Thursday, December 30, 2021

Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2022-D003)

On Deceember 30, 2021, the U.S. Department of Defense published in the Federal Register (86 FR 74375) Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2022-D003)

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to incorporate revised 
thresholds for application of the World Trade Organization Government 
Procurement Agreement and the Free Trade Agreements, as determined by 
the United States Trade Representative.

DATES: Effective January 1, 2022.

FOR FURTHER INFORMATION CONTACT: Ms. Kimberly Bass, 571-372-6174.

SUPPLEMENTARY INFORMATION:

I. Background

    This rule adjusts thresholds for application of the World Trade 
Organization (WTO) Government Procurement Agreement (GPA) and Free 
Trade Agreements (FTA) as determined by the United States Trade 
Representative (USTR). The trade agreements thresholds are adjusted 
every two years according to predetermined formulae set forth in the 
agreements. The USTR has specified the following new thresholds in the 
Federal Register (86 FR 67579, November 26, 2021), which are being
implemented in this rule:

------------------------------------------------------------------------
                                              Supply       Construction
                                             contract        contract
             Trade agreement               (equal to or    (equal to or
                                            exceeding)      exceeding)
------------------------------------------------------------------------
WTO GPA.................................        $183,000      $7,032,000
FTA:
    Australia...........................          92,319       7,032,000
    Bahrain.............................         183,000      12,001,460
    CAFTA-DR (Costa Rica, Dominican               92,319       7,032,000
     Republic, El Salvador, Guatemala,
     Honduras, and Nicaragua)...........
    Chile...............................          92,319       7,032,000
    Colombia............................          92,319       7,032,000
    Korea...............................         100,000       7,032,000
    Morocco.............................         183,000       7,032,000
    Panama..............................         183,000       7,032,000
    Peru................................         183,000       7,032,000
    Singapore...........................          92,319       7,032,000
------------------------------------------------------------------------

    Updates for the United States-Mexico-Canada Agreement (USMCA), 
which superseded the North American Free Trade Agreement (NAFTA), are 
not included in this revision to the trade agreements thresholds in the 
DFARS. On January 29, 2020, the President signed into law the United 
States-Mexico-Canada Agreement Implementation Act, through which 
Congress approved the USMCA. On July 1, 2020, the USMCA entered into 
effect. Although Canada is still a designated country under the WTO 
GPA, Canada is no longer a Free Trade Agreement country, because 
chapter 13 of the USMCA (Government procurement) applies only to the 
United States and Mexico. While updates to the DFARS to implement the 
revisions resulting from the USMCA are not implemented in this final 
rule, implementation is being accomplished via separate rulemaking 
under DFARS Case 2020-D032. Changes to the Federal Acquisition 
Regulation (FAR) to implement the USMCA are being accomplished under 
FAR Case 2020-014.

II. Publication of This Final Rule for Public Comment is not Required 
by Statute

    The statute that applies to the publication of the FAR is 41 U.S.C. 
1707. Subsection (a)(1) of the statute requires that a procurement 
policy, regulation, procedure, or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it only adjusts the thresholds according to predetermined 
formulae to account for changes in economic conditions, thus 
maintaining the status quo, without significant effect beyond the 
internal operating procedures of the Government.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule amends the DFARS to revise thresholds for application of 
the WTO GPA and the FTA. The revisions do not add any new burdens or 
impact applicability of clauses and provisions at or below the 
simplified acquisition threshold or to commercial items.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the final rule with the form, Submission of Federal Rules under the 
Congressional Review Act, to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule, because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require 
publication for public comment.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C chapter 35) does apply, 
because the final rule affects the prescriptions for use of the 
certification and information collection requirements in the provision 
at DFARS 252.225-7035, Buy American-Free Trade Agreements--Balance of 
Payments Program Certificate, and the certification and information 
collection requirements in the provision at DFARS 252.225-7018, 
Photovoltaic Devices--Certificate. The changes to these DFARS 
provisions do not impose additional information collection requirements 
to the paperwork burden previously approved under OMB Control Number 
0704-0229, entitled ``DFARS Part 225, Foreign Acquisition and related 
clauses,'' because the threshold changes are in line with inflation and 
maintain the status quo.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 225 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 225 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION


225.1101  [Amended]

0
2. Amend section 225.1101 by--
0
a. In paragraph (6) introductory text, removing ``$182,000'' and adding 
``$183,000'' in its place;
0
b. In paragraph (10)(i) introductory text, removing ``$182,000'' and 
adding ``$183,000'' in its place;
0
c. In paragraph (10)(i)(A), removing ``$182,000'' and adding 
``$183,000'' in its place;
0
d. In paragraph (10)(i)(B), removing ``$83,099'' and adding ``92,319'' 
in its place;
0
e. In paragraph (10)(i)(C), removing ``$182,000'' and adding 
``$183,000'' in its place; and
0
f. In paragraphs (10)(i)(D) through (F), removing ``$83,099'' and 
adding ``92,319'' in its place.


225.7017-3   [Amended]

0
3. Amend section 225.7017-3 by--
0
a. In paragraph (b), removing ``$182,000'' and adding ``$183,000'' in 
its place; and
0
b. In paragraph (c)(2), by removing ``$180,000'' and adding 
``$183,000'' in its place.


225.7503   [Amended]

0
4. Amend section 225.7503 by--
0
a. In paragraphs (a) introductory text and (b) introductory text, 
removing ``$7,008,000'' and adding ``$7,032,000'' in its place;
0
b. In paragraph (b)(1), removing ``$10,802,884'' and adding 
``$12,001,460'' in its place;
0
c. In paragraph (b)(2), removing ``$7,008,000'' and adding 
``$7,032,000'' in its place, and removing ``$10,802,884'' and adding 
``$12,001,460'' in its place;
0
d. In paragraph (b)(3), removing ``$10,802,884'' and adding 
``$12,001,460'' in its place; and
0
e. In paragraph (b)(4), removing ``$7,008,000'' and adding 
``$7,032,000'' in its place, and removing ``$10,802,884'' and adding 
``$12,001,460'' in its place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.225-7017   [Amended]

0
5. Amend section 252.225-7017 by--
0
a. Removing clause date ``(JAN 2020)'' and adding ``(JAN 2022)'' in its 
place;
0
b. In paragraphs (c)(2) and (3), removing ``$83,099'' and adding 
``92,319'' in its p lace; and
0
c. In paragraphs (c)(4) and (5), removing ``$182,000'' and adding 
``$183,000'' in its place.


252.225-7018   [Amended]

0
6. Amend section 252.225-7018 by--
0
a. Removing clause date ``(JAN 2020)'' and adding ``(JAN 2022)'' in its 
place;
0
b. In paragraphs (b)(1) and (2), removing ``$182,000'' and adding 
``$183,000'' in its place;
0
c. In paragraphs (d)(3) introductory text and (d)(4) introductory text, 
removing ``$83,099'' and adding ``92,319'' in its place; and
0
d. In paragraphs (d)(5) introductory text and (d)(6) introductory text, 
removing ``$182,000'' and adding ``$183,000'' in each place.   

Tuesday, December 28, 2021

Superabsorbent Polymer from Korean Dumping Investigation Moving Forward

On December 23, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 72993) [Investigation No. 731–TA–1574 (Preliminary)] Superabsorbent Polymers From South Korea; Determination and Commencement of Final Phase Investigation.

On the basis of the record developed in the subject investigation, the United States International Trade Commission (‘‘Commission’’) determines, pursuant to the Tariff Act of 1930 (‘‘the Act’’), that there is a reasonable indication that an industry in the United States is materially injured by reason of imports of superabsorbent polymers (‘‘SAP’’) from South Korea, provided for in subheading 3906.90.50 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value (‘‘LTFV’’).

U.S. Federal Offices to Close Friday, December 31

Because New Year's Day falls on a Saturday this year the U.S. federal government will observe New Year's Day on Friday, the 31st.

USTR Announces 2021 Report on the Implementation and Enforcement of Russia’s WTO Commitments

On December 21, 2021, the Office of the United States Trade Representative released its “2021 Report on the Implementation and Enforcement of Russia’s World Trade Organization (WTO) Commitments.”

“This Report provides an overview of Russia’s continued departure from the guiding principles of the World Trade Organization, such as non-discriminatory practices, more open trade, predictability, transparency, and fair competition,” said Ambassador Katherine Tai. “Failure to follow WTO norms, rules, and commitments puts American workers and businesses at an economic disadvantage and prevents them from competing on a level playing field. USTR will continue to work with like-minded partners and use the tools of the WTO to hold Russia accountable for its behavior in the multilateral trading system.”   

The Report highlights areas in which USTR has raised concerns about Russia’s compliance with its WTO commitments, including:

  • “Russia continues to adopt and implement localization measures to provide preferential treatment to both domestically produced goods and services.” 
     
  • “In the agriculture sector, Russia maintains non-science-based import restrictions and refuses to recognize other countries’ guarantees on exporting facilities.”   
     
  • “Russia’s import substitution strategies for the IT sector, such as the ‘Digital Economy of the Russian Federation,’ also raise additional national treatment and import substitution concerns.”  
     
  • “As economies around the world were forced to retract and retrench in response to the COVID-19 pandemic, the government of Russia exacerbated those trends by extending its control over the Russian economy and tightening restrictions on trade.” 
Background 

This report was prepared pursuant to section 201 of the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability Act of 2012 (P.L. 112-208), which requires the U.S. Trade Representative to submit a report to the Committee on Finance of the U.S. Senate and the Committee on Ways and Means of the U.S. House of Representatives describing the commitments that Russia made upon entering the World Trade Organization on August 12, 2012, and assessing the extent to which Russia has implemented those commitments after 9 years of WTO membership.

The complete report on Russia’s WTO compliance can be found here.

Certain Foam Footwear; Institution of an Advisory Opinion Proceeding

On December 23, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 72992) [Investigation No. 337-TA-567 (Advisory Opinion Proceeding 3] Certain Foam Footwear; Institution of an Advisory Opinion Proceeding.

The Commission instituted the underlying investigation on May 11, 2006, based on a complaint, as amended, filed by Crocs, Inc. of Niwot, Colorado. 71 FR 27514-15 (May 11, 2006). The complaint alleged, inter alia, violations of section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain foam footwear, by reason of infringement of claims 1-2 of U.S. Patent No. 6,993,858 (``the '858 patent'') and U.S. Patent No. D517,789 (``the '789 patent''). The notice of investigation named several respondents.

On July 25, 2008, the Commission issued a final determination finding no violation of section 337 based on non-infringement and failure to satisfy the technical prong of the domestic industry requirement with respect to the '789 patent and based on invalidity of the '858 patent as obvious under 35 U.S.C. 103. 73 FR 45073-74 (Aug. 1, 2008). On July 15, 2011, after an appeal to the U.S. Court of Appeals for the Federal Circuit and subsequent remand vacating the Commission's previous finding of no violation, the Commission found a violation of section 337 based on infringement of the asserted claims of the patents and issued, inter alia, a general exclusion order (``GEO''). 76 FR 43723-24 (July 21, 2011). On March 28, 2020, the '789 patent expired, so the GEO is now only directed to articles that infringe one or more of claims 1 and 2 of the '858 patent.

On November 17, 2021, non-respondent, Triple T Trading Ltd. (``Triple T'') of Marysville, Washington, petitioned for institution of an expedited advisory opinion proceeding to determine whether its fleece-lined shoes and shoes with plastic washers are covered by the GEO. On November 29, 2021, Crocs opposed Triple T's petition for an expedited advisory opinion proceeding. On December 9, 2021, Triple T filed a motion for leave to respond to Crocs' opposition. The Commission has determined to grant the motion.

The Commission has determined that Triple T's petition complies with the requirements for institution of an advisory opinion proceeding under Commission Rule 210.79 to determine whether its fleece-lined shoes and shoes with plastic washers fall within the scope of the GEO. Accordingly, the Commission has determined to institute an advisory opinion proceeding and refer it to the Office of the General Counsel. The parties will furnish the Office of the General Counsel with information as requested in the accompanying order, and the Commission will issue an advisory opinion within ninety (90) days of the date of publication of this notice in the Federal Register. The following entities are named as parties to the proceeding: (1) Triple T and (2) Crocs.

FTZ Request Filed for Upholstery Fabric

On December 28, 2021, the Foreign Trade-Zone Board published in the Federal Register (86 FR 73730) [B–84–2021] Foreign-Trade Zone (FTZ) 80 -- San Antonio, Texas; Notification of Proposed Production Activity CGT U.S., Ltd. (Polyvinyl Chloride (PVC) Coated Upholstery Fabric Cover Stock) New Braunfels, Texas.

CGT U.S., Ltd. (CGT) submitted a notification of proposed production activity to the FTZ Board for its facility in New Braunfels, Texas within Subzone 80E.

The proposed foreign-status material is 100% polyester woven weft pile fabric—dyed (duty rate, 9.8%). The request indicates that the proposed material will be admitted to the zone in privileged foreign (PF) status (19 CFR 146.41), thereby precluding inverted tariff benefits on this item. The request also indicates that the material is subject to duties under Section 301 of the Trade Act of 1974 (Section 301), depending on the country of origin. The applicable Section 301 decisions require subject merchandise to be admitted to FTZs in PF status.

Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive Secretary and sent to: ftz@trade.gov. The closing period for their receipt is February 7, 2022.

This company was approved for a similar fabric in 2019

Sunday, December 26, 2021

CBP Will Detain Imports of Disposable Gloves Produced by the Brightway Group

Effective December 20, 2021, U.S. Customs and Border Protection (CBP) personnel at all U.S. ports of entry will detain disposable gloves produced in Malaysia by Brightway Holdings Sdn Bhd, Laglove (M) Sdn Bhd, and Biopro (M) Sdn Bhd (collectively, Brightway Group).

Read more HERE.

Friday, December 24, 2021

Cloth, Poly/Wool (P/W), Tropical, Air Force, Shade #540 (PGC 91754)

This is a pre-solicitation notice, NOT a solicitation. The solicitation has NOT yet been issued.

Solicitation Number: SPE1C1-22-R-0016.

This requirement is for the following:

   Item: 

        Cloth, Poly/Wool (P/W), Tropical, Air Force, Shade #540 (PGC 91754)

        NSN: 8305-01-049-1775
        Specification: MTL-DTL-21115L, dated 24 June 2005

        Sponged

   Unit of Issue: yard 

   Quantity: 50,000 yards

    FOB Destination: Lansing, MI

    Inspection and Acceptance is at Origin.

See more at https://sam.gov/opp/9807e3cf2a9d43bfa6e287523919c8d2/view

Two New DR-CAFTA Short Supply Determinations

On December 23, 2021, the Committee for the Implementation of Textile Agreements published in the Federal Register (86 FF 72932 and 86 FR 72933) two DR-CAFTA short supply determinations.

  Specifications: 3-layered bonded fabric with woven outer layer and knit pile inner layer, bonded with plastic.

    HTS: 6001.22.
    Face Fabric:
    Fiber Content: 100% Polyester.
    Yarn Size: 290D-350D/144F.
    Thread Count:
    Warp: 55-67 warp ends per inch.
    Filling: 50-60 filling picks per inch.
    Fabric Construction: Plain weave.
    Fabric Weight: 175.7-214.5 g/m2.
    Coloration: Dyed and/or printed.
    Back Fabric:
    Fiber Content: 100% Polyester.
    Yarn Size: 70D-95D (before pile process).
    Fabric Construction: Pile knit.
    Fabric Weight: 145.5-181.5 g/m2.
    Coloration: Dyed.
    Composite Fabric:
    Weight: 336.6-412.5 g/m2.
    Bonding: Full or dot contact bonding meeting 2.5 Lbf/inch (Initial and 5x wash) per ASTM D2724.
    Air Permeability: Initial <=1.0 cfm per ASTM D737.
    Durable Water Repellency: Initial >=90 Points per AATCC 22.
    Low Range Hydrostatic: Initial 8,000 mm-30,000 mm per AATCC 127.
   
Specifications: 3-Layered Bonded Fabric With Woven Outer Layer and Knit Pile Inner Layer, Bonded With Plastic

HTS: 6001.22

Face Fabric

Fiber Content: 81-91% Polyester/9-19% Spandex
Yarn Size: 85D-110D/148F

Thread Count:

    Warp: 107.1-130.9 warp ends per inch
    Filling: 90-110 filling picks per inch
Fabric Construction: Plain weave
Fabric Weight: 111.6-136.4 g/m2
Coloration: Dyed and/or printed

Back Fabric

Fiber Content: 100% Polyester
Yarn Size: 70D-95D (before pile process)
Fabric Construction: Pile knit
Fabric Weight: 145.5-181.5 g/m2
Coloration: Dyed and/or printed

Composite Fabric

Weight: 315.9-386.1 g/m2
Bonding: Full or dot contact bonding meeting 2.5 Lbf/inch (Initial and 5x wash) per ASTM D2724
Air Permeability: Initial <=1.0 cfm per ASTM D737
Durable Water Repellency: Initial >=90 Points per AATCC 22
Low Range Hydrostatic: Initial 8,000 mm-30,000 mm per AATCC 127
  
Note: The yarn size designations describe a range of yarn specifications for yarn before knitting, dyeing, and finishing of the fabric. They are intended as specifications to be followed by the mill in sourcing yarn used to produce the fabric. Dyeing, finishing, and knitting can alter the characteristic of the yarn as it appears in the finished fabric. This specification therefore includes yarn sizes provided that the variation occurs after processing of the greige yarn and production of the fabric. The specifications for the fabric apply to the fabric itself prior to cutting and sewing of the finished garment. Such processing may alter the measurements.

Thursday, December 23, 2021

CBP Issues Broker Guidance on Apparel Entered under Haiti HOPE Program

COMMODITY:

Apparel as provided for in Chapter 98, Subchapter XX of the Harmonized Tariff Schedule (HTS)

QUOTA PERIOD:

December 20, 2021, through December 19, 2022

OPENING DATE:

Monday, December 22, 2021

RESTRAINT LEVEL:

367,770,223 Square Meter Equivalents  Value added restraint limit (see TBT 07-006)

HTS NUMBERS
First Tariff FieldFirst Tariff Field
9820.61.25 (Entry-specific claims), orChapters 61 and 62
9820.61.30 (Aggregated claims)Headings 6501, 6502, 6503 and 6504, Subheadings 6406.99.15 and 6504, Subheadings 6406.99.15 and 6505.90

REPORTING INSTRUCTIONS:

Use entry type code 02, 06, 07, 12, 23, 32, 38, or 52.

Report in units of measure as shown in the Harmonized Tariff Schedule. Conversion to square meter equivalency will be done by the computer.

Merchandise shall be reported and released via ACE.

SPECIAL INSTRUCTIONS:

Whenever goods are classified under provision 9820.61.25 or 9820.61.30 as ensembles in combination with a designated ensemble provision in chapter 61 or 62, the reporting number shall be for the specific component apparel article in the ensemble and not the ensemble number.  Each specific apparel article in the ensemble must be identified separately with both 9820.61.25 or 9820.61.30 and a corresponding chapter 61 or 62 provision.

Once the in-quota allocation is filled, goods will be allowed to enter at normal trade relations rate or general rate of duty as noted in the HTS at the appropriate entry type.

Questions from the importing community regarding this electronic message may refer questions via e-mail to HQQUOTA@cbp.dhs.gov

 

Tuesday, December 21, 2021

Air Force Seeks Info on Capacity for Wool Uniform Fabrics

The Air Force has issued a Request for Information relating to the availability of vendors which are capable of providing worsted wool, polyester/worsted wool blend, and polyester woven fabrics for use in the production of dress uniforms.

See https://sam.gov/opp/85c4e18db26c44c2a56675b83e1b236c/view.

Army Dress Shirt Contracts Awarded

Kandor Manufacturing, Arebico, Puerto Rico, has been awarded a maximum $10,566,438 modification (P00005) exercising the first one-year option period of a one-year base contract (SPE1C1-21-D-1419) with four one-year option periods for men’s long sleeve dress shirts. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico, with a Dec. 3, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2022 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Propper International Inc., Cabo Rojo, Puerto Rico, has been awarded a maximum $9,659,160 modification (P00004) exercising the first one-year option period of a one-year base contract (SPE1C1-21-D-1420) with four one-year option periods for men’s long sleeve dress shirts. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico, with a Dec. 13, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2022 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

U.S. Federal Government will Close in Observation of Christmas this Friday

Because Christmas falls on a Saturday this year the U.S. federal government will observe Christmas on Friday, the 24th. New Year's Day also falls on a Saturday, therefore the federal holiday will be observed on December 31st. Federal, State, and local governmnet offices will be closed on both of those Fridays, as will most non-retail business. In the private sector it is common to end the work day early on the day before Christmas and the day before New Year's.

What's Your Favorite Christmas Movie?

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 over two 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 as worshipped by Protestant and Catholic believers. 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 (but not, as is erroneously asserted on some liberal websites, the Federal Bureau of Investigations itself) 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.

Omaha Woman Sentenced for Trafficking in Counterfeit Apparel, Blankets, and Travel Goods

Acting United States Attorney Jan Sharp announced that Paw Moo, age 29, of Omaha, Nebraska, was sentenced on December 10, 2021 in federal court in Omaha for trafficking in counterfeit goods. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Moo to probation for a term of three years.

In February 2021, U.S. Customs and Border Protection in Anchorage, Alaska, seized a shipment of counterfeit designer purses destined for Moo’s residence in Omaha, Nebraska. On March 23, 2021, Homeland Security Investigations (HSI), using an undercover officer, executed a controlled delivery of the seized package to Moo’s residence in Omaha. Moo accepted the package and HSI agents executed a search of her residence where numerous items with counterfeit marks were located. The items were handbags, clothes, blankets, phone cases, belts and a wallet from brands to include Louis Vuitton, Chanel, Gucci, Yves St. Laurent, Michael Kors, Coach and Nike. The total manufacturers’ suggested retail price of the seized merchandise exceeded $118,000.

Moo stated she began to sell items online from her residence in the beginning of March 2020 and began selling counterfeit items in the Fall of 2020, a timeframe that was consistent with her importation history.

This case was investigated by Homeland Security Investigations.

Los Angeles Fashion District Company Owner Sentenced to One Year in Prison for Committing Customs Violations and Tax Offenses

On December 6, 2021, the owner of a garment wholesaling company in the Fashion District of downtown Los Angeles was sentenced to 12 months and one day in federal prison for scheming to undervalue imported garments and avoid paying millions of dollars in duties to the United States, failing to report millions of dollars in income on tax returns, and failing to report large cash transactions to the federal government.

Read more HERE.

G7 foreign ministers’ statement on Hong Kong Legislative Council elections

On December 20, 2021, the G7 Foreign Ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America, and the High Representative of the European Union, noting the outcome of the Legislative Council elections in Hong Kong which took place on 19 December 2021, expressed grave concern over the erosion of democratic elements of the Special Administrative Region's electoral system, stating:

"The package of changes to the electoral system introduced earlier this year in Hong Kong, including the reduction of the number of directly elected seats and the establishment of a new vetting process to severely restrict the choice of candidates on the ballot paper, undermined Hong Kong's high degree of autonomy under the "One Country, Two Systems" principle.

"We strongly reiterate our call on China to act in accordance with the Sino-British Joint Declaration and its other legal obligations, and respect fundamental rights and freedoms in Hong Kong, as provided for in the Basic Law. We also call on the China and the Hong Kong authorities to restore confidence in Hong Kong's political institutions and end the unwarranted oppression of those who promote democratic values and the defense of rights and freedoms."

Hong Kong Autonomy Act Report to Congress

On December 20, 2021, the Hong Kong Autonomy Act Report to Congress was released. It underscores the United States’ deep concerns about Beijing’s clear efforts to deprive Hong Kongers of a meaningful voice in the December 19 Legislative Council (LegCo) elections. The report is available at https://www.state.gov/december-2021-update-to-report-on-identification-of-foreign-persons-involved-in-the-erosion-of-the-obligations-of-china-under-the-joint-declaration-or-the-basic-law/.

Under the Hong Kong Autonomy Act, the Secretary of State is required to update Congress regularly on foreign persons who are materially contributing to, have materially contributed to, or attempt to contribute materially to the failure of the PRC to meet its obligations under the Sino-British Joint Declaration or Hong Kong’s Basic Law, as defined by the Act.

U.S. Federal Holidays 2022

Friday, December 31 New Year’s Day 2022

Monday, January 17 Birthday of Martin Luther King, Jr.

Monday, February 21 Washington’s Birthday

Monday, May 30 Memorial Day

Monday, June 20 Juneteenth National Independence Day

Monday, July 4 Independence Day

Monday, September 5 Labor Day

Monday, October 10 Columbus Day

Friday, November 11 Veterans Day

Thursday, November 24 Thanksgiving Day

Monday, December 26 Christmas Day

USTR Notice of Proposed Changes to the Slate of Industry Trade Advisory Committees.

On December 21, 2021, the Office of the U.S. Trade Representative published in the Federal Register (8 FR 72303) Notice of Proposed Changes to the Slate of Industry Trade Advisory Committees.

Proposed changes include:

  • Dividing the current Industry Trade Advisory on Forest Products, Building Materials, Construction, and Nonferrous Metals into two separate committees with amended names: Industry Trade Advisory Committee on Critical Minerals and Nonferrous Metals (ITAC 5), and Industry Trade Advisory Committee on Forest Products and Building Materials (new ITAC 8).
  • Changing the name of the ITAC on Small and Minority Business (ITAC 8) to the Industry Trade Advisory Committee on Small, Minority, and Woman-led Business to more accurately reflect the full scope of the ITAC’s work.
  • Establishing a Committee of Chairs of the ITACs to facilitate cross-sharing of information and provide a powerful tool to gather timely cross-cutting input across sectors.

Friday, December 17, 2021

2022 Harmonized Schedule 5 Year Update Delayed

U.S. Customs and Border Protection (CBP) understands that the five-year World Customs Organization harmonized tariff schedule update will not take effect January 1, 2022. CBP is awaiting formal direction for this update, which will be implemented by Presidential Proclamation and published in the Federal Register. In the interim, CBP will continue to use the current harmonized tariff schedule and encourages the trade community to do the same until further guidance is provided.

Intellectual Property Rights (IPR) Seizures

Trade in counterfeit and pirated goods threatens America’s innovation economy, the competitiveness of our businesses, the livelihoods of U.S. workers, and, in some cases, national security and the health and safety of consumers. To combat the entry of counterfeit and pirated goods into America, CBP targets and seizes imports of counterfeit and pirated goods, and enforces exclusion orders on patent-infringing and other IPR violative goods.

Customs and Border Protection has published online, interactive maps, and charts HERE.

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)

On December 21, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 71617) the 12-Month Cap on Duty-Free Benefits for the one-year period beginning on December 20, 2021, of 367,770,223 square meters equivalent.

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, 2021 through December 19, 2022, the quantity of imports eligible for preferential treatment under the value-added provision is 367,770,223 square meters equivalent.

Thursday, December 16, 2021

Marine Dress Coat Contract Awarded

Crown Clothing Co., Vineland, New Jersey, has been awarded a maximum $8,486,208 modification (P00003) exercising the first one-year option period of a one-year base contract (SPE1C1-22-D-1432) with four one-year option periods for men’s green dress coats, belts and keepers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is New Jersey, with a Dec. 18, 2022, ordering period end date. Using military service is Marine Corps. Type of appropriation is fiscal 2022 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

AAFA Urges President Biden to Act on Defense Industrial Base Crisis

On December 16, 2021, the American Apparel and Footwear Association, joined by 18 other organizations, urged President Biden to take swift action to avert a crisis that the clothing and textile defense industrial base is facing.

Read the letter HERE.

Cincinnati CBP Seize Fake Jewelry and Scarves Worth over $3 Million

n November 30, 2021, U.S. Customs and Border Protection (CBP) officers in Cincinnati seized a shipment containing counterfeit designer jewelry and scarves. The fakes, which came from China, would have been worth a total of $3.09 million had they been genuine.

CBP officers inspected the shipment and found 1,830 scarves, bracelets, rings, and earrings from designers like Louis Vuitton, Gucci, Cartier, Hermes, Versace, and Chanel. Officers suspected the items were counterfeit based on the packaging and the poor quality of the material. All the items were determined to be counterfeit by CBP’s Centers for Excellence and Expertise (CEEs), the agency’s trade experts. The shipment was enroute to a private residence in Flushing, New York.

Read more HERE.

USTR Request for Comments and Notice of a Public Hearing Regarding the 2022 Special 301 Review

On December 13, 2021, the Office of the U.S. Trade Representative published in the Federal Register (86 FR 70885) Request for Comments and Notice of a Public Hearing Regarding the 2022 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.

Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and the Socialist Republic of Vietnam: Antidumping Duty Orders

On December 13, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 70858) [Investigation Nos. 731–TA–1550–1553 (Final)] Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and Vietnam; Determinations

On the basis of the record \1\ developed in these subject investigations, the United States International Trade Commission (``Commission'') determines, pursuant to the Tariff Act of 1930 (``the Act''), that an industry in the United States is materially injured by reason of imports of polyester textured yarn from Indonesia, Malaysia, Thailand, and Vietnam, provided for in subheadings 5402.33.30 and 5402.33.60 of the Harmonized Tariff Schedule of the United States, that have been found by the U.S. Department of Commerce (‘‘Commerce’’) to be sold in the United States at less than fair value (‘‘LTFV’’).

On December 14, 2021, the U.S. International Trade Administration published in the Federal Register (86 FR 71031) [A–560–838, A–557–823, A–549–843, A–552–832] Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and the Socialist Republic of Vietnam: Antidumping Duty Orders

      The estimated weighted-average dumping margins are as follows:

                                Indonesia
------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
PT. Polyfin Canggih.........................................     * 26.07
PT. Asia Pacific Fibers Tbk.................................     * 26.07
PT. Mutu Gading Tekstil.....................................        7.47
All Others..................................................        7.47
------------------------------------------------------------------------


                                Malaysia
------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Recron (Malaysia) Sdn. Bhd..................................        8.50
All Others..................................................        8.50
------------------------------------------------------------------------


                                Thailand
------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Sunflag Thailand Ltd........................................       14.47
Jong Stit Co., Ltd..........................................     * 56.80
All Others..................................................       14.47
------------------------------------------------------------------------


                                 Vietnam
------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
             Exporter                     Producer            average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
Century Single Entity \7\.........  Century Single                  2.58
                                     Entity.
Vietnam-Wide Entity...............  ....................           22.36
------------------------------------------------------------------------

ITC Will Accept Comments Regarding Importation of Certain Knitted Footwear

On December 15, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 71281) Notice of Receipt of Complaint; Solicitation of Comments Relating to the Public Interest.

The Commission has received a complaint and a submission pursuant to Sec. 210.8(b) of the Commission's Rules of Practice and Procedure filed on behalf of Nike, Inc., on December 9, 2021. The complaint alleges violations of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain knitted footwear. The complainant names as respondents: Adidas AG World of Sports of Germany; adidas North America, Inc. of Portland, OR; and adidas America, Inc. of Portland, OR. The complainant requests that the Commission issue a limited exclusion order, cease and desist orders and impose a bond upon respondents alleged infringing articles during the 60-day Presidential review period pursuant to 19 U.S.C. 1337(j).

Proposed respondents, other interested parties, and members of the public are invited to file comments on any public interest issues raised by the complaint or Sec. 210.8(b) filing. Comments should address whether issuance of the relief specifically requested by the complainant in this investigation would affect the public health and welfare in the United States, competitive conditions in the United States economy, the production of like or directly competitive articles in the United States, or United States consumers.

In particular, the Commission is interested in comments that:

(i) Explain how the articles potentially subject to the requested remedial orders are used in the United States;

(ii) identify any public health, safety, or welfare concerns in the United States relating to the requested remedial orders;

(iii) identify like or directly competitive articles that complainant, its licensees, or third parties make in the United States which could replace the subject articles if they were to be excluded;

(iv) indicate whether complainant, complainant's licensees, and/or third party suppliers have the capacity to replace the volume of articles potentially subject to the requested exclusion order and/or a cease and desist order within a commercially reasonable time; and

(v) explain how the requested remedial orders would impact United States consumers.

Statement by Ambassador Katherine Tai on the Passage of the Uyghur Forced Labor Prevention Act

On December 16, 2021, United States Trade Representative Katherine Tai released the following statement on passage by the United States Congress of the Uyghur Forced Labor Prevention Act. The bill will now go to President Biden’s desk to be signed into law.

“This bill represents our country’s commitment to protecting human dignity and leading the fight against forced labor. We have a moral and economic imperative to eliminate this practice from our global supply chains, including those that run through Xinjiang, China, and exploit Uyghurs and other ethnic and religious minorities.

“This fall in London, the G7 trade ministers released a Joint Statement affirming our belief that there is no place for forced labor in a rules-based multilateral trading system. By passing this bill with strong, bipartisan support, the United States can set an example for the world to follow.

“I am grateful to Congress for its leadership and look forward to continuing this necessary work with our trading partners and allies to ensure every worker is treated with respect and dignity – no matter where they live.”

Advisory Committee on Supply Chain Competitiveness Solicitation of Nominations for Membership

On December 16, 2021, the U.S. International Trade Administration published in the Federal Register (86 FR 71420) Advisory Committee on Supply Chain Competitiveness Solicitation of Nominations for Membership.

The Department of Commerce, International Trade Administration (ITA), seeks nominations for immediate consideration to fill positions on the Advisory Committee on Supply Chain Competitiveness (``the Committee''). The Committee advises the Secretary on the necessary elements of a comprehensive policy approach to supply chain competitiveness. The Department intends for the Committee to play a key role in formulating recommendations to address current global supply chain challenges, including identifying key bottlenecks in supply chains and actionable solutions to address them, advising on the latest advances in supply chain management technology and how to apply them to the current challenges in the economy, and developing long term recommendations to make supply chains more resilient. The Department seeks members who, by virtue of their current roles and past experience, bring a track record of effective senior executive leadership on issues impacting the U.S. and global supply chains.

Joint Statement from AAFA, NAFTZ, NRF, RILA, and USFIA Regarding Congressional Passage of the Uyghur Forced Labor Prevention Act

On December 16, 2021, AAFA, NAFTZ, NRF, RILA, and USFIA issued the following statement:

"Today’s Congressional passage of the Uyghur Forced Labor Prevention Act, H.R. 6256, is a key component of a broad global strategy, and our shared goal, to end forced labor. We thank Senator Marco Rubio (R-FL), Congressman Jim McGovern (D-MA), Senator Jeff Merkley (D-OR), and Congressman Chris Smith (R-NJ) for their leadership on this legislation.

"Our members are persistent and unyielding in their efforts to identify, root out, and eliminate traces of forced labor in their supply chains, and U.S. Customs and Border Protection (CBP) is a critical partner to supplement our members’ own due diligence. This legislation will amplify that partnership by ensuring CBP can effectively and robustly enforce not only the Uyghur Forced Labor Prevention Act, but the larger forced labor statute, by using a transparent and evidence-based process based on U.S. jurisprudence to target bad actors. These efforts are essential to effectively stop products made with forced labor from entering the United States.

"We look forward to President Biden quickly signing this bill into law and to working with CBP on crafting a smart, comprehensive, effective, and enforceable strategy to carry it out."

About the American Apparel & Footwear Association
The American Apparel & Footwear Association (AAFA) is the national trade association representing apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. Representing more than 1,000 world famous name brands, AAFA is the trusted public policy and political voice of the apparel and footwear industry, its management and shareholders, its three million U.S. workers, and its contribution of more than $350 billion in annual U.S. retail sales. AAFA drives progress on three key priorities: Brand Protection; Supply Chain & Sourcing; Trade, Manufacturing, & Logistics. AAFA approaches this work through the lens of purpose-driven leadership in a manner that supports each member’s ability to build and sustain inclusive and diverse cultures, meet and advance ESG goals, and draw upon the latest technology.

About NAFTZ
NAFTZ is the voice of the U.S. Foreign-Trade Zones program, created by Congress in 1934 to help U.S.-based companies be more globally competitive; maintain U.S.-based activity and jobs; attract investment to American communities; and boost exports through special duty benefits and customs procedures. FTZs account for a significant portion of total U.S. trade – 5.6 percent ($87 billion) of U.S. goods exports and 10.7 percent ($250.6 billion) of U.S. goods imports in 2017. Over 450,000 American workers are employed at FTZs in all fifty states and Puerto Rico.

About NRF
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs – 52 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies.

About RILA
RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad. About USFIA The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade. USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States. Headquartered in Washington, D.C., USFIA is the voice of the fashion industry in front of the U.S. government as well as international governments and stakeholders. With constant, two-way communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow. Through our publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including U.S. and international service providers, suppliers, and industry groups.

Canada and Mexico TPLs for Certain Cotton, Wool and Man-made Fiber Textile Products

U.S. Customs has issued broker guidance for USMCA TPLs for the quota period January 1, 2022 - December 31, 2022.

Mexico TPLs.

Canada TPLs,

Wednesday, December 15, 2021

Statement by USTR Spokesperson Adam Hodge on Canada’s Digital Services Tax As Described in Canada’s Notice of Ways and Means Motion to Introduce an Act to Implement a Digital Services Tax

On December 15, 2021, the Office of the U.S. Trade Representative issued the following statement:

“The Office of the United States Trade Representative (USTR) is concerned with Canada’s announcement that it will continue to pursue a unilateral Digital Service Tax (DST). As noted in comments to Canada regarding the DST described in Canada’s 2021 budget document, most DSTs have been designed in ways that discriminate against U.S. companies, as they single out American firms for taxation while effectively excluding national firms engaged in similar lines of business. USTR continues to strongly oppose any new DSTs adopted by our trading partners.

“The standstill on new digital services taxes prior to the implementation of Pillar One of the October 8 OECD/G20 agreement is an important part of the new architecture for international taxation, which Canada joined. That agreement will help end the race to the bottom over multinational corporate taxation by leveling the corporate tax playing field. Canada’s proposed DST would create the possibility of significant retroactive tax liabilities with immediate consequences for U.S. companies.

“If Canada adopts a DST, USTR would examine all options, including under our trade agreements and domestic statutes.”

Thursday, December 9, 2021

AAFA Welcomes House Passage of Ocean Shipping Reform Act of 2021 and Urges Swift Senate Approval

WASHINGTON, D.C. – December 8, 2021 – The American Apparel & Footwear Association applauded bipartisan passage of the Ocean Shipping Reform Act of 2021 (OSRA21) in the House of Representatives today. This bill would require the Federal Maritime Commission (FMC) to establish and enforce rules regarding minimum service requirements for shippers, respond to breaches of contracts, and address excessive and unjust detention and demurrage fees. These practices – left unchecked for much of the year – have undermined the U.S. economic recovery, compounded U.S. inflation rates, delayed billions of dollars in cargo, and stranded hundreds of ships off of American coastlines.

“The Ocean Shipping Reform Act directly addresses many of the issues that have created today’s shipping crisis, causing the biggest headwinds facing the U.S. recovery and eroding American value. AAFA encourages equally swift passage of OSRA by the Senate to stem the tide of this disaster, and benefit all Americans by helping to bring this crisis under control while preventing future crises,” said Steve Lamar, president and CEO of

the American Apparel & Footwear Association.

“Any reports that the shipping crisis is in the rearview mirror have been premature. Rather, we are seeing deteriorating conditions and swelling impacts across our global supply chains. Once passed, OSRA21 will reduce or eliminate carrier price gouging, epic freight costs, record delays

– and other unfair and excessive punitive fees that only fuel inflationary pressures.

“The apparel, footwear, and retail industry is pleased to see the Biden Administration escalating its concerns and attention on this issue as well, including expressing strong support for this legislation. In that vein, we call on the Biden administration to bring all stakeholders to the table to continue working on immediate actions to unsnarl the current shipping logjams and to require the FMC to fulfill its oversight role to address price gouging and other malpractices. Recognizing that unblocking these bottlenecks will take months, we also continue to urge the Biden administration to provide broad and immediate tariff relief to American businesses today, by using its powers under Section 301 to eliminate the unending punitive tariffs on U.S. imports from China, and by urging Congress to immediately and retroactively renew critical trade preference progra

ms including the Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB) before year’s end.

"Th

ank you again to Representatives John Garamendi (D-CA) and Dusty Johnson (R-SD) for their leadership in championing this important bill."

Today, AAFA sent a letter to House Speaker Nancy Pelosi and Republican Leader Kevin McCarthy urging that the House vote “YES” on H.R. 4996 to strengthen the overseas supply chain and ensure fairness in the global ocean shipping industry. This follows numerous calls to action for President Biden and to the FMC regarding the shipping crisis (#ShippingCrisis).

A New Pantone Color Whose Courageous Presence Encourages Personal Inventiveness And Creativity

Displaying a carefree confidence and a daring curiosity that animates our creative spirit, inquisitive and intriguing PANTONE 17-3938 Very Peri helps us to embrace this altered landscape of possibilities, opening us up to a new vision as we rewrite our lives. Rekindling gratitude for some of the qualities that blue represents complemented by a new perspective that resonates today, PANTONE 17-3938 Very Peri places the future ahead in a new light.

We are living in transformative times. PANTONE 17-3938 Very Peri is a symbol of the global zeitgeist of the moment and the transition we are going through. As we emerge from an intense period of isolation, our notions and standards are changing, and our physical and digital lives have merged in new ways. Digital design helps us to stretch the limits of reality, opening the door to a dynamic virtual world where we can explore and create new color possibilities. With trends in gaming, the expanding popularity of the metaverse and rising artistic community in the digital space PANTONE 17-3938 Very Peri illustrates the fusion of modern life and how color trends in the digital world are being manifested in the physical world and vice versa.

“The Pantone Color of the Year reflects what is taking place in our global culture, expressing what people are looking for that color can hope to answer.” added Laurie Pressman, Vice President of the Pantone Color Institute. “Creating a new color for the first time in the history of our PANTONE Color of the Year educational color program reflects the global innovation and transformation taking place. As society continues to recognize color as a critical form of communication, and a way to express and affect ideas and emotions and engage and connect, the complexity of this new red violet infused blue hue highlights the expansive possibilities that lay before us”.

Encompassing the qualities of the blues, yet at the same time possessing a violet-red undertone, PANTONE 17-3938 Very Peri displays a spritely, joyous attitude and dynamic presence that encourages courageous creativity and imaginative expression.

Wednesday, December 8, 2021

Mark of Fifth Avenue Children’s Robes Recalled Due to Violation of Federal Flammability Standard and Burn Hazard

Description: This recall involves Star Art in Linen-branded children’s 100% polyester robes. The robes were sold in six children’s sizes 2, 3-4, 5-6, 6-7, 7-8, and 10-12 in the following seven colors: black, navy, blue plaid, red plaid, red, royal blue, and gray. The long-sleeved robes have two front pockets and two side seam belt loops with a matching belt. “Made in China” and “100% Polyester” are printed on a sewn-in label in the robes seam.

Remedy: Consumers should immediately take the recalled children’s robes away from children and contact Mark of Fifth Avenue. Consumers can receive a full refund of the purchase price of the garment by cutting the robes in half, taking a photo of the cut garment, and sending an email to mofaproductsafety@gmail.com with the photos. All known purchasers will be contacted.

Incidents/Injuries: None reported

Sold At Online at www.Amazon.com and www.Walmart.com from August 2019 through June 2021 for between $35 and $45.

Manufacturer(s): Mark of Fifth Avenue, of Harriman, N.Y.

Manufactured In: China

Recall number: 22-027

More information as photo HERE.

Cashmere and Camel Hair Manufacturers Institute’s False Advertising Lawsuit Resolved

On December 7, 2021, the Cashmere and Camel Hair Manufacturers Institute (“CCMI”) announced that its false advertising and unfair competition action in the U.S. District Court for the District of Massachusetts, entitled CCMI v. Amazon.com, Inc. and CS Accessories LLC, Case No. 1:21-cv-11872-WGY, has been finally resolved, avoiding the need for a trial that was scheduled to commence in Boston on Tuesday, December 7, 2021.

CCMI’s legal action, filed in the U.S. federal court on November 18, 2021, had challenged the advertising and sale of purported “100% Cashmere” garments on Amazon websites in the U.S. and abroad that CCMI had tested and found to be 100% Acrylic, Polyester, and other synthetic materials. As part of the resolution of the action, a major supplier of many of the garments, defendant CS Accessories, agreed to the entry of a Final Judgment permanently enjoining it from advertising or selling garments of any kind falsely labeled as “Cashmere.”

Fabio Garzena, President of CCMI, said that “CCMI and Amazon have resolved their dispute and look forward to collaborating to protect the interests of Cashmere customers, manufacturers, and sellers.” CCMI has a long history of working to help maintain the integrity of the Cashmere marketplace by providing important information about Cashmere’s value as a high quality luxury fabric, identifying reliable Cashmere testing laboratories and services, and pursuing legal action where appropriate to challenge the mislabeling of purported Cashmere garments and fabric.

CCMI’s legal action presented a number of important intellectual property and competition law issues related to the advertising and sale of counterfeit products over the internet in the international marketplace. CCMI was represented in the action by Robert J. Kaler, a partner in the international law firm of Holland & Knight LLP.

For further information contact: James Coleman, CCMI USA Representative in Boston, MA, at jcoleman@cashmere.org

Tuesday, December 7, 2021

Registration is Open for Smart Fabrics Summit 2022

Registration is now open for Smart Fabrics Summit 2022 taking place Mar. 28–29, 2022 at North Carolina State University in Raleigh, NC. This 2-day event offers engaging education, product showcases, facility tours and networking opportunities.

For more information or to register CLICK HERE.

Apparel and Footwear Industry Welcomes Introduction of Legislation to Renew Haiti Hope and Help Acts

On December 6, 2021, the American Apparel & Footwear Association released a statement on the introduction of legislation to extend the Haitian Hemisphere Opportunity through Partnership Encouragement (HOPE) Act and the Haitian Economic Lift Program (HELP) Act until 2035.

“Haiti is an important partner to the industry, both as a source of finished apparel and a market for American-made components,” said Steve Lamar, president and CEO of the American Apparel & Footwear Association. “Haiti has experienced many hardships in recent years, from natural disasters to political unrest. Renewing these programs encourages companies to continue to work in Haiti and grow the industry there. While a stronger industry is beneficial for the Haitian people, it also supports thousands of American jobs that rely on Haiti as a market for U.S.-made textiles. Thank you to Senators Rubio and Cassidy, and Representatives Salazar and Wilson for introducing this important legislation.”

Haiti is currently the 13th largest source of apparel to the U.S. market, representing 1.36% of imports by volume. Key to the country’s growth as a sourcing partner has been the 1983 Caribbean Basin Economic Recovery Act, and the amendments that were made to it via the Caribbean Basin Trade Partnership Act (CBTPA), the Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act, and the Haiti Economic Lift Program (HELP) Act.

Companion bills have been introduced in both the Senate and the House of Representatives to extend these programs.

Under current law, the preferences under HOPE/HOPE II/HELP will expire in 2025.

Monday, December 6, 2021

Wool Trust Fund Final Rule Published

On December 6, 2021, the U.S. Department of Agriculture published in the Federal Register (86 FR 68875) Pima Agriculture Cotton Trust Fund (Agriculture Pima Trust) and Agriculture Wool Apparel Manufacturers Trust Fund (Agriculture Wool Trust).

The program regulations were last updated in 2019 to incorporate changes introduced in the Agriculture Improvement Act of 2018 (2018 Farm Bill; Pub. L. 115–334), but the Commodity Credit Corporation (CCC) has identified areas where technical corrections are necessary to remove unnecessary and outdated references and dates. This final rule makes those technical corrections where needed.

US-Korea FTA Short Supply Request for Triacetate Filament Filed

On December 6, 2021, the Committee for the Implementation of Textile Agreements published in the Federal Register (86 FR 69019) Request for Public Comment on a Commercial Availability Request Under the United States-Korea Free Trade Agreement.

The request relates to certain textured and non-texturedtriacetate filament (subheading 5403.33 HTSUS) for use in the production of Woven fabric of artificial filament yarn, including woven fabric obtained from material of heading 5405 (heading 5408 HTSUS).\

Comments are due by January 5, 2022.

Friday, December 3, 2021

Army Jacket Contract Awarded

National Industries for the Blind, Alexandria, Virginia, has been awarded a maximum $15,585,000 modification (P00001) exercising the first one-year option period of a one-year base contract (SPE1C1-21-D-B102) with two one-year option periods for physical fitness uniform jackets. This is an indefinite-delivery contract. Locations of performance are Virginia, Maryland, North Carolina and Arkansas, with a Dec. 14, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2022 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Thursday, December 2, 2021

Army Coat and Trouser Contract Awarded

M&M Manufacturing LLC, Lajas, Puerto Rico, has been awarded a maximum $9,969,600 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for improved hot weather combat uniform female coats and trousers. This was a competitive acquisition with 12 responses received. This is a one-year base contract with four one-year option periods. Location of performance is Puerto Rico, with a Nov. 30, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2022 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-22-D-1517).

USTR Deputies’ Roundtable Discussion with the American Apparel & Footwear Association

On December 1, 2021, Deputy United States Trade Representatives Sarah Bianchi and Jayme White co-chaired a roundtable discussion with senior representatives of the American Apparel & Footwear Association (AAFA) to discuss how U.S. apparel brands and retailers can support new economic opportunities in Central America, especially in El Salvador, Guatemala, and Honduras, under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). Michael Pyle, Chief Economic Advisor to the Vice President, also participated.

The participants discussed recent shifts in global sourcing of apparel and related opportunities to expand sourcing of apparel for the U.S. market from the Western Hemisphere, including Central America. Senior executives of AAFA member companies shared their ideas for how U.S. trade policy can promote U.S. textile and apparel investment and incentivize production of a greater scale and variety of apparel products in the CAFTA-DR region. Ambassadors White and Bianchi underscored the importance of the agreement’s rules of origin in promoting investment in textile production and supporting manufacturing jobs in both Central America and the United States. They also expressed USTR’s commitment to work with AAFA and other stakeholders to promote greater reshoring and near-shoring of apparel production and to do so in a way that strengthens the North American supply chain for textiles and apparel.

Joint statement on December 2 sanctions in response to situation in Belarus

On December 2, 2021, the following statement was released by Canada, the European Union, the United Kingdom and the United States of America:

Today, in response to the continuing attacks on human rights and fundamental freedoms in Belarus, the disregard for international norms and the repeated acts of repression, we have again taken coordinated sanctions action against certain individuals and entities.

We remain committed to supporting the democratic aspirations of the people of Belarus and stand together to impose costs on the regime—and those who support it—for its efforts to silence the voices of independent civil society, media and all Belarusians seeking to speak the truth about what is happening in their country.

We again demand that the Lukashenko regime immediately and completely halt its orchestrating of irregular migration across its borders with the EU. Those—in Belarus or in third countries—who facilitate illegal crossing of the EU’s external borders should know this comes at a substantial cost.

We call for the regime to unconditionally and without delay release its almost 900 political prisoners, end its campaign of repression and implement the recommendations of the independent expert mission under the Organization for Security and Co-operation in Europe’s (OSCE’s) Moscow Mechanism and take meaningful action to address the concerns raised under the OSCE’s Vienna Mechanism. The regime should promptly enter into comprehensive and genuine political dialogue with representatives of the democratic opposition and civil society, facilitated by the OSCE, leading to new, free and fair presidential elections under international observation.

Termination of Action in the Digital Services Tax Investigation of India

On Decemember 2, 2021, the Office of the United States Trade Representative published in the Federal Register (86 FR 6852) Termination of Action in the Digital Services Tax Investigation of India and Further Monitoring.

This actioon averts additional tariffs Certain wool yarn and certain brassieres from India

ATTENTION Holiday Shoppers: CBP Just Seized Over $30 Million Worth of Fake Designer Products

On November 9, 2021, U.S. Customs and Border Protection (CBP) officers assigned to the Los Angeles/Long Beach Seaport in coordination with Import Specialists from the Consumer Products and Mass Merchandising (CPMM) Center of Excellence and Expertise intercepted 13,586 counterfeit designer products arriving in a containerized cargo shipment from China.

Read more HERE.

NCTO President & CEO Kim Glas Testifies on Supporting U.S. Industry in Face of Unfair Chinese Trade Practices at House Ways and Means Trade Subcommittee Hearing

On December 2, 2021, NCTO President and CEO Kim Glas is testifying today at a hearing on “Supporting U.S. Workers, Businesses, and the Environment in the Face of Unfair Chinese Trade Practices” before the House Ways and Means Trade Subcommittee at 10:00 a.m. ET.

In written testimony submitted to the committee, Glas outlines China’s rise to dominance of global textile and apparel production and its adverse impact on the U.S. textile industry, details ways to strengthen onshoring and nearshoring of supply chains, and provides recommendations on the critical policies needed to address these illegal trade practices and rectify inequities.

“China holds the dubious distinction of being the world’s leading purveyor of illegal trade practices that are designed to unfairly bolster a blatantly export-oriented economy,” NCTO President and CEO Kim Glas says. “These predatory practices take many forms, from macroeconomic policies that grant across-the-board advantages to their manufacturers, to industry specific programs intended to dominate global markets in targeted areas. The U.S. textile industry has been a longstanding victim of China’s predatory export practices.”

“China’s virtually unlimited and unrealistic pricing power coupled with its subsidies and lack of enforceable labor and environmental standards strips benefits and undermines policy objectives throughout the U.S. free trade and preference program structure,” Glas further notes.

“A program of maximum pressure must be developed and fully enforced to reconfigure textile and apparel sourcing patterns that currently place an unhealthy and heavily weighted dependance on China,” Glas adds. “With a strong trade policy holding China accountable, the opportunities are ripe to unlock further domestic and regional investment to bolster this critical textile and apparel production chain because of the important rules of origin for this sector. We can nearshore more production, help address the migration crisis, and assist in addressing the urgent issue of climate change and create a win-win-win for workers in the United States, workers in the region, and consumers.”

Glas outlines key policy recommendations to the committee, including:

  • Enact tax incentives and other targeted critical investments to strengthen Western Hemisphere trade relationships and re-shore manufacturing
  • Close the Section 321 De Minimis Tariff Loophole
  • Step up enforcement of forced labor of Uyghurs and others in the Xinjiang Uyghur Autonomous Region (XUAR)
  • Firmly maintain Section 301 penalty duties on China for finished textiles and apparel products
  • Immediately pass the MTB to help manufacturers with a limited list of critical inputs not made in the U.S. and review/close the mechanism in the MTB renewal which allows for finished products
  • Strengthen buy-American practices for PPE and other essential products
  • Block expansion of the Generalized System of Preferences (GSP) to include textile and apparel products
  • Use trade enforcement in free trade agreements to mitigate transshipment schemes by unscrupulous importers seeking to illegally circumvent duties

Please view the full written testimony by NCTO President and CEO Kim Glas here.