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!

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.

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!

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 Facebook at www.facebook.com/FashionCompliance

On Twitter @fashcompliance

Ever Wonder Just How Much is Being Imported into the U.S. From China?

Now you can see for yourself what those figures look like in relation to textile and apparel imports thanks to the U.S. International Trade Commission’s latest release which compiles such 2014 data in to a single handy document.

The annual report contains a compilation of the statistical reports published every two weeks by the Commission on the volume, value, unit value, and import market share of imports from China that were subject to the provisions of the 2005 U.S.-China Memorandum of Understanding Concerning Trade in Textiles and Apparel (MOU).  This compilation includes official import data from the U.S. Department of Commerce, and shows data at the 3-digit textile/apparel category level and by the Harmonized Tariff Schedule (HTS) 10-digit subheadings in these categories.

Want to read through it for yourself?  The Textile and Apparel Imports from China: Statistical Reports, Annual Compilation 2014 (Inv. No. 332-501, USITC publication 4535, May 2015) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4535.pdf.

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

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.

"Who Made Your Clothes?" and Fashion Revolution Day

Did you join the movement and post your selfie asking 

"Who Made Your Clothes?" for Fashion Revolution Day?

As participants in international trade, we have a responsibility to ask ourselves who is making the clothes we facilitate the importation of, whether as buyers, distributors, importers and those "behind-the-scenes" folks like myself.

So - Who Made Your Clothes?

Introducing Our New Law Firm Website!

We're excited to announce that we've updated our website at www.fashioncompliance.com to make it easier to understand the legal solutions we offer for those involved in imports, exports and of course, the fashion industry.

We've also got a great new webinar series via The Fashion Planning Hub for entrepreneurs looking to learn about new subjects or for the executive looking to brush up on one.

We invite you attend our next webinar on a complimentary basis by playing our quiz, so check out www.fashionphub.com and we'll see you there!  

AVVO Talk: Importing China Products for Business Start-up

Question Continued:  Hello! I'm planning to open an online small business to import apparel products from China to re-sell in USA. 
1. I don't know if I must establish a company to be eligible to import goods to re-sell? 
2. What are the essentials documents and process that I must know? 
3. In which situation a small business must build a legal company? 
4. Is there any solution for me to import goods easily since I just start up and only import a small order to test the market first? 
Thank you

Deanna's Response:

Hello, take a look at www.cbp.gov, click on its "Trade" tab for more info. and browse through some of its Informed Compliance publications. Importers take on a lot of liability as US Customs views importing as a "privilege" and not a "right." As a result of this, if you plan to grow your business you need to be aware of your responsibilities in order to avoid problems. 

Apparel products also have their own labeling specific laws and testing requirements that must be abided by and that responsibility falls on the shoulders of you the importer, not to mention certain website disclaimers. 

As our practice concentrates on the fashion industry and imports/exports, you may find some guidance about what new entrants to the market like yourself can use by accessing our resources as provided in our Avvo profile.

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

AGOA Eligible Countries Keep Benefiting Despite GSP Lapse

Even during the present lapse in the Generalized System of Preferences (GSP), US Customs clarified for the trade community today that GSP-eligible imports from African countries eligible under the African Growth and Opportunity Act (AGOA) continue to benefit from GSP.

As currently legislated, the AGOA remains in effect through September 30, 2015.

Special program indicators (SPIs) denoted by a letter are shown on the Harmonized Tariff Schedule of the US (HTSUS) to indicate under which special program a product may apply.

The overwhelming majority of AGOA-eligible tariff items in the HTSUS indicate one of three GSP SPIs, namely “A,” “A*” or “A+,” and not the AGOA’s SPI “D.”

US Customs requires that the AGOA claim be made on these GSP-eligible tariff items by prefacing the HTSUS number with the SPI “A.”

To receive AGOA preference for eligible goods on a tariff item with the SPI “A,” “A*” or “A+” in the “Special” column of the HTSUS (and not “D”), importers should transmit the entry summary with the SPI “A” and without duty.

For further clarification please refer to the AGOA regulations, 19 CFR 10.178a, and the GSP regulations, 19 CFR 10.171-178.

Questions about this may be directed to the Trade Agreements Branch at FTA@dhs.gov or to myself by posting below or emailing 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