United States, Korea to Hold Amendment Negotiations on KORUS FTA

On December 28, 2017, United States Trade Representative Robert Lighthizer announced that negotiations on amendments and modifications of the United States-Korea Free Trade Agreement (KORUS FTA) will be held in Washington, D.C. on January 5, 2018. The United States delegation at the meeting will be led by Michael Beeman, Assistant U.S. Trade Representative for Japan, Korea and APEC. The Republic of Korea delegation at the meeting will be led by Ms. Myung-hee Yoo, Director General from the Ministry of Trade, Industry and Energy (MOTIE). With the recent completion of related domestic procedures in Korea, both delegations are meeting on January 5, 2018 to engage and advance negotiations to improve the KORUS FTA.

In July, 2017, at the direction of President Trump, Ambassador Lighthizer initiated talks to consider matters affecting the operation of the KORUS FTA, including amendments and modifications to resolve several problems regarding market access in Korea for U.S. exports and, most importantly, to address the significant trade imbalance. In 2017, the United States and Korea convened two specials sessions of the KORUS Joint Committee, which were held on August 22, 2017 and October 4, 2017.

Request for Comments and Notice of a Public Hearing Regarding the 2018 Special 301 Review

Each year, the Office of the United States Trade Representative conducts a Special 301 review to identify countries that deny adequate and effective protection of intellectual property rights (IPR) or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. Based on this review, the United States Trade Representative (Trade Representative) determines which, if any, of these countries to identify as Priority Foreign Countries. USTR requests written comments that identify acts, policies, or practices that may form the basis of a country's identification as a Priority Foreign Country or placement on the Priority Watch List or Watch List. USTR also requests notices of intent to appear at the public hearing.

DATES: February 8, 2018 at midnight EST: Deadline for submission of written comments, hearing statements, and notices of intent to appear at the hearing from the public.

February 22, 2018 at midnight EST: Deadline for submission of written comments, hearing statements, and notices of intent to appear at the hearing from foreign governments.

February 27, 2018: The Special 301 Subcommittee will hold a public hearing at the Office of the United States Trade Representative, 1724 F Street NW, Rooms 1 & 2, Washington, DC. If necessary, the hearing may continue on the next business day. Please consult the USTR website for confirmation of the date and location and the schedule of witnesses.

March 2, 2018 at midnight EST: Deadline for submission of post-hearing written comments from persons who testified at the public hearing.

On or about April 30, 2018: USTR will publish the 2018 Special 301 Report within 30 days of the publication of the National Trade Estimate (NTE) Report.

Trump Administration Enforces Trade Preference Program Eligibility

Washington, D.C. – U.S. Trade Representative Robert Lighthizer applauded President Trump’s decision last Friday to suspend some of Ukraine’s benefits under the Generalized System of Preferences Program (GSP), restore GSP eligibility for Argentina, and restore eligibility for The Gambia and Swaziland to the African Growth and Opportunity Act (AGOA).

"President Trump has sent a clear message that the United States will vigorously enforce eligibility criteria for preferential access to the U.S. market,” said Ambassador Lighthizer. “Beneficiary countries choose to either work with USTR to meet trade preference eligibility criteria or face enforcement actions. The Administration is committed to ensuring that other countries keep their end of the bargain in our trade relationships.”

Ukraine’s partial suspension from GSP stems from its failure to provide adequate and effective protection of intellectual property rights (IPR) despite years of encouragement and assistance from the U.S. Government. The President has decided to provide 120 days’ notice in this case because the Government of Ukraine has a viable path to remedy the situation, including improving the current legal regime governing royalty reimbursement to right holders’ organizations.

Argentina is being reinstated to the GSP program effective January 1, 2018 following resolution of certain arbitral disputes with U.S. companies, new commitments by the Argentine government to improve market access for U.S. agricultural products, and improved protection and enforcement of IPR. Due to certain remaining IPR issues, the restoration of GSP benefits for Argentina will not apply to all eligible products.

The Gambia lost its AGOA eligibility in 2015 due to human rights abuses and the deterioration of the rule of law. Following democratic elections in December 2016, The Gambia has made progress in strengthening the rule of law, improving human rights, and supporting political pluralism.

Swaziland lost AGOA eligibility in 2015 due to concerns over restrictions on the freedoms of peaceful assembly, association, and expression. The United States set a series of benchmarks related to lifting restrictions on freedoms of assembly, association, and expression Swaziland would need to meet to regain AGOA eligibility. Swaziland met the last of these benchmarks in November 2017.

USTR is conducting a separate AGOA out-of-cycle review for Rwanda, Tanzania, and Uganda in response to a petition asserting that their phased ban on imports of used clothing is negatively impacting U.S. jobs. This review is ongoing.

Background

Under U.S. trade preferences programs, including GSP and AGOA, certain products can enter the United States duty-free if beneficiary countries meet the eligibility criteria established by Congress. GSP criteria include, among others, respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access. AGOA eligibility criteria include making progress toward establishing political pluralism, the rule of law, and a market-based economy; elimination of barriers to U.S. trade and investment; protection of internationally recognized worker rights; a system to combat corruption and bribery; and economic policies to reduce poverty.

Wohali Outdoors Recalls Children’s Sleepwear Due to Violation of Federal Flammability Standard; Sold Exclusively at Bass Pro Shops

This recall involves children’s 100 percent polyester, three-piece pajama sets that include a printed long-sleeve shirt, pants and a coordinating solid color robe that has matching printed lapels and cuffs. The sets have a printed label with “BASS PRO SHOPS” on the back of the neck of the long-sleeve shirt and robe and at the back of the pants. Each of the garments also has a sewn-in side label that has “RN number 74747” printed on it, and underneath that label another sewn-in label that has PO# 3515 or 3516, a style number, and the phone number 1-800-BASS PRO. Only sleepwear in the style numbers below and with a label identifying PO# 3515 or 3516 are included in the recall.

Style Number	Style Description
6904536	Deer Camo - pink print top and bottom; solid pink robe with pink print lapel and cuffs
6904537	Pretty Pony - pink print top and bottom; solid purple robe with pink print lapel and cuffs
6904538	Woodland Critters - white print top and bottom; solid pink (coral) robe with white print lapel and cuffs
6904539	Holiday Critters - cream print top and bottom; solid red robe with cream print lapel and cuffs
6904540	Deer Camo - tan print top and bottom; solid brown robe with tan print lapel and cuffs
6904541	Holiday Moose - gray print top and bottom; solid dark gray robe with gray print lapel and cuffs
6904542	Wolf - green print top and bottom; solid green robe with green print lapel and cuffs
6904543	Bear - gray print top and bottom; solid gray robe with gray print lapel and cuffs

Remedy: Consumers should immediately take the recalled pajama sets away from children and contact Wohali for instructions on receiving a pre-paid shipping label to return the pajama sets to Wohali in exchange for a full refund in the form of a Bass Pro gift card.

Incidents/Injuries: None reported

Sold Exclusively At: Bass Pro Shops stores, catalog, and online at basspro.com from October 2016 through August 2017 for about $25.

Importer(s): Wohali Outdoors LLC, of Broken Arrow, Okla.

Manufactured In: China.

MORE INFO AND PHOTOS.

Superior Importers Recalls Mattresses Due to Violation of Federal Mattress Flammability Standard; Sold Exclusively at Amazon.com

Recall Details

Description: This recall involves Basic 6-inch and Basic 8-inch models Home Life mattresses sold in twin, full, queen and king sizes. Recalled matresses are ivory with tan and gray. “Made For: Superior Importers company, 502 Jersey Avenue, New Brunswick, NJ 08901”is printed on a white tag located on the top side near the foot of the mattress.

Remedy: Consumers should immediately stop using the recalled mattresses and contact Superior Importers or the place of purchase for instructions on receiving a free mattress cover to bring the mattress into compliance with the federal standard.

Incidents/Injuries: None reported

Sold Exclusively At: Amazon.com from May 2016 through May 2017 for between $50 and $150.

Manufacturer(s): ABEST Technology Co., Ltd., of China

Importer(s): Superior Importers, LLC, of New Brunswick, N.J.

Manufactured In: China

USTR Lighthizer Announces Results of Special 301 Out-of-Cycle Review of Thailand

U.S. Trade Representative Robert Lighthizer recently announced the conclusion and results of the Special 301 Out-of-Cycle Review (OCR) of Thailand, including moving Thailand from the Priority Watch List to the Watch List.

“A key objective of the Trump Administration’s trade policy is ensuring that U.S. owners of intellectual property (IP) have a full and fair opportunity to use and profit from their IP around the globe,” said Ambassador Lighthizer. “The key to promoting innovation is protecting intellectual property. We welcome the corrective actions that Thailand has taken and look forward to continuing to work with Thailand to resolve our remaining IP concerns.”

The Trump Administration has been closely engaging with Thailand on improving IP protection and enforcement as part of the bilateral U.S.-Thailand Trade and Investment Framework Agreement. This engagement has yielded results on resolving U.S. IP concerns across a range of issues, including on enforcement, patents and pharmaceuticals, trademarks, and copyright.

For example, Thailand established an interagency National Committee on Intellectual Property Policy and a subcommittee on enforcement against intellectual property infringement, led by the Prime Minister and a Deputy Prime Minister, respectively. This strong level of interest from the highest levels of the government led to improved coordination among government entities, as well as enhanced and sustained enforcement efforts to combat counterfeit and pirated goods throughout the country.

Thailand also has been taking steps to address backlogs for patent and trademark applications, including significantly increasing the number of examiners and streamlining regulations. In addition, Thailand joined the Madrid Protocol, making it easier for U.S. companies to apply for trademarks, and took steps to address concerns regarding online piracy affecting the U.S. content industry.

Other results include a commitment from Thailand to improve transparency related to pharmaceutical issues, such as taking stakeholder input into account as it considers amendments to its Drug Act and providing interested stakeholders with regular consultation opportunities with the Thai Food and Drug Administration.

In light of Thailand’s progress, USTR is closing the OCR that was initiated on September 15, 2017, and is moving Thailand from the Special 301 Priority Watch List to the Watch List. The United States will continue to engage bilaterally with Thailand to address other remaining IP concerns, which are highlighted in the 2017 Special 301 Report.

U.S. dollar procurement thresholds to implement certain U.S. trade agreement obligations

The United States Trade Representative is required by Executive Order 12260 to set the U.S. dollar thresholds for the WTO Agreement on Government Procurement and free trade agreements. U.S. obligations under these agreements apply to covered procurement valued at or above the specified U.S. dollar thresholds. The thresholds are adjusted every two years.

The United States Trade Representative has determined the U.S. dollar procurement thresholds to implement certain U.S. trade agreement obligations, as of January 1, 2018, for calendar years 2018 and 2019.

I. World Trade Organization (WTO) Agreement on Government Procurement

A. Central Government Entities listed in U.S. Annex 1: (1) Procurement of goods and services--$180,000; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in U.S. Annex 2: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in U.S. Annex 3: (1) Procurement of goods and services--$555,000; and (2) Procurement of construction services--$6,932,000.

II. Chapter 15 of the United States-Australia Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 15-A, Section 1: (1) Procurement of goods and services--$80,317; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 15-A, Section 2: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 15-A,

Section 3: (1) Procurement of goods and services for List A Entities-- $401,584; (2) Procurement of goods and services for List B Entities-- $555,000; (3) Procurement of construction services--$6,932,000.

III. Chapter 9 of the United States-Bahrain Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9-A-1: (1) Procurement of goods and services--$180,000; and (2) Procurement of construction services--$10,441,216.

B. Other Entities listed in the U.S. Schedule to Annex 9-A-2: (1) Procurement of goods and services for List B entities--$555,000; and (2) Procurement of construction services--$12,851,327.

IV. Chapter 9 of the United States-Chile Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section A: (1) Procurement of goods and services--$80,317; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section B: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 9.1, Section C: (1) Procurement of goods and services for List A Entities-- $401,584; (2) Procurement of goods and services for List B Entities-- $555,000; (3) Procurement of construction services--$6,932,000.

V. Chapter 9 of the United States-Colombia Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section A: (1) Procurement of goods and services--$80,317; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section B: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 9.1, Section C: (1) Procurement of goods and services for List B Entities-- $555,000; (2) Procurement of construction services--$6,932,000.

VI. Chapter 9 of the Dominican Republic-Central American-United States Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9.1.2(b)(i), Section A: (1) Procurement of goods and services--$80,317; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 9.1.2(b)(i), Section B: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 9.1.2(b)(i),

Section C: (1) Procurement of goods and services for List B Entities--$555,000; (2) Procurement of construction services--$6,932,000.

VII. Chapter 17 of the United States-Korea Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 17-A, Section A: (1) Procurement of construction services--$6,932,000.

VIII. Chapter 9 of the United States-Morocco Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9-A-1: (1) Procurement of goods and services--$180,000; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 9-A-2: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 9-A-3: (1) Procurement of goods and services for List B Entities-- $555,000; (2) Procurement of construction services--$6,932,000.

IX. Chapter 10 of the North American Free Trade Agreement

A. Federal Government Entities listed in the U.S. Schedule to Annex 1001.1a-1: (1) Procurement of goods and services--$80,317; and (2) Procurement of construction services--$10,441,216.

B. Government Enterprises listed in the U.S. Schedule to Annex 1001.1a-2: (1) Procurement of goods and services--$401,584; and (2) Procurement of construction services--$12,851,327.

X. Chapter 9 of the United States-Oman Free Trade Agreement

A. Central Level Government Entities listed in the U.S. Schedule to Annex 9, Section A: (1) Procurement of goods and services--$180,000; and (2) Procurement of construction services--$10,441,216.

B. Other Covered Entities listed in the U.S. Schedule to Annex 9, Section B: (1) Procurement of goods and services for List B Entities-- $555,000; (2) Procurement of construction services--$12,851,327.

XI. Chapter 9 of the United States-Panama Trade Promotion Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section A: (1) Procurement of goods and services--$180,000; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section B: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 9.1, Section C: (1) Procurement of goods and services for List B Entities-- $555,000; (2) Procurement of construction services--$6,932,000.

D. Autoridad del Canal de Panam[aacute] (1) Procurement of goods and services--$555,000.

XII. Chapter 9 of the United States-Peru Trade Promotion Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section A: (1) Procurement of goods and services--$180,000; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 9.1, Section B: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 9.1, Section C: (1) Procurement of goods and services for List B Entities--$555,000; (2) Procurement of construction services--$6,932,000.

XIII. Chapter 13 of the United States-Singapore Free Trade Agreement

A. Central Government Entities listed in the U.S. Schedule to Annex 13A, Schedule 1, Section A: (1) Procurement of goods and services--$80,317; and (2) Procurement of construction services--$6,932,000.

B. Sub-Central Government Entities listed in the U.S. Schedule to Annex 13A, Schedule 1, Section B: (1) Procurement of goods and services--$492,000; and (2) Procurement of construction services--$6,932,000.

C. Other Entities listed in the U.S. Schedule to Annex 13A, Schedule 1, Section C: (1) Procurement of goods and services--$555,000; (2) Procurement of construction services--$6,932,000.

2018 Quota for Haiti Value-Added Program Published

On December 15, 2017, the U.S. Department of Commerce published in the Federal RegisterLimitation of Duty-Free Imports of Apparel Articles Assembled in Haiti Under the Haitian Hemispheric Opportunity Through Partnership for Encouragement Act ("HOPE").

HOPE provides for duty-free treatment for certain apparel articles imported directly from Haiti. One of the preferences under HOPE is known as the "value-added" program, which requires that apparel meet a minimum threshold percentage of value added in Haiti, the United States, and/or certain beneficiary countries. The program is subject to a quantitative limitation, which is calculated as a percentage of total apparel imports into the United States for each 12-month annual period. For the annual period from December 20, 2017 through December 19, 2018, the quantity of imports eligible for preferential treatment under the value-added program is 361,603,399 square meters equivalent.

Missouri woman pleads guilty to counterfeit Louis Vuitton scheme

A southwestern Missouri woman pleaded guilty in federal court last Wednesday to smuggling counterfeit Louis Vuitton material into the United States so that she could make and sell counterfeit merchandise on her website.

This guilty plea resulted from an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the IRS Criminal Investigation division.

Tonya Virtue, 33, of Mountain Grove, Missouri, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of smuggling goods into the United States.

Virtue admitted that she sold approximately $50,000 worth of counterfeit Louis Vuitton items through her online store, Soul Sisters, to customers throughout the United States. Virtue received shipments of fabric and material affixed with counterfeit Louis Vuitton trademarks and logos from an overseas Chinese manufacturer between Jan. 1 and Sept. 27, 2017. Virtue created counterfeit handbags, purses and other items from the counterfeit fabric, which she sold to consumers who believed they were purchasing items created by Louis Vuitton.

Under the terms of her plea agreement, Virtue must forfeit to the government $50,000 derived from the proceeds of the criminal scheme, as well as 17 Louis Vuitton clutch bags, 34 Louis Vuitton shoulder bags, 4 Louis Vuitton duffle bags, 9 Louis Vuitton wallets, 5 incomplete Louis Vuitton shoulder bags, 3 13-by-55-foot sheets of Louis Vuitton material, 1 15-by-55-foot sheet of Louis Vuitton material, 60 13-by-26-inch sheets of Louis Vuitton material, 36 Louis Vuitton-branded boxes.

Under federal statutes, Virtue is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and IRS-Criminal Investigation..

Missouri man pleads guilty to counterfeit airbag scheme

A southwestern Missouri man pleaded guilty in federal court last Wednesday to a scheme to sell counterfeit automotive airbags and components online.

This guilty plea resulted from an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the IRS – Criminal Investigation division.

Aleksey Illyuk, 28, of Ozark, Missouri, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of mail fraud and one count of smuggling goods into the United States.

Illyuk admitted he sold counterfeit automotive airbags and airbag components on his online eBay stores, CarPro 417 and CarPro Electronics. Illyuk received shipments from various Chinese manufacturers of airbags, airbag covers and other items that contained the trademarks of Honda, Toyota, Chevy, Ford and other companies. Each of these imported airbags contained trademarks and markings that made it appear the legitimate holder of the trademark had manufactured the airbags. Illyuk fraudulently marketed these items as airbags that had been manufactured by the legitimate trademark holder, when he knew that the parts were counterfeit and not manufactured by the legitimate trademark holder.

Illyuk sold approximately $120,000 worth of counterfeit items to consumers throughout the United States through his online stores from Jan. 1, 2015, to Aug. 17, 2017. The fact that the airbags and the airbag components parts were counterfeit and not manufactured by the legal holders of the displayed trademark or logo on the item was never truthfully disclosed to the consumers.

Under the terms of his plea agreement, Illyuk must forfeit to the government $103,000 obtained from the proceeds of his illegal scheme, as well as 150 counterfeit Toyota airbags and component parts (including 24 inflators and fully assembled airbags); 77 counterfeit Honda airbags and component parts (including 4 fully assembled airbags); 70 counterfeit Chevy/GMC airbags and component parts; 54 counterfeit Ford airbags and component parts; 207 counterfeit Nissan airbags and component parts (including 2 fully assembled airbags, 102 name plates, and 25 airbag covers); 8 counterfeit Infiniti airbag covers; 10 counterfeit Accura airbags and component parts; 13 counterfeit Hyundai airbags and component parts; 7 counterfeit BMW airbags and component parts (including 5 fully assembled airbags); 4 counterfeit Subaru airbags and component parts; 4 counterfeit Lexus fully assembled airbags; 1 counterfeit Mazada airbag and component part; and $17,000 seized by law enforcement agents.

Under federal statutes, Illyuk is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by ICE HSI and IRS-Criminal Investigation.

Dream On Me Recalls Crib & Toddler Bed Mattresses Due to Violation of Federal Mattress Flammability Standard

Recall Details

This recall involves Dream On Me spring and foam mattresses for cribs and toddler beds. The recalled mattresses were sold in a variety of colors and prints. The model number and date of manufacture are printed on a tag on the top center of the mattress.

 

Mattress	Color/Print	Model	Date of Manufacture Range
Évolur Sleep Ultra Crib and Toddler Bed Mattress	white	849	between January 1, 2016 and December 19, 2016
Évolur Sleep Deluxe Crib and Toddler Bed Mattress	white	850	between January 1, 2016 and December 19, 2016.
Sweet Dreams 6” 88 Coil Spring Crib and Toddler Bed Mattress in Blue	white with blue clouds	87	between January 1, 2016 and December 19, 2016
88 Coil Inner Spring Standard Crib & Toddler Mattress	white	88	between January 1, 2016 and December 19, 2016
Visco Pedic Innerspring Standard Mattress in Blue star	blue star	150V_1	between January 1, 2016 and December 19, 2016
Convoluted Orthopedic Inner Spring Standard Crib & Toddler Mattress	white print	150C	between January 1, 2016 and December 19, 2016
Firm Foam Crib and Toddler bed mattress	white print	6E6WL	between January 1, 2016 and December 19, 2016
5" Foam Crib & Toddler Bed Quilted Standard Mattress	quilted bear print	5B5	between January 1, 2016 and December 19, 2016.
5” Round Foam Crib Mattress	white	42R	between January 1, 2016 and December 19, 2016.
5" Thick Round Crib Mattress	white	40R1	between January 1, 2016 and December 19, 2016

Remedy: Consumers should immediately stop using the recalled mattresses and contact Dream On Me to receive a free mattress cover to bring the mattress into compliance with the federal flammability standard.

Incidents/Injuries: None reported

Sold At: Amazon.com, Kohls.com, ToyRUs.com, Walmart.com and Wayfair.com from January 2016 through December 2016 for between $40 and $90.

Manufacturer(s): Dream On Me, of Piscataway, N.J.

Manufactured In: U.S.

Units: About 23,400

Dept. of Defense T-Shirt Contract Awarded

Heart & Core LLC, Minnetonka, Minnesota, has been awarded a maximum $7,920,000 modification (P00004) exercising the first one-year option of a one-year base contract (SPE1C1-17-D-1018) with four one-year option periods for tan and brown moisture-wicking t-shirts. The modification brings the maximum dollar value of the contract to $11,381,418 from $3,461,418. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Minnesota and California, with a Dec. 15, 2018, performance completion date. Using military services are Army, Air Force, Navy and Coast Guard. Type of appropriation is fiscal 2018 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania

One Stop Shop Recalls Children’s Pajamas Due to Violation of Federal Flammability Standard: Sold Exclusively at Foreman Mills

Recall Details

Description: This recall involves children’s 100 percent cotton knit, two-piece, long-sleeve top and pant pajama sets. They were sold in three different styles: Santa Claus print with a white button and black and gold belt screenprint; Elf screenprint with a white Peter Pan collar, three red buttons and a black and gold belt; and reindeer screenprint on the top with a Faire Isle pattern on the pant and a reindeer on the top. “Mad Engine” “RN 129993” and the size are on the neck label. The pajama sets were sold in children’s sizes XXS, XS, S, M, L and XL. Mad Engine claims these recalled pajama sets are counterfeit.

Remedy: Consumers should immediately take the recalled pajamas away from children and contact One Stop Shop for a full refund.

Incidents/Injuries: None reported

Sold At: Foreman Mills stores nationwide from September 2016 through November 2017 for about $6.

Importer(s): Karmin Industries, of Canada

Distributor(s): One Stop Shop, LLC, of Feeding Hills, Mass.

Manufactured In: China

Units: About 350

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Defense Contractor to Pay $1.5 Million Fine for False Made in USA Claims

The United States Attorney’s Office in St. Louis announced, November 30, 2017, that Seiler Instrument & Manufacturing Company, Inc., a defense contractor, will pay the United States $1.5 million in forfeiture based on the company's use of optical materials imported from China in the weapons sights which the company manufactured under a series of contracts with the Department of Defense. The company admits that the parts were improperly certified as compliant with the Buy American Act.

More Than 190 Organizations Urge Congress to Boost Manufacturing by Passing the MTB

On December 6, 2017, more than 190 organizations, representing industries ranging from chemicals, agriculture, textiles and footwear to electrical equipment, machinery and sporting equipment, sent a letter to Congress urging expedited passage of the Miscellaneous Tariff Bill (MTB) Act of 2017.

ANNOUNCING PANTONE 18-3838 ULTRA VIOLET, PANTONE® COLOR OF THE YEAR 2018.

Inventive and imaginative, Ultra Violet lights the way to what is yet to come...READ MORE.

Bolt Threads Announces Bioengineered Spider Silk/Wool Cap in Limited Edition

The first of its kind, the Best Made Microsilk™ Cap of Courage is only available in an extremely limited edition of 100 units. The cap is knit from bioengineered silk that has an identical molecular structure to spider silk. This groundbreaking fiber is the result of extensive research and development by California-based Bolt Threads: a team of scientists, engineers, and apparel experts who are devoted to innovating high-performance fabrics inspired by nature. We combined this radically new, soft and sustainable fiber with American Rambouillet wool from Wyoming. The Best Made Microsilk™ Cap of Courage is not only groundbreaking but extremely warm, resilient, and available in 10 designs that come presented in an official box.

Notice to the Trade: Gimped Yarn is Exemption from the Yarn Forward Rule in US FTAs

In 14 free trade agreements ("FTAs") the United States is currently a partner to, non-originating gimped yarn, or for that matter any non-originating article classified in Chapter 56 of the HTSUS, contained in a textile or apparel article of Chapters 50 through 55, or Chapters 57 through 63, does not disqualify an otherwise qualifying article from the benefits of the FTA. Although the texts of the agreements seem clear on the matter, there has been some question, particularly as it relates to DR-CAFTA.

On May 20, 2008, CBP issued letter N028235, ruling, "The non DR-CAFTA [gimped] yarns, used in the production of the hosiery, meet the terms of the tariff shift rule. Therefore [the hosiery articles] are entitled to a free rate of duty under the DR-CAFTA." On June 12, 2009, CBP published in Customs Bulletin Vol. 43, No. 24 a proposal to revoke that ruling and bring gimped yarn under the yarn forward rule. CBP received 18 comments and, in end, on January 27, 2010, published in Customs Bulletin Vol. Vol. 45, No. 5 that it was withdrawing the proposal. Subsequently, On May 7, 2014, CBP issued letter HQ H236917, ruling, again, that, "The hosiery at issue containing non-originating elastomeric [gimped] yarn qualifies as originating goods under the DR-CAFTA."

Army Uniform Contract Awarded

Goodwill Industries of South Florida Inc., Miami, Florida, has been awarded a maximum $18,626,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Army combat uniform coats and trousers. This is a one-year contract with no option periods. Location of performance is Florida, with a May 31, 2019, estimated performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-N025).

CPSC Participating by Phone in the ASTM E05.15 Subcommittee Meeting on Furnishings and Contents

On December 7, 2017, Andrew Lock, Consumer Product Safety Commission staff member, will be participating by phone in the ASTM E05.15 subcommittee meeting on furnishings and contents to discuss upholstered furniture flammability standards development.

USTR Statement on Report of Global Forum on Steel Excess Capacity

The Office of the U.S. Trade Representative released the following statement in response to the Report of the Global Forum on Steel Excess Capacity, concluded in Berlin, Germany, November 30, 2017. The Global Forum on Steel Excess Capacity commenced under the G20 Leaders’ call for a forum to address steel excess capacity worldwide.

“The United States welcomes international engagement and initial steps in addressing steel excess capacity issues. Progress on recommendations, information sharing plans and additional scheduled meetings must give way to real policy changes. Much work remains.

“The Forum has not made meaningful progress yet on the root causes of steel excess capacity, and pointing to short-term developments and worn out promises will not cure the fundamental causes of the problem. Addressing the ongoing steel excess capacity situation will require immediate and sustained concrete action by all steelmakers, including allowing markets to function, removing market-distorting subsidies and other forms of state support, and treating state-owned enterprises and private steelmakers equally. This view is shared by nearly all Forum members, and we welcome this recognition.

“The Report issued today contains many helpful policy prescriptions, but it fails to highlight the recurring failure of some countries to implement true market-based reforms in the steel sector. In addition, the Report does not contain complete information regarding market-distorting measures in certain economies and does not set forth a clear pathway for filling such data gaps. The Report erroneously suggests that simply setting capacity reduction targets has been an effective response to the crisis, when in fact meaningful progress can only be achieved by removing subsidies and other forms of state support and letting markets do their work.

“The United States remains fully engaged in working with Forum members for strong actions to address the root causes of the global steel excess capacity crisis. At the same time, the United States will not hesitate to use the tools available under legal authorities to firmly respond to the causes and consequences of steel excess capacity.”

The 33 Members of the Global Forum agreed on a report with six guiding principles for governments on the basis of which the OECD has worked closely with members to develop specific policy recommendations – concrete policy solutions the G20 Leaders asked for over one year ago. These emphasize the importance of having the right policy framework conditions; they call for the removal of subsidies and other measures that distort steel markets; they stress the need for a level playing field among steel enterprises of all types of ownership; they highlight the importance of the Forum regularly updating its information on capacity and policy measures.

Defense Contracts Awarded

NewView Oklahoma Inc., Oklahoma City, Oklahoma, has been awarded a maximum $49,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for type II non-metallic hose assemblies. This is a five-year contract with no option periods. This is a mandatory source item designated for the National Industries for the Blind with one offer received. Location of performance is Oklahoma, with a Nov. 30, 2022, performance completion date. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8EG-18-D-0057).

NewView Oklahoma Inc., Oklahoma City, Oklahoma, has been awarded a maximum $45,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for type I non-metallic hose assemblies. This is a five-year contract with no option periods. This is a mandatory source item designated for the National Industries for the Blind with one offer received. Location of performance is Oklahoma, with a Nov. 30, 2022, performance completion date. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8EG-18-D-0056).

Military Shoe Contract Awarded

Wolverine World Wide Inc., Rockford, Michigan, has been awarded a maximum $9,049,853 modification (P00010) exercising the second one-year option period of one-year base contract (SPE1C1-16-D-1026) with three one-year option periods for men's poromeric shoes. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Michigan, with a Dec. 1, 2018, performance completion date. Using customers are Army, Air Force, Marine Corps and Coast Guard. Type of appropriation is fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Klaussner Upholstered Furniture FTZ Approved

On November 28, 2017, the Foreign Trade Zone Board published in the Federal Register (82 FR 56211) Foreign-Trade Zone (FTZ) 230--Piedmont Triad Area, North Carolina; Authorization of Production Activity Klaussner Home Furnishings (Upholstered Furniture) Asheboro and Candor, North Carolina.

On July 24, 2017, Klaussner Home Furnishings submitted a notification of proposed production activity to the FTZ Board for its facility within Subzone 230D, in Asheboro and Candor, North Carolina.

The notification was processed in accordance with the regulations of the FTZ Board (15 CFR part 400), including notice in the Federal Register inviting public comment (82 FR 37191-37192, August 9, 2017).

On November 21, 2017, the applicant was notified of the FTZ Board's decision that no further review of the activity is warranted at this time. The production activity described in the notification was authorized, subject to the FTZ Act and the FTZ Board's regulations, including Section 400.14, and further subject to a restriction requiring that lithium ion batteries be admitted to the subzone in privileged foreign status (19 CFR 146.41) or domestic status (19 CFR 146.43).

This is the latest of three FTZ filings from Klaussner. Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service read more at www.agathonassociates.com/textile-pri/ftz/2017-48-B.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.

Textile Issues in USTR NAFTA Negotiating Objectives

Textile Issues in USTR NAFTA Negotiating Objectives

On November 17, 2017 United States Trade Representative Robert Lighthizer released an updated summary of the negotiating objectives for the renegotiation of the North American Free Trade Agreement (NAFTA).

The document contains many statements of U.S. negotiating positions of interest to all American business, including textiles and apparel, but among the points laid out are three that standout of as of particular significance to U.S. textile manufacturers:

1. "Maintain existing duty-free access to NAFTA country markets for U.S. textile and apparel products and seek to improve competitive opportunities for exports of U.S. textile and apparel products while taking into account U.S. import sensitivities."
2. "Establish origin procedures that streamline the certification and verification of rules of origin and that promote strong enforcement, including with respect to textiles."
3. Keep in place domestic preferential purchasing programs such as Department of Defense procurement." Among the domestic preference requirements in Defense procurement is the Berry Amendment, which requires all DoD acquisitions of textiles and clothing to be of U.S. origin, from fiber to finished product.

Customs Proposes to Revoke Certain Travel Goods Rulings

In Binding Ruling Lettes NY 868779 and NY 871870, from 1991 and 1992, CBP classified two textile money belts in heading 4202 of the Harmonized Tariff Schedule of the United States (HTSUS), specifically in subheading 4202.32.95, HTSUS, as articles of a kind normally carried in the pocket or in the handbag, with an outer surface of textile materials. CBP has reviewed NY 868779 and NY 871870 and has determined the ruling letters to be in error. It is now CBP’s position that the subject money belts are properly classified in heading 4202, HTSUS, specifically in subheadings 4202.92.15 and 4202.92.31, HTSUS, as travel, sports and similar bags, with an outer surface of textile materials.

CBP is proposing to revoke NY 868779, modify NY 871870, and revoke any treatment previously accorded by CBP to substantially identical transactions.

Comments must be received on or before December 27, 2017.

BACKGROUND

In NY 868779 and 871870, CBP concluded that money belts, measuring 17.5 inches by 4.75 inches and 16 inches by 4.5 inches, respectively, were “of a kind” normally carried in the pocket or a handbag. This conclusion, CBP now believes, was incorrect. These money belts are not designed to be carried inside any other bag or container; they are designed to fasten around the waist precisely so that they can be transported by themselves, without the need for any other kind of container. Placing either money belt inside a pocket or handbag would defeat the entire purpose of the article, which is to provide secure, easy and unobstructed access to money and other small valuables. Taking the money belt out of the pocket or purse in order to remove the valuables stored within would be an extra, unnecessary step. Additionally, at a width of 17 and 16 inches, both money belts are too large to fit inside most handbags and pockets.

THE FULL TEXT is available HERE, beginning on page 25.

Sen. Schumer Block Two Trump Trade Nominees

U.S. Senate Minority Leader Charles E. Schumer has announced that he will place a hold on two Department of Commerce nominations, that of Gil Kaplan for Undersecretary of Commerce for International Trade, and Nazakhtar Nikakhtar for Assistant Secretary of Commerce, Industry and Analysis.

Navy Clothing Contract Awarded

Excel Garment Manufacturing Ltd., El Paso, Texas, has been awarded an estimated $9,490,500 modification (P00062) exercising the third one-year option period of a one-year base contract (SPE1C1-15-D-1012) with four one-year option periods for Navy coveralls. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Texas, with a March 31, 2019, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2018 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

CPSC Attending the UL Furniture Flammability and Human Health Summit

On December 12-14, 2017, Andrew Lock and Allyson Tenney, Consumer Product Safety Commission Directorate for Laboratory Sciences, as well as Kris Hatlelid, CPSC Directorate for Health Sciences, will attend the UL Furniture Flammability and Human Health Summit to present on and discuss furniture flammability issues with industry, academic, and government representatives at Emory University Conference Center, Atlanta Georgia.

In addition, CPSC's Andrew Lock will be participating by phone in the ASTM E05.15 subcommittee meeting on furnishings and contents to discuss upholstered furniture flammability standards development on December 7, 2017.

Pima Agriculture Cotton Trust Fund

On November 27, 2017, the Department of Agriculture published in the Federal register (82 FR 55985) Submission for OMB Review; Comment Request (Pima Agriculture Cotton Trust Fund).

DoD Clothing Contract Awarded

M&M Manufacturing, LLC, Lajas, Puerto Rico, has been awarded a maximum $7,079,188 modification (P00023) exercising the fourth one-year option period of a one-year base contract (SPM1C1-14-D-1015) with four one-year option periods for various types of coats and trousers. The modification brings the maximum dollar value of the contract to $30,970,285 from $23,891,097. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico, with a May 28, 2019, estimated performance completion date. Using customers are Air Force and Afghanistan government. Types of appropriation are fiscal 2018 through 2019 defense working capital and foreign military sales funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Customs Brokers User Fee Payment for 2018

U.S. Customs and Border Protection, Department of Homeland Security has given notice to customs brokers that the annual user fee that is assessed for each permit held by a broker, whether it may be an individual, partnership, association, or corporation, is due by January 26, 2018. Pursuant to fee adjustments required by the Fixing America's Surface Transportation Act and CBP regulations, the annual user fee for calendar year 2018 will be $141.70.

Woolino Recalls Children’s Pajamas Due to Violation of Federal Flammability Standard

Recall Details

Description: This recall involves children’s 100 percent merino wool one-piece, long-sleeve, footed pajamas. They have a blue, gray, lilac or lilac gray horizontal stripe print and a zipper that extends from the center of the neckline down to the left ankle. The sleepwear was sold in sizes 6-12 months, 12-18 months, 18-24 months and 2T. Woolino and the size are printed on the back of the neckline.

Remedy: Consumers should immediately take the recalled sleepwear away from children and contact Woolino for a full refund.

Incidents/Injuries: None Reported

Sold At: Clothes Pony and Caro Bambino stores nationwide and online at Amazon.com, Zulily.com and Woolino.com from May 2015 through November 2017 for between $50 and $60.

Importer(s): Jojo Group LLC, of Rocky River, Ohio

Distributor(s): Woolino, of Westlake, Ohio

Manufactured In: China

Units: About 4,100

Trilateral Statement on the Conclusion of the Fifth Round of NAFTA Negotiations

Yesterday in Mexico City, the negotiating teams of Mexico, Canada and the United States concluded the fifth round of the renegotiation and modernization of the North American Free Trade Agreement (NAFTA), gathering nearly 30 negotiating groups. In response to ministerial instructions at the end of the fourth round, chief negotiators concentrated on making progress with the aim of narrowing gaps and finding solutions. As a result, progress was made in a number of chapters. Chief negotiators reaffirmed their commitment to moving forward in all areas of the negotiations, in order to conclude negotiations as soon as possible. Ministers have agreed to hold the sixth round of negotiations from January 23 to 28, 2018, in Montréal, Canada. In the meantime, negotiators will continue their work in intersessional meetings in Washington, D.C., through mid-December and will report back to chief negotiators on the progress achieved.

Agathon Associates Wishes You Happy Thankgiving

Agathon Associates, will be closed Thursday, November 23rd, in celebration of Thanksgiving Day, a major holiday in the United States. All government offices and most businesses will be closed for the day. Many business, other than retail, will also be closed on Friday, the 24th.

“Whereas it is the duty of all Nations to acknowledge the providence of Almighty God, to obey his will, to be grateful for his benefits, and humbly to implore his protection and favor…I do recommend and assign Thursday the 26th day of November next to be devoted by the People of these States to the service of that great and glorious Being, who is the beneficent Author of all the good that was, that is, or that will be…”
—George Washington, 1789 (from the first National Thanksgiving Day Presidential Proclamation)

The Pilgrims, Puritans, Huguenots, Quakers, Anabaptists, Lutherans, Jews, Catholics, deists, and atheists who came to America in the colonial period found here freedom not possible in the lands of the Old World where an established church was the norm. Their descendants founded the United States on a radical and untried principle -- no religious establishment and no government interference with religion. What a surprise then to find that the very first Presidential Proclamation issued was Washington’s Thanksgiving Day call to prayer to Almighty God.

Indeed, the only distinctly American holiday is the fourth Thursday in November, which we set aside to thank God for our blessings. Think about it. Christmas is celebrated worldwide, even in lands where Christians are a small minority. Every nation celebrates New Year’s Day and the various national holidays commemorating great leaders, important battles, and the date of national founding.

Our distinctly American national holiday is a re-enactment -- and re-interpretation for contemporary multi-ethnic and multi-religious American culture -- of that first Thanksgiving in Plymouth, Massachusetts, celebrated by survivors of the Mayflower passage. And, yet, the story is not narrowly the tale of the Pilgrims. Few Americans are literally Mayflower descendants. Most of us do not trace our roots to East Anglia. Most of us do no follow their reformed Calvinist religion. Nevertheless, their story is the American story. It is the story of families that left their homeland for a better life in America.

Did your people come here on sailing ships in the 17th, 18th, or 19th century? Or were they part of the big steamship migration of the late 19th and early 20th century that filled Boston with Irish and Italians? Or perhaps you are a more recent immigrant. Whenever your people came here and by whatever means, they, and you, are part of the narrative we re-tell every Thanksgiving.

Effect of Restriction on DHS's Purchasing of Foreign Textiles Is Limited, Says GAO

Passed in 2009, the Kissell Amendment restricts the Department of Homeland Security to procuring uniforms and other textiles from U.S. manufacturers, with certain exceptions. DHS has incorporated the restriction into its procurement policies and practices.

But the United States Government Accountability Office ("GAO") found, due in part to exceptions, that the restriction has limited effect. For example, procurements must be made in accordance with U.S. trade agreements, which means most DHS offices must treat certain textiles made in 128 countries the same as domestic products. As a result, 58 percent of funds spent to order uniforms under the current DHS contract are for imported items.

Read the report HERE.

Smart Fabrics Summit Registration is Now Open

Registration is now open for the 2018 Smart Fabrics Summit co-hosted by IFAI and the Department of Commerce.

Smart Fabrics Summit provides a forum for public and private sector leaders in technology, apparel and textiles to highlight recent developments, identify opportunities for collaboration and discuss public policies that could accelerate the design and manufacture of smart fabrics products by U.S. companies.

This Event Features

• Panel discussions and presentations by leading experts
• Demonstrations of the latest innovations and smart fabrics
• Networking with industry professionals

Seating is limited and expected to sell out!

USTR Releases Updated NAFTA Negotiating Objectives

On November 17, 2017 United States Trade Representative Robert Lighthizer released an updated summary of the negotiating objectives for the renegotiation of the North American Free Trade Agreement (NAFTA).

This update marks the first time USTR has released a second updated version of negotiating objectives. The new objectives update the previous objectives published on July 17, 2017, in accordance with Section 5(a)(1)(D) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015.

“This update is an important next step in ensuring that the American people continue to know what the Trump Administration is seeking to achieve in a renegotiated NAFTA,” said Ambassador Lighthizer. “If we are able to achieve these objectives, we will both modernize and rebalance NAFTA to better serve the interests of our workers, farmers, ranchers and businesses.”

This latest transparency action builds on USTR’s unprecedented, rigorous consultations with Congress and private sector advisory committees throughout the renegotiation process.

USTR engagement on NAFTA renegotiations includes:

• Hundreds of hours and dozens of meetings in consultations with Congress, including over three dozen meetings directly with Members of Congress.
• Continued transparency through on-going proactive consultations with members of the private sector, labor representatives, farmers, ranchers, and non-governmental organizations. Including, extensive engagement with trade related advisory committees.
• Three days of public hearings, featuring testimony from over 140 witnesses (June 27-29).
• Careful review of over 12,000 public comments for crafting the NAFTA objectives.
• Consultation meetings with the Senate Finance Committee and the House ways and Means Committee as well as meetings before the House and Senate Advisory Groups on Negotiations.

The updated objectives reflect the goals of text proposals the United States has tabled in the NAFTA negotiations with Canada and Mexico. The objectives include increased market access for agriculture, new transparency and administrative measures, expanded investment and intellectual property objectives, and completed negotiations on the chapters of Competition and Small- and Medium-Sized Enterprises. The objectives retain the first-ever USTR objective for trade deficit reduction, in addition to trade distortion prevention measures.

USTR’s objectives underscore the goals of updating NAFTA to the best 21st century standards and rebalancing the benefits of the deal. Through the NAFTA renegotiations, the Administration seeks freer markets, fairer trade, and robust economic growth.

Background

At the direction of the President, on May 18, 2017, Ambassador Lighthizer sent a letter notifying Congress of the Administration’s intent to initiate NAFTA renegotiations. This action started the clock on a 90-day consultation period, during which extensive consultations took place with the public, the private sector, and Congress.

In accordance with the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, USTR released negotiating objectives at least 30 days prior to formal negotiations, which began on August 16, 2017.

To date, the NAFTA countries have held four rounds of negotiations, with a fifth round being held November 17-21, 2017. During these negotiating rounds, the United States has put forward substantially all of the initial U.S. text proposals, including new text in 27 chapters of NAFTA. The Trump Administration remains committed to moving expeditiously toward a deal for fair, reciprocal trade for America’s workers, farmers, ranchers, and businesses.

U.S.-Morocco Free Trade Agreement Frequently Asked Questions (FAQ’s)

On November 16, 2017, U.S. Customs and Border Protection published these U.S.-Morocco Free Trade Agreement Frequently Asked Questions (FAQ’s)

Question #1: Where can I find information on importing from Morocco under the U.S.-Morocco Free Trade Agreement (MAFTA)?

Answer #1: For questions about importing from Morocco under the U.S.-Morocco FTA, see the U.S. Customs and Border Protection (CBP) Morocco FTA page by searching “Morocco” at www.cbp.gov.

Question #2: What information is available on the www.cbp.gov U.S.-Morocco (MAFTA) FTA webpage?

Answer #2: The Morocco Free Trade Agreement (MAFTA) went into effect on January 1, 2006; following information is available from the Morocco FTA webpage:

• Morocco FTA Summary
• Morocco Free Trade Agreement Implementation Instructions
• Morocco Data Elements for the Declaration
• Morocco FTA General Note 27, Harmonized Tariff Schedule of the United States
• Morocco FTA Quotas
• Reconciliation
• Morocco FTA Text
• Morocco FTA Regulations
• International Trade Commission Publication 3721
• House Report 108-627, United States-Morocco Free Trade Agreement Implementation Act, 108th Congress, 2nd Session
• Presidential Proclamation 7971

Question #3: Where can I find information on exporting to Morocco?

Answer #3: Answers to questions on exporting to Morocco can be found on www.export.gov.

Making a Claim for Preferential Tariff Treatment

Question #4: How does an importer make a preference claim under the U.S.-Morocco FTA?

Answer #4: A U.S.-Morocco FTA claim is made by prefacing the tariff item on the entry summary with the Special Program Indicator “BH” (19 CFR 10.763) or by filing a PEA/PSC claim within one year of importation.

Question #5: May a post-importation preference claim be made using a 19 USC 1520(d)

Answer #5: No a 19 USC 1520(d) is not an option.

Question #6: What responsibilities does an importer assume by making a U.S.-Morocco FTA preference claim?

Answer #6: By making a U.S.-Morocco FTA preference claim, the importer attests that the good is eligible for U.S.-Morocco FTA preference and accepts responsibility for the truthfulness and accuracy of the claim. The importer is also responsible for providing the certification of origin and supporting documentation to CBP upon request. (19 CFR 10.765)

Declaration (Certification of Origin) and Required Data Elements

Question #7: If CBP requests a U.S.-Morocco FTA certification of origin, which one should the importer provide to CBP – the exporter’s, the producer’s, or his own?

Answer #7: If the U.S.-Morocco FTA claim is based on the exporter’s or producer’s Declaration, the importer should provide that Declaration to CBP. If the U.S.-Morocco FTA claim is based on the importer’s Declaration or importer knowledge, the importer should provide its own certification of origin.

Question #8: Is there an official form or format for the Declaration under the U.S.-Morocco FTA?

Answer #8: Although there is no official Declaration form or format required under the U.S.- Morocco FTA, a free-form Declaration with all of the data elements in 19 CFR 10.764 may also be made.

Question #9: When must the importer provide a U.S.-Morocco FTA Declaration to CBP?

Answer #9: The importer must provide CBP with a U.S.-Morocco FTA Declaration upon request by CBP.

Question #10: Can an importer make a U.S.-Morocco FTA claim without an exporter or producer Declaration?

Answer #10: If the importer has knowledge that the goods originate and can provide documentation to substantiate the claim, then the importer need not possess an exporter or producer Declaration.

Question #11: Will CBP accept an unsigned or undated Declaration?

Answer #11: No, the certification of origin must be signed and dated by an individual with knowledge of the facts and the authority to legally bind the company.

Question #12: Will CBP accept a Declaration if the HTSUS number is incorrect?

Answer #12: CBP may accept a Declaration with an incorrect HTSUS number or request that amended Declaration be submitted with a copy of the original Declaration as an attachment. The correct HTSUS number on the Declaration is an important indicator that the origination analysis was performed using the correct product-specific rule in HTSUS General Note 27(h).

USITC to Study U.S. Trade and Investment with Sub-Saharan Africa

On November 17, 2017, the U.S. International Trade Commission ("USITC") announced it has launched an investigation to examine U.S. trade in goods and services and investment in Sub-Saharan Africa ("SSA").

The investigation, U.S. Trade and Investment with Sub-Saharan Africa: Recent Developments, was requested by the United States Trade Representative (USTR) in a letter received on October 23, 2017.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will:

• provide an overview of U.S. exports to and imports from SSA of goods and services, identifying the sectors and countries in which U.S. exports and imports have increased the most, in both value and percentage terms, and the principal factors behind such growth;
• provide profiles of seven SSA economies -- Cameroon, Côte d'Ivoire, Ethiopia, Kenya, Mauritius, Nigeria, and South Africa -- describing these countries' macroeconomic environment, and trade flows and foreign direct investment (FDI) with the United States;
• provide a summary of recent developments in regional integration efforts in SSA, including progress on negotiations of the Continental Free Trade Area (CFTA);
• describe U.S. imports of goods from SSA countries under the African Growth Opportunity Act (AGOA), as well as summarize strategies by AGOA countries to increase trade with the United States;
• perform a qualitative and, to the extent possible, quantitative assessment of the non-crude petroleum sectors and SSA markets that present the greatest potential for growth in U.S. exports and imports of goods and services, as well as FDI flows; and
• discuss exports of goods and services from U.S. small and medium-sized enterprises (SMEs) to SSA and the challenges faced by U.S. SMEs exporting to the region.

The USITC expects to deliver the report to USTR by April 30, 2018.

The USITC will hold a public hearing in connection with the investigation on January 23, 2018. Requests to appear at the hearing should be filed no later than 5:15 p.m. on January 9, 2018, with the Secretary, U.S. International Trade Commission, 500 E Street, SW, Washington, DC 20436. For further information, call 202-205-2000.

Santa's Not So Jolly After Seeing His U.S. Customs Bill

On October 31, 2017, Mark A. Barnett, issued his opinion in RUBIES COSTUME CO., Plaintiff, v. UNITED STATES, Defendant. (See Customs Bulletin Vol. 51 No. 46. pages 69-96.)

"In this case, the court addresses the issue of the proper classification of a Santa Claus costume. Is it a 'festive article' entitled to duty free treatment, or is it fancy dress, of textile, akin to wearing apparel, dutiable at the rates applicable to the particular parts of the costume? Application of classification principles in this case (the General Rules of Interpretation, which direct the court to apply the terms of the Harmonized Tariff Schedule, and relevant judicial precedent) leads to a finding that, while flimsy and non-durable costumes (whether for Halloween, Christmas, or any other holiday) generally receive duty free treatment as festive articles, and non-flimsy, durable Christmas sweaters may also receive duty free treatment as festive articles (because they are not fancy dress), a relatively well-made, durable, dry clean only Santa Claus costume constitutes fancy dress, of textile, and is, therefore, excluded from classification as a festive article."

There is quite a bit at stake in this case, as Rubie's suggested classification would have resulted in zero import duty, while the court's opinion, if it stands, will result in import duties as high as 32%.

Rubie Costume and the U.S. government have been arguing over classification of Hallowe'en and other seasonal costumes for at least 20 years. Clients of Agathon Associates can read more at http://www.agathonassociates.com/textile-pri/festive-articles/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.

Miscellaneous Tariff Bill Filed

On November 9, 2017, House Ways and Means Chairman Kevin Brady (R-TX), Ranking Member Richard Neal (D-MA), Senate Finance Committee Chairman Orrin Hatch (R-UT), and Ranking Member Ron Wyden (D-OR) introduced the bipartisan, bicameral Miscellaneous Tariff Bill Act of 2017 (MTB) (H.R. 4318). After reviewing the U.S. International Trade Commission (ITC)’s final report to Congress, the lawmakers have prepared this legislation to implement the ITC’s recommendations.

Background: Last year, Congress overwhelmingly passed the bipartisan American Manufacturing Competitiveness Act of 2016 (AMCA) to establish an open and transparent process for consideration of the MTB. Pursuant to the AMCA, American businesses were able to petition for tariff relief from the ITC. The ITC then determined whether each petition met the requirements of the AMCA, including the requirement that there be no domestic producer of a like product who objects to the tariff reduction or suspension at issue. In August, the ITC, with input from DOC and CBP, provided a final report to Congress that included recommendations concerning more than 2,500 petitions. The ITC recommended that more than 1,800 of the petitions be included in MTB legislation to be considered by Congress. The Committees have reviewed the ITC’s final report and prepared this legislation to implement the ITC’s recommendations. Pursuant to the AMCA, Congress may not include products that were not recommended by the ITC, and only non-controversial provisions will be included in the MTB.

Some observations by Agathon Associates --

• The bill is huge, 510 pages in length, with 1675 individual duty suspension or reduction provisions.
• For the first time in several years Congress has undertaken a complete repeal and replacement of the Chapter 99 Subchapter II duty suspensions and reductions. Many hundreds of provisions expired at the end of 2012 but are still printed in the 2017 Harmonized Tariff Schedule of the United States ("HTSUS"), and to make it even more confusing, provisions that expired at the end of 2009 and 2006 are also still listed. Currently all provisions have expired, and Congress, in Section 1 of the bill, strikes out all of them and replaces them with the new ones. We welcome this clearing up of the HTSUS.
• Because the old duty suspensions and reductions were the results of various bills passed at different times and with the order of the provisions of the bills relating more to the happenstances of the dates they were filed, the was, in Chapter 99 Subchapter II, no logical order to the provisions, so if you wanted to find a provision relating to, say, rayon staple fiber, you'd have to start at the beginning and read straight through to the end to be sure of finding all relevant provisions. In this bill Congress put the duty suspensions and reductions in order by HTSUS classification number. So, for example, to find all provisions for rayon staple fiber, you can start as the first provision that begins with the "55" and stop once you get to a provision for staple yarn.
• On the question of whether the MTB should (1) be solely a vehicle to promote American Manufacturing Competitiveness (which after is the name of the law that created this process) by providing duty relief to manufacturers who import inputs not available domestically or (2) provide duty relief for anyone importing articles not available domestically, including end-use consumer products, Congress in this bill chose the latter. Among the consumer articles included are certain:
  • Articles of knit apparel,
  • Articles of non-knit apparel,
  • Hats, and
  • Footwear.
• TIMING. The amendments made by this Act apply to goods entered, or withdrawn from warehouse for consumption, on or after the 30th day after the date of the enactment of this Act.

Clients of Agathon Associates can get more details at http://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.

Pendleton Woolen Mills Opens Two New Retail Stores in the Pacific Northwest

Pendleton Woolen Mills, a global lifestyle brand headquartered in Portland, Oregon, announces the opening of two new retail stores, Pendleton River Park Square in Spokane, Washington and Pendleton Boise Towne Square in Boise, Idaho. These new stores feature an exceptional selection of “best in brand” for all product offerings in women’s and men’s apparel, home and blankets, and accessories categories. Pendleton Spokane and Boise locations are part of the company’s new experiential design, offering customers opportunity to interact with the brand, with added insight in to the history and culture.

Considered one of the original makers in Oregon, dating back to the company’s founding in 1863, Pendleton embraces the Pacific Northwest lifestyle and it is reflected in the heritage and overall aesthetic, gearing towards a younger millennial shopper. Casual and contemporary styling is reflected in the brand’s focus toward relaxed outdoor and western design, while maintaining quality and authenticity for which Pendleton is known.

About Pendleton -- Setting the standard for classic American style, Pendleton is a lifestyle brand recognized worldwide as a symbol of American heritage, authenticity and craftsmanship. With six generations of family ownership, since 1863, the company celebrates 154 years of weaving fabric in the Pacific Northwest in 2017. 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 and accessories, home décor and gifts. Pendleton is available through select retailers in the U.S., Canada, Europe, Japan, Korea and Australia as well as Pendleton stores, company catalogs and direct-to-consumer channels, including the Pendleton website: http://www.pendleton-usa.com

Army Combat Boot Contract Awarded

McRae Industries Inc., Mt. Gilead, North Carolina, has been awarded a maximum $40,434,006 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for hot weather combat boots. This was a competitive acquisition with two responses received. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract. Location of performance is North Carolina, with a Nov. 14, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1011).

Results of public consultations on possible Canada-China free trade agreement

On September 22, 2016, Prime Minister Trudeau and Chinese Premier Li announced the launch of exploratory discussions to examine the prospects for a possible Canada-China FTA. Work on the exploratory discussions has been ongoing since the fall of 2016 with four sets of face-to-face meetings held to date in 2017: February 20 to 24 in Beijing; April 24 to 28 in Ottawa; July 31 to August 4 in Beijing, and September 12-13, in Ottawa.

Between March 4 and June 2, 2017, the Government of Canada conducted public consultations to solicit the views of Canadians on a possible Canada-China free trade agreement (FTA). The views of Canadians were collected in a number of ways, including through in-person meetings and teleconferences with Canadian stakeholders, and through the publication of a Canada Gazette notice and dedicated consultation website inviting Canadians to submit their views. Since March 4, 2017, Government officials interacted with over 600 stakeholders and partners and received over 130 submissions from Canadians.

Read what the Government of Canada heard during Public Consultations on a possible Canada-China free trade agreement HERE

VICTOR TEXTILES (US) Inc. changes to DUVALTEX (America) Inc.

Effective December 1, 2017, Victor Textiles (US) Inc. will change its name to DUVALTEX (America) Inc.

With Victor Textiles, True Textiles, and Guilford of Maine under its umbrella, Duvaltex bills itself as North America's largest contract textile manufacturer.

Army and Air Force Clothing Contract Awarded

Knox County Assoc., for Retarded Citizens, Vincennes, Indiana, has been awarded a maximum $8,649,815 firm-fixed-price contract for various types of undershirts. This is a one-year base contract with two one-year option periods. This was a mandatory acquisition with one response received. Location of performance is Indiana, with a Nov. 12, 2018, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2018 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-N024).

DR-CAFTA Special 809 Reminder to the Trade

DR-CAFTA Article 3.26: Most-Favored-Nation Rates of Duty on Certain Goods

The textile and apparel trade is generally aware that under the U.S.-Dominican Republic-Central America Free Trade Agreement ("DR-CAFTA") most apparel articles of cotton or man-made fiber are under a "yarn forward" rule of origin. Less well-known is a outward processing provision, sometimes called "Special 809," that provides for reduced import duties for apparel assembled of U.S.-made fabric, without regard to the origin of the yarn.

Article 3.26 of DR-CAFTA states:

For a textile or apparel good provided for in chapters 61 through 63 of the Harmonized System that is not an originating good, the United States shall apply its MFN rate of duty only on the value of the assembled good minus the value of fabrics formed in the United States, components knit-to-shape in the United States, and any other materials of U.S. origin used in the production of such a good, provided that the good is sewn or otherwise assembled in the territory of another Party or Parties with thread wholly formed in the United States, from fabrics wholly formed in the United States and cut in one or more Parties, or from components knit-to-shape in the United States, or both.

Given that the bulk of the value in a garment is the fabric plus the cut-and-sew operations, this means that the total duty paid could be substantially reduced, because although the rate of duty will not be reduced, in will be applied to only the non-U.S. portion of the total value (which is almost the same as saying duty paid only on the valued added in DR-CAFTA).

Special 809 Usage

Usage of this provision has been low, but increasing, from $25 million in 2009 to $81 million in 2017 (out of $6.4 billion in total CAFTA-DR-qualifying trade in apparel).

Agathon Associates has prepared a WRITE UP OF SPECIAL 809 to assist clients in understanding this provision and would be happy to discuss it with interested parties. To access the file you will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

American Woolen Company Honored as American Manufacturer

U.S. Senator Chris Murphy (D-Conn.) announced on Monday that American Woolen Company of Stafford Springs is this week’s “Murphy’s Monday Manufacturer.” In 2013, Jacob Harrison Long purchased the American Woolen Company, which was founded in Massachusetts and was once the world’s largest wool manufacturer. In 2014, Long relaunched the American Woolen Company out of the former Warren Corp. textile mill – which had been shut down since December 2013 – located in Stafford Springs, Connecticut. Today, the American Woolen Company manufactures, designs, weaves, finishes, and dyes American-made fabric for a renowned list of customers, including the U.S. Navy, J.Crew, Hickey Freeman, United Arrows, Rag & Bone, Theory, Timberland, The North Face, and Hart Schaffner Marx.

The American Woolen Company has grown rapidly. Long relaunched the company with 3 employees, and within nine months, he had rehired 33 former employees of the closed-down Warren Corp. mill. The company now has 57 employees, and brought in $3.5 million in revenues in 2017. They expect to bring in $7.5 million in revenues in 2018.

“The American Woolen Company has brought Connecticut manufacturing at the Warren Corp. textile mill back to life,” said Murphy. “CEO Jacob Harrison Long has a real vision for this company, and I’m grateful for his commitment to hiring Connecticut workers. I’m excited to see American Woolen grow as a Connecticut-based company.”

Jacob Harrison Long, Owner and Chief Executive Officer of American Woolen Company, said, “Connecticut with its rich heritage in craft manufacturing is the optimal place to launch a consumer goods manufacturing operation. The New England mystique combined with Connecticut’s dedicated workforce complements our business aspirations. As I tell our clients, American Woolen is not Made in America, but Made in Connecticut.”

The manufacturing industry plays a crucial role throughout Connecticut communities, creating new jobs and accelerating our state’s economic recovery. Today, Connecticut’s 4,600 manufacturers account for 10% of the state’s jobs and 87% of the state’s total exports. In order to protect and grow manufacturing jobs in Connecticut, Murphy has introduced two pieces of legislation that aim to strengthen existing standards and prioritize the purchase of American-made goods, the BuyAmerican.gov Act and the American Jobs Matter Act.