in which they EURATEX called for opening those Department of Defense and Department of Homeland Security acquisitions to European producers in the TTIP, stating:

"This measure restricts the access to Public Procurement creating discrimination between US and Non-US products penalizing in particular EU T&C companies considering that we are highly competitive in this field and the world leaders when it comes to Technical Applications including also special Garments. So any initiative to boost trade between the EU and the US in our sector needs to properly address this issue."
I strong urge U.S. negotiators to reject any effort to weaken the Berry Amendment and Kissell Amendment.

Yours,

David Trumbull
Principal, Agathon Associates












Edward Brook Stevens, 1922 - 2013

Stevens, Edward Brooks, aged 91, of North Andover, Massachusetts, passed away on Saturday, May 11, 2013. Mr. Stevens was born in Lowell in 1922, the eldest son of the late Ames Stevens and the late Phyllis Brooks Stevens. He was educated at the Groton School (class of 1940) and Harvard University (class of 1944), and served in the 20th Armored Division of the U.S. Army in the Second World War. Before leaving for France in 1944, he was married to the former Ann C. Johnson of Norwich, Conn. Upon his return to the U.S., the couple settled in Tewksbury, Massachusetts, and in 1947, Mr. Stevens began working for the family business, Ames Textile Corporation. Over the years, Mr. Stevens worked his way through the business to become its president and chairman of the board, and he and his wife became the parents of four children. After a fire destroyed their home in 1963, the family moved to Andover, where they remained until 1987, when Mr. and Mrs. Stevens settled into a family home in North Andover.

During a long and distinguished career in the textile industry, Mr. Stevens developed the business in the U.S. and expanded it to Europe. He made many friends along the way, and wrote a memoir of his career that he called, The Time of My Life. He was also a director of the State Street Bank and a trustee of the Lahey Clinic. Mr. Stevens was a philanthropist and served on many non-profit boards, including the Boys and Girls Club of Lowell, the United Way of the Merrimack Valley, and Ironstone Farm’s Challenge Unlimited program for disabled children and adults. As chairman of the board of the American Textile History Museum, he led a successful campaign to move the museum to a large space in a former mill building in Lowell and to bring it to national prominence. He also volunteered in the Executive Service Corps of New England, helping a wide variety of non-profit agencies raise funds for service programs and working with them to develop their boards and business plans.

A lifelong interest in travel and history carried him to six of the seven continents. He was also an avid skier, golfer, tennis player, and dancer. His unflagging enthusiasm and zest for life earned him the affection of his friends and the love of his large family. He was close to his brothers, George Stevens and the late Ames Stevens, Jr. and to his sister, Priscilla Stevens Rutherford, to their spouses, and to many nieces and nephews. He is survived by his devoted wife of 69 years, Ann Johnson Stevens, his beloved children Peter Brooks Stevens of Rico, Colorado, Lynn Stevens Lenhart of Chappaqua, N.Y. and her husband, the Rev. J. Thomas Lenhart, Jonathan Ames Stevens of Carlisle, Mass. and his wife, Priscilla Stone Stevens, and Mother Seraphima (Jane Adams Stevens), of Ouzinkie, Alaska. He is also survived by five much-loved grandchildren: Amanda B. Lenhart and her husband Scott B. Smallwood, James E. Lenhart and his wife Dipti K. Lenhart, Katherine S. Getchell and her husband Greg J. Getchell, Abigail A. Lenhart and her husband Jonah I. Zwemer, and Clifford S. Stevens and his wife, Tiffany D. Stevens. His five great grandchildren, who were his delight, are Sophia Getchell, Arun Lenhart, Oliver Zwemer, Natalie Getchell, and Katherine Smallwood.

His burial will be a private service. At a later date, to be announced, a memorial service to honor his life will be held in Andover. To sign the family guest book, please visit www.contefuneralhomes.com.

Arrangements have been entrusted to the Conte Funeral Home, 17 Third Street, North Andover.

Monday, May 13, 2013

Burlington Apparel Fabrics Awarded Army Wool/Polyester Cloth Contracts

Burlington Apparel Fabrics, Division of Burlington Industries LLC., Greensboro, N.C., has been awarded a maximum $19,200,000 fixed-price with economic-price-adjustment contract. This contract is for Army, poly/wool, cloth serge. Location of performance is North Carolina with an Oct. 31, 2014 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 Defense Working Capital funds The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-13-D-1052). Burlington Apparel Fabrics has also been awarded a maximum $13,423,200 fixed-price with economic-price-adjustment-contract. This contract is for Army, poly/wool, cloth serge. Location of performance is North Carolina with an Oct. 31, 2014 performance completion date. Using military service is Army. Type of appropriation is fiscal 2014 Defense Working Capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM1C1-13-D-1051).

Friday, May 10, 2013

Chairman Nunes Announces Hearing on U.S.-EU Trade and Investment Partnership Negotiations

David Nunes (Rep., Calif.), Chairman of the House Committee on Ways and Means Subcommittee on Trade has announced a Thursday, May 16th hearing on the U.S.-E.U. Trade and Investment Partnership Negotiations at 1100 Longworth House Office Building at 2:00 p.m. The focus of the hearing is on the benefits of expanding U.S.-EU trade, including through the negotiation of a trade and investment agreement. The hearing focus will include: (1) tariff barriers to trade; (2) regulatory barriers, including sanitary and phytosanitary barriers to U.S. agriculture exports; (3) opportunities for regulatory cooperation and coherence; (4) services and investment barriers; and (5) ways to strengthen cooperation between the United States and the E.U. with regard to third-country issues.

There is opportunity to submit written comments. For more information on how to submit comments or for assistance in preparing and submitting comments, contact me at david@agathonassociates.com or 202-657-6008.

The European Apparel and Textile Confederation ("EURATEX"), last month, issued a position paper on EU-USA Trade Relations, stating "strong support" for a free trade agreement between the U.S. and the E.U." The EURATEX paper contains some specific policy positions that are contrary to the interest of U.S. textile manufacturers, specifically, EURATEX is critical of U.S. country of origin labeling requirements and the U.S. Wool Products Labeling Act. EURATEX also calls for elimination of the Berry Amendment and Kissell Amendment requirements of domestic sourcing of certain Department of Defense and Department of Homeland Security textile and clothing acquisitions.

CBP Partners with Timberland, Over 17,000 Pairs of Footwear Donated to Charity

Yesterday U.S. Customs and Border Protection's New York Field Office announced the donation of 17,112 pairs of counterfeit Timberland branded shoes and boots to World Vision International, a non-profit organization.

All the items were seized by CBP officials at the Port of New York/Newark for bearing counterfeit trademarks of the famous brand. The total estimated domestic value of the items is $722,824, with a manufacturer’s suggested retail price of more than $2 million.

“Enforcing intellectual property rights (IPR) remains a priority trade initiative for Customs and Border Protection,” said Robert E. Perez, director of CBP’s New York Field Operations. “We are proud to team with Timberland, to make this donation happen.”

Last fiscal year, CBP and trademark holders donated merchandise valued at over one million dollars to charities and relief efforts all over the world.

CBP is responsible for enforcing trade laws and preventing counterfeits from entering the commerce of the United States. Once federal forfeiture procedures are completed, seized items may be donated to relief efforts and to charity, with the trademark owner’s approval. Products that threaten the health and safety of American consumers are destroyed.

Thursday, May 9, 2013

U.S.-E.U. Free Trade Agreement Comments Due Tomorrow

On March 20, 2013, the United States Trade Representative ("USTR") notified Congress of the Administration's intention to enter into negotiations for a Transatlantic Trade and Investment Partnership ("TTIP") agreement with the European Union ("EU") aimed at achieving a substantial increase in transatlantic trade and investment. Before initiating such negotiations, the Trade Act of 1974 requires that, with respect to any proposed trade agreement, any interested persons be afforded an opportunity to present his or her view regarding any matters related to the proposed trade agreement. Accordingly, USTR is seeking public comments on the proposed TTIP, including regarding U.S. interests and priorities, in order to develop U.S. negotiating positions. Comments may be provided in writing and orally at a public hearing.

DATES: Written comments are due by midnight, May 10, 2013. Persons wishing to testify orally at the hearing must provide written notification of their intention, as well as a summary of their testimony, by midnight, May 10, 2013. The hearing will be held on May 29 and 30 beginning at 9:30 a.m., at the main hearing room of the United States International Trade Commission, 500 E Street SW., Washington, DC 20436.

ADDRESSES: Public comments should be submitted electronically at www.regulations.gov. If you are unable to provide submissions at www.regulations.gov, please contact Yvonne Jamison, Trade Policy Staff Committee ("TPSC"), at (202) 395-3475, to arrange for an alternative method of transmission.

FOR FURTHER INFORMATION CONTACT: For procedural questions concerning written comments, please contact Yvonne Jamison at the above number. All other questions regarding the TTIP agreement should be directed to David Weiner, Deputy Assistant USTR for Europe, at (202) 395-9679.

Written Comments: The TPSC Chair invites interested parties to submit written comments to assist USTR as it works with other U.S. government agencies and continues to consult with Congress to develop U.S. negotiating objectives and proposals for the proposed TTIP agreement. Comments may address the reduction or elimination of tariffs or non-tariff barriers on any articles provided for in the Harmonized Tariff Schedule of the United States ("HTSUS") that are products of the EU, any concession that should be sought by the United States, or any other matter relevant to the proposed agreement. The TPSC Chair invites comments on all of these matters and, in particular, seeks comments regarding:

(a) General and product-specific negotiating objectives for the proposed agreement;

(b) economic costs and benefits to U.S. producers and consumers of removal of tariffs and removal or reduction in non-tariff barriers on articles traded with the EU;

(c) treatment of specific goods (described by HTSUS numbers) under the proposed agreement, including comments on--

    (1) product-specific import or export interests or barriers,

    (2) experience with particular measures that should be addressed in the negotiations, and

    (3) approach to tariff negotiations, including recommended staging and ways to address export priorities and import sensitivities in the context of the proposed agreement;

(d) adequacy of existing customs measures to ensure that duty rates under an agreement with the EU apply only to goods eligible to receive such treatment, and appropriate rules of origin for goods entering the United States under the proposed agreement;

(e) existing sanitary and phytosanitary measures and technical barriers to trade that should be addressed in the negotiations;

(f) opportunities for greater transatlantic regulatory compatibility, including concrete ideas on how greater compatibility could be achieved in a particular economic sector, without diminishing the ability of the United States to continue to meet legitimate regulatory objectives, for example with respect to health, safety and the environment, and which sectors should be the focus of such efforts;

(g) opportunities to reduce unnecessary costs and administrative delays stemming from regulatory differences, including how that could be achieved in a particular economic sector;

(h) opportunities to enhance customs cooperation between the United States and the EU and its member states, ensure transparent, efficient, and predictable conduct of customs operations, and ensure that customs measures are not applied in a manner that creates unwarranted procedural obstacles to trade;

(i) existing barriers to trade in services between the United States and the EU that should be addressed in the negotiations;

(j) relevant electronic commerce and cross-border data flow issues that should be addressed in the negotiations;

(k) relevant investment issues that should be addressed in the negotiations;

(l) relevant competition-related matters that should be addressed in the negotiations;

(m) relevant government procurement issues, including coverage of any government agencies or state-owned enterprises engaged in procurements of interest, that should be addressed in the negotiations;

(n) relevant environmental issues that should be addressed in the negotiations;

(o) relevant labor issues that should be addressed in the negotiations;

(p) relevant transparency and anticorruption issues that should be addressed in the negotiations; and

(q) relevant trade-related intellectual property rights issues that should be raised with the EU.

In addition to the matters described above, the TPSC invites comments on new principles or disciplines addressing emerging challenges in international trade that should be pursued in the negotiations and that would benefit U.S.-EU trade as well as strengthen the multilateral rules-based trading system and support other trade-related priorities, including, for example, with respect to state-owned enterprises, ``localization'' barriers to trade, and other developments on which the United States and the EU may share similar concerns.

At a later date, USTR, through the TPSC, will publish notice of reviews regarding (a) the possible environmental effects of the proposed agreement and the scope of the U.S. environmental review of the proposed agreement, and (b) the impact of the proposed agreement on U.S. employment and labor markets.

Oral Testimony: A hearing will be held on May 29 and May 30 in the Main Hearing Room at the U.S. International Trade Commission, 500 E St. SW., Washington, DC 20436. Persons wishing to testify at the hearing must provide written notification of their intention by May 10, 2013. The intent to testify notification must be made in the ``Type Comment'' field under docket number USTR-2013-0019 on the regulations.gov Web site and should include the name, address and telephone number of the person presenting the testimony. A summary of the testimony must accompany the notification. Remarks at the hearing should be limited to no more than five minutes to allow for possible questions from the TPSC.

Wednesday, May 8, 2013

Workshop on Mexico’s NAFTA Verification of Origin Audits May 29th

On Wednesday, May 29, 2013, Under Secretary for International Trade Francisco Sánchez will co-host a workshop with Mexico’s Under Secretary of Foreign Trade Francisco de Rosenzweig, Mexico’s Servicio de Administración Tributaria ("SAT") and Secretaría de Economía on SAT’s new, streamlined procedures for verification of origin audits under the North American Free Trade Agreement ("NAFTA"). The workshop will take place in Mexico City on May 29th (time and location to be announced). Details on the time, location and registration will be made available soon. Please contact Laurie Mease (Laurie.Mease@trade.gov) or Richard Stetson (Richard.Stetson@trade.gov) at 202-482-3400 with any questions.

Three Mississippi Companies with Limited FTZ Approval for Micro-Denier Suede Upholstery Fabrics Seek Extension of Approval for Indefinite Time

The U.S. Department of Commerce Foreign Trade Zone Boards has announced that the Greater Mississippi Foreign-Trade Zone, Inc. has submitted notifications of proposed production activity on behalf of Bauhaus USA, Inc. ("Bauhaus"), H.M. Richards, Inc. ("HMRI"), and Lane Furniture Industries, Inc. ("Lane"), located in Belden, Guntown, Saltillo, and Verona, Mississippi.

The Bauhaus facility is located within Site 16 of FTZ 158 and currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1600, 74 FR 262-263, 1-5-2009). Board Order 1600 authorized the production of upholstered furniture (sofa, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (3.5 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in Bauhaus' production within FTZ 158 is subject to full customs duties.

The HMRI facility is located within Site 15 of FTZ 158 and currently has authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1599, 74 FR 263, 1-5-2009). Board Order 1599 authorized the production of upholstered furniture (sofa, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (3.6 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in HMRI's production within FTZ 158 is subject to full customs duties.

The Lane facilities are located within Sites 14, 16, and 17 of FTZ 158 and currently have authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (see, Board Order 1598, 74 FR 263, 1-5-2009). Board Order 1598 authorized the production of upholstered furniture (sofa, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (6.5 million square yards/year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. All foreign upholstery fabric other than micro-denier suede fabric used in Lane's production within FTZ 158 is subject to full customs duties.

The current requests seek to extend the companies' current FTZ authority indefinitely.

The proposed scope of authority under FTZ procedures would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process, as detailed in the notification (duty rate ranges from 2.7 to 17.2%). All other material inputs used in the production activity would be in domestic (duty paid) status.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary and received by May 20, 2013.

CPSC Strategy, Import Surveillance, and Product Testing

Dean W. Woodard, Director of the Office of Education, Global Outreach, and Small Business Ombudsman, Consumer Product Safety Commission, will be speaking, May 21st, to attendees at the National Retail Federation’s Supply Chain Summit in Dallas, Texas. The presentation, titled CPSC Strategy, Import Surveillance, and Product Testing was requested by Jon Gold of the National Retail Federation. This program will focus specifically on issues related to CPSC’s efforts to ensure safety in the marketplace. Testing of all manufactured goods will also be discussed.

On May 22nd, Dean W. Woodard, Director of the Office of Education, Global Outreach and Small Business Ombudsman, CPSC, will be speaking to interested business in the metropolitan Dallas/Fort Worth Region. The presentation will be an overview of U.S. regulatory requirements for consumer products (including children’s products) and will also explain the requirements and benefits of registering as a small batch manufacturer with CPSC. The presentation is free and open to the public. The presentation was initiated by the CPSC’s Office of Education, Global Outreach, and Small Business Ombudsman. The program will take place in the Trinity Room on the ground floor of the Earle Cabell Federal Building in downtown Dallas. The conference room is adjacent to the main lobby on the ground floor. The Cabell building is located at 1100 Commerce Street. Please allow time to pass through security. Advance registration is requested (but not required) to ensure adequate seating. Please RSVP at: business@cpsc.gov. You may contact Dean W. Woodard at dwoodard@cpsc.gov with any questions or to schedule a time to speak individually.

Tuesday, May 7, 2013

Army Trouser Contract Awarded

Tullahoma Industries, LLC, Tullahoma, Tenn., has been awarded a maximum $59,389,738 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for three types of Permethrin Army Combat Uniform trousers. Locations of performance are Tennessee and Alabama with a May 6, 2014 performance completion date. Using military service is Army. Type of appropriation is Fiscal 2013 through Fiscal 2014 Defense Working Capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.