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AAFA Newsbreaker
Sept. 1, 2009
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AAFA offices will close early on Friday, September 4, and will be closed
Monday, September 7, in observance of Labor Day.
We wish you a safe, happy holiday.


In this issue...
Legislative, Trade & Regulatory News
  • AAFA Releases Updated Restricted Substances List (RSL)
  • AAFA's Kevin Burke Testifies at CPSC
  • DHS Releases Interim Rule and Requests Comments on Berry Amendment Extension
  • Canada Finds Dumping of Waterproof Footwear
  • AAFA Supports Lacey Act Funding
  • WTO Issues Arbitration Ruling in US/Brazil Cotton Case
  • AAFA Joins Industry Groups in Opposition to Proposed Changes to FAAAA
  • USITC Votes to Continue Cases on Narrow Woven Ribbons With Woven Selvedge from China and Taiwan
  • AAFA Joins in Effort io Right an Unhealthy Tax Court Decision
  • CAFTA-DR Short Supply Approval/Petition
  • CPSC Recalls Girls' Hooded Sweatshirts
    Statistics
  • AAFA Publishes Annual 2008 Trends: A Statistical Analysis of the US Apparel and Footwear Industries
  • Global Population to Hit 7 Billion People by 2011
    AAFA Member News
  • Simparel, Inc. Joins the AAFA
  • Reception at Material World West to Benefit the AAFA Education Foundation
  • FedEx Expands International Economy Services
  • AAFA Announces Release of Footwear Tradeshow Calendar
  • Announcing Attain Academy Partnership with AAFA
    In the Press
  • New Plan to End Honduran Standoff Resembles Failed Ones of Past
  • U.S. Second Quarter Earnings Tough to Beat
  • Trade Ministers Head for Fresh Doha Talks
  • China Overtakes Germany as World's Largest Exporter


  • Legislative, Trade & Regulatory News


    AAFA RELEASES UPDATED RESTRICTED SUBSTANCES LIST (RSL)
    AAFA on August 25 published the fifth edition of the AAFA Restricted Substances List (RSL), covering apparel, footwear and home textiles. The list, which has become the global industry standard, covers chemicals and other substances whose presence in a product is restricted through a government regulation or law. The list identifies the most restrictive iteration of that regulation world wide. Every six months, the publication is reviewed, updated, and the latest version is made available for free on the AAFA Web site. This fifth release has been updated to reflect changes spurred by the Consumer Product Safety Improvement Act (CPSIA), as well as new state and international regulations. (Steve Lamar)



    AAFA'S KEVIN BURKE TESTIFIES AT CPSC
    Kevin Burke, President and CEO of AAFA, testified August 25 at the Consumer Product Safety Commission's (CPSC) hearing on the agency's future strategic agenda and fiscal priorities. At the hearing, Burke requested the agency work with all stakeholders involved to develop regulations that appropriately address risk in a transparent and fair process. Burke also requested the CPSC educate all companies along the supply chain and provide guidance that will help industry comply with product safety regulations, including the Consumer Product Safety Improvement Act (CPSIA). The CPSC's Commissioners lauded AAFA's work on product safety -- particularly AAFA's Restricted Substances List (RSL) and Product Safety Council. The Commissioners added that they are working hard to unknot many of the issues with the CPSIA and to address many of the problems the new regulations are causing industry. (Rebecca Mond)



    DHS RELEASES INTERIM RULE AND REQUESTS COMMENTS ON BERRY AMENDMENT EXTENSION
    The US Department of Homeland Security (DHS) on August 17 released its interim rule and requests comments from industry on its new domestic manufacturing requirements for clothing, footwear and textiles. This rule results from an amendment to the American Recovery and Reinvestment Act (stimulus bill) sponsored by Congressman Larry Kissell (D-NC) and originally sponsored by his predecessor former Congressman Robin Hayes (R-NC) that extended the Berry Amendment to the Department of Homeland Security for the procurement of clothing and footwear. Comments on the interim rule are due September 16. (Kurt Courtney)



    Intertek

    CANADA FINDS DUMPING OF WATERPROOF FOOTWEAR
    The Canada Border Services Agency (CBSA) made its final determination August 26 that imports of waterproof footwear from China and Vietnam were dumped on the Canadian market and issued final dumping rates ranging from 0 percent to 43.8 percent for China and from 0 percent to 32.4 percent for Vietnam. If the Canadian International Trade Tribunal (CITT) makes a final determination of injury to the domestic industry, these final dumping rates will apply. The CITT's determination is due September 25. The current provisional duties will remain in place until this date. (Nate Herman)



    AAFA SUPPORTS LACEY ACT FUNDING
    A coalition of business and environmental organizations (including AAFA) sent letters August 17 to key House and Senate appropriators asking for sufficient funding to enable the US Department of Agriculture to successfully complete the necessary rule making under the Lacey Act. The Lacey Act requires import declarations for certain plant and wood products. Although this requirement is not presently enforced with respect to clothing, footwear and textiles, key regulatory actions that will make this exemption permanent are still pending. (Steve Lamar)



    WTO ISSUES ARBITRATION RULING IN US/BRAZIL COTTON CASE
    In a decision issued August 31, the World Trade Organization (WTO) ruled that the level of retaliation that Brazil could pursue against US exports to Brazil, as part of Brazil's ongoing case against US cotton subsidies, is limited to a few hundred million dollars, much lower than the $2-4 billion in retaliation Brazil requested. The United States applauded the WTO decision. It remains unclear whether or when Brazil will impose retaliatory duties against its imports of US-made products. The United States exported over $140 million worth of US-made apparel, textiles and textile products to Brazil in 2008. (Nate Herman)



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    AAFA JOINS INDUSTRY GROUPS IN OPPOSITION TO PROPOSED CHANGES TO FAAAA
    AAFA joined with a large swath of the US business community in sending a letter August 24 to the Port of Los Angeles urging the Port to end its support for a change in the Federal Aviation Authorization Act (FAAAA) and instead to work with its industry partners to address environmental mitigation issues and other problems affecting the port. The same group also sent an August 24 letter to the Port of Seattle supporting the Port's current Clean Truck Plan and asking the Port to not follow Los Angeles' lead. The Port of Los Angeles and certain other ports around the country are currently pleading with Congress to enact a change in FAAAA that would give the ports unprecedented power to regulate the trucking industry. If the proposed changes to FAAAA are approved, the changes would enable the ports to charge fees and exclude various independent truckers, which would lead to higher costs to ship goods through these ports. (Kurt Courtney)



    USITC VOTES TO CONTINUE CASES ON NARROW WOVEN RIBBONS WITH WOVEN SELVEDGE FROM CHINA AND TAIWAN
    The US International Trade Commission (ITC) determined August 21 that there is a reasonable indication that a US industry is threatened with material injury by reason of imports of narrow woven ribbons with woven selvedge from China that are allegedly subsidized and from China and Taiwan that are allegedly sold in the United States at less than fair value. All six Commissioners voted in the affirmative. As a result of the Commission's affirmative determinations, the US Department of Commerce will continue to conduct its countervailing and antidumping duty investigations on imports of these products from China and Taiwan, with its preliminary countervailing duty determination due on or about October 2, and its preliminary antidumping duty determinations due on or about December 16. (Nate Herman)



    AAFA JOINS IN EFFORT TO RIGHT AN UNHEALTHY TAX COURT DECISION
    AAFA joined 15 other associations in an amicus brief to support a rehearing of a recent federal tax ruling that may subject multinational companies to double taxation. The ruling by the 9th Circuit of the U.S. Court of Appeals against Xilinx Inc. ignored international norms and U.S. tax treaties to ameliorate double taxation by not recognizing the long-established domestic and international standard of an "arm's length standard" in related-party transactions in international commerce. The issue concerns transfer-pricing, the allocation of costs, between a parent company and a foreign subsidiary. The unhealthy ruling goes to the question of how broad the IRS's power is. For more information, please contact Ralph Reinecke at 703.797.9043.



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    CAFTA-DR SHORT SUPPLY APPROVAL/PETITION
    The Committee for the Implementation of Textile Agreements (CITA) determined that, effective August 14, certain woven fabrics of polyester, rayon and wool yarns, classifiable under subheadings HTS 5515.11.00, 5515.19.00, 5516.92.00 and/or 5516.93.00, as described in a July 2 petition from Fishman & Tobin, are not available in commercial quantities in a timely manner (in "short supply") under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). As a result, apparel produced in one of the CAFTA-DR countries using the subject third-country fabric can now enter the United States or any other CAFTA-DR country duty-free. Meanwhile, Hansae Co., Ltd. submitted a petition August 20 requesting that certain cotton/nylon/spandex open knit work crepe fabric, classifiable under subheadings 6005.22.00 and 6005.24.00, as described in the petition, be declared in "short supply," i.e. not commercially available, under CAFTA-DR . If approved, apparel produced in one of the CAFTA-DR countries using the subject third-country fabric could enter the United States or any other CAFTA-DR country duty-free. Comments are due September 4. (Nate Herman)



    CPSC RECALLS GIRLS' HOODED SWEATSHIRTS
    The Consumer Product Safety Commission (CPSC) announced August 27 the voluntary recall of 500 Roxy Quicksilver hooded sweatshirts for drawstring violations. The drawstrings were at the waist of the sweatshirt and posed entrapment hazards. No injuries or incidents were reported. (Rebecca Mond)



    Statistics

    AAFA PUBLISHES ANNUAL 2008 TRENDS: A STATISTICAL ANALYSIS OF THE US APPAREL AND FOOTWEAR INDUSTRIES
    AAFA on August 13 published its Annual 2008 Trends, a statistical and narrative analysis of the US apparel and footwear industry. The Annual 2008 Trends publication is prepared each year by AAFA industry analysts and includes a comprehensive analysis of business and trade information related to the US apparel and footwear industries, including US consumption, production, imports, employment, wholesale, and retail prices. The publication is free to AAFA members and available to non-members for $150. Previous annual trends reports are available free of charge on the AAFA Web site. (Nate Herman)



    GLOBAL POPULATION TO HIT 7 BILLION PEOPLE BY 2011
    According to the Population Reference Bureau's 2009 World Population Data Sheet, released August 12, global population numbers are on track to reach 7 billion in 2011, just 12 years after reaching 6 billion in 1999. Virtually all of the growth is in developing countries. Further, the growth of the world's youth population (ages 15 to 24) is shifting into the poorest of those countries. Well over 95 percent of the world's population will live outside of the United States, presenting great market potential for selling shoes and clothes. (Nate Herman)



    AAFA Member News


    SIMPAREL, INC. JOINS THE AAFA
    Simparel, Inc.
    Ron Grilli, CEO
    53 West 36th Street, 11th Floor
    New York, NY 10018
    Phone: 212.279.5800
    Email: Ron.Grilli@simparel.com
    Website: www.simparel.com

    Simparel offers a flexible and affordable global supply chain management solution. Scalable and customizable for ever-evolving industries, the Simparel solution is optimized for change. Whether your business involves fashion, home fashions, toys, or other industries where efficient supply chain management is crucial, Simparel's solution can help you make the right business decisions faster. (Maureen Storch)



    RECEPTION AT MATERIAL WORLD WEST TO BENEFIT THE AAFA EDUCATION FOUNDATION
    AAFA, in partnership with Material World, California Apparel News and the California Market Center, is proud to host on September 30 a cocktail reception to benefit the AAFA Education Foundation. The Foundation provides scholarships to students in the sewn products industry through funding to thirteen AAFA-endorsed institutions. We are also thrilled to announce that George Feldenkreis, Chairman and CEO of Perry Ellis International, has committed Perry Ellis to be the Foundation’s first Scholar Sponsor of the reception, which entitles him to have the Perry Ellis name applied to a scholarship. Since its creation in 1968, the Foundation has been able to provide scholarships at 17 different institutions in the United States and Canada benefiting 2,500 students. Tickets are $100 each and sponsorships are also available. Transportation will be provided from the California Market Center to the event site, the Fashion Institute of Design and Merchandising. (Maureen Storch)



    TITAS --Taipei Innovative Textile Application Show--One-Stop Shopping Center for Fashion, Function and Eco Textiles. (October 14-16, 2009) More

    FEDEX EXPANDS INTERNATIONAL ECONOMY SERVICES
    In its quest to meet the full range of customers' international shipping needs, FedEx has expanded its international shipping portfolio to provide more choices and reach for customers shipping packages and freight worldwide. Whether you're an importer, an exporter or both, the expanded country coverage means that you can reach out to more suppliers and customers in more global markets. FedEx Express now offers FedEx International Economy® service from more than 90 countries and territories and FedEx International Economy® Freight service is now available from more than 50 countries and territories. Both services are door-to-door, customs cleared, time-definite delivery services and offer an economical choice when timing is not critical. Delivery for both services is typically 2 to 5 business days. Details on the FedEx International Economy service expansion, along with shipping tools for U.S. exporters, are available at fedex.com/international/choices. AAFA members can save up to 49% on select FedEx® international shipping services by joining the AAFA Freight Savings Plan. For more information call Siriani & Associates, at 800.554.0005 or e-mail info@siriani.com. For eligible FedEx® services and rates, contact your freight savings program provider, Siriani & Associates. All FedEx shipments are subject to the applicable FedEx Service Guide. FedEx service marks used by permission. (Maureen Storch)



    AAFA ANNOUNCES RELEASE OF FOOTWEAR TRADESHOW CALENDAR
    A calendar of footwear tradeshow events for the coming year is now available on the AAFA website. Events listed are hosted by numerous organizations and span the remainder of 2009 through fall 2010. AAFA hopes this will serve as a useful tool to its members. (Susan Lapetina)



    ANNOUNCING ATTAIN ACADEMY PARTNERSHIP WITH AAFA
    The AAFA is pleased to announce it has partnered with Attain Academy to offer AAFA members a 10% discount on all Attain Academy sessions covering a wide range of deduction and chargeback related training through webinars and on-line discussion groups to help companies increase cash flow by reducing and controlling chargeback and deductions. A 30-day FREE introductory offer to access the online "Deduction Fundamentals" session (value $149) is available to AAFA members until September 30th. Click here to find out more about the Deduction Fundamentals seminar and to register online, then click "register" as a non-member. Enter coupon code AAFA09 in the "coupon code" box when prompted on the credit card page during the registration process to receive your special discount. Please e-mail info@attainacademy.com with any questions. (Mary Howell)



    In the Press


    New Plan to End Honduran Standoff Resembles Failed Ones of Past
    from The New York Times
    The leader of the de facto government of Honduras, Roberto Micheletti, came to the phone on Thursday to discuss what aides had billed as a bold new plan to resolve the political standoff in his country, including his immediate resignation from office. More

    U.S. Second Quarter Earnings Tough to Beat
    from Reuters
    For corporate America and Wall Street, the second quarter may be a tough act to follow. Just as investors were closing the book on second-quarter earnings, Dell drew them back in by accidentally releasing earnings that beat expectations just minutes before the closing bell. More

    The law firm of Steptoe & Johnson LLP invites you to subscribe to our free newsletters: Customs Law Advisory, Apparel Industry Alert, and Upcoming Events. These periodic newsletters provide legal insight that may be crucial to your business. Subscribe today

    Trade Ministers Head for Fresh Doha Talks
    from AFP
    World trade ministers meet in the Indian capital this week for a fresh round of talks aimed at building momentum to conclude the long-stalled Doha Round of global free-trade talks. More

    China Overtakes Germany as World's Largest Exporter
    from domain-b
    China has become the world's largest exporter, overtaking Germany in the first half of 2009, the World Trade Organization said. More



    AAFA Events & Educational Programs

    September 9, 2009
    AAFA/Intertek Footwear
    Technical Road Show
    East Coast

    Sheraton, Danvers, MA

    September 14, 2009
    AAFA/Intertek Footwear
    Technical Road Show
    West Coast

    Portland Convention Center, Portland, OR

    September 16-17, 2009
    Human Resources Leadership Council Meetings
    FIDM, Los Angeles, CA

    September 22, 2009
    Government Relations Committee meeting
    Washington, DC
    (Steve Lamar)

    September 23-24, 2009
    Board of Directors Awards Reception and Meeting
    Washington, DC
    (Marti Rust)

    September 24, 2009
    Product Safety Council Meeting
    Washington, DC
    (Rebecca Mond)

    September 30-
    October 2, 2009

    Material World West
    Los Angeles, CA
    (Susan Lapetina)

    Complete schedule of events




    AAFA Member Partners & Programs


    By AAFA partner,
    Boxwood Technology, Inc.
    Employer and employee
    job services.




    Freight Savings Plan
    By AAFA partner, Siriani & Associates, Inc.
    Save on shipping costs.



    Footwear Testing Services
    By AAFA partner, Intertek
    Expert resource and discount technical testing



    RFID Savings Program
    By AAFA partner, Avery Dennison
    Negotiated below-market priced labels




    XRF Analyzers
    By new AAFA partners,
    Innov-x and Thermo Scientific.
    Identification and quantification of toxic metals in products.


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