Thursday, December 31, 2020

USTR Modifies $7.5 Billion Tariff Action Relating to Illegal Airbus Subsidies, Wool and Cashmere Articles from UK Remain on List

On December 30, 2020, the United States Trade Representative issued a modification to the list of products subject to WTO-authorized additional duties in the United States' successful WTO challenge to subsidies for large civil aircraft provided by the European Union, France, Germany, Spain, and the United Kingdom. The U.S. Trade Representative has determined that the additional products should be goods of France and Germany are ustified, as these countries have provided the greatest level of WTO-inconsistent large civil aircraft subsidies. The additional articles subject to this action are certain wine and spirits and certain aircraft components.

The modifications announced yesterday will take effect on January 12, 2021.

Currently textile products of the United Kingdom described below are subject to additional import duties of 25 percent ad valorem, there is no change to this list:

HTSSubheading Product Description
6110.11.00Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of wool
6110.12.10Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of Kashmir goats, wholly of cashmere
6110.20.20Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesoi*
6110.30.30Sweaters, pullovers and similar articles, knitted or crocheted, of man-made fibers, nesoi
6202.99.15Recreational performance outwear, women's/girls' anoraks, wind-breakers & similar articles, not knitted or crocheted, of other textile materials (not wool, cotton or MMF), containing <70 percent by weight of silk
6202.99.80Women's/girls' anoraks, wind-breakers & similar articles, not knitted or crocheted, of other texile materials (not wool, cotton or MMF), containing <70% by weight of silk,
6203.11.60Men's or boys' suits of wool, not knitted or crocheted, nesoi, of wool yarn with average fiber diameter of 18.5 micron or less
6203.11.90Men's or boys' suits of wool or fine animal hair, not knitted or crocheted, nesoi
6203.19.30Men's or boys' suits, of artificial fibers, nesoi, not knitted or crocheted
6203.19.90Men's or boys' suits, of textile mats(except wool, cotton or MMF), containing under 70 percent by weight of silk or silk waste, not knit or crocheted
6208.21.00Women's or girls' nightdresses and pajamas, not knitted or crocheted, of cotton
6211.12.40Women's or girls' swimwear, of textile materials(except MMF), containing 70% or more by weight of silk or silk waste, not knit or crocheted
6211.12.80Women's or girls' swimwear, of textile materials(except MMF), containing under 70% by weight of silk or silk waste, not knit or crocheted
6301.30.00Blankets (other than electric blankets) and traveling rugs, of cotton
6301.90.00Blankets and traveling rugs, nesoi
6302.21.50Bed linen, not knit or crocheted, printed, of cotton, cont any embroidery, lace, braid, edging, trimming, piping or applique work, n/napped
6302.21.90Bed linen, not knit or croc, printed, of cotton, not cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped

* NESOI means Not Elsewhere Specified or Included.

BACKGROUND
In October 2019, the WTO authorized the United States to take $7.5 billion in countermeasures following the largest victory in WTO history in the long-running dispute against the EU, France, Germany, Spain, and the United Kingdom regarding their illegal subsidies for the Airbus consortium. Following a notice and comment process, on October 9, 2019, the United States imposed additional tariffs of up to 25 percent on products of current and former EU member states with a trade value of approximately $7.5 billion. The section 301 statute provides for periodic review and modification of the tariff action.

The details of the modification are set out in a Notice that will be published in the Federal Register.

Wednesday, December 30, 2020

Target Recalls Infant Rompers Due to Choking Hazard

Name of product:
Cloud Island infant rompers
Hazard:

The snaps can break or detach from the rompers, posing a choking, laceration and pinching hazards to children.

Remedy:
Refund
Recall date:
December 30, 2020
Units:

About 299,000

Consumer Contact:

Target at 800-440-0680 from 7 a.m. to 8 p.m. CT, daily or online at www.target.com and click on “Recalls” at the bottom of the page, then on “Clothing” for more information.  Consumers can also click the “Product Recalls” tab on Target’s Facebook page for more information.

Recall Details

Description:

This recall includes the Cloud Island Waterfront Baby Boutique Romper, Cloud Island Little Peanut and True Navy Rompers, Cloud Island Little Wildflower and Joyful Mint Rompers, Cloud Island Oh Honeybee and Pink Rompers, and Cloud Island Floral Fields and Mint Rompers.  The rompers were sold in sizes newborn to 12M.  The product item number is printed on the white tag inside of the rompers.  Rompers with the following product item numbers are included in the recall:

 

Item Number

Item Description

206-05-1379

Cloud Island Waterfront Baby Boutique Romper - Newborn

206-05-1380

Cloud Island Waterfront Baby Boutique Romper - 0-3 Months

206-05-1381

Cloud Island Waterfront Baby Boutique Romper- 3-6 Months

206-05-1382

Cloud Island Waterfront Baby Boutique Romper - 6-9 Months

206-05-1383

Cloud Island Waterfront Baby Boutique Romper - 12 Months

206-05-1384

Cloud Island Little Peanut and True Navy Rompers Newborn

206-05-1385

Cloud Island Little Peanut and True Navy Rompers 0-3 Months

206-05-1386

Cloud Island Little Peanut and True Navy Rompers 3-6 Months

206-05-1387

Cloud Island Little Peanut and True Navy Rompers 6-9 Months

206-05-1388

Cloud Island Little Peanut and True Navy Rompers 12 Months

206-05-1394

Cloud Island Little Wildflower and Joyful Mint Rompers - Newborn

206-05-1395

Cloud Island Little Wildflower and Joyful Mint Rompers - 0-3 Months

206-05-1396

Cloud Island Little Wildflower and Joyful Mint Rompers - 3-6 Months

206-05-1397

Cloud Island Little Wildflower and Joyful Mint Rompers - 6-9 Months

206-05-1398

Cloud Island Little Wildflower and Joyful Mint Rompers - 12 Months

206-05-3740

Cloud Island Oh Honeybee and Pink Rompers - Newborn

206-05-3741

Cloud Island Oh Honeybee and Pink Rompers - 0-3 Months

206-05-3742

Cloud Island Oh Honeybee and Pink Rompers - 3-6 Months

206-05-3743

Cloud Island Oh Honeybee and Pink Rompers - 6-9 Months

206-05-3744

Cloud Island Oh Honeybee and Pink Rompers - 12 Months

206-05-5920

Cloud Island Floral Fields and Mint Rompers Newborn

206-05-5921

Cloud Island Floral Fields and Mint Rompers 0-3 Months

206-05-5922

Cloud Island Floral Fields and Mint Rompers 3-6 Months

206-05-5923

Cloud Island Floral Fields and Mint Rompers 6-9 Months

206-05-5924

Cloud Island Floral Fields and Mint Rompers 12 Months

 

 
Remedy:

Consumers should immediately take the recalled infant rompers away from children and return them to any Target Store for a full refund.  Consumers that purchased the rompers on Target.com can contact Target to receive a prepaid return label to return the rompers.

Incidents/Injuries:

The firm has received 16 reports of the snaps breaking, detaching, or missing from the rompers including one report of scratches and one report of a child being pinched.

Sold At:

Target stores nationwide and online at Target.com, GoogleExpress.com and Shipt.com from July 2019 through October 2020 for about $10 for a single romper and $11 for 2-pack rompers set.

Importer(s):

Target Corp., of Minneapolis, Minn.

Manufactured In:
China and Vietnam
Recall number:
21-061

More information and photos HERE.

Target Recalls Infant-Toddler Girl’s One-Piece Rashguard Swimsuits Due to Choking Hazard

Name of product:
Cat & Jack Infant-Toddler One-Piece Rashguard Swimsuits
Hazard:

The snaps can break or detach from the suits, posing choking and laceration hazards to children.

Remedy:
Refund
Recall date:
December 30, 2020
Units:

About 181,000

Consumer Contact:

Target at 800-440-0680 from 7 a.m. to 8 p.m. CT daily or online at www.target.com and click on “Recalls” at the bottom of the page, then on “Clothing” for more information.  Consumers can also click the “Product Recalls” tab on Target’s Facebook page for more information.

Recall Details

Description:

This recall includes the Cat & Jack “Summer Blue Lemon,” “Coral Icon Story Hawaiian,” and “Moxie Peach Lemon” one-piece Rashguards infant-toddler swimsuits in sizes 12M to 5T.  The Rashguards have snaps that can break or detach.  The product’s item number is located on the white tag inside of the suit.  Products with the following item numbers are included in the recall:

 

Item Number

Product Name

328-04-0574

Cat & Jack Summer Blue Lemon One-Piece Rashguard 12M

328-04-0575

Cat & Jack Summer Blue Lemon One-Piece Rashguard 18M

328-04-0576

Cat & Jack Summer Blue Lemon One-Piece Rashguard 2T

328-04-0577

Cat & Jack Summer Blue Lemon One-Piece Rashguard 3T

328-04-0578

Cat & Jack Summer Blue Lemon One-Piece Rashguard 4T

328-04-0579

Cat & Jack Summer Blue Lemon One-Piece Rashguard 5T

328-04-0628

Cat & Jack Coral Icon Story Hawaiian One-Piece Rashguard 12M

328-04-0629

Cat & Jack Coral Icon Story Hawaiian One-Piece Rashguard 18M

328-04-0630

Cat & Jack Coral Icon Story Hawaiian One-Piece Rashguard 2T

328-04-0631

Cat & Jack Coral Icon Story Hawaiian One-Piece Rashguard 3T

328-04-0632

Cat & Jack Coral Icon Story Hawaiian One-Piece Rashguard 4T

328-04-0633

Cat & Jack Coral Icon Story Hawaiian One-Piece Rashguard 5T

328-04-0664

Cat & Jack Moxie Peach Lemon One-Piece Rashguard 12M

328-04-0665

Cat & Jack Moxie Peach Lemon One-Piece Rashguard 18M

328-04-0666

Cat & Jack Moxie Peach Lemon One-Piece Rashguard 2T

328-04-0667

Cat & Jack Moxie Peach Lemon One-Piece Rashguard 3T

328-04-0668

Cat & Jack Moxie Peach Lemon One-Piece Rashguard 4T

328-04-0669

Cat & Jack Moxie Peach Lemon One-Piece Rashguard 5T

 
Remedy:

Consumers should immediately take the recalled one-piece Rashguard swimsuits away from children and return them to any Target Store for a full refund.  Consumers that purchased the one-piece Rashguard swimsuit on Target.com can contact Target to receive a prepaid return label to return the swimsuit.

Incidents/Injuries:

The firm has received 27 reports of the snaps breaking or detaching, including one report of a laceration. 

Sold At:

Target stores nationwide and online at Target.com from December 2019 through October 2020 for about $15.

Importer(s):

Target Corp., of Minneapolis, Minn.

Manufactured In:
Vietnam
Recall number:
21-062

More information and photos HERE.

Monday, December 28, 2020

U.S. Military and Industry Strengthen Partnerships to Support Warfighters

On December 17, 2020, Defense Logistics Agency Director Navy Vice Adm. Michelle Skubic and other agency senior leaders hosted a Demand Forecast webinar with leaders from 11 industry associations to discuss anticipated 2021 contract requirements on behalf of the military services and Whole of Government agencies that DLA supports.

Since 2018, DLA has held an industry day to provide corporate and supply chain demand forecast data to industry participants.

Due to COVID-19 restrictions, this year’s forum was held virtually. DLA leaders requested that industry association participants disseminate the information to their members – which include many of DLA’s commercial vendors – so that the industrial base can best posture to meet the military’s needs.

DLA Logistics Operations Director Air Force Maj. Gen. Allan Day said 2021 requirements from the military services will likely mirror 2019 rather than 2020. He briefed participants on projected sales trends by supply chains including hardware; clothing and textiles; construction and equipment; medical and subsistence; and energy.

Over a dozen representatives attended from the Aerospace Industries Association, National Defense Industrial Association, American Petroleum Institute, National Council of Textile Organizations, American Apparel & Footwear Association, Coalition for Government Procurement, National Association of Manufacturers, SourceAmerica, National Defense Transportation Association, National Institute for the Blind, and the Professional Services Council.

A copy of the presentation can be found on the Demand Forecast page.

Consolidated Appropriations Act Includes Upholstered Furniture Flammability Standard

SEC. 2101. COVID–19 regulatory relief and work from home safety act.

(a) Short title.—This title may be cited as the “COVID–19 Regulatory Relief and Work From Home Safety Act”.

(b) Definitions.—In this Act—

(1) the term “bedding product” means—

(A) an item that is used for sleeping or sleep-related purposes; or

(B) any component or accessory with respect to an item described in subparagraph (A), without regard to whether the component or accessory, as applicable, is used—

(i) alone; or

(ii) along with, or contained within, that item;

(2) the term “California standard” means the standard set forth by the Bureau of Electronic and Appliance Repair, Home Furnishings and Thermal Insulation of the Department of Consumer Affairs of the State of California in Technical Bulletin 117–2013, entitled “Requirements, Test Procedure and Apparatus for Testing the Smolder Resistance of Materials Used in Upholstered Furniture”, originally published June 2013, as in effect on the date of enactment of this Act;

(3) the terms “foundation” and “mattress” have the meanings given those terms in section 1633.2 of title 16, Code of Federal Regulations, as in effect on the date of enactment of this Act; and

(4) the term “upholstered furniture”—

(A) means an article of seating furniture that—

(i) is intended for indoor use;

(ii) is movable or stationary;

(iii) is constructed with an upholstered seat, back, or arm;

(iv) is—

(I) made or sold with a cushion or pillow, without regard to whether that cushion or pillow, as applicable, is attached or detached with respect to the article of furniture; or

(II) stuffed or filled, or able to be stuffed or filled, in whole or in part, with any material, including a substance or material that is hidden or concealed by fabric or another covering, including a cushion or pillow belonging to, or forming a part of, the article of furniture; and

(v) together with the structural units of the article of furniture, any filling material, and the container and covering with respect to those structural units and that filling material, can be used as a support for the body of an individual, or the limbs and feet of an individual, when the individual sits in an upright or reclining position;

(B) includes an article of furniture that is intended for use by a child; and

(C) does not include—

(i) a mattress;

(ii) a foundation;

(iii) any bedding product; or

(iv) furniture that is used exclusively for the purpose of physical fitness and exercise.

(c) Adoption of standard.—

(1) IN GENERAL.—Beginning on the date that is 180 days after the date of enactment of this Act, and except as provided in paragraph (2), the California standard shall be considered to be a flammability standard promulgated by the Consumer Product Safety Commission under section 4 of the Flammable Fabrics Act (15 U.S.C. 1193).

(2) TESTING AND CERTIFICATION.—A fabric, related material, or product to which the California standard applies as a result of paragraph (1) shall not be subject to section 14(a) of the Consumer Product Safety Act (15 U.S.C. 2063(a)) with respect to that standard.

(3) CERTIFICATION LABEL.—Each manufacturer of a product that is subject to the California standard as a result of paragraph (1) shall include the statement “Complies with U.S. CPSC requirements for upholstered furniture flammability” on a permanent label located on the product, which shall be considered to be a certification that the product complies with that standard.

(d) Preemption.—

(1) IN GENERAL.—Notwithstanding section 16 of the Flammable Fabrics Act (15 U.S.C. 1203) and section 231 of the Consumer Product Safety Improvement Act of 2008 (15 U.S.C. 2051 note), and except as provided in subparagraphs (B) and (C) of paragraph (2), no State or any political subdivision of a State may establish or continue in effect any provision of a flammability law, regulation, code, standard, or requirement that is designed to protect against the risk of occurrence of fire, or to slow or prevent the spread of fire, with respect to upholstered furniture.

(2) PRESERVATION OF CERTAIN STATE LAW.—Nothing in this Act or the Flammable Fabrics Act (15 U.S.C. 1191 et seq.) may be construed to preempt or otherwise affect—

(A) any State or local law, regulation, code, standard, or requirement that—

(i) concerns health risks associated with upholstered furniture; and

(ii) is not designed to protect against the risk of occurrence of fire, or to slow or prevent the spread of fire, with respect to upholstered furniture;

(B) sections 1374 through 1374.3 of title 4, California Code of Regulations (except for subsections (b) and (c) of section 1374 of that title), as in effect on the date of enactment of this Act; or

(C) the California standard.

Tariff Provisions in the Miscellaneous Tariff Bill Act of 2018 due to Expire on December 31, 2020

This notice is to inform the Trade that the duty suspensions and reductions, pursuant to H.R. 4813, The Miscellaneous Tariff Bill Act of 2018 (MTB), for goods entered or withdrawn from a warehouse for consumption on or after October 13, 2018, will expire on December 31, 2020.

On September 13, 2018, the President signed into law the H.R. 4318. This MTB amended the Harmonized Tariff Schedule of the United States (HTSUS) to suspend and reduce tariffs on 1,660 products (see attachment) through December 31, 2020. The amendments are pursuant to the new process established in the American Manufacturing and Competitiveness Act of 2016 (H.R. 4923 / P.L. 114-159).

The MTB provisions expiring on December 31, 2020, are in the HTSUS subchapter II to chapter 99.

The U.S. Customs and Border Protection (CBP) Office of Trade, Trade Transformation Office (TTO) has programmed in the Automated Commercial Environment (ACE) the change to be effective on December 31, 2020, at 11:59 pm, EST.

Agathon Associates Comments on Proposal for Continuing Education for Customs Brokers

SUMMARY: U.S. Customs and Border Protection (CBP) is considering the amendment of its regulations to mandate continuing education for licensed customs brokers. CBP is seeking comments on a potential framework of continuing education requirements for licensed customs brokers in order to assess the current situation among members of the customs broker industry and analyze the potential impact of such a framework on customs brokers.

Agathon Associates submitted the following comments.

I am a Licensed Customs Broker (License # 30179). I have been licensed since June 4, 2014.

I support the proposal for continuing education requirements for brokers, provided the requirements do not impose a significant financial burden on small business such as mine.

I am a consultant in international trade, and I acquired my license as a credential to validate my competence to clients, potential clients, and CBP officers. My business model is to examine a client's current import activity and determine whether they are using to the correct HTSUS classifications, are otherwise in compliance with the regulations, and whether there are potential cost savings through use of free trade agreements, preference programs, the miscellaneous tariff bill, foreign-trade ones, and, when they were in effect, Section 301 exclusions. In the course of my evaluation of their programs, I find errors which have resulted in under-payment or over-payment of duties. I also find misconceptions as to the rules for the various tariff mitigation provisions. I find errors and omissions due to (1) brokers relying on inaccurate information from a client who does not understand the regulation, (2) brokers relying on information from the exporter, who may understand the regulations in the exporting country, but not the U.S. regulations, and (3) brokers not keeping current on the ever-changing regulations.

I agree with CBP "that through government-provided, online education opportunities alone, an individual license holder can obtain 40 hours of continuing education over 3 years." While "Credit could be given to established corporate training, courses offered by customs brokers associations," as recognized by CBP, I strongly urge that any non-government-provided education by optional. (1) Non-governmental providers change considerable fees for their educational programs, which, if mandatory, would be a substantial burden on small business. (2) Education offered by non-government providers would not have the assurance of accuracy that government provided education would afford brokers. (3) Accepting non-government provided programs could risk the government appearing to favor some providers over others. (4) Mandatory education offered by non-government entities could result in small businesses paying their larger competitors for training. I am a broker in a small business and would be able to avail myself of internet-based training, however, for the reasons noted above, I strongly prefer to access government-provided training.

AAFA Calls for Retroactive Renewal of Essential Trade Programs

The American Apparel & Footwear Association has expressed disappointment and regret at inaction by Congress, leading to a lapse in two critical trade preference programs — the Generalized System of Preferences (GSP) and the Miscellaneous Tariff Bill (MTB) — imposing a tax increase on American workers, American consumers, and American businesses at a time when they can least afford it.

"Congress allowed the GSP and MTB programs, initiatives that have been supported for decades by overwhelming bipartisan majorities, to lapse. The cessation of these programs benefits no one but hurts many, at a time when they can least afford it," said AAFA president and CEO Steve Lamar.

Several Industry Organizations Urge USTR to Delay the Comment periods for its Vietnam 301 investigation

On October 8, 2020, the U.S. Trade Representative (USTR) announced that it had initiated two separate investigations—pursuant to Section 301 of the Trade Act of 1974—with respect to Vietnam’s trade with the United States. The USTR will review, in consultation with the Treasury Department, any practices that may have contributed to the alleged under valuation of Vietnam’s currency and thus may have impaired the competitiveness of U.S. products (by making them more expensive to foreign buyers). The USTR has requested consultations with the government of Vietnam, sought public comments on the investigations, and will hold virtual public hearing on December 29, 2020. Post-hearing rebuttal comments are due by January 7, 2021.

On December 16, 2020, the Department of the Treasury released Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, finding that Vietnam is a currency manipulator.

The release of this report occurred after the comment period deadline and deadline to appear at the December 29, 2020 hearing passed. Several industry organizations have requested USTR to reopen the comment period, to allow interested parties to request to appear at the hearing, and to delay the hearing and post-hearing comment deadline.

"This finding could have substantial impact on the ongoing investigation," said the interested parties, "Our view is that the law provides that interested parties that are engaged in administrative proceedings are entitled to a meaningful opportunity to be heard both under the Administrative Procedures Act (APA) and the Constitution. We therefore respectfully request an opportunity to comment on the highly relevant information contained in Treasury’s report."

The signatories organizations are:
Accessories Council
American Home Furnishings Alliance
American Apparel & Footwear Association
Consumer Technology Association
Council of Fashion Designers of America
Fashion Accessories Shippers Association
Fashion Jewelry & Accessories Trade Association
Footwear Distributors & Retailers of America
Gemini Shippers Association
Halloween Industry Association
Hardwood Federation
Home Furnishings Association
International Wood Products Association
Juvenile Products Manufactures Association
Outdoor Industry Association
National Foreign Trade Council
National Marine Manufacturers Association
National Retail Federation
Recreational Vehicle Industry Association
Retail Industry Leaders Association
Semiconductor Industry Association
Toy Association
Travel Goods Association
U.S. Chamber of Commerce

Wednesday, December 23, 2020

COVID-19 Related Goods: The U.S. Industry, Market, Trade, and Supply Chain Challenges

On December 22, 2020, The U.S. International Trade Commission (USITC) released a report on U.S. industries producing COVID-19 related goods and the supply chain challenges and constraints that impacted the availability of such goods.

Customs Issues Trade Statistics

CBP has the critical responsibility to enforce U.S. trade laws prior to merchandise arriving at U.S. ports of entry, once merchandise arrives at our ports, and even after merchandise is released into the U.S. marketplace. Among other critical mission sets, CBP is charged with balancing the facilitation of legitimate trade that supports economic growth with the duty to shield the American public and businesses from unsafe products, intellectual property theft, and unfair trade practices.

The below data is only a snapshot of CBP's critical trade mission. It summarizes CBP's revenue collection efforts; implementation of the recent trade remedies taken pursuant to Section 232 of the Trade Expansion Act of 1962 and Sections 201 and 301 of the Trade Act of 1974; and trade enforcement actions.

IMPORTS AND REVENUE COLLECTIONSFY 2017FY 2018FY 2019FY 2020
Total Import Value for Goods
$2.39 trillion$2.64 trillion$2.67 trillion$2.42 trillion
Total Entry Summaries33.2 million35.0 million35.5 million32.8 million
Total Duty Collected$34.6 billion$41.6 billion$71.9 billion$74.4 billion

TRADE REMEDY ENFORCEMENTIMPORTED PRODUCTSTOTAL DUTIES ASSESSED1
Section 201 Duty Assessment
Washing Machines2$236,454,002
Washing Machine Parts3$2,161,431
Solar Panels4$1,922,336,823
Section 232 Duty AssessmentAluminum5$2,312,853,926
Steel6$7,438,080,758
Section 301 Duty AssessmentChina7$72,207,869,575
EU8$930,873,309

TEMPORARY DEFERMENT OF DUTIES AND FEES FOR CERTAIN IMPORTERS DURING THE NATIONAL EMERGENCY CONCERNING THE COVID-19 OUTBREAK9, 10
Amount of estimated payments under extended deadlines$574,745,901
Number of importers requesting extended deadlines2,605

1As of December 16, 2020

2 Section 201 tariff-rate quotas for washing machines were effective February 7, 2018, for all countries except Canada and most Generalized System of Preferences (GSP) beneficiary countries (except Thailand).
3 Section 201 tariff rate quotas for washing machine parts were effective February 7, 2018, for all countries except Canada and most Generalized System of Preferences (GSP) beneficiary countries (except Thailand).
4 Section 201 duty requirements for solar cells and modules were effective February 7, 2018, for all countries except most Generalized System of Preferences (GSP) beneficiary countries (except Thailand and the Philippines).
5 Section 232 duty requirements for aluminum products were effective March 23, 2018, for most countries. As of June 1, 2018, Section 232 duty requirements for aluminum products are effective for all countries of origin except Argentina and Australia. As of May 20, 2019, Section 232 duty requirements for aluminum products are effective for all countries of origin except Argentina, Australia, Brazil, Canada, Mexico and South Korea.
6 Section 232 duty requirements for steel products were effective March 23, 2018, for most countries. As of June 1, 2018, Section 232 duty requirements for steel products are effective for all countries of origin except Argentina, Australia, Brazil, and South Korea. As of May 20, 2019, Section 232 duty requirements for steel products are effective for all countries of origin except Argentina, Australia, Brazil, Canada, Mexico and South Korea.
7 Section 301 duty requirements were effective July 6, 2018.
8 Section 301 duty requirements for certain products of the EU were effective October 9, 2019. The U.S. Trade Representative published in the Federal Register 84 FR 54245, a Notice of Determination and Action Pursuant to Section 301: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute. The notice announces the U.S. Trade Representative’s determination to impose additional duties on products of the EU or certain member states. The Large Civil Aircraft Section 301 duties only apply to products of the countries set forth in 84 FR 54245, and are based on the country of origin, not country of export.

9 As of May 19, 2020

10Under section 1318(a) of title 19, United States Code, the Secretary shall consider taking appropriate action to temporarily extend deadlines, for importers suffering significant financial hardship because of COVID-19, for the estimated payments described therein, other than those assessed pursuant to sections 1671, 1673, 1862, 2251, and 2411 of title 19, United States Code.

ICE probe leads to indictment of LA Fashion District wholesaler and 2 associates in schemes to avoid tariffs, launder drug money and avoid taxes

A federal grand jury has returned a 35-count indictment alleging that a Fashion District outfit was at the center of two schemes, one that avoided the payment of more than $10 million in customs duties on imported clothing, and a second “Black Market Peso Exchange” scheme in which the company laundered narcotics proceeds and failed to report on tax returns over $17 million derived from cash transactions.

The first scheme outlined in the indictment allegedly involves the avoidance of customs duties and tariffs by purchasing garments from overseas manufacturers, including from China, but then submitting false information to U.S. Customs and Border Protection (CBP) that understated the true value of the items being imported in the U.S. As a result, the import duties owed on the shipments were lowered. The indictment alleges that the defendants sent 515 individual wire transfers totaling $137,156,726 to pay overseas suppliers for undervalued garments. Overall, according to the indictment, CTJ imported goods that were undervalued by more than $62 million, causing approximately $10,269,068 in unpaid tariffs and duties that should have been paid to CBP. Some of this conduct occurred prior to authorities executing search warrants at CTJ and GLLR in 2014, but the indictment alleges that undervaluation resumed in 2018 and lasted until at least July 2020.

In the second scheme, the Rhews used CTJ “to receive large amounts of bulk United States currency, including from narcotics proceeds, as payment for outstanding merchandise orders from customers in Mexico and elsewhere,” according to the indictment. CTJ allegedly accepted large cash payments of up to $70,000 even after the law enforcement action targeted their businesses in 2014. The defendants failed to file currency transaction reports, which are required for any transaction involving more than $10,000 in cash, and they concealed the cash receipts from an accountant who prepared their taxes, which led the Rhews to fraudulently omit more than $17.6 million in gross sales from tax returns filed with the IRS, the indictment alleges.

Read more HERE.

Proposed Revocation of Tariff Classification Of Textile Backseat Automobile Organizers

In NY N087915, CBP classified the backseat automobile organizer in subheading 8708.99.81 (zero duty), HTSUS. In NY N018628, NY M80150, NYJ83474, NY H87607, NY G86716, NY H82730, NY G88263, NY G84567, and NY A87718, CBP classified the backseat automobile organizers in subheading 8708.99.80 (zero duty), HTSUS In NY 886254 and NY869451, CBP classified the backseat automobile organizers in 8708.99.50 (zero duty), HTSUS. Subheading 8708.99.81, HTSUS provides for“Parts and accessories of the motor vehicles of Headings 8701 to 8705: Other: Other: Other.” In NY C89303, CBP classified the backseat automobile organizers in 8708.29.50 (2.5% duty), HTSUS, which provides for“Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories of bodies (including cabs): Other: Other.”

CBP has reviewed NY N087915, NY N018628, NY M80150, NYJ83474, NY H87607, NY G86716, NY H82730, NY G88263, NY G84567, NY C89303, NY A87718, NY 886254, and NY 869451 and has determined the ruling letters to be in error. It is now CBP’s position that backseat automobile organizers are properly classified,in heading 6307, HTSUS, specifically in subheading 6307.90.98 (rate of duty 7%), HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other.”

Comments on this Proposed Revocation.must be received on or before January 15, 2021.

Country of Origin Marking of Products from the West Bank and Gaza

Today, U.S. Customs and Border Protection published a Federal Register Notice to ensure that country of origin markings for Israeli and Palestinian goods are consistent with the United States’ foreign policy approach. The notice establishes that producers within certain areas designated in the Oslo Accords and the Hebron Protocol must mark their goods as “Israel,” “Product of Israel,” or “Made in Israel” when exporting those goods to the United States. Parties that import these goods into the United States are responsible for ensuring compliance with the marking requirements.

CBP is publishing this Federal Register Notice (85 FR 83984) based upon guidance from the U.S. Department of State that the country of origin marking requirements for goods produced in certain areas of the West Bank be updated to reflect the fact that producers in these areas operate within the economic and administrative framework of Israel. Goods produced in areas of the West Bank where the Palestinian Authority maintains relevant authorities shall be marked as products of  “West Bank” and goods produced in Gaza shall be marked as products of  “Gaza.”  

This document notifies the public that, for country of origin marking purposes, imported goods produced in the West Bank, specifically in Area C under the Israeli-Palestinian Interim Agreement (the Oslo Accords), signed on September 28, 1995, and the area known as ‘‘H2’’ under the Israeli- Palestinian Protocol Concerning Redeployment in Hebron and Related Documents (the Hebron Protocol), signed January 17, 1997, must be marked to indicate their origin as ‘‘Israel,’’ ‘‘Product of Israel,’’ or ‘‘Made in Israel.’’ Goods produced in the West Bank, specifically in Areas A and B under the Oslo Accords and the area known as ‘‘H1’’ under the 1997 Hebron Protocol, must be marked to indicate their origin as ‘‘West Bank,’’ ‘‘Product of West Bank,’’ or ‘‘Made in West Bank.’’ Goods produced in Gaza must be marked to indicate their origin as ‘‘Gaza,’’ ‘‘Product of Gaza,’’ ‘‘Made in Gaza,’’ ‘‘Gaza Strip,’’ ‘‘Product of Gaza Strip,’’ or ‘‘Made in Gaza Strip.’’ Imported goods from any of these territorial areas must not include ‘‘West Bank/Gaza,’’ ‘‘West Bank/Gaza Strip,’’ ‘‘West Bank and Gaza,’’ or words of similar meaning.

Tuesday, December 22, 2020

Generalized System of Preferences (GSP) Expires effective, December 31, 2020

This notice is to inform the Trade that the Generalized System of Preferences (GSP), special program indicator (SPI) “A,” “A+,” and “A*”, will expire on December 31, 2020 if no Congressional legislation is passed to renew the program.

Until further notice, GSP eligible goods entered or withdrawn from warehouse need to pay “General” (column 1) duty rates effective, January 1, 2021, 12:00 am.

U.S. Imports of Personal Protective Equipment

The U.S. Department of Commerce Office of Textiles and Apparel is providing a new monthly report on imports of personal protective equipment (PPE), related to the response to COVID-19, the disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The reports cover 2018, 2019, and the latest year-to-date 2019/2020; and, the reports cover twenty-three (23) 10-digit Harmonized Tariff Codes for plastic, rubber, paper, and textile-related PPE. There are two separate reports: https://otexa.trade.gov/PDFs/Monthly_PPE_Value_10_October.pdf"

Monday, December 21, 2020

Join the U.S. Commercial Service for the Technical Textiles Coffee Chat | Europe

The U.S. Commercial Service's Global Textiles, Apparel, and Sporting Goods Team invites U.S. exporters to join them for a "virtual coffee chat" with our U.S. Embassy and Consulate colleagues in Turkey, Germany, Czech Republic, and Portugal. This informal video discussion is through Microsoft Teams. The session will cover the current status of the technical textiles sector in these countries. Tuesday, February 9th, 2021, 11am U.S. Eastern Time.bla

Register HERE.

Why Turkey?

In 2019, Turkey imported $2.2 billion USD of technical textiles. Technical textiles have wide applicability in Turkey in the automotive, construction, defense, aerospace, energy, and life sciences industries. There are also opportunities in Turkey for U.S. technical textiles machinery.

Why Germany?

Germany has become the 4th largest market for U.S. technical textiles. Technical textiles is the fastest-growing industry in Germany, with opportunities for U.S. producers of high-end, leading-edge solutions in key sectors, such as automotive or life sciences.

Why Czech Republic?

There is growth in the textiles industry in the Czech Republic for products to be used in the automotive, agriculture, healthcare, and aviation sectors. The automotive industry, in particular, is expanding, creating opportunities for supplying this sector. There is also an opportunity for U.S. producers of automation solutions to sell to Czech textile manufacturers.

Why Portugal?

Despite positive conditions in the Portuguese textiles sector, local production is small, and therefore Portugal imports from several countries, including the U.S. In 2018, imports from the U.S. of textile products specific for technical uses increased 80% compared to 2017

Sunday, December 20, 2020

U.S. Textile Industry and Apparel Importers Applaud Biden's Choice for USTR

Lobbyists for apparel importers and the U.S. textile industry on applauded Biden’s pick of Katherine Tai for his United States Trade Representative, a rare bit of agreement between two groups that are historically at odds in matters of policy, accourding to this Yahoo! Finance report.

Saturday, December 19, 2020

U.S. Treasury Names Vietnam a Currency Manipulator

On December 16, 2020, the Department of the Treasury released Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States.

The Report concluded that both Vietnam and Switzerland met all three criteria under the Trade Facilitation and Trade Enforcement Act of 2015 (the 2015 Act) during the period under review. Treasury consequently conducted enhanced analysis of Vietnam and Switzerland in the Report and will also commence enhanced bilateral engagement with each country in accordance with the 2015 Act. This engagement will include urging the development of a plan with specific policy actions to address the underlying causes of currency undervaluation and external imbalances.

Treasury also determined that, under the Omnibus Trade and Competitiveness Act of 1988 (the 1988 Act), both Vietnam and Switzerland are currency manipulators. For each country, Treasury assessed, based on a range of evidence and circumstances, that at least part of its exchange rate management over the four quarters through June 2020, and particularly foreign exchange intervention, was for purposes of preventing effective balance of payments adjustments and, in the case of Vietnam, for gaining unfair competitive advantage in international trade as well. Consistent with the 1988 Act, Treasury will press for the adoption of policies that will permit effective balance of payments adjustments and eliminate the unfair advantages in trade that result from their actions.

No other major U.S. trading partner met the relevant 1988 or 2015 legislative criteria for currency manipulation or enhanced analysis during the relevant period. Treasury urged China to improve transparency with respect to the management of its exchange rate, in particular regarding official foreign exchange intervention, and increase public understanding of the relationship between the PBOC and the foreign exchange activities of the state-owned banks, including the use of foreign exchange derivatives and activities in the offshore RMB market.

Treasury found that ten economies warrant placement on Treasury’s “Monitoring List” of major trading partners that merit close attention to their currency practices: China, Japan, Korea, Germany, Italy, Singapore, Malaysia, Taiwan, Thailand, and India, the last three being added in this Report.

The report comes at a time when Vietnam is already on the Trump Administration's radar as a currency manipulator. On October 2, 2020, the U.S. Trade Representative (USTR) announced that it had initiated two separate investigations—pursuant to Section 301 of the Trade Act of 1974—with respect to Vietnam’s trade with the United States. The USTR will review Vietnam’s importation of timber that may have been illegally harvested or traded, used as inputs for its manufacturing of timber products, and subsequently exported to the United States. The agency will also review, in consultation with the Treasury Department, any practices that may have contributed to the alleged under valuation of Vietnam’s currency and thus may have impaired the competitiveness of U.S. products (by making them more expensive to foreign buyers). The USTR has requested consultations with the government of Vietnam, sought public comments on the investigations, and will hold virtual public hearings on December 28 and 29, 2020.

Section 301 investigations generally take months to complete, as the USTR reviews public comments, holds consultations with the foreign government, and reports findings and recommendations. For example, the Section 301 investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation was initiated on August 18, 2017, and the first tranche of 301 tariffs was implemented on July 6, 2018. From this history we expect that the determination on whether to take action in these cases relating to Vietnam will likely occur during the 117th Congress.

What is Your Favorite Christmas Movie?

On December 11, 2020, President Trump signed an Executive Order providing for the Closing of Executive Departments and Agencies of the Federal Government on Thursday, December 24, 2020 as a federal holiday in addition to the customary December 25 Christmas hoilay

Democrats’ favorite Christmas movie is "Miracle on 34th Street."
Republicans’ favorite Christmas movie is "It's a Wonderful Life."

I first heard that aphorism at a holiday party a couple of decades ago. It’s been around longer than that and I haven’t been able to determine who first said it and when.

On the face the saying makes sense. After all, what better movie for adults who still believe in Santa Claus than Miracle on 34th Street? Besides (watch out for plot spoiler) the picture’s crisis is resolved when a huge federal government agency—the Post Office—comes to the rescue. And with a divorced mother rearing a child alone, Miracle features a non-traditional family, surely a plus in the eyes of liberals.

It’s a Wonderful Life, on the other hand, celebrates the infinite worth of an individual human being, a worth that far exceeds even the biggest financial fortune. In Wonderful Life the hero’s crisis is resolved (another plot spoiler) by the spontaneous voluntary action of family, friends, and local community; emphatically not by the government. The film also shows people in fervent prayer, not to some generic higher power but to the God of the Bible. That alone must drive some liberals nuts when the film is broadcast over the public airwaves.

But the game can be played the other way. Wonderful Life presents negative stereotypes of bankers, so much so that when it was released some Hollywood observers charged that it was a vehicle for communist propaganda. The charge is easy to ridicule today, but in the 1940s communist infiltration of the motion picture industry was a real and serious threat to American values. Now look at the favorable treatment—not to mention free advertising—that Miracle gives to two large department stores! Main Street Republicans surely must find that refreshing compared to the negative views of business that Hollywood gives us today.

The lesson? It’s just a movie! Enjoy them both, or whichever ones you choose to watch this holiday season. Santa’s list does not include your political affiliation, but he does have a lump of coal for those who would strip our public life of all sense of Wonder at the Love of God and thankfulness for all Miracles big and small.

For 2021, the U.S. government will be observing the following holidays:

Friday, January 1 New Year’s Day

Monday, January 18 Birthday of Martin Luther King, Jr.

Monday, February 15 Washington’s Birthday

Monday, May 31 Memorial Day

Monday, July 5 Independence Day

Monday, September 6 Labor Day

Monday, October 11 Columbus Day

Thursday, November 11 Veterans Day

Thursday, November 25 Thanksgiving Day

Friday, December 24 Christmas Day

Marine Coat Contract Awarded

Crown Clothing Co., Vineland, New Jersey, has been awarded a maximum $8,541,763 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for men’s coats, belts and keepers. This was a competitive acquisition with four responses received. This is a one-year base contract with four one-year option periods. Location of performance is New Jersey, with a Dec. 17, 2021, ordering period end date. Using military service is Marine Corps. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D1432).

Limitation of Duty-Free Imports of Apparel Articles Assembled in Haiti Under the Caribbean Basin Economic Recovery Act (CBERA), as Amended by the Haitian Hemispheric Opportunity Through Partnership Encouragement Act (HOPE)

The Caribbean Basin Economic Recovery Act (CBERA) provides duty-free treatment for certain apparel articles imported directly from Haiti. One of the preferences is known as the ‘‘value-added’’ provision, which requires that apparel meet a minimum threshold percentage of value added in Haiti, the United States, and/or certain beneficiary countries. The provision is subject to a quantitative limitation, which is calculated as a percentage of total apparel imports into the United States for each 12-month annual period. For the annual period from December 20, 2020 through December 19, 2021, the quantity of imports eligible for preferential treatment under the value-added provision is 337,967,087 square meters equivalent.

Thursday, December 17, 2020

Carbon Fiber FTZ Comment Period Re-Opened

On December 17, 2020, the Foreign-Trade Zone Board published in the Federal Register (85 FR 81875) Foreign-Trade Zone (FTZ) 38— Spartanburg County, South Carolina, Application for Production Authority, Teijin Carbon Fibers, Inc. (Polyacrylonitrile-Based Carbon Fiber); Invitation for Public Comment on Rebuttal Submission.

This application was first filed in 2019 and has been opposed by Hexcel Corporation

FEMA Coverall Contract Awarded

Innovative Federal Operations Group Inc., Carlsbad, California, has been awarded a maximum $7,557,359 firm-fixed price, definite-quantity contract for disposable protective coveralls. This was a competitive acquisition with seven responses received. Locations of performance are California and Turkey, with a Jan. 14, 2021, performance completion date. Using customer is Federal Emergency Management Agency. Type of appropriation is fiscal 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-C-0003).

Nasopharyngeal Swab Contract Awarded

Thomas Scientific LLC, Swedesboro, New Jersey, has been awarded a maximum $105,820,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for nasopharyngeal swabs. This was a sole-source acquisition using justification 10 U.S. Code 2304(c)(2), as stated in Federal Acquisition Regulation Part 6.302-2. This is a four-month contract with a three-month option period. Location of performance is New Jersey, with an April 24, 2020, ordering period end date. Using customers are Veterans Administration, Indian Health Service, Department of Justice, Department of Homeland Security, Department of Health and Human Services and Department of Defense. Type of appropriation is fiscal 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DP-21-D-0004).

Wednesday, December 16, 2020

Army and Air Force Coat and Trouser Contract Awarded

Silver Oak Leaf Inc., Alpharetta, Georgia, has been awarded a maximum $13,534,957, firm-fixed-price, indefinite-delivery/indefinite-quantity contract for coats and trousers. This is a two-year base contract with one two-year option period. This was a competitive acquisition with two responses received. Locations of performance are Georgia and Puerto Rico, with a Dec. 14, 2022, ordering period end date. Using military services are Army and Air Force. Type of appropriation is fiscal year 2021 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1407).

Tuesday, December 15, 2020

Request for Comments and Notice of a Public Hearing Regarding the 2021 Special 301 Review

On December 15, 2020, the Office of the United States Trade Representative published in the Federal Register (85 FR 81263) [Docket Number USTR–2020–0041] Request for Comments and Notice of a Public Hearing Regarding the 2021 Special 301 Review.

Each year, the Office of the United States Trade Representative (USTR) conducts a review to identify countries that deny adequate and effective protection of intellectual property (IP) rights or deny fair and equitable market access to U.S. persons who rely on IP protection. Based on this review, the U.S. Trade Representative determines which, if any, of these countries to identify as Priority Foreign Countries. USTR requests written comments that identify acts, policies, or practices that may form the basis of a country’s identification as a Priority Foreign Country or placement on the Priority Watch List or Watch List.

Timeline--

January 28, 2021 at 11:59 p.m. EST: Deadline for submission of written comments from the public.

February 11, 2021 at 11:59 p.m. EST: Deadline for submission of written comments from foreign governments.

February 22, 2021: Deadline for the Special 301 Subcommittee of the Trade Policy Staff Committee (Subcommittee) to pose questions on written comments.

March 5, 2021 at 11:59 p.m. EST: Deadline for submission of commenters’ responses to questions from the Subcommittee.

On or about April 30, 2021: USTR will publish the 2021 Special 301 Report within 30 days of the publication of the National Trade Estimate Report.

Will the U.S. Textile Industry Be Strong Enough to Help Tackle the Next National Crisis?

The National Council of Textile Organizations has shared an important podcast interview with NCTO President and CEO Kim Glas who outlines how the government can help re-shore PPE production, build a permanent supply chain for the U.S. textile industry and end our nation’s reliance on China for critical medical textiles.

brrr° Introduces Advanced Cooling Fabric, brrr° Pro

Cooling fabric innovator brrr° is excited to announce a new advanced performance textile that harnesses the power of micro cooling technology to create a more intense cooling sensation.

Friday, December 11, 2020

Polyester Textured Yarn Antidumping Case Moving Forward

On December 11, 2020, the United States International Trade Commission (USITC) determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam that are allegedly sold in the United States at less than fair value.

The Commission’s public report Polyester Textured Yarn from Indonesia, Malaysia, Thailand, and Vietnam (Inv. Nos. 731-TA-1550-1553 (Preliminary), USITC Publication 5148, December 2020) will contain the views of the Commission and information developed during the investigations. The report will be available after January 11, 2021.

On November 18, 2020, the U.S. Department of Commerce announced the initiation of new antidumping (AD) investigations to determine whether polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam is being dumped in the U.S. market.

The petitions were filed by Nan Ya Plastics Corporation, America (Lake City, SC) and Unifi Manufacturing, Inc. (Greensboro, NC).

In the investigations, Commerce will determine whether polyester textured yarn from these four countries are being dumped in the U.S. market at less-than-fair-value. The alleged dumping margins are as follows:

  • 26.07 percent for Indonesia;
  • 75.13 percent for Malaysia;
  • 56.80 percent for Thailand; and
  • 54.13 percent for Vietnam.

If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped polyester textured yarn from Indonesia, Malaysia, Thailand, and/or Vietnam materially injure or threaten material injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping found to exist.

In 2019, polyester textured yarn imports from the countries under investigation were valued at:

  • $12.6 million for Indonesia;
  • $8.8 million for Malaysia;
  • $7.6 million for Thailand; and
  • $4.5 million for Vietnam.

Read the fact sheet on these initiations.

Next Steps:

During Commerce’s antidumping duty investigations of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam, the ITC will conduct its own investigations into whether these imports injure or threaten to injure the U.S. industry and its workforce. The ITC will make its preliminary determinations on or before December 14, 2020. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury to the domestic industry, then Commerce’s investigations will continue, with the preliminary determinations scheduled for April 6, 2021. This deadline may be extended.

If Commerce preliminarily determines that dumping is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing polyester textured yarn from these countries, as appropriate.

Final determinations by Commerce in these cases are scheduled for June 21, 2021, although these deadlines may be extended. If Commerce finds that products are not being dumped, or the ITC finds in its final determinations there is no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 306 new AD and CVD investigations – a 283 percent increase from the comparable period in the previous administration.

The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 539 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

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 AD duties.

The U.S. Department of 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 on factual evidence provided on the record.

Thermo Tents Recalls Mór Series Tents Due to Fire Hazard; Tents are Mislabeled as Fire Retardant

Recall Details

This recall involves tents in the Mór Series including the Crua Tri (SKU: TRI-01, EAN: 0602815520812), the Crua Loj (SKU: LOJ-01, EAN: 0602815520805), and the Crua Cottage (SKU: COTTAGE-01, EAN: 0669014590473).  The SKU, EAN and name of the tent are located on the box of the tent.  The tents are green with “Crua Outdoors” printed on the outside.  The tent dimensions are as follows:

Model

Height

Length

Width

Crua Cottage

8.2ft / 250cm  

8.2ft / 250cm

8.2ft / 250cm (front) - 5.9ft / 180cm (back)

Crua Loj

7ft / 213cm

24ft / 732cm

14ft / 427cm

Crua Tri

5.2ft / 157cm

7.8ft / 234cm

6.5ft / 196cm

Consumers should immediately stop using the tents below near any flame or other source of ignition.  The firm will send the purchasers a new free label stating that the tent is not fire retardant (FR).  Once consumers receive the new label, they should remove the incorrect original label, replace it with the new label, and keep the tents away from any flame or other source of ignition.  Thermo Tents is contacting all known purchasers.

Incidents/Injuries: None reported.

Sold At: Online at www.cruaoutdoors.com, Moosejaw.com, CampSaver.com, Walmart.com, Cabella.com, Basspro.com, and Amazon.com from March 2019 through August 2020 for about $900 (Crua Tri), $3,000 (Crua Loj) and $2,000 (Crua Cottage).

Importer(s): Thermo Tent U.S.A. Inc., of Saranac Lake, N.Y. 

Manufactured In: China.

Recall number: 21-713

More information and photos HERE.

CBP Commercial Customs Operations Advisory Committee to Meet (Webinar) December 16

The Commercial Customs Operations Advisory Committee (COAC) will hold its quarterly meeting on Wednesday, Decem-ber 16, 2020. The meeting will be open to the public via webinar only. There is no on-site, in-person option for this quarterly meeting.

For members of the public who plan to participatevia webinar, please register online at https://teregistration.cbp.gov/index.asp?w=213 by 5:00 p.m. EST by December 15, 2020.

Thursday, December 10, 2020

NCTO Welcomes Expected Nomination of Katherine Tai as new U.S. Trade Representative

On December 10, 2020, National Council of Textile Organizations (NCTO) President and CEO Kim Glas, representing the full spectrum of U.S. textiles from fiber through finished sewn products, issued the following statement welcoming the reported selection of the House Ways and Means Committee’s Chief Trade Counsel, Katherine Tai, as the next U.S. Trade Representative.

“We applaud President-elect Joe Biden’s expected nomination of the House Ways and Means Committee’s Chief Trade Counsel, Katherine Tai, as the next U.S. Trade Representative. This selection is welcome news to the U.S. textile industry, which has worked closely with Katherine on several critical trade issues over the years. She is an exceptional candidate to serve as the next USTR, having dedicated her career to enforcing our trade laws, and, most recently, serving as a key lead negotiator in the House securing key improvements in the USMCA agreement.

She will be a powerful and thoughtful advocate on behalf of American workers and our environment. The U.S. textile industry looks forward to working with her on our top trade priorities.”

USTR Responds to UK Statement on WTO Large Civil Aircraft Dispute

On December 8, the United Kingdom (UK) announced that it would not continue tariffs imposed by the European Union (EU) on imports from the United States starting January 1, 2021 in order to de-escalate the large civil aircraft conflict and come to a negotiated solution. The United States welcomes this decision and shares the UK’s objective of reaching a negotiated resolution.

The United States does not agree, however, that the UK would have any authority to impose tariffs. Only the EU sued the United States at the WTO; the UK did not bring a case in its individual capacity. Therefore, the US argues, the UK has no authority from the WTO to participate in any such action after it no longer is part of the EU. By contrast, the United States sued the EU as well as France, Germany, Spain, and the UK individually over massive subsidies to Airbus. As a result, the WTO authorized the United States to impose countermeasures on each of those countries and the entire EU.

The United States has, however, stated that it has exercised great restraint with its retaliatory tariffs. Like the UK, the United States considers that a negotiated settlement best serves the interests of all parties. In that regard, the United States encourages the UK to bring renewed focus to settlement discussions.

United States Takes Action for American Dairy Farmers by Filing First-Ever USMCA Enforcement Action

On December 9, 2020, United States Trade Representative Robert E. Lighthizer announced that the United States is exercising its rights under the United States-Mexico-Canada Agreement (USMCA) to address measures adopted by the Government of Canada that are contrary to the provisions of the agreement and harm U.S. dairy farmers. Specifically, the United States is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs). By setting aside and reserving a percentage of each dairy TRQ exclusively for processors, Canada has undermined the ability of American dairy farmers and producers to utilize the agreed-upon TRQs and sell a wide range of dairy products to Canadian consumers.

Ambassador Lighthizer provided official notice to Canada that it was exercising its rights to enforce the USMCA in a letter to Canada’s Minister of Small Business, Export Promotion and International Trade Mary Ng. If the United States and Canada are not able to resolve the United States’ concerns through consultations, the United States may request the establishment of a USMCA dispute settlement panel to examine the matter.

Background

As defined in the USMCA, a TRQ is “a mechanism that provides for the application of a preferential rate of customs duty to imports of a particular originating good up to a specified quantity (in-quota quantity), and at a different rate to imports of that good that exceed that quantity”. Under the USMCA, Canada has the right to maintain 14 TRQs on dairy products, including milk, cream, skim milk powder, butter and cream powder, industrial cheeses, cheeses of all types, milk powders, concentrated or condensed milk, yogurt and buttermilk, powdered buttermilk, whey powder, products consisting of natural milk constituents, ice cream and ice cream mixes, and other dairy.

In notices to importers that Canada published in June and October for dairy TRQs, Canada sets aside and reserves a percentage of the quota for processors and for so-called “further processors”, contrary to Canada’s USMCA commitments. This restriction undermines the value of Canada’s TRQs for U.S. producers and exporters by limiting their access to in-quota quantities negotiated under the USMCA.

A copy of the consultation request can be found here.

Wednesday, December 9, 2020

Pantone Names a Marriage of Colors Conveying Strength and Hopefulness for Duo Color of the Year 2021

Emboldening the spirit, the pairing of PANTONE 17-5104 Ultimate Gray + PANTONE 13-0647 highlights our innate need to be seen, to be visible, to be recognized, to have our voices heard. A combination of color whose ties to insight, innovation and intuition, and respect for wisdom, experience, and intelligence inspires regeneration, pressing us forward toward new ways of thinking and concepts.

For over 20 years, Pantone’s Color of the Year has influenced product development and purchasing decisions in multiple industries, including fashion, home furnishings, and industrial design, as well as product packaging and graphic design.

The Pantone Color of the Year selection process requires thoughtful consideration and trend analysis. To arrive at the selection each year, Pantone’s color experts at Pantone Color Institute comb the world looking for new color influences. This can include the entertainment industry and films in production, traveling art collections and new artists, fashion, all areas of design, popular travel destinations, as well as new lifestyles, playstyles, and socio-economic conditions. Influences may also stem from new technologies, materials, textures, and effects that impact color, relevant social media platforms and even upcoming sporting events that capture worldwide attention.

GAO Reports on Tax Incentives for Opportunity Zones

The 2017 tax revision (P.L. 115-97) temporarily authorized Opportunity Zone (OZ) tax incentives, which are intended to encourage private investment in economicallydistressed communities. OZ tax incentives are allowed for investments held by Qualified Opportunity Funds (QOFs) in qualified OZs. In 2018, the Community Development Financial Institutions (CDFI) Fund in the Treasury Department designated qualified census tracts that are eligible for OZ tax incentives after receiving recommendations from head executives (e.g., governors) at the state level. Qualified OZ designations for census tracts are in effect through the end of 2026. OZ tax incentives include:

  1. a temporary tax deferral for capital gains reinvested in a QOF,

  2. a step-up in basis for any investment in a QOF held for at least five years (10% basis increase) or seven years (15% basis increase), and

  3. a permanent exclusion of capital gains from the sale or exchange of an investment in a QOF held for at least 10 years.

On December 7, 2020, the Government Accountability Office released the report Tax Incentives for Opportunity Zones

NCTO Welcomes House passage of NDAA Conference Report; Urges Swift Senate Passage

In a press statement released December 8, 2020, the National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, welcomed House passage of the National Defense Authorization Act (NDAA) of Fiscal Year 2021.

“We applaud the House of Representatives for passing the NDAA, a bill that will strengthen the Berry Amendment, which supports tens of thousands of jobs in the U.S. textile industry and other manufacturing sectors,” said NCTO President and CEO Kim Glas. “We also extend special thanks to Rep. Patrick McHenry (R-NC) and Rep. Bill Pascrell (D-NJ), co-chairs of the House Textile Caucus, for their leadership and support of this important provision.”

The NDAA bill rolls back the threshold for Berry compliance requirements and Defense Department acquisitions to $150,000 and adjusts future increases for inflation, which the U.S. textile industry has long supported.

In the Fiscal Year 2018 NDAA bill, Congress raised the Simplified Acquisition Threshold (SAT) to $250,000--a higher threshold that put more than $50 million worth of Berry contracts annually at risk of being outsourced to China and other foreign countries. As the SAT increases, the incentive for sourcing textiles, apparel and footwear abroad grows. (See a broad industry coalition letter sent in September to the chairman and ranking member of the House Armed Services Committee.)

Resetting the contracting threshold back to $150,000 in the new NDAA bill ensures that tens of millions of U.S. taxpayer dollars will be spent here at home on quality goods manufactured by U.S. workers from U.S. materials.

The Senate is likely to pass the bill shortly. It will then go to the president for his signature.

“Berry ensures our warfighters and military personnel are wearing high-quality,100% Made-in-America textile and apparel products, including mission critical personal protective gear,” Glas added. “It also helps maintain America’s warm industrial base and safeguards our national security from unreliable foreign supply chains in China and other countries for essential military materials. We urge the Senate to swiftly approve the report and President Trump to sign it into law.”

$800K of Counterfeit Purses and Hats Seized by CBP Officers in Louisville

On December 4, U.S. Customs and Border Protection (CBP) officers in Louisville intercepted two shipments containing counterfeit hats and handbags worth over $800,000, if they were real.

The first shipment was arriving from China, while the second shipment arrived from Vietnam. Each package was mis-manifested, and CBP officers inspected the parcels to determine the admissibility of its contents in accordance with CBP regulations. When the first shipment, which was destined for Texas, was opened officers found 938 counterfeit Louis Vuitton hats. If these hats were real they would have been worth $764,470. The second shipment, destined for a residence in local Columbia, KY, contained 29 counterfeit Louis Vuitton handbags. If these purses were real, they would have been worth $56,550. In all, CBP officers seized $821,000 worth of counterfeit goods.

Read more HERE.

December 11, 1995 Fire Destroys Malden Mills

On this day in 1995, a massive, wind-whipped fire completely destroyed three buildings at Malden Mills in Lawrence, where the company's signature Polartec fabric was produced. Just two weeks before Christmas, thousands of workers faced unemployment and the fear that the mill's owner would take the insurance money and follow other textile companies south. The next day, company president Aaron Feuerstein announced that he would rebuild in Lawrence, and he promised to keep his employees on the payroll during the time it would take to reconstruct the plant. Venerated as "a man of his word" and "extremely compassionate," Feuerstein became a national folk hero. Sadly, the millions he spent to keep his pledges eventually cost him control of the company his family had owned for three generations. ... READ MORE at Mass Moments, a project of Mass Humanities, whose mission is to support programs that use history, literature, philosophy, and the other humanities disciplines to enhance and improve civic life throughout the Commonwealth.

Friday, December 4, 2020

$9.3 Million Protective Glove Contract Awarded

Guardian Manufacturing LLC, Willard, Ohio, has been awarded a maximum $9,315,618 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for butyl chemical protective gloves and toxicological agent protective gloves. This was a competitive acquisition with one offer received. This is a one-year base contract with one one-year option period. Location of performance is Ohio, with a Dec. 4, 2021, ordering period end date. Using military services are Army, Air Force and Navy. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1416).

Thursday, December 3, 2020

CBP Issues Detention Order on Cotton Products Made by Xinjiang Production and Construction Corps Using Prison Labor

On December 2, 2020, the U.S. Department of Homeland Security announced that U.S. Customs and Border Protection (CBP) personnel at all U.S. ports of entry will detain shipments containing cotton and cotton products originating from the Xinjiang Production and Construction Corps (XPCC).

CBP’s Office of Trade directed the issuance of a Withhold Release Order (WRO) against cotton products made by the XPCC based on information that reasonably indicates the use of forced labor, including convict labor. The WRO applies to all cotton and cotton products produced by the XPCC and its subordinate and affiliated entities as well as any products that are made in whole or in part with or derived from that cotton, such as apparel, garments, and textiles.

The WRO on XPCC cotton products is the sixth enforcement action that CBP has announced in the past three months against goods made by forced labor from China’s Xinjiang Uyghur Autonomous Region. In July 2020, the U.S. Government issued an advisory to caution businesses about the risks of forced labor in Xinjiang, where the Chinese government continues to execute a campaign of repression targeting the Uyghur people and other ethnic and religious minority groups.

"The human rights abuses taking place at the hands of the Chinese Communist government will not be tolerated by President Trump and the American people," said DHS Acting Deputy Secretary Ken Cuccinelli. "DHS is taking the lead to enforce our laws to make sure human rights abusers, including U.S. businesses, are not allowed to manipulate our system in order to profit from slave labor. 'Made in China' is not just a country of origin it is a warning label."

“China’s systemic abuse of forced labor in the Xinjiang Region should disturb every American business and consumer,” said CBP Acting Commissioner Mark A. Morgan. "Forced labor is a human rights violation that hurts vulnerable workers and introduces unfair competition into global supply chains. CBP will continue taking decisive action to prevent goods made with forced labor from entering the United States."

Federal statute 19 U.S.C. 1307 prohibits the importation of merchandise mined, manufactured, or produced, wholly or in part, by forced labor, including convict labor, forced child labor, and indentured labor. This WRO will require detention at all U.S. ports of entry of all cotton products produced by the XPCC and any similar products that the XPCC produces. Importers of detained shipments are provided an opportunity to export their shipments or demonstrate that the merchandise was not produced with forced labor.

CBP issued 13 WROs during Fiscal Year 2020, including eight WROs on goods made by forced labor in China. All WROs are publically available and listed by country on the CBP's Forced Labor Withhold Release Orders and Findings page. The Forced Labor Division, established in 2018 within CBP’s Office of Trade, leads the enforcement of the prohibition on the importation of goods made from forced labor.

Biden says he won’t immediately remove Trump’s tariffs on China

"President-elect Joe Biden will not immediately remove tariffs imposed by President Donald Trump on China, a legacy of the outgoing administration’s trade war, as he moves to develop a strategy with U.S. allies on how to best deal with Beijing," according to THIS NEWS ARTICLE.

Wednesday, November 25, 2020

CBP Reminds Consumers to Beware of Counterfeit Goods When Shopping this Holiday Season

With Black Friday and Cyber Monday fast approaching, U.S. Customs and Border Protection (CBP) is reminding consumers to be on the lookout for counterfeit and pirated goods, particularly when shopping online.

Every year, CBP seizes millions of counterfeit goods from countries around the world as part of its mission to protect U.S. businesses and consumers. These goods include fake versions of popular products, such as smartphones and related accessories, electronics, apparel, shoes, cosmetics, and high-end luxury goods. Sold online and in stores, counterfeit goods hurt the U.S. economy.

Read more HERE.

Happy Thanksgiving Day from Agathon Associates

Agathon Associates, will be closed Thursday, November 26th, in celebration of Thanksgiving Day, a major holiday in the United States. All government offices and most businesses will be closed for the day. Many business, other than retail, will also be closed on Friday, the 27th.

In other years Pilgrims, Plymouth Rock, Poultry, Pumpkin Pie, and large gatherings of friends and family would all be on the menu tomorrow as we Americans of every origin re-enact and re-interpret the story of that first Thanksgiving in 1621. Somehow, in the story of those Englishmen and women of a strict Calvinist religion, we find meanings to suit the needs of a multi-ethnic and multi-religious nation. Now in time of Great Sickness and Mortality we all shall scale back our festivities. Perhaps this year we shall especially note that out of 102 Mayflower passengers, merely 51 survived the first winter in New England.

Thanksgiving 2020 brings a special Four Hundredth Anniversary commemoration. Originally headed for the northern part of the Virginia Colony -- roughly in the area where New York City is now located -- they ended up landing off-course, up here in what would become New England. Being out of the bounds of any established colony, where a colonial charter formed the basis for civil society, the Mayflower passengers found themselves, technically, outside of the law. Their response? They would remain loyal subjects of the king, but they would create their own local laws. Pilgrims, who made the passage for religious reasons, and others who crossed the Atlantic for commercial gain, agreed to live together in the New World under equal laws created democratically "for the General good."

The Mayflower Compact was signed four hundred years ago on November 11, 1620 (Julian Calendar, the 21st in our Gregorian Calendar) on board the Mayflower at anchor in Provincetown Harbor. In it they agreed to: "solemnly and mutually in the Presence of God and one of another, covenant and combine ourselves together into a civil Body Politick, for our better Ordering and Preservation, and Furtherance of the Ends aforesaid; And by Virtue hereof to enact, constitute, and frame, such just and equal Laws, Ordinances, Acts, Constitutions and Offices, from time to time, as shall be thought most meet and convenient for the General good of the Colony; unto which we promise all due submission and obedience." And, thus, was established the first experiment in limited self-government in North America.

This Thanksgiving may God bless all the readers of the Textiles and Trade BLog with his bounty and with health of body and mind.

In addition to our prayers of Thanksgiving, may I suggest --

O Most mighty and merciful God, in this time of grievous sickness, we flee unto thee for succor. Deliver us, we beseech thee, from our peril; give strength and skill to all those who minister to the sick; prosper the means made use of for their cure; and grant that, perceiving how frail and uncertain our life is, we may apply our hearts unto that heavenly wisdom which leadeth to eternal life; through Jesus Christ our Lord. Amen.

Saturday, November 21, 2020

Canada successfully concludes talks on transitional trade continuity agreement with the United Kingdom

On November 21, 2020, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, along with Elizabeth Truss, the United Kingdom’s Secretary of State for International Trade, announced the successful conclusion of talks for the Canada-United Kingdom Trade Continuity Agreement - an interim deal that will be in place as Canada and the United Kingdom work towards negotiating a comprehensive free trade agreement.

As CETA will no longer apply to the United Kingdom beginning January 1, 2021, this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including the elimination of tariffs on 98% of Canadian products exported to the United Kingdom. This will provide a competitive edge to Canadian exporters and businesses who will maintain preferential access to the United Kingdom market, even as the country exits the EU.

This agreement is intended to provide stability and predictability for businesses, exporters, and workers in both Canada and the United Kingdom. Canada and the United Kingdom have long shared a profound and positive relationship, with a long history of working closely together.

Thursday, November 19, 2020

Hardwood Products Awarded $11.6 Million Contract for Flock Tip Medical Swabs

Hardwood Products Co. LP, Guilford, Maine, has been awarded a not-to-exceed $11,640,270 firm-fixed-price, undefinitized contract action as a modification (P00003) to contract FA8730-20-C-0056 for industrial base expansion for U.S. domestic production capacity for medical flock tip swabs. This contract modification funds the design, procurement and expedited implementation of facility upgrades, enabling an early, interim production capability of flock tip swabs. Work will be performed in Pittsfield, Maine, and is expected to be completed March 30, 2021. Fiscal 2021 other procurement funds in the amount of $5,078,350 are being obligated at the time of award. The cumulative face value of the contract is $62,599,861. The Air Force Life Cycle Management, Hanscom Air Force Base, Massachusetts, is the contracting activity.