Indictment of US Army Colonel for Berry Amendment Fraud

Thanks to Steve Warner at the BeaverLake6 Report for alerting us that Lt. Col. Frederick Lamar Burnett of the US Army has been indicted on three counts of fraud for allegedly trying to pass off Chinese-made baseball caps and backpacks instead of American made, as specified in the contract with the Army Recruiting Command which requires compliance to the Berry Amendment and Buy American Act.

The Story of Taps

Monday, May 30th, is Memorial Day in the United States, a day set aside to remember and honor those who died in the service of the nation. Government offices and most businesses will be closed.

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.

Flock School Aug 3-5, 2016

Early Bird Discount flies away on June 15th. Save $50 by enrolling early.

Full details and registration form are on the FLOCKING.ORG web site. Don't miss out!!

Also, this year's Annual Meeting will be in Charlotte on October 17 & 18. This is just before the IFAI show on October 19-21. We will be staying at the DoubleTree Hilton. Rooms are going FAST due to the show. Contact Tracy Fisher, catering manager (704) 227-2817. She currently has rooms for AFA attendees at a discounted rate, but do not delay - there is a very small inventory.

New England Golf Outing and Banquet

The New England Region AATCC Golf Outing and Banquet will be Friday, June 24, 2016, at the Cranston, Rhode Island Country Club, followed by dinner at the Venus de Milo Restraurant, Swansea, Massachusetts. To see event details and registration form CLICK HERE.

ITC Issues Report on Likely Impact of TPP

On May 18, 2016, the U.S. International Trade Commission ("USITC") released the report Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors.. With regard for textiles, apparel, and footwear, the report concluded:

Textiles and Apparel

The Commission’s model results estimate that U.S. imports of apparel would be 1.4 percent higher ($1.9 billion) as a result of TPP, compared with the 2032 baseline. These results reflect a 35.2 percent ($7.3 billion) increase in U.S. imports from new FTA partners compared with baseline estimates, which is partially offset by lower imports from non-TPP countries, including China. Vietnam in particular is expected to be the largest beneficiary in terms of increased U.S. apparel imports. Vietnam is already a competitive, major supplier of apparel to the U.S. market, ranking second after China. Nevertheless, initial growth in U.S. imports from Vietnam under TPP preferences would likely be moderated by Vietnam’s limited ability to meet the TPP's yarn forward rules of origin, coupled with long duty phaseouts for certain key products. For textiles, the Commission’s model results estimate that U.S. imports under TPP would be 1.6 percent higher ($869 million) compared with the 2032 baseline. U.S. imports of textiles and apparel from TPP countries totaled $19.9 billion in 2015, accounting for 17 percent of total U.S. textile and apparel imports from the world ($118.5 billion).

The Commission’s model results estimate that U.S. exports of textiles under TPP would be 1.3 percent higher ($257 million) than baseline economic growth, and U.S. exports of apparel would be 0.3 percent higher ($10 million) compared with the 2032 baseline. Certain textile subsectors would likely benefit more than others under TPP. According to industry sources, there may be some opportunities to increase U.S. exports of certain textiles on a limited scale to new FTA partner countries, including technical textiles and cotton and specialty yarns. U.S. exports of textiles and apparel to TPP countries totaled $7.9 billion in 2015, accounting for 54 percent of total U.S. textile and apparel exports to the world ($14.7 billion).

The largest changes in textiles and apparel trade from TPP would likely occur in U.S. imports of apparel. The Commission’s model projects that U.S. demand for both imported and domestically produced apparel would increase over the 2032 baseline. The modeling results estimate that TPP would result in a 1.4 percent ($1.9 billion) increase in U.S. imports of apparel over the 2032 baseline (i.e., expected level of imports in 2032 without TPP), and a 0.3 percent ($10 million) increase in U.S. exports. Imports of apparel would be expected to grow most significantly from Vietnam, the second-largest supplier to the United States, while those from China, the largest U.S. apparel supplier, would be expected to decline. The Commission’s model results indicate that U.S. output and employment in the apparel sector also would increase slightly (by 1.0 percent and 0.9 percent, respectively), over the 2032 projected baseline. High-end, niche products, replenishment or quick turnaround products, and other items that generally do not compete with imports are among the types of products being produced domestically. Examples of such products include those that require customized, often smaller orders, such as sports team uniforms, test market products or reorders, and fastfashion items.

The Commission’s model results for textiles (non-apparel) estimate that TPP would result in U.S exports that are 1.3 percent ($257 million) higher than the baseline estimate, and imports that are 1.6 percent ($869 million) higher, compared with the 2032 baseline. The model estimates that output and employment in the textiles sector would be slightly lower compared with the 2032 baseline (by 0.4 percent each).

Footwear

TPP would likely result in an increase in U.S. footwear trade. U.S. imports of footwear from all countries would be $1.1 billion higher (2.7 percent) than 2032 baseline growth estimates. U.S. imports of footwear from the TPP countries would be $1.6 billion higher (23.4 percent) than the baseline; most of this increase would be accounted for by imports of footwear from Vietnam. The growth in U.S. footwear imports from TPP countries is expected to occur at the expense of China and other non-TPP footwear suppliers to the U.S. market. U.S. imports from China would fall by $400 million (1.3 percent) under TPP, compared with the non-TPP baseline. TPP’s impact on U.S. footwear exports is expected to be small in absolute terms, with total U.S. footwear exports expected to be $138 million higher (12.2 percent). Most of these exports would be of footwear parts to Vietnam, to be used to assemble footwear for the U.S. market.

Pendleton® and Britannica Home Fashions® to Launch New Home Textiles Collection

PORTLAND, OR--(Marketwired - May 17, 2016) - Pendleton Woolen Mills, a globally acclaimed-lifestyle brand headquartered in Portland, Oregon and Britannica Home Fashions, a marketer and manufacturer of premium bedding and home fashions in New York City, announce a new license for Pendleton Home beginning fall 2016. The Britannica x Pendleton license will leverage Pendleton's iconic woolen blankets and design archives with companion non-wool fabrics of sateen, cotton, percale and blended fabrics from Britannica, to create exciting and unique styles for top of the bed, bath and home.

"Pendleton welcomes Britannica as a partner in the development of an exclusive collection of premium home textiles," said Bob Christnacht, Pendleton's Vice President of Global Sales. "We are thrilled to join Britannica Home Fashions in offering quality, crafted home fashions that will serve a diverse consumer demand and look forward to new Home market opportunities for the Pendleton brand."

Pendleton Home products will include, sheets, coverlets, duvets, matelassé, cotton blankets, table linens, decorative pillows and bath textiles; a graphic and textural blend of Pendleton design aesthetics and woolen blankets with Britannica's expertise of complementing non-wool fabrics.

Speaking for Britannica, Etai Gross, President, said, "We are pleased to bring our company's excellent sourcing resources and design capabilities to Pendleton Woolen Mills, already known in the industry for outstanding textiles for bed and bath. We are delighted to be associated with a significant expansion of Pendleton Home products and with growth of the brand's presence in department stores and specialty retailers."

The Britannica Home Fashions Showroom is located at 214 West 39th Street, Suite #1102, New York, New York, 10018. Britannica joins Pendleton's family of home textiles; along with Downlite and Southwest Looms.

About Pendleton
Setting the standard for classic American style, Pendleton is a lifestyle brand recognized as a symbol of American heritage, authenticity and craftsmanship. With six generations of family ownership since 1863, the company recently celebrated 153 years of weaving fabrics in the Pacific Northwest. Known for fabric innovation, Pendleton owns and operates two of America's remaining woolen mills, constantly updating them with state-of-the-art looms and eco-friendly technology. Inspired by its heritage, the company designs and produces apparel for men and women, blankets, home décor, and gifts. Pendleton is available through select retailers in the U.S., Canada, Europe, Japan, Korea and Australia; Pendleton stores; company catalogs; and direct-to-consumer channels including the Pendleton website, http://www.pendleton-usa.com.

About Britannica
Britannica Home Fashions Inc., founded in 1974, is a leader in home products. Headquartered in the heart of Manhattan's textile and fashion district, Britannica operates offices in Hong Kong, Shanghai, and New Delhi and Bangalore, India. Britannica works with key strategic partners to bring exclusive lifestyle brands to the home. BHF manufactures fashion and basic bedding, bath, and home decor. Their products are artfully made and bring year round comfort and wellness to people's lives.

Strangulation Death of a Child Prompts Recall of Roman Shades, Roll-Up Blinds, and Roller Blinds by Hanover Direct/Domestications

For recall details and photos of product, CLICK HERE.

Units: About 495,000 Roman shades and 28,500 roller/roll-up blinds (about 90,000 Roman shades were recalled in October 2009)

Description: This recall involves all styles of Roman shades with inner cords, all styles of roll-up blinds, and roller blinds that do not have a tension device. A tension device is intended to be attached to the continuous loop bead chain or continuous loop pull cord and installed into the wall or floor.

Incidents/Injuries: Roman Shades: CPSC received a new report of the death of a 22-month-old boy in Cedar Falls, Iowa who was found hanging by his neck from the outer pull cords of a Roman shade in May 2010. The outer pull cords were knotted at the bottom. He was rescued by his father but died later in the hospital. In March 2008, a 2-year-old boy from Ocean View, Delaware climbed up on a toy chest to look out of a window and became entangled in the inner cords of a Roman shade. His parents removed the cord. No permanent injuries were sustained. This incident prompted a previous recall. Roll-up Blinds: None reported. Roller Blinds: None reported.

Remedy: Consumers should immediately stop using all Roman shades with inner cords, all roll-up blinds, and all roller blinds that do not have a tension device, and contact the Window Covering Safety Council at (800) 506-4636 anytime for free repair kits or visit www.windowcoverings.org. Consumers who have roller blinds with a tension device should make sure the tension device is attached to the continuous loop bead chain or continuous loop pull cord and is installed into the wall or floor.

Sold at Hanover Direct/Domestications, the Company Store/Company Kids; online at www.domestications.com and www.thecompanystore.com; and through catalog sales nationwide from January1996 through October 2009 for between $20 and $579.

Importer(s): Hanover Direct Inc., (also known as Domestications, The Company Store, and Company Kids) of Weehawken, N.J.

Manufactured in China, United States, and other countries.

American and Colombian Labor Unions File Labor Rights Petition Citing Failures of Colombia FTA

On May 16, 2016, The American Federation Of Labor And Congress Of Industrial Organizations (AFL-CIO) Central Unitaria De Trabajadores (CUT) Confederación De Trabajadores De Colombia (CTC) Corporación Colombiana Para La Justicia Y El Trabajo (COLJUSTICIA) Sindicato Nacional De Trabajadores De La Industria Agropecuaria (SINTRAINAGRO) Unión Sindical Obrera (USO) filed Public Submission to the Office of Trade & Labor Affairs (OTLA) under chapters 17 (labor) and 21 (dispute settlement) of the Colombia-United States Trade Promotion Agreement concerning the failure of the government of Colombia to comply with chapter 17 of the colombia-united states trade promotion agreement, alleging:

The government of Colombia (GOC) has failed to comply with multiple obligations under Chapter 17 of the U.S.-Colombia Trade Promotion Agreement (TPA). The GOC has failed to effectively enforce its labor laws through a sustained and recurring course of inaction and action in a manner that affects trade and investment; waived or otherwise derogated from its statutes and regulations in a manner affecting trade or investment; failed to adopt and maintain in its statutes and regulations, and practices thereunder, the rights as stated in the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work; failed to ensure that proceedings in its administrative, judicial or labor tribunals are transparent and do not entail unwarranted delays and failed to ensure that final decisions from its administrative, judicial or labor tribunals are made available without undue delay. The GOC is therefore in violation of its obligations under Chapter 17, Articles 17.2.1 (a)-(b), 17.2.2, 17.3.1 (a), 17.4.2 and 17.4.3. (b) of the TPA, which entered into force on May 15, 2012.

The labor unions and federations and non-governmental organizations (the “petitioners”) listed on the cover page hereby jointly file this petition with the U.S. Department of Labor's Office of Trade and Labor Affairs (OTLA) in accordance with the procedures set forth at 71 Fed. Reg. 76691, Section F. Upon completing its investigation, petitioners request that the U.S. invoke Cooperative Labor Consultations under Article 17.7 of the TPA to ensure the GOC takes all measures necessary to amend its laws, regulations and procedures in accordance with ILO fundamental labor rights and address the legal, institutional, and practical obstacles to the effective enforcement of labor laws and access to justice. If these consultations fail to bring about full compliance with Chapter 17 within a year of their commencement, the petitioners urge the U.S. to invoke the dispute settlement process under Chapter 21. As described in this petition, the GOC has been out of compliance with its labor obligations since the first day the TPA went into effect. There is no legitimate reason that workers should continue to be denied their rights. Delay hurts not only the working people whose rights are denied, but all other working people whose pay and benefits are dragged down as a consequence, including workers in the U.S.

Certain Certain Warp Stretch Woven Rayon Blend Fabrics Okay'd for DR-CAFTA Short Supply

The Committee for the Implementation of Textile Agreements (``CITA'') has determined that certain warp stretch woven rayon blend fabrics, as specified below, are not available in commercial quantities in a timely manner in the CAFTA-DR countries. The product will be added to the list in Annex 3.25 of the CAFTA-DR Agreement in unrestricted quantities.

The request was filed by Grunfeld Desiderio Lerowitz Silverman & Klestadt LLP on behalf of Tang Textiles.

Product details

Product

Certain 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.

Long Awaited MTB Process Contains Two Problems for U.S. Manufacturers

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.

The last MTB passed by Congress expired on December 31, 2012. Since then, U.S. manufacturers have faced an annual $748 million tax increase on their inputs and the U.S. economy has suffered a $1.875 billion economic loss, according to an analysis by the National Association of Manufacturers. As a result, manufacturers in a broad range of industries have experienced tax burdens and lost jobs, consumers have faced higher prices, and U.S. businesses have lost their competitive edge over foreign companies.

Now, nearly three-and-a-half years after the expiration of duty suspension congress has finally started to act on much needed legislation to make U.S. manufacturers more competitive internationally.

WHAT CONGRESS DID NOT DO.

Congress did not restore the expired duty suspensions, nor even start the process of restoring them. U.S. textile producers paying import duties on inputs, such as certain acrylic and rayon fiber, not available from any domestic source will continue to pay those duties for the next several months.

WHAT CONGRESS DID.

Congress created a process for doing an MTB. The new process has the initial request for a duty suspension filed at the U.S. International Trade Commission ("ITC"), not congress. After vetting the request to assure that they conform to the standards that historically have been applied to temporary duty suspensions: (1) must have no domestic opposition, (2) must not result in more than $500,000 in lost tariff revenue, and (3) must be something that Customs can administer, the ITC will give congress a of list of recommended duty suspensions for the MTB. Congress may delete from the list but may not add to the list.

SO FAR SO GOOD, HOWEVER.

The ITC is directed to start the process no later than October 15, 2016. If, as is likely, the ITC takes until that date to start the process, then, due to various comment and response periods built into the process, the likely earliest date for those duty suspensions that expired at the end of 2016 to be restored is in the fall of of 2017. U.S. manufacturers will, likely, have to wait another 14 months or more before they can enjoy their former duty savings.

The new procedure also calls on the ITC, once the suspension are in effect, to evaluate the economic impact of the suspensions and recommend whether any duty suspensions or reductions should be made permanent by unilateral act of congress. Unilateral action making a suspension or reduction permanent raises two concerns--

1. Temporary suspensions or reductions leave open the possibility that a producer may in the future wish to enter this market, knowing that the duty will snap back with the expiration of the temporary provision.

2. Permanently zeroing out a tariff unilaterally deprives the U.S. of a bargaining tool when negotiating trade agreements.

While we cannot tell in advance whether the ITC will recommend making any duty suspension permanent, or whether congress would act on such a recommendation, the fact that the new process envisions taking what, since 1982, has been mechanism for making temporary duty suspensions and transforms it into a potential mechanism to make them permanent is troubling.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can find an annotated version of the new MTB procedures, with background, explanatory test, and likely timeline at http://www.agathonassociates.com/textile-pri/mtb/114-hr-4923-Annotated.pdf. 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.

Made in the USA Makes the News

Agathon Associates' David Trumbull was recently cited as an expert in textiles and U.S. manufacturing by USA Today in a article about U.S. apparel manufacturing and the claims of Donald Trump regarding U.S. manufacturing.

Agathon Associates' Client Bolt Threads Raises $50 Million, Forms New Partnership to Further its Mission to Deliver Sustainable, High Performance Fabrics

Bolt Threads, an American-based biotechnology company creating the next generation of high performance fabrics, today announced it has raised $50 million in Series C financing. Existing investor Formation 8 led the round, along with new investors including Nan Fung, a business conglomerate based in Hong Kong, and Innovation Endeavors. Other existing investors, including Alafi Capital, East West Capital, Foundation Capital and Founders Fund also participated.

Since launching out of stealth last year, Bolt Threads has attracted the interest of both new investors and partners, including Patagonia. The company is now producing its Engineered Silk™ protein at large scale, and is moving into yarn manufacturing this summer.

“The $1.5 trillion textiles industry hasn’t achieved a major step forward since the 1930s, with the development of nylon,” said Jim Kim, founder and managing partner of Formation 8. “Bolt Threads’ engineered and elegant silks represent an opportunity to fundamentally impact and enable properties in clothing we never dreamed would be possible. Dan and the team at Bolt Threads are visionaries who have applied new age proprietary techniques to a non-traditional technology opportunity in a big, old-world sector. We look forward to the fashion and function trends that Bolt Threads will lead in textiles.”

Bolt Threads was co-founded in 2009 by CEO Dan Widmaier, Chief Scientific Officer David Breslauer, and Vice President of Operations Ethan Mirsky. The three were fascinated with natural silk, its properties and the process of its production in nature. This curiosity led them to develop technology to produce Engineered Silk™ made wholly of natural proteins, creating a sustainable and durable new material. Together with partners like Patagonia, Bolt Threads is pioneering more sustainable and non-toxic processes for textile manufacturing.

“Manmade fabrics like nylon and polyester have transformed the fashion industry, for better and for worse,” said Widmaier. “The use of hydrocarbon polymers in these textiles has created a lingering toxic problem for the environment. At Bolt Threads, we’re re-thinking textile manufacturing, producing high performance materials that are also not nearly as harmful to the environment as existing options. It’s an incredibly important and challenging problem to solve and we’re excited to collaborate with Patagonia and other partners to make cleaner textile production a reality.”

ABOUT BOLT THREADS

The material world is about to get a whole new material. Bolt Threads is creating the next generation of performance fibers and fabrics using proprietary breakthroughs in industrial biotechnology. Working at the molecular level, Bolt Threads will transform the textiles market, turning renewable raw materials into products with outstanding properties that meet specific consumer needs.

Upholstered Furniture Manufacturer Imports Flocked Fabrics from Israel

In two April 5, 2016, letter (N273746 and N273747) U.S. Customs and Border Protection ruled that two flocked upholstery fabrics, consisting of a substrate of 65% polyester and 35% cotton, coated with man-made fiber flock, is classified at 5907.00.6000 of the Harmonized Tariff Schedule of the United States. The rate of duty is zero. The fabrics will be imported by Flexsteel Industries, Inc. of Dubuque, Iowa. The unusual thing is the country of origin, Israel. The classification 5907.00.6000 covers many coated or laminated textiles including flock, and total U.S. imports from all nations totaled over $25 million in 2015, however, Israel is not one of the top shippers of this commodity, shipping under $1 million to the U.S. in 2015.

Setting the Record Straight

Agathon Associates was contacted today by FactCheck.org, a political fact-checking website run by the Annenberg Public Policy Center at the University of Pennsylvania, to confirm, or refute, Donald Trump's statement, Sunday, on ABC's "This Week," regarding dress shirts and neckties, "“they don’t even make this stuff here.” And also confirm or refute Geroge Stephanopoulos' statement in return that Brooks Brothers does. The answer is mixed. Brooks Brother's does make their shirts and ties in USA, at least according the VP of Manufacturing in a 2013 statement, however they are made of foreign components, so they cannot legally be labeled "Made in USA" but must be labeled "Made in USA of Foreign Fabric."

Burlington Apparel Awarded Army Contracts

Burlington Apparel, Greensboro, North Carolina, has been awarded a maximum $20,088,000 modification (P00112) exercising the third option period of a one-year base contract (SPM1C1-13-D-1052) with four one-year option periods for Army poly/wool cloth. This is a fixed-price with economic price adjustment contract. Location of performance is North Carolina, with a May 12, 2017, performance completion date. Using military service is Army. Type of appropriation is fiscal year 2016 through fiscal 2017 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Burlington Apparel, Greensboro, North Carolina, has been awarded a maximum $14,044,800 modification (P00113) exercising the third option period of a one-year base contract (SPM1C1-13-D-1051) with four one-year option periods for Army poly/wool cloth. This is a fixed-price with economic price adjustment contract. Location of performance is North Carolina, with a May 12, 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.

Army and Air Force Boot Contract Awarded

Weinbrenner Shoe Co., Merrill, Wisconsin, has been awarded a maximum $14,464,069 modification (P00106) exercising the fourth one-year option period of a one-year base contract (SPM1C1-12-D-1040), with four one-year option periods for hot weather boots. This is a firm-fixed-price contract. Location of performance is Wisconsin, with a May 6, 2017, performance completion date. Using military services are Army and Air Force. 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.

Customs Proposes Change to Classification of Certain Compression Hose

In ruling letter NY N235286, Customs and Border Protection ("CBP") classified two styles of graduated compression hosiery under heading 6115, HTSUS, specifically in subheading 6115.30.90, HTSUS, which provides for “Panty hose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted: Other women’s full-length or knee-length hosiery, measuring per single yarn less than 67 decitex: Other.” The rate of duty for this classification is 14.6%.

CBP has reviewed ruling letter NY N235286 and has determined the ruling letter to be in error. It is now CBP’s position that the two styles of graduated compression hosiery are properly classified, by operation of GRIs 6 and 1, in heading 6115, HTSUS, specifically in subheading 6115.10.05, HTSUS, which provides for “Panty hose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted: Graduated compression hosiery (for example, stockings for varicose veins): Surgical panty hose and surgical stockings with graduated compression for orthopedic treatment.” The rate of duty will be zero.

Pursuant to 19 U.S.C. §1625(c)(1), CBP is proposing to revoke ruling letter NY N235286 and to revoke or modify any other ruling not specifically identified to reflect the new analysis. Additionally, pursuant to 19 U.S.C. §1625(c)(2), CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.

The importer is Total Vein Systems Inc. and was represented by the law firm Neville Peterson LLP.

Before taking this action, consideration will be given to any written comments received by June 3, 2016.

[Source: Customs Bulletin and Decisions Vol. 50, No. 18, May 4, 2016.]

Manufacturing Council to Meet May 18th via Teleconference

On May 4, 2016, the Dept. of Commerce published in the Federal Register (81 FR 26774) Meeting of the United States Manufacturing Council.

The United States Manufacturing Council (Council) will hold an open meeting via teleconference on Wednesday, May 18, 2016. The Council was established in April 2004 to advise the Secretary of Commerce on matters relating to the U.S. manufacturing industry. The purpose of the meeting is for Council members to review and deliberate on proposed recommendations by the Trade, Tax Policy, and Export Growth Subcommittee focused on tax policy and the Trans-Pacific Partnership and a proposed recommendation by the Workforce Subcommittee focused on career pathways to the manufacturing secto.r

The textile industry is represented on the Council by Jenny Houston, Executive Vice President, Warwick Mills; New Ipswich, N.H., who appointed in February, 2015, by Secretary of Commerce Penny Pritsker.

Army Trouser Contract Awarded

Tullahoma Industries LLC, Tullahoma, Tennessee, has been awarded a maximum $59,389,738 modification (P00137) exercising the third one-year option period of a one-year base contract (SPM1C1-13-D-1050) with four one-year option periods for four types of Army trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Tennessee, Alabama, North Carolina, Mississippi, and Puerto Rico, with a May 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.

Absecon Mills in the News

Absecon Mills "is not just hanging on, it’s growing," according to an article in the Press of Atlantic City.