Fashion Intel & Analysis

Yesterday the State Department released the 2020 Trafficking in Persons Report analyzing U.S. and foreign government compliance with the standards set in the Trafficking Victims Protection Act of 2000. The report uses a three-tiered ranking system to assess the government’s efforts to combat human trafficking, and not necessarily the size and scope of the problem. Tier 1 countries fully meet the minimum standards, Tier 2 countries do not meet the minimum standards but are making significant efforts to do so, and Tier 3 countries do not meet the standards and are not making significant effort to do so. Tier 3 countries can be sanctioned by the U.S. government, along with restrictions on U.S. non-humanitarian aid and non-trade-related assistance.

This year, 22 countries received upgrades, including Bangladesh. Bangladesh was upgraded to Tier 2 status, and the report cited significant efforts to combat trafficking.  The State Department also maintained Tier 2 for status for Uzbekistan. In the press conference, Secretary of State Mike Pompeo recognized Uzbekistan for their “significant efforts to address this is setting a new standard for others in the region” and went on to say “the United States will not stand by as any government with a policy or pattern of human trafficking subjects its own citizens to this kind of oppression.”  As you know, USFIA supports the work of the Cotton Campaign to eliminate forced labor during the cotton harvest in Uzbekistan.  

China continues to receive Tier 3 status for a lack of significant efforts to address trafficking. The report focuses on concerns in the XUAR region. “There was a government policy or pattern of widespread forced labor, including through the continued mass arbitrary detention of more than one million Uyghurs, ethnic Kazakhs, ethnic Kyrgyz, and other Muslims in the Xinjiang Uyghur Autonomous Region (Xinjiang). Authorities also expanded the campaign into other provinces, began implementing it among other religious minorities, and sought the coerced repatriation and internment of religious and ethnic minorities living abroad.”

 In a press release, the Department of Labor proposes a rule under the Employee Retirement Income Security Act of 1974 (ERISA) that would bar pension fund managers from investing in ESG products because of non-financial objectives, such as environment, social and public policy goals. The Department of Labor says  "the proposal is designed, in part, to make clear that ERISA plan fiduciaries may not invest in ESG vehicles when they understand an underlying investment strategy of the vehicle is to subordinate return or increase risk for the purpose of non-financial objectives." The full text and a formal request for comments from the Labor Department is expected in the coming days. 
Today the Transportation Security Administration (TSA) shared new information from the Federal Emergency Management Agency (FEMA)  in the form of an Exercise Starter Kit.  The purpose is to facilitate workshops as organizations begin to restore their functionality and plan ahead in the COVID-19 world. There is a fact sheet to explain the materials provided, a facilitator guide to plan and execute the workshop, and PowerPoint slides that can be personalized for your organization's needs. 
In a notice posted on the Office of the U.S. Trade Representative (USTR) website, the Administration announces that USTR is considering changes to the list of EU products that are subject to Section 301 tariffs in the Airbus Case. USTR asks for comments on whether any of the current tariffs on EU products should be removed or if the duties should be increased, as well as whether new products should be hit with tariffs and at what duty rate, according to the notice. The portal for comments will open on June 26, 2020 and comments will be accepted through July 26, 2020. 

As you know, there is already a 10 percent tariff on aircraft and 25 percent tariff on many consumer goods, including apparel products from the UK. The new USTR announcement includes a list of the products that are subject to current tariffs, a list of products published in April and July 2019 that are under consideration but are not currently subject to tariffs, and a new list of products that are being considered for additional tariffs. 

 
The following are textile and apparel products being considered for additional duties if they are the product of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, or the United Kingdom.
  •  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.
  • 5205.31.00 Multiple or cabled cotton yarn, 85% or more cotton by weight, of uncombed fibers, n/o 14 nm per single yarn, not put up for retail sale 
  • 5206.32.00 Multiple or cabled cotton yarn, < 85% cotton by weight, of uncombed fibers, over 14 but n/o 43 nm/single yarn, not put up for retail sale 
  • 5208.13.00 Unbleached 3- or 4-thread twill fabrics of cotton, incl. cross twill, containing 85% or more of cotton by weight, weighing not over 200 g/m2 
  • 5402.11.30 Single high tenacity yarn of aramids, not put up for retail sale 
  • 5402.11.60 Multiple (folded) or cabled high tenacity yarn (except sewing thread) of aramids, not put up for retail sale
  • 5402.20.30 Single high tenacity yarn of polyesters, not put up for retail sale 
  • 5503.20.00 Synthetic staple fibers, not carded, combed or otherwise processed for spinning, of polyesters 
  • 5605.00.90 Metalized textile yarn nesoi, of man-made monofilament or strip or the like, other than ungimped or w/twist of < 5 turns per meter 
  • 5609.00.10 Articles of yarn, strip, twine, cordage, rope or cables nesoi, of cotton 
  • 5609.00.20 Articles of yarn, strip, twine, cordage, rope or cables nesoi, of vegetable fibers except cotton 
  • 5609.00.30 Articles of yarn, strip, twine, cordage, rope or cables nesoi, of man-made fibers 
  • 5609.00.40 Articles of yarn, strip or the like of man-made monofilaments, twine, cordage, rope or cables, nesoi 
  • 5701.10.16 Carpets & other textile floor coverings, hand-knotted or hand-inserted, w/ov 50% by weight of the pile of fine animal hair, nesoi 
  • 5701.10.40 Carpets and other textile floor coverings, of wool or fine animal hair, hand-hooked (tufts were inserted and knotted by hand or hand tool) 
  • 5701.10.90 Carpets and other textile floor coverings, of wool or fine animal hair, not hand-hooked, not hand knotted during weaving 
  • 5702.10.90 "Kelem", "Schumacks", "Karamanie" and similar hand-woven rugs, other than certified hand-loomed and folklore products 
  • 5702.41.20 Carpets and other textile floor coverings of pile construction, woven, not tufted or flocked, made up, of wool or fine animal hair, nesoi 
  • 5702.42.10 Wilton, velvet and like floor coverings of pile construction, woven, not tufted or flocked, made up, of man-made textile materials 
  • 5702.92.10 Hand-loomed carpet & other textile floor coverings, not of pile construction, woven, made up, of man-made textile materials,nesoi 
  • 5703.10.20 Hand-hooked carpets and other textile floor coverings, tufted, whether or not made up, of wool or fine animal hair
  • 5805.00.30 Hand-woven tapestries nesoi and needle-worked tapestries, of cotton 
  • 5805.00.40 Hand-woven tapestries nesoi and needle-worked tapestries, other than of cotton, wool or fine animal hair 
  • 5806.10.24 Narrow woven pile fastener fabric tapes (other than goods of heading 5807) of manmade fibers 
  • 5907.00.05 Laminated fabrics specified in note 9 to sect. XI of HTS, of m-m fiber, for theatrical, ballet, & operatic scenery & properties, incl sets 
  • 5911.10.10 Printers' rubberized blankets of textile fabrics 
  • 6112.20.20 Ski-suits, knitted or crocheted, of textile materials other than man-made fibers
  • 6110.11.00 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of wool
  • 6110.12.10 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of Kashmir goats, wholly of
  • cashmere
  • 6110.20.20 Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesoi
  • 6110.30.30 Sweaters, pullovers and similar articles, knitted or crocheted, of manmade fibers, nesoi
  • 6202.99.15 Rec perf outwear, women's/girls' anoraks, wind-breakers & similar articles, not k/c, tex mats (not wool, cotton or mmf), cont < 70% by wt of silk
  • 6202.99.80 Women's/girls' anoraks, wind-breakers & similar articles, not k/c, of tex mats (not wool, cotton or mmf), cont < 70% by wt of silk,
  • 6203.11.60 Men's or boys' suits of wool, not knitted or crocheted, nesoi, of wool yarn with average fiber diameter of 18.5 micron or less
  • 6203.11.90 Men's or boys' suits of wool or fine animal hair, not knitted or crocheted, nesoi
  • 6203.19.30 Men's or boys' suits, of artificial fibers, nesoi, not knitted or crocheted
  • 6203.19.90 Men's or boys' suits, of textile mats(except wool, cotton or mmf), containing under 70% by weight of silk or silk waste, not knit or croch
  • 6208.21.00 Women's or girls' nightdresses and pajamas, not knitted or crocheted, of cotton
  • 6211.12.40 Women's or girls' swimwear, of textile materials(except mmf), containing 70% or more by weight of silk or silk waste, not
  • knit or crocheted
  • 6211.12.80 Women's or girls' swimwear, of textile materials(except mmf), containing under 70% by weight of silk or silk waste, not knit or crocheted
  • 6301.30.00 Blankets (other than electric blankets) and traveling rugs, of cotton
  • 6301.90.00 Blankets and traveling rugs, nesoi
  • 6302.21.50 Bed linen, not knit or crocheted, printed, of cotton, cont any embroidery, lace, braid, edging, trimming, piping or applique work, n/napped
  • 6302.21.90 Bed linen, not knit or croc, printed, of cotton, not cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped
 
 Earlier this week, the Federal Trade Commission (FTC) published requests for public comments on two issues relevant to USFIA members. The first request is related to a proposed rule from FTC on strengthening enforcement around Made in USA labeling rules. The second request for comments is related to the FTC's proposed rule change to repeal the regulations on Care Labeling on Textile Wearing Apparel and Certain Piece Goods.