ITC Revisits Issue of Thread Count of Bed Sheets

On March 24, 2017, the United States International Trade Commission published in the Federal Register (82 FR 1506), notice the Commission has issued a general exclusion order barring entry of certain woven textile fabrics and products containing same.

The Commission instituted this investigation on December 18, 2015, based on complaint filed by AAVN, Inc. of Richardson, Texas ("AAVN"). The complaint alleged 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, or the sale within the United States after importation of certain woven textile fabrics and products containing same, by reason of false advertising.

AAVN accused Pradip of false advertising, specifically alleging that Pradip misrepresented the thread count of sheets manufactured in India, imported into the United Sates, and sold in United States department stores.

The Commission determined that the appropriate remedy in this investigation was a general exclusion order prohibiting the entry of certain woven textile fabrics and products containing same that are falsely advertised through a misrepresentation of thread count.

On March 10, 2021, the United States International Trade Commission published in the Federal Register (85 FR 13731) Certain Woven Textile Fabrics and Products Containing Same; Commission Decision Instituting a Rescission Proceeding and Granting a Petition for Rescission of a General Exclusion Order and Seizure and Forfeiture Orders; Termination of Rescission Proceeding.

On February 3, 2021, AAVN filed a petition to rescind the GEO and SFOs. AAVN contends that it disagrees with the testing protocol used by Customs and Border Protection to determine whether imported articles falsely advertise their thread counts. In particular, AAVN contends that the methodology is too strict as compared to alleged testing conducted by independent testing laboratories. AAVN further contends that the "exclusion of goods, including from AAVN's licensees and customers, even after qualified independent testing labs have confirmed the accuracy of those authorized products' thread counts, harms AAVN's business and its standing with reputable importers." AAVN recognizes that the GEO was originally issued to redress substantial injury to AAVN, but states that "AAVN is ultimately in the best position to evaluate injury to itself," and that rescission of the Commission remedial orders (the GEO and the SFOs issued pursuant to it) "would be less injurious to [AAVN] than continued enforcement of the GEO."

Having reviewed the petition, the opposition thereto, and the record of the investigation, the Commission determined that the petition complies with Commission Rule 210.76, 19 CFR 210.76. The Commission has determined to institute a rescission proceeding and to grant the petition. AAVN's petition alleges that the exclusion of articles pursuant to the GEO exacerbates rather than redresses any injury it faces from imports. Thus, the conditions that led to the issuance of the GEO no longer exist, and the Commission has determined to rescind the GEO. Because an SFO requires a predicate exclusion order, there is no basis to continue enforcement of SFOs after rescission of the underlying GEO. Accordingly, all SFOs in this investigation are likewise rescinded. The rescissions are effective as of the date of the Order issued herewith.

The rescission proceeding is terminated. The GEO and all SFOs are rescinded.

The Commission vote for this determination took place on March 4, 2021.

Public Hearing - CPSC Agenda and Priorities for Fiscal Year 2022

On Aprtil 7, 2021, The U.S. Consumer Product Safety Commission ("CPSC") will conduct a public hearing to receive views from all interested parties about the CPSC's agenda and priorities for fiscal year 2022. Due to the COVID-19 pandemic, this year’s hearing will be held virtually as a Webinar meeting at https://attendee.gotowebinar.com/register/2395411838620426511. Requests to make oral presentations and the written text of any oral presentations must be received by the Division of the Secretariat not later than 5 p.m. Eastern Daylight Time (EDT) on March 17, 2021. The Commission will accept written comments as well. These also must be received by the Division of the Secretariat not later than 5 p.m. EDT on March 17, 2021. If you have any questions, please contact the Division of the Secretariat at cpsc-os@cpsc.gov or 240-863-8938. All attendees and participants should pre-register for the Webinar. To pre-register for the Webinar, please visit https://attendee.gotowebinar.com/register/2395411838620426511 and fill in the information. After registering you will receive a confirmation email containing information about joining the webinar.

Federal Prison Industries Awarded $12.9 Million Army Jacket Contract

Federal Prison Industries, doing business as UNICOR, Washington, D.C., has been awarded a maximum $12,879,000 modification (P00006) exercising the first one-year option period of a one-year base contract (SPE1C1-20-D-F055) with two one-year option periods for physical fitness uniform jackets. This is an indefinite-delivery contract. Locations of performance are Florida and Washington, D.C., with a March 18, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Army and Air Force Coat Contract Awarded

M&M Manufacturing LLC, Lajas, Puerto Rico, has been awarded a maximum $17,045,875 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for coats. This is a two-year base contract with one two-year option period. This was a competitive acquisition with 12 responses received. Location of performance is Puerto Rico, with a March 8, 2023, ordering period end date. Using military services are Army and Air Force. Type of appropriation is fiscal 2021 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1449)

Rivian Electric Vehicle FTZ Application Draws Oppostion from Multiple U.S. Industries

Rivian Automotive, LLC (Rivian) submitted a notification of proposed production activity to the FTZ Board for its facilities in Normal, Illinois (see 86 FR 7249). The facility will be used for the production of electric passenger and delivery vehicles, as well as vehicle components, subassemblies, chargers and charging stations. Production under FTZ procedures could exempt Rivian from customs duty payments on the foreign-status materials/components used in export production. On its domestic sales, for the foreign-status materials/components below, Rivian would be able to choose the lower duty rates during customs entry procedures that apply to the finished articles, rather than the higher rates applicable to certain foreign inputs (i.e., there is a "duty inversion").

The request indicates that carrying/storage cases of man-made fibers, seat belt webbing, and camping tents for pick-up truck beds will be admitted to the zone in privileged foreign (PF) status (19 CFR 146.41) thereby precluding inverted tariff benefits on such items. This is in line with nearly two decades experience of most foreign textile components being excluded, either in the application, or, in the final Board order.

HOWEVER, the request includes many articles, such as rubber profiles, steel springs, and other such article which, while not textiles themselves, may have a textile covering or coating, such as flock.

Comments in opposition were filed by:

• Alumina and Angstrom Automotive.pdf, a Tier 1 supplier of forged aluminum parts,
• Milliken and Company,
• American Flock Association, and
• National Council of Textile Organizations

A determination by the FTZ Board is expected by early May.

Clothing and Textiles Team Provides Cloth Face Masks to Army Recruits

Army recruits at training centers across the country are receiving cloth face masks during initial uniform issuance as of March 1 thanks to Defense Logistics Agency Troop Support.

DLA Troop Support Clothing and Textiles provided nearly 16,000 operational camouflage pattern masks to recruit training centers at Fort Leonard Wood, Missouri; Fort Sill, Oklahoma; Fort Jackson, South Carolina; and Fort Benning, Georgia, in time for the first issuance.

Read more HERE.

China Section 301 Exclusions Related to Covid-19 Extended through September

In prior notices, the U.S. Trade Representative modified the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by excluding from additional duties certain medical-care products needed to address the COVID-19 pandemic. To support efforts to combat COVID-19, on December 29, 2020, the U.S. Trade Representative announced the extension of certain product exclusions on medical-care and/or COVID response products and further modifications to remove Section 301 duties from additional medical-care and/or COVID response products. A notice on March 5, 2021, announced the U.S. Trade Representative’s determination to extend those exclusions. The extensions announced in this notice will extend the product exclusions through September 30, 2021. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.