Spread the Word! Free Fashion Protection Seminar on Thursday Feb. 6, 2014 at 2 PM in NYC

For more information, click here:  http://www.nypl.org/locations/tid/65/node/238886

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

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CUSTOMS BROKERS: Remember to Pay Annual Fee by February 21, 2014

The annual fee of $138 USD is due for payment on 2/21/14 for each permit held by a licensed customs broker, whether it is an individual, corporation, partnership or association.

U.S. Customs and Border Protection (CBP) regulations (19 CFR 24.22(h) and (i)(9) provide that this fee is payable for each calendar year in each broker district where a broker has been issued a permit to do business.

Though the date for payment has historically been simply published in the Federal Register annually 60 days before the due date, it is anticipated that for subsequent years, this annual user fee will be due of the first business day of February this year.  We shall see…

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

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“Can I Get Caught Too?” Er… Yes You Can!

People ask me all the time, “Do you really think I could get caught selling a product that is in violation of a U.S. law?  I’m such a small company, could I really be on anyone’s radar?”

My answer inevitably is “Yes,” that you don’t need to be a “big fish” to get hit with big penalties resulting from multiple violations (they rarely hit you with one).

Moreover, if you are importing violative products, you could end up being penalized by not just one federal agency but two (think tens-of-thousands-of-dollars…)

Taking children’s wearing apparel as an example, in the last 30 days there have been 7 recalls by the U.S. Consumer Product Safety Commission, including 1 announced just yesterday! 

They were recalled for either: 

-  failing to meet the federal flammability standard,

-       - posing a choking hazard, or

-       - posing a strangulation hazard.

Specifically, the product recalls were as follows:

1) Children’s Pajamas, recalled by the Bailey Boys – Flammability (sold at children’s boutique stores nationwide)

2) Wearever Girl’s Hooded Jacket Sets, recalled by David’s Place – Strangulation (sold exclusively at Burlington Coat Factory stores)

3) Girls’ BCG Hooded Windsuits, recalled by Academy Sports + Outdoors – Strangulation (sold exclusively at Academy Sports + Outdoors stores and its website)

4) Girls’ Pink Leopard Jackets, recalled by Ram’s Imports – Strangulation (sold exclusively at Burlington Coat Factory stores)

5) Yoki Girls Faux Leather Jackets with Drawstrings, recalled by Mirage Fashions – Stangulation (sold exclusively at Burlington Coat Factory stores)

6) Infant Sandals, recalled by American Boy and Girl – Choking Hazard (sold exclusively at Meijer stores)

7) Hooded Sweatshirts, recalled by Little Willy’s – Strangulation (sold exclusively at Zullily.com and Gilt.com stores)

Consumers should immediately take the recalled product away from children and return them to the store they purchased it from for a full refund.

As for the seller, not only does getting caught typically mean heavy penalties, but a product recall is disruptive to business (stay tuned for a future article on this as changes to the rules are being considered), can hurt your business relationships, and can tarnish your reputation.

And who wants that to happen?  Not you, and not me either.

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

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Changes to the Rules Under the Wool Products Labeling Act of 1939?

You now have a few more days to send in your comments! New Deadline – 12/3/13   

 The Federal Trade Commission (FTC) published a Notice of Proposed Rulemaking on September 20, 2013 seeking comments on its proposed amendments to the rules and regulations under the Wool Products Labeling Act of 1939.  Comments were originally due on November 25, 2013.

Interestingly, an extended deadline of December 3, 2013 to submit comments has occurred due to a request from the Embassy of Australia to the FTC.

On November 20, 2013, the Embassy of Australia contacted the Commission on behalf of the Federation of Australian Wool Organisations (“FAWO”) to seek an eight (8) day extension since it was participating in a meeting of the International Wool Textile Organisation (“IWTO”) in Guangzhou, China, on November 25-26, 2013, to discuss the FTC's proposed amendments.

FAWO contended that the FTC’s record would benefit from comments collected at the meeting given the role of the IWTO in representing wool industry stakeholders at an international level.

The FTC likewise believes that the FAWO’s input would likely assist the Commission in evaluating the proposed amendments to the Wool Rules.

Since the requested short extension of the comment period would not substantially delay the rulemaking process and the FTC believed that extending the comment period to facilitate a more complete record outweighed any harm that might result from an eight (8) day delay, it agreed to the extend the comment period until December 3, 2013.

For more information, you can contact Robert M. Frisby, Attorney, (202) 326-2098, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

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

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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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