Copyright 2015, Agathon Associates, Consultants in Textiles and Trade, Blog by David Trumbull
Wednesday, September 28, 2016
AGOA TPLs Announced
Bipartisan Congressional Group Ask for GAO Review of FTZ Program, Especially at Relating to Textiles
Specific they request that the GAO conduct a review of FTZ Board processes and implementation of the regulations in cases involving textile inputs that includes, but is not limited to, the following:
1) The review and evaluation of all of the required factors in the chapeau of Section 400.27;
2) The review and evaluation of the threshold tests contained in Section 400.27(a) of the regulations;
3) The review and evaluation of the net economic effect test in Section 400.27(b) of the regulations;
4) The role of other offices or agencies such as the Commerce Department Office of Textiles and Apparel (OTEXA) in the FTZ Board's evaluation.
The request was submitted by Senator Amy Klobuchar Amy [Dem. Minnesota], Senator Al Franken [Dec., Minnesota], Senator Pat Roberts [Rep., Kansas], Senator Cory Gardner [Rep., Colorado], and Representative Tom Emmer [Rep., Minnesota, 6th].
Learn more about FTZs at http://www.agathonassociates.com/textile-pub/ftz/index.htm.
Tuesday, September 27, 2016
U.S.-Chile FTA to Allow Third-Country Filament Rayon in Certain Woven Fabrics
On September 23, 2016, the Committee for the Implementation of Texile Agreements ("CITA") released (Publication Number: 4632 Investigation Number: U.S.-Chile FTA-103-029) Probable Economic Effect of Certain Modifications to the U.S.-Chile FTA Rules of Origin.
U.S. negotiators have reached agreement in principle with representatives of the government of Chile on certain modifications to the ROOs in Chapter 3 and Annex 4.1 of the Agreement.
The current Chile FTA rule allows woven fabrics of artificial filament yarns (including rayon yarns) classified in heading 5408 to receive the preferential duty treatment only (1) if they are made with originating artificial filament yarns (or with originating cotton, wool/fine animal hair, or other manmade filament yarns) and (2) if all other non-originating inputs are classified in other tariff chapters.
The proposed modification would create a separate rule for fabrics classified in subheadings 5408.22–5408.23. The modification would be liberalizing because it would allow covered dyed and yarn-dyed woven fabrics to be eligible for preferential duty treatment under the Chile FTA even if they are made of non-originating rayon filament yarns. However, even for those fabrics classified in subheadings 5408.22–5408.23, the rule would still require non-rayon artificial filament yarns (e.g., cellulose acetate) or any other manmade fiber filament yarns to be originating in order to qualify for the FTA preferences. Moreover, the existing rule’s criteria would remain the same for fabrics classified in HTS subheadings 5408.10–5408.21 and 5408.24–5408.34, even though new individual ROOs would be established for these two groups of HTS provisions.
The proposed modification would likely have a negligible effect on U.S. imports under the Chile FTA and on total U.S. imports. In 2015, 74 percent of U.S. imports from Chile under subheadings 5408.22–5408.23 qualified for the preferential rate of duty under current Chile FTA provisions. The trade-weighted average tariff rate on U.S. imports from Chile was less than 0.5 percent ad valorem for goods covered by the proposed modification. U.S. imports from Chile accounted for less than 0.7 percent of total U.S. imports of these goods in 2015.
The effect of the proposed modification on total U.S. exports would also likely be negligible. The United States did not export the subject fabrics of rayon yarns to Chile in 2015; in 2014, U.S. exports of these goods represented less than 1 percent of total U.S. exports of such goods. Chile imposes a 6 percent ad valorem MFN rate of duty on its imports under subheadings 5408.22 and 5408.23.15
The effect on U.S. production would likely be negligible because the net effect on total U.S. trade in the subject fabrics is expected to be negligible. In addition, U.S. industry sources indicated there is no domestic production of rayon yarns used in the subject fabrics; therefore, there would be no effect on U.S. producers of the subject yarns.
ITC Issues Interim MTB Rules
On September 21, 2016, The U.S. International Trade Commission (USITC) issued Rules Relating to the Submission and Consideration of Petitions for Duty Suspensions and Reductions; Interim rule with request for comments. Within a few days the interim rule will be published in the Federal Register after which interested persons will have 60 days to submit comments.
Friday, September 23, 2016
Best Chair Seeks Expanded FTZ Authority
On September 23, 2016 the Foreign Trade Zone Board published in the Federal Register (81 FR 65626) Foreign-Trade Zone (FTZ) 177--Evansville, Indiana; Notification of Proposed Production Activity; Best Chairs, Inc. d/b/a Best Home Furnishings (Upholstered Furniture); Ferdinand, Cannelton and Paoli, Indiana.
Best Chairs, Inc. d/b/a Best Home Furnishings (Best Home) submitted a notification of proposed production activity to the FTZ Board for its facilities in Ferdinand, Cannelton and Paoli, Indiana within FTZ 177. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on September 14, 2016.
The Best Home facilities are located within Sites 5, 6, and 7 of FTZ 177 and currently have authority to conduct cut-and-sew activity using certain foreign micro-denier suede upholstery fabrics and polyurethane fabrics to produce upholstered furniture and related parts (upholstery cover sets) on a restricted basis (Board Order 1807 and Doc. B-35-2014). Board Order 1807 authorized the production of upholstered furniture (sofas, sectionals, loveseats, chairs, and recliners) for a five-year period, with a scope of authority that only provides FTZ savings on a limited quantity (2.28 million square yards per year) of foreign origin, micro-denier suede upholstery fabric finished with a hot caustic soda solution process. Doc. B-35-2014 expanded the company's scope of authority to include certain polyurethane fabrics. All foreign upholstery fabrics other than micro-denier suede finished with a hot caustic soda solution process, polyurethane fabrics backed with ground leather, and wet coagulation process, 100 percent polyurethane coated fabrics used in Best Home's production within FTZ 177 are subject to full customs duties.
The current request seeks to extend Best Home's existing FTZ authority indefinitely (with no increase in the company's annual quantitative limit of 2.28 million square yards) and to add foreign-status leather and non-textile foreign-status components to the scope of authority. This request also seeks to clarify certain HTSUS numbers that apply to the company's existing authority for micro-denier suede upholstery fabric finished with a hot caustic soda solution process. 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 Best Home from customs duty payments on the foreign-status components used in export production. On its domestic sales, Best Home would be able to apply the finished upholstery cover set (i.e., furniture part) or finished furniture duty rate (free) for the authorized fabrics and additional components (indicated below). Customs duties also could possibly be deferred or reduced on foreign-status production equipment.
The components sourced from abroad include: Micro-denier suede fabric finished with a hot caustic soda finishing process; upholstery leather; linear actuators and motors; transformers; power adaptors; handset controllers; power cables; and, Y-cables (duty rate ranges from 1.6% to 17.2%). The request indicates that upholstery leather will be admitted to the zone in privileged foreign status (19 CFR 146.41), thereby precluding inverted tariff benefits on upholstery leather. All other foreign, unauthorized upholstery fabrics or other components used in the production activity would continue to be admitted to the zone in domestic (duty paid) status.
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 November 2, 2016.
Wednesday, September 21, 2016
CPSC Addresses Upholstered Furniture Flammability
DoD Clothing Contracts Awarded
Pentaq Manufacturing Corp., Sabana Grande, Puerto Rico, has been awarded a maximum $18,456,470 modification (P00138) exercising the third one-year option of a one-year base contract (SPM1C1-13-D-1074), with four one-year option periods for various types of trousers. The modification brings the maximum dollar value of the contract to $35,531,001 from $17,074,531. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Puerto Rico, Alabama, and North Carolina, with a Sept. 23, 2017, ordering period end date, and an estimated performance completion date of Sept. 23, 2018. Using customers are the Army and the Afghanistan government. Types of appropriation are fiscal 2016 through 2017 defense working capital funds and foreign military sales funds. The contracting activity is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.
Tuesday, September 20, 2016
2015 Foreign-Trade Zone Report Released
During the year, the FTZ Board received and docketed 85 requests, and issued 87 decisions. The FTZ Board’s decisions included the establishment of four new foreign-trade zones, the reorganization or expansion of 22 zones under the alternative site framework (ASF), as well as decisions on 54 applications and notifications for new or expanded production authority. Under delegated authority, the FTZ Board Staff processed an additional 181 requests that included minor boundary modifications and scope determinations.
There were 186 FTZs active during the year, with a total of 324 active production operations. Over 420,000 persons were employed at some 2,900 firms that used FTZs during the year. The value of shipments into zones totaled nearly $660 billion, compared with $798 billion the previous year (Appendix A). About 63 percent of the shipments received at zones involved domestic status merchandise. The level of domestic status inputs used by FTZ operations indicates that FTZ activity tends to involve domestic operations that combine foreign inputs with significant domestic inputs. Warehouse/distribution operations received nearly $228 billion in merchandise while production operations received over $431 billion (65 percent of zone activity). The largest industries accounting for zone production activity include the oil refining, automotive, electronics, pharmaceutical, and machinery/equipment sectors.
Air Force Contract for Wool Blend Fabric Awarded
Friday, September 16, 2016
Burma Okay'd for GSP Benefits
Thursday, September 15, 2016
AFA 31st Annual Meeting
The American Flock Association annual meeting will be in Charlotte, NC on October 17th and 18th, 2016. Following the meeting the AFA will be exhibiting at the IFAI EXPO , October 19th -21st.
Featured at this years meeting will be a visit and tour of the Lubrizol Advanced Materials manufacturing facilities in Gastonia. There will also be presentations relating to the Flock industry.
Click here for a registration form and further details.
ITC To Begin Accepting Requests for Tariff Suspensions October 14th
On September 14, 2016, The U.S. International Trade Commission (USITC) has rolled out a web page to provide information about how it plans to implement new duties related to the miscellaneous tariff bill (MTB) process.
The Commission’s MTBInfo page can be found here: https://www.usitc.gov/mtbps
The American Manufacturing Competitiveness Act of 2016 (AMCA) directs the USITC to establish a process for the submission and consideration of petitions for duty suspensions and reductions.
In the past, U.S. importers would request that Members of Congress introduce bills seeking to temporarily suspend or reduce tariffs on certain imports. The Commission would review and produce reports for Congress on each bill, and the House Ways and Means and Senate Finance Committees would then combine the individual bills in a single MTB for Congressional consideration.
Under the AMCA, likely beneficiaries must now file a petition directly with the Commission. The Commission will publish and request public comment on the petitions received and issue preliminary and final reports recommending certain petitions for inclusion in an MTB for Congressional consideration.
The web page launched by the Commission is an information site and will be updated as new documents and information are released. The agency will post all key documents (notices, rules, etc.) on the page as they are issued, along with informational articles, tips for filing and commenting on MTB petitions, and other useful materials. Information on contacts is also provided on the page.
The USITC is building a web-based MTB portal to be used for filing and commenting on MTB petitions. The filing and commenting process will be entirely electronic; no paper submissions will be accepted. When the petition process launches on October 14, the MTB portal will become the main MTB page. In the meantime, the newly launched web page is where anyone interested in the process can turn for up-to-date information and access to documents.
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.
Wednesday, September 14, 2016
CBP Announces Changes to Broker Exam
Here are some of the changes proposed:
- Transition from paper exam to electronic Exam,
- The exam will be moved from the first Monday of April and October to the fourth Monday of April and October,
- The fee for taking the exam will double, from $200 to $390, and
- A never used provision for a special exam outside of the regularly scheduled semi-annual exams will be eliminated.
MORE INFORMATION
To allow for greater flexibility in test administration and for the transition from a paper and pencil format to computer automated exams, CBP proposes to remove the word ``written'' before examination in paragraph (a)(4) (19 CFR 111.11(a)(4)). The automated examination will be held at private testing centers and administered by professional proctors. These spaces will each be equipped with computers programed to accommodate the examination while blocking web access. Examinees are only permitted access to those resources allowed to be brought into the examination as listed on cbp.gov. Examination automation presents many benefits for both the applicant as well as CBP. First, automation will provide faster notification of test scores to the examinee. In addition, CBP expects examination automation to help standardize the testing environment and equipment for all examinees across the country. For CBP, automation decreases the staff and administrative resources necessary to conduct the examination.
The regulations currently provide that examinations will be given on the first Monday in April and October. In the past few years, CBP has started the new fiscal year operating under a Continuing Resolution passed by the U.S. Congress. This fiscal uncertainty has created a logistical challenge in meeting the payment schedule required by the OPM. To allow more time between the start of the fiscal year and the October examination, CBP proposes to adjust the examination dates to the fourth Monday in April and October.
The current examination fee is $200. (19 CFR 111.13(b).) As part of the review of the customs brokers regulations, CBP conducted a fee study and determined that a fee of $390 is necessary to recover the costs associated with administering the customs broker license examination. A fee study documenting the proposed fee change, entitled ``Customs Broker License Examination Fee Study,'' has been included in the docket of this rulemaking (Docket No. USCBP-2016-0059). The examination fee has remained at $200 since 2000 and has not been adjusted to account for inflation. In addition, the cost to deliver the examination is expected to increase. CBP has relied upon port staff to administer the examination using mainly government facilities and a few hotel sites. With automated examinations, CBP will need to hire proctors and reserve testing centers. As a result, CBP proposes to increase the examination fee from $200 to $390.
Comments must be received on or before November 14, 2016.
See the Federal Register notice HERE
Thursday is Felt Hat Day
Friday, September 9, 2016
U.S. Agrees to Short Supply for Certain Woven Fabrics for Womenswear in Morocco FTA
U.S. negotiators have reached agreement in principal with representatives of the government of Morocco on proposed modifications to the FTA textile and apparel rules of origin. They reflect preliminary determinations that the U.S. and Moroccan producers are unable to produce certain fabrics and described in the letter below.
On September 8, 2016, the United States International Trade Commission announced a newly initiated investigation concerning proposed modifications of the United States-Morocco Free Trade Agreement (U.S.-Morocco FTA) rules of origin.
The United States International Trade Commission (USITC) is seeking input on a newly initiated investigation concerning proposed modifications of the United States-Morocco Free Trade Agreement (U.S.-Morocco FTA) rules of origin.
The investigation, Probable Economic Effect of Certain Modifications to the U.S.-Morocco FTA Rules of Origin, was requested by the U.S. Trade Representative (USTR) in a letter received on August 24, 2016. The letter included an attachment detailing the certain textile and apparel articles affected by the proposed modifications.
As requested by the USTR, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed U.S.-Morocco FTA rules of origin modifications on U.S. trade under U.S.-Morocco FTA, total U.S. trade, and on domestic producers of the affected articles.
The USITC expects to submit its advice to the USTR by January 24, 2017. A public version of the report, with all confidential business information deleted, will be released as soon as possible thereafter.
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 not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on October 13, 2016.
Agathon Associates has examined the six specific modifications requested in the letter and has prepared an unofficial summary:
- Certain women's apparel of woven fabric of 100% rayon,
- Women's skirts of woven cotton corduroy,
- Women's skirts of woven polyester corduroy,
- Women's pants of woven bi-stretch fabric of a certain blend of polyester, rayon, and spandex,
- Women's pants of woven fabric of a certain blend of polyester, rayon, and spandex, and
- Women's pants of herringbone weave fabric of a certain blend of rayon, polyester, cotton, wool, nylon, and spandex.
The preliminary determination of "short supply" covers but a subset of the several requests from the government of Morocco submitted from November 2015 through April 2016. The other requests, including those relating to swimsear, are still pending. U.S. manufacturers with an interest in any of the pending requests are urged to continue dialogue with the Morocco apparel manufactures involved and with the U.S. government. Agathon Associates has compiled a list of all the requests and public responses for the convenience of clients. That list may be accessed at www.agathonassociates.com/textile-pri/morocco/short-supply.htm. To access the list you will need your username and password. If you have forgotten your username and password, email David Trumbull at david@agathonassociates.com.
Thursday, September 8, 2016
USITC Launches Investigation of Certain Athletic Footwear.
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain athletic footwear. The products at issue in the investigation are athletic running and training footwear with specific sole technology.
The investigation is based on a complaint filed by Reebok International Ltd. of Canton, MA, and Reebok International Limited of London, England, on August 10, 2016. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain athletic footwear that infringe patents asserted by the complainants. The complainants request that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
TRB Acquisitions LLC of New York, NY;
RBX Active 01 LLC of New York, NY;
RBX DIRECT LLC of New York, NY;
RBX.COM LLC of New York, NY; and
Elite Performance Footwear, LLC, of New York, NY.
By instituting this investigation (337-TA-1018), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
Wednesday, September 7, 2016
American Woolen Company Is Conducting Its First Sample Sale.
Yardage from sample inventory is available for sale on a first come first serve basis.
Prices provided upon request.
To order or for questions, please contact the mill at (800) 456-WOOL (9665) or call NYC Sales office at (212) 575-1838.
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Fabric Style: 1218-3-5 Description: Lawrence Collection - A heritage Houndstooth colored in seasonal smoky grey's - Jacketing Light Flannel, 100%Wool. Width: 59" |
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Fabric Style: 1218-7-9 Description: Lawrence Collection - A muted Windowpane plaid woven in a rich heathered bark brown, with soft blue accents - Jacketing Light Flannel, 100%Wool. Width: 59" |
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Fabric Style: 1018-1-17 Description: Lawrence Collection - Misty blue and silver coloring refresh a timeless twill weave with a luxurious soft finish - Jacketing, 100%Wool. Width: 59 |
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Fabric Style: 1019-1-36 Description: Lawrence Collection - Iconic indigo tones woven in a timeless twill weave with a luxurious soft finish - Jacketing, 100%Wool Width: 59" |
Pendleton® Releases BB-8 And “Rogue One: A Star Wars Story” Themed Limited Edition Blankets
Pendleton Woolen Mills, a globally acclaimed lifestyle brand headquartered in Portland, Oregon, introduces new Pendleton blankets as a tribute to “Star Wars: The Force Awakens” and “Rogue One: A Star Wars Story.”
Taking center stage in the design of the new BB-8 blanket is Star War’s newest, gentle astromech droid, the fifth blanket in the Pendleton Star Wars Classic series, designed as a companion piece to the four Pendleton Star Wars blankets launched in 2015 on Force Friday. Inspired by the film, the BB-8 blanket design features a palette of orange to blue fade, a depiction of the sunset against the desert sand, homage to where BB-8’s journey began in “Star Wars: The Force Awakens.”
“Rogue One: A Star Wars Story” is represented with dark tones symbolizing Darth Vader’s evil reputation, as he’s seen lurking in the background of the blanket, and the Imperial Death Star looming overhead of the three Resistance Forces shown in readied defense. Emotive and courageous warriors, Jyn, K-2SO and Cassian are sure to gain most-favored-status among Star Wars characters.
To celebrate these iconic characters of Star Wars fame, Pendleton created limited edition blankets. Each blanket is made in America and woven in Pendleton’s own Pacific Northwest Mill. They feature the same quality and craftsmanship for which Pendleton is legendary. Pendleton Woolen Mills, known among Star Wars fans for the Force Friday offering of collector Star Wars blankets, expands the opportunity to own treasured, registered memorabilia of the movie.
Bob Christnacht, VP Pendleton Sales said, “We are pleased once again to offer heirloom quality, pop culture blankets to delight Star Wars enthusiasts. Loyal, compassionate and comic,BB-8 is forever fixed in our heart, loved by young and old alike, the perfect character for a special blanket. The fearless threesome, Jyn, K-2SO and Cassian exemplify the spirit of the Rebel Force, committed to defeating their Imperial foes.”
Pendleton’s blankets featuring BB-8 and “Star Wars: Rogue One” provide a special occasion to commemorate the most anticipated films of all time and offer a toast to the characters’ popularity. The edition size is limited to 1977 units for each of the four blanket offering.
“Star Wars: The Force Awakens” BB-8 and “Rogue One” blankets are available for pre-order on September 2nd, 2016 at http://www.pendleton-usa.com, and available October 15, 2016 at specialty retailers and select Pendleton Retail Stores and Outlets.
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.
Media contact:
Linda Parker
Linda.parker(at)penwool(dot)com
503.535.5754
STAR WARS and related properties are trademarks and/or copyrights, in the United States and other countries, of Lucasfilm Ltd. and/or its affiliates. © & TM Lucasfilm Ltd.
