Showing posts with label Africa. Show all posts
Showing posts with label Africa. Show all posts

Tuesday, February 9, 2016

Kenya’s New Customs Rule Mandates Certificate of Conformity When Importing



Kenya now requires a certificate of conformity known as the Pre-Export Verification of Conformity, (or “PVoC") which is required for customs clearance on every importation of finished goods.  The only exceptions to this rule are

     1)     Raw materials for processing into Finished Products
     2)     Spare parts for own use by a manufacturer, and
     3)     Customized machinery not meant for sale.

It should be noted that where an exception is purported as applicable, additional support would be required to substantiate the applicability of the exception.

The PVoC must be available upon a shipments arrival to Kenya.  Where it arrives without the PVoC, or where it is issued with a date later than the shipment’s arrival, it will be presumed that the procedures for the pre-export verification were not followed and the importer will automatically be assessed a 15% penalty on the CIF value.  They will be further required to post a redeemable bond of a similar amount pending the import’s quality verification.

Both the Kenya Revenue Authority and Kenya Bureau of Standards (“KEBS”) have oversight of this new rule, the latter for which administers the “Pre-Export Verification of Conformity to Standards” program for exports to Kenya.  As the purpose is to minimize the risk of unsafe and substandard goods entering the Kenyan market by ensuring that products meet the health, safety and environmental standards for Kenyans, non-compliant goods will be denied entry.

What does this change mean?

In order to avoid delays in the issuance of the PVoC, exporters should contact an authorized verification company as early as possible as it is mandated to be undertaken in the country of origin.  If your company anticipates future exports to Kenya, identifying an appropriate location is a smart way to avoid potential additional delays when it comes time to ship your product.

The companies Société Générale de Surveillance (“SGS”), Intertek International, Messrs Bureau Veritas, and the China Certification and Inspection Group have all been contracted by KEBS to perform the pre-export verifications.  Keep in mind however, that each verifier is assigned certain regions for which it may carry out the verification - as opposed to having a general right for inspecting products originating from any part of the world - so finding an approved one for your region is a prudent first step.

Contacting the local branch of any of these companies where the product is located should be the first step to determine whether it can perform the verification, or if another company should be contacted.

Next Steps

This requirement which previously applied to only a limited class of goods now applies to all finished goods.  If you are uncertain as to how to obtain the PVoC on your current or anticipated Kenya bound shipments, or seek guidance on whether your product may meet one of the exceptions, post your questions/comments below or email clark.deanna@gmail.com.

Wednesday, June 24, 2015

AGOA Matters!


Today I joined a conference call with White House Senior Administration officials to talk about the President’s trade agenda in relation to the African Growth and opportunity Act (AGOA).



Notably, the renewed AGOA agreement is different from prior AGOA renewals in at least 3 ways.

The first is that the length of the extension of the AGOA agreement will be for 10 years.

The second is that “Third Country Fabric Provision” will be extended the same length as the renewed AGOA, so we no longer have to worry about this provision expiring before the AGOA extension itself.

The third is that a value on African labor, as opposed to just materials themselves, will now be considered.

The Brookings Institution put out a great analysis on the state of the AGOA, which can be viewed here.

Questions/comments? Post below or email me at clark.deanna@gmail.com

Keep up with me at www.fashioncompliance.com or:
On Twitter @fashcompliance

Wednesday, February 4, 2015

Supporting AGOA Renewal & Trade With Africa


Whether you like it for US business or for Sub-Saharan African ones, the question that supporters are trying to explain to Washington right now is: 



I’ve been getting a lot of emails lately regarding support for the renewal of the African Growth and Opportunity Act (AGOA) including a call to action to pledge support for the Act’s re-authorization which is set to expire in September 2015. 

I even found in my Inbox a wonderful piece by Steve Lamar, Executive Vice-President of the American Apparel & Footwear Association (AAFA), which mentioned how the dysfunction in Washington DC (i.e., our wonderful government) is hurting U.S. businesses engaged in international trade with Africa because the delay in AGOA renewal restricts the ability to make viable business projections and decisions about sourcing.  Steve’s op-ed piece can be found here. 

Lastly, today I found another article written by the folks over at McKinsey & Company chiming in on the growth opportunity in Africa.  You can access their article here.

So with all of the supporters, it begs the question – What is Washington waiting for?

For more on this subject, check out these articles and others I’ve written as well to learn more about the AGOA trade agreement and it’s renewal.

Questions/comments?  Post below or email me at clark.deanna@gmail.com
Keep up with me at www.fashioncompliance.com or:
On Twitter @fashcompliance

Monday, September 29, 2014

Want to Serve on a New Trade Advisory Committee to Africa?


A call for applications has been made for a team of advisors to facilitate the goals and objectives of the African Growth and Opportunity Act (AGOA) and to maintain ongoing discussions with African trade and agricultural ministries and private sector organizations on issues of mutual concern, including regional and international trade concerns and World Trade Organization issues.

The group is being convened in order to ensure that U.S. trade policy and trade negotiation objectives adequately reflect U.S. commercial and economic interests. To this end, the President is seeking information and advice from representative elements of the private sector and the non-Federal governmental sector with respect to:

(A) Negotiating objectives and bargaining positions before entering into a trade agreement under Title I of the Trade Act of 1974 and section 2103 of the Bipartisan Trade Promotion Authority Act of 2002;

(B) The operation of any trade agreement once entered into, including preparation for dispute settlement panel proceedings to which the United States is a party; and

(C) Other matters arising in connection with the development, implementation, and administration of the trade policy of the United States.

Such committees shall, insofar as is practicable, be representative of all industry, labor, agricultural, service, investment, defense, and other interests, respectively, including small business interests, and shall be organized by the United States Trade Representative and the Secretaries of Commerce, Defense, Labor, Agriculture, the Treasury, or other executive departments, as appropriate.

The members of such committees shall be appointed by the United States Trade Representative in consultation with such Secretaries.

Members serve for a 4 year term without compensation and are responsible for all expenses incurred to attend the meetings.

There is a long list of requirements for being considered an eligible nomination so I recommend you read them here to confirm your ability to be nominated.

Have someone in mind to nominate?  Would you like to nominate yourself?

Submit nominations to Julia Friedman, Attorney-Advisor for the Office of the U.S. Trade Representative's Office of Intergovernmental Affairs and Public Engagement, at iape@ustr.eop.gov. For alternatives to email submission, please contact Julia Friedman at (202) 395-6120.

Have questions or comments? 

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Wednesday, July 30, 2014

Washington DC Gets Ready to Discuss AGOA, Textiles From Africa, and More


On Friday August 1, 2014, the Civil Society of the AGOA Forum will be hosting its own two-day meeting under the theme “AGOA:Re-Authorization beyond 2015.”    Time is running out to register but you still can here.

The purpose of this meeting is to come up with written recommendations for presentation to the Ministerial Session of the African Growth and Opportunity Act (AGOA) during the Africa Summit beginning August 5, 2014.

As described by the AGOA Civil Society Network, the AGOA “is a trade mechanism that was passed by the US Government in 2000 to encourage US-Africa trade.   AGOA currently provides the 40 AGOA-eligible countries with:

-   - Most liberal access to US markets for any country or region without at free trade agreement

-   - Reinforced Africa reform and development efforts, and

-   - Access to US credit and technical expertise.”

Other posts related to AGOA and textiles can be found here.


The Foundation for Democracy in Africa is likewise hosting an event on August 5, 2014 entitled “AGOA CSO Session: 13th US-Africa Trade and Economic Cooperation AGOA Forum.  This event will have a focus on human rights and democratic reform, among other topics.  Tickets are free but registration is required.

Questions or comments? Post below or email me at clark.deanna@gmail.com

Keep up with me at www.fashioncompliance.com or:


On Twitter @fashcompliance


Friday, October 4, 2013

Bringing a Product to Market with Fashion Compliance

Earlier this week I had the privilege of addressing members of the Pan African Women’s Entrepreneurship Program, commonly known as "AWEP," together with fellow OWIT International (Organization of Women in International Trade) members who joined me as panelists.



Evident from the products in the conference hall and the silence that fell across the room as I began my discussion, many in attendance were involved in the African textiles and wearing apparel industry.

My presentation on Fashion Compliance with respect to proper labeling in order to bring products in to the United States (US) lawfully, and hence, bring a product “to market,” therefore turned out to be of particular interest.

"Why does proper labeling matter?" you may be wondering?

It is important for a few critical reasons.

First, without it, the products you plan to sell in the US may never be authorized for entry into the country for consumption since US federal laws regulate the clothing sold here.

Second, if you want the parties that buy from you to consider you a trusted vendor, your products need to be certified for compliance with US law so that your retail customers can buy from you with confidence.

Last but certainly not least, consumers actually need some of the information, such as how to care for the garment, and with the ultimate purchaser as the end user, every producer of a good wants to keep that final user’s best interests in mind.

The presentation also included some points and "quick math" around the AGOA (African Growth and Opportunity) and how it is actually used, as the US Government - which is currently *shut down* - has done little to educate users on how it can be best taken advantage of.

More articles on the AGOA agreement can be found at the links below:

http://internationaltradeforeverydaypeople.blogspot.com/2011/12/african-fashion-industry-and-agoa.html

http://internationaltradeforeverydaypeople.blogspot.com/2012/08/agoa-third-country-fabric-provision.html

http://internationaltradeforeverydaypeople.blogspot.com/2012/09/agoa-renewal-recommendations-sought-by.html

http://internationaltradeforeverydaypeople.blogspot.com/2012/07/africa-sourcing-and-agoa-extension.html


Questions/comments?  Post below or email me at clark.deanna@gmail.com
 
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Friday, August 23, 2013

Promoting Trade and Investment Opportunities in the African Apparel and Textiles Industry


Last month, fashion forward and culturally relevant designs were showcased at the 2013 runway shows of Africa Fashion Week here in New York City. 


Having attended the show, I was dazzled and impressed with the creativity and detail of pieces by designers like Aliakim, Demstiks by Reuben Reul, Moroccan Caftan NY, and Ms. Ray Couture, all of whose designs are shown in the images below.

Cotton was present in many of the pieces shown on the runway, and turning to comments made by Rajeev Arora, Executive Director of the African Cotton and Textile Industries Federation (ACTIF), in the recent article “Changing Perceptions Toward Modern Africa,” published in Cotton Africa and found here, offers some perspective into the current state of the African market.

“Currently, the demand for fabric in the Sub-Sahara African market far exceeds the present production and supply. Considering the economic cost in sending African cotton to Asia for processing into fabric before shipping it back to Africa to be cut and sewn into garments, ACTIF is playing a key role in cutting this cost by ensuring that the fabric is fully produced adequately in Africa.
This calls for urgency in exploring the opportunities for investing in weaving, spinning, dyeing, and finishing in the region.  In line with this achievement, African governments should be taking initiatives in creating investment-friendly regimes as currently being witnessed in the case of Ethiopia. Also there has been a remarkable increase in support by international organizations such as Business Advocacy Fund that approved its support to ACTIF in carrying out AGOA [African Growth and Opportunity Act] outreach programs.
 Other international organizations, such as Innovations for Poverty Action (IPA) are also actively conducting studies on how to improve various industrial sectors including the Textile and Garment sector across Africa. 


Given the current stake, I would like to urge all stakeholders in the cotton value chain as well as supporting partners in Africa to support ACTIF’s initiatives as it represents the interests of the CTA value chain of Africa to the international market, as a viable competitor.”
And indeed, rumor has it that already here in the U.S., behind-the-scenes activities are taking place in an effort to have the AGOA agreement extended well before its 2015 expiration.

Have you heard anything about this as well?
Questions/comments?  Post below or email me at clark.deanna@gmail.com
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Saturday, June 1, 2013

Obtaining Export Declarations Under the AGOA Agreement

The US has preferential trade agreements with many other countries to promote and increase trade with those nations.

One of these is the “African Growth and Opportunity Act,” otherwise known as the AGOA agreement.

Doreen Mashika Print Clutch Bags - Zanzibar


As it pertains to textiles, its purpose is (in part) to provide for the entry of specific textile and apparel articles free of duty and free of any quantitative limits from the participating countries of sub-Saharan Africa.

For more information about the AGOA, check out these articles:



AGOA Renewal Recommendations Sought by USTR

 For preferential treatment under AGOA, the exporter is required to prepare a certificate of origin and provide it to the importer.  This certificate is something that the importer must request from the exporter to have and keep as part of its record keeping.  The certificate of origin includes information such as

(1)    The contact information for the importer, exporter and producer;

(2)    The basis for which preferential treatment is claimed; and

(3)    A description of the imported merchandise.

Importers are required to have the certificate in their possession at the time of the claim, and to provide it to Customs and Border Protection (CBP) upon request.

Questions/comments?  Post below or email me at clark.deanna@gmail.com
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Friday, April 19, 2013

International Trade and Expanding African Economies

Trade between the US and Sub-Saharan African countries is on the rise, and one area gaining greater recognition is in the African textiles and apparel industry.




Garments made by designers like Duro Olowu, whose dress is featured in the photo above, have not only outfitted public figures like Michelle Obama, but have also moved into mainstream retail stores such as his current collection for sale at JC Penney stores, a nationwide retailer in the U.S. 

According to the saleswoman I spoke with at JC Penney’s New York City location at Herald Square, not only did the first batch of clothes and accessories sell out quickly, but much of what remained there from the second shipment it put out on the sales floor were the last ones of its kind.

A growing interest in apparel with African designs will lead to greater imports from the continent as younger entrepreneurs are opting to source and import directly from Sub-Saharan Africa rather than heading to China for such fabrics and manufacturing.

Moreover, with countries including Ethiopia, Mozambique, Tanzania, Nigeria, Congo, Zambia and Nigeria being recognized as some of the fastest growing economies between 2011 to 2015, we can anticipate even greater contributions in fashion from these countries as well.

Questions/Comments?  Post below or email me at fashioncompliance@gmail.com
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ciao ciao!
 

Tuesday, February 19, 2013

2013 AGOA Countries – Winners and Losers


Currently, there are 39 Sub-Saharan African countries designated as beneficiary countries under the African Growth and Opportunity Act (AGOA).  For a complete list, see below.

President Obama terminated the designations of the Republic of Mali and the Republic of Guinea-Bissau as beneficiary countries under the AGOA agreement at the end of last year.

The one “winner” this year is the emerging country of South Sudan which has been added as the most recent beneficiary to the agreement. 

The practical application of the AGOA is that goods imported into the US from a Sub-Saharan beneficiary country enjoy duty-free treatment, which creates an incentive for US buyers to source products made in these African countries.  Such benefit is currently in effect through September 30, 2015.

The benefit becomes applicable however, only under certain circumstances which do not include simple combining or packing operations, or the mere dilution with water or some other substance that does not materially alter the characteristics of the article.

Rather, the duty-free benefit applies where (1) the imports are the growth, product or manufacture of a designated beneficiary country, and (2) the sum of the cost or value of the materials produced in one or more designated beneficiary countries PLUS the direct costs of processing operations performed there or, in any 2 or more designated members of the same association of countries which is treated as 1 country ((under section 506A of the Trade Act of 1974)) is not less than 35% of the appraised value of such article at the time it is entered.

Here is a complete list of countries.  For more information on the AGOA agreement click here, post below or feel free to email me at clark.deanna@gmail.com

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AGOA COUNTRIES

Republic of Angola
Republic of Benin
Republic of Botswana
Burkina Faso
Republic of Burundi
Republic of Cameroon
Republic of Cape Verde
Republic of Chad
Union of the Comoros
Republic of Congo
Republic of Côte d’Ivoire
Republic of Djibouti
Ethiopia
Gabonese Republic
Republic of The Gambia
Republic of Ghana
Republic of Guinea
Republic of Kenya
Kingdom of Lesotho
Republic of Liberia
Republic of Malawi
Islamic Republic of Mauritania
Republic of Mauritius
Republic of Mozambique
Republic of Namibia
Republic of Niger
Federal Republic of Nigeria
Republic of Rwanda
Democratic Republic of Sao Tome and
Principe
Republic of Senegal
Republic of Seychelles
Republic of Sierra Leone
Republic of South Africa
Republic of South Sudan
Kingdom of Swaziland
United Republic of Tanzania
Republic of Togo
Republic of Uganda
Republic of Zambia

Tuesday, September 25, 2012

AGOA Renewal Recommendations Sought by USTR


Submit Your Comments By October 11, 2012

For 2012, there are 40 Sub-Saharan African countries which have been designated as beneficiary countries under the African Growth and Opportunity Act (AGOA).  This means that articles, including certain textile and apparel products, made in these countries are eligible upon importation to the US for duty-free treatment.

The US Trade Representative’s Office (USTR) has requested comments in order to develop recommendations on AGOA country eligibility for the 2013 calendar year.

In order to qualify as an AGOA beneficiary country is, among other things, the establishment (or progress towards) a market based economy, governance by the rule of law, the right to due process, and political pluralism.  In addition, economic policies to reduce poverty, a system to combat corruption and bribery, and the protection of internationally recognized worker’s rights are also required.

USTR is also interested in identifying countries and the extent to which child labor is used.

Where the US President determines that a beneficiary country is not making continual progress in meeting the eligibility requirements, he must terminate the designation of the country as a beneficiary of AGOA.

Countries under consideration for 2013 are the State of Eritrea, Democratic Republic of Congo, the Republics of South Sudan, Madagascar, Zimbabwe, Equatorial Guinea and Sudan, Somalia, and the Central African Republic which are not currently beneficiaries under the AGOA.

Public comments in connection with the annual review regarding country eligibility in relation to the above criteria, and also with respect to child labor, are requested for submission online at www.regulations.gov .  Enter the “docket number” USTR-2012-0026 on the home page (and click “search”) so that the case can be pulled up. 

You can thereafter find a reference to this notice by clicking “Notice” under the header “Document Type” on the search-results page and click on the link entitled “Submit a Comment.”

If you are unable to make a submission, or have a question related to an attachment or a confidential submission, you may contact Don Eiss, Trade Policy Staff Committee at (202) 395-3475.

All other non-technical or procedural questions should be directed to Constance Hamilton, Deputy Assistant U.S. Trade Representative for Africa, Office of the USTR at (202) 395-9514.

Questions/comments? Post below or email me at clark.deanna@gmail.com