USTR Releases 2018 Special 301 Report on Intellectual Property Rights

On April 27, 2018, the Office of the United States Trade Representative released the 2018 Special 301 Report.

Significant elements of the 2018 Special 301 Report include the following:

• USTR identified 36 countries on the Priority Watch List or Watch List. Trading partners on the Priority Watch List present the most significant concerns this year regarding inadequate or ineffective IP protection or enforcement or actions that otherwise limit market access for persons relying on IP protection.
  
• USTR identified 12 countries—Algeria, Argentina, Canada, Chile, China, Colombia, India, Indonesia, Kuwait, Russia, Ukraine, and Venezuela—on the Priority Watch List. The IP issues in these countries will be the subject of intense bilateral engagement during the coming year.
  
• China is on the Priority Watch List for the 14th consecutive year. Longstanding and new IP concerns merit increased attention, including China’s coercive technology transfer practices, range of impediments to effective IP enforcement, and widespread infringing activity—including trade secret theft, rampant online piracy, and counterfeit manufacturing.
  
• India also remains on the Priority Watch List this year for longstanding challenges in its IP framework and lack of sufficient measurable improvements, particularly with respect to patents, copyrights, trade secrets, and enforcement, as well as for new issues that have negatively affected U.S. right holders over the past year.
  
• USTR downgrades Canada from the Watch List to the Priority Watch List this year for failing to make progress on overcoming important IP enforcement challenges. Key concerns include poor border enforcement generally and, in particular, lack of customs authority to inspect or detain suspected counterfeit or pirated goods shipped through Canada, concerns about IP protections and procedures related to pharmaceuticals, deficient copyright protection, and inadequate transparency and due process regarding the protection of geographical indications.
  
• USTR downgrades Colombia from the Watch List to the Priority Watch List for its longstanding failure to make meaningful progress in fulfilling obligations under the United States-Colombia Trade Promotion Agreement, such as obligations to amend its copyright law. USTR is also announcing an Out-of-Cycle Review of Colombia to assess its progress in addressing these and other concerns.
  
• USTR also identified 24 trading partners on the Watch List: Barbados, Bolivia, Brazil, Costa Rica, Dominican Republic, Ecuador, Egypt, Greece, Guatemala, Jamaica, Lebanon, Mexico, Pakistan, Peru, Romania, Saudi Arabia, Switzerland, Tajikistan, Thailand, Turkey, Turkmenistan, the United Arab Emirates, Uzbekistan, and Vietnam. IP challenges in these countries also merit increased bilateral engagement in 2018-2019.
  
• USTR places Saudi Arabia and the United Arab Emirates (UAE) on the Watch List. For Saudi Arabia, there are concerns regarding recent deteriorations in IP protection for pharmaceutical products, in addition to outstanding concerns regarding IP enforcement and the continued use of unlicensed software by the government. For the UAE, the placement on the Watch List is in response to longstanding concerns about the sale and transshipment of counterfeit goods and the establishment of collecting management organizations, as well as recent policy changes that may not provide adequate and effective IP protection for pharmaceutical products.
  
• USTR closes the Out-of-Cycle Reviews (OCRs) for Kuwait without a change in status and Tajikistan with a downgrade to the Watch List. Kuwait has not yet brought its copyright regime in line with its international commitments and still needs to make necessary improvements to the regulations implementing its 2016 Copyright and Related Rights Law. Tajikistan failed to address unlicensed software use by government agencies during the OCR. USTR announced that it will initiate OCRs for Colombia, Kuwait, and Malaysia to promote engagement and progress on specific IP opportunities and challenges.
  
• USTR highlights engagement with trading partners to address concerns related to IP protection and enforcement and market access barriers with respect to pharmaceuticals and medical devices so that trading partners contribute their fair share to research and development of new treatments and cures.

"Textiles/Apparel Sourcing: Trends, Opportunities and Challenges" Webinar

The U.S. Commercial Service's TAS team initiative in collaboration with the Apparel Textiles Sourcing organizers of an international show in Miami are presenting a webinar on apparel and textiles sourcing. Speakers from National Council of Textile Organizations, Reshore Now and company representatives will discuss the current state of the Textile industry, the global textiles and apparel sourcing trends, and reshoring opportunities and challenges. The webinar will also be a forum to promote the upcoming Apparel Textiles Sourcing in Miami, May 21-23, 2018.

Event: "Textiles/"Apparel Sourcing: Trends, Opportunities and Challenges" Webinar

Date: May 2, 2018

Time: 2:00 p.m. – 3:00 p.m. ET

Cost: There is no cost to view this webinar.

ISTR Initiation of Country Practice Reviews of India, Indonesia, and Kazakhstan

The Office of the United States Trade Representative (USTR) has announcing the initiation of country practice reviews regarding compliance with the Generalized System of Preferences (GSP) eligibility criteria of India, Indonesia, and Kazakhstan. This notice includes the schedule for submission of public comments and a public hearing.

DATES:

June 19, 2018: The GSP Subcommittee of the Trade Policy Staff Committee (TPSC) will convene a public hearing on the GSP country practice reviews of India, Indonesia, and Kazakhstan in Rooms 1 and 2, 1724 F Street NW, Washington DC 20508, beginning at 10:00 am.

June 5, 2018 at midnight EDT: Deadline for submission of comments, pre-hearing briefs, and requests to appear at the June 19, 2018, public hearing.

July 17, 2018 at midnight EDT: Deadline for submission of post-hearing briefs.

The GSP program provides for the duty-free treatment of designated articles when imported from beneficiary developing countries. The GSP program is authorized by Title V of the Trade Act of 1974 (19 U.S.C. 2461 - 2467), as amended, and is implemented in accordance with Executive Order 11888 of November 24, 1975, as modified by subsequent Executive Orders and Presidential Proclamations. USTR will lead a review of the eligibility of India, Indonesia, and Kazakhstan for benefits under the GSP program. These country practice reviews are undertaken on the recommendation of the TPSC pursuant to 15 CFR 2007.0(f) to determine whether the current laws and practices of India, Indonesia, and Kazakhstan meet the GSP eligibility criteria. These reviews are the result of country eligibility petitions submitted by interested stakeholders and an assessment of the 25 Asian and Pacific Island GSP beneficiary countries conducted by the GSP Subcommittee.

1. India Country Eligibility Review

The country practice review of India will focus on whether it is meeting the GSP eligibility criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market (19 U.S.C. 2462(c)(4)). USTR is accepting two petitions asserting that India is not meeting this criterion: one from the National Milk Producers Federation and the U.S. Dairy Export Council, and the other from the Advanced Medical Technology Association. In addition, through the new GSP Country Assessment process, the GSP Subcommittee identified potential concerns with India’s compliance with the GSP criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market (19 U.S.C. 2462(c)(4)). As described in the India Chapter of the 2018 National Trade Estimate Report on Foreign Trade Barriers, India has implemented a wide array of trade barriers that create serious negative effects on U.S. commerce. Due to the similar nature of the issues raised in these petitions with concerns identified in the assessment process, the petitions and the self-initiated review will be combined into one overall review of India’s GSP eligibility based on the GSP market access criterion.

2. Indonesia Country Eligibility Review

The country practice review of Indonesia will focus on whether it is meeting two GSP criteria: (1) the GSP criterion that requires a GSP beneficiary country to assure the United States that it will provide equitable and reasonable access to its market (19 U.S.C. 2462(c)(4)), and (2) the GSP criterion that requires a GSP beneficiary country to reduce trade-distorting investment practices and reduce or eliminate barriers to trade in services (19 U.S.C. 2462(c)(6)). As described in the Indonesia Chapter of the 2018 National Trade Estimate Report on Foreign Trade Barriers, Indonesia has implemented a wide array of trade barriers that create serious negative effects on U.S. commerce. The existing review of Indonesia’s compliance with the GSP criterion related to intellectual property rights (19 U.S.C. 2462(c)(5)) is separate, and will continue.

3. Kazakhstan Country Eligibility Review

The country practice review of Kazakhstan will focus on whether it is meeting the GSP criterion requiring a GSP beneficiary country to take steps to afford internationally recognized worker rights to workers in the country (19 U.S.C. 2462(b)(2)(G)). USTR is accepting a petition filed by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). The petition alleges that the Government of Kazakhstan actively restricts the right to form trade unions and employer associations without prior permission, prevents workers and employers from joining organizations of their own choosing, interferes in the structure and activities of worker and employer organizations, and targets labor leaders with arrests and prosecutions for exercising their rights.

Why a Cashmere Sweater Can Cost $2,000 … or $30

Agathon Associates assisted in retrieving and interpreting international trade data for this BLOOMBERG ARTICLE ON CASHMERE.

FTZ Filed for Fluoropolymer Films and Coated Substrates - Glass Fiber Fabrics Excluded

On April 10, 2018, Textiles Coated International Inc. submitted a notification of proposed production activity to the Foreign-Trade Zone Board for its facilities in Manchester and Londonderry, New Hampshire. The facilities are used for the production of polytetrafluoroethylene (PTFE) products.

Production under FTZ procedures could exempt TCI from customs duty payments on the foreign-status materials/components used in export production (an estimated 40 percent of production). On its domestic sales, for the foreign-status materials/components noted below, TCI would be able to choose the duty rates during customs entry procedures that apply to: fluoropolymer film sheeting .152mm in thickness in rolls and not in rolls; PTFE fiberglass colored and not colored; PTFE gaskets; joint sealants; sheet gasketing material with and without adhesives; silicone fiberglass fabrics with and without color; flexible PTFE ducting with coils reinforced and unreinforced; and, PTFE coated fiberglass sheets (duty rate ranges from 3.1% to 7.3%). TCI would be able to avoid duty on foreign-status components which become scrap/waste. Customs duties also could possibly be deferred or reduced on foreignstatus production equipment.

The materials and components sourced from abroad include: PTFE dispersions; PTFE fine powders; fluoropolymer film sheeting 0.152mm in thickness in rolls and not in rolls; woven glass fiber mats; woven glass fiber fabrics colored and not colored; fluorinated ethylene propylene (FEP) pellets; ethylene tetrafluoroethylene (ETFE) pellets; and, perfluoroalkoxy (PFA) pellets (duty rate ranges from 4.2% to 7.3%).

The request indicates that woven glass fiber mats and woven glass fiber fabrics colored and not colored will be admitted to the zone in privileged foreign status (19 CFR 146.41), thereby precluding inverted tariff benefits on such items.

The request also indicates that, PTFE dispersions and PTFE fine powders are subject to an antidumping/countervailing duty (AD/CVD) investigation if imported from certain countries. The FTZ Board’s regulations (15 CFR 400.14(e)) require that merchandise subject to AD/CVD orders, or items which would be otherwise subject to suspension of liquidation under AD/CVD procedures if they entered U.S. customs territory, be admitted to the zone in privileged foreign status (19 CFR 146.41).

Darlington Fabrics continues to make sustainability a priority, receives Unifi REPREVE Champions of Sustainability Award

Darlington Fabrics is a recipient of Unifi’s Inaugural REPREVE Champions of Sustainability Award for recycling over 100 million or more bottles through the use of the REPREVE fiber.

REPREVE Champions of Sustainability is awarded to 25 brand and retail partners that have each used the equivalent of 10 million or more bottles, and 15 textile partners that have each used the equivalent of 50 million or more bottles.

"Unifi created the REPREVE Champions of Sustainability awards to recognize our brand and textile partners that have achieved plastic bottle recycling milestones as a result of their use of REPREVE performance fibers," said Kevin Hall, Unifi Chairman & CEO.

Darlington Fabrics continues to make sustainability in textiles a high priority through thoughtful purchasing and best use policies keeping the environment in the forefront in their processes.

May of 2016 Darlington achieved Zero Landfill status through partnership with Waste Management. Darlington continues to look for ways to reduce their carbon footprint.

Through the use of the Repreve fiber Darlington has reached beyond their back yard and kept more than 100 million bottles out of landfills.

“At Darlington Fabrics, we are committed to providing innovative warp knit products to the market coupled with the highest environmental standards possible." Steve Perry, Senior Vice President – Darlington Fabrics

Darlington Fabrics, http://www.darlingtonfabrics.com, a warp knit manufacturer, is a division of The Moore Company, founded in 1909 and still focused on innovation.

The Moore Company manufactures products in the United States. International manufacturing facilities complement domestic capabilities, while serving regional markets around the globe. For more information contact: Steven Perry 401-315-6346 or sperry@dfabrics.com.

Army Boot Contract Awarded

Belleville Shoe Manufacturing Co., Belleville, Illinois, has been awarded a $10,787,065 firm-fixed-price contract for procurement of cold weather combat boots. Bids were solicited via the Internet with two received. Work will be performed in Belleville, Illinois, with an estimated completion date of Dec. 31, 2018. Fiscal 2018 operations and maintenance funds in the amount of $10,787,065 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-18-F-0300).

Primark Recalls Decorative Cushions Due to Fire Hazard

This recall involves 21 different Primark decorative cushions. The cushions were sold in various colors and shapes, including square, rectangular, heart-shaped, unicorn-shaped, and pumpkin-shaped. The product code is printed on the label attached to the cushion. The product codes listed below are included in the recall

Product Code	Color	Style Description
0608803	Pink	TWO TONE SEQUIN
0608804	Mint	TWO TONE SEQUIN
0608805	Black	TWO TONE SEQUIN
0608806	Light Pink	TWO TONE SEQUIN
0608808	White	TWO TONE SEQUIN
0822101	Cream	TWIN PACK PLAIN CUSHION
0822102	Gray	TWIN PACK PLAIN CUSHION
4467001	Cream	PV FUR SQUARE
4467002	Gray	PV FUR SQUARE
4727601	Gray	HY OVERSIZED FAUX HEART
5512101	Cream	ROSEFUR HEART
5512102	Pink	ROSEFUR HEART
5512103	Gray	ROSEFUR HEART
8191201	Pink	GLITTER HEART CUSHION
8191202	Black	GLITTER HEART CUSHION
9752806	Light Pink	PV FUR HEART CUSHION
3685901	Aqua	UNICORN SHAPED CUSHION
4467701	Pink	CG STAR PRINT CUSHION
5912001	Orange	PUMPKIN SHAPED CUSHION
4467201	White	CG SWAN SHAPED CUSHION
8167401	Black	HOME OBLONG CUSHION

Remedy: Consumers should immediately stop using the cushions and return the cushions to a Primark store for a full refund.

Incidents/Injuries: None Reported

Sold Exclusively At: Primark’s eight stores located in the northeastern U.S. from May 2017 through February 2018 for between $5 and $9.

Importer(s): Primark US Corp., of Boston, Mass.

Distributor(s): Primark US Corp., of Boston, Mass.

Manufactured In: China

Recall number: 18-142

ITC Launches Investigation Related to the President's Request to Extend Trade Promotion Authority

On april 13, 2017 the U.S. International Trade Commission (USITC) announced that it has instituted an investigation related to the President’s request to Congress for an extension of his trade authorities procedures.

The President submitted a request to Congress on March 20, 2018, for an extension of trade authorities procedures, commonly known as trade promotion authority. At the same time, the USTR notified the USITC of the President’s request. The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (Bipartisan Trade Act) requires the USITC, having been notified of the President’s request, to provide a report to Congress that contains a review and analysis of the economic impact on the United States of all trade agreements implemented between the date of the enactment of the Bipartisan Trade Act and the date of the President’s notification to Congress. 

The USITC is unaware of any trade agreements that were implemented under the Bipartisan Trade Act between the date of its enactment and March 20, 2018. While at least one trade agreement was negotiated during this period, the Trans-Pacific Partnership Agreement, it was not implemented during this period.

The USITC, an independent, nonpartisan, factfinding federal agency, will provide the required report to the USTR by June 1, 2018. 

The USITC will not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC, 20436, and should be submitted at the earliest practical date but no later than 5:15 p.m. on May 2, 2018.

Blog Post - Guilty Until Proven Innocent - by Janet Labuda

The following is reprinted with permission of Janet Labuda, trade consultant and former U.S Customs officer. She can be contacted at janetlabuda@hotmail.com.

The legal premise of innocent until proven guilty gets turned on its head with the passage of the “Countering America’s Adversaries Through Sanctions Act” known as CAATSA. At a government meeting last week representatives from the Departments of Homeland Security, State, Labor, and Treasury participated in a panel discussion of addressing North Korean forced labor in the supply chain.

A kickoff of the two hour meeting by Assistant Secretary (Homeland Security) Michael Dougherty and Deputy Assistant Secretary (State) Scott Busby set the stage for highlighting the seriousness of this enforcement focus that is starting to descend on the import community. The government officials were joined by Greg Scarlatolu, Executive Director, Committee for Human Rights in North Korea, and Bob Mitchell, Vice President, Responsible Business Alliance.

The panel focused specifically on CAATSA Section 321(B) which provides for sanctions on goods produced by North Korean forced labor. It was stressed that these sanctions are part of the Administration’s larger strategy regarding the denuclearization of North Korea.

The State Department indicated in the last call for information on forced North Korean labor from U.S. embassies around the world, 39 countries reported the use of such labor. In the latest call for information, the number of countries reporting the use of forced Korean labor has risen to 59. China exceeds the number of laborers followed by Russia, and various Southeast Asian nations along with those in Latin America. While North Korean forced labor has been used in the countries of the Middle East and Africa it appears that here it is part of a construction labor force.

Key industries where North Korean forced labor is used include textiles and footwear, mining, seafood, logging, and pharmaceuticals.

The panel stressed the need for comprehensive due diligence by and on behalf of U.S. companies involved in importing goods. Careful consideration of, and reasonable care with respect to, the different risks presented in your supply chain should always be taken into account when importing into the United States. Failure to do so will result in seizures, penalties, and possible criminal prosecution.

The presumed prohibition of merchandise mined, produced, or manufactured with North Korean nationals or citizens may be overcome by “clear and convincing evidence.” Clear and convincing evidence is a higher standard of proof than a preponderance of the evidence. Determining that the importer has met this standard will be under the authority of U.S Customs and Border Protection. Importers will have to show clear evidence that the goods were not produced with convict labor, forced labor, or indentured labor.

You are encouraged to read the newly published FAQ document which can be found posted on the Department of Homeland Security’s website. One area to note is section 8 of the document entitled: “What steps should my company take to ensure North Korean workers are not in our supply chain?” While many questions were raised regarding the due diligence aspect, the government was adamant that when it comes to due diligence there is no such thing as one size fits all. In addition, they stressed that use of prior disclosure may mitigate the penalty, but does not exonerate one from having committed a violation.

I highly recommend intense training on this issue and that someone in the corporate legal department and someone in the import compliance department join forces to ensure that strong corporate measures are in place to address this hot burner issue. Please contact Vandegrift if you have received a CF28 on this issue or been contacted by directly by CBP regarding North Korea forced labor.

Army Trouser Contract Awarded

San Antonio Lighthouse for the Blind, San Antonio, Texas, has been awarded a maximum $8,452,012 modification (P00002) exercising the first one-year option of a one-year base contract (SPE1C1-17-D-B017) with two one-year option periods for trousers. This is a firm-fixed-price contract. Location of performance is Texas, with an April 16, 2019, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Portland, Oregon, Man Sentenced for Selling Counterfeit Nike Sneakers Online

James Pepion, of Portland, was sentenced in federal court April 4th to four months in prison followed by three years supervised release for selling counterfeit Nike sneakers online and laundering his proceeds.

This case is the result of a probe by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) and IRS Criminal Investigation (IRS CI).

According to court documents, Pepion offered rare Nike sneakers for sale on the website Get-Supplied.com and through related businesses, including Supplied, Inc., and SwagSupply, Inc. using online platforms such as Instagram, eBay, and Shopify.

Although Pepion acquired many of the limited-edition sneakers he resold through legitimate channels, he also imported counterfeit versions of some sneakers directly from black market sources in China, selling them as authentic Nike footwear to unwitting buyers. These fraudulent sales triggered numerous complaints to Nike as well as to the defendant.

Between June 2013 and September 2015, Pepion wired $174,460.00 to sellers in China, almost all of which was for counterfeit shoes and packaging. Pepion combined the proceeds of the sales of these counterfeit Nike sneakers with the proceeds of sales of authentic sneakers in various financial accounts in order to conceal the illegal source of much of his income.

Pepion previously pleaded guilty to one count each of trafficking in counterfeit goods and money laundering on Friday, June 30, 2017.

The case was prosecuted by Ryan W. Bounds and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon. A restitution hearing has been scheduled for July 9, 2018.

USTR Announces New GSP Eligibility Reviews of India, Indonesia, and Kazakhstan

On April 12, 2018, the Office of the United States Trade Representative announced that it is reviewing the eligibility of India, Indonesia, and Kazakhstan in the Generalized System of Preferences (GSP) based on concerns about the countries’ compliance with the program. The reviews are based on the Trump Administration’s new GSP country eligibility assessment process as well as GSP country eligibility petitions.

“GSP provides an important tool to help enforce the Trump Administration’s key principles of free and fair trade across the globe. The President is committed to ensuring that those countries who receive GSP benefits uphold their end of the bargain by continuing to meet the eligibility criteria outlined by Congress,” said Deputy U.S. Trade Representative Jeffrey Gerrish. “We hope that India, Indonesia, and Kazakhstan will work with us to address the concerns that led to these new reviews.”

For India, the GSP country eligibility review is based on concerns related to its compliance with the GSP market access criterion. For Indonesia, the review is based on concerns related to its compliance with the GSP market access criterion and the GSP services and investment criterion. Kazakhstan’s eligibility review is based on concerns related to its compliance with the GSP worker rights criterion.

A public hearing and comment period for the new GSP reviews of India, Indonesia, and Kazakhstan will be announced in an upcoming Federal Register notice.

Background

In October 2017, USTR announced a new triennial process to assess GSP beneficiary country eligibility. The first assessment period covered 25 Asian and Pacific island GSP beneficiary countries. For each such country, USTR and other U.S. Government agencies examined the country’s policies and practices related to each of the 15 eligibility criteria established by Congress, including respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, reducing barriers to services trade and investment, and providing the United States with equitable and reasonable market access.

USTR also received petitions from stakeholders requesting new eligibility reviews. Based on the information analyzed in its assessment process and on the petitions submitted by stakeholders, USTR has determined that the three new country eligibility reviews are warranted. The lack of a self-initiated review with respect to a GSP country should not be interpreted as an affirmation that the country is meeting all of the GSP criteria.

India: USTR is launching a self-initiated GSP eligibility review of India based on concerns related to its compliance with the GSP market access criterion and is also accepting two petitions related to the same criterion. The petitions filed by the U.S. dairy industry and the U.S. medical device industry requested a review of India’s GSP benefits, given Indian trade barriers affecting U.S. exports in those sectors. India has implemented a wide array of trade barriers that create serious negative effects on U.S. commerce. The acceptance of these petitions and the GSP self-initiated review will result in one overall review of India’s compliance with the GSP market access criterion.

Indonesia: USTR is launching a self-initiated GSP eligibility review of Indonesia based on concerns related to its compliance with the GSP market access criterion and related to its compliance with the GSP services and investment criterion. Indonesia has implemented a wide array of trade and investment barriers that create serious negative effects on U.S. commerce.

Kazakhstan: USTR is accepting a petition from the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) which alleges that Kazakhstan has not taken steps to afford internationally recognized worker rights, including the right to freedom of association and the right to bargain collectively. The petition further alleges that Kazakhstan actively restricts the right to form trade unions and employer associations. Serious concerns about restrictive legislation and the harassment of independent labor leaders have been raised repeatedly at the International Labor Organization (ILO).

The next GSP assessment process will start in the fall of 2018 and will cover beneficiary countries in Eastern Europe, the Middle East and North Africa, and the Western Hemisphere.

The GSP is the largest and oldest U.S. trade preference program and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. Congress voted last month to renew the GSP through 2020.

For more information on the GSP program, visit the GSP page on the USTR website here.

Monday, April 16, 2018, is Patriots' Day in Massachusetts

Monday, April 16, 2018, is Patriots' (plural possessive) Day in Massachusetts and Patriot's (singular possessive) Day in Maine. State and local government offices in Massachusetts and Maine will be closed, as will some businesses.

"Listen, my children and you shall hear
of the midnight ride of Paul Revere,
On the eighteenth of April, in Seventy-five."

New England’s original "On the Road" man looms large in these parts --life-sized, in fact, in bronze, in Boston's North End. There, as well, you'll find his house preserved, just as his ride is preserved in the Longfellow poem.

"You know the rest. In the books you have read,
How the British Regulars fired and fled--"

And that morning of April 19 officially marks the beginning of the American War of Independence. In Massachusetts and Maine (part of Massachusetts until 1820, when, under the "Missouri Compromise" Maine, a free State was admitted to the Union, paired with Missouri, a slave State) we celebrate it as Patriots'/Patriot's Day, and, like Revere, take to the road – a renowned twenty-six miles of road from Hopkinton to Boston. The finish line is just over a mile, about a 25-minute walk, from the office of Agathon Associates.

At the original Marathon, 26 miles from Athens, Greece, free, Democratic, Western civilization faced and defeated the forces of absolutism. It is a battle that has been fought many times. It will be fought many more times. Freedom must always be prepared to fight just to be free.

On September 11, 2001, after the unprovoked terrorists' attacks on thousands of innocent, unsuspecting civilians, President George W. Bush spoke of why we were attacked, and why we shall prevail: "America was targeted for attack because we're the brightest beacon for freedom and opportunity in the world. And no one will keep that light from shining."

Our patriot forefathers (and every America is a Son of Liberty, regardless of when your people came here) knew that freedom is worth fighting for. This Patriots' Day let's reflect on the cause of freedom, and thank the brave American men and women who, in every war from the Revolution to our current engagements in the Near and Middle East, have made it possible for us to enjoy this April 16th as a free people.

$9.6 Million Air Force Blue Poly/Wool Cloth Contract Awarded

Burlington Industries LLC, Greensboro, North Carolina, has been awarded a maximum $9,644,250 fixed-price with economic-price-adjustment contract for blue poly/wool cloth. This is a one-year base contract with four one-year option periods. This was a competitive acquisition with one response received. Location of performance is North Carolina, with an April 10, 2019 performance completion date. Using military service is 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-1045).

MTD Consumer Group Inc. Tries Again for Grass-Catcher Bag FTZ

On April 10, 2010, the Foreign Trade Zone Board published in the Federal Register (83 FR 15360) Foreign-Trade Zone 158--Vicksburg, Mississippi; Application for Production Authority; MTD Consumer Group Inc., (Textile Grass-Catcher Bags), Verona, Mississippi.

In 2016, MTD requested FTZ production authority in a notification proceeding (15 CFR 400.22 and 400.37). The request was opposed by Highland Industries. After an initial review, the requested production authority was approved subject to a restriction requiring that textile grasscatcher bags be admitted in domestic/duty-paid status (Doc. B–65–2016, 82 FR 6489, January 19, 2017). This pending application seeks authority to use foreign-status textile grass-catcher bags in the production of walk-behind mowers. As requested, production under FTZ procedures could exempt MTD from customs duty payments on the textile grass-catcher bags used in export production. The company estimates that less than ten percent of MTD’s walk-behind lawn mowers are exported. On its domestic sales, MTD would be able to choose the duty rate during customs entry procedures that applies to walk-behind lawn mowers (duty-free) for the textile grass-catcher bags (duty rate 3.8%). MTD would be able to avoid duty on textile grasscatcher bags which become scrap/waste. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

U.S. Releases List of Commodities from China Potentially Subject to 25% Additional Import Tariff

On April 6, 2018, the Office of the United States Trade Representative published in the Federal Register (83 FR 14906) Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

Connecticut May Join California in Addressing Microfibers in Water

The State of Connecticut is following the example of California in eyeing a legislative response microfiber plastic from apparel in the state's waterways. Read more HERE

Air Force and Army Contract Awarded to Brooklyn Company

Carter Enterprises LLC, doing business as Mil-Spec Enterprises, Brooklyn, New York, has been awarded a maximum $15,854,179 firm-fixed-price, indefinite-quantity contract for improved outer tactical vest generation III conversion kits, yoke and collar assemblies, groin protector ballistic inserts and universal external side plate pouches. This is a one-year base contract with one one-year option period. This was a competitive acquisition with three offers received. Location of performance is New York, with an April 5, 2019, performance completion date. Using military services are Air Force and Army. 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-1040).

Army Parka Contract Awarded

Winston-Salem Industries for the Blind, Inc, Winston-Salem, North Carolina, has been awarded a maximum $10,620,588 modification (P00011) exercising the first one-year option of a one-year base contract with two one-year option periods for parkas. This is a firm-fixed-price contract. Location of performance is North Carolina, with an April 11, 2019, performance completion date. Using military service is Army. Type of appropriation is fiscal 2018 through 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-17-D-B016).

Israel FTA Certificate of Origin Requirements

On May 10, 2017, the Governments of Israel and the United States amended the U.S.-Israel Free Trade Agreement (ILFTA) to eliminate the certificate of origin (CO) requirement on exports to Israel in favor of an invoice declaration. This simplification was effective January 10, 2018 and is tied to a June 30, 2018 phase-out date.

USTR Announces WTO Dispute Settlement Proceeding Regarding India—Export Related Measures

On April 5, 2018, the Office of the United States Trade Representative published in the Federal Register (83 FR 14711) WTO Dispute Settlement Proceeding Regarding India--Export Related Measures.

I. Background

USTR is providing notice that consultations have been requested pursuant to the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). If these consultations do not resolve the matter, the United States could request that the WTO establish a dispute settlement panel pursuant to the DSU, which would hold its meetings in Geneva Switzerland, and issue a report on its findings.

II. Major Issues Raised by the United States

On March 14, 2018, the United States requested consultations concerning certain Indian export subsidies provided through: (1) The Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme, (2) the Merchandise Exports from India Scheme, (3) the Export Promotion Capital Goods Scheme, (4) Special Economic Zones, and (5) a duty-free imports for exporters program.

The United States alleges that India is providing prohibited export subsidies contrary to Articles 3.1(a) and 3.2 of the Agreement on Subsidies and Countervailing Measures.

CPSC Staff Attending the IPC E-Textiles Brainstorming Session

On April 23, 2018, Jacqueline Campbell, Consumer Product Safety Commission Directorate for Engineering Sciences, will be attending the IPC E-Textiles Brainstorming Session at the IPC Washington D.C. Office, 1331 Pennsylvania Ave, NW, Washington, DC from 3:00 p.m. to 5:00 p.m.

CPSC Hosting a Joint Technical Meeting on Upholstered Furniture Topics

The U.S. Consumer Product Safety Commission (CPSC) staff is hosting a 1-day joint technical meeting on Upholstered Furniture Flammability topics. The purpose of the meeting is to bring stakeholders together for an open discussion of current topics related to residential upholstered furniture flammability, including upholstered furniture flammability hazard data, state of the art technology to address flammability hazards, existing and in progress standards, stakeholder concerns and options for future considerations to improve consumer safety. The meeting may include presentations and panelist sessions.

The meeting will be held on May 16, 2018, at the CPSC National Product Testing and Evaluation Center (NPTEC), 5 Research Place, Rockville, MD 20850 from 9:00 a.m. to 4:00 p.m. Individuals interested in serving on panels or presenting information at the meeting should e-mail Chris Halstead at CHalstead@cpsc.gov by April 20, 2018 with 1.) short summary or abstract of topics to be presented and 2). estimate of time needed to present. Every effort will be made to accommodate all interested speakers. CPSC staff will determine the final agenda and will notify those who are selected as presenters by April 27, 2018.

All individuals who wish to attend should register by e-mail to Chris Halstead at CHalstead@cpsc.gov as soon as possible because available spots may fill up.

On April 4, 2018, the Office of the U.S. Trade Representative published in the Federal Register (83 FR 14540) Generalized System of Preferences (GSP): Notice of Revisions to the 2017/2018 Annual GSP Product and Country Practices Review; Deadline for Filing Petitions; GSP Renewal and Technical Modifications.

SUMMARY: The Office of the United States Trade Representative (USTR) will consider petitions to modify the GSP status of GSP beneficiary countries because of country practices; add products to GSP eligibility; remove products from GSP eligibility for one or more countries; waive competitive need limitations (CNLs); deny de minimis waivers for products eligible for de minimis waivers; and redesignate currently excluded products. This review will include separate hearings on product petitions and country eligibility reviews, which will be announced in the Federal Register at a later date.

DATES: To be considered in the 2017/2018 Annual GSP Review, USTR must receive your petition by Monday, April 16, 2018 at midnight EST. This is the deadline for petitions to modify the GSP status of GSP beneficiary developing countries because of country practices; petitions requesting waivers of CNLs; petitions on GSP product eligibility additions and removals; petitions to deny de minimis waivers; or petitions to redesignate an excluded product.

USTR will not consider petitions submitted after the April 16, 2018 deadline. USTR will announce decisions on which petitions are accepted for review, along with a schedule for any related public hearings and the opportunity for the public to provide comments, at a later date.

CPSC Staff to Attend Smart Fabrics Summit

Jacqueline Campbell, Consumer Product Safety Commission Directorate for Engineering Sciences, and other staff from the CPSC Office of Hazard Identification and Reduction will be attending the Smart Fabrics Summit, hosted by the U.S. Department of Commerce at the Ronald Reagan Building and International Trade Center, Washington, DC, April 24, 2018.

Spring Splash 2018

Join students and faculty from the Department of Textiles, Fashion Merchandising and Design for Spring Splash 2018, an exciting evening debuting one-of-a-kind apparel designed by our talented TMD students. Take in the show while enjoying complimentary hors d'oeuvres in an elegant setting.

For more information, to sign up to attend this fabulous event, or for sponsorship opportunities, CLICK HERE.

President Trump Determines Trade Preference Program Eligibility For Rwanda, Tanzania, And Uganda

On March 29, 2018, the President determined the eligibility of Rwanda, Tanzania, and Uganda for trade preference benefits under the African Growth and Opportunity Act (AGOA).

In response to a petition filed by the U.S. used clothing industry in March 2017, the Administration initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility regarding their decisions to phase in a ban on imports of used clothing and footwear. The review found that this import ban harms the U.S. used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to U.S. trade and investment.

Based on the results of the review, the President determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. Consequently, the President notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days.

The President believes suspension of these benefits, instead of termination of Rwanda’s status as an AGOA beneficiary, would allow for continued engagement with the aim of restoring market access and thereby bringing Rwanda into compliance with the AGOA eligibility requirements.

The President is not suspending benefits for Tanzania and Uganda because each has taken steps toward eliminating prohibitive tariff rates on imports of used clothing and footwear and committed not to phase in a ban of these products. The United States will continue to monitor whether Tanzania and Uganda implement these commitments and demonstrate compliance with all of AGOA’s eligibility requirements.

“The President’s determinations underscore his commitment to enforcing our trade laws and ensuring fairness in our trade relationships,” said Deputy U.S. Trade Representative C.J. Mahoney. “I commend Tanzania and Uganda for taking corrective steps to address the United States’ concerns. We have and will continue to work with Rwanda to resolve this situation.”

Background

On March 21, 2017, the Secondary Materials and Recycled Textiles Association (SMART), asserted that the East African Community (EAC)’s 2016 decision to phase in a ban on imports of used clothing and footwear imposes significant economic hardship on the U.S. used clothing industry, and is inconsistent with AGOA beneficiary criteria for countries to establish a market-based economy and eliminate barriers to U.S. trade and investment. Its petition requested an out-of-cycle review to determine whether Kenya, Rwanda, Tanzania, and Uganda, members of the EAC, are meeting AGOA eligibility criteria. In its petition, SMART estimates that 40,000 U.S. jobs related to the collection, processing, and distribution of used clothing and footwear will be negatively affected once the ban is implemented. SMART also asserts that the ban will negatively affect tens of thousands of jobs in the secondhand clothing sector in EAC countries.

The U.S. Trade Representative (USTR) accepted the petition filed by SMART and initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility on June 20, 2017. A public hearing was held on July 13, 2017 in Washington at which officials from the governments of Rwanda, Tanzania, Uganda and from the EAC Secretariat testified. The USTR determined that an out-of-cycle review of Kenya’s AGOA eligibility was not warranted due to the government’s commitment to reverse the tariff back to pre-2016 levels, effective July 1, 2017, and a commitment not to ban imports of used clothing through other policy measures. Tanzania and Uganda also made similar commitments during the course of the out-of-cycle review.

In order to qualify for AGOA trade benefits, partner countries must meet certain statutory eligibility requirements, including making continual progress toward establishing market-based economies, the rule of law, political pluralism, and elimination of barriers to U.S. trade and investment, among others.