ITC Reports on Miscellaneous Tariff Suspensions in Effect

On October 18, 2019, the U.S. International Trade Commission released Report 4987 American Manufacturing Competiveness Act: Effects of Temporary Duty Suspensions and Reductions on the U.S. Economy

Main Findings:

• As of March 2019, over 90 percent of firms responding to the Commission's questionnaire imported or planned to import goods under the Harmonized Tariff Schedule 9902 headings (provisions) that provide temporary duty suspensions and reductions; about one-third of these firms have increased or planned to increase imports. Between November 2018 and May 2019, importers saved $179 million in duties on imports of $5.4 billion.
• As of March 2019, many responding firms stated they had not had enough time to take full advantage of the duty suspensions and reductions. Some respondents also reported that section 301 tariffs on products of China have lessened the positive impacts of the duty relief.
• As a result of the duty relief, nearly a quarter of responding manufacturers reported a decrease in production costs. Among all respondents, many expected future increases in sales volumes, number of customers, and investment in new product development. Compared with larger firms, more responding small and medium-sized enterprises (SMEs) reported that the duty relief has had positive effects on virtually all business operations.
• Chemicals firms account for the largest share of 9902 headings and imports. Thus, the largest number of responding firms reporting benefits from the duty relief are in the Chemicals group.
• The results of the Commission’s economic modeling suggest that the temporary duty relief will lead to a small increase in output, welfare, and gross domestic product (GDP) in the United States. Moreover, the average price of goods imported under the 9902 provisions will likely decline, although not by the full amount of the duty reduction.

Case Study: Textiles

• During the period November 2018–May 2019, importers saved $5 million in duties on imports of $109 million entered under the 9902 headings for the Textiles subgroup, equivalent to an average duty reduction of 4.7 percentage points.
• Nearly 90 percent of firms responding to the Commission's questionnaire reported that they import or plan to import textile products eligible for duty suspensions or reductions under the 9902 provisions, and over a quarter have increased or plan to increase these imports.
• Responding firms in this subgroup reported increases in investment in new product development and employment. Nearly 35 percent of respondents anticipate increases in sales volume, and almost one-third expect increases in their customer base.
• Two of 6 responding retailers and distributors/wholesalers lowered the prices of their imported products sold to customers because of the temporary duty relief, and 4 of 6 anticipate decreases in the future.
• Nearly half of responding manufacturers reported that their production costs declined as a direct result of the 9902 provisions, and half anticipate this cost reduction will decrease in the future. Additionally, 27 percent anticipate increases in production volume as a direct result of the tariff relief.

Complex Textile Supply Chains and the Question of the Country of Origin

In Binding Ruling NY N303580, CBP determined El Salvador to be the country of origin of certain stuffed mattress covers. CBP has reviewed NY N303580 and has determined the ruling letter to be in error. It is now CBP's position that the country of origin of the stuffed mattress covers is either the United States, China, or El Salvador, depending on the style of mattress cover and respective fabric origin. CBP is proposing to modify the ruling and country of origin determination. Before taking this action CBP will consider public comments. Comments must be received on or before November 29, 2019.

The articles in are processed in more than one country, which complicated the country of origin determination.

Styles S-10 and 12

• Stuffed Fabric/Top and Border Knit/Cover are formed in the United States.
• Bottom Fabric is formed in the United States.
• Cutting, sewing, and assembly operations in El Salvador.

Style S-14

• Stuffed Fabric/Top Knit/Cover is formed in the United States.
• Border Fabric is formed in China.
• Bottom Fabric is formed in the United States.
• Cutting, sewing, and assembly operations in El Salvador.

Styles T-10 and 12

• Stuffed Fabric/Top Knit/Cover are formed in Mexico or China.
• Fabric is formed in China.
• Bottom Fabric is formed in China
• Cutting, sewing, and assembly operations in El Salvador.

CBP HOLDING:

• The country of origin for the S-10 and S-12 mattress covers is the United States.
• The country of origin for the S-14 mattress cover is El Salvador.
• The country of origin for the T-10 and T-1” mattress covers in which the component fabric is manufactured in China, is China.
• The country of origin for the T-1” and T-12 mattress covers in which the component fabrics are manufactured in China and Mexico, is El Salvador.

CBP's reasoning in this case can be viewed at CUSTOMS BULLETIN AND DECISIONS, VOL. 53, NO. 39, OCTOBER 30, 2019

Cartoon Character Gloves Are Dutiable as Wearing Apparel, Says Customs.

In NY B871119, dated July 8, 1997, and NY N006668, dated February 14, 2007, CBP classified gloves and a mitt in heading 9505, HTSUS, specifically in subheading 9505.90.60, HTSUS (rate of duty ZERO), which provides for "Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Other: Other." CBP has reviewed the rulings and has determined the ruling letters to be in error. It is now CBP’s position that the gloves and a mitt are properly classified, in heading 6116, HTSUS, specifically in subheading 6116.93.88, HTSUS (rate of duty 18.6%), which provides for "Gloves, mittens and mitts, knitted or crocheted: Other: Of synthetic fibers: Other: Without fourchettes."

The cartoon hands classified in NY N006668 are an oversized pair of “cartoon hand” style gloves, 12″ wide and 11″ in length, with one thumb and three fingers made from 100 percent polyester knit fabric and stuffed with foam. It also allows for the insertion of the thumb and separate insertion of the fingers.

CBP's reasoning in this case can be viewed at CUSTOMS BULLETIN AND DECISIONS, VOL. 53, NO. 39, OCTOBER 30, 2019

The question of whether imported merchandise is a "festive article" duty-free under a Heading 9505 provision or an article of wearing apparel or a textile article, subject to the import duties applicable to goods of chapters 61 through 63, has been the subject of litigation, Customs rulings and ruling reversals. Clients of Agathon Associates can read more at www.agathonassociates.com/textile-pri/festive-articles/.

United States Wins WTO Challenge to Indian Export Subsidies for Textiles, Apparel, and Other Industries

A World Trade Organization ("WTO") dispute panel has agreed with the United States that India provides prohibited export subsidies to Indian exporters worth over $7 billion annually. According to the panel, India gives prohibited subsidies to producers of steel products, pharmaceuticals, chemicals, information technology products, textiles, and apparel, to the detriment of American workers and manufacturers.

The Indian programs found in violation of WTO rules are: the Merchandise Exports from India Scheme ("MEIS"); Export Oriented Units Scheme ("EOU) and related sector specific schemes; Special Economic Zones ("SEZ"); Export Promotion Capital Goods Scheme; and a duty free imports for exporters program. The panel gave India six months to withdraw these prohibited subsidies.

According to the Indian Government, thousands of Indian companies are receiving subsidies totaling over $7 billion annually from these programs, and India has increased the size and scope of these programs. For example, India has rapidly expanded the MEIS to include more than 8,000 eligible products, nearly double the number of products covered since its introduction in 2015. Exports under the SEZ have increased over 6,000 percent from 2000 to 2017 and in 2016 accounted for over $82 billion in exports, or 30 percent of India’s export volume. Exports from the EOU increased by over 160 percent from 2000 to 2016.

Export subsidies provide an unfair competitive advantage to recipients, and WTO rules expressly prohibit them. A limited exception to this rule is for specified developing countries that may continue to provide export subsidies temporarily until they reach a defined economic benchmark. India was initially within this group, but it surpassed the benchmark in 2015. India’s exemption has expired, but India has not withdrawn its export subsidies.

The October 31, 2019, panel report rejects India’s assertion that it is entitled to additional time to provide export subsidies even after hitting the defined economic benchmark. The panel report concludes that each program is an export subsidy inconsistent with India's WTO obligations.

The withdrawal of these prohibited subsidies will result in American workers and manufacturers competing on a fairer basis with their Indian competitors.

USTR May Extend China 301 List 1 Exclusions through 2020.

Effective July 6, 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $34 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative initiated the exclusion process in July 2018 and granted an initial set of exclusions in December 2018. The exclusions granted in December 2018 are set to expire on December 28, 2019. The U.S. Trade Representative has decided to consider extending particular exclusions granted in December 2018 for up to twelve months. The Office of the U.S. Trade Representative (USTR) invites public comment on whether to extend particular exclusions. Comments will be accepted beginning November 1, 2019, and through November 30, 2019.

See 84 FR 58427

President Trump Modifies AGOA Apparel Eligibility for Mali, and GSP Eligibility for Ukraine and Thailand

On October 31, 2019, the Executive Office of the President published in the Federal Register (84 FR 58567) Proclamation 9955 of October 25, 2019 To Modify Duty-Free Treatment Under the Generalized System of Preferences and for Other Purposes.

UKRAINE. The proclamation restores the duty-free treatment accorded under GSP to certain products from Ukraine because the country has made progress towards providing adequate and effective protection of intellectual property rights. The list of products restored to GSP eligibility for Ukraine is available at http://ustr.gov/sites/default/files/files/gsp/Products_to_be_restored_to_GSP_eligibility_for_Ukraine.pdf

THE REPUBLIC OF MALI. The proclamation designates Mali a lesser developed beneficiary sub-Saharan African country (LDBC), thus qualifying it for LDBC preferential benefits. This action will take effect thirty days from the signing of the proclamation, November 24, 2019. Mali's AGOA benefits had been restored by Presidential Proclamation 9072 (December 23, 2013) which designated the Republic of Mali as a beneficiary sub-Saharan African country to the AGOA program; however, this Presidential Proclamation did not designate the Republic of Mali as a "lesser developed beneficiary sub-Saharan African country." As a consequence, Mali was unable to take advantage of special rules for certain apparel articles imported from "lesser developed beneficiary sub-Saharan African countries," in particular the third country fabric provision that enables Mali to produce apparel competitively.

THAILAND. The proclamation withdraws the duty-free treatment accorded under GSP to certain products from Thailand because the country is not taking steps to afford workers in Thailand internationally recognized worker rights. This action will take effect six months from the issuance of this proclamation. Additional guidance will be issued close to the date of implementation. The list of products excluded from GSP eligibility for Thailand is available at: http://ustr.gov\sites\default\files\files\gsp\Products_to_be_removed_from_GSP_eligibility_for_Thailand.pdf

If questions contact the Trade Agreements Branch at FTA@CBP.DHS.gov.

Army Coverall Contract Awarded to Puerto Rico Company

Propper International, Cabo Rojo, Puerto Rico, has been awarded a maximum $13,099,478 firm-fixed-price, indefinite-quantity contract for Improved Combat Vehicle Crewmen's coveralls with the operational camouflage pattern. This is a one-year base contract with four one-year option periods. This was a competitive acquisition with two responses received. Location of performance is Puerto Rico, with an Oct. 29, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1205).

From Your Head to Your Toes: Made in the USA Matters

Read about two U.S.-based companies, Wigwam and Bollman, which have been manufacturing socks and hats in the United States for 265 years, collectively. READ MORE.

Draper Knitting is honored to have been both nominated and selected to be part of Boston’s WCVB Channel 5’s “Made in Mass” segment.

USTR Publishes Textile and Other Exclusions from China 301 List 3

On October 28, 2019, the Office of the United States Trade Representatives published in the Federal Register (84 FR 57803) Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

SUMMARY: In September 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $200 billion as part of the action in the Section 301 investigation of China's acts, policies, and practices related to transfer, intellectual property, and innovation. The U.S. Trade Representative initiated a product exclusion process in June 2019, and interested persons have submitted requests for the exclusion of specific products. This notice announces the U.S. Trade Representative's determination to grant certain exclusion requests, as specified in the annex to this notice.

DATES: The product exclusions announced in this notice will apply as of the September 24, 2018, effective date of the $200 billion action, to August 7, 2020.

Items 13 through 19 on the list are textile articles.

(13)	Yarn of carded Merino sheep wool, not put up for retail sale, containing 85 percent by weight of wool, of which the average fiber diameter is not more than 25 microns	5106.10.0090
(14)	Woven dyed fabrics of 100 percent textured polyester filament yarn, measuring 332.7 cm in width, weighing more than 170 g/m2	5407.52.2060
(15)	Nonwoven fabrics of man-made fibers, weighing more than 25 g/m2 but not more than 70 g/m2, with a smooth or embossed texture (not impregnated, coated or covered with material other than or in addition to rubber, plastics, wood pulp or glass fibers), in rolls that are pre-slitted in lengths of not less than 15 cm to not more than 107 cm, for use in the manufacture of personal care wipes	5603.12.0090
(16)	Seat belt webbing of man-made fibers, measuring 25 mm or more but not exceeding 50 mm in width, not cut to specific length	5806.32.2000
(17)	Imitation leather fabrics, of man-made fibers impregnated, coated, covered or laminated with 75 percent polyvinyl chloride (PVC) by weight	5903.10.2090
(18)	Fabrics of man-made micro-denier fibers impregnated, coated, covered, or laminated with polyurethane, of a width of at least 135 cm but no more than 150 cm, weighing at least 206 g/m2 but not more than 500 g/m2	5903.20.2500
(19)	Long pile knit fabrics, of acrylic pile on polyester ground, valued not over $16 per m2	6001.10.2000

$7.2 Million Army and Air Force Jacket Contract Awarded

Tennier Industries, Delray, Florida, has been awarded a maximum $7,152,750 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the GEN III Layer 5 Soft Shell Jacket. This was a competitive acquisition with one response received. This is a one-year base contract with two one-year option periods. Location of performance is Florida, with an Oct. 24, 2020, performance completion date. Using military services are Army and Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-19-D-1203).

USTR Announces Exclusion Procedures for China Section 301 Tranche 4

On October 24, 2019, the Office of the United States Trade Representative published in the Federal Register (84 FR 57144) [Docket Number USTR–2019–0005] Procedures for Requests To Exclude Particular Products From the August 2019 Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

The portal for filing will open October 31, 2019, and close January 31, 2020.

U.S. International Trade Commission Releases The Year in Trade 2018

The U.S. International Trade Commission (USITC) has released The Year in Trade 2018, its annual overview of developments regarding the administration of U.S. trade laws and trade agreements.

The USITC's The Year in Trade is one of the government's most comprehensive reports available regarding activities related to U.S. trade policies, agreements, and trade laws. This report is the 70th in a series of annual reports submitted to the U.S. Congress under section 163(c) of the Trade Act of 1974 (19 U.S.C. 2213(c)) and its predecessor legislation.

The publication reviews U.S. international trade laws and actions under these laws, activities of the World Trade Organization (WTO), and developments regarding U.S. free trade agreements (FTAs), FTA negotiations, and U.S. bilateral trade relations with major trading partners in 2018.

The Year in Trade 2018 covers:

• all U.S. antidumping, countervailing duty, safeguard, intellectual property rights infringement, national security and section 301 cases active in 2018.  In addition, the 2018 report covers the operation of U.S. trade preference programs, including the U.S. Generalized System of Preferences, the African Growth and Opportunity Act, the Nepal Trade Preferences Act, and the Caribbean Basin Economic Recovery Act, including initiatives for Haiti;


• WTO dispute settlement decisions and other significant activities in the WTO, the Organisation for Economic Co-operation and Development, and the Asia-Pacific Economic Cooperation forum;


• negotiations on U.S. FTAs with the European Union, the United Kingdom, Japan, and on the United States-Canada-Mexico Agreement, negotiations on modifications to the U.S.-Korea FTA, and developments regarding the North American Free Trade Agreement and other U.S. FTAs already in effect; and


• bilateral trade issues with selected major U.S. trading partners -- the European Union, China, Canada, Mexico, Japan, South Korea, India, and Taiwan.

The report also provides an overview of U.S. trade in goods and services during 2018. Statistical tables highlight U.S. bilateral trade with major trading partners and trade under U.S. trade preference programs and free trade agreements.

An interactive, web-based version of The Year in Trade 2018 will be released later this month on October 17, 2019.

The Year in Trade 2018 (USITC Publication 4986, October 2019) will be posted on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4986.pdf.   Other reports in this series dating back to 1948 can also be found on the Commission's website at https://www.usitc.gov/annual_reports_archive.  

$8 Million Air Force Trouser Contract Awarded

Creighton AB Inc., Reidsville, North Carolina, has been awarded a maximum $8,055,077 firm-fixed-price contract for men's trousers. This was a competitive acquisition with one response received. This is a one-year base contract with four one-year option periods. Locations of performance are North Carolina and New York, with an Oct. 23, 2020, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1211). (Awarded Oct. 23, 2019)

National Industries for the Blind Awarded Contract for Combat Helmet Pad Suspension System

National Industries for the Blind, Alexandria, Virginia, has been awarded a $13,404,000 modification (P00012) exercising the third one-year option period of a one-year base contract (SPE1C1-17-D-B003) with four one-year option periods for the advanced combat helmet pad suspension system. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Virginia, Pennsylvania and North Carolina, with an Oct. 26, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Five Manufacturing Innovations that Will Change the World

From clothing that can adapt to temperature to bandages that can speed up the healing process, here are five innovations developed by Manufacturing USA-affiliated institutes that will soon change the lives of people across the country.

Read more: https://www.smithsonianmag.com/sponsored/5-manufacturing-innovations-will-change-world-180973108/.

National Industries for the Blind Awarded Army T-Shirt Contract

National Industries for the Blind, Alexandria, Virginia, has been awarded a maximum $8,562,960 modification (P00005) exercising the first one-year option period of a one-year base contract (SPE1C1-19-D-B043) with four one-year option periods for moisture wicking T-shirts. This is an indefinite-delivery contract. Locations of performance are Virginia, North Carolina and Arkansas, with an Oct. 30, 2020, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

U.S. to Begin Imposing 25% Tariff on Certain Wool and Cashmere Apparel from the United Kingdom

In a Federal Register Notice scheduled for publication on October 18, 2019, the Office of the United States Trade Representative announces the final list of articles from the United Kingdom and certain other States of the European Union to be subject to additional Section 301 tariffs relating to the Large Civil Aircraft Dispute.

On October 2, 2019, The United States won the largest arbitration award in World Trade Organization history in its dispute with the European Union over illegal subsidies to Airbus. This follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules. This decision demonstrates that massive EU corporate welfare has cost American aerospace companies hundreds of billions of dollars in lost revenue over the nearly 15 years of litigation.

The tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. Although USTR has the authority to apply a 100 percent tariff on affected products, at this time the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products. The U.S. has the authority to increase the tariffs at any time, or change the products affected. The articles covered by the additional tariffs vary from country to country. The only country subject to additional tariffs on textile articles is the United Kingdom.

Products of the United Kingdom described below are subject to additional import duties of 25 percent ad valorem.

6110.12.10	Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of Kashmir goats, wholly of cashmere
6110.20.20	Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesoi
6110.30.30	Sweaters, pullovers and similar articles, knitted or crocheted, of manmade fibers, nesoi
6202.99.15	Rec perf outwear, women's/girls' anoraks, wind-breakers & similar articles, not k/c, tex mats (not wool, cotton or mmf), cont < 70% by wt of silk
6202.99.80	Women's orgirls' anoraks, wind-breakers & similar articles, not k/c, of tex mats (not wool, cotton or mmf), cont < 70% by wt of silk
6203.11.60	Men's or boys' suits of wool, not knitted or crocheted, nesoi, of wool yarn with average fiber diameter of 18.5 micron or less
6203.11.90	Men's or boys' suits of wool or fine animal hair, not knitted or crocheted, nesoi
6203.19.30	Men's or boys' suits, of artificial fibers, nesoi, not knitted or crocheted
6203.19.90	Men's or boys' suits, of textile mats(except wool, cotton or mmf), containing under 70% by weight of silk or silk waste, not knit or croch
6208.21.00	Women's or girls' nightdresses and pajamas, not knitted or crocheted, of cotton
6211.12.40	Women's or girls' swimwear, of textile materials(except mmf), containing 70% or more by weight of silk or silk waste, not knit or crocheted
6211.12.80	Women's or girls' swimwear, of textile materials(except mmf), containing under 70% by weight of silk or silk waste, not knit or crocheted
6301.30.00	Blankets (other than electric blankets) and traveling rugs, of cotton
6301.90.00	Blankets and traveling rugs, nesoi
6302.21.50	Bed linen, not knit or crocheted, printed, of cotton, cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped
6302.21.90	Bed linen, not knit or croc, printed, of cotton, not cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped

The effective date of the additional duties is October 18, 2019.

The award of $7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award. The Arbitrator calculated this amount based on WTO findings that EU launch aid for Airbus is causing significant lost sales of Boeing large civil aircraft, as well as impeding exports of Boeing large aircraft to the EU, Australia, China, Korea, Singapore, and UAE markets. Under WTO rules, the Arbitrator’s decision is final and not subject to appeal.

Air Force Boot Contract Awarded

Belleville Shoe Co., Belleville, Illinois, has been awarded a maximum $12,524,036 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for Air Force temperate weather, Coyote boots. This was a competitive acquisition with two responses received. This is a one-year base contract with three one-year option periods. Location of performance is Illinois, with an Oct. 10, 2020, performance completion date. Using customer is Air Force. Type of appropriation is fiscal 2019 through 2020 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1208).

Carbon Fiber FTZ Approved for Export Only

On June 24, 2019, the Foreign-Trade Zone Board published in the Federal Register (84 FR 29496) Notification of Proposed Production Activity; Teijin Carbon Fibers, Inc. (Polyacrylonitrile-Based Carbon Fiber); Greenwood, South Carolina

Production under FTZ procedures will exempt TCF 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, TCF wanted to able to choose the duty rate during customs entry procedures that applies to carbon fiber (duty free).

On October 11, 2019, the Foreign-Trade Zone Board published in the Federal Register (84 FR 54837) Foreign-Trade Zone (FTZ) 38— Spartanburg County, South Carolina; Authorization of Limited Production Activity; Teijin Carbon Fibers, Inc. (Polyacrylonitrile-Based Carbon Fiber); Greenwood, South Carolina.

The Board authorized the production activity described in the notification on a limited basis, subject to a restriction requiring that all foreign status polyacrylonitrile (PAN) fiber admitted for production activity must bere-exported (entry for U.S. consumption was not authorized).

This is consistent with earlier FTZ filings relating to carbon fiber approved for export only.

Monday is Columbus Day in the U.S.

Monday, October 14th, is Columbus Day, a federal holiday in the United States. National, State, and local government offices will be closed. Observance of the holiday by the private sector varies from region to region.

Columbus and the Last Hope of Mankind

"We do not read even of the discovery of this continent, without feeling something of a personal interest in the event; without being reminded how much it has affected our own fortunes and our own existence. It would be still more unnatural for us, therefore, than for others, to contemplate with unaffected minds that interesting, I may say that most touching and pathetic scene, when the great discoverer of America stood on the deck of his shattered bark, the shades of night falling on the sea, yet no man sleeping; tossed on the billows of an unknown ocean, yet the stronger billows of alternate hope and despair tossing his own troubled thoughts; extending forward his harassed frame, straining westward his anxious and eager eyes, till Heaven at last granted him a moment of rapture and ecstasy, in blessing his vision with the sight of the unknown world." -- Daniel Webster, First Bunker Hill Monument Oration, 1825

In Boston we are surrounded by familiar sights -- Old North Church, the Old State House, Old South Meeting House, and the other stops on the Freedom Trail -- that remind us of Boston's unique Revolutionary War history. At 243 years distance from 1775, we are nearly two-and-a–half centuries removed from the beginning of the American War of Independence. In like manner, 1775 was a bit more than two-and-a-half centuries (283 years to be precise) removed from Columbus' discovery of the New World. Independence and the Revolutionary War mark not the beginning, but the halfway point in the history of European civilization in America.

In his remarks, quoted above, Mr. Webster, on the 50th anniversary of the Battle of Bunker Hill, traced the origins of the United States not to the Pilgrims and Plymouth Rock (although he mentions them in the oration), nor to the earlier English settlement of Virginia (not even mentioned by Webster), but to Christopher Columbus and his first "sight of the unknown world."

Others came here earlier -- possibly the Vikings, maybe other Europeans, and certainly the American Indians who arrived most probably from Asia by land-bridge to Alaska. But Webster -- and many of us concur -- begins our history with Columbus. All month we celebrate Italian-American Heritage and we celebrate the brave and persevering Italian navigator who opened the way for immigrants from every nation to settle in this New World and create the United States that remains, to quote again from Webster's speech, "the last hope of mankind." This is a phrase that will be echoed by Abraham Lincoln in his December 1862 Annual Message to Congress ("the last best, hope of earth") and Ronald Reagan in his January 1974 "We Will Be a City on a Hill" speech ("the last best hope of man on earth"). God willing America shall continue for many years as a beacon of liberty.

USITC report U.S. SME Exports: Trade-related Barriers Affecting Exports of U.S. Small and Medium-sized Enterprises to the United Kingdom

On October 4, 2019, the U.S. International Trade Commission released Inv. No. 332-569, Publication 4953, U.S. SME Exports: Trade-related Barriers Affecting Exports of U.S. Small and Medium-sized Enterprises to the United Kingdom

The report focuses on barriers identified by SMEs that hinder their ability to export to the UK. The USITC collected primary qualitative information and data to analyze both tariff and nontariff measures that may affect U.S. SME exports to the UK.  The report includes suggestions from SMEs and relevant literature for actions that would help address some of the identified barriers and enhance the participation of U.S. SMEs in U.S.-UK trade.

Main Findings:

• SMEs believe they are particularly affected by a number of specific crosscutting trade-related barriers imposed by a European Union (EU) or UK government law or policy; these include tariffs and taxes, customs procedures, intellectual property measures, and temporary entry provisions.  Further, SMEs noted various market-related barriers that they perceive as affecting their ability to export to the UK market, including logistical and finance-related issues, and difficulties in entering or participating in the UK market.


• Standards, technical regulations, and conformity assessment procedures are most often cited by SMEs as limiting their exports to the UK.  The most frequently cited SME concern is that the UK often does not recognize the standards set by U.S. standards bodies, which forces many U.S. firms to seek dual U.S. and UK certifications before they can export their products.


• SMEs producing manufactured goods reportedly face numerous regulatory measures related to standards and regulations, which include labeling, licensing, and certification.  U.S. agrifood SMEs also identified a variety of nontariff barriers that they face in the UK with respect to labeling requirements, sanitary and phytosanitary (SPS) requirements, geographical indications and wine names, packaging rules, food safety requirements, and certifications.


• There are limited trade-related barriers for U.S. service exports to the UK.  However, the largest hardships U.S. SMEs engaged in the professional services industry say they face are temporary entry provisions, and licensing and credential issues. SMEs that export computer services reportedly encounter issues related to data protection and privacy laws, cybersecurity, and customs requirements.

Air Force on schedule with new uniform issue timeline

Trainees entering into Basic Military Training, or BMT, at the 37th Training Wing this week are the first group to be issued the new Operational Camouflage Pattern, or OCP, uniforms.

After taking Airmen feedback into consideration, the uniform board members said they chose the OCP for the improved fit and comfort and so that they will blend in with their soldier counterparts’ uniforms in the joint environments, according to Cooper.

When Air Force officials announced last year they are adopting the Army OCP as the official utility uniform, they developed a three-year roll-out timeline across the force for the entire change over. This week puts them on target for issuing to the newest members.

“Each trainee is issued four sets of uniforms with their initial issue,” said Bernadette Cline, clothing issue supervisor. “Trainees who are here in ABUs (Airmen Battle Uniforms) will continue to wear them throughout their time here, and will be replaced when they get their clothing allowance.”

The 502nd Logistics Readiness Squadron Initial Issue Clothing outfits nearly 33,000 BMT trainees every year and maintains more than 330,000 clothing line items.

“We partner with Defense Logistics Agency, who provides the clothing items upfront to be issued,” said Donald Cooper, Air Force initial clothing issue chief. “Then we warehouse and issue to the individuals’ size-specific clothing.”

The OCP was chosen because its form will allow airmen to do their jobs easier, it fits in alongside soldiers in the field and functions well in the joint environment.

“Right now, if someone deploys, they’ll get it issued,” Cline said, “Now that everyone is converting over to this uniform, they [the trainees] already have the uniform to work and deploy in.”

Following the timeline, the OCP should now be available online for purchase as well.

The next mandatory change listed on the timeline, to take place by June 1, 2020, will be the Airmen’s boots, socks, T-shirts, U.S. Flag and officer ranks to the spice brown or tan color.

Switching from two different types of utility uniforms to just one, multifunction uniform could also simplify life for the airmen.

“I think the biggest value is going to be the thought that they aren’t required to have two uniforms anymore once they convert to a uniform that is for deployment and day-to-day work,’” Cooper said.

For more information on uniform guidance, visit https://www.afpc.af.mil/Career-Management/Dress-and-Appearance/.

IKEA Recalls Infant Bibs Due to Choking Hazard

Description: This recall involves the MATVRÅ bibs for infants sold in a two pack with one blue and one red bib with a snap at the back of the neck. The blue bib has a green seam along the outside with white polka dots. The red bib has a yellow seam along the outside with red polka dots. MATVRA, IKEA and the IKEA logo are printed on a white tag on the back of the bib.

Remedy: Consumers should immediately stop using the recalled bibs and return them to any IKEA store for a full refund.

Incidents/Injuries: The firm received two reports of the snaps on the bibs detaching. Neither incident occurred in the United States. No injuries have been reported.

Sold At: Exclusively at IKEA stores nationwide and online at www.ikea-usa.com from August 2019 through September 2019 for about $2.

Importer(s): IKEA Supply AG, of Switzerland

Distributor(s): IKEA Supply AG, of Switzerland

Manufactured In: Vietnam

Recall number: 20-008

MORE INFO AND PHOTOS.

Army recruits receive American-made athletic footwear at basic training for first time

A new fiscal new marked the initial issue of American-made athletic footwear to new Army recruits at Ft. Benning, Georgia Oct. 1, thanks to Defense Logistics Agency Troop Support.

Approximately 134 recruits received the shoes, along with other uniform items part of the organizational clothing and individual equipment kit. Recruits at Ft. Leonard Wood, Missouri also received athletic footwear this week, with recruits at Ft. Jackson, South Carolina and Ft. Sill, Oklahoma to receive the new shoes starting Oct. 7.

During the issuance process recruits are fitted for size, and provided items are scanned with radio-frequency identification technology. This system allows DLA Troop Support’s Clothing and Textiles supply chain to receive accurate inventory information directly from the recruit center’s issue line, customer relationship management supervisor Monique Williams explained.

C&T will outfit nearly 19,000 new soldiers at all four RTCs with athletic footwear by the end of the year.

DLA has been working with its industry and service partners for years gearing up for the roll-out, and overall athletic footwear program. Air Force recruits at Joint Base San Antonio-Lackland, Texas were the first to receive athletic footwear in January.

U.S. to Impose 25% Tariff on Cashmere Sweaters and Wool Suits from the United Kingdom

On October 2, 2019, The United States won the largest arbitration award in World Trade Organization history in its dispute with the European Union over illegal subsidies to Airbus. This follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules. This decision demonstrates that massive EU corporate welfare has cost American aerospace companies hundreds of billions of dollars in lost revenue over the nearly 15 years of litigation.

The tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. Although USTR has the authority to apply a 100 percent tariff on affected products, at this time the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products. The U.S. has the authority to increase the tariffs at any time, or change the products affected. The articles covered by the additional tariffs vary from country to country. The only country subject to additional tariffs on textile articles is the United Kingdom.

Products of the United Kingdom described below are subject to additional import duties of 25 percent ad valorem.

6110.12.10	Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of Kashmir goats, wholly of cashmere
6110.20.20	Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesoi
6110.30.30	Sweaters, pullovers and similar articles, knitted or crocheted, of manmade fibers, nesoi
6202.99.15	Rec perf outwear, women's/girls' anoraks, wind-breakers & similar articles, not k/c, tex mats (not wool, cotton or mmf), cont < 70% by wt of silk
6202.99.80	Women's orgirls' anoraks, wind-breakers & similar articles, not k/c, of tex mats (not wool, cotton or mmf), cont < 70% by wt of silk
6203.11.60	Men's or boys' suits of wool, not knitted or crocheted, nesoi, of wool yarn with average fiber diameter of 18.5 micron or less
6203.11.90	Men's or boys' suits of wool or fine animal hair, not knitted or crocheted, nesoi
6203.19.30	Men's or boys' suits, of artificial fibers, nesoi, not knitted or crocheted
6203.19.90	Men's or boys' suits, of textile mats(except wool, cotton or mmf), containing under 70% by weight of silk or silk waste, not knit or croch
6208.21.00	Women's or girls' nightdresses and pajamas, not knitted or crocheted, of cotton
6211.12.40	Women's or girls' swimwear, of textile materials(except mmf), containing 70% or more by weight of silk or silk waste, not knit or crocheted
6211.12.80	Women's or girls' swimwear, of textile materials(except mmf), containing under 70% by weight of silk or silk waste, not knit or crocheted
6301.30.00	Blankets (other than electric blankets) and traveling rugs, of cotton
6301.90.00	Blankets and traveling rugs, nesoi
6302.21.50	Bed linen, not knit or crocheted, printed, of cotton, cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped
6302.21.90	Bed linen, not knit or croc, printed, of cotton, not cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped

The effective date of the additional duties is October 18, 2019.

For the complete list of articles the U.S. will be imposing additional duties on CLICK HERE.

The award of $7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award. The Arbitrator calculated this amount based on WTO findings that EU launch aid for Airbus is causing significant lost sales of Boeing large civil aircraft, as well as impeding exports of Boeing large aircraft to the EU, Australia, China, Korea, Singapore, and UAE markets. Under WTO rules, the Arbitrator’s decision is final and not subject to appeal.

Proposed Revocation of One Ruling Letter and Revocation of Treatment Relating to The Country of Origin of Certain Laminated Fabrics

In March 15, 2012, Binding Ruling Letter HQ H192977, CBP determined that the country of origin of the fabric styles, identified as Styles Savoy and Taffeta, is China, and the country of origin of the fabric styles, identified as Styles Luna and Dahlia, is India. CBP has reviewed HQ H192977 and has determined that ruling letter to be in error. It is now CBP's position that the country of origin of the above-referenced styles, identified as Styles Savoy, Taffeta, Luna and Dahlia, is England. Before taking this action, consideration will be given to any written comments received by November 1, 2019.

Style Savoy is a bonded fabric consisting of a face fabric woven in China and printed with a striped pattern, laminated to a backing woven in Pakistan and an ethylene vinyl acetate adhesive multi-layer film made in Italy.

Style Taffeta is a bonded fabric consisting of a face fabric woven in China and printed with flock in a floral pattern that has been laminated to woven backing from Pakistan and an ethylene vinyl acetate adhesive multi-layer film made in Italy.

Style Luna is a bonded fabric consisting of jacquard face fabric woven in India and laminated to a plain-woven backing made in Pakistan laminated to a backing woven and an ethylene vinyl acetate adhesive multi-layer film made in Italy.

Style Dahlia is a bonded fabric consisting of a jacquard face fabric woven in India and laminated to a plain-woven backing from Pakistan and an ethylene vinyl acetate adhesive multi-layer film made in Italy.

Based on the information submitted, the greige fabrics are sent to England, where they are printed, laminated together with the adhesive film, treated with a non-visible coating, trimmed and cut to width into long rectangular pieces of fabric with right angled corners. The fabrics are then wound onto rolls for export into the United States for the manufacture of window blinds.

In determining country of origin is England, Customs stated: "The fabrics ... are composed of three separately manufactured components (the face fabrics, the back fabrics and the adhesive film), assembled together. The term “wholly assembled,” ... means all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. ... the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, lamination, sewing, or the use of fasteners). In the instant case, the face and back fabrics, as well as the adhesive film, preexisted in essentially the same condition prior to being laminated together in England. Therefore, we find that the fabrics at issue meet the above-discussed definition of wholly assembled. Since the fabrics were wholly assembled in England, we find that England is the country of origin for fabric styles Savoy, Taffeta, Luna and Dahlia."

CBP Issues Detention Orders against Apparel Company Suspected of Using Forced Labor

On September 30, U.S. Customs and Border Protection ("CBP") issued five Withhold Release Orders covering five different products, imported from five different countries. This action was based on information obtained and reviewed by CBP that indicates that the products are produced, in whole or in part, using forced labor.

Included in the list was garments produced by Hetian Taida Apparel Co., Ltd. in Xinjiang, China; produced with prison or forced labor.

Under U.S. law, it is illegal to import goods into the U.S that are made wholly or in part by forced labor, which includes convict labor, indentured labor, and forced or indentured child labor. When sufficient information is available, CBP may detain goods believed to have been produced with forced labor. Importers have the opportunity to either re-export the detained shipments at any time or to submit information to CBP demonstrating that the goods are not in violation.