Friday, June 30, 2017

Department of Defense to Step up Berry Amendment and Buy American Act Education and Enforcement

Thanks to Steve Warner at BeaverLake6 Report for bringing to our attention this memo from the Office of the Under Secretary of Defense directing various military acquisition officers to improve compliance with the Berry Amendment and Buy American Act. http://www.acq.osd.mil/dpap/policy/policyvault/OSD005724-17-DPAP.pdf

"On April 18, 2017, the President signed Executive Order 13788, Buy American and Hire American, which requires agencies to "scrupulously monitor, enforce, and comply with Buy American Laws." Guidance regarding implementation of this executive order is forthcoming. At the same time, recent fraud convictions related to compliance with Buy American laws highlight the need for the defense acquisition workforce to be vigilant in its oversight and enforcement strategies. Over the past several years, the Department of Defense Inspector General (DoDIG) conducted four audits on DoD's compliance with the Berry Amendment and Buy American Act. The DoDIG identified numerous contracts where the Berry Amendment and Buy American Act clauses should have been, but were not included in contracts, where compliance with the law and regulations where neither applied nor properly justified, or where potential Anti-Deficiency Act violations may have occurred.

"In light of the above, and to improve compliance with both the Berry Amendment and the Buy American Act, my staff has worked with Defense Acquisition University to update continuous learning modules CLC 125 -Berry Amendment and CLC 027 -Buy American Act. The revised CLC 125 is available now and CLC 027 will be available in July 2017. Members of your contracting workforce should complete these revised training modules as part of their on-going professional development and towards achievement of their continuous learning requirement."

Burt’s Bees Baby Recalls Infant Coveralls Due to Choking Hazard

Recall Details

Units: About 8,500 (in addition about 44 were sold in Canada)

Description: This recall involves infant Butterfly Garden Coverall & Hat Sets. The coveralls are 100% organic cotton, and were sold in blossom pink with white butterflies. There is a white ruffle around the neck that runs down the front of the garment. It has snaps in the crotch and was sold in infant sizes NB, 3M, 6M, and 9M. The manufacture date code of August 2016 (08/2016) is printed on the inside garment tag located inside the seam of the garment. “Burt’s Bees Baby” and the garment sizes are printed on the inside back of the garment. Only coverall sets with style number LY24195 on the hangtag are included in the recall.

Incidents/Injuries: The firm has received 11 reports of the snaps detaching from the coveralls. No injuries have been reported.

Sold At: Babies R Us, BuyBuy Baby, and online at babiesrus.com, buybuybaby.com, amazon.com, kohls.com, target.com, zulily.com, diapers.com, hautelook.com, and burtsbeesbaby.com from December 2016 through May 2017 for about $18.

Importer(s): Ayablu Inc., DBA Burt’s Bees Baby, of Fairfield, Conn.

Manufactured In: India.

Modernization of the Customs Brokers Examination

On September 14, 2016, CBP published a document in the Federal Register (81 FR 63149) proposing to amend title 19 of the Code of Federal Regulations ("19 CFR") to modernize the customs broker's examination provisions. Specifically, CBP proposed amending the customs broker's examination provisions, which are contained in 19 CFR part 111, to permit automation of the examination. CBP proposed removing references to the "written" examination to accommodate the transition from the paper and pencil format to an electronic format. To cover the costs of administering the examination, plus the cost of automating the examination, CBP proposed to increase the fee from $200 to $390. Today CBP published another FR Notice adopting those changes as a Final Rule.

Travel Goods Added to GSP List

On June 30, 2017, the Executive Office of the President published in the Federal Register (82 FR 30711) Proclamation 9625 (of June 29, 2017) -- To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes.

Agathon Associates note: Of interest to our readers is Annex 1, section A, which modifies the Rates of Duty 1-Special Subcolumn for certain travel goods of Heading 4202 (Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper).

The symbol "A+" which indicates that these travel goods are eligible for Generalized System of Preferences ("GSP") duty-free entry when they are the product of a Least Developed Beneficiary Developiong Country ("LDBDC") only has been deleted and replaced by the symbol "A" which indicates that these travel goods are eligible for GSP duty-free entry when they are the product of any GSP-eligible country. This is a significant change because, with few exceptions, the LDDBCs are not major producers and shippers of such articles, while the larger list of all GSP-elgible countries includes major producers and exporters such as India and Pakistan.

Thursday, June 29, 2017

Request for Comments Regarding the Administration's Reviews and Report to the President on Trade Agreement Violations and Abuses.

On June 29, 2017, the Office of the United States Trade Representative published in the Federal Register (82 FR 29622) Request for Comments Regarding the Administration's Reviews and Report to the President on Trade Agreement Violations and Abuses.

Executive Order 13796 of April 29, 2017 (82 FR 20819), requires the United States Trade Representative and the Secretary of Commerce, in consultation with the Secretary of State, the Secretary of the Treasury, the Attorney General, and the Director of the Office of Trade and Manufacturing Policy, to conduct comprehensive performance reviews of all bilateral, plurilateral, and multilateral trade agreements and investment agreements to which the United States is a party and all trade relations with countries governed by the rules of the World Trade Organization (WTO) with which the United States does not have free trade agreements but with which the United States runs significant trade deficits in goods. The Office of the United States Trade Representative (USTR) and the Department of Commerce (DoC) are seeking comments that they will consider as part of these performance reviews and in the preparation of the subsequent report to the President. Written comments are due by 11:59 p.m. (EDT) on July 31, 2017.

Wednesday, June 28, 2017

Happy 150th Birthday, Canada!

In this momentous year marking the 150th anniversary of Confederation, Canada Day celebrations will be bigger than ever! There will be major celebrations in 19 Canadian cities in addition to the many festivities set to take place in various communities from coast to coast. A full weekend of activities is also on the agenda in Canada’s Capital Region to celebrate Canada Day and our country’s anniversary in a spectacular way.

Canada Day, July 1st, falls on a Saturday this year. Many celebrations will take place on the 1st. However government offices will close on Monday, July 3rd.

Celebrating the Glorious Fourth of July!

Agathon Associates will closed at noon on Friday, June 30, for commemoration of American Independence Day. Business will resume on the morning of Thursday, July 6th. 

The Long Struggle for Independence 
by David Trumbull


The American Revolutionary War began April 19, 1775, a date celebrated as a public holiday—Patriots’ Day—in the Commonwealth of Massachusetts and Patriot's Day the State of Maine. The war became a fight for independence with the July 1776 adoption, by the Americans’ Continental Congress, of the Declaration of Independence.

As you celebrate American freedom this Independence Day weekend—culminating in the free concert and fireworks spectacular at the Charles River Esplanade—remember that independence did not come easily. The war took seven years, with major battles as late as 1781. When, on July 18, 1776, two weeks after the signing, the Declaration of Independence finally completed the long trek on the roads of the day from Philadelphia for the first public reading in Boston, in was not at all inevitable that we Americans should win independence from Great Britain. No one had heard of such a thing as a colony throwing off its mother country. And the idea that untrained volunteer farmer/soldiers would defeat the best professional army and navy in the world was nearly inconceivable.

Coming to aid of the American cause were the Kingdom of France, the Dutch Republic, and the Kingdom of Spain. Provisional Articles of Peace were signed at Paris on November 30, 1782. The final Treaty was signed September 3, 1783. It was ratified by Congress on January 14, 1784, and by the King of Great Britain on April 9, 1784. Ratification documents were exchanged in Paris on May 12, 1784.

The American negotiators, John Adams, Benjamin Franklin, and John Jay, secured, from one of the largest and most sophisticated world powers, a treaty which contained not only an unconditional acknowledgment of American independence, but also important provisions establishing the territory of the United States as stretching from Canada to Florida and from the Atlantic to the Mississippi. American commercial interests were protected by a provision for Americans to continue to fish the waters of the Atlantic off Canada.

The Revolution began with noble sentiment—We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness. It ended with a legal agreement over boundaries and fishing rights. Such is the unchanging course of human events. Noble sentiments are good, even necessary, but they have to be backed up by practical texts. So, having ended the war with the Treaty of Paris in 1783, the next big step for the young nation, in 1787, was to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty—by drafting and adopting our Constitution.

Federal Business Opportunities through June 28, 2017

Recently posted federal business opportunities.
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Title:             Survival Vests
Sol. #:            W91ZRU-17-T-0008
Agency:            Department of the Army
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Title:             Step-In Laser Protection Visors (Aircrew)
Sol. #:            M67861-17-T-0055
Agency:            Department of the Navy
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Title:             Insulated Removable Boot Liners for Cold Weather Combat Boot Applications
Sol. #:            W911QY-17-Bootliners
Agency:            Department of the Army
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Title:             Haix Airpower P7 High Winter Waterproof Tactical Boot Haix 206218 with 500 g/m2 insulated Duracom liner 
Sol. #:            DESPS1718
Agency:            Department of the Army
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Title:             CLOTH, LAMINATED
Sol. #:            SPMYM4-17-Q-0448
Agency:            Defense Logistics Agency
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Title:             Lifecycle Equipment Replacement
Sol. #:            HDTRA117R0043
Agency:            Other Defense Agencies
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Title:             Modular Handgun Holster
Sol. #:            W911QY-17-AMTH
Agency:            Department of the Army
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Title:             STREAMER, WARNING
Sol. #:            SPE1C117Q0332
Agency:            Defense Logistics Agency
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Title:             STREAMER,WARNING
Sol. #:            SPE1C117Q0345
Agency:            Defense Logistics Agency
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Title:             Tennessee Army National Guard Recruitng Promotional Items
Sol. #:            W912L7-17-Q-0401
Agency:            Department of the Army
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Title:             TENT
Sol. #:            SPE1C117T1977
Agency:            Defense Logistics Agency
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Title:             Darn Tough Socks
Sol. #:            W919D3018
Agency:            Department of the Army
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Title:             CLOTH AND STRIPS
Sol. #:            SPMYM117Q0042
Agency:            Defense Logistics Agency
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Title:             Canopy replacement
Sol. #:            0011003662
Agency:            Department of the Army
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Title:             DEVA Reproduction Historical Leather Curtains
Sol. #:            P17PS01688
Agency:            Department of the Interior
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Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
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Title:             CLOTH AND STRIPS
Sol. #:            SPMYM117Q0042
Agency:            Defense Logistics Agency
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Title:             CBP Ballistic Plate Armor 
Sol. #:            HSBP1017R0025
Agency:            Department of Homeland Security
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Title:             Guardian Angel Dive Apparel Class 4 
Sol. #:            FA8629-17-R-5008
Agency:            Department of the Air Force
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Title:             Modular Bomb Suit
Sol. #:            DJA-17-AHDQ-Q-0055
Agency:            Department of Justice
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Title:             Darn Tough Socks
Sol. #:            W919D3018
Agency:            Department of the Army
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Title:             DLA Troop Support Requirements Contract - Commercial Part Number Load Bearing Equipment & Self-Protection Club
Sol. #:            SPE1C1-17-R-0113
Agency:            Defense Logistics Agency
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Title:             VARIOUS CLOTHING
Sol. #:            SPMYM1-17-Q-0041
Agency:            Defense Logistics Agency
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Title:             20' X 60' Canopy Tent (White)    
Sol. #:            VA26217N1230
Agency:            Department of Veterans Affairs
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Title:             GLOVES,IMPACT PROTE
Sol. #:            SPE1C117Q0337
Agency:            Defense Logistics Agency
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Title:             CRT Course - Tactical Equipment
Sol. #:            FY17RR009
Agency:            Department of State
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Title:             CRT - 7.62 Defeating Ballistic Shields
Sol. #:            FY17RR0021
Agency:            Department of State
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Title:             Intent to Sole Source - MTTB
Sol. #:            M67854-17-Q-1245
Agency:            Department of the Navy
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Title:             SHOULDER CORD,INFAN
Sol. #:            SPE1C117T1967
Agency:            Defense Logistics Agency
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Title:             Modular Bomb Suit
Sol. #:            DJA-17-AHDQ-Q-0055
Agency:            Department of Justice
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Title:             CLOTH AND STRIPS
Sol. #:            SPMYM117Q0042
Agency:            Defense Logistics Agency
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Title:             Intent to Sole Source - SOV-3
Sol. #:            M67854-17-P-1234
Agency:            Department of the Navy
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Title:             SPEAR Family of Tactical Headborne Systems
Sol. #:            H92222-17-R-0003
Agency:            Other Defense Agencies
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Title:             Uniform Rental
Sol. #:            0010858961
Agency:            Department of the Army
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Title:             20097091 - CBP Canopy - Nogales POE - SITE VISIT REQUIRED
Sol. #:            20097091
Agency:            Department of Homeland Security
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Title:             Aircraft Carrier in Australia - Stateroom carpet vendor
Sol. #:            N6264916C0999
Agency:            Department of the Navy
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Title:             YATES FRIES Gloves
Sol. #:            W919D3013
Agency:            Department of the Army
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Title:             Officer, Mess Dress, and Parade Uniforms
Sol. #:            FA7000-17-R-0009
Agency:            Department of the Air Force
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Title:             BOOTS,FIREMEN'S
Sol. #:            SPE1C117Q0282
Agency:            Defense Logistics Agency
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Title:             72" ARAMID FABRIC
Sol. #:            W9098S-17-T-0127
Agency:            Department of the Army
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Title:             ACCESS PANELS AND PERSONNEL DOOR
Sol. #:            N00244-17-Q-0097
Agency:            Department of the Navy
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Title:             Deployment Equipment
Sol. #:            W912LQ-17-Q-3032
Agency:            Department of the Army
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Title:             INL/Kyiv Winter Uniforms  
Sol. #:            865242
Agency:            Department of State
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Title:             Field Camp Tents
Sol. #:            WE133F17RQ0218
Agency:            Department of Commerce
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Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             Multipurpose Rubber Gloves
Sol. #:            7QSBKA-T9-17-5927-SQA
Agency:            General Services Administration
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Title:             Plate Carriers
Sol. #:            FA4801-17-T-1029 
Agency:            Department of the Air Force
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Title:             15 TAPE HOOK
Sol. #:            SPMYM217Q1572
Agency:            Department of the Navy
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Title:             Enhanced-Multi Mission Parachute System (E-MMPS)
Sol. #:            M67854-17-R-1200
Agency:            Department of the Navy
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Title:             TM54 Shelter Frame Replacement
Sol. #:            M6700117Q1255
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Deployment Equipment
Sol. #:            W912LQ-17-Q-3032
Agency:            Department of the Army
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Title:             Velocity System Vest and helmets
Sol. #:            PR6110178
Agency:            Department of State
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Title:             MAPBOARD,TENT
Sol. #:            
Agency:            Defense Logistics Agency
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Title:             Arc Flash PPE
Sol. #:            SB134117RQ0541
Agency:            Department of Commerce
-------------------------------------------------------
Title:             MAROON TASSELS
Sol. #:            W911SD-17-T-0355
Agency:            Department of the Army
-------------------------------------------------------
Title:             SPEAR Family of Tactical Headborne Systems
Sol. #:            H92222-17-R-0003
Agency:            Other Defense Agencies
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Title:             Shirt, Mens, S/S, Khaki, Athletic and Classic, Navy
Sol. #:            SPE1C1-17-R-0111
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Winter Mountaineering Boots
Sol. #:            H92240-17-T-0019
Agency:            Other Defense Agencies
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Title:             Plate Carriers
Sol. #:            FA4801-17-T-1029 
Agency:            Department of the Air Force
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Title:             Protective Services Support and Sustainment Kits
Sol. #:            SAQMMA17R0464
Agency:            Department of State
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Title:             S/R Series Flame Retardant Pants and Pants Inseam
Sol. #:            W91QV1-17-T-0082-1
Agency:            Department of the Army
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Title:             Promotional Apparel Items
Sol. #:            W901UZ17T0002
Agency:            Department of the Army
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Title:             New Mexico Army National Guard Promotional Items
Sol. #:            W912J3-17-T-0013
Agency:            Department of the Army
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Title:             MARKET FOR FSC 8340 - DROPCLOTH, PAINTER'S
Sol. #:            QSBAAA-D6-17-7024-SQ
Agency:            General Services Administration
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Title:             LAPEL BUTTON,AWARD
Sol. #:            SPE1C117T1907
Agency:            Defense Logistics Agency
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Title:             CAP, BASEBALL
Sol. #:            W9124D-17-T-0073
Agency:            Department of the Army
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Title:             Camouflage Net Drape System Technology
Sol. #:            W15QKN-17-X-0AAE
Agency:            Department of the Army
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Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can find links to the full solicitations at www.agathonassociates.com/textile-pri/berry/fbo.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.

Tuesday, June 27, 2017

American Apparel and Footwear Association NAFTA Comments

On behalf of the American Apparel & Footwear Association (AAFA) – the national trade association of the apparel and footwear industries, and their suppliers – I am writing to comment on the “Negotiating Objectives Regarding Modernization of the North American Free Trade Agreement (NAFTA) With Canada and Mexico.”

By way of background, the AAFA represents about 350 companies accounting for about 1000 brands. AAFA is the trusted public policy and political voice of the apparel and footwear industry, its management and shareholders, its nearly four million U.S. workers, and its contribution of $384 billion in annual U.S. retail sales. Our members design, make, market, and sell clothes, shoes, and fashion accessories in the United States and in nearly every country around the world. Realizing that our industry literally touches every human being on the planet, it is easy to see how our industry stands on the “frontlines of globalization.”

We are strong supporters of the North American Free Trade Agreement (NAFTA). During the past 24 years, our members have developed extensive supply chains that today account for millions of dollars of U.S. textile, apparel, and footwear exports and imports to NAFTA countries, directly and indirectly supporting millions of jobs in the United States, and benefitting communities and consumers throughout the United States, from Maine to Miami to Monterey.

As we engage in negotiations to modernize the NAFTA, it is our strong advice that the Administration keep four objectives in mind:

  • Do No Harm
  • Implement Any Changes In A Seamless Manner
  • Keep The Agreement Trilateral
  • Take Advantage of These Talks To Fix Other Problems

The FULL COMMENTS address all four points in more detail.

Proudly Made in the U.S.A.

When we buy products made in America we help to create or maintain American jobs and we have the assurance that the products we use were made under stringent health, safely, and environmental regulations. To many of us those words, "Made in U.S.A." are an important assurance of quality and commitment to American greatness. That's why it is so important and when a product is labeled "Made in U.S.A." that the claim be true

For most products, unless they are automobiles or items made from textile or wool (which have their own rules), there is no law requiring manufacturers and marketers to make a "Made in USA" claim. But if a business chooses to make the claim, the Federal Trade Commission's Made in USA standard applies. Made in USA means that "all or virtually all" the product has been made in America. That is, all significant parts, processing, and labor that go into the product must be of U.S. origin. Products should not contain any – or should contain only negligible – foreign content.

The FTC takes seriously its mandate to protect consumers from fraudulent "Made in U.S.A." claims. For example, in 2016, the FTC sued a Georgia-based manufacturer of fast-acting glues. the FTC alleged that a significant proportion of the costs of the chemical inputs to the glues was attributable to imported chemicals. The company settled out of court. The settlement, which included a $220,000 financial remedy, required changes in how the company advertises its products. The order prohibited the company from making unqualified Made in U.S.A. claims for any product unless it can show that final assembly or processing -- and all significant processing -- take place in the United States, and that all or virtually all ingredients or components are made and sourced in the U.S.

Complying with the FTC rules can be complex and some manufacturers run afoul of the rules through ignorance, not the intent to deceive. I am pleased to announce that my company, Agathon Associates, has launched a new "Made in U.S.A. Certification" service. Manufacturers desiring to make a Made in U.S.A. claim can have me evaluate their manufacturing process and certify that under the FTC rules they can honestly say "Proudly Made in the U.S.A."

Fine Denier Polyester Staple Fiber From India and the People's Republic of China: Initiation of Countervailing Duty Investigations

On May 31, 2017, the U.S. Department of Commerce Department) received countervailing duty ("CVD") Petitions concerning imports of fine denier polyester staple fiber from India and the People's Republic of China, filed in proper form on behalf of DAK Americas LLC, Nan Ya Plastics Corporation, America, and Auriga Polymers, Inc. The CVD Petitions were accompanied by antidumping duty (AD) Petitions concerning imports of fine denier PSF from both of the countries listed above, in addition to the Republic of Korea, Taiwan, and the Socialist Republic of Vietnam. The petitioners are domestic producers of fine denier PSF.

The petitioners allege that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. The petitioners contend that the industry's injured condition is illustrated by reduced market share; underselling and price suppression or depression; lost sales and revenues; decreased production, capacity utilization, and U.S. shipments; and declines in financial performance.

The merchandise covered by these investigations is fine denier polyester staple fiber (fine denier PSF), not carded or combed, measuring less than 3.3 decitex (3 denier) in diameter. The scope covers all fine denier PSF, whether coated or uncoated. The following products are excluded from the scope:

(1) PSF equal to or greater than 3.3. decitex (more than 3 denier, inclusive) currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 5503.20.0045 and 5503.20.0065.

(2) Low-melt PSF defined as a bi-component fiber with a polyester core and an outer, polyester sheath that melts at a significantly lower temperature than its inner polyester core currently classified under HTSUS subheading 5503.20.0015.

NCTO CEO to Testify at USTR NAFTA Hearing, Outline U.S. Textile Renegotiation Objectives on June 27

REMARKS AS PREPARED FOR DELIVERY

On behalf of the National Council of Textile Organizations, thank you for the opportunity to provide input as USTR develops its objectives for modernizing NAFTA. NCTO represents the full spectrum of the U.S. textile sector, from fibers to yarns to fabrics to finished products, as well as suppliers of machinery, chemicals, and other products and services with a stake in the prosperity of our industry. The entire U.S textile manufacturing chain, from fiber through finished sewn products, employs 565,000 workers nationwide. In 2016, the industry manufactured over $74 billion in output, while exporting more than $26 billion of our production.

We strongly support President Trump’s intention to reopen NAFTA and agree that it can be updated and improved to significantly enhance U.S. textile production, exports, and employment. The NAFTA region enjoys vibrant fiber, yarn, and fabric sectors in addition to cut and sew capabilities. As a result, NCTO supports building on the successes of NAFTA through seeking reasonable improvements to the agreement, but not a cancellation thereof, due to the high level of supply chain integration that exists today.

This partnership is evidenced by robust trade flows. The U.S. textile sector has a demonstrated capability of developing export markets within the NAFTA region. In fact, Mexico and Canada are our two largest export markets, where U.S. textile and apparel exports topped $11 billion in 2016. Furthermore, we maintain a positive trade balance in the sector with our NAFTA partners, achieving a $3.5 billion surplus last year.

NCTO does not foresee a need to reinstate tariffs on NAFTA-qualifying trade. Instead, we recommend a thorough review of the rules of origin to ensure that lucrative tariff benefits are appropriately reserved for manufacturers within the region. NAFTA is based on a yarn-forward rule of origin for textile and apparel trade, a main driver for the integration that has developed among the three countries. Yarn forward was originally devised under NAFTA and is the accepted rule for the industry and the U.S. government in every FTA since because it reserves key benefits for manufacturers within the signatory countries. It is also easier to enforce than a value-added rule.

Despite the logic of the yarn-forward structure, most U.S. FTAs, including NAFTA, also contain damaging loopholes in the textile rules of origin. The most egregious example is tariff preference levels. TPLs allow for products to be shipped duty free despite their components, representing the bulk of the value, being sourced from outside countries. For example, a cotton top, made from Chinese yarn and fabric, can be cut and sewn in Mexico and shipped duty free to the United States. Consequently, TPLs undermine benefits for NAFTA textile manufacturers, transferring them to non-signatories, such as China, who often use predatory trading practices and have made no market-opening concessions themselves.

Altogether, Mexico and Canada may ship nearly 236 million square meter equivalents of apparel, made-ups, and fabric and 12.8 million kilograms of yarn containing third-party inputs annually under the TPLs. It is our strong recommendation that the NAFTA TPL regime be eliminated.

Beyond TPLs, there are other yarn-forward derogations, including assembly-only rules for certain garments. These additional loopholes warrant analysis to determine whether they should be eliminated or adjusted to enhance the benefits for U.S. textile manufacturers under the agreement. We also believe that there should be a review of certain buy-American concessions that were unnecessarily granted to our NAFTA partners.

As a final point, it is our view that there has been a systematic deemphasis of commercial fraud enforcement at U.S. Customs and Border Protection (CBP) over the past 30 years. CBP suffers from both a lack of resources and focus particularly considering the layering of new trade agreements and significant increase in imports over this time. As a result, the benefits of NAFTA are being siphoned off by those willing and able to circumvent U.S. trade laws. Our sector is especially prone to fraud, noting that textiles and apparel represent 40 percent of all U.S. duties collected, or $14 billion a year. Clearly, improving NAFTA customs enforcement should be a major focus of this renegotiation.

In conclusion, we fully agree with President Trump that NAFTA can be improved through a set reasonable adjustments to the current text designed to enhance U.S. textile manufacturing and exporting. Further, we believe that by closing unnecessary loopholes in the agreement and placing a greater emphasis on customs enforcement, all parties throughout the NAFTA region will benefit. Doing so will help to build on the vibrant textile and apparel production chain in North America that has evolved under NAFTA.

Thank you for your consideration of our views, and NCTO looks forward to working with the Trump administration as the NAFTA modernization effort progresses.

Monday, June 26, 2017

NAFTA Comments Filed

The Office of the United States Trade Representative received over 12,000 comments relating to re-negotiation of NAFTA. As USTR processes the comments they are added, a few hundred each day, to a publicly available website. As of 4:00, June 26th, over 1,400 had been posted. The following may be of interest to readers of this blog (note, some have been published here before).

Friday, June 23, 2017

Notification of Proposed Export Production Activity
Gildan Yarns, LLC (Cotton, Cotton/Polyester Yarns)

On June 23, 2017, the Foreign Trade Zone Board published in the Federal Register (82 FR 28628) Foreign-Trade Zone 57--Mecklenburg County, North Carolina; Application for Production Authority; Gildan Yarns, LLC (Cotton and Cotton/Polyester Yarns); Salisbury, North Carolina.

An application has been submitted to the Foreign-Trade Zones (FTZ) Board by the Charlotte Regional Partnership, Inc., grantee of FTZ 57, requesting export-only production authority on behalf of Gildan Yarns, LLC (Gildan), located in Salisbury, North Carolina. The application conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.23) was docketed on June 16, 2017.

The Gildan facility (400 employees, 104 acres) is located within Site 19 of FTZ 57. The facility is used to produce spun cotton and cotton/polyester yarns for export. Production under FTZ procedures could exempt Gildan from customs duty payments on the foreign component used in export production. The sole foreign-origin material (representing 10% of the value of the finished product) to be used in the export production is polyester staple fiber (duty rate 4.3%). Customs duties also could possibly be deferred or reduced on foreign-status production equipment. The request indicates that the savings from FTZ procedures would help improve the plant's international competitiveness.

In accordance with the FTZ Board's regulations, Elizabeth Whiteman of the FTZ Staff is designated examiner to evaluate and analyze the facts and information presented in the application and case record and to report findings and recommendations to the FTZ Board.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is August 22, 2017. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to September 6, 2017.

This is Gildan's second attempt at seeking authorization for FTZ procedures for yarn production for export using imported polyester staple fiber. In 2014 Gildan filed a "short form" Notification of Proposed Export Production Activity (Docket B-86-2014). The American Fiber Manufacturers Association opposed and the application was denied.

Thursday, June 22, 2017

The FTC Seeks Comments on Proposal to Eliminate Obsolete Provisions in Textile Labeling Rule

The Commission recently announced a new initiative to eliminate or change outdated, unnecessary regulations and processes. While the textile regulation at issue here does not impose large costs on business, the cumulative burden of unnecessary regulations can impose significant costs and undermine the efficiency with which government delivers services to the public. With these concerns in mind, the Commission now proposes eliminating the requirement in 16 CFR 303.19(a) that businesses furnish the Commission with registered word trademarks prior to using these marks to satisfy the Textile Rules. Eliminating this requirement is expected to reduce compliance costs while increasing firms’ flexibility.

Section 303.19 of the Textile Rules allows the owners of registered word trademarks who use these trademarks as house marks to disclose such trademarks on labels in lieu of their business names. However, before doing so, the company must file a copy of the trademark's USPTO registration with the Commission. This requirement was imposed in 1959 presumably to obviate the need for the Commission to obtain from the USPTO paper copies of trademark registrations. However, the registered marks can be found by searching online or at the USPTO's Website (www.uspto.gov). The Commission, therefore, proposes to eliminate the requirement for businesses to file paper copies of the registration with the Commission because it appears unnecessary and could in some cases impose unnecessary costs on businesses.

For the Commission to consider your comment, they must receive it on or before July 31, 2017.

Wednesday, June 21, 2017

CALL FOR PAPERS Deadline: June 30, 2017

The American Association of Textile Chemists and Colorists' 2018 International Conference will be held March 6-8, 2018, in Greenville, South Carolina. They have a Call for Papers posted on the AATCC website and are seeking submittals for both oral and poster presentations. They are seeking abstract submittals for three educational tracks, Concept 2 Consumer®, Chemical Applications, and Materials. The deadline for submittal is June 30, 2017, for oral presentations and October 23, 2017, for poster presentations.

Federal Business Opportunities through June 21, 2017

Recently posted federal business opportunities.
-------------------------------------------------------
Title:             Custom Sports Jerseys
Sol. #:            11002910
Agency:            Department of the Army
-------------------------------------------------------
Title:             Service: Uniform rentals Great Lakes/Detroit    
Sol. #:            VA78617Q0447
Agency:            Department of Veterans Affairs
-------------------------------------------------------
Title:             Tactical Uniforms and Accessories  
Sol. #:            CGCRFQ01
Agency:            Department of State
-------------------------------------------------------
Title:             Promotional Apparel Items
Sol. #:            W901UZ17T0002
Agency:            Department of the Army
-------------------------------------------------------
Title:             CAP, BASEBALL
Sol. #:            W9124D-17-T-0073
Agency:            Department of the Army
-------------------------------------------------------
Title:             Plate Carriers
Sol. #:            FA4801-17-T-1029 
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             OPTION - Fire Fighter Personal Protective Equipment
Sol. #:            W91QV1-17-R-0048
Agency:            Department of the Army
-------------------------------------------------------
Title:             STAND,FLAGSTAFF
Sol. #:            SPE1C117Q0083
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             Fall Protection Harnesses
Sol. #:            FA8224-17-R-0074
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Tarpaulin 20' x 20'
Sol. #:            00-841-6455
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             SUPPLY & DELIVERY OF PPE UNIFORM FOR FACILITY STAFF
Sol. #:            SSA40017Q0004
Agency:            Department of State
-------------------------------------------------------
Title:             1/3 ABCT Retention Items
Sol. #:            W9124M-07-Q-WG08
Agency:            Department of the Army
-------------------------------------------------------
Title:             CNT Yarn
Sol. #:            N00421-17-Q-0209
Agency:            Department of the Navy
-------------------------------------------------------
Title:             TENT,TEMPER,AIR SUPPOR
Sol. #:            SPE1C117T1872
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Zetaliners
Sol. #:            F3V1A17094AW02
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Apron, Laboratory
Sol. #:            SPRDL117Q0341
Agency:            Department of the Army
-------------------------------------------------------
Title:             DECORATION SET,INDI
Sol. #:            SPE1C117T1851
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             WEBBING,TEXTILE
Sol. #:            SPE1C117Q0341
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             CNT Yarn
Sol. #:            N00421-17-Q-0209
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Ultra Lightweight Camouflage Net System (ULCANS)
Sol. #:            W911QY-17-R-0023
Agency:            Department of the Army
-------------------------------------------------------
Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             Mobile Shoe-Truck and Non-Conductive Protective Footwear
Sol. #:            W52P1J-17-T-3049
Agency:            Department of the Army
-------------------------------------------------------
Title:              Furnish and Launder Arc-Flash Fire Resistant Personal Protective Clothing
Sol. #:            W912DR-17-S-0021
Agency:            Department of the Army
-------------------------------------------------------
Title:             Lining Helmet Shock Absorbing HGU-55/P 
Sol. #:            SPE1C1-17-R-0110
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Commercial Item, Slide Fasteners/Zippers for APFU Jackets
Sol. #:            CT2227-17
Agency:            Department of Justice
-------------------------------------------------------
Title:             BAG,DIVER
Sol. #:            SPE1C117T1847
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Ultra Lightweight Camouflage Net System (ULCANS)
Sol. #:            W911QY-17-R-0023
Agency:            Department of the Army
-------------------------------------------------------
Title:             SHOE, ATHLETIC
Sol. #:            SPE1C1-17-R-ATHL
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             DEVA Reproduction Historical Leather Curtains
Sol. #:            P17PS01688
Agency:            Department of the Interior
-------------------------------------------------------
Title:             Belleville 330ST (Steel Toe) Brown Leather Flight Boots
Sol. #:            N6883617Q0129
Agency:            Department of the Navy
-------------------------------------------------------
Title:             INSULATION
Sol. #:            SPMYM4-17-Q-0395
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Plate Carriers
Sol. #:            FA4801-17-T-1029 
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Stakes, Plastic, MGPTS, NSN 8340-01-478-0136
Sol. #:            67743908
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Promotional and Recruiting Materials
Sol. #:            H92257-17-Q-0103 
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Spall Cover Repair Patch
Sol. #:            M67854-17-Q-1215
Agency:            Department of the Navy
-------------------------------------------------------
Title:             EOD 10 Bomb Suits
Sol. #:            F5N3C66344AW01
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Deployment Gear
Sol. #:            FA4611-17-Q-0058
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Ballistic Helmets (High-Cut)
Sol. #:            FA461317R1007
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             GLOVES,PIGSKIN
Sol. #:            SPE1C117Q0256
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             SOCKS,FLYER'S,ANTI-
Sol. #:            SPE1C117Q0354
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Maritime Security Helmets
Sol. #:            N61331-17-R-0002
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Cut and sew manufacturing of uniform male trousers and female slacks.
Sol. #:            N0018917QG043
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Entrance Wall Assembly, Tan, MCPS
Sol. #:            013375299
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Marketing Items with Logo
Sol. #:            W912LQ17T0015A
Agency:            Department of the Army
-------------------------------------------------------
Title:             End Section Liner, Temper
Sol. #:            8310-01-392-0921
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Vestibule Frame, Temper
Sol. #:            8340-01-186-3010
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             INSIGNIA,SERVICE HA
Sol. #:            SPE1C117Q0359
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Window Wall, Green, Modular Command Post
Sol. #:            8340-01-331-0152-1
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Vestibule w/door Tan NSN:8340-01-198-7621, Vestibule Floor Green NSN 8340-01-186-3027, Vestibule Container Green NSN 8340-01-186-3029, and Pin Container Green NSN: 8340-01-186-3030 
Sol. #:            VestibuleDoorContainerFloorPin
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Arc Flash PPE
Sol. #:            SB134117RQ0541
Agency:            Department of Commerce
-------------------------------------------------------
Title:             Non-skid Safety Shoes
Sol. #:            N6809317Q0078
Agency:            Department of the Navy
-------------------------------------------------------
Title:             1/3 ABCT Retention Items
Sol. #:            W9124M-07-Q-WG08
Agency:            Department of the Army
-------------------------------------------------------
Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             Cut and Sew Inherently Fire Resistant Uniform Shirts
Sol. #:            N0018917QG042
Agency:            Department of the Navy
-------------------------------------------------------
Title:             72" ARAMID FABRIC
Sol. #:            W9098S-17-T-0127
Agency:            Department of the Army
-------------------------------------------------------
Title:             Jacket, Cold Weather (Shipboard)
Sol. #:            SPE1C1-17-R-0107
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             FLAG,ORGANIZATIONAL
Sol. #:            SPE1C117T1814
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             FLAG,NATIONAL
Sol. #:            SPE1C117T1809
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             INSIGNIA,GRADE,ENLISTE
Sol. #:            SPE1C117T1807
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             CAP, BASEBALL
Sol. #:            W9124D-17-T-0073
Agency:            Department of the Army
-------------------------------------------------------
Title:             American Stick Flags
Sol. #:            HSSCCG-17-Q-00296
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             TNARNG Recruiting Promotional Items-SOURCES SOUGHT
Sol. #:            W912L7-17-Q-0400
Agency:            Department of the Army
-------------------------------------------------------
Title:             HELMET,COMBAT VEHIC
Sol. #:            SPE7L317TL456
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Maritime Assault Suits
Sol. #:            HHSP233201700048P
Agency:            Department of Health and Human Services
-------------------------------------------------------
Title:             Inflatable Canopy Shelters
Sol. #:            W912JB17T2027
Agency:            Department of the Army
-------------------------------------------------------
Title:             Cold Weather Gear
Sol. #:            FA4528-17-Q-4026
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             GLOVES, ELECTRICAL WORKER
Sol. #:            SPE1C117Q0355B
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Vital Torso Protection - Full Rate Production
Sol. #:            W91CRB-16-R-0010
Agency:            Department of the Army
-------------------------------------------------------
Title:             GLOVES,ELECTRICAL W
Sol. #:            SPE1C117Q0355
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Use in Jute Materials
Sol. #:            W911QY-17-JUTE
Agency:            Department of the Army
-------------------------------------------------------
Title:             CLOTH,COATED
Sol. #:            SPE1C117T1463
Agency:            Defense Logistics Agency
-------------------------------------------------------

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can find links to the full solicitations at www.agathonassociates.com/textile-pri/berry/fbo.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.

Tuesday, June 20, 2017

Request for Comments and Notice of Public Hearing Concerning an Out-of-Cycle Review of Rwanda, Tanzania, and Uganda Eligibility for Benefits Under the African Growth and Opportunity Act

The Office of the United States Trade Representative (USTR), in consultation with the Trade Policy Staff Committee (TPSC), is announcing the initiation of an out-of-cycle review of the eligibility of the Republic of Rwanda, United Republic of Tanzania, and Republic of Uganda to receive benefits under the African Growth and Opportunity Act (AGOA) in response to a petition. The AGOA Subcommittee of the TPSC (Subcommittee) will consider written comments, written testimony, and oral testimony in response to this notice to develop recommendations for the President as to whether the Republic of Rwanda, United Republic of Tanzania, and Republic of Uganda are meeting the AGOA eligibility criteria. The deadline for filing requests to appear at the July 13, 2017, public hearing, and for filing pre-hearing briefs, statements, or comments on the AGOA eligibility of the Republic of Rwanda, United Republic of Tanzania, and Republic of Uganda is June 30, 2017.

New center for development of high-tech fibers and fabrics opens headquarters, unveils two products ready for commercialization.

Just over a year after its funding award, a new center for the development and commercialization of advanced fabrics officially opened its headquarters June 14th in Cambridge, Massachusetts, and will be unveiling the first two advanced fabric products to be commercialized from the center's work. READ MORE HERE

Monday, June 19, 2017

More NAFTA Comments Posted

As REPORTED EARLIER, the Office of the United States Trade Representative received over 12,000 comments relating to re-negotiation of NAFTA. As USTR processed the comments they are added, a few hundred each day, to a publicly available website. As of Noon, June 19th, over 1,300 had been posted. In addition to the ones earlier reported in this blog, these new comments have been posted:

Hope II 2017 Annual Report

The Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II) affords preferential treatment for imports of apparel, textiles, and certain other goods from Haiti. To be eligible for preferential treatment under HOPE II, Haiti must first have (i) implemented the Technical Assistance Improvement and Compliance Needs Assessment and Remediation (TAICNAR) program; (ii) established a Labor Ombudsperson’s Office; (iii) agreed to require producers of articles for which preferential tariff treatment may be requested to participate in the TAICNAR program; and (iv) developed a system to ensure participation by such producers, including by establishing a producer registry. On October 16, 2009, the President certified to Congress that Haiti had taken these actions. Further, to remain eligible for preferential treatment, Haiti must also have established or be making continual progress towards establishing the protection of internationally recognized worker rights.1 On June 29, 2015, the President signed the Trade Preferences Extension Act of 2015, which included the extension of Haiti’s preferential tariff treatment until September 30, 2025.

You may read the full report HERE.

Imports of certain Haitian manufactured textile and apparel goods are eligible for duty-free treatment under the Caribbean Basin Trade Partnership Act ("CBTPA").

Additional benefits by way of special rules for Haiti have been added through the--

  • Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 ("HOPE") Public Law 109-432,
  • Food Conservation and Energy Act of 2008 ("HOPE II") Public Law 110-246, and
  • Haiti Economic Lift Program of 2010 ("HELP") Public Law 111-171.

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can learn more about U.S. apparel trade preferences for Haiti at www.agathonassociates.com/textile-pri/haiti/trade.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.

Sunday, June 18, 2017

REMINDER: MTB Comments Due Wednesday

On June 12, 2017, the U.S. International Trade Commission opened the window for a second round of comments on petitions for duty suspension under the Miscellaneous Tariff Bill process. Comments on category VI petitions will be accepted until June 21, 2017.

Another Fiberglass FTZ Filing

Back in April, Agathon Associates REPORTED that the Texas company PGTEX USA, Inc. was approved for Foreign-Trade Zone procedures in the production of fiber glass fabric is imported components. In granting approval the FTZ Board imposed the restriction that glass fibers and polyester yarn be admitted in "privileged foreign status" which precludes inverted tariff benefits on such items on its domestic sales of fiber glass fabrics.

Today the FTZ Board published notice that PGTEX USA has filed for additional FTZ production authority. This latest application could exempt PGTEX from customs duty payments on the glass fiber rovings used in export production. The applicant indicates that the foreign-sourced glass fiber rovings (HTSUS 7019.12, duty rate 4.8%) will be admitted to the FTZ in privileged foreign status (19 CFR 146.41), which would require payment of the original duty rate on the glass fiber rovings incorporated into a finished product on which entry from the FTZ was subsequently made. Customs duties also could possibly be deferred or reduced on foreign-status production equipment. This continues a trend we have seen of FTZ applicants omitting controversial textile inputs which are likely to generate opposition from the domestic textile industry.

Saturday, June 17, 2017

Military Clothing Contracts Awarded

Bethel Industries Inc., Jersey City, New Jersey, has been awarded a maximum $21,900,000 firm-fixed-price contract for field jackets. This is a two-year contract with no option periods. This was the small business set-aside lot 0001 portion of a solicitation containing two lots. This was a competitive acquisition with six responses received for the small business set-aside lot 0001. Location of performance is New Jersey, with a June 15, 2019, performance completion date. Using customers are Afghan Border Police, Afghan National Army (ANA), Afghan Uniform Police, and ANA Special Operations. Type of appropriation is fiscal 2017 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-17-D-1067).

Crown Clothing Co., Vineland, New Jersey, has been awarded a maximum $8,044,027 modification (P00107) exercising the fourth one-year option period of a one-year base contract (SPM1C1-13-D-1059) with four one-year option periods for various coats. This is a fixed-price contract. Location of performance is New Jersey, with a June 23, 2018, performance completion date. Using military service is Marine Corps. Type of appropriation is fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Friday, June 16, 2017

Request for Information on Potentially Reducing Regulatory Burdens Without Harming Consumers

The Consumer Product Safety Commission seeks suggestions for ways the Commission could potentially reduce burdens and costs of its existing rules, regulations, or practices without harming consumers. Written comments must be submitted by September 30, 2017.

Little Giraffe Recalls Children’s Robes Due to Violation of Federal Flammability Standard

Recall Details

Units: About 2,000

Description: This recall involves Luxe Satin children’s long-sleeve robes. The robes are 43 percent acetate with 57 percent rayon, satin outer shell and a 100 percent polyester microfiber inside. The robes were sold in pink, blue and cream in sizes 1 (XS-S/4-6 years), 2 (MD-LG/6-8 years) and 3 (XL-XXL/8-10 years). The robes have two belt loops on each side and an unattached belt. Lot number “21706-DFR001” and “Not Intended for Sleepwear” are printed on the robes inside seam label.

Incidents/Injuries: None reported

Sold at: Children’s specialty stores nationwide and online at www.littlegiraffe.com from November 2012 through March 2017 for about $100.

Importer(s): Little Giraffe, of Van Nuys, Calif.

Distributor(s): Little Giraffe, of Van Nuys, Calif.

Manufactured In: China

Thursday, June 15, 2017

More NAFTA Comments

As Agathon Associates REPORTED June 14th, the public comment period on modifications to NAFTA has ended and over 12,000 comments were received by the Office of the United States Trade Representative. The government is processing the comments to make them available to the public on a webiste. As of noon on Friday the 16th, about 1,200 have been published, among them:

Another FTZ Operation Approved with Textiles Excluded

A Foreign-Trade Zone approval today continues a trend Agathon Associates reported June 1st of companies opting to omit textile inputs from their FTZ applications.

On October 18, 2016, CGT U.S., Ltd., submitted a notification of proposed production activity to the Foreign-Trade Zone Board for its facility in New Braunfels, Texas, where the company manufactures Polyvinyl Chloride coated upholstery fabric cover stock. Today the FTZ Board announced approval of the appliocation subject to the restriction requiring that foreign-status polyester and polycotton knit fabrics be admitted to the subzone in privileged foreign-status, thus precluding relief from inverted tariff on the textile components.

Production under FTZ procedures will exempt CGT from customs duty payments on the foreign-status components used in export production. On its domestic sales, CGT will be able to choose the duty rate during customs entry procedures that applies to the PVC coated upholstery fabric cover stock (duty free) for the foreign-status inputs noted below. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

The components and materials sourced from abroad include: Compound stabilizer for plastics; antimony trioxide (low-tint); flat release paper; polyester knit fabric; polycotton knit fabric; polyurethane top finish dull; polyurethane top finish gloss; polyvinyl chloride dispersion resin; carbodimide crosslinker; aqueous (water base) polyurethane top finish; polyurethane top finish; aqueous (water base) silicone modifier; aqueous (water base) silicone hand modifier; polyurethane; polyisocyanate crosslinker; defoamer; polyfunctional aziridine crosslinker; wetting agent top coat; and, stabilizers (duty rates range from duty free to 10%).

The request indicated that CGT would admit foreign-status polyester and polycotton knit fabrics (HTSUS 6006.31.00) in privileged foreign status (19 CFR 146.43), thereby precluding inverted tariff benefits on these inputs.

Wednesday, June 14, 2017

New England Golf Outing & Banquet ~ Friday June 23, 2017

Golfer Registration 7:30am Shot Gun Start 8:00am

Golf Outing:
Cranston Country Club

Dinner Banquet:
Venus de Milo Restaurant

Be an individual or corporate sponsor
<$100 FRIEND OF NE AATCC
$100-499 GOLD
$500-799 PLATINUM – One (1) complimentary dinner ticket
$800+ PREMIER – Two (2) complimentary dinner tickets

To see event details and registration form CLICK HERE.

USTR Extends Public Comment Period For NAFTA Renegotiation Objectives

Due to high interest and to ensure all interested participants have the opportunity to comment, the Office of the U.S. Trade Representative is extending the public comment period for “Negotiating Objectives Regarding Modernization of NAFTA with Canada and Mexico” until June 14, 2017, at 11:59 PM ET.

As of midnight last night, over 12,000 comments had been received, but just a bit over 600 had been processed and made available on the government website. Among the comments available for viewing are:

New Date for the October 2017 Customs Broker's License Examination

U.S. Customs and Border Protection today announced that U.S. Customs and Border Protection has changed the date on which the semi-annual examination for an individual broker's license will be held in October 2017. The customs broker's license examination scheduled for October 2017 will be held on Wednesday, October 25, 2017.

Federal Business Opportunities through June 14, 2017

Recently posted federal business opportunities.
-------------------------------------------------------
Title:             FLAG,IDENTIFICATION
Sol. #:            SPE1C117T1800
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Welders Glove
Sol. #:            SPE1C117R0103
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Field Shower Portable
Sol. #:            SPE1C1-17-Q-0353
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Tactical Uniforms and Accessories  
Sol. #:            CGCRFQ01
Agency:            Department of State
-------------------------------------------------------
Title:             GLOVE SHELLS,ELECTR
Sol. #:            SPE1C117Q0255
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Shield, Flight Deck, Front & Back
Sol. #:            SPE1C1-17-R-0109
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             LINER, HELMET
Sol. #:            SPE1C117T1792
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             STRAP,WEBBING
Sol. #:            
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             CARRIER,OC SPRAY
Sol. #:            SPE1C117T1559
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             USCIS Customized American Stick Flags
Sol. #:            HSSCCG-17-Q-00302
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             SHROUD,FACE AND NEC
Sol. #:            SPE1C117Q0273
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             WH&B APPAREL CONTRACT 2017
Sol. #:            L17PS00639
Agency:            Department of the Interior
-------------------------------------------------------
Title:             TEMPER TYPE XLI, AIR S
Sol. #:            SPE1C117T1778
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Task Force 1-28 IN Distinctive Unit Insignia
Sol. #:            128AB0009
Agency:            Department of the Army
-------------------------------------------------------
Title:             Cloth Polyester Twill 
Sol. #:            W911SD-17-T-0071
Agency:            Department of the Army
-------------------------------------------------------
Title:             Zetaliners
Sol. #:            F3V1A17094AW02
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Body Armor and Equipment
Sol. #:            PR6131318
Agency:            Department of State
-------------------------------------------------------
Title:             INL/Kyiv Winter Uniforms  
Sol. #:            865242
Agency:            Department of State
-------------------------------------------------------
Title:             CBP Ballistic Plate Armor 
Sol. #:            HSBP1017R0025
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             HEADER,TENT FRAME
Sol. #:            
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             FR PROGRAM FOR UNIFORM RENTAL
Sol. #:            A17PS00762
Agency:            Department of the Interior
-------------------------------------------------------
Title:             Tyvek Converalls
Sol. #:            RFQ-2017-032
Agency:            United States Senate
-------------------------------------------------------
Title:             REDACTED J&A
Sol. #:            
Agency:            Department of the Army
-------------------------------------------------------
Title:             Tactical Clothing and Equipment
Sol. #:            PAN408-17-P-0000-005826
Agency:            Department of the Army
-------------------------------------------------------
Title:             Promotional and Recruiting Materials
Sol. #:            H92257-17-Q-0103 
Agency:            Department of the Navy
-------------------------------------------------------
Title:             WH&B APPAREL CONTRACT 2017
Sol. #:            L17PS00639
Agency:            Department of the Interior
-------------------------------------------------------
Title:             Phone Talker Helmet
Sol. #:            N68836-17-Q0122
Agency:            Department of the Navy
-------------------------------------------------------
Title:             MC Sweatshirt/Sweatpants, CG Sweatshirt/Sweatpants
Sol. #:            SPE1C117R0098
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Athletic Shoes
Sol. #:            W91QVN17R0142
Agency:            Department of the Army
-------------------------------------------------------
Title:             SMALL BUSINESS SET-ASIDE  MANUFACTURE OF MAINTENANCE PLATFORM CANOPIES 
Sol. #:            N0016417RGP29
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Naval Security Forces Vests IDIQ
Sol. #:            N61331-17-R-0007
Agency:            Department of the Navy
-------------------------------------------------------
Title:             Butyl Glove and TAP Glove
Sol. #:            SPE1C1-17-R-0099
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Body Armor and Equipment
Sol. #:            PR6131318
Agency:            Department of State
-------------------------------------------------------
Title:             FLAG,IDENTIFICATION
Sol. #:            SPE1C117T1526
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Hot Weather Boots
Sol. #:            W911QY-2017-PMCIE1
Agency:            Department of the Army
-------------------------------------------------------
Title:             OPTION - Fire Fighter Personal Protective Equipment
Sol. #:            W91QV1-17-R-0048
Agency:            Department of the Army
-------------------------------------------------------
Title:             HOMELESS / DISASTER BLANKET
Sol. #:            SPE1C1-17-R-0095
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Jacket, Cold Weather (Shipboard)
Sol. #:            SPE1C1-17-R-0107
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Army OCP Uniforms 
Sol. #:            W912JM-17-T-0066
Agency:            Department of the Army
-------------------------------------------------------
Title:             Cotton Knit Velour
Sol. #:            W911SD-17-T-0072
Agency:            Department of the Army
-------------------------------------------------------
Title:             Guardian Angel Dive Apparel Class 4 
Sol. #:            FA8629-17-R-5008
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Design, Build and deliver 7 Airbeam Shelters
Sol. #:            WX02398Y2017T
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             Plastic Sheeting
Sol. #:            SPMYM3-17-Q-1057
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             MC Sweatshirt/Sweatpants, CG Sweatshirt/Sweatpants
Sol. #:            SPE1C117R0098
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             New Mexico Army National Guard Promotional Items
Sol. #:            W912J3-17-T-0013
Agency:            Department of the Army
-------------------------------------------------------
Title:             Baker Batshield NIJ Level IIIA Foldable Ballistic Shield
Sol. #:            POLKDESPOLICELJP0016
Agency:            Department of the Army
-------------------------------------------------------
Title:             Naval Security Forces Vests IDIQ
Sol. #:            N61331-17-R-0007
Agency:            Department of the Navy
-------------------------------------------------------
Title:             GLOVES,ELECTRICAL W
Sol. #:            SPE1C117Q0352
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             STRAP,FIELD PACK
Sol. #:            SPE1C117R00110004
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Velocity System Vest and helmets
Sol. #:            PR6110178
Agency:            Department of State
-------------------------------------------------------
Title:             GLOVES,ELECTRICAL W
Sol. #:            SPE1C117Q0351
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             ICE Law Enforcement Badges/Credentials
Sol. #:            HSCEDM-17-P-00070
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             KIT,BLADDER,AIRCRAF
Sol. #:            SPE1C117Q0335
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Task Force 1-28 IN Distinctive Unit Insignia
Sol. #:            128AB0009
Agency:            Department of the Army
-------------------------------------------------------
Title:             Firefighter Bunker Gear Fort Buchanan, Puerto Rico
Sol. #:            W912C3-17-Q-019A
Agency:            Department of the Army
-------------------------------------------------------
Title:             IOTV Generation III Conversion Kits & Components
Sol. #:            SPE1C1-17-R-TBD2
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             HELMET,COMBAT VEHIC
Sol. #:            SPE7L317TF092
Agency:            Defense Logistics Agency
-------------------------------------------------------

Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service can find links to the full solicitations at www.agathonassociates.com/textile-pri/berry/fbo.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.

Tuesday, June 13, 2017

USITC Releases Eighth Annual Report on Textile and Apparel Imports from China

On June 12, 2017, the United States International Trade Commission ("USITC") released USITC Publication 4698, Investigation No. 332-501 Textile and Apparel Imports from China: Statistical Reports Annual Compilation 2016

Improved Planning Needed to Strengthen Trade Enforcement

In a report released yesterday, the Government Accountability Office ("GAO") found that Customs and Border Protection ("CBP") generally had not met the staffing levels set by Congress for trade positions and that these shortfalls could impact CBP's ability to effectively enforce trade laws (e.g., fewer cargo inspections).

Over the past 5 fiscal years, CBP generally has not met the minimum staffing levels set by Congress for four of nine positions that perform customs revenue functions, and it generally has not met the optimal staffing level targets identified by the agency for these positions. Staffing shortfalls can impact CBP's ability to enforce trade effectively, for example, by leading to reduced compliance audits and decreased cargo inspections, according to CBP officials. CBP cited several challenges to filling staffing gaps, including that hiring for trade positions is not an agency-wide priority. Contrary to leading practices in human capital management, CBP has not articulated how it plans to reach its staffing targets for trade positions over the long term, generally conducting its hiring on an ad hoc basis.

To strengthen its trade enforcement efforts, the GAO recommended that CBP should (1) include performance targets in its plans covering high-risk issue areas, and (2) develop a long-term hiring plan specific to trade positions that articulates how it will reach its staffing targets. CBP concurred with both recommendations.

New Comment Period in Coleman FTZ Proceeding

On June 13, 2017, the Foreign Trade Zone Board published in the Federal Register (82 FR 27039) Foreign-Trade Zone 119--Minneapolis-St. Paul, Minnesota, Application for Additional Production Authority; The Coleman Company, Inc., Subzone 119I, Invitation for Public Comment on Preliminary Recommendation. Public comment is invited through July 31, 2017. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period, until August 15, 2017.

The Coleman application, which has been under consideration since March, 2014, has been one of the most controversial of FTZ proceedings. Agathon Associates has prepared a detailed history of the proceedings which is available to clients and subscribers to the Agathon Associates' Trade Advisor service. 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.

CPSC Hearing on Agenda and Priorities for Fiscal Year 2018

The U.S. Consumer Product Safety Commission ("CPSC") will conduct a public hearing to receive views from all interested parties about the Commission's agenda and priorities for fiscal year 2018, which begins on October 1, 2017, and for fiscal year 2019, which begins on October 1, 2018. We invite members of the public to participate. Written comments and oral presentations concerning the Commission's agenda and priorities for fiscal years 2018 and 2019 will become part of the public record.

The hearing will begin at 10 a.m. on July 26, 2017, and will conclude the same day. Requests to make oral presentations and the written text of any oral presentations must be received by the Office of the Secretary not later than 5 p.m. Eastern Daylight Time (EDT) on July 12, 2017. The Commission will accept written comments as well. These also must be received by the Office of the Secretary not later than 5 p.m. EDT on July 12, 2017.

CPSC Workshop on Recall Effectiveness

The Consumer Product Safety Commission ("CPSC") staff is holding a workshop on potential ways to improve the effectiveness of consumer product recalls. We invite interested parties to attend the workshop.

The workshop will be held from 10 a.m. to 3 p.m. on July 25, 2017. Individuals interested in attending the workshop should register by July 3, 2017. Suggestions for additional topics for the workshop should be submitted by June 23, 2017.

The workshop will be held in the Hearing Room at CPSC's headquarters at: 4330 East West Highway, Bethesda, MD 20814. There is no charge to attend the workshop. Persons interested in attending the workshop should register online at: https://cpsc.gov/content/cpsc-workshop-on-recall-effectiveness.

Manufacturer in Puerto Rico Awarded Navy Uniform Contract

M&M Manufacturing LLC, Lajas, Puerto Rico, has been awarded a maximum $25,552,591 modification (P00129) exercising the third one-year option of a one-year base contract (SPE1C1-14-D-1048) with four one-year option periods for various types of Navy working uniform blouses and trousers. The modification brings the maximum dollar value of the contract to $61,761,001 from $36,208,410. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico, with a Dec. 31, 2018, performance completion date. Using customer is Navy. Types of appropriation are fiscal 2017 through 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Friday, June 9, 2017

USITC Publishes Preliminary MTP List

The United States International Trade Commission's Preliminary Report on petitions for duty suspensions under the Miscellaneous Tariff Bill process have been published at https://mtbps.usitc.gov/external/. In the case of those petitions in class VI, not recommended for approval, a second comment period opens on Monday, June 12th, during which petitioners can attempt to remedy any problems that resulted in the unfavorable recommendation.

Thursday, June 8, 2017

NAFTA Comments Due Monday

REMINDER, the deadline to SUBMIT COMMENTS on goals for NAFTA renegotiation are DUE MONDAY, June 12th.

Merchandise Produced by Convict, Forced, or Indentured Labor

Section 307 of the Tariff Act of 1930, as amended (19 U.S.C. 1307) prohibits the importation of merchandise that has been mined, produced, or manufactured, wholly or in part, in any foreign country by forced labor, including prison labor and forced child labor. Despite this general prohibition, the Tariff Act of 1930 included a "consumptive demand" clause, which allowed for the importation of forced-labor-derived goods if the goods were not produced in such quantities in the United States as to meet the "consumptive demands" of the United States.

On February 24, 2016, the President signed into law the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) (Pub. L. 114-125). Section 910 of TFTEA repeals the "consumptive demand" clause in section 307 of the Tariff Act of 1930, thereby eliminating the consumptive demand exception to the prohibition on importation of goods made with convict labor, forced labor, or indentured servitude. This amendment went into effect on March 10, 2016.

Today U.S. Customs and Border Protection amended Customs regulations to reflect section 910 of the Trade Facilitation and Trade Enforcement Act of 2015 by removing the "consumptive demand" clause from the regulations concerning the prohibition on the importation of merchandise produced by convict, forced, or indentured labor. It also updates the regulations to reflect the correct name of the agency and includes a minor procedural change with regard to the filing of proof of admissibility.

CBP to Require ACE for Electronic Drawback and Duty Deferral

Effective July 8, 2017, the Automated Commercial Environment ("ACE") will be the sole Customs and Border Protections ("CBP")-authorized Electronic Data Interchange ("EDI") system for processing electronic drawback and duty deferral entry and entry summary filings, and the Automated Commercial System ("ACS") will no longer be a CBP-authorized EDI system for processing these filings.

Wednesday, June 7, 2017

CBP Launches “The Truth Behind Counterfeits” Campaign to Inform Travelers of the Dangers of Counterfeit Goods

U.S. Customs and Border Protection launched the "The Truth Behind Counterfeits" campaign today to raise awareness of the dangers and negative impacts of purchasing counterfeit goods. The Intellectual Property Rights ("IPR") initiative is an educational awareness campaign for international travelers, designed to call attention to the growing impacts of purchasing counterfeit goods, including the loss of American jobs and the support of criminal activity. Last year CBP seized more than $1.3 billion in counterfeit goods.

The campaign will run through July at six of the busiest U.S. international airports: Baltimore Washington International Thurgood Marshall Airport; Chicago O’Hare International Airport; Dallas/Fort Worth International Airport; Los Angeles International Airport; New York John F. Kennedy International Airport and Washington Dulles International Airport.

Government Contracts Awarded

Cloth,Duck (Solicitation Number: Spe1c117q0300), $32,000 contract awarded to A.M.S. Network, LLC 353 Washington St, Unit 4 Brighton, Massachusetts 02135-3340.

Black Wool Parka (Solicitation Number: W911sd-17-T-0251), $43,338.40 contract awarded to Nsignia Manufacturing, 112W 34th St, 17 Floor, New York, New York 10120.

Fabric Liner (Solicitation Number: 0040330961), $9,732.28 contract awarded to The Akana Group, 118 S. Main St., Ann Arbor, Michigan, 48104.

Proposed Revocation Of One Ruling Letter And Proposed Modification Of Two Ruling Letters And Revocation Of Treatment Relating To The Tariff Classification Of Various Foot Sleeves

In NY N222103, NY K86082, and NY L85061, CBP classified various foot sleeves in heading 6115, HTSUS, specifically in subheading 6115.96.90, HTSUS, which provides for “[p]antyhose, tights, stockings, socks and other hosiery, including stockings for various veins, and footwear without applied soles, knitted or crocheted: Other: Of synthetic fibers: Other.” CBP has reviewed NY N222103, NY K86082, and NY L85061 and has determined the ruling letters to be in error. It is now CBP’s position that various foot sleeves are properly classified, by operation of GRI 1, in heading 6307, HTSUS, specifically in subheading 6307.90.98, HTSUS, which provides for “[o]ther made up articles, including dress patterns: Other: Other: Other: Other: Other.”

Comments must be received on or before July 7, 2017.

Proposed Modification Of A Ruling Letter Related To The Classification Of Certain Polyester Yarn

In NY N273725, CBP classified certain polyester elastomeric yarn in subheading 5402.31.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for synthetic filament yarn, not put up for retail sale, textured yarn, of nylon or other polyamides, measuring per single yarn not more than 500 decitex, multiple (folded) or cabled yarn. CBP has reviewed the decision and has determined it erred with regard to the classification of the yarn as the yarn was of polyester, and not, of nylon. As a yarn of textured polyester, the subject yarn is properly classified in subheading 5402.33.60, HTSUS, which provides for “Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: Textured yarn: Of polyesters: Multiple (folded) or cabled yarn.”

Comments must be received on or before July 7, 2017.

Polypropylene Yarn FTZ Application Filed

An application has been submitted to the Foreign-Trade Zones (FTZ) Board by the City of Waterville, Maine, grantee of FTZ 186, requesting production authority on behalf of Flemish Master Weavers (FMW), located within Subzone 186A in Sanford, Maine.

The FMW facility (127 employees, 4.08 acres) is used for the production of machine-made woven area rugs. FMW already has restricted FTZ authority to produce area rugs using polypropylene and polyester yarns in privileged foreign status (19 CFR 146.41), which precludes inverted tariff benefits on those inputs (see 81 FR 51850, August 5, 2016).

The pending application requests authority for FMW to use imported continuous filament polypropylene yarn in non-privileged foreign status (19 CFR 146.42). If the application were approved, on its domestic sales, FMW would be able to choose the duty rate during customs entry procedures that applies to machine-made woven area rugs (duty free) for the imported continuous filament polypropylene yarn (otherwise dutiable at 8%). Customs duties also could possibly be deferred or reduced on foreign-status production equipment. The request indicates that the savings from FTZ procedures would help improve the plant's international competitiveness.

Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary at the address below. The closing period for their receipt is August 7, 2017. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to August 21, 2017.