Where Have the Blog Articles Gone? We’ve Moved!

News, resources, and more have been moved to our websites and you can find our great content on these two platforms.  The first is our website for the Clark-Esposito Law Firm, P.C. under the "News & Resources" tab.  Here you will find trade and transportation related news along with that typically for the more experienced fashion enterprise.

The second is our website for Fashion Compliance.  The "News & How To's" section centers on the issues the fashion entrepreneur is primarily focused on, which tend to be less complicated matters than the experienced fashion company would likely deal with. That being said, I've seen more experienced companies not have its bases covered with respect to any number of fashion compliance issues, so I encourage and welcome everyone to read on at the other sites!

 

As always, we welcome you to send us any questions you may have via our Contact pages on the websites or email us directly at contact@clarkespositolaw.com.

Thanks and we'll see you on our new platforms!

The Trade Promotion Authority - Pros and Cons

(authored by Hayoon Jung, my summer law clerk)

On May 22, 2015 the U.S. Congress gave President Obama expanded trade negotiation powers by passing the Trade Promotion Authority (TPA, 19 U.S.C.A. § 3801-3813). The TPA shortens the time a trade agreement implementing bill stays in Congress by restricting Congressional power to amend the submitted bill. TPA requires the President to hear Congress’ opinion in the course of trade negotiations to assure the trade agreement obtains its goal.  

To maintain its Constitutional power in U.S. commerce, Congress requires the President to hear its opinion in the course of trade negotiations and delineated trade objectives, such as expanded market opportunities. Moreover, TPA restricts the implementing bill to consist only of provisions that approve the trade agreement and administrative action necessary to implement it. Also, the bill should include “only such provisions as are strictly necessary or appropriate” (italics added). Compared to the 2002 TPA, which did not contain such italicized words, this more stringent standard represents a Congressional intent to interpret the law narrowly.

The Process

In this expedited process, an implementing bill submitted by the President is automatically introduced in both houses concurrently, unlike in the regular legislative process. Then, the appropriate committee of each Chamber examines the bill. The debate is limited to 20 hours, whereas there is no limit in the regular process. Then the bill goes to the floor in each Chamber for the members to vote. Each Chamber has to either approve it fully or deny the bill without amendments. Timely floor consideration, limited debate time, and a prohibition on amendments are the three elements that allow the expedited process.

Pros and Cons

The advocates say TPA is neither giving the President a new power, nor depriving the Congress of its legislative power, because Congress still participates in drafting and implementing a bill and reserves the right to deny the bill as in the regular process (https://fas.org/sgp/crs/misc/R43491.pdf)

Furthermore, the TPA will promote the U.S. economy by inducing more trade agreements. The reduced cost of re-negotiation will enable other countries to more easily enter into, and finalize trade agreements with the U.S. New agreements will lower trade barriers, thus increasing the volume of international commerce, in turn entailing a higher GDP, spurring job growth.

In contrast, opponents of the TPA express concerns about the seemingly diminished Congressional power in legislating laws (http://dailycaller.com/2015/04/08/uaw-voices-its-opposition-to-trade-promotion-authority). Likewise, they think TPA is unnecessary because both the House and the Senate are aware of the necessity of trade agreements and its reciprocity (http://object.cato.org/sites/cato.org/files/pubs/pdf/ftb56.pdf They also argue that the individual industries and the workers will be the ones bearing the cost of the lower trade barriers, because they are forced cut the cost to remain competitive in the market (AFL-CIO, http://dailycaller.com/2015/04/08/uaw-voices-its-opposition-to-trade-promotion-authority).

What do you think? Let us know by sharing your comments below!

AVVO Talk: How to Avoid Design Patent Issues When Importing Home Decoration Items?

Question Continued: Can you get sued over design patent issues if you import similar items like examples below? 

For examples, 
http://www.amazon.com/Copper-Rotating-Earring-O... 
http://www.amazon.com/Rotating-Earrings-Organiz...

Deanna's Response:

Hello, If you don't have permission from the patent holder, and there is one, then you would absolutely be at risk of an accusation of such unlawful act - by US Customs first and foremost. 

US Customs has its own seizure process on imported goods, so before you even get to an issue with the patent holder as some of the attorneys below have discussed, you need to know that US Customs can seize the goods themselves so you'll never get them. Once the seizure has occurred, then the penalty phase begins and depending on your level of "culpability" (i.e., guilt level - be it negligence, fraud, first time offender, etc.), the penalty amounts can vary but it's never cheap. And yes, because the patent holder would be notified, they too may commence a lawsuit against you as well.

Sustainable Fashion Highlight of the Week: Attending CFDA - Fashion Positive - C2C Event

Highlight of the week: Being invited by the Council of Fashion Designers of America to join Fashion Positive C2C​, BIONIC YARN​, Cradle to Cradle​, and a room full of #sustainable #fashion thought makers to discuss #upcycling and creating regenerative products, as well as thinking about global systems to integrate this concept into the fashion industry in a more expansive way.

Many Thanks and Happy Earth Day!

A big THANK YOU to our stellar law clerk Sophie from Pace Law School for her wonderful contribution to our office this Spring 2015 semester.  Congratulations on completing your L.L.M. and Happy Earth Day!

NEW "AVVO TALK" Postings!

I've started contributing answers via a website called AVVO.COM where anyone can ask a question of an attorney to receive non-confidential information that is responsive to the question but which is expressly not considered legal advice.

I've therefore decided to share some of the questions and answers as I think they'll be of interest and potential use to you my readers.

The posts will be entitled "AVVO TALK" and will include the question being asked by the AVVO user.  Beneath it will be a continuation of their question -where there is one - and then my response thereafter.  Hope you enjoy them!

Harmful Shifts in the US Economy Without a New Beginning for AGOA?

Still think the economy is sluggish?  

(photo courtesy of U.S. CIA)

The gridlock in Congress isn’t helping and with their delays in reauthorizing trade agreements like the African Growth and Opportunity Act (AGOA), U.S. companies whose existence rely upon duty-free African imports – whether in fashion, retail, beauty, foodstuffs, or otherwise - are going to start laying off people as the uncertainty with respect to AGOA renewal mounts.

Here’s a snapshot of reasons, recommendations, and how you can support AGOA renewal in 2015.

AGOA renewal is important not only for keeping existing companies in business but also for the expansion of other US companies who find markets within African economies.

A rise in African exports equals increased spending power amongst African consumers, and with President Obama’s export promotion initiative in place, this means that US exports have a greater chance for success when expanding into these foreign markets. 

A growing African labor force could also lead to more stable economies and increase good governance.  With greater economic development and stability, there will be less of an incentive to join radical groups known to be destructive and that pose a threat to the world at large, as there will instead be a viable alternative to have a life with meaning and, hence, a vested interest in creating a common good for society as a whole.

Now is the time to make your voice heard if you want Congress to vote for the reauthorization of the AGOA trade agreement.  Send letters to all of the members of the House Ways and Means Committee and the Senate Finance Committee, calling for:

1) The expeditious passage of AGOA

2) Renewal for a term of 15 years

3) Such passage to include all current member states

With this, provide a statement highlighting how economic development and stabilization function as a mechanism to combat terrorism.

The AGOA reauthorization is currently being drafted by Congress, so now is the time to get your letters in and make your voice heard if you want to keep US businesses in business and open up foreign markets to US exports.  

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

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

On Facebook at www.facebook.com/FashionCompliance

On Twitter @fashcompliance

A Fashion Compliance Legal Checklist

Have you seen the primer on Fashion Law on Open Source Fashion written by Deanna? 

  Check out this article to get a basic overview of what every startup #fashion business needs to know about!  http://bit.ly/1afKWaQ

Wishing You a Wonderful 2015!

Ever Wonder How USPS Handles Exports and Imports?

I had the pleasure of seeing first hand how the US Postal Service (USPS) handles imports and exports by air in to and out of its Kennedy (JFK) airport location in Jamaica, New York during a recent tour I took there.

Regarding imports, USPS receives about 400 air containers per day from all over the world.  It has an International Mail Agreement which standardizes by code mail equivalents worldwide and streamlines the processing of incoming mail.  Mail passes under an infrared scanner that verifies receipt of the packages into the US mail system and reconciles payments at such time.  Of course, there is always mail for which an address cannot be read, a package’s integrity has been compromised, or some other reason necessitating the need for manual processing, so there is a dedicated area for doing this as well.

E-commerce and E-bay sales make up a huge portion of total imports by mail into the U.S. in what are known as “E-packets,” and to my surprise I saw some itty-bitty packages that identified the contents as clothing, a dress specifically, as it needed to be identified for customs purposes.  All I could think was, "this must be a really small dress!"  Or not a dress, obviously...

  In fact, 5 Million “E-packet” packages come from China and South Korea every month. Wow!

US Customs is, of course, present for cargo inspections and not only are agents walking around the floor to check and even open up questionable mail, Customs likewise has its own dedicated and restricted space for conducting larger inspections on flagged shipments.  

Regarding mail destined for foreign locales, i.e., exports, they arrive into the “Business Mail Entry Unit,” where commercial shipments have been delivered by bulk mail providers like “Asendia,” and the mail gets sorted and then assigned to a flight.  Air carriage services include their International Surface Air Lift (ISAL) option, which delivers within 7 to 11 business days, the International Priority Air Lift (IPA) option, which delivers in 4 to 7 business days, or an Express Air option which delivers in 3 to 5 business days and has a “time-definite” delivery to certain countries.  

 It should be noted however, that as not every foreign country has the infrastructure or capabilities to have this capacity, the time definite delivery cannot be offered to all destinations.

 The packages themselves are sorted by destination country and where the volume is very high, such as exports to Canada, a special section designated specifically for that country is demarcated.  With 3 working shifts a day, mail is kept moving 24 hours per day amounting to roughly 3 to 4 trailers of IPA and ISAL mail that gets exported daily.

While packages get placed onto various air carriers, 99% of air exports travel on a FedEX airplane, with whom USPS has service contracts and to which they are FedEx’s largest customer.

For more information on exports or imports with USPS, contact Mr. Kenyatta Adams of the US Postal Service at Kenyatta.A.Adams@usps.gov .

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

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

On Facebook at www.facebook.com/FashionCompliance

On Twitter @fashcompliance

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 Facebook at www.facebook.com/FashionCompliance

On Twitter @fashcompliance

Fashion Protection, Importing/Exporting, and the Role of Fashion Compliance

 As part of the NY Public Library’s effort to join in the New York Fashion Week festivities, trademark attorney Laurie Marshall and I spoke on “Fashion Protection” where we gave an overview on trademark protection for the fashion industries together with a crash course on Fashion Compliance 101.

While the concept of a trademark and trademark law is familiar to many, fashion compliance law is an emerging area as it deals with the non-artistic aspect of fashion rather than what makes up much of today’s conversation (the artistic side) on what is currently referred to as fashion law.

As defined by Deanna, “Fashion Compliance” is

Adherence to the laws that pertain to apparel and textile products offered for sale, or sold within, the U.S. and such laws that apply to the businesses engaged in this activity.

To make sense of Fashion Compliance, Deanna’s broke it down into “4 Cornerstones” within which the laws covering apparel and textiles generally fall into, one piece of which deals with imports and exports.

This year Deanna will be speaking on these cornerstones at events and via webinars, such as her 2014 series with Fashion Group International, the schedule for which will soon be available at www.fgi.com. 

For more on Fashion Compliance, check out her interview on FashionEdits.com by fashion journalist Faith Bowman.

Keep up with her on Facebook by liking the Fashion Compliance Facebook page (www.facebook.com/FashionCompliance), tweet her @fashcompliance, or feel free to send her an email at fashioncompliance@gmail.com.