International Trade, Fashion Compliance and Social Change

Where does the opportunity for social change exist in international trade?  How can Fashion Compliance move us in that direction?

While the role of international organizations such as the United Nations was well understood by the graduating seniors in the Peace & Conflict Studies Dept. at U.C. Berkeley, international trade systems to effect social change was not - I learned, while lecturing there this week - something they had really ever contemplated. 

It’s not surprising however, when you stop to consider that while virtually every person in the US wears and uses products made overseas, little thought is given to how they got here, who made them, and how the consumer’s interest in a cheaper product impacts those workers around the world who make these goods.

When you learn however, that electronics and wearing apparel are the top 2 imports into the US – which is the largest single economy in the world (for now anyway…) – you realize that having the opportunity to import here means economic opportunity for those foreigners that export here.

This is where the opportunity for social change exists.

And this is where a project I am working on that I named “Fashion Compliance” is aiming to address. 

Fashion Compliance is about educating small producers, retail start ups and others in making US market-ready clothing and home fashions that are compliant with US certifications and regulations.

The reason for this is so that the products bought or sold by these entities can lawfully enter the US market, strengthening these businesses with their cohorts, and so that they can protect and grow their enterprises.

This new work-in-progress can be followed on Facebook at https://www.facebook.com/FashionCompliance and for a sneak peak at some of the videos, such as that on country of origin marking, you can check out http://www.youtube.com/user/fashioncompliance and subscribe to the channel to be notified of new episodes.

Your suggestions are welcome.  Ciao ciao!

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

Keep up with me:

On Facebook at https://www.facebook.com/FashionCompliance 

On YouTube at http://www.youtube.com/user/fashioncompliance

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

Country of Origin UK - What Next? Residency in Spain?

Today I wrote some letters on stationary that my mother bought in Italy in 2000.  On the package, was the following sticker indicating that its country of origin was the UK.

I had been studying at the Mediterranean Academy of Diplomatic Studies in Malta in the late 1990s and recalled that back then the European Union (EU) was still adding countries through their many “enlargements” in order to bring in other countries to participate in a unified political system.

The 6 founding members of the European Community were Belgium, France, Germany, Italy, Luxembourg and the Netherlands.  In 1993 however, came the creation of the EU which included these countries and also the UK, Greece, Denmark, Spain, Portugal and Ireland.

A unified customs system had begun years earlier however, with the European Economic Community.  

Nonetheless, given all of the developments since then it struck me as odd to see a product sold in Italy nonetheless marked with its country of origin as being the UK.

And speaking of developments, just earlier this month the US and European Union had a discussion on the possibility of joint trade relations.  For me this was quite unimaginable, because with the European model, the first step of having open trade borders led to integration on a much higher level, namely that someone from Bulgaria or Romania (joined EU in 2007) for example, can go and live in France or Spain and lawfully work there, and in fact, many have gone there.

Would opening up our trade borders ultimately open the door for me (or you) to live along the Mediterranean Sea in Cataluyna?  Wouldn’t that be nice to live in Barcelona???

And who would come and live here with us?  Makes you wonder…

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

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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

Tweet me @fashcompliance!

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

What Is a "Sale?" (US Customs' View of It, That Is...)

Here in NYC we are wrapping up the season of winter sales (which, as an aside, have been pretty fun to shop), but this has nothing to do with what a “sale” is when it comes to importation as this concept does not relate to discounted merchandise.

A “sale” in Federal Court language is the transfer (or “passage”) of title from one party to another for “consideration.”

In everyday language, it means where I obtain something belonging to someone else in exchange for something else.  For example, trading money (i.e., purchasing) for a cashmere sweater from Bloomingdale’s, which is likely to be discounted now given the winter sales season but alas, I digress…

Having a “sale” is relevant for valuation purposes of an imported product.  This is because duties are collected on the value of merchandise which is typically identified in a commercial invoice.  Where a part of the product is supplied by the importer and the value for this is not accounted for, it can lead to an incorrect declaration and hence, an inaccurate calculation on the collection of customs duties which must be paid to US Customs when goods are entered into the US.

A sale must therefore be identifiable.

While US Customs uses no single factor as evidence, acceptable proofs of such exchange include payment by check, bank transfer, or such other commercially acceptable means of payment.  The payment must also be made for the imported merchandise at issue.  Therefore, a general transfer of money from one corporate entity to another – which cannot be linked to a specific import transaction – would not likely demonstrate the passage of title.

Lastly, when deciding whether a sale happened or not, US Customs will look at whether the circumstances of the transaction indicate that the parties are functioning as buyer and seller.  While this is normally not difficult to identify when unrelated parties are doing business (even at the most basic level like what you would find on www.craigslist.org), when the parties are related such a clearly identifiable transaction isn’t always clear, which could lead to inaccurate value declarations as described above.

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

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ciao ciao!

Spring/Summer 2014 Fashion Color Trends

While I love to be “behind the scenes” of fashion, I also love being in the forefront, and being briefed on Spring/Summer 2014 color trends today put me front and center of what’s coming next!

Thanks to a trend specialist from Stylesight, I was presented with the four (4) mega trends entitled
1)      Rational
2)      Creed
3)      Eden, and
4)      Real

 *Please keep in mind that the trend descriptions below incorporate such descriptions as provided by Stylesight and are not my attempt to claim any authority as a color trend expert – I’m just sharing the information as I know some of you readers want to know about this!

The “Rational” trend (which is actually written differently, however so as to not confuse anyone, I’ve typed it “normally” here) is about colors reflecting mineral elements and feminine minimalism that is soft - not aggressive. 

It’s about symmetrical proportion, “curvilinear” forms and creating textures, whether by using folding and pleating techniques to create light structures, or beading and embroidery.

Triangular silhouettes, repetitive geometric motifs and liquid gold and mercury colored metallics woven into fabrics are also a part of the Rational trend.

Lastly, grids and graph paper are translating to apparel within this trend.

The “Real” trend is about a look and feel of the past, altering our notion of time using filters to create an earthy palette.  Taking cues from the 1970s, head-to-toe denim (i.e., tops and pants) and even Hawaiian shirts are making a come back because it’s a return to authenticity - yes, I'm serious!

Colors in yellow, brown and rust make up this trend, as does wood and the knots and grains therein which will inspire prints in fabric.  Tortoise shell printed on material will have a comeback, with eyelet fabrics and products from recycled materials also being a trend for 2014.

The “Creed” trend looks at space and sea and thus, colors that come from the ocean and sky are what this trend is about.  These include indigo, sky, water blue, teal highlighted by bright yellow and coral colors, as well as white, whether it’s got a powdery, chalky or cracking look.  The image of a blue sky with clouds also inspires tie-dye techniques.

The use of mystical symbols, ultra sheer gauze and fabrics with beads give apparel textures.  Multiple layers of thin fabrics (again texture) as well as jersey fabrics which allow for tight body hugging designs round out this trend.

Lastly, the trend “Eden” is about embracing expression and is inspired by Central and South America.  Red, orange and fuchsia blending with acid yellow and greens along with clashing embroidery colors mark this trend. 

Graffiti art, tribal motifs, jacquards made of “ethnic references” – not sure what that means - patches, pins and colored warp to create an “eye game” are also prevalent in this trend.

In addition, woven checkers and plaids which are multi-colored, ruffles used in a grand scale and animal prints worn “to the max” make up this trend.

I wish I had images for you but since they are proprietary to Stylesight, it’s best I simply refer you to their website where you can check out their “Runway Roadmap” from Spring/Summer 2014 at www.stylesight.com.

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

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New Year, New Diet, and New Customs Rule on $2500 “Informal Entry” Limit

It’s not uncommon to find people engage in *new* things, such as a new workout routine, new diet, or maybe even a new boyfriend/girlfriend (hey, why not?) at the start of a new year.

Like people, federal agencies also start things at the new year as US Customs is doing with it’s new dollar (USD) limit for which merchandise being imported into the US may reach in order to qualify for an “informal entry.” 

For more about entry, check out this article here.

The informal entry limit is going from $2,000 to $2,500 and when an importation qualifies as an ‘‘informal entry,” it eliminates the need for a surety bond, expedites the customs clearance process, and reduces another required charge, known as the Merchandise Processing Fee (MPF) to $2 (assuming the entry is filed electronically).

New Rule Effective 07-Jan-2013

Reasons for this increase are to mitigate the effects of inflation between the United States and Canada and to harmonize the value thresholds for expedited customs clearance to $2,500 from the current levels of $2,000 for the United States and $1,600 for Canada. 

For any merchandise valued over $2,500, formal entry is required and importers must provide a surety bond (more info. on this can be found here), complete Customs form 7501 (instructions here), and pay a minimum of $25 in MPF. 

 Unless exempt under a free trade agreement, and in addition to any duty or tax owed, merchandise requiring a formal entry is subject to a 0.3464 percent ad valorem MPF, which may be no greater than $485 and no less than $25.  Formal entry also requires detailed information regarding the import transaction as well as commercial documents pertaining to the transaction.

Of course, based on his/her discretion, a port director, may always require an importer to file a formal entry.

For more information, you can read the entire final rule on the informal entry limit in the Federal Register (73 FR 72715) here.

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

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HAPPY NEW YEAR!

OWIT-NY Export Event This Wed. Dec. 12th 6 PM NYC

Come join me and the NY Chapter of the Organization of Women in International Trade for it's next event entitled "Export Financing Programs with the Small Business Administration (SBA) and Toni Corsini"

ALL PROCEEDS WILL GO TO THE RED CROSS SUPPORTING HURRICANE SANDY EFFORTS!

Highlights of the program agenda include:

1)      Identifying the three SBA Export financing programs and how they can help US exporters

2)      A brief overview of the Credit Insurance programs available through "ExIm Bank" for US exporters

3)      The services available to US exporters from the US Dept. of Commerce (Commercial Service)

For directions and to register, go to www.owitny.org.

Hope to see you there!

ciao ciao!

Deana