Friday, April 29, 2016

House Passes Bill to Create MTB Process

On April 13, 2016, Representative Kevin Brady (Rep., Tex. 8th) introduced H.R.4923, the American Manufacturing Competitiveness Act of 2016. Also on On April 13, 2016, Senator Orrin G. Hatch (Rep., Utah) introduced S. 2794, the American Manufacturing Competitiveness Act of 2016.

While there are some differences between the bills, they are substantially the same in that they direct the The U.S. International Trade Commission to:

  • conduct a process, meeting specified requirements, for the submission and consideration of petitions for duty suspensions and reductions; and
  • report to Congress on the effects of duty suspensions and reductions enacted pursuant to this Act on producers, purchasers, and consumers in the United States.

On April 27, 2016, on motion to suspend the rules and pass the bill, as amended, H.R. 4923 was agreed to by the Yeas and Nays: (2/3 required): 415 - 2 (Roll no. 166). The bill now goes on to the Senate.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can learn more about the MTB at www.agathonassociates.com/textile-pri/mtb/index.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

USTR Releases Report on Global State of Intellectual Property Rights Protection and Enforcement

On April 27, 2016, the Office of the United States Trade Representative released the 2016 Special 301 Report.

The Special 301 Report (Report) is the result of an annual review of the state of intellectual property rights (IPR) protection and enforcement in U.S. trading partners around the world, which the Office of the United States Trade Representative (USTR) conducts pursuant to Section 182 of the Trade Act of 1974, as amended by the Omnibus Trade and Competitiveness Act of 1988, the Uruguay Round Agreements Act, and the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. § 2242).

This Report reflects the Administration’s continued resolve to encourage and maintain adequate and effective IPR protection and enforcement worldwide. The Report identifies a wide range of concerns, including: (a) the deterioration in IPR protection and enforcement in a number of trading partners; (b) reported inadequacies in trade secret protection in China, India, and elsewhere; (c) troubling “indigenous innovation” policies that may unfairly disadvantage U.S. right holders in markets abroad; (d) the continuing challenges of online copyright piracy; (e) measures that impede market access for U.S. products embodying IPR and U.S. entities that rely upon IPR protection; and (f) other ongoing, systemic IPR enforcement issues in many trading partners around the world.

The Report serves a critical function by identifying opportunities and challenges facing U.S. innovative and creative industries in foreign markets and by promoting job creation, economic development, and many other benefits that effective IPR protection and enforcement support. The Report informs the public and our trading partners and seeks to be a positive catalyst for change. USTR looks forward to working closely with the governments of the trading partners that are identified in this year’s Report to address both emerging and continuing concerns, and to build on the positive results that many of these governments have achieved.

Thursday, April 28, 2016

Maine Floor Covering Manufacturer Files for Foreign Trade Zone

On April 28, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 25374) Foreign-Trade Zone 186--Waterville, Maine; Application for Subzone, Flemish Master Weavers' Sanford, Maine.

An application has been submitted to the Foreign-Trade Zones Board (the Board) by the City of Waterville, grantee of FTZ 186, requesting subzone status for the facility of Flemish Master Weavers, located in Sanford, Maine. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR part 400). It was formally docketed on April 21, 2016.

The proposed subzone (4.80 acres) is located at 96 Gatehouse Road, Sanford, Maine. A notification of proposed production activity has been docketed separately and is being processed under 15 CFR 400.37 (Docket B-18-2016, 81 FR 22210, April 15, 2015). The proposed subzone would be subject to the existing activation limit of FTZ 186.

In accordance with the Board's regulations, Kathleen Boyce of the FTZ Staff is designated examiner to review the application and make recommendations to the Executive Secretary.

Public comment is invited from interested parties. Submissions shall be addressed to the Board's Executive Secretary at the address below. The closing period for their receipt is June 7, 2016. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to June 22, 2016.

A copy of the application will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the ``Reading Room'' section of the Board's Web site, which is accessible via www.trade.gov/ftz.

For further information, contact Kathleen Boyce at Kathleen.Boyce@trade.gov or 202-482-1346.

Wednesday, April 27, 2016

URI Student Fashion Show

Last Saturday, April 23rd, the Department of Textiles, Fashion Merchandising and Design ("TMD"), University of Rhode Island, held Spring the Splash Fashion Show 2016 "Poly-Fashion," showcasing fashions designed and created by TMD students. Agathon Associates is pleased to have been one the sponsors of this fabulous event, which can be viewed at http://livestream.com/universityofrhodeisland/fashionshow, and is especially pleased to see Amy DeBlasio, one of the David Trumbull's fall 2015 textile markets TMD course, chosen for the competitive event. Last year's Spring Splash can be viewed at http://livestream.com/accounts/4896157/splash2015/videos/83512688.

Flock Upholstery Tariff Ruling

In two recent Binding Ruling Letters, U.S. Customs and Border Protection ("CBP") reaffirmed the determination, that goes back to at least 1991, that fabric that is flocked all over (not in a pattern with the ground showing) and entered as fabric (not further processed by cutting to shape for garments or furniture covering, in other words, rolls of fabric) is classified under subheading 5907.00 of the Harmonized System along with other textile fabrics otherwise impregnated, coated or covered. Specifically, in Rulings N273746 and N273747, both dated April 5, 2016, CBP determined that woven upholstery fabrics of 35% polyester and 35% cotton, coated with flock of man-made fiber, are classified at 5907.00.6000 Harmonized Tariff System of the U.S. The rate of duty is zero. The fabrics are made in Israel and imported by Flexsteel of Dubuque, Iowa.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can learn more about the tariff classification of flock and flocked articles at www.agathonassociates.com/textile-pri/flock/classification.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Monday, April 25, 2016

Infant and Toddler Footed Pajamas Recalled by Pajamagram Due to Choking Hazard

Name of product: Hoodie Footie™ Infant and Toddler Footed Pajamas

Hazard: The metal snaps that attach the hood to pajamas can come off, posing a choking hazard to young children.

Remedy: Replace. Consumers should immediately take the recalled pajamas away from children and contact Pajamagram to receive free replacement pajamas plus a $25 gift card. For additional information, contact The Vermont Teddy Bear Company/Pajamagram at (800) 262-1162 between 9 a.m. and 5 p.m. ET, Monday through Friday, or visit the firm's website at www.pajamagram.com.

Units: About 800

Description: The Hoodie-Footie™ infant and toddler footed pajamas have a front zipper and a detachable hood. The style "Winter Whimsy" is red fleece with multi-colored penguins, snowmen and snowflake designs. They were sold in infant sizes 0 to 18 months and toddler sizes 2T to 5T. "Hoodie Footie," the size and the code GPU#SUNHFH1 or GPU#SUNHFH2 are printed on a label at the neck of the pajamas.

Incidents/Injuries: None reported Remedy

Sold at Pajamagram catalogs and on the firm's website www.pajamagram.com from November 2010 through December 2010 for about $30.

Importer(s): The Vermont Teddy Bear Co. Inc., dba Pajamagram, of Shelburne, Vt.

Manufactured in China.

Friday, April 22, 2016

Army Parachute Contract Awarded

Yoland Corp., Brooklyn, New York, was awarded an $18,730,839 firm-fixed-price contract for 60mm, 81mm, 120mm, and 155mm main and drogue mortar and artillery parachutes. Bids were solicited via the Internet with four received, with an estimated completion date of April 20, 2021. Funding and work location will be determined with each order. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-16-D-0071).

SouvNear Recalls Women’s Scarves Due to Violation of Federal Flammability Standard

SouvNear Recalls Women’s Scarves Due to Violation of Federal Flammability Standard http://www.cpsc.gov/en/Recalls/2016/SouvNear-Recalls-Womens-Scarves/

Name of Product: Women’s scarves

Hazard: The scarves do not meet the federal flammability standard for clothing textiles, posing a burn risk.

Remedy: Refund. Consumers should immediately stop using the recalled scarves and return them to SouvNear for a full refund. Consumers who purchased the scarves online will be contacted directly.

Consumer Contact: SouvNear toll-free at (844) 328-5735 between 9 a.m. and 5 p.m. ET Monday through Friday, email care@souvnear.com or online at www.souvnear.com and click on the “Product Recall” link at the bottom of the page for more information.

Units: About 650

Description: This recall involves 51 different styles of women’s 100 percent silk scarves. The scarves are between 72 inches long by 31 inches wide. “100% Pure Silk” and “Made in India” are printed on the sewn-in tags. The scarves come in standard and infinity styles and come in various colors and patterns, including floral, leopard and paisley.

Incidents/Injuries: None reported

Sold at: Averroes International stores and online at amazon.com and souvnear.com from October 2014 through March 2016 for between $8 and $40.

Importer: SouvNear Inc., of Trevose, Pa.

Manufactured in: India

Tuesday, April 19, 2016

New England Region AATCC Meeting

New England Region AATCC Meeting

Thursday April 28, 2016

Special Guest Speaker: Harrie Schoots, Ascend Performance Materials

“Static Electricity in Your Supply Chain: So What’s the Charge?”

Get plugged-in… Overview of static discharge in apparel and materials; applications; solutions i.e. nuisance static, performance to safety; test methods; compliance with accreditations i.e. REACH, Oeko-Tex, Bluesign

Join the discussion… Explore relevance, value and benefits of anti-static bi-component staple and filament in your supply chain

McCormick & Schmick's at the Biltmore Hotel
11 Dorrance Street, Providence, RI
5:30 pm Social hour, cash bar, 6:30 pm Presentation followed by Dinner
RSVP: by April 22 It’s simple to make your reservations today:

Email heidicarvalho@comcast.net or phone 774 930 0297. Please Include your name, contact info, # and name of guests + sponsor amount , dietary restrictions; food allergies; related concerns

Cash or check: NEAATCC and meal selection upon arrival
Nonmember $35 / Member $30pp / Govt/Mil/Retired $25pp
Students always welcome to attend Speaker Presentation w/o meal at no fee
Membership drive in progess join or reinstate today or at meeting –don’t miss out
Sponsorship recognition levels: $60, $90, $150, Other$_______
Parking info: valet parking $7 up to 3 hours, free on street after 6pm, garage parking at providence place mall under $5

Monday, April 18, 2016

Certain Warp Stretch Woven Rayon Blend Fabrics Short Supply Filed

Date Received04/12/2016
Responses with Offer to Supply04/26/2016
Rebuttal to Responses with Offer to Supply05/02/2016
Projected Completion Date05/24/2016
Company NameGDLSK for Tang Textiles
ProductCertain Warp Stretch Woven Rayon Blend Fabrics

Fabric #1: Warp Stretch Woven Rayon, Nylon, Spandex Fabric

HTS:
5516.22.00; 5516.23.00; 5516.24.00

Fiber Content:
Rayon: 67-80%; Nylon 15-35%; Spandex 2-6%

Yarn configuration:
Warp - nylon filament combined with spandex filament
Filling - rayon staple

Yarn Denier: Nylon and Spandex of various deniers.

Width:
metric: 139-153 cm
English: 55-60 in

Weight: 220-315 grams per square meter

Thread Count (Density):
Metric: 30-74 ends per cm (warp) X 27-38 picks per cem (filling)
English: 76-185 ends per inch (warp) X 70-95 picks per inch (filling)

Weave type: Various weaves

Finish/Processing: Of yarns of different colors and/or piece dyed and/or printed.


Fabric #2: Warp Stretch Woven Rayon, Polyester, Nylon, Spandex Fabric

HTS:
5407.10.00; 5407.92.20; 5407.93.20; 5407.94.20; 5516.22.00; 5516.23.00; 5516.24.00

Fiber Content:
Rayon: 30-70%; Polyester: 20-52%; Nylon 9-35%; Spandex 2-6%

Yarn configuration:
Warp - nylon filament, polyester filament and spandex filament
Filling - rayon staple combined with polyester filament

Yarn Denier: Polyester, Nylon and Spandex of various deniers.

Width:
metric: 139-153 cm
English: 55-60 in

Weight: 220-315 grams per square meter

Thread Count (Density):
Metric: 30-48 ends per cm (warp) X 27-40 picks per cem (filling)
English: 76-120 ends per inch (warp) X 70-100 picks per inch (filling)

Weave -type: Various weaves

Finish/Processing: Of yarns of different colors and/or piece dyed and/or printed.

Quantity Requested
Fabric, Fiber, or Yarn?Fabric
ContactDybczak- Maria
File Number199.2016.04.12.Fabric.GDLSKforTangTextiles

No Wool, No Vikings

Viking life was both wild and wooly, according to an article in Hakai Magazine.

Life Cycle Assessment of Wool

The possibility for net carbon benefit garments has been made evident —- the ability to go beyond ‘carbon-neutrality’ and into ‘carbon beneficiality’ is the near-future standard for our clothes, according to a Life Cycle Assessment of wool apparel produced by Fibershed.

Three New U.S.-Morocco Short Supply Requests Filed

On April 15, 2016, the Committee for the Implementation of Textile Agreements published in the Federal Register (81 FR 22238) Request for public comments concerning a request for modification of the U.S.-Morocco Free Trade Agreement (USMFTA) rules of origin for pants, skirts, jackets, shirts, and casual dresses made from certain woven fabrics.

The Government of the United States received a request from the Government of Morocco, submitted on March 9, 2016, and updated on April 1, 2016, on behalf of CROSSING to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for pants, skirts, jackets, shirts and casual dresses to address availability of supply of certain woven fabrics in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain woven fabrics can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

  • Fabric 1: 100% lyocell classified in subheading 5516.11 and 5516.12 of the HTSUS;
  • Fabric 2: Lyocell/cotton classified in subheading 5516.41, 5516.42, and 5516.43 of the HTSUS;
  • Fabric 3: Cotton/polyester classified in subheading 5210.49 and 5211.42 of the HTSUS;
  • Fabric 4: Cotton/polyester/elastane classified in subheading 5210.49 and 5211.4210 of the HTSUS;
  • Fabric 5: Corduroy with cotton classified in subheading 5801.22 of the HTSUS; and
  • Fabric 6: Corduroy polyester classified in subheading 5801.32 of the HTSUS

Comments must be submitted by May 16, 2016

On April 15, 2016, the Committee for the Implementation of Textile Agreements published in the Federal Register (81 FR 22237) Request for public comments concerning a request for modification of the U.S.-Morocco Free Trade Agreement (USMFTA) rules of origin for certain women's pants made from certain woven fabrics.

The Government of the United States received a request from the Government of Morocco, dated March 9, 2016, on behalf of MODALINE HOLDING to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for women's pants to address availability of supply of certain woven fabrics in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain woven fabrics can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

  • Fabric 1: 45%-52% polyester, 45%-52% rayon, 1%-7% spandex woven synthetic bi-stretch fabric, classified in subheading 5515.11 of the HTSUS;
  • Fabric 2: 60%-68% polyester, 29%-37% rayon, 1%-7% spandex woven poly-viscose fabric, classified in subheading 5515.11 of the HTSUS;
  • Fabric 3: 31%-37% viscose, 17%-23% polyester, 17%-23% cotton, 13%-19% wool, 5%-11% nylon, 1%-6% spandex woven herringbone fabric, classified in subheading 5408.33 of the HTSUS;
  • Fabric 4: 94%-99% virgin wool, 1%-6% spandex, twill stretch flannel reactive dyed fabric, classified in subheading 5112.11 of the HTSUS; and
  • Fabric 5: 89%-95% polyester, 5%-11% spandex printed and solid woven polyester crepe fabric (with filament yarn size of 120D + 40D*120D + 40D and a construction of 175*104), classified in subheading 5407.61 of the HTSUS.

Comments must be submitted by May 16, 201

On April 15, 2016, the Committee for the Implementation of Textile Agreements published in the Federal Register (81 FR 22236) Request for public comments concerning a request for modification of the U.S.-Morocco Free Trade Agreement (USMFTA) rules of origin for dresses, skirts, blouses and tops made from certain woven fabric.

The Government of the United States received a request from the Government of Morocco, dated March 1, 2016, on behalf of ARYANS to initiate consultations under Article 4.3.3 of the USMFTA. The Government of Morocco is requesting that the United States and Morocco (``the Parties'') consider revising the rules of origin for dresses, skirts, blouses and tops to address availability of supply of certain woven fabric in the territories of the Parties. The President of the United States may proclaim a modification to the USMFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Morocco on a modification under Article 4.3.6 of the USMFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain woven fabric can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

Fabrics: 87%-93% cotton/5%-9% polyester/2%-4% elastane woven fabric, classified in subheading 5209.42 of the HTSUS.

Comments must be submitted by May 16, 2016.

Saturday, April 16, 2016

URI Presents PolyFashion SpringSlash 2016

The University of Rhode Island Textiles, Fashion Merchandising and Design Department and the Textile Advisory Board invites you to attend PolyFashion SpringSplash 2016, student fashion show and awards. For more information contact David Trumbull at david@agathonassociates.com.

Friday, April 15, 2016

USITC Begins Investigation Concerning Whether Certain Textile and Apparel Articles from Nepal are Import Sensitive

The U.S. International Trade Commission ("USITC") is seeking input for a new investigation concerning whether certain textile and apparel articles from Nepal are import sensitive.

The investigation, Nepal: Advice Concerning Whether Certain Textile and Apparel Articles Are Import Sensitive, was requested by the U.S. Trade Representative ("USTR") in a letter received on March 30, 2016.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of providing duty-free treatment for the following 66 products, listed by Harmonized Tariff Schedule (HTS) subheading, from Nepal:

  • Luggage and attaché cases (5 subheadings): 4202.11.00, 4202.12.20, 4202.12.40, 4202.12.60, 4202.12.80;
  • Handbags (10 subheadings): 4202.21.60, 4202.21.90, 4202.22.15, 4202.22.40, 4202.22.45, 4202.22.60, 4202.22.70, 4202.22.80, 4202.29.50, 4202.29.90;
  • Pocket Goods (4 subheadings): 4202.31.60, 4202.32.40, 4202.32.80, 4202.32.95;
  • Travel Bags (9 subheadings): 4202.91.00, 4202.92.08, 4202.92.15, 4202.92.20, 4202.92.30, 4202.92.45, 4202.92.60, 4202.92.90, 4202.99.90;
  • Carpets (13 subheadings): 5701.10.90, 5702.31.20, 5702.49.20, 5702.50.40, 5702.50.59, 5702.91.30, 5702.91.40, 5702.92.90, 5702.99.15, 5703.10.20, 5703.10.80, 5703.90.00, 5705.00.20
  • Shawls, Scarves, and Travel Blankets (7 subheadings): 6117.10.60, 6214.10.10, 6214.10.20, 6214.20.00, 6214.40.00, 6214.90.00, 6301.90.00
  • Hats (13 subheadings): 6504.00.90, 6505.00.08, 6505.00.15, 6505.00.20, 6505.00.25, 6505.00.30, 6505.00.40, 6505.00.50, 6505.00.60, 6505.00.80, 6505.00.90, 6506.99.30, 6506.99.60
  • Gloves (2 subheadings): 4203.29.50, 6216.00.80
  • Miscellaneous Articles (Headbands and Needlecraft Kits) (3 subheadings): 6117.80.85, 6217.10.85, 6308.00.00

The USITC will submit its confidential report to USTR by September 29, 2016. As soon as possible thereafter, the USITC will, as requested by USTR, issue a public version of the report containing only the unclassified sections, with any business confidential information and classified information deleted.

The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on June 9, 2016. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on May 23, 2016, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted at the earliest practical date but no later than 5:15 p.m. on June 24, 2016. All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of this investigation and appropriate submissions appears in the USITC’s notice of investigation, dated April 15, 2016. The notice can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address or at 202-205-2000.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

MTB Process Bill Filed in Congress

On April 13, 2016, proposed legislation in the 114th Congress to establish a process for the submission and consideration of petitions for temporary duty suspensions and reductions, commonly called the Miscellaneous Tariff Bill, was introduced in House by Rep. Kevin Brady [Rep., Texas] as H.R.4923 and in the Senate by Sen. Orrin Hatch [Rep., Utah) as S.2794.

Since 1982, nearly every Congress has passed legislation to temporarily reduce or suspend tariffs on certain imported products and make technical corrections to U.S. tariff laws. Although the official title of the bill varies from year to year, it is usually referred to simply as the Miscellaneous Tariff Bill ("MTB") The duty suspensions and reductions are designed to boost the competitiveness of U.S. manufacturers by lowering the cost of imported inputs without harming domestic firms that produce competing products. In addition, in the case of finished goods, MTBs similarly reduce costs for consumers where there is no domestic production and thus no impact on domestic firms. Overall, the tariff relief contained in MTBs is designed both to be broadly available to any entity that imports and pays duties pursuant to the specified tariff heading and to benefit downstream producers, purchasers, and consumers.

In recent years MTBs have been harder to pass because some members of Congress, particularly in the Senate, have tried to insert controversial items or have held up non-controversial items pending the resolution of other trade-related disputes. Since the 110th Congress the MTB has faced opposition from some Senators and Members of Congress who construe a temporary duty suspension as an inappropriate congressional "earmark."

Background on the 3-Step MTB Process:

First, the new process would begin exclusively through petitions made by local U.S. businesses to the independent, non-partisan International Trade Commission ("ITC"). After the ITC receives petitions from the business community, an independent panel would receive comments from the public and the Administration and conduct its analysis.

Second, the ITC would issue a public report to Congress with its analysis and recommendations regarding products that meet the MTB standards, including that there is no domestic production.

Third, the Ways and Means Committee would examine the ITC’s recommendations and draft a MTB proposal. While the Committee can exclude products from its final proposal, it cannot add products that were not recommended by the ITC. As required by House rules, Ways and Means would certify that there are no spending earmarks and would publish a list of any Limited Tariff Benefits (LTB). Congress would then consider the MTB within existing rules.

Agathon Associates is preparing guidance for clients on how to file for tariff suspensions.

Monday, April 18, 2016, is Patriots' Day in Massachusetts

Monday, April 18, 2016, is Patriots' (plural possessive) Day in Massachusetts and Patriot's (singular possessive) Day in Maine. State and local government offices in Massachusetts and Maine will be closed, as will some businesses.

“Listen, my children and you shall hear
of the midnight ride of Paul Revere,
On the eighteenth of April, in Seventy-five.”

New England’s original "On the Road" man looms large in these parts --life-sized, in fact, in bronze, in Boston's North End. There, as well, you'll find his house preserved, just as his ride is preserved in the Longfellow poem.

“You know the rest. In the books you have read,
How the British Regulars fired and fled—“

And that morning of April 19 officially marks the beginning of the American War of Independence. In Massachusetts and Maine (part of Massachusetts until 1820, when, under the "Missouri Compromise" Maine, a free State was admitted to the Union, paired with Missouri, a slave State) we celebrate it as Patriots'/Patriot's Day, and, like Revere, take to the road – a renowned twenty-six miles of road from Hopkinton to Boston.

At the original Marathon, 26 miles from Athens, Greece, free, Democratic, Western civilization faced and defeated the forces of absolutism. It is a battle that has been fought many times. It will be fought many more times. Freedom must always be prepared to fight just to be free.

On September 11, 2001, after the unprovoked terrorists attacks on thousands of innocent, unsuspecting civilians, President George W. Bush spoke of why we were attacked, and why we shall prevail: "America was targeted for attack because we're the brightest beacon for freedom and opportunity in the world. And no one will keep that light from shining."

Our patriot forefathers (and every America is a Son of Liberty, regardless of when your people came here) knew that freedom is worth fighting for. This Patriots' Day let's reflect on the cause of freedom, and thank the brave American men and women who, in every war from the Revolution to our current engagements in the Near and Middle East, have made it possible for us to enjoy this April 18th as a free people.

Agreement to Terminate Export Subsidies Under China’s Demonstration Bases-Common Service Platform Program

On April 14, 2015, the United States and China Signed a Memorandum of Understanding Related to the Dispute China – Measures Related to Demonstration Bases and Common Service Platforms Programs (DS489).

On February 11, 2015, the United States filed a challenge in the WTO against China’s “Demonstration Bases-Common Service Platform” program that provides prohibited export subsidies to Chinese enterprises located in 179 industrial clusters throughout China known as “Demonstration Bases.”

Each of these Demonstration Bases was comprised of enterprises from one of seven sectors: (1) textiles, apparel and footwear; (2) advanced materials and metals (including specialty steel, titanium and aluminum products); (3) light industry; (4) specialty chemicals; (5) medical products; (6) hardware and building materials; and (7) agriculture.

The WTO established a panel in April 2015 to review this matter. Nonetheless, the parties continued to discuss how China could address U.S. concerns that China’s program provides export subsidies prohibited under WTO rules.

To address the concerns raised by the United States, China agreed to take specific actions in a memorandum of understanding (MOU) signed on April 14, 2016 by China and the United States.

In the MOU, China agreed to take the following actions with respect to the Demonstration Bases-Common Service Platform program:

  1. Defund the Common Service Platform (CSP) program by removing central government level funding;
  2. Terminate the preferential service agreements between sub-central governments and CSP providers, which had been the sources of free or discounted services provided to Demonstration Base enterprises;
  3. Prohibit CSP providers from continuing to provide free or discounted services to enterprises in export-contingent Demonstration Bases;
  4. Terminate sub-central government export-contingent cash grant measures;
  5. Eliminate any export-contingent criteria from the Demonstration Base designation process; and
  6. Re-evaluate all national and provincial level bases without the use of export-contingent criteria.

Polyester and Polypropylene Yarn FTZ Filed

On April 15, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 22210) Foreign-Trade Zone (FTZ) 186--Waterville, Maine; Notification of Proposed Production Activity; Flemish Master Weavers (Area Rugs); Sanford, Maine.

The City of Waterville, Maine, grantee of FTZ 186, submitted a notification of proposed production activity to the FTZ Board on behalf of Flemish Master Weavers (FMW), located in Sanford, Maine. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on March 31, 2016.

The FMW facility is located at 96 Gatehouse Road, Sanford, Maine. A separate application for subzone designation at the FMW facility has been submitted and will be processed under Section 400.25 of the FTZ Board's regulations. The facility is used for the production of area rugs using polypropylene and polyester yarns. Pursuant to 15 CFR 400.14(b) of the regulations, FTZ activity would be limited to the specific foreign-status materials and components and specific finished products described in the submitted notification (as described below) and subsequently authorized by the FTZ Board.

Production under FTZ procedures could exempt FMW from customs duty payments on foreign status materials used in export production. On its domestic sales, FMW would be able to choose the duty rate during customs entry procedures that applies to area rugs (free) for the polypropylene and polyester yarns (duty rates: 8.0% and 8.8%, respectively) sourced from abroad. Customs duties also could possibly be deferred or reduced on foreign status production equipment.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is May 25, 2016.

A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the ``Reading Room'' section of the FTZ Board's Web site, which is accessible via www.trade.gov/ftz.

For further information, contact Pierre Duy at Pierre.Duy@trade.gov or (202) 482-1378.

Wednesday, April 13, 2016

Manufacturing Council Charter Renewed for Two Years

On April 13, 2016, the Dept. of Commerce published in the Federal Register (81 FR 21840) Manufacturing Council: Renewal of the Manufacturing Council Charter.
On March 25, 2016, the Department of Commerce Chief Financial Officer and Assistant Secretary for Administration renewed the charter for the Manufacturing Council (Council) for a two-year period, ending March 24, 2018. The Council is a federal advisory committee under the Federal Advisory Committee Act (5 U.S.C. App. 2).

Army Helmet Contract Awarded to Boston Firm

OPS-Core Inc., Boston, Massachusetts, was awarded a $17,526,260 firm-fixed-price foreign military sales (Austria) contract for sentry helmets and accessories. One bid was solicited with one received. Work will be performed in Boston, Massachusetts, with an estimated completion date of Aug. 2, 2016. Fiscal 2016 other procurement funds in the amount of $17,526,260 were obligated at the time of the award. Army Contracting Command, Aberdeen, Maryland, is the contracting activity (W91CRB-16-C-0017).

Tuesday, April 12, 2016

New Balance accuses Pentagon of reneging on sneaker deal

According to the Boston Globe, "New Balance is renewing its opposition to the far-reaching Pacific Rim trade deal, saying the Obama administration reneged on a promise to give the sneaker maker a fair shot at military business if it stopped bad-mouthing the agreement."

USTR and Department of Labor Issue Five-Year Update on the Colombian Labor Action Plan and Welcome New Decree on Illegal Subcontracting

Marking the five-year anniversary of the Colombian Action Plan Related to Labor Rights, the Office of the U.S. Trade Representative and the U.S. Department of Labor yesterday issued a report on progress under the plan. The report finds that there has been meaningful progress across a number of areas, including a decline in fake worker cooperatives that undermine workers’ rights, a reduction in violence against labor unionists, and a doubling of the number of labor inspectors in Colombia’s Ministry of Labor. The report also shows that there are challenges remaining that Colombia is working to address. Notably, in recent years, as the government of Colombia has taken action against illegal cooperatives, there has been increasing abuse of other kinds of subcontracting. In response, President Santos and Minister of Labor Garzon have just issued a new Presidential Decree to help inspectors investigate and apply potentially very significant fines to employers that use such other forms of subcontracting to violate labor rights. This decree is an important step forward and, if robustly enforced, could have a significant impact on the ground for workers.

In the context of congressional consideration of the U.S.-Colombia Trade Promotion Agreement, the Obama administration negotiated the Action Plan with the government of Colombia to address critical labor issues. These issues included violence against trade union members and leaders and impunity for these acts, as well as protection of core labor rights. The two governments initialed the Action Plan on April 7, 2011, and since then, the Obama administration has worked closely with Colombia to implement the plan. USTR and the Department of Labor, in coordination with the Department of State will continue to coordinate with Colombian labor authorities on ongoing issues under the plan, including through the efforts of a new Labor Attaché who was stationed at the U.S. Embassy in Bogotá in 2015 to directly support these efforts on the ground.

To view the report on the Colombian Action Plan Related to Labor Rights, please click here.

IKEA Recalls Children’s Bat Cape Costumes Due to Strangulation Hazard

Name of Product: Children’s LATTJO Bat Cape Costumes

Hazard: The fabric hook and loop fastener at the neck of the bat cape can fail to detach readily during use, posing a strangulation hazard to children.

Remedy: Refund. Consumers should immediately take the recalled bat capes away from children and return the capes to any IKEA store for a full refund.

Consumer Contact: IKEA toll-free at 888-966-4532 anytime or online at www.ikea-usa.com and click on Press Room at the bottom of the page, then Product Recalls for more information.

Photos Available At http://www.cpsc.gov/en/Recalls/2016/IKEA-Recalls-Childrens-Bat-Cape-Costumes/

Units: About 11,000 (in addition, 750 in Canada)

Description: This recall involves IKEA children’s bat cape costumes. The capes are black with gray stripes, 100% polyester, measure 30 inches long by 57 inches wide and have a fabric hook and loop fastener closure at the neck. IKEA, LATTJO and numbers 60311650 and 18937 are printed on a white label sewn into the seam of the cape.

Incidents/Injuries: IKEA has received three reports outside of the United States of the fabric hook and loop fastener at the neck of the costume failing to detach readily and scratching children’s necks.

Sold exclusively at: IKEA stores nationwide and online at www.ikea-usa.com from November 2015 through February 2016 for about $13.

Importer/Distributor: IKEA North America Services LLC, of Conshohocken, Pa.

Manufactured in: China

AAFA Releases Updates Restricted Substance List

The American Apparel & Footwear Association today released the 17th edition of the Restricted Substance List (RSL), the industry's chemical management resource for banned or restricted chemicals and substances in finished home textile, apparel, and footwear products around the world.

Friday, April 8, 2016

Agathon Associates Extracts Textile, Apparel, and Footwear Findings from USTR's NTE

On April 1, 2016, the 2016 National Trade Estimate Report on Foreign Trade Barriers ("NTE"), the 31st in an annual series that highlights significant foreign barriers to U.S. exports, was published by the Office of the United States Trade Representative ("USTR"). The full report is nearly 500 pages long.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service read a seven page extract of the trade barriers that are specific to the textile, apparel, and footwear industries at www.agathonassociates.com/textile-pri/ustr/trade-barriers-2016.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Max Home Files for Extension of FTZ for Upholstery

On April 8, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 20617) Notification of Proposed Production Activity; Max Home, LLC; Subzone 158F (Upholstered Furniture); Iuka and Fulton, Mississippi.

The Greater Mississippi Foreign-Trade Zone, Inc., grantee of FTZ 158, submitted a notification of proposed production activity to the FTZ Board on behalf of Max Home, LLC (Max Home), for its facilities in Iuka and Fulton, Mississippi. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on March 17, 2016.

Max Home previously had 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 1744, 76 FR 11425, March 2, 2011). Board Order 1744 authorized the production of upholstered furniture (chairs, seats, sofas, sleep sofas, and sectionals) for a five-year period, with a scope of authority that only provided FTZ savings on a limited quantity (2.23 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process (i.e., authorized fabrics). All foreign upholstery fabrics other than micro-denier suede finished with a hot caustic soda solution process (i.e., unauthorized fabrics) used in Max Home's production within Subzone 158F were subject to full customs duties.

The current request seeks to renew Max Home's previously approved FTZ authority indefinitely (with no increase in the company's annual quantitative limit of 2.23 million square yards) and to add foreign-status leather and certain polyurethane-type fabrics to the scope of authority. Pursuant to 15 CFR 400.14(b), additional FTZ authority would be limited to the specific foreign-status materials and components and specific finished products described in the submitted notification (as described below) and subsequently authorized by the FTZ Board.

Production under FTZ procedures could exempt Max Home from customs duty payments on the foreign-status fabrics used in export production. On its domestic sales, Max Home would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the previously authorized fabrics and the additional fabrics (indicated below). Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

Authority to admit foreign-status fabrics to Subzone 158F would only involve micro-denier suede upholstery fabrics finished with a hot caustic soda solution process (classified within HTSUS Headings 5407, 5512, 5515, 5516, 5801, and 5903), polyurethane fabrics backed with ground leather (5903.20.2500), wet coagulation process 100 percent polyurethane coated fabrics (5903.20.2500), and upholstery leather (Heading 4107), as detailed in the notification (duty rate ranges from free to 14.9%).

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is May 18, 2016.

A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 21013, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230-0002, and in the ``Reading Room'' section of the FTZ Board's Web site, which is accessible via www.trade.gov/ftz.

Army Clothing Contract Awarded

National Industries for the Blind, Alexandria, Virginia, has been awarded a maximum $8,400,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for physical fitness uniform pants. This was a mandatory set-aside acquisition. This is a one-year base contract with four one-year option periods. Locations of performance are Virginia, North Carolina and Tennessee, with an April 6, 2017, performance completion date. Using military service is Army. Type of appropriation is fiscal 2016 through fiscal 2017 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-16-D-B006).

Thursday, April 7, 2016

Ivanka Trump Scarves Recalled by GBG Accessories Group Due to Violation of Federal Flammability Standard

Ivanka Trump Scarves Recalled by GBG Accessories Group Due to Violation of Federal Flammability Standard http://www.cpsc.gov/en/Recalls/2016/Ivanka-Trump-Scarves-Recalled-by-GBG-Accessories-Group/

Name of Product: Women’s Scarves

Hazard: The scarves do not meet the federal flammability standards for clothing textiles, posing a burn risk.

Remedy: Refund. Consumers should immediately stop using the recalled scarves and return them to the place where purchased for a full refund. Consumers who purchased the scarves online will be contacted directly by online retailers with return instructions. Consumer Contact: GBG Accessories Group toll-free at 888-771-9047 between 9 a.m. and 5 p.m. ET Monday through Friday or via email at IvankaTrumpRecall@globalbrandsgroup.com for more information.

Photos Available At http://www.cpsc.gov/en/Recalls/2016/Ivanka-Trump-Scarves-Recalled-by-GBG-Accessories-Group/

Units: About 20,000

Description: This recall involves two styles of Ivanka Trump-branded scarves, Beach Wave, in blue, coral and yellow; and Brushstroke Oblong, in blue, red, neutral and green. Both scarves are 76 inches long by 24 inches wide. Scarves are 100 percent rayon with a machine-rolled hem. A black label with “IVANKA TRUMP” embroidered in silver is sewn on the edge of the scarves.

Incidents/Injuries: None reported

Sold at: Century 21, Lord & Taylor, Marshalls, TJ Maxx and Stein Mart retail stores nationwide, and online at amazon.com and loehmanns.com from October 2014 through January 2016 for between $ 12 and $68.

Importer: GBG Accessories Group (formerly LF Accessories Group, LLC), of New York

Manufactured in: China

Tuesday, April 5, 2016

Eleanor Rose Recalls Children’s Loungewear Due to Violation of Federal Flammability Standard

Recall Details

Units

About 5,900

Description

This recall involves two different styles of Eleanor Rose loungewear, including a girl’s gown and a boy or girl’s top and pants set. The loungewear was sold in sizes 12 months through size 12. “Eleanor Rose” is printed on a tag sewn into the neck of the garments and on the back outside of the pants. The style number is on a tag sewn into the side seam or inside the back of the pants. The recalled loungewear style names and numbers include:

 

Style Name

Style Number

Holly Child’s lounge set

36-PP05

Nutcracker Clara gown

37-NC01 and 60-RN02

Nutcracker lounge set

37-NC02

Noel child’s lounge set

39-NI04

Nutcracker striped lounge set

39-PJ01

Be Mine child’s lounge set

40-BM05

Be Mine Rose gown

40-BM15

Be Mine striped gown

40-BM16

Nutcracker boy’s lounge set

60-RN04

Child’s lounge set

63-SN03

Silent Night gown

63-SN13

Incidents/Injuries

None reported

Remedy

Consumers should immediately take the recalled loungewear away from children and return it to Eleanor Rose for a merchandise credit towards the purchase of another Eleanor Rose product.

Sold at

Online at www.eleanorrose.com from November 2014 through February 2016 for about $30.

Importer(s)

Eleanor Rose, of Natchez, Miss.

Manufactured in

El Salvador

DoD Announces Award of New Revolutionary Fibers and Textiles Manufacturing Innovation Hub Lead in Cambridge, Massachusetts

As part of the Department of Defense effort to partner with the private sector and academia to ensure the United States continues to lead in the new frontiers of manufacturing, today Secretary of Defense Ash Carter will announce that a leading consortium of 89 universities, manufacturers, and non-profits organized by the Massachusetts Institute of Technology (MIT) will spearhead a new manufacturing innovation institute in partnership with the Department of Defense to secure U.S. leadership in revolutionary fibers and textiles manufacturing.

Advanced Functional Fabrics of America (AFFOA) Alliance, a new non-profit research and development consortium comprised of partners from industry, academia and state governments has been selected to lead this effort following a highly competitive nationwide bid process. The agreement will be managed by U.S. Army Contracting Command - New Jersey Emerging Technologies contracting center and combines $75 million in DoD funds and nearly $250 million in cost sharing from non-federal investments for a total of over $317 million.

The institute will bring together nontraditional partners to integrate fibers and yarns with integrated circuits, LEDs, solar cells, and other capabilities to create textiles and fabrics that can see, hear, sense, communicate, store energy, regulate temperature, monitor health, change color, and more.

Read the full press release at http://www.defense.gov/News/News-Releases/News-Release-View/Article/710462/dod-announces-award-of-new-revolutionary-fibers-and-textiles-manufacturing-inno