Thursday, February 28, 2019

Federal Prison Industries Wins $12 Million Army and Air Force T-Shirt Contract

Federal Prison Industries Inc., doing business as UNICOR, Washington, District of Columbia, has been awarded a maximum $12,210,000 indefinite-delivery/indefinite-quantity contract for moisture wicking t-shirts. This is a 24-month contract with no option periods. Locations of performance are Georgia, South Carolina, and Washington, District of Columbia, with a Feb. 25, 2021, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-F021). (Awarded Feb. 26, 2019)

AAFA Publishes 20th Edition of the Industry’s Restricted Substance List

On February 26, 2019, the American Apparel & Footwear Association published the 20th edition of the Restricted Substance List (RSL). As the “go-to” resource for industry professionals tasked with chemical management, the RSL lists banned and restricted chemicals and substances for finished apparel, footwear, and home textile products, identifying the most restrictive regulations worldwide. The RSL is an open-industry resource available to both AAFA members and the broader community.

"Keeping up with continuously evolving regulations at the global, national, and state level results in major complexities for our members," said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association. "For more than a decade, AAFA has provided the Restricted Substance List as a solution to the complex dilemma of evolving global regulations. It is with great pride that we release this landmark edition to the broader community, as a resource to ensure product safety around the world."

The 20th edition of the RSL covers 12 categories with more than 250 chemicals and is updated to reflect additions or changes to regulations and laws that restrict or ban certain chemicals in finished apparel, footwear, and home textile products. The RSL is produced by AAFA’s RSL Task Force, which reviews and updates the list regularly to reflect the latest global regulatory changes.

The RSL can be accessed here.

Wednesday, February 27, 2019

Army Coat Contract Awarded

De Rossi & Son Company, Inc., Vineland, New Jersey, has been awarded a maximum $11,351,934 modification (P00012) exercising the fourth one-year option period of a one-year base contract (SPE1C1-15-D-1033) with four one-year option periods for men’s Army coats. This is a firm-fixed-price contract. Location of performance is New Jersey, with a March 3, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Tuesday, February 26, 2019

Textile Aircraft Arresting Systems Contract Awarded

Engineered Arresting Systems Corp., doing business as Zodiac Arresting Systems America, Aston, Pennsylvania, was awarded a $9,679,711 firm-fixed-price requirements contract for the Textile Aircraft Arresting Systems (TAAS) This contract provides for the production of the TAAS, a onetime emergency use overrun aircraft arresting system designed for use with tail hook equipped fighter aircraft, or non-hook equipped aircraft when couples with a net barrier engaging system. Work will be performed in Merpins, France, and is expected to be complete by Sept. 28, 2022. This award is the result of a sole-source acquisition, and no funds were obligated at the time of award. Air Force Life Cycle Management, Robins Air Force Base, Georgia, is the contracting activity (FA8533-17-D-0001). (Awarded Sept. 29, 2017)

Navy Working Uniform Contract Awarded

Silver Oak Leaf, Inc., Alpharetta, Georgia, has been awarded a maximum $16,074,375 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for blouses and trousers for the Type III, Navy Working Uniform. This was a competitive acquisition with six responses received. This is an 18-month base contract with three one-year option periods. Location of performance is Puerto Rico and Georgia, with a Feb. 24, 2021, estimated performance completion date. Using military service is Navy. Type of appropriation is fiscal year 2019 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1135).

Monday, February 25, 2019

No March 2nd China Tariff Hike

Friday, February 22, 2019

Army and Air Force Cold/Wet Weather Jacket Contract Awarded

Tennier Industries Inc., Delray Beach, Florida, has been awarded a maximum $30,493,800 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for extreme cold/wet weather jackets. This is an 18-month base contract with one, one-year option period. This was a competitive acquisition with seven responses received. Location of performance is Florida and Tennessee, with an Aug. 20, 2020, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019, through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1136).

Tuesday, February 19, 2019

List 3 China 301 Tariffs to Have Exclusion Process

In the appriations bill signed last week, Congress provided funds for the Office of the United States Trade Representative and in Explanatory Statement directed USTR to establish an exclusion process, similar to the process for goods on List 1 and List 2, no later than March 17, 2019.

Companies seeking to file for exclusions should begin preparing now, as the process requires highly detailed product description. If Agathon Associates assisted you with comments or hearing testimony relating to List 3, contact David Trumbull at david@agathonassociates.com to set up an appointment to begin the evaluation of any potential exclusion filings.

Here is the relevant language in the Explanatory Statement--

Section 301 Exclusion Process. USTR has finalized tariffs on goods from China under Section 301 of the Trade Act of 1974 in three separate rounds, and provided an exclusion process that allows U.S. businesses to obtain relief from the Section 301 tariffs for goods subject to tariffs in rounds 1 and 2. It is concerning that there is no exclusion process for goods subject to tariffs in round 3 of the Section 301 proceedings, as was done in the first two rounds. USTR shall establish an exclusion process for tariffs imposed on goods subject to Section 301 tariffs in round 3. This process should be initiated no later than 30 days after the enactment of this Act, following the same procedures as those in rounds 1 and 2, allowing stakeholders to request that particular products classified within a tariff subheading subject to new round 3 tariffs be excluded from the Section 301 tariffs. USTR shall consult with the Committees on Appropriations, the House Committee on Ways and Means, and the Senate Committee on Finance regarding the nature and timing of the exclusion process. USTR shall also report to such committees no later than 30 days after enactment of this Act on the status of the exclusion process.

Sunday, February 17, 2019

Army Combat Helmet Chinstrap Contract Awarded

Lions Services, Charlotte, North Carolina, has been awarded a maximum $11,403,650 modification (P00020) exercising the second one-year option period of a one-year base contract (SPE1C1-17-D-B008) with two one-year option periods for advanced combat helmet chinstraps and hardware. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are North Carolina and Texas, with a Feb. 16, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019, through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Wednesday, February 13, 2019

"Here Let US Stop" - George Washington, 1796

Monday, February 18, 2019, is a federal holiday in the United States honoring George Washington's birthday. Government offices, banks, and some businesses will be closed in observance of the holiday which is annually celebrated on the third Monday in February. Because the date typical falls between the actual calendar date birthdays of presidents Washington and Lincoln, it is commonly called "Presidents Day," although the official designation is "Washington's Birthday."

"The great rule of conduct for us in regard to foreign nations is in extending our commercial relations, to have with them as little political connection as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop." -- George Washington’s Farewell Address, 1796.

Poor George, both revered and kicked around by us. He was born February 11th but when he was 20 Britain and her colonies finally caught up with Catholic Europe by switching to the Gregorian Calendar, moving his birthday to the 22nd of the month. Then, starting in 1971, the Uniform Monday Holiday Act of 1968 moved the official celebration of his birth to the third Monday in February. In popular parlance we slight our first President by neglecting the legal name of the holiday, WASHINGTON’S BIRTHDAY and refer to it as a generic "Presidents’ Day."

We likewise neglect Washington's sage warning against entangling foreign alliances. Even in our commercial relations our leaders, not content merely to trade with the rest of the world, have entered into binding agreements restricting our ability to control our own commerce, to encourage domestic manufacturing, or even to protect our citizens from unsafe products. Our legal obligations to the World Trade Organization and our bilateral and multilateral trade agreements entangle us in a network of supra-national laws that can, effectively, overturn the actions of our elected Congress and President.

On November 8, 2016, the American people finally said, "Enough," and elected a President who promised to put the interest of the American people first. President Donald J. Trump has fulfilled that promise. As President his first major action was withdrawing the U.S. from the Trans-Pacific Partnership, a monstrosity of a trade deal, calculated to destroy hundreds of thousands of American jobs. In his statement upon exiting the TPP, Trump said:

"It is the policy of my Administration to represent the American people and their financial well-being in all negotiations, particularly the American worker, and to create fair and economically beneficial trade deals that serve their interests."

During the campaign, Barack Obama, who pushed for the TPP, which would have given preferred access to the U.S. market to Islamofascist Brunei and totalitarian Communist Vietnam, said that Trump would need a "magic wand" to fulfill his promises to restore the U.S. economy to health. Well, President Trump found that wand. The President has brought record low unemployment, record high employment, and rising wages, by going back to the wisdom of George Washington.

NCTO ANNOUNCES KIMBERLY GLAS AS NEXT PRESIDENT & CEO

The National Council of Textile Organizations (NCTO) has announced the appointment Kimberly Glas as the organization's new President & CEO, effective April 29th of this year. Ms. Glas will succeed Augustine "Auggie" D. Tantillo, who previously announced his intention to step down from the same position at NCTO.

Current NCTO Chairman Marty Moran, CEO of Jefferson, Ga.-based Buhler Quality Yarns, noted that the selection follows a rigorous search process that led to her unanimous approval by NCTO Board of Directors. Ms. Glas brings over 20 years of experience in government policy development and advocacy. Her multi-faceted career includes spearheading manufacturing and trade policy efforts on Capitol Hill, serving as a key leader on behalf of the textile industry in the Obama Administration, and most recently leading a non-profit organization working to advance critical policies to grow quality, U.S. jobs in the clean energy economy.

"I am honored and excited for the opportunity to lead NCTO and to work on behalf of this innovative industry. I am grateful to Auggie for his leadership and all his support and friendship over the years and am deeply appreciative to the NCTO membership for this incredible opportunity," said Glas. "I could not be more excited about taking on this role. I know how critical this industry is to so many across the United States and the value it represents. I am thrilled to be able to work on its behalf to advance its priorities."

Ms. Glas most recently served as Executive Director of the BlueGreen Alliance, a national partnership of labor and environmental organizations working to advance the creation of quality U.S. jobs in the clean energy economy. In this capacity, she worked closely with labor, environmentalists and U.S. industry at the intersection of energy, the environment and trade to advance common-sense policy solutions in order to help achieve a stronger economy and a more sustainable future.

Prior to that, from 2009 to 2014, Ms. Glas served as the Deputy Assistant Secretary for Textiles, Consumer Goods and Materials at the U.S. Department of Commerce under the Obama administration. In this capacity, Ms. Glas managed three offices of nearly 40 employees and oversaw programs and strategies to improve the domestic and international competitiveness of the U.S. textile and apparel industries. Ms. Glas worked closely with the United States Trade Representative, other key agencies, and Congress to advance a multitude trade policy interests critical to the U.S. industry, including advancing fixes to the CAFTA-DR agreement to help maintain and grow the U.S. textile workforce.

Ms. Glas also brings extensive Capitol Hill experience, having worked for U.S. Representatives Michael Michaud of Maine and John J. LaFalce of New York. Kim helped to initially organize, and then served as the key Congressional staffer for the House Trade Working Group, a key coalition of Members of Congress that works extensively on trade policy and domestic competitiveness issues to this day.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

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.

FTZ Filing Seeks Exemption from U.S. Import Duty on Woven and Knitted Fabrics

The Foreign-Trade Zone Board has docketed an application from Woodbridge Group, El Paso, Texas, relating to production of laminates by bonding foam/fabric or foam/film and passing the foam over an open flame.

Production under FTZ procedures could exempt Woodbridge from customs duty payments on the foreign-status components used in export production. On its domestic sales, for the foreign-status materials/components noted below, Woodbridge would be able to choose the duty rates during customs entry procedures that apply to: Synthetic textile fabrics laminated with polyurethane foam and woven scrim; vinyl goods laminated with polyurethane foam and knit or woven scrim backing; vinyl goods laminated with polyurethane foam; synthetic textile and cotton mix fabrics laminated with polyurethane foam; and, polyurethane foam laminated with woven scrim (duty rate ranges from 2.7% to 6.5%). Woodbridge would be able to avoid duty on foreign-status components which become scrap/waste. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

The components and materials sourced from abroad include: Vinyl coated fabric with polyvinyl chloride; woven polyester fabric yarn dyed and coated with polyurethane; synthetic leather rolls; vinyl leather imitation; artificial leather cloth; sheets of plastics--cellular--polyvinyl chloride fabric of man-made fibers; sheets of plastics--non-cellular--polyvinyl chloride; sheets of plastics--cellular--100% plastic; rolls of cotton fabric coated with polyvinyl chlorides; fabric of man-made fibers coated with over 70% plastic; fabric of man-made fibers coated with under 70% plastic; sheets of plastics--cellular--polyvinyl chloride--over 70% plastic combined with 65/35 poly cotton fabrics; sheets of plastics--cellular--of other plastics; woven synthetic fabric rolls 100% for automotive industry; polyvinyl chloride leather; 100% polyester knit fabrics; 9803X polyester nonwoven backing; polyester nonwoven scrim; and, knitted polyester fabric 100% (circular knit) (duty rate ranges from duty-free to 14.9%).

Of particular interest to readers of Textiles and Trade is the request for exemption from import duties on the following fabrics:

DescriptionHTSUSDuty
Synthetic fiber woven fabric5407.52.20.6014.9%
Cotton fabric coated with polyvinyl chloride5903.10.10002.7%
Man-made fiber fabric coated with less than 70% of polyvinyl chloride5903.10.25007.5%
Man-made fiber fabric coated with less than 70% of polyurethane chloride5903.20.25007.5%
100% polyester warp knit fabric 6005.37.00.8010.0%
100% polyester circular knit fabric6006.31.00.4010.0%

Comments are due by March 25, 2019. If you are interested in opposing this application for exemption from import duties, Agathon Associates can assist you, contact David Trumbull at

Tuesday, February 12, 2019

Op-Ed by Commerce Secretary Wilbur L. Ross: Trade Reciprocity Needed Now

Commerce Secretary Wilbur L. Ross says, "[Under the] WTO's "Most Favored Nation" rule, we do not have the ability to vary tariff rates in order to directly match or offset the tariffs or non-tariff barriers of one country or another," in promoting the The U.S. Reciprocal Trade Act introduced in the House of Representatives this week...READ MORE.

Target Recalls Toddler Boots Due to Choking Hazard

This recall includes the Cat & Jack “Chiara” toddlers’ unicorn boots in sizes 5-13, and size 1. The boots are white with silver shimmer, include a white zipper, and white faux fur lining. The unicorn’s horn and inner ears are silver glitter and its eyelashes and nostrils are stitched and gray in color. At the base of the unicorn’s horn is pink, purple, and blue faux fur.  The back and sides of the boots contain multi-colored stripes. The model numbers are located on the inside tag of the boot. The recalled model numbers begin with TARGET0930156XX, where XX corresponds to a specific sized boot.

 

Item Number

Product Name

093-01-5653

Cat & Jack "Chiara" Boots Size 5

093-01-5654

Cat & Jack "Chiara" Boots Size 6

093-01-5655

Cat & Jack "Chiara" Boots Size 7

093-01-5656

Cat & Jack "Chiara" Boots Size 8

093-01-5657

Cat & Jack "Chiara" Boots Size 9

093-01-5658

Cat & Jack "Chiara" Boots Size 10

093-01-5659

Cat & Jack "Chiara" Boots Size 11

093-01-5660

Cat & Jack "Chiara" Boots Size 12

093-01-5661

Cat & Jack "Chiara" Boots Size 13

093-01-5662

Cat & Jack "Chiara" Boots Size 1

Remedy: Consumers should immediately take the recalled boots away from children and return them to any Target Store for a full refund. ​​​​

Incidents/Injuries: Four consumers reported the unicorn’s horn detached. No injuries have been reported.

Sold At: Target stores nationwide, online at Target.com, and on Google Express from October 2018 through November 2018 for about $27.

Manufacturer(s): Putian Licheng Phoenix Footwear CO., of Fujian, China

Importer(s): Target Corp., of Minneapolis, Minn.

Distributor(s): Target Corp., of Minneapolis, Minn.

Manufactured In: China

Recall number: 19-062

Friday, February 8, 2019

MAS Holdings Chairman Honored for Humanitarian Work

Mahesh Amalean, the chairman and co-founder of Sri Lankan apparel and fabric manufacturing giant MAS Holdings, has been honored for his humanitarian work in the apparel sector... READ MORE.

Tuesday, February 5, 2019

U.S. Report Finds China out of Compliance with WTO Commitments Relating to Textiles, Intellectual Property, Export Subsidies, and Import Barriers

On February 4, 2019, USTR Released the Annual Reports on China's WTO Compliance

China and Russia present unique and serious challenges for members of the WTO and the multilateral trading system, largely because of their failure to embrace the pursuit of open, market-oriented policies, the U.S. Trade Representative said in the annual reports. China became a member of the WTO in 2001 and Russia joined the WTO in 2012.

Selected highlights of the 2018 annual report on China’s WTO compliance:

  • Despite repeated commitments to refrain from forcible technology transfer from U.S. companies, China continues to do so through market access restrictions, the abuse of administrative processes, licensing regulations, asset purchases, and cyber and physical theft.

  • China committed to open the electronic payment services market in 2006. This commitment was confirmed in a 2012 ruling by the WTO’s dispute settlement body resulting from a U.S. legal challenge. Today, the reality remains that no foreign electronic payment services companies conduct business in China’s domestic market.

  • China’s use of export and import substitution subsidies has been ubiquitous throughout the past two decades in sectors as diverse as automobiles, textiles, advanced materials, medical products and agriculture, despite explicit prohibitions in the WTO Agreement.

  • China has repeatedly committed to review applications of agricultural biotechnology products in a timely, ongoing and science-based manner. However, the Chinese regulatory authorities continue to review applications slowly and without scientific rationale, while Chinese companies continue to build up their own capabilities in the area of agricultural biotechnology.

  • China has repeatedly deployed illegal export restraints, such as export quotas, export licensing, minimum export prices, export duties and other restrictions, on scores of raw material inputs, as determined in multiple WTO cases brought by the United States and other WTO members. China has used these illegal export restraints to provide substantial cost advantages to a wide range of downstream producers in China at the expense of foreign producers, while creating pressure on foreign producers to move their operations, technologies and jobs to China.

  • Any review of China’s trade regime also shows that China’s regulatory system is so opaque that it is often difficult for U.S. companies – or even the U.S. government – to fully understand China’s legal requirements in a particular area of the economy. This problem is exacerbated by China’s extremely poor record of adhering to its transparency obligations as a WTO member. These shortcomings create their own trade barriers and undermine the competiveness of China’s trading partners.

Monday, February 4, 2019

CPSC Commissioners to Meet with Arlene Blum from Green Science Policy Institute (GSPI) on Furniture Flammability

On March 18, 2019, Consumer Product Safety Commissioners Robert Adler and Peter Feldman and staff are scheduled to meet with Arlene Blum, Executive Director of Green Science Policy Institute (GSPI). The topic for discussion is furniture flammability and flame retardant standards.

NCTO Announces Retirement of President & CEO Auggie Tantillo

Augustine “Auggie” D. Tantillo, President & CEO of the National Council of Textile Organizations, has announced his intention to retire from his position later this year. Tantillo has enjoyed a 38-year, multifaceted career in the Washington policy arena, most of which involved direct representation of the U.S. textile industry.

NCTO Chairman Marty Moran stated, “Due to his vast institutional knowledge and skill in navigating policy matters in Washington, Auggie will certainly be missed. On behalf of our entire membership, I want to express our gratitude to Auggie for his dedicated and important service to our industry,” Moran added.

Tantillo stated, “It has been a tremendous privilege to represent an industry that has made such an enormous contribution to the U.S. economy and the U.S. workforce. I will always be grateful for the confidence that the domestic textile sector has shown in me as the head of this important organization.”

In the spring of last year, NCTO formed a search committee to undertake the process of selecting a replacement for Tantillo. After vetting numerous highly-qualified individuals and conducting a thorough interview process with leading candidates, the organization intends to make a public announcement on Tantillo’ s replacement in the coming weeks.

Tantillo has worked in government service or government relations in Washington, D.C. since 1981. Prior to joining NCTO, he served as Executive Director of the American Manufacturing Trade Action Coalition, a trade association dedicated to furthering the interests of U.S. manufacturing, particularly with respect to textiles. At earlier points in his career, Tantillo was Deputy Assistant Secretary for Textiles & Apparel at the U.S. Department of Commerce under President George H. W. Bush, and Chief of Staff to U. S. Senator Strom Thurmond of South Carolina. Tantillo earned a B.S. in Agricultural Economics from Clemson University.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • 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.

Saturday, February 2, 2019

Two Manufacturers Win Contracts for Army and Air Force jackets, Extreme Cold/Wet Weather GEN III Jackets

Aurora Industries LLC, Camuy, Puerto Rico, has been awarded a maximum $30,507,300 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for jackets, extreme cold/wet weather, GEN III. This is an 18-month base contract with one one-year option period. This was a competitive acquisition with four responses received. Location of performance is Puerto Rico, with an Aug. 1, 2020, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1133).

Coachys & Associates LLC, Roswell, Georgia, has been awarded a maximum $28,390,500 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for jackets, extreme cold/wet weather, GEN III. This is an 18-month base contract with one one-year option period. This was a competitive acquisition with five responses received. Locations of performance are Georgia and Tennessee with an Aug. 1, 2020, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1134).