Monday is Columbus Day in the U.S.

Monday, October 8th, is Columbus Day, a federal holiday in the United States. National, State, and local government offices will be closed. Observance of the holiday by the private sector varies from region to region.

Columbus and the Last Hope of Mankind

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

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

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

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

Air Force Apparel Contract Awarded

Creighton AB Inc., Reidsville, North Carolina, has been awarded a maximum $19,918,381 fixed-price contract for various Navy men’s shirts. This is a one-year base contract with four one-year option periods. Maximum dollar amount is for the life of the contract. This was a competitive acquisition with four responses received. Location of performance is North Carolina, with a Sept. 27, 2023, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2018 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-18-D-1093).

AGOA TPLs Announced

The Africa Growth and Opportunity Act ("AGOA") provides for duty-free entry of apparel assembled in the AGOA region of fabric formed in the U.S. of yarn formed in the U.S. It also provided for a Tariff Preference Level ("TPL") equal to seven percent of all U.S. apparel imports for apparel assembled in the AGOA region of fabric from the AGOA region. The Committee for the Implementation of Textile Agreements ("CITA"), today, announce the TPL for the period October 1, 2018 through September 30, 2019 will be 2,048,357,135 square meter equivalents ("SME"). There is also a TPL for Lesser Developed Countries ("LDCs") in the AGOA region for apparel assembled in an AGOA LDC of third-country fabric. The TPL is set at 3.5 percent of all U.S. apparel imports. Today CITA announced the TPL for the 12-month period starting October 1, 2018 will be 1,024,178,567 SME.

Reminder to the Trade: Free Trade Agreement Treatment of Brassieres

Most persons active in the intimate apparel sector are aware that the rule of origin for brassieres is more generous of third-country components than is the general yarn forward rule. For example, as far back as 1994, the North American Free Trade Agreement provided for a "cut-and-sew" rule for brassieres. However the rules are complex, varying from agreement to agreement. For example, notwithstanding the cut-and-sew rule, sewing thread may need to originate depending on which agreement you are using. Even the definition of what is a "brassiere" versus other upper body garment has been a disputed, even to the extend of court action. Finally, even Customs has been known to get it wrong concerning brassieres and has had to reverse itself.

Clients of Agathon Associates can read summary and analysis of the brassiere rules HERE. You will need your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Iconic American Footwear Brand Allen Edmonds Announces Brand Campaign

Iconic men's brand Allen Edmonds is launching a storytelling campaign that leverages the brand's inherent authority and authenticity in American crafted footwear. The campaign introduces new branding across its marketing platforms inclusive of stores, ecommerce, packaging, catalogs, digital advertising, social media, and a first ever national TV campaign.

The national TV campaign highlights men who wear Allen Edmonds and such as business entrepreneurs, athletes, musicians, artists and adventurers. The men featured in the campaign are in pursuit of their dreams, reinforcing American ideals.

In support of the brand's American heritage, Allen Edmonds is also launching "Artisans of Freedom™," an inspired community of American craftsmen joined in their dedication in creating well-made product grounded in ingenious design. Together, Allen Edmonds and these artisans have partnered to offer consumers the best of the best Made in America apparel items, bags and accessories. Partner brands include:

• ALAN J (eyewear from State Optical, Vernon Hills, Illinois),
• American Woolen (fabrics, Stafford Springs, Connecticut),
• Civilianaire (denim, Los Angeles, California),
• Cockpit USA (outerwear, New York, New York),
• Korchmar (bags, Naples, Florida),
• Gitman Bros. (shirts, Ashland, Pennsylvania),
• Southwick Clothes (suiting, Haverhill, Massachusetts),
• Weiss (watches, Torrance, California) and
• Wigwam Mills (socks, Sheboygan, Wisconsin).

UPDATE: Section 301 Trade Remedies Assessed on Certain Products from China; Third List of Products Subject to the Section 301 Remedy.

The additional import duties for Chinese goods covered by the September 21, 2018 list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on September 24, 2018.

Any article classified in a subheading covered by the September 21 list that is a product of China is subject to a 10% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.

There are two special tariff numbers that will apply to goods covered by the September 21, 2018 list, 9903.88.03 and 9903.88.04. Heading 9903.88.03 covers all subheadings listed in U.S. note 20(f) to Subchapter III to Chapter 99 (5,734 eight-digit HTSUS subheadings); heading 9903.88.04 covers all subheadings listed in U.S. note 20(g) to Subchapter III to Chapter 99 (11 eight-digit HTSUS subheadings with partial exceptions at the 10-digit level).

In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the relevant 9903.88.03 or 9903.88.04 special tariff number for goods subject to the additional duty assessment of 10% ad valorem as a result of the Section 301 trade remedy.

9903.88.03: 10% ad valorem additional duty for articles the product of China,… as enumerated in U.S. note 20(f) to Subchapter III to Chapter 99.

9903.88.04: 10% ad valorem additional duty for articles the product of China,… as enumerated in U.S. note 20(g) to Subchapter III to Chapter 99.

Please note that in accordance with Annex B to the September 21, 2018 notice of action, effective 12:01 AM Eastern Standard Time on January 1, 2019, the additional rates of duty imposed by headings 9903.88.03 and 9903.88.04 will increase to 25% ad valorem.

The product descriptions provided in Annex C to the September 21, 2018 notice of action are provided for informational purposes only, and are not legally controlling. The provisions of the relevant HTSUS subheadings listed in Annex A are controlling for the purpose of determining whether a good is subject to the Section 301 remedy.

New Statistical Reporting Number for Subheading 8517.62.00, HTSUS

U.S. note 20(g)(2) to Subchapter III to Chapter 99 indicates that heading 9903.88.04 applies to articles classified in subheading 8517.62.00, except for machines provided for in statistical reporting number 8517.62.0090. 8517.62.0090 is a new statistical reporting number that will be added to the HTSUS on or before September 24, 2018. For more information, see https://www.usitc.gov/tariff_affairs.htm

Products Covered by the June 20, 2018 and August 16, 2018 Lists for the Section 301 Action

The instructions for goods covered by the June 20, 2018 and August 16, 2018 lists remain unchanged.

The additional import duties for Chinese goods covered by the June 20, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on July 6, 2018.

In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy.

The additional import duties for Chinese goods covered by the August 16, 2018 list were effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 23, 2018.

In addition to reporting the Chapter 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.02 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy

The Section 301 duties only apply to products of China, and are based on the country of origin, not country of export.

The additional duties imposed by headings 9903.88.01 through 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.

When submitting an entry in which a heading or subheading in Chapter 98 is claimed on merchandise covered by the Section 301 remedy, the following instructions will apply.

When submitting an entry using a Chapter 98 provision that normally requires the reporting of a secondary Chapter 1-97 HTSUS classification, a filer must first report subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04, as applicable, followed by the applicable Chapter 98 subheading, and the Chapter 1-97 HTSUS classification for the commodity being imported.

When submitting an entry using a Chapter 98 provision that does not normally require the reporting of a secondary Chapter 1-97 HTSUS classification, neither 9903.88.01/02/03/04 nor the Chapter 1-97 HTSUS should be reported.

When submitting an entry for a Temporary Importation under Bond (TIB), a filer must first report the applicable subheading in Chapter 98 (i.e., in heading 9813), followed by subheading 9903.88.01/02/03/04, and the Chapter 1-97 HTSUS for the commodity being imported.

Products of China that are covered by the Section 301 remedy and that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional 25 percent ad valorem rate of duty imposed by headings 9903.88.01 and 9903.88.02, or the additional 10 percent ad valorem rate imposed by heading 9903.88.03 and 9903.88.04.

Section 301 duties are eligible for duty drawback.

Weeplay Kids Recalls Children’s Coveralls Due to Choking Hazard

Description: This recall involves infant ED by Ellen DeGeneres coveralls with hat. The pink striped, two-piece, long-sleeve coveralls are 100% cotton. They have a kangaroo pocket and bunny-shaped applique on the left chest, a hat with pompom and snaps in the crotch. Style ED01210 was sold in infant sizes 3M, 6M and 9M; and style ED13210 was sold in 12M, 18M and 24M. The style number and manufacture date code of August 2017 (08/2017) are printed on the inside garment tag located inside the seam of the garment. “ED by Ellen DeGeneres” and the garment sizes are printed on the inside back of the garment.

Remedy: Consumers should immediately stop using the recalled coveralls and return them to the place of purchase for a full refund.

Incidents/Injuries: The firm has received one report in Canada where the bunny applique detached from the garment, and a young child put it in their mouth. The grandparent removed it before it caused them to choke. No incidents or injuries have been reported in the United States.

Sold At: Buy Buy Baby and Marshalls stores nationwide and online at www.buybuybaby.com from September 2017 through January 2018 for about $16.

Manufacturer(s): Dongguan Sureon Trading Limited, of China

Distributor(s): Weeplay Kids LLC, of N.Y.

Manufactured In: China

Recall number: 18-225