Burlington Awarded Marine Corps Poly/Wool Fabric Contract

Burlington Apparel Fabrics, Greensboro, North Carolina, has been awarded a maximum $39,689,600 firm-fixed-price, indefinite-delivery contract for green poly/wool cloth. This is a one-year contract with four one-year option periods. The maximum dollar amount is for the life of the contract. This was a competitive acquisition with one response received. Location of performance is North Carolina, with a May 29, 2023, performance completion date. Using military service is Marine Corps. 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-1054). (Awarded May 30, 2018)

Army Combat Shirt Contract Awarded

National Industries for the Blind, Alexandria, Virginia, was awarded a $9,415,720 firm-fixed-price contract for manufacturing the Army combat shirt. One bid was solicited with one bid received. Work will be performed in Brooklyn, New York; Winston Salem, North Carolina; and San Antonio, Texas, with an estimated completion date of June 28, 2019. Fiscal 2018 operations and maintenance (Army) funds in the amount of $9,415,720 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W911QY-18-C-0128).

U.S. Trade and Investment with Sub-Saharan Africa in Certain Sectors Has Grown and Continues to Have Potential, Says USITC

On May 30, 2018, the U.S. International Trade Commission ("USITC") released U.S. Trade and Investment with Sub-Saharan Africa: Recent Developments (Publication 4780 Inv. No. 332-564).

Rising per capita incomes, growing urbanization, the need for improved infrastructure, and expanding healthcare contributed to growth in U.S. exports in some sectors to sub-Saharan Africa (SSA) between 2010 and 2016, reports the United States International Trade Commission (USITC) in its publication U.S. Trade and Investment with Sub-Saharan Africa: Recent Developments.

The USITC, an independent, nonpartisan, factfinding federal agency, conducted the investigation at the request of the U.S. Trade Representative (USTR).  In requesting the study, the USTR noted that: “As the Administration works to encourage fair and reciprocal trade with our African trading partners, it is important to have factual information on where we are succeeding in African markets, where we have the greatest prospects for increased trade and investment, and the factors that could impede that progress.”  The USTR also asked for similar information on SSA's trade performance and on future prospects for its exports to the United States, including those under the African Growth and Opportunity Act (AGOA).

As requested by the USTR, the USITC report:

• provides an overview of U.S. exports to and imports from SSA of goods and services, as well as U.S. foreign direct investment (FDI) in SSA countries over the 2010-2016 period;
• discusses exports of goods and services from U.S. small and medium-sized enterprises (SMEs) to SSA, as well as challenges faced by them exporting to the region;
• performs 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;
• profiles seven SSA economies; and
• summarizes recent developments in regional integration efforts in SSA, as well as strategies by AGOA countries to increase trade with the United States.

Highlights of the report include:

• Among the fastest growing U.S. exports of goods to SSA during 2010-16 were aircraft; floating oil platforms; natural gas and components; power generating equipment; and pharmaceuticals. Other sectors with the potential for increased  U.S. exports to SSA include motor vehicles, ethyl alcohol, poultry, and refined petroleum products. U.S. exports of financial services, insurance services, and information and communication technology services show potential for growth.
• The fastest growing U.S. imports of goods from SSA between 2010 and 2016 were cocoa, chocolate, and confectionery; apparel; refined copper; catalytic converters; and edible nuts. Growth in these sectors was due to the long-term renewal of AGOA to 2025, the increased presence of FDI in these sectors, SSA production cost advantages relative to other global suppliers, and expanding manufacturing capacity in SSA. Apparel, edible nuts, footwear, and raw cane sugar show potential for growth in U.S. imports from SSA under AGOA.
• In 2015, the latest year for which data are available, merchandise exports to SSA by U.S. SMEs were approximately $5.8 billion, a decrease from 2010. Over 40 percent of the 2015 exports were concentrated in South Africa and Nigeria. Some challenges faced by SMEs are high tariffs and poor protection of intellectual property rights.
• The stock of U.S. FDI in SSA declined from 2010 to 2016, with mining, including crude petroleum, being the largest destination sector. Sectors with the greatest potential for U.S. FDI in SSA are professional and business services, financial services, textiles and apparel, renewable energy, and mining. The three largest destinations for U.S. FDI in SSA in 2016 were Mauritius ($7.0 billion), South Africa ($5.1 billion), and Nigeria ($3.8 billion).
• To date, 15 out of 38 AGOA beneficiary countries have prepared specific strategies to identify sectors that have the potential to increase exports to the United States under AGOA. Many SSA countries are also a part of Regional Economic Communities working to lessen trade barriers that hamper AGOA utilization, with negotiations ongoing for a continental FTA.

New England AATCC Golf Outing & Banquet

The American Association of Textile Chemists and Colorists New England Section Golf Outing & Banquet will be Friday, June 22, 2018. For more information on attending or sponsoring, contact David Trumbull at david@agathonassociates.com.

ICE, CBP seize nearly 79,000 counterfeit items in South Texas valued at $16 million

LAREDO, Texas — Special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) on Thursday seized nearly 79,000 counterfeit items that included apparel and consumer electronics from luxury and sporting trademark designers such as Hermes, Louis Vuitton, Adidas, Nike, Apple, Samsung and Sony.

HSI estimates the value of the seized items at more than $16 million. This seizure represents HSI's second-largest counterfeit seizure in Laredo.

This seizure is being investigated by HSI with assistance from U.S. Customs and Border Protection (CBP), Mexican Customs and representatives from the trademark industry.

"Trafficking counterfeit goods poses a triple threat," said Tim Tubbs, deputy special agent in charge of HSI Laredo. "Counterfeit merchandise wreaks havoc on local economies, threatens the health and safety of the American public, and funds criminal organizations engaged in other illegal activities."

On May 17, HSI special agents conducted surveillance of a public storage facility in Laredo and observed several individuals transferring boxes from a leased storage unit to pickup trucks and vans with Mexican license plates. While agents observed the storage facility, a large air courier box truck arrived to unload suspected trademark infringed merchandise to waiting pickup trucks and vans. HSI then detained and seized 275 boxes containing 78,908 items of suspected trademark-infringed merchandise from this location. No one was arrested in connection to this seizure. This is an ongoing investigation.

According to HSI, the trademark-infringed merchandise seized was shipped in large boxes from China to an international cargo terminal located in Laredo, Texas. The boxes were manifested to fictitious Laredo recipients and addresses.

Historical information suggests that smugglers typically transport illicit goods into Mexico often fail to file required export documents through CBP's Automated Commercial Environment, and exploit the ports of entry by clandestinely smuggling merchandise to Mexico. Once in Mexico, smugglers pay bribes to Mexican cartels who often extort Mexican regulatory and law enforcement officials so that the merchandise passes without inspection and payment of duties.

The HSI-led National Intellectual Property Rights Coordination Center (IPR Center), made up of 23 different federal agencies and four international agencies, and oversees enforcement activities targeting the trafficking of counterfeit goods. Last fiscal year, HSI and its sister agency, U.S. Customs and Border Protection, made more than 32,000 seizures involving counterfeit goods with an estimated value of more than $1.2 billion MSRP. The International Anti-Counterfeiting Coalition estimates intellectual property crime annually costs U.S. businesses several hundred billion dollars in lost revenues.

Anyone with information about the sale of counterfeit items can submit a tip at the IPR Center website. Reports can also be made to the HSI tip line at 1-866-DHS-2-ICE.

Monday is Memorial Day in America

Agathon Associates will be closed Monday in observance of Memorial Day, a United States federal holiday which occurs every year on the last Monday of May. Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces. Readers of the Textiles and Trade Blog who do business in the United Kingdom should also note the the last Monday of May is the Spring Bank Holiday in the United Kingdom.

In much of the United States, Memorial Day marks the beginning of summer. The "three day weekend" created by the Monday holiday is enjoyed with cookouts, trips to the beach and other leisure activities as will as parades and public ceremonies honoring those who died in service of the nation.

POST-GAZETTE - Res Publica
The Story of Taps
by David Trumbull -- May 24, 2013

This Memorial Day we remember and honor the men and women who died to preserve our freedom. Even as we enjoy kicking off summer however we chose this weekend, that is itself a testimony to their sacrifices, for we enjoy the cookouts, trips to the beach, and so forth because they made it possible. We especially honor those who died for our country when we decorate their graves or participant in patriotic parades and ceremonies this weekend.

At those solemn memorial events in our towns and cities, in our churches and synagogues, and in the halls of our veterans or other lodges, a familiar, haunting melody will mark the day --

The familiar bugle call "Taps" is generally believed to be based on a traditional French call to curfew (from Middle English "curfeu," from Old French "cuevrefeu," meaning cover the fire and turn in for the night).

According to the United States Department of Veterans Affairs the version of those 24 melancholy notes that we know from military funerals was crafted during America's Civil War by Union General Daniel Adams Butterfield, heading a brigade camped at Harrison Landing, Va., near Richmond. This music was made the official Army bugle call after the war, but not given the name "taps" until 1874.

The Department of Veterans Affair also that: "The first time taps was played at a military funeral may also have been in Virginia soon after Butterfield composed it. Union Capt. John Tidball, head of an artillery battery, ordered it played for the burial of a cannoneer killed in action. Not wanting to reveal the battery’s position in the woods to the enemy nearby, Tidball substituted taps for the traditional three rifle volleys fired over the grave. Taps was played at the funeral of Confederate Gen. Stonewall Jackson 10 months after it was composed. Army infantry regulations by 1891 required taps to be played at military funeral ceremonies."

Taps now is played by the military at burial and memorial services, to accompany the lowering of the flag, and to signal the "lights out" command at day's end.

Wool textile makers find success with premium-branded apparel made in U.S.A.

Kentwool Inc. and American Woolen Company have found by using a vertically-integrated business model. By controlling the production process from yarn spinning to finished product, Kentwool and American Woolen are finding success with premium apparel brands focused on wool, a natural fiber known for its thermal comfort, breathability and ability to be worn across seasons... Read more in Textile World

Paul T. O’Day Memorial Scholarship Winner Announced

The National Council of Textile Organization’s (NCTO) Fiber Council has announced Mr. William Parker of Glen Allen, Virginia, as the recipient of the 2018 Paul T. O'Day Memorial Scholarship Award.

Mr. Parker will graduate with honors from Mills E. Godwin High School in suburban Richmond in June and will go to the Georgia Institute of Technology's (Georgia Tech) College of Engineering where he intends to major in computer engineering.

NCTO Fiber Council Chair, Don Bockoven, President & CEO of Leigh Fibers, commented, "We are pleased to recognize Mr. Parker's exceptional record of academic achievements with his selection as the 2018 recipient of the Paul T. O'Day Memorial Scholarship. All of us on the Fiber Council congratulate Mr. Parker and wish him continued success in his academic career."

The scholarship program was created in 2014 in honor of Paul T. O'Day who served as President of the American Fiber Manufacturers Association (AFMA) for more than three decades. AFMA merged with NCTO effective April 1, 2018, and NCTO's Fiber Council now administers the scholarship program. Recipients receive a $5,000 award each year, totaling $20,000 for four years of study. Sons or daughters of NCTO's Fiber Council member company employees are eligible to apply.

U.S. Textile Industry Calls for China 301 Tariffs on Textile and Apparel End Products

WASHINGTON, DC – National Council of Textile Organizations (NCTO) President & CEO Auggie Tantillo testified as a witness at the Office of the U.S. Trade Representative’s (USTR) public hearing on proposed China 301 tariffs in Washington, D.C. on May 17th.

"The U.S. textile industry strongly supports the Trump administration’s Section 301 case to sanction China's rampant intellectual property rights (IPR) theft," said NCTO President & CEO Auggie Tantillo.

"The U.S. textile industry urges the Trump administration to include textile and apparel end products in any Section 301 retaliatory tariff action against China," Tantillo added as he noted that China’s predatory, illegal trade actions, including IPR theft, have contributed to the loss of millions of U.S. manufacturing jobs, including hundreds of thousands in textiles.

"China’s domination of global textile markets has clearly been aided by its rampant theft of U.S. textile intellectual property. From the violation of patents on high performance fibers, yarns and fabrics to the infringement of copyrighted designs on textile home furnishings, China has gained pricing advantages through blatantly illegal activities. Putting 301 tariffs on Chinese textile and apparel exports would send a long overdue signal that these predatory actions will no longer be tolerated," Tantillo finished.

In addition to Tantillo's hearing testimony (see below), NCTO and the U.S. Industrial Fabrics Institute (USIFI) and Narrow Fabrics Institute (NFI) submitted a joint 24-page statement for the record as part of USTR's public comment process on the China 301 tariff issue that closed on May 11.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 550,500 in 2017.
• The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.
• U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.
• Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

USTR Robert Lighthizer Issues Statement on Status of NAFTA Renegotiation

U.S. Trade Representative Robert Lighthizer today issued the following statement on the status of negotiations to modernize and rebalance the North American Free Trade Agreement (NAFTA):

“For many weeks now, the United States, Mexico and Canada have engaged in intensive, continuous discussions to renegotiate NAFTA, building on the seven rounds of rigorous negotiations that have taken place since August 2017. The negotiations have covered a large number of very complex issues, especially those objectives outlined by Congress as part of the bipartisan Trade Promotion Authority such as intellectual property, dairy and agriculture, de minimis levels, energy, labor and more.

“The current NAFTA is a seriously flawed trade deal, and the Trump Administration is committed to getting the best possible trade agreement for all Americans. The United States is ready to continue working with Mexico and Canada to achieve needed breakthroughs on these objectives. Our teams will continue to be fully engaged.”

Navy Boot Contract Awarded

Belleville Shoe Co., Belleville, Illinois, has been awarded a maximum $11,299,943 modification (P00009) to a one-year contract (SPE1C1-15-D-1051) with three one-year option periods for nine-inch safety boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Illinois, with a May 13, 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.

Tuesday is Straw Hat Day

May 15th is Straw Hat Day the beginning of the season when men may wear their straw boaters and Panamas rather than the fur felt fedoras, porkpies, homburgs, and bowlers that we wear (You do wear a hat, don't you?) the rest of the year.

For more information, or to buy quality hats, including hats made in the U.S.A., visit these fine vendors:

• Bollman Hat Company,
• Resistol, and
• Stetson.

Just don't wear your straw hat after September 15th, or you may start a riot.

ASI Joins Coalition Defending Berry Amendment

The American Sheep Industry Association joined nearly two dozen groups in asking the U.S. House Armed Services Committee to oppose amendments to the 2019 National Defense Authorization Act that would weaken the Berry Amendment.

A letter sent this week to the committee's chair, Mac Thornberry (Texas), and ranking member, Adam Smith (Wash.), urged the committee to protect the Berry Amendment, which prohibits the U.S. Department of Defense from procuring certain products (including textiles, clothing and footwear) unless those products are made with American materials and labor.

The most recent threat to the Berry Amendment comes in the area of athletic footwear for the United States military. The issue was addressed just two years ago, but Congressman Brad Wenstrup (Ohio) has offered an amendment that would weaken the statutory requirement.

"The actions taken two years ago by your committee not only ensure that our recruits will receive the highest quality athletic footwear that is designed especially for the rigors of Initial Entry Training but also have spurred renewed interest and growth in domestic footwear manufacturing," read the letter. "As the Berry Amendment is designed to do, it is supporting the domestic manufacturing base.

"Second, we were also aware of another amendment that attempts to remove zippers, buttons, snaps and other non-textile components from important Berry Amendment protections. The Berry Amendment has been a staple of defense procurement for decades. During that time, Berry has covered clothing and shoes, and all components thereof, supporting tens of thousands of jobs in an integrated, domestic textile, apparel and footwear manufacturing industry.

"If such language were to become law, it would come at the expense of U.S. manufacturing jobs in U.S. factories that produce these components for the U.S. military, and would erode important protections that currently support this entire industrial base."

New Hampshire Firms Learn to Cope with New Steel Tariffs

David Trumbull of Agathon Associates (erroneously identified as being with another, New Hampshire, company) was recently quoted in the New Hampshire Business Review regarding new steel tariffs.

Army Jacket Contract Awarded

Arkansas Lighthouse for the Blind, Little Rock, Arkansas, has been awarded a maximum $10,196,004 modification (P00008) exercising the first one-year option period of a one-year base contract (SPE1C1-17-D-B019) with two one-year option periods for flame resistant, operational camouflage pattern, intermediate weather outer layer jackets. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Arkansas, with an Oct. 31, 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.

Spider Silk Key to New Bone-Fixing Composite

University of Connecticut researchers have created a biodegradable composite made of silk fibers that can be used to repair broken load-bearing bones without the complications sometimes presented by other materials. READ MORE.

Government Seeks Nominations to Industry Trade Advisory Committees

The United States Trade Representative (Trade Representative) and the Secretary of Commerce (Secretary) have established a new four-year charter term ending in February 2022, and are accepting applications from qualified individuals interested in serving as a member of an Industry Trade Advisory Committee (ITAC). The ITACs provide detailed policy and technical advice, information, and recommendations to the Secretary and the Trade Representative regarding trade barriers, negotiation of trade agreements, and implementation of existing trade agreements affecting industry sectors, and perform other advisory functions relevant to U.S. trade policy matters. There currently are opportunities for membership on each ITAC and we will accept nominations throughout the charter term.

I. Background

Section 135 of the Trade Act of 1974, as amended (19 U.S.C. 2155), establishes a private-sector trade advisory system to ensure that U.S. trade policy and trade negotiation objectives adequately reflect U.S. commercial and economic interests. Section 135(c)(2) (19 U.S.C. 2155(c)(2)) directs the President to establish sectoral or functional trade advisory committees, as appropriate, including representatives of industry, labor, agriculture, and services, including small business, in the sector or functional area concerned, to provide detailed policy and technical advice, information, and recommendations regarding trade barriers, negotiation of trade agreements, and implementation of existing trade agreements affecting industry sectors, and perform other advisory functions relevant to U.S. trade policy matters as requested.

II. What do the ITACs do?

The ITACs provide detailed policy and technical advice, information, and recommendations to the Secretary and the Trade Representative on trade policy matters including: (1) negotiating objectives and bargaining positions before entering into trade agreements; (2) the impact of the implementation of trade agreements on the relevant sector; (3) matters concerning the operation of any trade agreement once entered into; and (4) other matters arising in connection with the development, implementation, and administration of the trade policy of the United States. The nonpartisan, industry input provided by the ITACs is important in developing unified trade policy objectives and positions when the United States negotiates and implements trade agreements. The ITACs address market-access problems, trade barriers, tariffs, discriminatory foreign procurement practices, and information, marketing, and advocacy needs of their industry sector. Eleven ITACs (ITACS 1-11) provide advice and information on issues that affect specific sectors of U.S. industry. Three ITACs (ITACs 12-14) focus on crosscutting functional issues that affect all industry sectors and include specifically appointed members along with non-voting members from the industry specific ITACs to represent a broad range of industry perspectives. The ITACs may address other trade policy issues, e.g., government procurement and subsidies, in ad hoc working groups.

III. What is the ITAC slate for 2018-2022?

When the Trade Representative and the Secretary organize the ITACs, the Trade Act requires that they consult with interested private organizations and consider:

• Patterns of actual or potential competition between U.S. industry and agriculture and foreign enterprise in international trade.
• The character of the nontariff barriers and other distortions affecting such competition.
• The necessity for reasonable limits on the number and size of the ITACs.
• That the product lines covered by each ITAC are reasonably related.

The Office of the U.S. Trade Representative and the U.S. Department of Commerce requested comments on proposed changes to the slate of ITACs (83 FR 3253) and received 23 written submissions in response. A majority of the responses were a substantially similar letter in opposition to merging ITAC 7 and ITAC 9. A significantly smaller portion advocated against the elimination of the Committee of Chairs. We have carefully considered these submissions and other factors including the nature of the U.S. industry in various sectors, the level of interest in serving on an ITAC (using the number of members and applications for appointment during the 2014-2018 charter terms), the level of activity of each ITAC (using the number of meetings and recommendations submitted during the 2014-2018 charter terms), and constraints on the resources to support and engage with the ITACs. We also are renaming ITAC 10 to Services to more accurately reflect the functions of the committee. Based on all of this information, pursuant to section 135(c)(2) of the Trade Act, the Secretary and the Trade Representative have established new four-year charter terms for the following ITACs, that began on February 14, 2018 and will end on February 14, 2022.

• ITAC 1 Aerospace Equipment
• ITAC 2 Automotive Equipment and Capital Goods
• ITAC 3 Chemicals, Pharmaceuticals, Health/Science Products and Services
• ITAC 4 Consumer Goods
• ITAC 5 Forest Products, Building Materials, Construction and Nonferrous Metals
• ITAC 6 Energy and Energy Services
• ITAC 7 Steel
• ITAC 8 Digital Economy
• ITAC 9 Small and Minority Business
• ITAC 10 Services
• ITAC 11 Textiles and Clothing
• ITAC 12 Customs Matters and Trade Facilitation
• ITAC 13 Intellectual Property Rights
• ITAC 14 Standards and Technical Trade Barriers

IV. Membership

Each ITAC consists of members with experience relevant to the industry sector for ITACs 1 through 11 or the subject area for ITACs 12 through 14. All ITAC members serve in a representative capacity (there are no special government employees (SGEs)) and present the views and interests of a sponsoring U.S. entity or U.S. organization and the entity’s or organization’s subsector (if applicable). In selecting members, the Secretary and the Trade Representative consider the nominee’s ability to carry out the objectives of the ITAC, including knowledge and expertise of the industry and of trade matters relevant to the work of the ITAC, and ensuring that the ITAC is balanced in terms of points of view, demographics, geography, and entity or organization size. Appointments are made without regard to political affiliation.

The Secretary and the Trade Representative appoint all ITAC members for a term of four-years or until the ITAC charter expires, and members serve at the discretion of the Secretary and the Trade Representative. Individuals can be reappointed for any number of terms. Appointments are made at the time an ITAC is re-chartered and periodically throughout the four-year charter term. Appointments expire at the end of the charter term, in this case, on February 14, 2022.

ITAC members serve without compensation, including reimbursement of expenses. Members are responsible for all expenses they incur to attend meetings or otherwise participate in ITAC activities.

The ITACs meet as needed, depending on various factors such as the level of activity of trade negotiations and the needs of the Secretary and the Trade Representative. On average, each ITAC meet six times a year in Washington DC.

V. Request for Nominations

The Secretary and the Trade Representative are soliciting nominations for membership on the ITACs.

A. Eligibility Requirements

To apply for membership, an applicant must meet the following eligibility:

1. The applicant must be a U.S. citizen.
2. The applicant cannot be a full-time employee of a U.S. governmental entity.
3. The applicant cannot be registered with the U.S. Department of Justice under the Foreign Agents Registration Act.
4. The applicant must be able to obtain and maintain a security clearance.
5. The applicant must represent either:
   • a. A U.S. entity that is directly engaged in the import or export of goods or services or that provides services in direct support of the international trading activities of other entities; or
   • b. A U.S. organization that trades internationally, represents members that trade internationally, or, consistent with the needs of an ITAC as determined by the Secretary and the Trade Representative, represents members who have a demonstrated interest in international trade.

For eligibility purposes, a “U.S. entity” is a for-profit firm engaged in commercial, industrial, or professional activities that is incorporated in the United States (or is an unincorporated U.S. firm with its principal place of business in the United States) that is controlled by U.S. citizens or by other U.S. entities. An entity is not a U.S. entity if 50 percent plus one share of its stock (if a corporation, or a similar ownership interest of an unincorporated entity) is known to be controlled, directly or indirectly, by non-U.S. citizens or non-U.S. entities.

For eligibility purposes, a “U.S. organization” is an organization, including a trade association, labor union or organization, and nongovernmental organization (NGO), established under the laws of the United States, that is controlled by U.S. citizens, by another U.S. organization (or organizations), or by a U.S. entity (or entities), as determined based on its board of directors (or comparable governing body), membership, and funding sources, as applicable. To qualify as a U.S. organization, more than 50 percent of the board of directors (or comparable governing body) and more than 50 percent of the membership of the organization to be represented must be U.S. citizens, U.S. organizations, or U.S. entities. Additionally, in order for an NGO to qualify as a U.S. organization, at least 50 percent of the NGO’s annual revenue must be attributable to nongovernmental U.S. sources.

An applicant who will represent an entity or organization known to have 10 percent or greater non-U.S. ownership of its shares or equity, non-U.S. board members, non-U.S. membership, or non-U.S. funding sources, as applicable, must certify that this non-U.S. interest does not constitute control and will not adversely affect his/her ability to serve as a trade advisor to the United States.

Army Boot Contract Awarded

The Original Footwear Co. LLC, Morristown, Tennessee, has been awarded a maximum $34,190,669 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for temperate weather combat boots. This was a competitive acquisition with two responses received. Maximum dollar amount is for the life of the contract. This is a one-year base contract with four one-year option periods. Location of performance is Tennessee, with a May 1, 2023, performance completion date. Using military service is Army. Type of appropriation fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1051).

Army Camo Trouser Contract Awarded

San Antonio Lighthouse for the Blind, San Antonio, Texas, has been awarded a maximum $8,498,536 modification (P00008) exercising the first one-year option period of a one-year base contract (SPE1C1-17-D-B024) with two one-year option periods for flame resistant, operational camouflage pattern, intermediate weather outer layer trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Texas, with an Oct. 31, 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.

Analysis of DR-CAFTA Short Supply Procedure Timeline and Likelihood of Success

DR-CAFTA was the first U.S. free trade agreement ("FTA") to have a commercial availability or "short supply" procedure. Earlier agreements, such as the North American Free Trade Agreement ("NAFTA") could handle issues of short supply only through a negotiation to change the rules of origin. Prior to DR-CAFTA the only provisions in U.S. law for making short supply determinations in international trade were those found in certain unilateral trade preference programs. The DR-CAFTA short supply procedures have become the model for subsequent U.S. free trade agreements.

DR-CAFTA short supply procedures, on the face, seem a mixture of elements of a free trade agreement and of a unilateral trade preference program, for, on the one hand, they take into consideration commercial availability in the regional FTA but make the determination the unilateral prerogative of the United States.

While the procedure for adding or removing products from the short supply list is covered by Article 3.25: Rules of Origin and Related Matters of Chapter Three -- National Treatment and Market Access for Goods Section G: Textiles and Apparel, the provision allowing the use of short supply components in qualifying apparel is covered by Note 3 of Annex 4.1 Specific Rules of Origin Part II – Specific Rules of Origin Section XI Textile and Textile Articles (Chapters 50 through 63) which says, in effect, if the outer shell of the garment is made of a product on the short supply list, the garment qualifies for DR-CAFTA.

There are two distinct phases to a DR-CAFTA short supply request. Taking them in reverse order, Phase 2, the public filing, is relatively quick and usually results in approval within a month, or at most, a month-and-a-half.

A government that is a Party to the Agreement (other than the United States) or a potential or actual purchaser of a textile or apparel good may submit, to the Committee for the Implementation of Textile Agreements (“CITA”), a request for a finding of commercial non-availability pursuant to the provisions of Section 203(o)(4) of the Dominican Republic-Central America-United States Free Trade Agreement (“the Agreement”) Implementation Act and CITA Final Procedures for implementing Section 203(o)(4) contained in CITA’s Federal Register notices of March 15, 2007 and the Modifications to Procedures of September 12, 2008.

• Business day 0 – Request received by CITA
• Business day 2 – Request accepted or rejected Business day 2 – If accepted, mass e-mail sent to all interested parties
• Business day 10 – Responses with an offer to supply the product are due
• Business day 14 – Rebuttals Comments are due
• Business day 30 – CITA announces determination (unless the time is extended)
• Business day 44 - CITA announces determination (if the time is extended due insufficient information)

Of the 108 requests processed to day, 86 were approved, 12 were denied, and 10 were voluntarily withdrawn by the petitioner.

Sounds quick and easy, right? WRONG.

The reason the government can evaluate and approve requests so quickly is that there is a lengthy “due diligence” process that must be completed before CITA will even accept a request for consideration. This is Phase 1. Before a request can be filed, thus starting the 30-day process, several weeks or months will have been spent in Phase 1. Many would-be requests never make it past Phase 1 to go on to a public filing.

What is due diligence? Every effort should be made to contact potential suppliers. For example, CITA cannot accept that a potential supplier “did not respond” to an e-mail or phone call after only one attempt to contact the supplier. Contact should be attempted with an appropriate official of a potential supplier. As an example, the CEO of a company may or may not be the most appropriate contact for determining whether the company can supply the requested product. When requesting a fiber, yarn, or fabric from a supplier, the requester must describe the product with the same specifications submitted in the ’Request‘. A requester should be able to clearly substantiate its belief that the subject product is not available from a supplier in a DR-CAFTA country. Whether a substitutable product is available from a potential supplier should be addressed in the submissions. In addition to contacting individual suppliers, requesters should consider contacting textile trade associations in all the DR-CAFTA nations.

In the right circumstances, where all potential suppliers promptly respond that they cannot supply the article in question, due diligence can be done in a short a time as a month. However, it usually takes a few months. Looking that the three most recently approved request we find--

• Request #229 started due diligence November 2, 2016, and filed, starting the 30-day process, on April 3, 2017, for five months of due diligence,
• Request #228 started due diligence November 17, 2016, and filed, starting the 30-day process, on March 20, 2017, for four months of due diligence, and
• Request #222 started due diligence February 4, 2016, and filed, starting the 44-day process, on June 1, 2016, for four months of due diligence.

So, how long does due diligence take? It takes however long it takes to demonstrate to CITA that there are no potential suppliers

Army Jacket Contract Awarded

National Industries for the Blind, Alexandria, Virginia, has been awarded a maximum $14,742,000 modification (P00003) exercising the first one-year option period of a one-year base contract (SPE1C1-17-D-B022) with two one-year option periods for Army physical fitness uniform jackets. The modification brings the total cumulative face value of the contract to $25,293,660 from $10,551,660. This is an indefinite-delivery contract. Locations of performance are VirginUniformia and Maryland, with a May 10, 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.

U.S. Department of Commerce Issues Affirmative Preliminary Antidumping Duty Determinations on Polyetrafluoroethylene Resin from China and India

On May 1, 2018, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determinations in the antidumping duty (AD) investigations of imports of polytetrafluoroethylene (PTFE) resin from China and India.

“The dumping of goods below market value in the United States is something the Trump Administration takes very seriously,” said Secretary Ross. "The Department of Commerce will continue to stand up for American workers and business’s in order to ensure that everyone trades on a level playing field.”

Commerce preliminarily determined that exporters from China and India have sold PTFE resin in the United States at 69.34 to 208.16 percent and 18.49 percent less than fair value, respectively.

As a result of this decision, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of imports of PTFE resin from China and India based on these preliminary rates.

In 2016, imports of PTFE resin from China and India were valued at an estimated $24.6 million and $14.3 million, respectively.

The petitioner is The Chemours Company FC LLC (Wilmington, DE).

Enforcement of U.S. trade law is a prime focus of the Trump administration. Commerce has initiated 112 new antidumping and countervailing duty investigations since the beginning of the Trump administration. This is 75 percent more than the 64 initiations in the last 466 days of the previous administration.

The AD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 430 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is scheduled to announce the final determinations in these investigations on September 18, 2018.

If Commerce makes affirmative final determinations of dumping and the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD orders. If Commerce makes negative final determinations of dumping or the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

Click HERE for a fact sheet on today’s decisions.

Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.

Carter’s Recalls Children’s Cardigan Sets Due to Choking Hazard

This recall involves Carter’s 3-piece penguin cardigan sets. The recalled sets consist of a white embroidered penguin bodysuit, a grey cardigan with a hood and matching pair of pants. They were sold in sizes newborn to 24 months. Style number 127G596 is printed on the front of the care tag sewn on the inside of the cardigan, and the UPC number is printed on the back of the same care tag. The UPC numbers are 190795798203, 190795798166, 190795798173, 190795798180, 190795798135, 190795798142, 190795798159. The style number and UPC number are also printed on the price tag.

Size	UPC	Style No.
NB	190795798203	127G596
3M	190795798166
6M	190795798173
9M	190795798180
12M	190795798135
18M	190795798142
24M	190795798159

Remedy: Consumer should immediately take the recalled cardigan sets away from children, stop using them and return them to a Carter’s store location for a full refund in the form of a gift card. Consumers can also contact Carter’s Consumer Affairs department and request a free return label and envelope to return the cardigan for a refund in the form of an electronic gift card.

Incidents/Injuries: Carter’s received three reports of children putting a detached toggle button in their mouths. No injuries have been reported.

Sold At: Carter’s, Bon-Ton, Burlington Stores, Kohl’s, Macy’s, Ross Stores, Toys “R” Us, and other stores nationwide and online at www.carters.com from July 2017 through March 2018 for about $40.

Importer(s): The William Carter Company, of Atlanta, Ga.

Manufactured In: China.

Recall number: 18-148

Customs Rules on Classification of Cycling Cap

On April 17, 2018, U.S. Customs and Border Protection issued a Binding Ruling Letter (N295874) relating to a cycling cap composed of knit and woven components. The peak and the center crown panel are constructed of 100 percent cotton woven fabric. The two side panels of the crown are constructed of 100 percent polyester knit mesh fabric. The cap features capping on the peak, a partially elasticized back, and a narrow woven fabric headband bearing the Champion® name. The Champion® company name, the Champion® logo and stripes are screen printed on the cap.

The cap is prima facie classifiable under two subheadings. Neither the polyester knit mesh fabric (6505.00.60) nor the cotton woven fabric (6505.00.20) imparts the essential character of the cap. Therefore, the cap will be classified in accordance with GRI 3(c) under the subheading that occurs last in numerical order in the Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading will be 6505.00.6090, HTSUS, which provides for "Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hair-nets of any material, whether or not lined or trimmed: Other: Other: Of man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid: Other: Other: Other." The rate of duty will be 20 cents per kilogram plus 7 percent ad valorem.