Too Good to Be True as CBP Seizes Multiple Counterfeit Products Valued at Over $100,000

U.S. Customs and Border Protection (CBP) officers at the Rochester Port of Entry seized a variety of designer items for bearing counterfeit trademarks.

Over the past month and a half, CBP officers at the port of Rochester inspected several shipments that contained multiple “designer” handbags, wallets, clothing, and shoes, amongst other items. After a thorough examination of the merchandise, all the items were determined to be inauthentic and were seized for bearing counterfeit trademarks. Had these items been genuine, the total Manufacturer Suggested Retail Price (MSRP) value would have been approximately $105,202 dollars.

More information HERE.

Federal Prison Industries Win Extreme Cold/Wet Weather Jacket Contract

March 26, 2024, Federal Prison Industries,** doing business as UNICOR, Washington, D.C., has been awarded a maximum $16,513,875 modification (P00002) exercising the first one‐year option period of a one‐year base contract (SPE1C1‐23‐D‐0017) with three one‐year option periods for extreme cold/wet weather jackets. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Kentucky, with a March 27, 2025, ordering period end date. Using military services are Army and Air Force. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

**Mandatory Source

Extreme Cold/Wet Weather Jacket Contract Awarded

March 26, 2024, Valley Apparel LLC,* Knoxville, Tennessee, has been awarded a maximum $17,121,825 modification (P00003) exercising the first one‐year option period of a one‐year base contract (SPE1C1‐23‐D‐0016) with three one‐year option periods for extreme cold/wet weather jackets. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. The ordering period end date is March 27, 2025. Using military services are Army and Air Force. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

*Small Business

Air Force and Army Beret Contact Awarded to Rhode Island Company

March 25, 2024, Hyman Brickle & Son Inc.,* Woonsocket, Rhode Island, has been awarded a maximum $12,487,118 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for men’s berets. This was a competitive acquisition with three responses received. This is a four-year contract with no option periods. The ordering period end date is March 24, 2028. Using military services are Air Force and Army. Type of appropriation is fiscal 2024 through 2028 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-24-D-0041).

*Small Business

Navy Footwear Contract Awarded

March 22, 2024, McRae Industries Inc.,* Mt. Gilead, North Carolina, has been awarded a maximum $14,615,478 modification (P00006) exercising the second one-year option period of a one-year base contract (SPE1C1-22-D-1532) with two one-year option periods for general purpose and flight deck safety boots. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. The ordering period end date is March 22, 2025. Using military service is Navy. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. *Small Business

Navy and Air Coast Apparel Contract Awarded

March 21, 2024, BestWork Industries for the Blind Inc.,** Cherry Hill, New Jersey, has been awarded a maximum $14,188,032 modification (P00010) exercising the second one‐year option period of a one‐year base contract (SPE1C1‐22‐D‐B124) with two one‐year option periods for fleece liners. This is a firm‐fixed‐price, indefinite‐delivery/indefinite‐quantity contract. The ordering period end date is March 23, 2025. Using customers are Navy and Coast Guard. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

**Mandatory Source

Army Jacket Contract Awarded

March 21, 2024, Blind Industries and Services of Maryland,** Baltimore, Maryland, has been awarded a maximum $16,881,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for physical fitness uniform jackets. This is a one-year base contract with two one-year option periods. Locations of performance are North Carolina and Virginia, with a March 20, 2025, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-24-D-B014).

**Mandatory Source

Court Ruling on "Parts" versus "Inputs"

In March 20, 2024, Customs Bulletin Vol. 58, No. 11 ( beginning on page 6) the U.S. Court of Appeals for the Federal Circuit case RKW KLERKS INC., Plaintiff-Appellant v. UNITED STATES, DefendantAppellee is reported.

BACKGROUND: RKW imports two types of net wrap, marketed as “Top Net” and “Rondotex” (collectively, Netwraps). The Netwraps are synthetic fabrics used to wrap round bales of harvested crops released from baling machines such that the bales maintain their compressed structure and are easier to transport. The Netwraps are made up of highdensity polyethylene (HDPE) film layers that have been knit on a Raschel machine and wrapped around a cardboard core.

At issue in this case is the proper classification of the Netwraps in the HTSUS. Customs classified the Netwraps under HTSUS Chapter 60 under subheading 6005.39.00 as “warp knit fabric,” dutiable at the rate of 10% ad valorem.

After Customs’s initial classification, RKW filed a protest, which was deemed denied. RKW then appealed to the CIT, filing a motion for summary judgment. The government filed a cross-motion for summary judgment. In its motion, RKW contended that the Netwraps should instead be classified under Chapter 84, subheading 8433.90.50 as “parts” of harvesting machinery or alternatively subheading 8436.99.00 as “parts” of other agricultural machinery

The Court concluded the the Netwraps are a disposable input and not a part of round baling machines.

Short Supply Request: Polyester/Cotton/Nylon Double Face Jacquard Knitted Fabric&

SPECIFICATIONS: Certain Double-Knit Jacquard Fabric

HTS: 6006.33

Fabric Type: Polyester/Cotton/Nylon Double Face Jacquard Knitted Fabric

Fiber Content: 55% to 65% Polyester / 30% to 40% Cotton / 3% to 6% Nylon

Yarn Size:

• Face: 100% Polyester Filament yarn 100 to 200 Denier
• Tie: 100% Nylon 10 to 40 Denier
• Back: 100% Cotton 20/1 to 34/1

Fabric Weight:

• Metric: 200-340 GM2
• English: 5.8-10.03 ounces per square yard

Weave Type: Double Knit Jacquard

Fabric Width:

• Metric: 152-195 cm
• English: 59.8-76.8 inches

Finish: Yarn Dye of Various Color

Remarks: 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 mills 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 yarns appearing in the finished fabric as finer or coarser than the designated 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.

FTC Announces Tentative Agenda for March 21 Open Commission Meeting

Today, Federal Trade Commission Chair Lina M. Khan announced that an open meeting of the Commission will be held virtually on Thursday, March 21, 2024. The open meeting will commence at 11am ET and will begin with time for members of the public to address the Commission.

The following items will be on the tentative agenda for the March 21 Commission meeting:

Business Before the Commission:

Presentation on the Telemarketing Sales Rule Amendments:

Staff of the Division of Marketing Practices will give a presentation on the Commission’s finalization of an amendment to the Telemarketing Sales Rule (TSR), prohibiting misrepresentations in business-to-business telemarketing calls and requiring more robust record-keeping, and the Commission’s decision to issue a notice of proposed rulemaking seeking to amend the TSR to apply its protections to inbound telemarketing calls selling technology support services. 

Supply Chain Report:

The Commission will discuss a report on the causes behind supply chain disruptions. The report will summarize FTC staff findings concerning how supply chain disruptions are affecting consumer goods suppliers and retailers, with a focus on whether disruptions disproportionately affect smaller retailers and other areas of competitive interest. The report stems from orders the FTC issued in late 2021 to nine large retailers, wholesalers, and consumer good suppliers.

At the start of the meeting, Chair Khan will offer brief remarks and will then invite members of the public to share feedback on the Commission’s work generally and bring relevant matters to the Commission’s attention. Members of the public must sign up for an opportunity to address the Commission virtually at the March 21 event.

Each commenter will be given two minutes to share their comments. Those who cannot participate during the event may submit written comments or a link to a prerecorded video through a webform. Speaker registration and comment submission will be available through Tuesday, March 19, 2023 at 8 pm ET.

A link to the event will be available on the day of the event, shortly before the meeting starts via FTC.gov. The event will be recorded, and the webcast and any related comments will be available on the Commission’s website after the meeting. The Commission retains discretion to make public comments available following the event on ftc.gov.

Fine Denier Polyester Staple Fiber; Institution of Investigation, Scheduling of Public Hearings, and Determination That the Investigation Is Extraordinarily Complicated

On March 13, 2024, the International Trade Commission published in the Federal Register (89 FR 18435) Notice of institution of investigation and scheduling of publichearings.

Federal Prison Industries Awarded Jacket Contract

March 13, 2024, Federal Prison Industries,** doing business as UNICOR, Washington, D.C., has been awarded a maximum $14,025,000 modification (P00003) exercising the first one-year option period of a one-year base contract (SPE1C1-23-D-0037) with two one-year option periods for physical fitness uniform jackets. This is an indefinite-delivery contract. Location of performance is Illinois, with a March 26, 2025, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

**Mandatory source

Trouser Contract Awarded

March 12, 2024, Bethel Industries Inc.,* Jersey City, New Jersey, has been awarded a maximum $8,040,600 modification (P00010) exercising the second one-year option period of a one-year base contract (SPE1C1-22-D-1559) with three one-year option periods for trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Kentucky and Mississippi, with a March 11, 2025, ordering period end date. Using military services are Army and Air Force. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

*Small Business

Army and Air Force Trouser Contract Awarded

March 12, 2024, M&M Manufacturing LLC,* Lajas, Puerto Rico, has been awarded a maximum $8,446,500 modification (P00011) exercising the second one‐year option period of a one‐year base contract (SPE1C1‐22‐D‐1519) with three one‐year option periods for trousers. This is a firm‐fixed‐price, indefinite‐delivery/indefinite‐quantity contract. The ordering period end date is March 11, 2025. Using military services are Army and Air Force. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

*Small Business

Clothing Wholesaler Executive Sentenced to 4 Years in Prison for Customs Fraud Scheme to Avoid Paying Millions of Dollars in Duties

A Paramount-based clothing wholesale company executive was sentenced today to 48 months in federal prison for undervaluing imported garments in a scheme to avoid paying millions of dollars in customs duties.

Mohamed Daoud Ghacham, 40, of Bell, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay $6,390,781 in restitution.

Ghacham pleaded guilty in December 2022 to one count of conspiracy to pass false and fraudulent papers through a customhouse.

Ghacham’s company, Ghacham Inc., which does business under the “Platini” brand name, imported clothing from China and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments, allowing the company to avoid paying the full amounts of tariffs owed on the imports.

Read more HERE.

TJX Recalls Children’s Brown Stretch Twill Pants Sets Due to Choking Hazard; Sold Exclusively at Marshalls

This recall involves Tommy Bahama brand brown stretch twill children’s pants with rib cuffs and with a drawstring that were sold as part of a set with either a blue or green butter fleece crewneck top with an embroidered winking smiley face by the left shoulder. The pants were sold in sizes 18M to 5T. The sewn-in label on the pants is printed with “Suzhou Megatex Import And Export” and the style number CP08513. Only the pants in the set are included in this recall.

Remedy: Consumers should immediately take the recalled pants away from children and cut off the faux drawstrings to eliminate the hazard. Consumers can also contact TJX for instructions on how to destroy the pants and obtain a full refund. Consumers can also return the pants to any Marshalls store for a full refund.

Incidents/Injuries: None reported

Sold At: Marshalls stores nationwide from December 2023 through February 2024 for $13 (set with green top) and $15 (set with blue top).

Importer: The TJX Companies Inc., of Framingham, Massachusetts

Manufactured In: China

Recall number: 24-152

More information and photos HERE.

Request for Comments on Promoting Supply Chain Resilience

On March 7, 2024, the Office of the U.S. Trade Representative published in the Federal Register (89 FR 16608) Request for Comments on Promoting Supply Chain Resilience.

USTR invites comments to inform the development of trade and investment policy initiatives that promote supply chain resilience.

Commenters should submit information related to one or more of the following questions:

1. How can U.S. trade and investment policy, in conjunction with relevant domestic incentive measures, better support growth and investment in domestic manufacturing and services?

2. What existing or new tools could help ensure that growth in domestic manufacturing and services does not undergo the same offshoring that we have experienced over the past few decades?

3. How can U.S. trade and investment policy promote a virtuous cycle and ``race to the top'' through stronger coordination and alignment on labor and environmental protections within trusted networks among regional and like-minded trading partners and allies?

4. What are examples of trade and investment policy tools that potentially could be deployed in the following sectors to enhance supply chain resilience? In these sectors, what features of the current policy landscape are working well, or less well, to advance resilience?

• Aerospace and aerospace components.
• Agriculture, forestry, and fisheries.
• Automobiles and automotive parts.
• Call centers, business processing operations, and related services.
• Critical minerals, including for electric vehicle and large-scale energy storage batteries, and related recycling.
• Metals.
• Pharmaceutical and medical goods.
• Semiconductors, microelectronics, and inputs thereto.
• Renewable energy generation, transmission, and storage, including solar and wind technology and inputs thereto.
• Textiles, such as yarns, fabrics, apparel, and other finished goods.

5. What additional sectors may need dedicated trade and investment policy approaches to advance supply chain resilience? What should such approaches entail? With respect to those sectors, what features of the current policy landscape are working well, or less well, to advance resilience?

6. Across sectors, how does access to capital equipment, manufacturing equipment, and technology support supply chain resilience for U.S. producers, and is there a role for trade and investment policy?

7. How can the development of technical standards and regulations support supply chain resilience?

8. There is concern that preferential rules of origin in free trade agreements can operate as a ``backdoor'' benefiting goods and/or firms from countries that are not party to the agreements and are not bound by labor and environmental commitments. What actions could be taken to mitigate these risks and maximize production in the parties? What policies could support strong rules of origin and adherence to rules of origin?

9. What factors are driving supply chain and sourcing decisions, and how does trade and investment policy impact them? How do companies factor geopolitical risk into their global and domestic manufacturing and sourcing decisions? How do companies take into account traceability and transparency considerations in supply chain and sourcing decisions?

10. To what extent is supply chain resilience shaping capital allocation decisions among industry and investors?

11. How can supply chain resilience be measured, including the costs of insufficient resilience, and the impacts of trade and investment policy on resilience? What are appropriate quantitative or qualitative data to consider?

12. How can U.S. trade and investment policy support supply chains that are inclusive of small disadvantaged businesses and underserved businesses, including minority-owned and women-owned businesses, veteran-owned businesses, service-disabled veteran owned small businesses, and HUBZone businesses,

Men's and Women's Dress Oxford Shoe Contract Awarded

March 6, 2024, Capps Shoe Co. LLC,* Gretna, Virginia, has been awarded a maximum $22,357,715 fixed-price, indefinite-delivery/indefinite-quantity contract for men's and women's dress oxford shoes. This was a competitive acquisition with three responses received. This is a three-year contract with no option periods. Location of performance is Michigan, with a March 6, 2027, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2024 through 2027 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-24-D-0037).

*Small Business

Marine Blouse and Trouser Contract Awarded

March 5, 2024, Pentaq Manufacturing Corp.,** Sabana, Puerto Rico, has been awarded a maximum $14,281,650 modification (P00012) exercising the first one-year option period of a one-year base contract (SPE1C1-23-D-0035) with four one-year option periods for blouses and trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. The ordering period end date is March 9, 2025. Using military service is Marine Corps. Type of appropriation is fiscal 2024 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-23-D-0035).

**Small business in historically underutilized business zones

Lightweight Jacket Contract Awarded

March 5, 2024, Bernard Cap LLC,* Hialeah, Florida, has been awarded a maximum $43,907,294 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for men’s, woman’s and General Officer lightweight jackets. This was a competitive acquisition with five responses received. This is a five-year contract with no option periods. The ordering period end date is March 4, 2029. Using military service is Air Force. Type of appropriation is fiscal 2024 through 2029 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-24-D-0035).

*Small Business

Air Force and Marine Shoe Contract Awarded

February 29, 2024, Capps Shoe Co. LLC,* Gretna, Virginia, has been awarded a maximum $9,851,474 fixed-price, indefinite-delivery/indefinite-quantity contract for women's poromeric dress shoes. This was a competitive acquisition with one response received. This is a two-year contract with no option periods. The ordering period end date is Feb. 27, 2026. Using military services are Air Force and Marine Corps. Type of appropriation is fiscal 2024 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-24-D-0034).

*Small Business

Vanilla Underground Minecraft TNT Children’s Pajamas Recalled Due to Burn Hazard and Violation of Federal Flammability Regulations; Imported by Premier P

The “Minecraft All Over Creeper TNT” garment is a hooded one-piece pajama with a soft, raised fabric printed with green Creepers and TNTs from the Minecraft video game. There are bright green cuffs on the wrists and ankles, a bright green zipper that extends from the neck to the waist, and a hood. On the front of the neck label is the word “Minecraft” and on the back of the label is “2023 Mojang AB. TM Microsoft Corporation”. On the front of the side-seam label is Vanilla Underground’s logo, “Vanilla Underground”, “vanillaunderground.com” and Vanilla Underground’s address. The back of the side-seam label lists the washing instructions, “Made in China”, “100% Polyester” and “Keep away from fire”.

Remedy: Consumers should immediately take the recalled pajamas away from children, stop using them and contact Vanilla Underground for a full refund. Consumers should destroy the garments by cutting them in half and disposing of them in accordance with local and state recycling laws. Consumers should send a photo of the destroyed garment to customercare@vanillaunderground.com. Upon receipt of the photo, consumers will be issued a full refund of the purchase price.

Incidents/Injuries: None reported

Sold At: Online on amazon.com and vanillaunderground.com from October 2022 through January 2024 for between $42 and $44.

Importer(s): Premier P. LTD, of United Kingdom

Manufactured In: China

Recall number: 24-133

More information and photos HERE