Can My Good Benefit From a Free Trade Agreement?

Agathon Associates can help you determine whether you can save money using free trade agreement procedures.

Here's a quick overview of FTA qualification from U.S. Customs

1. Is your good dutiable upon importation into the United States? (http://2016.export.gov/FTA/ftatarifftool/TariffSearch.aspx)

If not, it may not be worthwhile for you to perform a free trade agreement (FTA) origination analysis and comply with the recordkeeping requirements necessary to make a FTA claim.[1]

2. Do you know your good’s background, where it was grown, mined or manufactured? Do you know where the components or ingredients were produced?

If the answer is "no," do not claim preference!

3. Was your good produced in a FTA partner country or was it produced elsewhere and simply shipped through or subject to minor processing in the FTA partner?

If the good was not SUBSTANTIALLY manufactured in an FTA country, do not claim FTA preference!

4. If your good was produced in an FTA-partner country, do you have a certificate of origin or affidavit from the EXPORTER or MANUFACTURER attesting that it “ORIGINATES” under the terms of the FTA?

If not, don’t claim FTA preference.

5. If you have an affidavit or certification of origin from the exporter or producer in the FTA-partner country, is the Harmonized Tariff Schedule (HTS) number correct? Is the signatory someone in the company with knowledge of how the good was produced and access to substantiating records? Is this type of product typically produced in this country?

If the answer to all three questions is not “yes,” do not claim FTA preference.

6. Subsequent to the good’s production, did it enter into the commerce of another country?

If the answer is “yes,” do not claim FTA preference.

(Disregard this question with respect to goods of Australia, Bahrain, Chile, Morocco, Oman or Singapore.)

7. Subsequent to the good’s manufacture, did it undergo operations outside of a FTA partner country other than to load, unload or preserve it in good condition?

If the answer is “yes,” do not claim FTA preference.

8. Do you have any reason to suspect the veracity of the documents provided to you?

If “yes” and you proceed to make a FTA claim, you would not be exercising your reasonable care responsibilities.

9. Is EVERY molecule of your good (from resource extraction through the ENTIRE chain of production) the product or growth of the U.S. or a FTA partner country and have you records to that effect?

If “yes,” your good is “wholly obtained” and preference can be claimed.

10. Is your good produced EXCLUSIVELY from materials produced in the U.S. or a FTA partner country, and for which you have a certificate of origin or manufacturer’s affidavit on file?

If “yes," your good is “exclusively of originating materials” and preference can be claimed.

(Note: This criterion is usually seen only in the simplest of manufactured goods.)

11. The following questions do not apply to goods of Jordan or Israel, and only to certain goods of Bahrain, Morocco or Oman.

A) Does the importer, exporter or producer know the correct HTS classification number of the good and ALL of the materials used to produce it?

B) Has he looked up the tariff-shift rule in the General Note of the U.S. HTS or underlying FTA and ensured that ALL non-originating materials (those not backed by a certificate of origin or affidavit) meet this rule?

C) If the tariff-shift rule requires a regional value content, are the manufacturing costs incurred in the FTA party sufficient to meet the threshold?

If the answer to any of these questions is “no,” do not fill out a certificate of origin or affidavit, or make a FTA preference claim.

12. For additional information, refer to the CBP website or contact a licensed Customs Broker or other trade professional.

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[1] Even if your good is unconditionally free, you may want to make a FTA claim to obtain the merchandise processing fee (MPF) exemption (0.003464 x the value of the good, min. $25, max. $485). The following FTAs provide the MPF exemption: Australia, Bahrain, CAFTA-DR, Chile, Colombia, Korea, NAFTA, Oman, Panama, Peru and Singapore.

You may also want to perform the FTA analysis because your customer has requested that you provide a FTA certificate of origin.

Agathon Associates Respond to Bahrain Knitted Textiles Short Supply Request

The Government of the United States received a request from the Government of Bahrain, submitted on March 23, 2017, to initiate consultations under Article 3.2.3 of the USBFTA. The Government of Bahrain is requesting that the United States and Bahrain ("the Parties") consider revising the rules of origin for certain knit and woven apparel to address availability of supply of certain knit and woven fabrics in the territories of the Parties. The President of the United States may proclaim a modification to the USBFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Bahrain on a modification under Article 3.2.5 of the USBFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain knit and woven fabrics can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

Comments must be submitted by July 21, 2017.

On May 31, 2017, Agathon Associates filed COMMENTS in opposition to the inclusion of fabrics for knitted apparel in the Bahrain FTA short supply list.

Consumer Product Safety Commission Staff to Meet with Textile Industry Representatives

On June 7, 2017, Shelby Mathis, Consumer Product Safety Commission Small Business Ombudsman, and Marcy Van Winkle, CPSC Office of Import Surveillance will be participating in a meeting of the American Association of Textile Colorists and Chemists. They will discuss CPSC's product safety requirements and CPSC interaction with U.S. Customs and Border Protection at the Port of Seattle.

Update on "Made in USA" Bill

The Senate Committee on Commerce, Science, and Transportation, last week, favorably reported S.118, a bill to make exclusive the authority of the Federal Government to regulate the labeling of products made in the United States. The measure, if enacted, would address the the current situation where the State of California has its own standard for "Made in USA" claims which is, in some cases, stricter than the already strict federal "Made in USA" standard enforced by the Federal Trade Commission.

Buy a Poppy for a Disabled Vet

In Flanders fields the poppies grow
Between the crosses, row on row
That mark our place: and in the sky
The larks still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved, and were loved, and now we lie
In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The Torch: be yours to hold it high!
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields.

—John McCrae (1872-1918)

Each year I see fewer and fewer men on the street wearing remembrance poppies on Memorial Day, since 1971 celebrated on the last Monday in May. One year I couldn't even find anyone selling "Buddy Poppies," the paper replica flowers that the Veterans of Foreign Wars sell to raise money for disabled veterans.

For more than 90 years, the VFW's Buddy Poppy program has raised millions of dollars in support of veterans' welfare and the well being of their dependents. In February 1924, the VFW registered the name "Buddy Poppy" with the U.S. Patent Office. A certificate was issued on May 20, 1924, granting the VFW all trademark rights in the name of Buddy under the classification of artificial flowers. The VFW has made that trademark a guarantee that all poppies bearing that name and the VFW label are genuine products of the work of disabled and needy veterans. No other organization, firm or individual can legally use the name "Buddy" Poppy.

When you buy your Buddy Poppy to wear this Memorial Day you will be giving material aid to a disabled veteran. And when you wear your Buddy Poppy you will remind everyone who sees you of the meaning of Memorial Day.

The American Legion also sells crepe paper poppies for Memorial Day. That is another fine organization worthy of your support.

Although the United States Department of Veterans Affairs states "The wearing of poppies in honor of America's war dead is traditionally done on Memorial Day, not Veterans Day" many of us do join our friends from the British Commonwealth nations in wearing the red poppy of remembrance on November 11th as well. (Speaking of the British, this year America's Memorial Day falls on the same day as the Spring Bank Holiday in the United Kingdom.)

This Memorial Day remember those who gave the last full measure of devotion to cause of liberty.

American Flock Association Exhibits in Atlanta

The American Flock Association (www.flocking.org) will be exhibiting the latest in Flock technology at the HFMS Expo (www.hfmse.com) at the Georgia World Congress Center in Atlanta, Georgia, on June 7th and 8th.

This new trade show will be showcasing solutions for home furnishings manufacturers.

Stop by booth #1836 to find how to Design With Flock in Mind.

President Trump Tap Granite State Resident for Department of Commerce Job

Richard Ashooh of New Hampshire to be an Assistant Secretary of Commerce, Export Administration. Mr. Ashooh currently serves as the Director of Economic Partnerships at the University System of New Hampshire. Before this, he was the Executive Director of the Warren Rudman Center at the University of New Hampshire School of Law. Prior to his work in higher education, Mr. Ashooh served for over two decades as a senior executive in the aerospace industry, starting his career with Lockheed Martin and then BAE Systems. His primary focus was ensuring the success of programs that protect United States and Allied warfighters, particularly in the electronic warfare space. He has also held senior positions in corporate strategy, homeland security, and public affairs. Earlier in his career, Mr. Ashooh was a Professional Staff Member for the U.S. Senate Committee on Governmental Affairs, with a concentration on federal procurement policies. He graduated from the University of New Hampshire, where he met his wife, with whom he has five children. They reside in Bedford, New Hampshire.

Mr. Ashooh's background in the defense industry has a particular relevance for U.S. textile, apparel, and footwear producers. Within the U.S. industry it is widely understood that Department of Defense acquisitions of textiles and clothing are government by the Berry Amendment which requires domestic U.S. sourcing. Less well known is that the Berry Amendment applies to all funds "made available" to the Defense Department. That includes Department of Defense procurement for a Foreign Military Sale ("FMS") where the funds were provided by the customer country. For example, last month contracts were awarded to supply the Afghan military with U.S.-made apparel and footwear.

NAFTA Re-Negotiation Call for Comments and Notice of Hearing

On May 23, 2017, the Office of the United States Trade Representative published in the Federal Register (82 FR 23699) Request for Comments on Negotiating Objectives Regarding Modernization of the North American Free Trade Agreement With Canada and Mexico

The United States intends to commence negotiations with Canada and Mexico regarding modernization of the North American Free Trade Agreement (NAFTA). The NAFTA was negotiated more than 25 years ago, and, while our economy and U.S. businesses have changed considerably over that period, NAFTA has not. The United States seeks to support higher-paying jobs in the United States and to grow the U.S. economy by improving U.S. opportunities under NAFTA. Our specific objectives for this negotiation will comply with the specific objectives set forth by Congress in section 102 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015. The Office of the United States Trade Representative (USTR) is seeking public comments on matters relevant to the modernization of NAFTA in order to inform development of U.S. negotiating positions.

To assist USTR as it develops its negotiating objectives and positions for the agreement, the Trade Policy Staff Committee (TPSC) invites interested persons to submit comments and/or oral testimony at a public hearing on matters relevant to the modernization of the NAFTA. In particular, the TPSC invites comments addressed to:

(a) General and product-specific negotiating objectives for Canada and Mexico in the context of a NAFTA modernization.

(b) Economic costs and benefits to U.S. producers and consumers of removal of any remaining tariffs and removal or reduction of non-tariff barriers on articles traded with Canada and Mexico.

(c) Treatment of specific goods (described by HTSUS numbers), including comments on--

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

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

(3) Addressing any remaining tariffs on articles traded with Canada, including ways to address export priorities and import sensitivities related to Canada and Mexico in the context of the NAFTA.

(d) Customs and trade facilitation issues that should be addressed in the negotiations.

(e) Appropriate modifications to rules of origin or origin procedures for NAFTA qualifying goods.

(f) Any unwarranted sanitary and phytosanitary measures and technical barriers to trade imposed by Canada and Mexico that should be addressed in the negotiations.

(g) Relevant barriers to trade in services between the United States and Canada and Mexico that should be addressed in the negotiations.

(h) Relevant digital trade issues that should be addressed in the negotiations.

(i) Relevant trade-related intellectual property rights issues that should be addressed in the negotiations.

(j) Relevant investment issues that should be addressed in the negotiations.

(k) Relevant competition-related matters that should be addressed in the negotiations.

(l) Relevant government procurement issues that should be addressed in the negotiations.

(m) Relevant environmental issues that should be addressed in the negotiations.

(n) Relevant labor issues that should be addressed in the negotiations.

(o) Issues of particular relevance to small and medium-sized businesses that should be addressed in the negotiations.

(p) Relevant trade remedy issues that should be addressed in the negotiations.

(q) Relevant state-owned enterprise issues that should be addressed in the negotiations.

USTR must receive written comments no later than Monday, June 12, 2017.

A hearing will be held on Tuesday, June 27, 2017 at 9:00 a.m.

Bahrain Requests Short Supply for Dozens of Fabrics. Comments Due July 21st

Since August 2006 Bahrain has been able to ship apparel and home textiles to the U.S. duty-free under the U.S.-Bahrain Free Trade Agreement. In 2016, according to TRADE DATA FROM OTEXA, Bahrain shipped about 70 million square meters of textile products to the U.S. almost all of which was exempted from the general yarn forward rule under a generous tariff preference level ("TPL") provision. That provision has now expired and Bahrain is seeking short supply status from a wide variety of fabrics.

U.S. textile producers of the fabrics listed below need to let the U.S. government know that they oppose adding such fabrics to the Bahrain FTA short supply list. Agathon Associates can assist you in filing objections. Call David Trumbull at 617-285-6004.

On May 22, 2017, the Committee for the Implementation of Textiles Agreements published in the Federal Register (82 FR 23204) Request for Public Comment on a Commercial Availability Request Under the U.S.-Bahrain Free Trade Agreement.

The Government of the United States received a request from the Government of Bahrain, submitted on March 23, 2017, to initiate consultations under Article 3.2.3 of the USBFTA. The Government of Bahrain is requesting that the United States and Bahrain ("the Parties") consider revising the rules of origin for certain knit and woven apparel to address availability of supply of certain knit and woven fabrics in the territories of the Parties. The President of the United States may proclaim a modification to the USBFTA rules of origin for textile and apparel products after the United States reaches an agreement with the Government of Bahrain on a modification under Article 3.2.5 of the USBFTA to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. CITA hereby solicits public comments on this request, in particular with regard to whether certain knit and woven fabrics can be supplied by the U.S. domestic industry in commercial quantities in a timely manner.

Comments must be submitted by July 21, 2017.

The fabrics subject to this request, according to the fabric number in the request and organized by specific apparel end-use, are:

Knit apparel classified in chapter 61 of the Harmonized Tariff Schedule of the United States (HTSUS):

Fabric 26: Knit pile, looped fabric, 90% polyester and 10% elastomeric suede, yarn count: Brushed P105xP50D+SP40D, weight 300 grams per meter squared (g/m2), width CW57'', classified in subheading 6001.22 of the HTSUS;

Fabric 27: Knit fabric of polyester (85-97%) and elastomeric (5-15%), classified in subheading 6004.10 of the HTSUS;

Fabric 28: Knit fabric of polyester (45-60%), cotton (35-50%) and elastomeric (5-12%), classified in subheading 6004.10 of the HTSUS;

Fabric 29: Knit fabric of rayon (59-75%), nylon (20-37%), and elastomeric (0-10%), classified in subheading 6006.42 of the HTSUS; and

Fabric 35: Knit fabric of polyester (68-78%), rayon (19-29%), and elastomeric (0-8%), classified in subheading 6006.32 of the HTSUS.

Woven apparel classified in chapter 62 of the HTSUS:

Fabric 15: Bleached or dyed satin weave or twill weave fabric of at least 60% lyocell and up to 40% nylon, polyester, or elastomeric, that does not meet the National Fire Protection Association (NFPA) 2112 or ASTM 1506 protective standards, classified in heading 5516 of the HTSUS;

Fabric 16: Woven seersucker fabric of cotton, classified in subheadings 5208.42, 5208.52 or 5209.41 of the HTSUS; Fabric 17: Woven fabric of rayon (60-75%), nylon (30-35%), and elastomeric (1-5%), bleached, dyed, printed or of yarns of different colors, weighing 200-350 g/m\2,\ classified in subheadings 5516.91, 5516.92, 5516.93 or 5516.94 of the HTSUS;

Fabric 18: Woven fabric of rayon (50-84%), polyester (6-49%), and elastomeric (1-10%), weighing less than 225 g/m2, classified in headings 5408 or 5516 of the HTSUS;

Fabric 19: Woven fabric of polyester (50-65%), rayon (34-49%), and elastomeric (1-10%), weighing less than 225 g/m2, classified in headings 5407, 5512, or 5515 of the HTSUS;

Fabric 20: Woven fabric of polyester (51-65%) and rayon (35-49%), weighing less than 225 g/m2, classified in headings 5407, 5512, or 5515 of the HTSUS;

Fabric 21: 100% rayon woven fabric, classified in headings 5408 or 5516 of the HTSUS; and

Fabric 22: Woven jacquard fabric of rayon staple fiber, weighing 375 g/m2 or less, classified in subheadings 5516.13 or 5516.23 of the HTSUS.

Men's or boys' suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), classified in heading 6203 of the HTSUS; and women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), classified in heading 6204 of the HTSUS:

Fabric 1: Two-way stretch woven fabric of polyester (57-76%), rayon (18-37%), and elastomeric (1-11%), classified in subheading 5515.19 of the HTSUS;

Fabric 2: Dyed rayon blend herringbone twill fabric of rayon (65-75%) and polyester (25-35%), weighing more than 200 g/m \2\,, classified in subheading 5516.92 of the HTSUS;

Fabric 3: Two-way stretch woven fabric of polyester (50-85%), viscose rayon (13-47%), and elastomeric (1-10%), classified in subheading 5515.11 of the HTSUS;

Fabric 4: One-way stretch woven fabric of polyester (50-85%), viscose rayon (13-47%), and elastomeric (1-10%), classified in subheading 5515.11 of the HTSUS;

Fabric 5: Woven fabric of polyester (60-90%), rayon (10-40%), and elastomeric (0-6%), classified in subheadings 5407.52, 5407.53, 5407.61, 5407.69, 5407.72, 5407.73, 5407.92, 5407.93, 5512.19, 5512.99, 5515.12, and 5515.19 of the HTSUS;

Fabric 6: Woven indigo dyed fabric of cotton (95-100%) and elastomeric (0-5%), classified in subheadings 5208.39.6090 and 5208.39.8090 of the HTSUS;

Fabric 7: Cotton corduroy woven fabric, classified in subheading 5801.22 of the HTSUS;

Fabric 8: Polyester corduroy woven fabric, classified in subheading 5801.32 of the HTSUS;

Fabric 9: Dyed sateen woven fabric of cotton (93%-100%) and elastomeric (0-7%), classified in subheading 5209.39.0020 of the HTSUS;

Fabric 10: Dobby weave fabric of cotton (93-99%) and elastomeric (1-7%), classified in subheading 5209.39.0080 of the HTSUS;

Fabric 11: Dobby weave fabric of 100% cotton, classified in subheading 5209.39 of the HTSUS;

Fabric 12: Woven fabric of spun modal rayon (50-95%), filament polyester (5-48%), and elastomeric (0-5%), classified in subheadings 5516.12, 5516.13, 5516.22 and5 516.23 of the HTSUS;

Fabric 13: Yarn-dyed woven fabric of lyocell staple fiber (55-85%) and cotton (15-45%), classified in subheadings 5516.13 and 5516.43 of the HTSUS;

Fabric 14: Woven fabric of rayon (67-80%), nylon (15-35%), and elastomeric (2-6%), classified in subheadings 5516.22, 5516.23 and 5516.24 of the HTSUS;

Fabric 23: Two-way stretch woven twill fabric of cotton (85-98%) and elastomeric (2-15%), classified in subheading 5209.32 of the HTSUS;

Fabric 24: Two-way stretch woven twill fabric of cotton (63-73%), polyester (20-30%), and elastomeric (2-12%), classified in subheading 5211.43 of the HTSUS;

Fabric 25: Woven twill fabric of cotton (77-87%), polyester (12-22%), and elastomeric (0-6%), classified in subheading 5211.43 of the HTSUS;

Fabric 30: Woven twill fabric of viscose rayon (51-61%), cotton (34-44%), and elastomeric (0-10%), classified in subheading 5516.42.0060 of the HTSUS;

Fabric 31: Two-way stretch woven twill fabric of cotton (47-57%), rayon (36-46%), and elastomeric (2-12%), classified in subheading 5211.32 of the HTSUS;

Fabric 32: Woven fabric of cotton (92-100%) and elastomeric (0-8%), classified in subheading 5209.31 of the HTSUS;

Fabric 33: Woven sateen fabric of 100% polyester, classified in subheading 5407.69 of the HTSUS; and

Fabric 34: Woven twill fabric of polyester (40-50%), viscose rayon (38-48%), linen (3-13%), and elastomeric (0-9%), classified in subheading 5515.11 of the HTSUS.

CITA is soliciting public comments regarding this request, particularly with respect to whether the fabrics described above can be supplied by the U.S. domestic industry in commercial quantities in a timely manner. Comments must be received no later than July 21, 2017.

Andrew Lock and Other CPSC Staff Attending a Series of Upholstered Furniture Plant Tours

On May 31st and June 1st, the following staff from the Consumer Product Safety Commission: Andrew Lock, Linda Fansler, Allyson Tenney (Directorate for Laboratory Sciences), Mary Toro (Office of Compliance), and David Miller (Directorate for Epidemiology) will attend a series of upholstered furniture plant tours with industry representatives in and around Greensboro, N.C. from 9:00 a.m. to 4:00 p.m. each day.

URGENT NOTE TO U.S. WEAVERS: Short Supply Status Sort for Wide Range of Wool and Cashmere Woven Fabrics Under DR-CAFTA

The U.S. textile industry has been contacted on behalf of S. Rothschild & Co. ("Rothschild"), 1407 Broadway, 10th Floor, New York, NY 10018, regarding the availability of certain coating weight wool fabric.

Rothschild produces men's and women's outerwear in Central America with the benefit of the U.S. Central America-Dominican Republic Free Trade Agreement ("CAFTA-DR"). Rothschild seeks to obtain fabric meeting the specifications described below that is woven in one or more CAFTA-DR countries.

Fabric Type: Coating weight wool, cashmere, and wool/cashmere blended fabrics

Fiber content: 100 percent wool or cashmere, or any combination thereof

HTSUS: 5111.19.60

Yarn Type: Filament yarns of 16 to 20 microns

Yarn Count: Varies

Weight: 365 to 510 grams per square meter

Width: 145 to 155 centimeters

Finish: Piece-dyed or of yarns of different colors; drap, plush or melton finish; vaporized and brushed

Quantity and Delivery: Rothschild will require between 40,000 to 60,000 yards (between 36,580 to 54,860 meters) of the requested fabric annually, with a minimum of 20,000 yards (18,290 meters) delivered in 30 days from the order date and the balance of the order completed within 60 days of receiving the order.

IMPORTANT NOTE TO U.S. WOOL WEAVERS: It is the opinion of Agathon Associates that Rothschild have no serious interest in sourcing these fabrics from a DR-CAFTA weaver. Rothschild has a long history of sourcing wool and fine animal hair fabrics for outerwear apparel programs in the DR-CAFTA region and surely knows who the potential suppliers are. It is the opinion of Agathon Associates that Rothschild's real interest is in having these fabrics placed on the DR-CAFTA short supply list. If you are a domestic U.S. weaver or wool or cashmere please contact David Trumbull at david@agathonassociates.com to discuss how we can stop these fabrics from going on the short supply list

IMPORTANT NOTES TO ANYONE WITH INTEREST IN DR-CAFTA.

• The product description as drafted is not appropriate for a DR-CAFTA short supply petition because it covers the entire range of wool and fine animal hair outerwear fabrics, not a single product as required by the DR-CAFTA Commercial Availability Procedures.
• The product description is defective in that it seeks fabrics of carded wool or cashmere (i.e., spun yarn), yet specifies "Filament yarns"
• Fabrics of this description are, unquestionably, NOT in short supply. In 2016 U.S. mills shipped 14,230 square meters of such fabric, for a total value of $1456,642, to the DR-CAFTA region. Given the type of fabric (fabric for overcoats) it may be assumed that none was for consumption in the region, but, rather, was for DR-CAFTA production to return to the U.S. duty-free under DR-CAFTA.

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THIS ATTEMPT TO PLACE WOOL OUTERWEAR FABRIC ON DR-CAFTA SHORT SUPPLY MUST BE DEFEATED!

New MTB Comment Period Announced

The U.S. International Trade Commission has announced that it intends to re-open its on-line MTB portal to allow members of the public to submit additional, limited public comments on certain petitions for duty suspensions and tariff reductions. 

The Commission will re-open the portal for comments on June 12, 2017 at 8:45 a.m. for a period of ten days, and will close the portal on June 21, 2017 at 5:15 p.m.  

• The Commission is re-opening the portal for the limited purpose of allowing the public to provide additional comments on petitions that the Commission has included as Category VI petitions (i.e., petitions that the Commission does not recommend for inclusion in a miscellaneous tariff bill by Congress) in its preliminary report to the House Ways and Means Committee and the Senate Finance Committee, which will be issued on June 9, 2017. 
• The Commission will only accept information from the public that relates to its decision to place these petitions into Category VI as part of its preliminary report.  
• Should Commission staff have questions about the information submitted during this limited comment period, they will contact the individual listed as a contact in the comment for clarification.  

The Commission will issue a Federal Register notice formally announcing the opening of this comment period.   That notice will contain further instructions on the type of information that may be filed and the manner in which it can be filed, including the process for handling of confidential business information. 

Crescent Woolen Mills to Close

According to this NEWS REPORT, Crescent Wool Mills, Twin Rivers, Wisconsin, will close at the end of June unless a buyer is found.

Supporting the Future of the Textile and Fashion Industry

On April 30, 2017, the University of Rhode Island College of Business Administration held its annual Awards Banquet, including the Department of Textiles, Fashion Merchandising and Design SPRING SPLASH student fashion show. Photos from the Spring Banquet including those from Spring Splash are available on Flicker

On May 11, 2017, the School of Fashion Design, Boston, presented COLLECTION 2017, the annual student benefit fashion show. Photos are available on DropBox

Agathon Associates is pleased to have been a sponsor of both events.

Navy Boot Contract Awarded

Belleville Shoe Co., Belleville, Illinois, has been awarded a maximum $11,105,705 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for safety boots. This was a competitive acquisition with three responses received. This is a one-year base with four one-year option periods. Location of performance is Illinois, with a May 13, 2018, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-15-D-1051).

Certain two-way stretch polyester/rayon/ spandex twill weave fabric added to DR-CAFTA short supply list

The Committee for the Implementation of Textile Agreements ("CITA") has determined that certain two-way stretch polyester/rayon/spandex twill weave fabric, as specified below, is not available in commercial quantities in a timely manner in the CAFTA-DR countries. The product will be added to the list in Annex 3.25 (short supply list) of the CAFTA-DR Agreement in unrestricted quantities.

Specifications: Two-way Stretch Polyester/Rayon/Spandex Twill Weave Fabric

HTS: 5515.11.00

Fiber Content: 69-75% polyester; 20-26% rayon, 2-8% spandex

Warp: Plied polyester/rayon staple with spandex filament

Filling: Plied textured polyester filament with spandex filament

Thread count: 47.2-51.2 warp ends per linear cm (120-130 warp ends per linear inch); 35.43-39.37 filling ends per linear cm (90-100 filling ends per linear inch)

Fabric weight: 194 to 206 grams per meter squared (5.7 to 6.1 ounces per square yard)

Finishing process: Softened

Coloration: Piece dyed, yarn dyed, bleached and printed

Performance Criteria

Dimensional Stability/Shrinkage (AATCC 135): +/-3%

Colorfastness to Laundering (AATCC 61): >/= 4.0 color change; >/= 3.5 staining for light colors (3.0 for dark colors)

Colorfastness to Crocking (AATCC 8): >/= 4.0 dry; >/= 3 wet for light colors (2.5 for dark colors).

Note: The yarn size designations describe a range of yarn specifications for yarn before knitting, dyeing and finishing of the fabric. They are intended as specifications to be followed by the mill in sourcing yarn used to produce the fabric. Dyeing, finishing and knitting can alter the characteristic of the yarn as it appears in the finished fabric. This specification therefore includes yarn sizes provided that the variation occurs after processing of the greige yarn and production of the fabric. The specifications for the fabric apply to the fabric itself prior to cutting and sewing of the finished garment. Such processing may alter the measurements.

Monday is Straw Hat Day

May 15th is Straw Hat Day the beginning of the season when men may wear their straw boaters and Panamas rather than the fur felt fedoras, porkpies, homburgs, and bowlers that we wear (You do wear a hat, don't you?) the rest of the year. For more information see www.thefedoralounge.com. Straw hats may be worn until Felt Hat Day which is September 15th.

Army Jacket Contract Awarded

National Industries For the Blind, Alexandria, Virginia, has been awarded a $14,454,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Army physical fitness uniform jackets. This is a one-year base contract with two one-year option periods. This was a mandatory procurement set aside for Ability One non-profit agencies. Locations of performance are Virginia, Maryland and North Carolina, with a May 9, 2018, performance completion date. Using military service is Army. Type of appropriation is fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-17-D-B022).

FTA Origination Analysis and Certification when no Tariff Change Rule (TCR)

On May 10, 2017, U.S. Customs and Border Protection issued CSMS# 17-000270 - FTA Origination Analysis and Certification when no Tariff Change Rule (TCR)

Manufacturers, exporters and importers are advised that a very limited number of tariff items in the Harmonized Tariff Schedule of the United States (HTSUS) do not have corresponding free trade agreement (FTA) tariff change rules (TCRs) (also known as "product specific rules of origin" or by the acronym "PSRs") because they were negotiated using a Harmonized Tariff Schedule (HTS) that was subsequently modified in 2007, 2012, or 2017, and the corresponding TCRs have not been implemented.

Until revised TCRs are implemented, manufacturers/exporters/importers of affected goods seeking to perform a tariff-shift origination analysis should classify the good and its materials using the most recent HTSUS in which the tariff item has a corresponding TCR and perform the origination analysis using that year's HTSUS.

Until revised TCRs are implemented, the certificate of origin, ideally, should indicate both the current HTSUS number and the previously corresponding HTSUS number used to perform the origination analysis in parenthesis and with wording to that effect.

For example, beneath the description of the good in block 5 of the CO, the statement "(Origination analysis performed using HTSUS xxxx.xx.xxxx (20XX) since no TCR for item number yyyy.yy.yyyy in 2017 HTSUS.)" [Replace placeholders with the appropriate numbers/dates]. The CO could look something like this: "Origination analysis performed using HTSUS xxxx.xx.xxxx (2016) since no TRC for item number yyyy.yy.yyyy in 2017 HTSUS"

Attachment FTA Origination Analysis and Certification when no Tariff Change Rule (TCR)

The Meaning of “Made in U.S.A.”

On May 5, 2017, the Congressional Research Service published The Meaning of "Made in U.S.A." (R44755)

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The Federal Trade Commission (FTC), which has broad general authority to regulate deceptive practices, has asserted authority over claims that products are U.S.-made since 1987. The agency's guidelines assert that "The country in which a product is put together or completed is highly significant to consumers in evaluating where the product is 'made.'" In 2016, it deferred enforcement action against Bedrock Manufacturing Company, owner of the Shinola Brand, after the company agreed to take a number of corrective actions in response to allegations that it overstated the extent to which some of its products were made in the United States.

FTC policy states that a product claimed to be made in the United States must be "all or virtually all made in the United States," and should "ordinarily be one in which all significant parts and processing that go into the product are of U.S. origin," and should also be one that was "last 'substantially transformed'" in the United States. The commission may base its determination of whether a product is U.S.-made in part on the percentage of total manufacturing costs that are attributable to U.S. costs. The FTC does not consider the value of nonphysical inputs, such as services and software, in determining whether a product may legitimately be said to be U.S.-made.

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Mexican siblings indicted in New Mexico for operating a counterfeit vehicle airbag business

Two siblings, both illegal aliens from Mexico, made their initial appearances May 4th in federal court on a three-count indictment charging them with trafficking in counterfeit vehicle airbags.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents investigated this case.

Dina Gonzalez-Marquez, 23, and Emilio Gonzalez-Marquez, 21, were arrested Wednesday for allegedly operating a counterfeit airbag business out of their Albuquerque residence.

The indictment charges the siblings with conspiring to traffic in counterfeit goods and two counts of trafficking in counterfeit goods. According to the indictment, Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez conspired to traffic in counterfeit goods from January 2015 to March 2017 by operating a business that sold counterfeit airbag modules and counterfeit airbag covers out of their residence.

“This investigation is another example of HSI’s commitment to safeguarding the American people and protecting the integrity of U.S. commerce,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “Selling counterfeit life-saving devices, such as airbags and airbag components, is an act of reckless disregard for the safety and well-being of others. HSI’s efforts and pursuit of these criminal enterprises will no doubt help save lives.”

They allegedly facilitated the conspiracy by listing and selling counterfeit airbag modules and airbag covers online, shipping the counterfeit goods to purchasers, and conducting in-person sales of the counterfeit goods. The indictment alleges that undercover HSI special agents purchased counterfeit goods from the defendants on two occasions. Specifically the indictment alleges that a special agent purchased a counterfeit airbag from the defendants in August 2016, and another special agent purchased a counterfeit airbag cover from them in March 1, 2017.

If convicted of the charges in the indictment, Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez each face a statutory maximum penalty of 10 years in prison and a maximum fine of $2 million.

Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.

Burlington Industries Awarded DoD Poly/Wool Cloth Contract

Burlington Industries LLC, Greensboro, North Carolina, has been awarded a maximum $20,400,000 modification (P00117) exercising the fourth one-year option period of a one-year base contract (SPM1C1-13-D-1052) with four one-year option periods for blue, shade 451, poly/wool cloth, and a maximum $14,263,200 modification (P00116) exercising the fourth one-year option period of a one-year base contract (SPM1C1-13-D-1051) with four one-year option periods for blue, shade 450, poly/wool cloth.

Sewbots Welcomes Dr. Mike Fralix, Technology Evangelist

Sewbots, an Atlanta-based machine vision and robotics startup spun out of Georgia Tech, and innovating in autonomous sewn good worklines for home goods, footwear and apparel has announced Dr. Mike Fralix as Technology Evangelist. Fralix, who holds a Doctorate in Technology Management, is the current President and CEO of Textile Clothing Technology Corporation, [TC]2 where he will continue serving while working with SoftWear Automation. He also serves on the Board of Directors of the AAFA (American Apparel and Footwear Association) and brings decades of experience in apparel manufacturing, including research and development, operations management, and corporate management. Fralix will champion SoftWear’s Sewbots™ onto the factory floor while helping to identify key partners that will support and enable more local manufacturing.

Army Parka Contract Awarded

Tennier Industries Inc., Delray Beach, Florida, has been awarded a maximum $12,339,379 modification (P00005) exercising the first one-year option period of Tennier Industries Inc., Delray Beach, Florida, has been awarded a maximum $12,339,379 modification (P00005) exercising the first one-year option period of a one-year base contract (SPE1C1-17-D-1009) with two one-year option periods for camouflage parkas. This is a firm-fixed-price contract. Locations of performance are Florida and Tennessee, with a May 11, 2018, performance completion date. Using military service is Army. Type of appropriation is fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.a one-year base contract (SPE1C1-17-D-1009) with two one-year option periods for camouflage parkas. This is a firm-fixed-price contract. Locations of performance are Florida and Tennessee, with a May 11, 2018, performance completion date. Using military service is Army. Type of appropriation is fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Army Trouser Contract Awarded

Tullahoma Industries LLC, Cabo Rojo, Puerto Rico, has been awarded a maximum $59,389,738 modification (P00141) exercising the fourth one-year option of a one-year base contract (SPM1C1-13-D-1050) with four one-year option periods for four types of Army trousers. The modification brings the maximum dollar value of the contract to $97,084,280 from $37,694,542. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Alabama, Mississippi, North Carolina, Tennessee and Puerto Rico, with a Dec. 6, 2018, performance completion date. Using military service is Army. Type of appropriation is fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Andrew Lock and Other CPSC Staff Participating in the National Fire Protection Association (NFPA) 277 Upholstered Furniture Secondary Task Group

Dr. Andrew Lock, Directorate for Laboratory Sciences, and other CPSC staff listening to the National Fire Protection Association (NFPA) 277 Upholstered Furniture Secondary Task Group meeting to monitor voluntary standards development for upholstered furniture; 9:00 a.m.-4:00 p.m., NFPA Headquarters, One Batterymarch Park, Quincy, MA 02169, May 25, 2017.

USTR Releases Special 301 Report

Office of the United States Trade Representative has released the 2017 “Special 301” Report, reviewing global developments on trade and intellectual property and identifying trading partners with harmful records on protection, enforcement, or market access for U.S. innovators and creators.

Significant elements of the 2017 Special 301 Report include the following:

• USTR continues to place China on the Priority Watch List. Longstanding and new IP concerns merit attention, including with respect to coercive technology transfer requirements, structural impediments to effective IP enforcement, and widespread infringing activity – including trade secret theft, rampant online piracy and counterfeiting, and high levels of physical pirated and counterfeit exports to markets around the globe.

• India also remains on the Priority Watch List this year for lack of sufficient measurable improvements to its IP framework on longstanding challenges and new issues that have negatively affected U.S. right holders over the past year, particularly with respect to patents, copyrights, trade secrets, and enforcement.

• USTR highlights troubling trends in counterfeiting and piracy. The problem of trademark counterfeiting continues on a global scale and involves the production of and trade in a vast array of fake goods, which harms consumers, legitimate producers, and governments. Digital piracy of U.S. movies, music, books, software and other works presents unique enforcement challenges for right holders in countries around the world. In many of the countries identified in the Report, including our neighbors Canada and Mexico, USTR notes the lack of adequate authority for customs officials to seize and destroy counterfeit and pirated goods at the border.

• The Report also focuses on the negative market access effects of the European Union’s approach to the protection of geographical indications in the EU and third-country markets on U.S. producers and traders, particularly those with prior trademark rights or who rely on the use of common food names.

• USTR closes the Out-of-Cycle reviews for Pakistan and Spain who have both undertaken improvements in recent years. Pakistan has maintained positive momentum in its efforts to reform its IP regime and Spain has strengthened its criminal laws for IP infringement and demonstrated a continued commitment to tackling online piracy.

• USTR also announces that it will continue Out-of-Cycle reviews for Colombia and Tajikistan, and initiate an Out-of-Cycle review for Kuwait to promote engagement and progress on specific IPR opportunities and challenges identified in this year’s review.

Consistent with its statutory responsibility to develop and coordinate U.S. trade policy, USTR provides the annual Special 301 Report to Congress, in coordination with all relevant U.S. government agencies. Significant elements of the 2017 Special 301 Report include the following:

School of Fashion Design Collection 2017

The School of Fashion Design is proud to present COLLECTION 2017 annual student benefit fashion show, presented at the School of Fashion Design 136 Newbury Street, Boston. For more information CLICK HERE