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AAFA Newsbreaker
Oct. 13, 2009
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In this issue...
Legislative, Trade & Regulatory News
  • European Commission Proposes Extending Dumping Duties on Chinese & Vietnamese Leather Footwear for Another 15 Months
  • South Africa Doubles Import Duties on Apparel
  • AAFA Urges CPSC to Take Rational, Objective Approach to Civil Penalties
  • 2008 US Apparel and Footwear Imports Remain Down January-August Amid Ongoing Recession & Inventory Tightening
  • Apparel Employment Slightly Lower in September as Footwear Employment Surges in August
    AAFA Member News
  • S. Rothschild and Company, Inc. Joins the AAFA
  • AAFAís CPSIA and IPR Presentations at Material World Available Online
  • K.I.D.S./Fashion Delivers Honors Industry at Annual Gala
    In the Press
  • Still Fragile, Haiti Makes Sales Pitch
  • Obama Leans Toward Limited Troop Boost
  • Defense: Generals Want Faster, Focused Procurement
  • L.A.'S Garment Industry Goes from Riches to Rags

  • Legislative, Trade & Regulatory News

    The European Commission issued a proposal to the European Union's (EU) 27 member states today, October 13, that would extend the current anti-dumping duties on EU imports of Chinese and Vietnamese leather footwear for at least another 15 months (April 2011). The current anti-dumping duties on European imports of leather footwear from China (16.5 percent) and Vietnam (10 percent) are due to expire January 3, 2010. The proposal was issued as part of the Commission's "expiry review" of the dumping duties, which had already extended the dumping duties for 15 months beyond their original October 2008 expiration date. While it appears that a majority of the 27 EU member states oppose any extension of the dumping duties, the Commission hopes to persuade enough EU member states to support the proposal ahead of an expected vote on the proposal in November. The 27 EU member states must vote on any proposal made by the Commission. A simple majority vote carries the day, regardless of the size or relative economic power of an individual EU member country. If a majority of the 27 EU member states vote against the proposal, the European Commission must end the current dumping duties on January 3, 2010 unless they can convince a majority of member states to support a new proposal in time. (Nate Herman)


    Under intense political pressure from trade unions, South Africa announced October 9 that it has raised tariffs on all South African imports of apparel to 45 percent from 20 percent and 40 percent, respectively. AAFA will work with the US government to oppose this decision as an egregious violation of international trading rules. (Nate Herman)

    AAFA submitted comments October 1 to the Consumer Product Safety Commission (CPSC) on its proposed ruling on the factors the CPSC will use to determine civil penalties for product safety violations. In its comments, AAFA expressed concern that an undue reliance on civil penalties as an enforcement tool could have a negative effect on a company's willingness to report a potential product hazard. However, in the cases that appropriately warrant civil penalties, AAFA and its members support an approach to assessing civil penalties that is flexible, clear, comprehensive and fair. While the CPSC's Interim Final Rule does allow for flexibility and rejects a matrix approach that may limit the CPSC's ability to comprehensively approach and analyze the unique circumstances surrounding a violation, AAFA urges the CPSC to provide further guidance to limit confusion and provide transparency in the civil penalty assessment process. (Rebecca Mond)

                      Can you cut it?

    Consumers and 'fast fashion' are intensifying the pressure to cut time-to-market. Expert say lead times will need to be cut by 50 percent or more in the next 2-5 years. The question is: Can your business cut it?

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    US apparel imports (actual data) declined 7.9 percent to 13.6 billion square meter equivalents (SME) in quantity terms and 12.5 percent to $41.1 billion in value terms during January-August 2009, compared to January-August 2008, while US footwear imports (actual data) fell 11.2 percent to 1.4 billion pairs in quantity terms and 9.4 percent to $11.8 billion in terms of value. For a more detailed summary of the trade numbers, please go to AAFA's website. (Nate Herman)

    Lectra, the #1 technology provider to the fashion industry offers complete, integrated solutions that automate, streamline, and accelerate product design, development, and manufacturing. Lectra Fashion PLM allows you to truly manage your collection and product lifecycles. Sharing an integrated fashion platform, the Kaledo suite simplifies the design development process while encouraging creativity.

    According to the US Department of Labor's Bureau of Labor Statistics October 2 release of September 2009 (August 2009 for wholesale apparel trade and footwear) employment figures, US total apparel manufacturing employment inched down by 0.1 percent to 168,300 employees in September after growing by 1.1 percent in August. Apparel manufacturing employment has remained relatively stable since April 2009 but was nonetheless 16.0 percent lower in September than in September 2008. August US apparel wholesale trade employment increased for the second straight month, up by 0.6 percent to 138,500 from July, but was still 7.5 percent lower than in August 2008. US footwear manufacturing employment was especially robust in August, surging by 8.1 percent to 14,700 from the previous month after experiencing a 2.9 percent decline during the previous month. August footwear employment was still 7.5 percent lower than in August 2008 but was just 1.3 percent lower than in November/December 2008. US textile mill (yarn, fabric, etc.) employment increased by 0.9 percent in August and 0.2 percent to 123,300 in September but was still 17.0 percent lower than in September 2008. For its part, US textile product mill (sheets, blankets, towels, curtains, auto/furniture upholstery, etc.) employment rose 1.6 percent to 126,600 in September, but was still 13.0 percent lower than in September 2008. Total non-farm employment fell by 263,000 workers on a seasonally-adjusted basis in September and the unemployment rate edged up from 9.7 percent to 9.8 percent. Please note that the manufacturing figures include total employment (distribution, management, sales & marketing, R&D, administrative, etc., as well as production workers) at all US apparel, footwear and textile manufacturers. (Nate Herman)

    AAFA Member News

    S. Rothschild & Co. Inc.
    Daniel Torczyner
    500 7th Avenue
    New York, NY 10025
    Phone: 212.354.8550

    S. Rothschild and Company Inc. is a luxury manufacturer of women's and children's coats and outerwear with a tradition of excellence dating back over 125 years. S. Rothschild & Co has an impressive line up of proprietary brands including Larry Levine, L.L. Collezioni, Mackintosh, Rothschild and Maralyn and Me as well as a top-tier stable of licensees that includes Via Spiga, Elie Tahari, Grane and Glo Jeans, Tommy Hilfiger and DKNY offering superior styles and quality to women and children, to infant, toddlers and teens. (Maureen Storch)

    At Material World West, AAFA presented two seminars featuring panel discussions on two of the most challenging issues the industry is grappling with today: Consumer Product Safety Improvement Act and California Prop 65, and Intellectual Property/Counterfeiting. The next Material World show is April 20-22, 2010 in Miami Beach. (Susan Lapetina)

    As a Board member of the Kids in Distressed Situations, Inc. (K.I.D.S.), I am very pleased to invite you to join me at the K.I.D.S./Fashion Delivers Annual Gala to be held at the Grand Hyatt, New York City, on November 4. Emceed by Simon Noonan, the gala will honor John Daly, President of Trade Finance, CIT Group, Inc., Andrew Hall, President & CEO, Stage Stores, Inc., Gary Simmons, President & CEO, Gerber Childrenswear, LLC, and Sesame Workshop. Proceeds from this gala evening will enhance the "working for kids" efforts by K.I.D.S. and Fashion Delivers to provide product to the many needy children and their families across the nation. Please contact Walter Lilly, K.I.D.S., at 212.279.5493 ext.204 for details or to purchase tickets. The children deserve our help. (Kevin Burke)

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

    In the Press

    Still Fragile, Haiti Makes Sales Pitch
    from The New York Times
    They came in pinstripes and clutched BlackBerrys that surprised them by going off the same way they did back home. Some said they were taken aback, on the way from the airport to their luxury hotel, by the commotion on the streets and by the obvious poverty of the place. "Donít worry," one of them said he told his wife. "It's no picnic here, but itís not as bad as I thought." More

    Source: Obama Leans Toward Limited Troop Boost
    from Army Times
    President Barack Obama is prepared to accept some Taliban involvement in Afghanistan's political future and appears inclined to send only as many more U.S. troops as needed to keep al-Qaida at bay, a senior administration official said. 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

    Generals Want Faster, Focused Procurement
    from Congress Daily via Government Executive
    One of the Army's top thinkers wants the service to dramatically change the way it buys equipment, focusing on delivering gear to deploying units rather than locking itself into long-term commitments to field technologies for the entire force. More

    L.A.'s Garment Industry Goes From Riches to Rags
    from Los Angeles Times
    The reality television show "Project Runway" this season is putting the spotlight on Los Angeles, where designers toil in a loft downtown, competing to win $100,000 to start their own clothing line. The local industry could use the boost. More

    AAFA Events & Educational Programs

    October 14, 2009
    Environmental Committee Meeting
    Washington, DC

    October 15, 2009
    Social Responsibility Committee Meeting
    Washington, DC

    October 19-21, 2009
    Supply Chain Leadership Committee Meeting
    Lectra offices,
    New York City

    October 27, 2009
    VICS/AAFA RFID Meeting
    Fayetteville, AR

    October 29, 2009
    Moving Beyond the CPSIA
    FIT, New York City

    November 4, 2009
    Intimate Apparel Council Program
    Union League Club, New York City

    November 4-6, 2009
    Product Innovation Council Meeting & QVC Tour
    Philadelphia Marriott West, West Conshohocken, PA

    November 12, 2009
    Financial Management Committee Meeting
    Phillips Nizer, New York City

    November 12 and 18, 2009
    Intíl. Product Safety Seminars
    Chennai, India
    New Delhi, India

    Complete schedule of events

    AAFA Member Partners & Programs

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

    Attain Academy

    Discounts on webinars and
    on-line discussions for
    reducing & controlling
    chargeback and deductions.

    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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    Ben Maitland, Director of Advertising Sales

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