Fashion Intel & Analysis
The Office of the U.S. Trade Representative has announced their plan to retaliate against imports from France when France puts into effect the Digital Services Tax. The retaliation is scheduled to begin on January 6, 2021 and will place additional 25% tariffs on a range of products made in France. The retaliation list includes cosmetics and handbags. The handbags on the retaliation list are:
4202.21.30, Handbags, with or without shoulder strap or without handle, with outer surface of reptile leather
4202.21.60, Handbags, with or without shoulder strap or without handle, with outer surface of leather, composition or patent leather, nesoi, n/o $20 ea.
4202.21.90, Handbags, with or without shoulder strap or without handle, with outer surface of leather, composition or patent leather, nesoi, over $20 ea.
4202.22.15, Handbags, with or without shoulder straps or without handle, with outer surface of sheeting of plastics
4202.22.40, Handbags with or without shoulder strap or without handle, with outer surface of textile materials, wholly or in part of braid, nesoi
4202.22.45, Handbags with or without shoulder strap or without handle, with outer surface of cotton, not of pile or tufted construction or braid
4202.22.60, Handbags with or w/o shoulder strap or w/o handle, outer surface of veg. fibers, exc. cotton, not of pile or tufted construction or braid
4202.22.70, Handbags with or w/o shoulder strap or w/o handle, with outer surface containing 85% or more of silk, not braided
4202.22.81, Handbags with or without shoulder strap or without handle, with outer surface of MMF materials
4202.22.89, Handbags with or without shoulder strap or without handle, with outer surface of textile materials nesoi
Tensions continue to escalate between the U.S. and China. On the trade front, on Friday President Trump told reporters that he does not expect there will be talks for the Phase Two trade deal. Phase Two was expected to be the path forward to reduce or eliminate the 301 tariffs on imports from China. In response to a question about the Phase Two talks, the President said “I don’t think about it now. They could have stopped the plague, they could have stopped it, they didn’t stop it.”
In response to the Administration’s criticism of Chinese policies in the XUAR, today in a press briefing at China’s Foreign Ministry, the spokesperson said that China will respond to last week’s sanctions against Chinese officials by imposing similar restrictions against U.S. officials. Press reports say that Senators Marco Rubio (R-FL) and Ted Cruz (R-TX), and Congressman Chris Smith (R-NJ) are on the list. We will share more details when they are available.
In a message (CSMS #43197567) U.S. Customs and Border Protection (CBP) released guidance on Post-Importation Claims and MPF Processing under the U.S. - Mexico - Canada Agreement (USMCA). As you know, USMCA will replace the North American Free Trade Agreement (NAFTA) on Wednesday, July 1, 2020. The CSMS highlights that after July 1, filers will no longer be able to flag entry summaries for NAFTA Post Importation Claims under 19 U.S.C. §1520(d) (520(d) claims) for Reconciliation. Entry summaries flagged for NAFTA 520(d) claims prior to July 1, 2020, may continue to be reconciled. A forthcoming Federal Register notice from CBP will amend the ACE Reconciliation Prototype to make USMCA a Free Trade Agreement eligible for flagging for Reconciliation. You can read all USMCA requirements and resources here.
FOR IMMEDIATE RELEASE
JOINT STATEMENT FROM AAFA, FDRA, NRF, RILA, AND USFIA ON SUPPLY CHAINS AND XINJIANG
WASHINGTON, D.C. – July 23, 2020 – Our member companies have long maintained policies and compliance programs that seek to prevent, identify, and mitigate instances of forced labor. As an industry representing thousands of brands and retailers, ensuring that forced labor does not exist in our supply chains is a key priority.
Following today’s launch of the NGO Call to Action, the recent publication of several new reports, the signing into law of the Uyghur Human Rights Policy Act, and the release of a business advisory by the U.S. State, Treasury, Homeland Security, and Commerce Departments regarding supply chain risk in the Xinjiang Uyghur Autonomous Region (XUAR), we want to reiterate our continued focus on identifying and eradicating forced labor. A successful solution for all involved, above all the workers themselves, will require state-to-state engagement and collaborative partnerships across government, industry, labor advocacy groups, non-governmental organizations, and other stakeholders. We again urge our nation’s leaders to immediately establish a multi-stakeholder working group to develop and deploy a collective approach that accurately assesses the problem, identifies constructive solutions to increase transparency, and protects both the rights of workers and the integrity of global supply chains.
Following the publication of early reports, in alignment with our zero tolerance for forced labor, our associations and others joined forces as part of a multi-industry program to use our collective efforts to address the situation. Building on work the associations and member brands had already done separately, we have spent the last eight months working together to address due diligence challenges and opportunities.
Since coming together, we have implemented a broad-based effort, convening with a wide variety of stakeholders, including NGOs, labor groups, and policy makers in all branches of government. In these meetings, we have highlighted public reporting on the region, shared our industry’s decades of work on due diligence and remedy, reiterated our zero tolerance approach to forced labor, and called for unified action by relevant stakeholders to find the best way forward.
We are and will continue to be committed to working with all key stakeholders on this critically important human rights issue.
USFIA Media Contact:
AAFA Media Contact:
FDRA Media Contact:
RILA Media Contact:
NRF Media Contact:
About the United States Fashion Industry Association
The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade. USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States.
Headquartered in Washington, D.C., USFIA is the voice of the fashion industry in front of the U.S.
government as well as international governments and stakeholders. With constant, two-way
communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow. Through our publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including U.S. and international service providers, suppliers, and industry groups.
In a Federal Register notice from the Office of the U.S. Trade Representative (USTR), the Interagency Labor Committee for Monitoring and Enforcement is inviting public comments on the procedures for submissions by the public of information with respect to potential failures of Canada or Mexico to implement their labor obligations under the United States-Mexico-Canada Agreement (USMCA). Comments can by submitted until August 15, 2020.