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.

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.

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.

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.

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).

• Johan Moulin, The Law Office of Lewis E. Leibowitz, on behalf of Flemish Master Weavers
• Thomas Crockett, on behalf of Footwear Distributors & Retailers of America (FDRA)
• Megan Costello, on behalf of Gildan USA Inc.
• Jim Hopkins, on behalf of HAMRICK MILLS, INC.
• Jessica Franken, on behalf of INDA, Association of the Nonwoven Fabrics Industry
• Mark Kent, on behalf of Kentwool
• Sandler, Travis & Rosenberg, on behalf of Marcraft Apparel Group, Inc.
• Erik Autor, on behalf of National Association of Foreign-Trade Zones (NAFTZ)
• Linda Dempsey, on behalf of National Association of Manufacturers
• Reece Langley, on behalf of National Cotton Council
• Gary Adams, on behalf of National Cotton Council
• Sara Beatty, on behalf of National Council of Textile Organizations (NCTO)
• Kody Bessent, on behalf of Plains Cotton Growers, Inc.
• Melanie Foley, on behalf of Public Citizen
• Marc Fleischaker, on behalf of Rubber and Plastic Footwear Manufacturers Association
• Thompson Lewis, on behalf of Sewell Clothing Company
• Julia Hughes, on behalf of USFIA
• Linden Wicklund, U.S. Industrial Fabrics Institute (USIFI) and Narrow Fabrics Institute (NFI)
• Megan Costello, on behalf of W.L. Gore & Associates Inc.

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.

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.

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.

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

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:

• Thomas Crockett, on behalf of Footwear Distributors & Retailers of America (FDRA)
• Linda Dempsey, on behalf of National Association of Manufacturers
• Melanie Foley, on behalf of Public Citizen

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.

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.

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.

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

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:

• Erik Autor, on behalf of National Association of Foreign-Trade Zones (NAFTZ)
• Megan Costello, on behalf of W.L. Gore & Associates Inc.
• Sara Beatty, on behalf of National Council of Textile Organizations (NCTO)
• Julia Hughes, on behalf of USFIA
• Johan Moulin, The Law Office of Lewis E. Leibowitz, on behalf of Flemish Master Weavers
• Linden Wicklund, U.S. Industrial Fabrics Institute (USIFI) and Narrow Fabrics Institute (NFI)

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.

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:

• Jim Hopkins, on behalf of HAMRICK MILLS, INC.
• Augustine Tantillo, on behalf of the NATIONAL COUNCIL OF TEXTILE ORGANIZATIONS
• Sandler, Travis & Rosenberg on behalf of MARCRAFT APPAREL GROUP, INC.
• Thompson Lewis, on behalf of Sewell Clothing Company
• Jessica Franken, on behalf of INDA, Association of the Nonwoven Fabrics Industry

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.

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.

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.

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.

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.

CPSC Staff Participating in a teleconference with ASTM D13.50 (Smart Textiles Subcommittee)

On June 12, 2017, Kent Carlson, Consumer Product Safety Commission Directorate for Health Sciences, and other CPSC staff will be participating in a teleconference with ASTM D13.50 (Smart Textiles subcommittee) and other stakeholders. The conference call was requested by ASTM.

Lila + Hayes Recalls Children’s Playwear Due to Choking Hazard

Recall Details

Units: About 600

Description: The recall includes Benton and Eloise pima cotton, sleeveless, bubble playwear. The Benton style was sold in navy, white, light blue and blue and green ticking stripes. The Eloise style was sold in navy, white, pink and blue and green floral. The garment has a snap closure at the bottom and crisscross straps that button over the shoulders on the front of the garment. The Benton style was sold in boys sizes NB, 0-24 months, 2T and 3T. The Eloise was sold in girls sizes NB, 0-24 months, 2T and 3T. The manufacture dates codes for December 2016 (DEC16) and February 2016 (FEB16) are printed on the inside garment tag located inside the seam. “Lila + Hayes” and the garment size are printed on the inside of the back of the garment.

Incidents/Injuries: The firm has received eight reports of the button detaching from the straps while in use. No injuries have been reported.

Sold at: Layette (Dallas, Texas), Hip Hip Hip Hooray (Dallas, Texas) and Born Children's (Montgomery, Alabama) stores and on-line at www.lilaandhayes.com from February 2017 through April 2017 for between $45 and $65.

Importer(s): Lila + Hayes LLC, of Fort Worth, Texas

Manufactured In: Peru

Request for Applicants for Appointment to the Commercial Customs Operations Advisory Committee

U.S. Customs and Border Protection ("CBP") is requesting that individuals who are interested in serving on the Commercial Customs Operations Advisory Committee ("COAC") apply for appointment. COAC provides advice and makes recommendations to the Secretaries of the Department of the Treasury (Treasury) and Department of Homeland Security (DHS) on all matters involving the commercial operations of CBP and related functions. Applications for membership should be submitted to CBP on or before July 24, 2017.

SUPPLEMENTARY INFORMATION: The Trade Facilitation and Trade Enforcement Act of 2015 re-established the COAC. The COAC is an advisory committee established in accordance with the provisions of the Federal Advisory Committee Act, 5 U.S.C. Appendix. The COAC shall advise the Secretaries of the Treasury and DHS on the commercial operations of CBP and related Treasury and DHS functions. In accordance with Section 109 of the Trade Facilitation and Trade Enforcement Act, the COAC shall:

(1) Advise the Secretaries of the Treasury and DHS on all matters involving the commercial operations of CBP, including advising with respect to significant changes that are proposed with respect to regulations, policies, or practices of CBP;

(2) provide recommendations to the Secretaries of the Treasury and DHS on improvements to the commercial operations of CBP;

(3) collaborate in developing the agenda for COAC meetings; and

(4) perform such other functions relating to the commercial operations of CBP as prescribed by law or as the Secretaries of the Treasury and DHS jointly direct.

The COAC consists of 20 members who are selected from representatives of the trade or transportation community served by CBP or others who are directly affected by CBP commercial operations and related functions. The members shall represent the interests of individuals and firms affected by the commercial operations of CBP, and without regard to political affiliation. The members will be appointed by the Secretaries of the Treasury and DHS from candidates recommended by the Commissioner of CBP. In addition, members will represent major regions of the country.

The COAC meets at least once each quarter, although additional meetings may be scheduled. Generally, every other meeting of the COAC may be held outside of Washington, DC, usually at a CBP port of entry. The members are not reimbursed for travel or per diem.

U.S.-Canada Trade Tiff Update

The Canadian government is sending a pointed message it is ready to use military equipment purchases as a wedge against alleged U.S. protectionist actions, according to this defense news ARTICLE.

In a somewhat related news item, the Government of Canada is SEEKING CANADIANS COMMENTS regarding re-negotiation of NAFTA.

Feds investigate whether Virginia Beach company sold equipment not made in U.S. to Pentagon

Thanks to Steve Warner at the BeaverLake6 Report for alerting us to this newspaper story about a company being investigated for possible Berry Amendment violations.

Paul O'Day, 1935 - 2017

The U.S. textile industry has lost one of its most effective advocates in Washington, and many of us in the industry mourn the loss of a true friend. Paul O'Day, President, American Fiber Manufacturers Association, died June 1st at age 82.

AMFA's press statement on Paul O'Day's passing is THIS LINK.

His obituary can be found here HERE.

Another FTZ Application of Interest

Bell Sports, Inc., of Rantoul, Illinois, has applied to the Foreign-Trade Zone Board for authorization of FTZ procedures for certain sporting equipment.

Production under FTZ procedures could exempt Bell Sports from customs duty payments on the foreign-status materials/components used in export production. On its domestic sales, Bell Sports would be able to choose the duty rates during customs entry procedures that apply to bicycle, motorcycle, football and baseball helmets; bicycle baby seats; bicycle car carrier racks; and, collectible football helmets (duty rates range from free to 10%) for the foreign-status materials/components noted below. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

The materials/components sourced from abroad include polypropylene webbing for bike helmets, stainless steel pins, aluminum screws, LED lights for bike helmets, and knee and elbow pad sets (duty rates range from 2.5% to 6.2%). The request indicates that the polypropylene webbing for bike helmets (classified under HTSUS 5806.32) will be admitted to the subzone in privileged foreign status (19 CFR 146.41), thereby precluding inverted tariff savings on this item.

As Agathon Associates noted in a BLOG POST YESTERDAY, the decision to not ask for tariff relieve on the imported textile components appears to be related to the successful past U.S. textile industry opposition to FTZ applications relating to articles that the domestic industry is willing and able to supply.

USTR Robert Lighthizer Statement on the President’s Paris Accord Decision

United States Trade Representative Robert Lighthizer released the following statement in response to the President's decision on the Paris climate accord:

"Today the President made a bold decision to protect American jobs from harmful consequences under the Paris climate accord. While giving other major economies a pass, the Paris accord would put American workers and businesses at an unfair disadvantage, undercutting American competitiveness in the global economy. "The Paris accord represents another unfair trade barrier that America cannot afford. I applaud the President’s leadership regarding the Paris accord, and I’m honored to stand with him in advancing his trade agenda that puts American workers and job-creators first."

Kreative Kids Recalls Children’s Robes Due to Violation of Federal Flammability Standard

Description: This recall includes eight styles of children’s 100-percent polyester, hooded robes. The robes were sold in sizes 4-6 and 7-9 in the following styles: purple elephant, lion, pink bear, lady bug, blue puppy, duck, monkey, and princess cat. A label sewn in the robes has item number 2013NW081 and “Kreative Kids” printed on it. The robes also have a hood, long-sleeves, a belt, cinched back and two front pockets.

Remedy: Consumers should immediately take the recalled robes away from children and contact Kreative Kids for a full refund.

Incidents/Injuries: None reported

Sold At: Online at Amazon.com and at gift and specialty stores in California, Iowa, New York, Ohio and Texas from September 2013 through April 2017 for between $15 and $17.

Importer(s): Kreative Kids Inc., of Pomona, Calif.

Distributor(s): Kreative Kids Inc., of Pomona, Calif.

Manufactured In: China

Textiles Continue to be a "No Go" for FTZs

Earlier this month, automobile manufacturer Mercedes Benz filed three Foreign-Trade Zone Notifications of Production relating to facilities in California, Georgia, and Maryland. Mercedes Benz currently pays import duties on imported components which are used in the production of cars that have a lower import duty than the components. Using FTZ procedures, Mercedes will import the components duty-free, assemble the vehicles, and then, when the finished vehicles entered U.S. commerce, they will pay duty on the value of the foreign components, but calculated at the lower rate applicable to motor vehicles. However, in the case of the one textile input that is imported, carpet of man-made fiber, Mercedes has elected to not request the duty savings. Other applicants over the past several months have, also, elected to not ask for tariff relief for textile inputs.

Until 2009 most textile articles were not eligible for consideration for an FTZ operation. Since then there have been several applications relating to textiles and in each case where the U.S. textile industry objected because they were willing and able to supply the textile article in question, the application was denied in whole, or at least as regards the textile component that was available from a domestic source. It appears that the consultant employed by Mercedes recognized that they were unlikely to succeed in getting FTZ benefits for the textile component and that excluding textiles from the application would avoid having the whole application held up due to a dispute over textiles.

CPSC to Meet with Green Science Policy Institute to Discuss Furniture, Mattress, and Textile Standards

On Jun5 5, 2017, Commissioner Robert Adler and Staff are scheduled to meet with representatives from Green Science Policy Institute ("GSPI"): Arlene Blum, Executive Director, and GSPI's new Science & Policy Fellow, Tom Bruton. The topic for discussion is furniture flammability standards.

That same day Allyson Tenney, CPSC Division Director, Directorate for Laboratory Sciences, and other CPSC staff are scheduled to meet with Arlene Blum from Green Science Policy Institute to discuss standards for mattresses and other textile products.