Will TPP Really Boost U.S. Exports?

The negotiation of the Trans-Pacific Partnership Agreement (TPP) concluded in Oct. 2015 between its 12 member countries, which include the United States, Australia, Brunei Dar es Salaam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

The overarching objective of the TPP is to reduce, or eliminate, tariff and nontariff barriers across virtually all goods and services traded within the member countries with the goal being, in pertinent part, to

·       Facilitate the development of production and supply chains

·       Increase transparency across country specific trade laws

·       Encourage the smooth process of customs and border procedures

·       Open up domestic markets, and

·       Raise living standards and support job creation.

It includes provisions specific to certain industries in order to promote a common regulatory approach across the TPP region, which includes medical devices, information and communications technology products, and pharmaceuticals to name a few.

It's also being angled by the U.S. Trade Representatives Office to support American workers, businesses and values first, and has a special provision designated to wearing apparel and textiles.

As stated on the USTR's website:

TPP’s Textiles and Apparel chapter will create export opportunities for Made-in-America clothes, fabrics, and yarns and support jobs in the United States. This objective is advanced by a “yarn-forward” approach that requires use of yarns and fabrics from TPP countries in end products qualifying for preferential treatment under TPP — with some flexibility so that American businesses and workers whose products depend on inputs not available within the TPP region can still benefit. The yarn-forward approach also will help to develop a regionally-integrated supply chain that will promote long-term growth and investment in this sector in the United States. The Textiles and Apparel chapter also secures close customs cooperation among TPP Parties to facilitate effective enforcement of the rules; and ensures that U.S. companies have access to temporary relief if an import surge causes, or threatens to cause, serious damage to their business.   

Only time will tell if TPP will really boost U.S. origin exports and with the drafting of laws getting underway, that day will be here sooner than later.  Stay tuned.

Online Resources for Fashion Compliance and Fashion Law

Are you looking for more fashion law information related to your fashion compliance obligations?

Here is a list of resources to help you learn more about what’s required for you to do the right thing and avoid getting hit by penalties for wrongdoing. We have many other articles in our blog that we invite you to peruse through as well.

Be advised that while we are providing this information and it may be considered guidance, we are not guaranteeing that any of the rules, regulations or protocols stated in these publications and resources are current (in fact portions of it are outdated as you will see since these laws frequently are amended, but it is what the government has published and is therefore, publicly available), still applicable, or should be considered as legal advice.

It is always recommended to have legal counsel review anything you have put together to ensure you are actually complying with the law. 

MARKETING CLAIMS

Are you telling the truth, the whole truth and nothing but the truth when it comes to your product descriptions made in advertisements, whether in print or online?  Perhaps, you’re stretching the truth???

Whatever the case may be, be advised that truthful marketing statements and non-deceptive advertising are highly regulated areas.  To learn more about what you can and can’t do, check out these links here:

Dot Com Disclosures: How to MakeEffective Disclosures in Digital Advertising

Advertising and Marketing on theInternet:  Rules of the Road

GREEN MARKETING (“ECO-FRIENDLY”)

Part of the sustainable fashion movement?  Are your products “Eco-friendly?”  If they are, kudos to you!  We are absolutely for the advancement of products that could be considered “sustainable fashion.”

As a warning, however, the government has strict rules on what can be claimed as “green” and even requires proof to substantiate any claims made.  Watch the video on their website and find more information on this at this link here:

Green Guides: Guides for the Use of Environmental MarketingClaims

MADE IN USA

We make excellent products here in the U.S.  and if you want to have the privilege of labeling your products with the statement “Made in USA,” you better darn well make sure that it was all or virtually made here in the USA.   While this may sound relatively straightforward, this can get complicated when some components have been imported despite the manufacture of the final product being fabricated here in the US.  It’s complexity further rises when a company wants it’s goods to qualify under the Buy American Act or to sell to the government, which has its own criteria regarding products claiming to be Made in USA.

For more on Made in USA disclosures, check out this page here.

CLOTHING LABELS

Believe it or not, figuring out the proper way to state required disclosures on clothing can get complicated fast when what you are selling is either imported in to the USA, made in the USA but of foreign components, or made up of US originating components that are assembled into a finished product abroad.  This is because there are overlapping laws that apply to clothes under these circumstances.

It becomes further complicated if you are using recycled materials, unknown fibers or miscellaneous scraps.  Since there is so much misinformation out there on this subject, we invite you to contact us with any questions related to this subject.

IMPORTING

To put it mildly, importing laws are a beast unto themselves.  Nuances from fiber blends, to articles sold as sets, to importing second hand clothes all raise specific issues in relation to product classification, labeling, how it is marked and its value determination.

US Customs Informed Compliance Publications cover a wealth of subjects from apparel classification, to fiber trade names, to importing basics.  They all give you a head start on how to do the right thing in terms of importing in to the US.

For these subjects, how to take advantage of money saving opportunities through the trade agreements, and more, check out this link.

EXPORTING / E-COMMERCE

“This is not your parent’s post office.”  -- Anonymous, USPS Corporate Office Employee

Don’t be fooled by what the U.S. Postal Service used to be, it currently provides the market’s share of shipping for e-commerce, and has been steadily expanding its reach to new corners of the globe to better serve you the merchant.  Have a look at its international services through the link here.

TESTING

Many tests required under the apparel laws must be done by a test laboratory certified by the US Consumer Product Safety Commission.   While approved by a US agency, they labs may nonetheless be outside of the US.  To search for a lab near you, check out this link here:

DESIGN ISSUES

It's not uncommon that designers are concerned about the possibility of others taking their creative ideas and profiting from their intellectual property.  Learn more about protecting yourself through trademark, patent and copyright protection at the US Patent and Trademark Office. 

LAW SCHOOLS WITH A FASHION LAW TWIST

The following is a list of law schools that have either a Fashion Law course, have hosted a “Fashion Symposium,” or have a “Fashion Club” on campus.

• New York Law School
• Loyola Law School
• Fordham Law School
• Southwestern Law School
• University of Virginia School of Law
• Cardozo Law School
• New York University
• New England Law
• The John Marshall Law School
• Brooklyn Law School
• Hastings Law School
• Charlotte School of Law
• St. John’s University School of Law
• Touro Law School
• Howard University School of Law
• University of Southern California

Have questions or comments on fashion compliance and/or fashion law? Feel free to connect with us!

Learn more at www.fashioncompliance.com or

Tweet us @fashcompliance on Twitter or

Email us at clark.deanna@gmail.com

Importing Products That You Want to Sell to the US Government? Is That Even Possible?

Sure you want to be a vendor of the U.S. Government, but in order to sell to government agencies, you must have a product that is a
 “U.S. –Made End Product.”

 

As defined in the Federal Procurement Regulations, a U.S. – Made End Product is

"An article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed.”

Given the breadth of international trade, it is not uncommon to find that a product sold to the US government is not actually 100% of U.S. origin, but rather has some foreign components that were substantially transformed - as the above definition references - here in the U.S.

As a result of this international trade reality, a waiver may be granted on certain “Buy American” restrictions for purposes of selling to the U.S. government.  U.S. Customs offers advisory rulings and final country of origin determinations as to whether an article is or would be a product of a designated country or instrumentality for the purpose of granting such a waiver.

The rule of origin set forth in the U.S. Customs law at 19 USC §2518(4)(B) (see also 19 CFR §177.22) provides that:

An article is a product of a country or instrumentality only if

     i) it is wholly the growth, product, or manufacture of that country or instrumentality, or

     ii) in the case of an article which consists in whole or in part of materials from another country or instrumentality, it has been substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was so transformed.

In determining whether a substantial transformation occurred, US Customs considers the totality of the circumstances in its analysis of the assembly of components of various origins into completed products.  It further does so on a case-by-case basis.

Such analyzed factors include the origin of the components themselves, resources expended on product design and development, the extent of the processing that occurs within a country, and whether such processing rendered a product with a new name, character and use.

Other considerations include the nature and extent of post-assembly inspection and testing procedures, and the worker skill required during the actual manufacturing process.

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Looking to Buy Products Made in the USA?

The Office of Textiles and Apparel at the US International Trade Administration has a handy portal to help sellers find vendors who manufacture products made in the USA.

Specific to the textiles and apparel industries, the portal allows you to search for vendors of children’s wear (including infants), men’s and boy’s, or women’s and girl’s apparel, in addition to accessories and footwear, technical textiles as well as soft furnishings.

You can further search by fabrics, whether of wool, cotton, upholstery, silk and other fabrics.

Whether searching for a cut and sew contractor, input supplier, manufacturer or other type of business, the information you will get back includes an entity’s contact information, whether or not they export, production capacity and production locations.

You can also learn if they have design capabilities, have any special washes or treatments available, certifications offered and many other details.

To go to the Made in USA search portal, click here.

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

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