Does Your New Pair of Shoes Have a Fuzzy Bottom? CBP’s New ISO 20871 Determination

Strange but true, in certain cases where a textile material covers the “outermost sole” of a rubber or plastic soled shoe, the duty rate on such imported shoe may be lower than if the sole were without the “fuzz.”

This results because such textile coating can move an importation of footwear from one category, i.e., classification, to another, and with such move can come an accompanying change in the rate of duty (and possibly one that is favorable to the importer – think cheaper).

For anyone not well-versed in tariff-ease, all this really means is that a fuzzy bottom can cost less to import in to the US than one that is bare.

In case it is not obvious, the “outer sole” is that part of footwear (other than an attached heel) which, when in use, is in contact with the ground, i.e., the bottom of the shoe.

Since a more favorable duty rate may, at times, be obtained where footwear has an outer sole of textile, it’s not uncommon to find importers buying footwear that has a thin textile coating on the bottom (which can feel fuzzy) and then classifying the footwear under the tariff number for shoes having textile on its sole in order to take advantage of these duty savings.

Since US Customs is in the business of collecting as much money in duties (revenue) as possible, in an effort to curb inappropriate usage of such classifications, it routinely requests more information on imported shipments to confirm that the textile is actually there.

Starting this month (Nov. 2013), US Customs has decided that the ISO 20871 test method will be recognized in assessing the characteristics of the textile material attached to outer soles.

This means that when an importer is asked to provide more information (Customs Form 28) about a textile covered sole, an analysis performed by an independent lab using this test method (ISO 20871) should be presented.

 Also, keep in mind that US Customs can always conduct its own testing when circumstances warrant it.

To learn more about the impact of this, the newly branded US Fashion Industry Association (formerly USITA) is having a webinar on this.  More information on the event can be found here.

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

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NYC's Parsons School of Design Hosts Africa Fashion Event This Friday

Join me and fellow panelists for a vibrant discussion on the African fashion industry, international trade and fashion compliance this Friday at NYC's Parson's School of Design, Friday Nov. 1, 2013 at 6 p.m.

Order tickets via Eventbrite:
http://www.eventbrite.com/event/8974387635/efbevent

Project Africa and the Parsons MA Fashion Studies Program are proud to bring you an informative discussion on the intersections of African culture on fashion and design. Join us for an exciting program with experts and practitioners from a variety of fields, including design, culture, identity, and business.
...
Moderator - Carolou Goodridge

Carolou Goodridge was born and raised in New York to Liberian parents. She's always been interested in the fashion; however, her path changed when she studied Political Science in college and moved to Washington, DC to work in politics. She spent five successful years on Capitol Hill, earned a Master's degree in Public Policy/Peace Operations, and worked as a lobbyist for the next two years. Three years ago, Carolou made a life-changing decision to leave the political world and has since relocated back to New York to finally pursue her dream career in fashion with a global focus. In 2010, she established Image Forward Consulting, a luxury style and image consultancy for gentlemen which participated in African Fashion Week among other important fashion events. Check IFC out on Facebook.

Panelists

Deanna Clark, Esq. is a Senior International Trade and Fashion Compliance attorney at Shayne Schrier Shayne Koenig Sanburg & Ryne in New York, NY. She advises clients on how to follow the laws that relate to the products they sell within the U.S. whether for fashion designers, retailers, importers, start up e-commerce sellers, or otherwise. She also advises on labeling and marketing claims, such as using eco-friendly claims and Made in USA, as well as assists clients with responding to government inquiries and dealing with audits and other actions taken by them. Deanna is an adjunct professor at NYCs Fashion Institute of Technology (F.I.T.) in its International Trade and Marketing Dept. where she teaches International Business Law. She hosts Fashion Compliance Defined an educational program on fashion law, and writes a blog called International Trade for Everyday People. She serves as the International Representative to the NY Chapter of the Organization of Women in International Trade and as an advisory board member of Africa Fashion Week. Deanna received her JD from Tulane Law School, an MA in Diplomatic Studies from the University of Malta's Mediterranean Academy of Diplomatic Studies, and her BA in Peace & Conflict Studies from UC Berkeley. You can follow her on Twitter @fashcompliance or join the "Fashion Compliance" page on Facebook by "liking" it.


Busayo Michelle Olupona is the founder and creative director of Busayo, a Brooklyn-based apparel and accessories company. The clothing line is a celebration of African textiles and aims to brighten the contemporary American woman's wardrobe with its interpretation of the vivid colors and geometric patterns of traditional African fabrics (specifically hand dyed fabrics) into modern silhouettes. The line is available online and in several boutiques throughout the country. The line has been featured in Elle, Essence, Ebony, Runway Magazine and Huffington Post. Prior to starting the clothing line, Busayo practiced corporate finance law at Cleary Gottlieb Steen & Hamilton LLP. She is a graduate of the University of California, Berkeley and New York University School of Law.


Aster Thomas is co-founder of fashion blog Pradagee.com, a communication expert, and fierce African fashion advocate. Aster’s passion for fashion began at an early age as a model in both the United States and Ethiopia. She has a B.A. in Communications and a Certificate in Project Management from New York University. She works for a digital media company as a Business Development Manager for the Emerging Markets division, where she helps develop business strategies and connections for AFKInsider.com (an African business news website). Aster was invited to speak on Aljazeera's popular show The Stream ito speak on the issue of cultural-appropriation by large retailers, specifically Urban Outfitters. You can visit her website here: www.pradagee.com

 
 

Increased Scrutiny by FTC on the Blurring Lines of Digital Ads With Digital Content

The fashion industry and many others are blending advertisements with news, entertainment, and other content in digital media, referred to as “native advertising” or “sponsored content.”

 

For e-commerce vendors selling domestically or for export to destinations outside of the U.S., you should take note of this increase in scrutiny as it could ultimately correlate to the way you are thinking about advertising.

This is because if the government is paying attention, as is in this case, it is trying to ascertain where the bright line is (for this type of advertising) as it relates to non-deceptive marketing claims so that it can decide where enforcement measures (think monetary penalties) can be assessed.

According to the Federal Trade Commission (“FTC”) there is an increase in advertisements that more closely resemble the content in which they are embedded, which are graphical images, typically rectangular in shape, placed on publishers’ websites and mobile applications.

For this reason, the FTC is hosting a workshop on December 4, 2013 in Washington DC to explore the blurring lines of digital ads with digital content.  The purpose is to build on previous Commission initiatives to help ensure that consumers can identify advertisements as advertising wherever they appear.

The workshop will bring together publishing and advertising industry representatives, consumer advocates, academics, and government regulators to explore changes in how paid messages are presented to consumers and consumers’ recognition and understanding of these messages.

The general public is invited to make submissions and may do so online here.

Paper submissions may also be submitted and should reference "Native Advertising Workshop" both in the text and on the envelope, and should be mailed or delivered to: 

Federal Trade Commission, Office of the Secretary, Room H-113 (Annex X), 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. 

The FTC requests that any paper submissions be sent by courier or overnight service, if possible, because postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. 

Requests to participate should include a statement detailing any relevant expertise in digital advertising and should be submitted by October 29, 2013 via email to nativeads@ftc.gov.  Panelists selected to participate will be notified by November 6, 2013.

The workshop is free and open to the public.  It will be held at the FTC’s satellite building conference center, located at 601 New Jersey Avenue, N.W., Washington, D.C.  The Commission will publish a more detailed agenda at a later date.

For more information, click here.

 

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

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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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Do You Make Men’s or Boy’s Suits of Imported Worsted Wool?

Submit Your Application by 5 pm on Oct. 15, 2013

 to Obtain a Tariff Rate Quota!

 

 

A “Tariff Rate Quota” (TRQ) is a temporary reduction on import duties, and in this particular case, it would mean a duty savings of 25%, or $25 on every $100, imported through Dec. 31, 2014.

Title V of the Trade and Development Act of 2000, which created this TRQ, requires that they be allocated to persons who

1) Cut and sew men’s and boy’s worsted wool suits, suit-type jackets and trousers in the United States, and/or

2) Weave worsted wool fabrics with an average fiber diameter of either 18.5 microns or less, OR that which is greater than 18.5 microns, for making men’s and boy’s suits.

Right now, applications to obtain this reduction are being accepted from “persons,” i.e., firms, corporations, or other legal entities, who either fall under either of the two above categories.

In order to be eligible for this TRQ, an application must be submitted on the form provided at http://otexa.ita.doc.gov/wooltrq/wool_app.htm

and be submitted by 5 pm on October 15, 2013 to the

Office of Textiles and Apparel, Room 30003

U.S. Dept. of Commerce

1401 Constitution Ave. NW

Washington, DC  20230

If you have any problems with the link above, you may also call (202) 482-3400.

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

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Come Join Me in NYC Tonight!

WHERE: Bryant Park Grill Rooftop Bar / 25 W 40th St, New York, NY 10018

WHEN: 6 to 8 pm

 

 

 

Tonight OWIT New York (Organization for Women in International Trade) would like to invite you and your colleagues to join us for an evening of networking with active members of the international trade community and help us kick off our 2013-2014 calendar year!

 

OWIT New York will offer one complimentary drink ticket for each new and returning OWIT New York member with proof of registration for the 2013-2014 year!

 

We hope to see you there!

 

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.

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

 

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On Twitter @fashcompliance https://twitter.com/fashcompliance

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