Klaussner Upholstered Furniture FTZ Approved

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

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

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

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

This is the latest of three FTZ filings from Klaussner. Clients of Agathon Associates and subscribers to Agathon Associates' Trade Advisor Service read more at www.agathonassociates.com/textile-pri/ftz/2017-48-B.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Textile Issues in USTR NAFTA Negotiating Objectives

Textile Issues in USTR NAFTA Negotiating Objectives

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

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

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

Customs Proposes to Revoke Certain Travel Goods Rulings

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

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

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

BACKGROUND

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

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

Sen. Schumer Block Two Trump Trade Nominees

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

Navy Clothing Contract Awarded

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

CPSC Attending the UL Furniture Flammability and Human Health Summit

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

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

Pima Agriculture Cotton Trust Fund

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

DoD Clothing Contract Awarded

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

Customs Brokers User Fee Payment for 2018

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

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

Recall Details

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

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

Incidents/Injuries: None Reported

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

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

Distributor(s): Woolino, of Westlake, Ohio

Manufactured In: China

Units: About 4,100

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

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

Agathon Associates Wishes You Happy Thankgiving

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

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

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

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

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

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

Federal Business Opportunities through November 22, 2017

Recently posted federal business opportunities.

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Title:             Industrial Strength Case
Sol. #:            IndustrialStrengthCase
Agency:            Department of Homeland Security
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Title:             Alterations to Newly Issued USAF Male and Female Dress and Utility Uniforms
Sol. #:            FA6712-18-I-0001
Agency:            Department of the Air Force
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Title:             TENT,COT
Sol. #:            SPE1C118T0509
Agency:            Defense Logistics Agency
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Title:             COVER,PREP SIDE
Sol. #:            SPE8ED18T0216
Agency:            Defense Logistics Agency
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Title:             Plater Carrier Generation III (PC Gen III)
Sol. #:            M67854-18-R-1309
Agency:            Department of the Navy
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Title:             FLAG,INDIVIDUAL
Sol. #:            SPE1C118T0242
Agency:            Defense Logistics Agency
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Title:             Commercial Item, Industrial Corn Starch 
Sol. #:            CT2235-18
Agency:            Department of Justice
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Title:             WEST POINT ZIPPERS
Sol. #:            W911SD-18-T-0025
Agency:            Department of the Army
-------------------------------------------------------
Title:             Stake, Hold-Down Tent
Sol. #:            8340-01-462-6547
Agency:            Defense Logistics Agency
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Title:             CLOTH,IMPREGNATED
Sol. #:            SPE1C118T0492
Agency:            Defense Logistics Agency
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Title:             Aircraft Helmets
Sol. #:            70Z048-18-Q-PCL10500
Agency:            Department of Homeland Security
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Title:             CLOTH, MOCK ELASTIQUE, POLYESTER and WOOL
Sol. #:            W911SD-18-R-0004
Agency:            Department of the Army
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Title:             Representational Design and Floor Coverings 
Sol. #:            103018BLD44
Agency:            Department of State
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Title:             TENT
Sol. #:            SPE1C118U0001
Agency:            Defense Logistics Agency
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Title:             HRD Plaques and Medal Sets
Sol. #:            HQ0034-18-R-0018
Agency:            Other Defense Agencies
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Title:             OCP Uniforms 
Sol. #:            W91ZRU18Q6000
Agency:            Department of the Army
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Title:             THIS SOLICITATION IS FOR FIFTY (50) POLICE VESTS FOR THE VA GREATER LOS ANGELES HEALTHCARE SYSTEM. THIS SOLICITATION IS COMPETED AS A SMALL BUSINESS SET-ASIDE; HOWEVER, SPECIAL CONSIDERATION WILL BE GIVEN TO SDVOSB AND VOSB CONTRACTORS. 
Sol. #:            36C26218Q0137
Agency:            Department of Veterans Affairs
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Title:             Deployment Gear 
Sol. #:            FA487718Q0079
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             TEMPER TYPE XLVIII-STA
Sol. #:            SPE1C118T0484
Agency:            Defense Logistics Agency
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Title:             CASE,SHOTGUN AMMUNI
Sol. #:            SPE1C118Q0049
Agency:            Defense Logistics Agency
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Title:             Industrial Strength Case
Sol. #:            IndustrialStrengthCase
Agency:            Department of Homeland Security
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Title:             Safety Shoes
Sol. #:            W91QV1-18-Q-0007
Agency:            Department of the Army
-------------------------------------------------------
Title:             Soft Torso Protection Body Armor (Level IV)
Sol. #:            70Z08418QBB512700
Agency:            Department of Homeland Security
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Title:             DECORATION SET,INDI
Sol. #:            SPE1C118T0478
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             INSIGNIA,BRANCH OF
Sol. #:            SPE1C118T0472
Agency:            Defense Logistics Agency
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Title:             INSIGNIA,SERVICE CAP
Sol. #:            SPE1C118T0473
Agency:            Defense Logistics Agency
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Title:             DECORATION SET,INDIVID
Sol. #:            SPE1C118T0470
Agency:            Defense Logistics Agency
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Title:             DECORATION,UNIT
Sol. #:            SPE1C118T0471
Agency:            Defense Logistics Agency
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Title:             Soft Torso Protection Body Armor (Level IV)
Sol. #:            70Z08418QBB512700
Agency:            Department of Homeland Security
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Title:             U.S. Senate Page Program Uniforms
Sol. #:            RFQ-2018-015
Agency:            United States Senate
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Title:             Safety Equipment, Components, and Uniforms - INL/Honduras
Sol. #:            JDLRFQ14
Agency:            Department of State
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Title:             BOATSWAIN'S PIPE
Sol. #:            SPE1C118Q0048
Agency:            Defense Logistics Agency
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Title:             USAFA Cadet Caps
Sol. #:            FA7000-18-R-0008
Agency:            Department of the Air Force
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Title:             Slide Fasteners/Zippers, Berry Amendment Compliant for Military Use
Sol. #:            CT2234-18
Agency:            Department of Justice
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Title:             THIS SOLICITATION IS FOR FIFTY (50) POLICE VESTS FOR THE VA GREATER LOS ANGELES HEALTHCARE SYSTEM. THIS SOLICITATION IS COMPETED AS A SMALL BUSINESS SET-ASIDE; HOWEVER, SPECIAL CONSIDERATION WILL BE GIVEN TO SDVOSB AND VOSB CONTRACTORS. 
Sol. #:            36C26218Q0137
Agency:            Department of Veterans Affairs
-------------------------------------------------------
Title:             Thunderbird Showsuits
Sol. #:            FA486118QC011
Agency:            Department of the Air Force
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Title:             SAFETY SHOE MOBILE
Sol. #:            N0016418Q0017
Agency:            Department of the Navy
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Title:             STORAGE BAG
Sol. #:            SPRDL1-18-Q-0004
Agency:            Department of the Army
-------------------------------------------------------
Title:             Pelican Cases
Sol. #:            PelicanCasesFEMA
Agency:            Department of Homeland Security
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Title:             Plater Carrier Generation III (PC Gen III)
Sol. #:            M67854-18-R-1309
Agency:            Department of the Navy
-------------------------------------------------------
Title:             CLOTH,LAMINATED
Sol. #:            SPE1C118T0448
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             SPEAR Family of Tactical Headborne Systems Coxswain Helmet System
Sol. #:            H92222-17-R-0027
Agency:            Other Defense Agencies
-------------------------------------------------------
Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             PAD,CROWN,FLYER'S H
Sol. #:            SPE1C118T0446
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             U.S. Senate Page Program Uniforms
Sol. #:            RFQ-2018-015
Agency:            United States Senate
-------------------------------------------------------
Title:             Pelican Cases
Sol. #:            PelicanCasesFEMA
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             SPECTACLES,LASER PR
Sol. #:            SPE1C118T0445
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             CUSTOM TARPS
Sol. #:            W912GY-18-R-0003
Agency:            Department of the Army
-------------------------------------------------------
Title:             TEMPER TYPE XLVIII-STA
Sol. #:            SPE1C118T0442
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Concealable Cool Vest
Sol. #:            RFQ-0000804
Agency:            Department of Justice
-------------------------------------------------------
Title:             Corps of Engineers Flags
Sol. #:            W912BU-18-T-0004
Agency:            Department of the Army
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Title:             Commercial- Interment Flag-Manus Medical, LLC    
Sol. #:            VA11917R0398
Agency:            Department of Veterans Affairs
-------------------------------------------------------
Title:             Alternate Feeding Location
Sol. #:            F1EFSS82670100
Agency:            Department of the Air Force
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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.

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

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

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

Read the report HERE.

Smart Fabrics Summit Registration is Now Open

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

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

This Event Features

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

Seating is limited and expected to sell out!

USTR Releases Updated NAFTA Negotiating Objectives

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

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

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

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

USTR engagement on NAFTA renegotiations includes:

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

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

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

Background

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

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

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

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

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

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

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

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

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

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

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

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

Making a Claim for Preferential Tariff Treatment

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

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

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

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

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

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

Declaration (Certification of Origin) and Required Data Elements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rubie Costume and the U.S. government have been arguing over classification of Hallowe'en and other seasonal costumes for at least 20 years. Clients of Agathon Associates can read more at http://www.agathonassociates.com/textile-pri/festive-articles/index.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Miscellaneous Tariff Bill Filed

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

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

Some observations by Agathon Associates --

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

Clients of Agathon Associates can get more details at http://www.agathonassociates.com/textile-pri/mtb/index.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

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

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

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

About Pendleton -- Setting the standard for classic American style, Pendleton is a lifestyle brand recognized worldwide as a symbol of American heritage, authenticity and craftsmanship. With six generations of family ownership, since 1863, the company celebrates 154 years of weaving fabric in the Pacific Northwest in 2017. Known for fabric innovation, Pendleton owns and operates two of America’s remaining woolen mills, constantly updating them with state-of-the-art looms and eco-friendly technology. Inspired by its heritage, the company designs and produces apparel for men and women, blankets and accessories, home décor and gifts. Pendleton is available through select retailers in the U.S., Canada, Europe, Japan, Korea and Australia as well as Pendleton stores, company catalogs and direct-to-consumer channels, including the Pendleton website: http://www.pendleton-usa.com

Army Combat Boot Contract Awarded

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

Federal Business Opportunities through November 15, 2017

Recently posted federal business opportunities.

-------------------------------------------------------
Title:             Deployment Gear 
Sol. #:            FA487718Q0079
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             Commercial- Interment Flag (amended 8/29/2017)    
Sol. #:            VA11917R0398
Agency:            Department of Veterans Affairs
-------------------------------------------------------
Title:             Endurance Pillows
Sol. #:            TC150002
Agency:            Department of Justice
-------------------------------------------------------
Title:             Short Wave Infrared (SWIR) Signature Reducing Technology
Sol. #:            W911QY-18-R-0009
Agency:            Department of the Army
-------------------------------------------------------
Title:             Combat Half JacketJacket that is compatable with the CRYE Adaptive Vest System (body armor) and  can be worn over body armorer and still allow access to key items on front and side of the body armor. 
Sol. #:            000375
Agency:            Department of the Army
-------------------------------------------------------
Title:             OCP Uniforms 
Sol. #:            W91ZRU18Q6000
Agency:            Department of the Army
-------------------------------------------------------
Title:             CUSTOM TARPS
Sol. #:            W912GY-18-R-0003
Agency:            Department of the Army
-------------------------------------------------------
Title:             FIREMAN HOOD
Sol. #:            SPE8E918T0596
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             FEMA Safety Vest
Sol. #:            FEMASafetyVest
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             HELMET,COMBAT VEHIC
Sol. #:            SPE7L318U0034
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             STRAP ASSEMBLY,CHIN
Sol. #:            SPE1C118Q0025
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Drum & Bugle Corps Red Coats
Sol. #:            M00264-17-T-0255
Agency:            Department of the Navy
-------------------------------------------------------
Title:             PAD SET,FITTING,FLY
Sol. #:            SPE1C118Q0038
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Observe Controler Trainer (OCT) FLKS System with Hydration pouch
Sol. #:            POLKJRTCSFS8465
Agency:            Department of the Army
-------------------------------------------------------
Title:             PANEL MARKER
Sol. #:            SPE1C118T0393
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             BALLISTIC PANELS AND STAB RESISTANT INSERTS FOR BODY ARMOR VESTS
Sol. #:            CT2232-18
Agency:            Department of Justice
-------------------------------------------------------
Title:             Commercial- Interment Flag- A2Z Promo Zone    
Sol. #:            VA11917R0398
Agency:            Department of Veterans Affairs
-------------------------------------------------------
Title:             Modular Command Post, Systems & Tents, Green & Tan
Sol. #:            SPE1C1-17-R-0142
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:             Representational Design and Floor Coverings
Sol. #:            103018BLD16
Agency:            Department of State
-------------------------------------------------------
Title:             U.S. Senate Page Program Uniforms
Sol. #:            RFQ-2018-015
Agency:            United States Senate
-------------------------------------------------------
Title:             Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
Sol. #:            7FCI-L3-030084-B
Agency:            General Services Administration
-------------------------------------------------------
Title:             Personal Protective Equipment Blanket Purchase Agreement
Sol. #:            W912HQ-18-T-0001
Agency:            Department of the Army
-------------------------------------------------------
Title:             Soft Torso Protection Body Armor (Level IV)
Sol. #:            70Z08418QBB512700
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             SOCKS, QUARTER, WHITE, PT, MC
Sol. #:            SPE1C1-18-R-0015
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Bomb Suits IDIQ
Sol. #:            FA8051-18-R-3006
Agency:            Department of the Air Force
-------------------------------------------------------
Title:             ROOF CAP ASSEMBLY
Sol. #:            
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Leather Hides
Sol. #:            OAM18005S
Agency:            United States House of Representatives
-------------------------------------------------------
Title:             OCP Uniforms 
Sol. #:            W91ZRU18Q6000
Agency:            Department of the Army
-------------------------------------------------------
Title:             Short Wave Infrared (SWIR) Signature Reducing Technology
Sol. #:            W911QY-18-R-0009
Agency:            Department of the Army
-------------------------------------------------------
Title:             2-Man Combat Tent
Sol. #:            SPE1C1-18-R-0011
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             INSIGNIA,SERVICE CAP
Sol. #:            SPE1C118T0191
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Leather Hides
Sol. #:            OAM18005S
Agency:            United States House of Representatives
-------------------------------------------------------
Title:             WEBBING,TEXTILE
Sol. #:            
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Commercial Off The Shelf (COTS) - Shelter Systems
Sol. #:            SPE1C1-18-R-0003
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.

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

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

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

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

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

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

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

Army and Air Force Clothing Contract Awarded

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

DR-CAFTA Special 809 Reminder to the Trade

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

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

Article 3.26 of DR-CAFTA states:

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

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

Special 809 Usage

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

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

American Woolen Company Honored at American Manufacturer

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

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

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

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

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

Media registration for NAFTA renegotiations: Round five in Mexico

The fifth round of NAFTA renegotiations will be held in Mexico City, Mexico, from November 17 to 21, 2017. The Mexican government has invited media to register, as per the information provided below.

Members of the media must register before 8:00 p.m. (Mexico City time) on Tuesday, November 14, 2017, at TLCAN/NAFTA (available in English or Spanish only).

Learn More About NAFTA

Agathon Associates has prepared a History and Analysis of the NAFTA renegotiation to assist clients. To access the page you will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

OshKosh Recalls Baby B’gosh Quilted Jacket Due to Choking Hazard

This recall involves OshKosh Baby B’gosh quilted jackets in pink and gray.  The style number can be found on the front of the care tag sewn on the inside of the product, and the UPC number can be found on the back of the same care tag.  The style number and UPC number can also be found on the price tag.  Only jackets with the following style numbers and UPC codes are included in the recall:

Color	Style Numbers	Size	UPC Codes
Pink	13003910	0-3M	190795946918
		6M	190795946956
		9M	190795946963
		12M	190795946925
		18M	190795946932
		24M	190795946949
	23003910	2T	190795946062
		3T	190795946079
		4T	190795946086
		5T	190795946093
Gray	12691410	0-3M	190795930399
		12M	190795930405
		18M	190795930412
		24M	190795930429
		6M	190795930436
		9M	190795930443
	22691410	2T	190795919660
		3T	190795919677
		4T	190795919684
		5T	190795919691

 

 

Remedy:

Consumers should immediately take the recalled jackets away from children and return them to any OshKosh or Carter’s store or contact OshKosh for a full refund in the form of a $34 gift card (for an infant size) or $36 gift card (for a toddler size).

Incidents/Injuries:

OshKosh received three reports of a snap detaching, including one report of a child putting a detached snap in her mouth.

Sold At:

OshKosh, Bon-Ton, Kohl’s, Fred Meyer and other retail and department stores nationwide, and online at www.oshkosh.com between August 2017 and September 2017 for between $35 and $40.”

Importer(s):

OshKosh B’gosh Inc., Atlanta, Georgia

Manufactured In:

Indonesia

Units:

About 38,000 (in addition, about 5,000 were sold in Canada).

Morocco Knit Fabric Short Supply Request List

On Monday we REPORTED on a request from the Government of Morocco to have several knit fabrics added to the short supply list. The list includes a wide range of circular knits, warp knits, stretch knits, and fleece.

Note, that although the request from the Government of Morocco relates the fabrics on the list to specific end-use apparel articles, it is likely that were a fabric approved from a particular end use, that future requests may be made for the same fabric for other end uses, and approval in this case would be cited as the basis for the later request.

Note, that the classifications given for the fabrics are at the 6-digit subheading level, which is much broader than the U.S. 10-digit statistical breakout that many U.S. companies are accustomed to working with, with the result that each of the 19 "fabrics" is actually a itself of group of fabrics.

Agathon Associates has prepared a SPREADSHEET to assist clients in evaluating this long list of requested fabrics. To access the file you will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

UNDERSTANDING THE RISKS & OPPORTUNITIES OF THE NAFTA RENEGOTIATION

N’WARE TECHNOLOGIES PRESENTS: UNDERSTANDING THE RISKS & OPPORTUNITIES OF THE NAFTA RENEGOTIATION

SPEAKERS: David Trumbull and Glenn Page

NASHUA, NH – 7:00 AM, November 30, 2017

PORTSMOUTH, NH – 12:00 PM, December 7, 2017

PORTLAND, ME – 12:00 PM, December 12, 2017

Come and learn international trade strategies and how you could benefit from the NAFTA renegotiation with our panel of experts. For more information call 1-800-270-9420 or email sajacques@nwaretech.com.

Congressional Research Service Report on NAFTA and Textiles and Apparel

On October 30, 2017, the Congressional Research Service issued "Renegotiating NAFTA and U.S. Textile Manufacturing" (R44998), according to the report:

"When the North American Free Trade Agreement (NAFTA) was negotiated more than two decades ago, textiles and apparel were among the industrial sectors most sensitive to the agreement’s terms. NAFTA, which was implemented on January 1, 1994, has encouraged the integration of textile and apparel production in the United States, Canada, and Mexico. For example, under NAFTA’s “yarn-forward” rule of origin, textiles and apparel benefit from tariff-free treatment in all three countries if the production of yarn, fabric, and apparel, with some exceptions, is done within North America.

"The United States maintains a bilateral trade surplus in yarns and fabrics with its NAFTA partners. In 2016, the United States had a $4.1 billion surplus in yarns and fabrics and a positive balance of around $720 million in made-up textile products (such as home textiles and furnishings) with Canada and Mexico. U.S. exports of yarns and fabrics shipped to Mexico and Canada were valued at close to $6 billion last year. In apparel, the United States had a trade surplus with Canada of $1.4 billion and a trade deficit with Mexico of $2.7 billion in 2016.

On May 18, 2017, the Trump Administration notified Congress of its intent to renegotiate the agreement. In July 2017, the Administration announced specific goals for textiles and apparel among its renegotiating objectives, which include improving competitive opportunities for U.S. textile and apparel products, but also taking into account U.S. import sensitivities. Also germane to textiles and apparel are several other renegotiating objectives, such as enhancing customs enforcement to prevent unlawful transshipment of these goods from outside the region and ensuring that requirements for use of domestic textiles and apparel in U.S. government purchases primarily benefit producers located in the United States.

"NAFTA renegotiation started in August 2017. There is widespread support for continuation of the agreement among U.S. textile and apparel producers, although there are significant differences of opinion with respect to certain provisions. In particular, U.S. textile manufacturers generally favor eliminating all exceptions to NAFTA’s yarn-forward rule, whereas U.S. retailers and apparel groups oppose tightening the rule.

If the United States were to exit NAFTA, imports of textiles from Mexico and Canada would face U.S. tariffs as high as 20%, and imports of apparel would have tariff rates of up to 32%. U.S. exports of textiles and apparel could face higher tariff rates entering Canada and Mexico. One possibility is that U.S. withdrawal from NAFTA could lead U.S. retailers and apparel brands to source more of their goods from Asia, which could reduce demand for U.S.-made yarns and fabrics within the NAFTA region."

U.S. Government Offices to Close Friday, November 10th for Veterans Day

Saturday, November 11, 2017, is Veterans Day, a federal holiday in the United States. Because the holiday falls on the weekend, national, state, and local government offices will be closed in commemoration on FRIDAY, NOVEMBER 10th. Most businesses will be open.

Q. Which is the correct spelling of Veterans Day?
a. Veterans Day
b. Veteran's Day
c. Veterans' Day

A. Veterans Day (choice a, above). Veterans Day does not include an apostrophe but does include an "s" at the end of "veterans" because it is not a day that "belongs" to veterans, it is a day for honoring all veterans.

Q. On what day of the week will Veterans Day be observed?

A. Veterans Day is always observed officially on November 11, regardless of the day of the week on which it falls. The Veterans Day National Ceremony, like most ceremonies around the nation, is held on Veterans Day itself. However, when Veterans Day falls on a weekday, many communities choose to hold Veterans Day parades or other celebrations on the weekend before or after November 11 so that more people can participate.

Q. What is the difference between Veterans Day and Memorial Day?

A. Many people confuse Memorial Day and Veterans Day. Memorial Day is a day for remembering and honoring military personnel who died in the service of their country, particularly those who died in battle or as a result of wounds sustained in battle. While those who died are also remembered, Veterans Day is the day set aside to thank and honor ALL those who served honorably in the military - in wartime or peacetime. In fact, Veterans Day is largely intended to thank LIVING veterans for their service, to acknowledge that their contributions to our national security are appreciated, and to underscore the fact that all those who served - not only those who died - have sacrificed and done their duty.

Q. Why are red poppies worn on Veterans Day, and where can I obtain them?

A. The wearing of poppies in honor of America's war dead is traditionally done on Memorial Day, not Veterans Day. For information on how to obtain poppies for use on Memorial Day, contact a veterans service organization, such as the Veterans of Foreign Wars of the United States (VFW) or The American Legion, as a number of veterans organizations distribute poppies annually on Memorial Day.

Federal Business Opportunities through November 8, 2017

Recently posted federal business opportunities.

-------------------------------------------------------
Title:             Short Wave Infrared (SWIR) Signature Reducing Technology
Sol. #:            W911QY-18-R-0009
Agency:            Department of the Army
-------------------------------------------------------
Title:             U.S. Senate Page Program Uniforms
Sol. #:            RFQ-2018-015
Agency:            United States Senate
-------------------------------------------------------
Title:             TENT
Sol. #:            SPE1C118T0359
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             TENT,COT
Sol. #:            SPE1C118T0354
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Plastic Sheeting
Sol. #:            70FB7018R00000011
Agency:            Department of Homeland Security
-------------------------------------------------------
Title:             Tarpaulin 16' X 100'
Sol. #:            8340-00-428-7590-Tarpaulin-16ftX100ft(2017)
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Chaplain Kits & Various Component Items
Sol. #:            SoiurcesSought
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             STRAP AND DRINK TUBE
Sol. #:            SPE1C118Q0024
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             STRIKE SPLIT FRONT CHEST RIG
Sol. #:            8465
Agency:            Department of the Army
-------------------------------------------------------
Title:             INSIGNIA,SHOULDER S
Sol. #:            SPE1C117Q0475
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             COAT INTERLINING
Sol. #:            W911SD-18-T-0011
Agency:            Department of the Army
-------------------------------------------------------
Title:             HOOD,RADIOACTIVE CO
Sol. #:            
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Gen III Layer 5 Soft Shell Jacket
Sol. #:            SPE1C1-18-R0009
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             Joint Service Lightweight Integrated Suit Technology (JSLIST) Overgarment, Coat and Trousers, Chemical Protective
Sol. #:            SPM1C113R0018
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             First Responder Uniforms
Sol. #:            W912BU18R0009
Agency:            Department of the Army
-------------------------------------------------------
Title:             Balaclavas
Sol. #:            IQ1_LOG201800007
Agency:            United States Capitol Police
-------------------------------------------------------
Title:             Ball Caps
Sol. #:            IQ1_LOG201800008
Agency:            United States Capitol Police
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Title:             GLOVES,MEN'S AND WO
Sol. #:            SPE1C118T0342
Agency:            Defense Logistics Agency
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Title:             Concealable Cool Vest
Sol. #:            RFQ-0000804
Agency:            Department of Justice
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Title:             TENT
Sol. #:            SPE1C118T0338
Agency:            Defense Logistics Agency
-------------------------------------------------------
Title:             PAD SET,FITTING,FLY
Sol. #:            SPE1C118T0331
Agency:            Defense Logistics Agency
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Title:             Observe Controler Trainer (OCT) FLKS System with Hydration pouch
Sol. #:            POLKJRTCSFS8465
Agency:            Department of the Army
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Title:             INSIGNIA,SHOULDER S
Sol. #:            SPE1C117Q0474
Agency:            Defense Logistics Agency
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Title:             LINER,END SECTION,TEMPER(TEMPERATE)
Sol. #:            
Agency:            Defense Logistics Agency
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Title:             Uniform Rental and Cleaning - The contractor shall furnish (F.O.B. Destination within consignees premises), all  labor, equipment, materials, supplies and transportation  for uniform rental/cleaning at Houston National Cemetery. 
Sol. #:            36C78618Q0037
Agency:            Department of Veterans Affairs
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Title:             Observe Controler Trainer (OCT) FLKS System with Hydration pouch
Sol. #:            POLKJRTCSFS8465
Agency:            Department of the Army
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Title:             Material for the shoulder reinforcement piece (1641 USG) and the material for the front fusible (TG3) on dress coats
Sol. #:            SPE1C1-16-D-1036
Agency:            Defense Logistics Agency
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Title:             HELMET,COMBAT VEHIC
Sol. #:            SPE7L318T2278
Agency:            Defense Logistics Agency
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Title:             BALLISTIC PANELS AND STAB RESISTANT INSERTS FOR BODY ARMOR VESTS
Sol. #:            CT2232-18
Agency:            Department of Justice
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Title:             FLAG,NATIONAL
Sol. #:            SPE1C118T0155
Agency:            Defense Logistics Agency
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Title:             Gen III Layer 5 Soft Shell Jacket
Sol. #:            SPE1C1-18-R0009
Agency:            Defense Logistics Agency
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Title:             Unit Crest
Sol. #:            RFQPR11068539
Agency:            Department of the Army
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Title:             Restraint Wraps RFI
Sol. #:            192118IAOWRAPS026
Agency:            Department of Homeland Security
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Title:             Military Combat Eye Protection (MCEP) Program RFI
Sol. #:            W91CRB-18-MCEP-RFI
Agency:            Department of the Army
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Title:             CLOTH,LAMINATED
Sol. #:            SPE1C118T0316
Agency:            Defense Logistics Agency
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Title:             TENT
Sol. #:            SPE1C118T0261
Agency:            Defense Logistics Agency
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Title:             Bagsuits
Sol. #:            N4523A-7275-V513
Agency:            Department of the Navy
-------------------------------------------------------
Title:             HOOD,RADIOACTIVE CO
Sol. #:            SPE1C118T0315
Agency:            Defense Logistics Agency
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Title:             Soft Torso Protection Body Armor (Level IV)
Sol. #:            70Z08418QBB512700
Agency:            Department of Homeland Security
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Title:             FiberTect Responder Decontamination Kits
Sol. #:            SAQMMA17F3916
Agency:            Department of State
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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.

In Outrageous Move that May Harm U.S.-Moroccan Relations, Morocco Claims There is no Woven Wool Fabric or Knit Fabric of Any Kind Made in the U.S., and Seeks Short Supply Designation

Background: Article 4.3.3 of the United States-Morocco Free Trade Agreement provides that, on the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties. If a particular fiber, yarn, or fabric is found to not be available the rules of origin may be modified to allow non-originating fiber, yarn, or fabric. This is commonly known as a "short supply" request. In a egregious violation of the spirit of the agreement, and in total disregard for the facts, the government of Morocco has presented the U.S. with an outrageous proposed "short supply" list, alleging that there is no U.S. production of woven fabric of wool or knitted fabric of any fiber.

Comments must be submitted by January 5, 2018 to the Chairman, Committee for the Implementation of Textile Agreements. Agathon Associates is available to assist any of the scores of U.S. companies that make the fabrics the subject to this utterly without merit request.

The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of MODALINE HOLDING, requesting that the United States consider whether the USMFTA rules of origin should be modified to allow the use of 83-94% wool/4%-15% nylon/1%-7% spandex woven fabric classified in subheading 5112.19 and 5112.20 of the HTSUS that is not originating under the USMFTA.

The Government of the United States received a request from the Government of Morocco on October 10, 2017, on behalf of SALSABILE, requesting that the United States consider whether the USMFTA rule of origin for certain knit apparel should be modified to allow the use of certain knit fabrics that are not originating under the USMFTA. The fabrics subject to this request are--

Fabric 1: Knit fleece fabric of acrylic (67-73%) and viscose (27-33%), weighing 200-280 g/m2, classified in subheading 6001.22 of the HTSUS.

Fabric 2: Dyed knit fabric of nylon (52-58%), wool (27-33%), and acrylic (12-18%), classified in subheading 6006.32 of the HTSUS.

Fabric 3: Dyed knit fabric of nylon (42-48%), viscose (37-43%), and wool (12-18%), classified in subheading 6006.32 of the HTSUS.

Fabric 4: Dyed knit fabric of nylon (41-47%), wool (18-24%), acrylic (18-24%), and mohair (11-17%), classified in subheading 6006.32 of the HTSUS.

Fabric 5: Dyed knit fabric of cotton (50-56%), acrylic (34-40%), and polyester (7-13%), classified in subheadings 6006.22 and 6006.32 of the HTSUS.

Fabric 6: Dyed knit fabric of polyester (57-63%), wool (27-33%), and nylon (7-13%), classified in subheading 6006.32 of the HTSUS.

Fabric 7: Dyed knit fabric of cotton (51-60%), rayon (30-40%), and nylon (4-10%), classified in subheading 6006.22 of the HTSUS.

Fabric 8: Knit fabric of rayon (50-84%), polyester (14-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 9: Knit fabric of polyester (50-65%), rayon (30-49%), and elastomeric (1-10%), classified in subheadings 6004.10, 6005.36, 6005.37, 6005.38, 6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 10: Knit fabric of rayon (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 11: Knit fabric of rayon (51-84%) and polyester (16-49%), classified in subheadings 6005.41, 6005.42, 6005.43, 6005.44, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS.

Fabric 12: Knit fabric of polyester (51-65%) and rayon (35-49%), classified in subheadings 6005.36, 6005.37, 6005.38,6005.39, 6006.31, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 13: Knit fabric of synthetic fiber (90-99%) and elastomeric (1-10%), classified in subheadings 6004.10, 6005.37, 6005.38, 6005.39, 6006.32, 6006.33, and 6006.34 of the HTSUS.

Fabric 14: Knit jersey fabric, other than warp knit, of lyocell (44-50%), rayon (44-50%), and elastomeric (3-9%), weighing 150-220 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.

Fabric 15: Slub jersey fabric of cotton (51-65%) and rayon (35-49%), weighing 120-225 g/m2, classified in subheading 6006.22 of the HTSUS;

Fabric 16: Knit jersey fabric, other than warp knit, of rayon (30-36%), acrylic (19-35%), polyester (27-33%), and elastomeric (3-8%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.

Fabric 17: Knit fabric of cotton (51-70%), rayon (33-49%), and elastomeric (2-7%), weighing up to 275 g/m2, classified in subheadings 6004.10, 6006.21, 6006.22, and 6006.24 of the HTSUS.

Fabric 18: Knit jersey fabric, other than warp knit, of polyester (43-46%), rayon (43-45%), flax (5-9%), and elastomeric (4-5%), weighing 125-250 g/m2, classified in subheadings 6004.10 and 6006.32 of the HTSUS.

Fabric 19: Slub jersey fabric, other than warp knit, of rayon (92-98%), polyester (2-3%), and elastomeric (2-5%), weighing 150-200 g/m2, classified in subheadings 6004.10 and 6006.42 of the HTSUS.

The list includes a wide range of circular knits, warp knits, stretch knits, and fleece. Note, that the classifications given for the fabrics are at the 6-digit subheading level, which is much broader than the U.S. 10-digit statistical breakout that many U.S. companies are accustomed to working with, with the result that each of the 19 "fabrics" is actually a itself of group of fabrics. Agathon Associates has prepared a SPREADSHEET to assist clients in evaluating this long list of requested fabrics. Also note, that although the request from the Government of Morocco relates the fabrics on the list to specific end-use apparel articles, it is likely that were a fabric approved from a particular end use, that future requests may be made for the same fabric for other end uses, and approval in this case would be cited as the basis for the later request.

On December 18, 2017, Milliken and Company submitted Comments in Opposition, stating they can make all of the knit fabrics subject of the request.

As of noon on January 3rd, the OTEXA website showed no comments received in opposition to the woven wool request.