Fashion Intel & Analysis

Customs and Border Protection just released the CSMS message with updated information for all entries that are covered by the increase in Section 301 tariffs.  While the increased tariffs will be based on the date of export from China, and CBP confirms that, at least in the short-term CBP will be applying the higher tariff of 25%.  In the notice they explain how companies can get the excess payment refunded using Post Summary Correction, or that companies can delay filing entries until there is an update to the procedures.  The CSMS is available here. 

Earlier today President Trump confirmed that the Chinese team lead by Vice Premier Liu He will be meeting with Administration officials at 5pm today.  Talking to reporters, the President sent mixed messages about whether there could still be a trade deal this week.  Suggesting that there may be a deal in the making, Trump said that he had received a "beautiful letter" from President Xi.  But he also suggested that the trade dispute may get worse and that the Administration has "started the paperwork" to impose penalty tariffs on all imports from China.  

Please join us on Monday for a members-only call with an update on the situation after these next few days of trade talks. Register here. 

Just as it seemed U.S.-China trade tensions were beginning to ease; Trump escalated the trade war with a series of threatening tweets earlier this week. Negotiations are set to continue in DC this week, and it’s unclear whether progress could delay the tariff increase, or if we will be hit with more disruption. Amid the uncertainty, Dr. Sheng Lu, associate professor of the Department of Fashion and Apparel Studies at the University of Delaware, evaluates the potential impact of the U.S.-China tariff war on the U.S. textile and apparel industry, including manufacturing and trade related activities, in a recent Just-Style article. Dr. Lu’s analysis focuses on three scenarios featuring different tariff rates on the textile and apparel industry and evaluates how those rates could increase the market price in the U.S., hurt U.S. textile exports, and increase apparel imports into the U.S. market from Asian suppliers other than China. Read the full analysis on Just-Style’s website here

The Office of the U.S. Trade Representative (USTR) has published the Federal Register notice to increase the Section 301 tariffs (Tranche 3) on imports from China from 10% to 25% on Friday, May 10. The notice confirms there will be an exclusion process set up. Here is the link. 

U.S. Customs and Border Protection has released May’s schedule of webinars hosted by the National Import Specialist Division on various commodities topics, including a walkthrough of Chapter 67 covering articles made of feathers or down. The schedule and registration links can be found below. 

A Walk through Chapter 59 - Wednesday, May 22, 2019, 1:30-3:00pm EDT
Registration
Cancellation
 
Seafood Products of Chapter 3 and 16 - Thursday, May 23, 2019, 1:30-2:30pm EDT
Registration
Cancellation
 
Water Sport Equipment and Water Craft - Wednesday, May 29, 2019, 1:30-2:30pm EDT
Registration
Cancellation
 
Chapter 67; Odds and Ends - Thursday, May 30, 2019, 1:30-2:30pm EDT
Registration
Cancellation