E.U. Drops Tax On U.S. Jeans

WASHINGTON — March 31, 2014 —  Effective May 1, the European Union will drop a 26% retaliatory tax on women’s jeans made in the U.S. to 0.35%. This move will lower the EU duty rate on such jeans to 12.35% a year after it saw a significant increase in an ongoing trade dispute.

The duty rate hike on jeans was part of a continuation of sanctions authorized by the World Trade Organization in retaliation for the United States’ failure to fully comply with a WTO ruling against the Continued Dumping and Subsidy Offset Act of 2000. Commonly referred to as the Byrd Amendment, this law allowed the U.S. to distribute antidumping and countervailing duties collected on foreign-made goods to affected domestic industries. The law was found to violate WTO rules and subsequently repealed, but distributions were allowed to continue for cases initiated prior to the repeal.

In response, the WTO allows each affected country to raise its tariffs on goods imported from the U.S. in direct relation to the amount of AD and/or CV duties on goods from that country that were distributed during the previous year. When the amount distributed in 2012 with respect to EU goods spiked, so did the value of U.S. exports the EU could target, prompting Brussels to add women’s jeans to the retaliation list for 2013. However, distributions in 2013 decreased by nearly half of the 2012 amount, resulting in the drastic reduction of the retaliatory tariffs on jeans and other goods.

Sandler, Travis & Rosenberg, P.A., has been actively working since the EU imposed the tariff hike to obtain relief for affected U.S. manufacturers. For example, the United Kingdom’s customs and tax department accepted a legal argument crafted by ST&R attorney Elise Shibles that certain jeans, despite being made of denim as that term is used in the apparel industry, do not fall within the legal definition of denim under the Harmonized Tariff Schedule because the dye used to make them is not colorfast. The alternative classification of the subject jeans is only subject to the basic 12% tariff. Shibles, along with the Warsaw-based EU office of Sandler & Travis Trade Advisory Services, Inc. has since been helping U.S. jeans makers that had been paying the higher 38% duty to secure refunds.

Posted March 31, 2014

Source: Sandler, Travis & Rosenberg, P.A.
 

CIT And The California Fashion Association Release L.A. Area Fashion Industry Profile

NEW YORK and LOS ANGELES — March 26, 2014 — While many people are fixated on fashion trends that dominate Hollywood’s red carpets during the annual award season, Los Angeles’ fashion industry has largely been unappreciated as a driving force for the city’s economy, according to the report “Los Angeles Area Fashion Industry Profile and 2014 Outlook. The report was commissioned by CIT Group Inc., a leading provider of financing and advisory services to small businesses and middle market companies, and the California Fashion Association (CFA). In fact, according to the report, local companies capture more than $18 billion in revenues through the fashion industry, and about one-third of that flows through to local workers.

“Los Angeles represents the intersection of innovative design, fashion leadership, commercial transport and production that meet global needs,” said Jon Lucas, President of CIT Commercial Services. “As Los Angeles’ profile in fashion keeps rising, local entrepreneurs and businesses will continue to need financing solutions to get their ideas and projects on to the global market.”  

According to the report, the success of Los Angeles’ apparel industry has long been driven by the pull of design talent, favorable cost economics, the appeal of L.A. fashion and speed to market. However, while the city’s access to seaports and airports provides a strong advantage for imports coming into the United States from East Asia and Central America, the lack of Los Angeles-based fashion shows (typically associated with fashion “meccas” like New York and Paris) limits public awareness of the strength of the industry. What’s more, fashion trends emanating from Los Angeles tend to focus on active wear and not the high-fashion design typically associated with runway shows.


Additionally, the report indicates that Los Angeles needs to do more to develop the employment base and public awareness needed to solidify the city’s position as a true fashion capital. Specifically, the report suggests that additional positive economic impact could be realized by aggressively marketing the “L.A.” and “California” brand in fashion apparel, especially overseas. In addition, training grants and tax incentives for small businesses could help create more job opportunities. Moreover, academic institutions need to go beyond simply offering apparel design classes, and offer apparel-related business management and merchandising studies, too.   

Following are some of the key highlights of the report:

Evidence of Growth

  • Locally, the city’s “Fashion District” is supported and promoted and has its own Business Improvement District (BID).
  • Culturally, there is tremendous interest in “L.A. Style,” which raises Los Angeles’ profile as the fashion capital of trends in the United States, and attracts young designer talent who bring new ideas and innovation.
  • The retail industry is consolidating, and national chains are engaging in “matrix purchasing,” which favors existing, large suppliers. In response, some manufacturers are opening their own retail shops.

Hurdles to Overcome

  • The LAX airport terminal and the Los Angeles Fashion District BID need to be refreshed for out-of-town buyers visiting local apparel companies.
  • Most media coverage focuses on the trendy runway shows that do not showcase well the more mainstream, saleable designs of California’s producer brands.
  • Los Angeles students do not perceive work in the fashion industry as a viable career option.
  • Exporting can be difficult. Easing regulatory barriers is needed to enhance entrepreneurial growth.

Trends to Watch

  • Rising wages across the globe in conjunction with increasing energy prices will drive up transportation and manufacturing costs.
  • Immigration reform regarding temporary immigrant work visas and an I-9 form will be needed to build back apparel and textile manufacturing employment inside the SoCal region.
  • Unnecessary zoning or waste disposal red tape, onerous tax regimes and other regulatory structures are worth a second look.
  • Middle income consumers in Asia, which number in the tens of millions, will offer an opportunity for new markets to sell “Designed in California” apparel.
  • Individuals can download a free copy of the “Los Angeles Area Fashion Industry Profile and 2014 Outlook” and related infographic at cit.com/lafashionprofile.

Posted March 31, 2014

Source: CIT Commercial Services
 

Global Recycled Standard V3 Review

O’DONNELL, Texas — March 27, 2014 — In 2012, an International Working Group (IWG) of certification bodies was created to own the development of the revised standard. The GRS IWG members are: Control Union, ICEA, IMO, Intertek, and SCS Global Services.  The new version of the standard will introduce stronger Social and Environmental requirements from v2.1 and will also include an entire new section, limiting the use of toxic chemicals from the production of GRS products. The verification of recycled input materials relies on the same guidelines recently established by TE’s Recycled Claim Standard.  

The second Stakeholder Review for the Global Recycled Standard v3 is now open for comment. During this time, you are invited to read the standard and related documents and provide your comments or suggestions for the standard, including the feedback from the first review. Comments must be received by April 28.  

To participate:
1. Visit TextileExchange.org/GRS 

Download:  

  • Global Recycled Standard v3 Draft
  • GRS Prohibited Substance List – DRAFT
  • GRS v3 Logo Use and Labeling Guide – DRAFT
  • TE Accepted Equivalent Standards – DRAFT
  • GRS v3 Consolidated Feedback and Response
  • GRS Feedback Form 2.0

2. Read the documents carefully.
3. Record suggested edits or additions in the GRS Feedback Form.
4. Submit the GRS Feedback Form to Integrity@TextileExchange.org before April 28.

Summary of the Global Recycled Standard Revision Process

  • First stakeholder review period: Dec. 19 to Feb. 20
  • Second stakeholder review period: March 27 to April 28    
  • Release of final GRS v3: tentatively May 15


Feedback collected during the first stakeholder review period was consolidated, summarized and responded to by the GRS IWG and Textile Exchange.  Second stakeholder review period: March 27 to April 28  At the end of the second stakeholder review period, all comments will be consolidated, summarized and addressed by the GRS IWG and Textile Exchange. At the end of the second stakeholder review, a summary of both stakeholder reviews will be available on the GRS along with the finalized standard documents.

Posted March 30, 2014

Source: Textile Exchange
 

CBI And The International Apparel Federation Sign Cooperation Agreement

ZEIST, The Netherlands — March 28, 2014 — CBI (Centre for the Promotion of Imports from developing countries) and the International Apparel Federation (IAF) signed a Memorandum of Understanding (MoU). The goal of this MoU is to intensify collaboration between the two organisations in improving the apparel value chain in developing countries.

The MoU commits CBI and the IAF to share contacts, to involve each other in trade missions and to work together in projects which involve sourcing, value chain development, capacity building and CSR.

A Mutual Goal
The MoU was prepared by CBI expert Dhyana van der Pols and signed by CBI Programme Managers Tamar Hoek and Melanie van der Baaren-Haga and IAF Deputy Secretary General Matthijs Crietee. “We share a mutual goal, which is to improve the apparel value chain. In this agreement we have listed practical ways in which we can support each other in achieving this goal”, said Crietee.

Market Research
Cooperation in the field of market intelligence is also part of the MoU. CBI’s market intelligence department will offer its research studies to IAF members and the two parties will look for ways to cooperate in new research on trends in the apparel sector, industry developments, sourcing and supply chain management.

Tamar Hoek: “The IAF offers us a new platform to share our knowledge with business support organisations. By cooperating in the production and dissemination of market intelligence studies we will truly integrate with the worldwide apparel industry.”

More Than 60 Countries
The International Apparel Federation represents the interests of the global fashion chain. The federation has members in more than 60 countries in all continents. These include brands and manufacturers, their associations and their specialised suppliers.

CBI is an agency of the Ministry of Foreign Affairs of the Netherlands. CBI’s mission is to contribute to sustainable economic development in developing countries through the expansion of exports from these countries.

The MoU is valid for two years and can be extended with another three years.

Posted March 30, 2014

Source: IAF
 

HDK Industries Launches New Website

ROGERSVILLE, Tenn. — March 28, 2014 — HDK Industries is pleased to announce the launch of its newly redesigned, user-friendly website located at www.hdkind.com. The site has been updated to contain much more information about HDK, its technology and most importantly, its products. Visitors to the website can quickly and easily navigate through the various markets that HDK serves, gathering information about what the company can offer. In addition, the technology section offers easy to understand descriptions of HDK’s process capabilities, allowing potential partners to envision a wide variety of product possibilities that could fit their requirements.

“We are a company that excels in providing custom-designed solutions. The new website offers the concepts necessary to form the initial ideas that drive innovation,” said Scott Murdock, President of HDK.

HDK serves many different nonwovens markets, including Consumer Products, Filtration, Home Furnishings, Bedding, Geotextile, Medical, Face Mask and many others. The website has information on potential product features for each market. New features include a Job Openings section, a News section and a link to HDK’s parent company, Cha Technologies Group. “We hope that the new design gives a better picture of our company. We invite all of our partners in the industry to visit us there — and hope that we forge some new relationships as well”, added Mr. Murdock.

Posted March 30, 2014

Source: HDK Industries

Xceed Sport Implements Cloud PLM Software From WFX

ÁLVARO OBREGON, Mexico ‚ March 27, 2014 — Xceed Sports is a leading Mexico based sports and athletics wear company offering custom designed, high performance sportswear for triathlon athletes and professional cyclists. The brand is well known in Mexico for its high level quality products which are essential in competitive sports. 

Xceed Sports has successfully implemented WFX Cloud PLM to move all their product development and design to a web-based centralized system. Being a primarily Spanish speaking company, Xceed Sports uses WFX PLM in Spanish which enables the non-English speaking users to work on WFX easily.

“We were looking for a solution to simplify the techpack creation process and efficiently manage our Purchase orders. WFX’s Cloud PLM has enabled us to move all our product development process online efficiently and effectively and allows for one click sharing of Techpack and Purchase Orders with our factory. This has resulted in quick and effective communication within different departments and has improved productivity” says Miguel Arvizu, Owner Xceedsport.

Posted March 28, 2014

Source: Xceedsport
 

Stephen Saft Acquires The Spinrad Group

PHILADELPHIA — March 25, 2014 — Stephen Saft, former chief executive of men’s outerwear manufacturer Jacob Siegel, has acquired the executive search firm The Spinrad Group from the estate of Randy Weinstock.

The Spinrad Group, formerly known as Kenn Spinrad Company, specializes in recruiting for the apparel, textile, and sewn products industries, working with every aspect from top executives to designers and production managers. The Philadelphia company was founded in 1967.

“After a lifetime in the apparel business, the depth of my personal experience — locally, nationally, and internationally — brings both hands-on and global knowledge to every client and every candidate,” commented Saft. “I have worked side-by-side with sewing machine operators and mechanics, as well as titans of industry, enjoying wonderful relationships with every one of them. I plan to bring all of that experience to each new relationship, researching and searching for the perfect match for employer and

Saft says that the Spinrad offices will stay in Philadelphia, but his recruiting efforts will be worldwide.

Posted March 28, 2014

Source: The Spinrad Group

Follow AATCC’s International Conference On Twitter And Facebook

RESEARCH TRIANGLE PARK, N.C. —March 26, 2014 — Each year AATCC’s International Conference features presentations by major textile industry leaders. This conference is also packed with networking events and opportunities. With so much taking place, it’s easy to miss something important.  But this year you can stay on top of the action, and not miss any of this event’s important moments, by following IC 2014 on Twitter and Facebook at Hashtag: #a2ic14
 
With a pre-conference tutorial and presentations featuring industry leaders, plus opportunities to build or expand your professional network, the AATCC International Conference for 2014, is a “must attend.”

A major industry event, IC 2014, as it’s known, will be held in Asheville, NC, USA, from April 1-3 and feature educational tracks, a poster session, the Herman and Myrtle Goldstein Student Paper Competition, networking receptions, and the annual Awards Luncheon, where AATCC’s most prestigious honors will be presented.

Posted March 28, 2014

Source: AATCC
 

The Rupp Report: Asia Is Getting Cleaner

Water is becoming more and more a precious raw material — and drinkable water, even more precious. Water sustains people, animals and everything in the natural world. Decades ago, the Western world finally started to recognize that clean water is one of the cornerstones of every prosperous society. Unfortunately, the Eastern world hasn’t been prepared to do the same — so far.
 
Smog In Beijing
But it is not only water pollution, also the pollution of the air has become an important problem, mainly in Southeast Asia. Everybody knows the problems — for example, when big cities have to stop all traffic and forbid people to go outdoors due to dangerous smog in the air, such as happened during the 2008 Summer Olympic Games in Beijing.
 
Today, one could be cynical in saying that thanks to the air pollution, the people and, moreover, the governments are more conscious of all kinds of pollution. And the textile industry in general and the finishing industry in particular produce an important share of polluted water, especially in the powerhouse of textile production, China. In the last few weeks, smog has virtually wrapped Beijing and some parts of Northern China, which forced the inhabitants to stay home. Even Prime Minister Li Keqiang is concerned about the ongoing pollution and the environmental problems. In his opening speech at the National People’s Congress held earlier this month, he also mentioned the fight against pollution.
 
To Walk The Talk
Indeed, all kinds of pollution are among the biggest problems around the world. However, China is not only debating about the environmental problems, as the Rupp Report already mentioned before. The current Five Year Plan (2011 – 2015) calls for China to invest more than 5 trillion yuan (US$817 billion) in environmental protection. Wu Xiaoqing, vice minister of environmental protection, said during the National People’s Congress that “the investment comes from various sources such as the government, financial institutions and enterprises and also includes social capital. China has been increasing its spending on environmental protection steadily, with an investment of 602.6 billion yuan in 2011, 825.3 billion yuan in 2012 and an estimated sum of 1 trillion yuan in 2013. The government’s investment in this area will increase substantially in 2014 with the introduction of a water pollution prevention and control action plan this year.”
 
Severe Water Problems
China’s air pollution is on the front pages everywhere, but its water pollution is just as serious. “China’s ministry of environmental protection estimates that one-fifth of the country’s rivers are toxic, while two-fifths are classified as seriously polluted,” reports Luna Lin in a recent chinadialogue blog. Frequent textile industry travelers to China can fully confirm that report. There are a lot of companies that don’t care about the environment. “In 2012 more than half of China’s cities had a water quality that was considered to be ‘poor’ or ‘very poor.’ [Some weeks ago,] the ministry of environmental protection announced a trillion-yuan (US$163 billion) plan to start dealing with this urgent issue.” Lin stated.
 
Zhai Qing, deputy minister of environmental protection, said at a press conference that “the action plan, which is currently being drafted, is focusing on curbing water pollution in the worst affected areas and preventing future pollution of the better conserved waters.” The plan proposes reducing industrial wastewater discharge, and improving municipal sewage management and rural polluted water treatment.
 
Extraordinary Open Words
Zhai was even more open when he said that “the situation of China’s water environment is still very grim.” He cited typical water quality indicators including the country’s annual chemical oxygen demand (COD) and ammonia nitrogen emissions volumes. “The current annual volumes of the two emissions stand at 24 million metric tons and 2.45 million metric tons,” he said. China Business News reports that China must reduce its yearly COD and ammonia nitrogen emissions volumes by 30 to 50 percent in order to achieve any significant water quality improvement.
 
In this context, another Chinese institution made a comment: According to Lin, Ma Jun, director of the Institute of Public & Environmental Affairs — a green nongovernmental organization based in Beijing, said that “China’s wastewater discharge has far exceeded the nation’s environmental bearing capacity and hence the incoming action plan is very necessary.” And indeed it is.
 
For years, the West has been shaking fingers at the Eastern Hemisphere for being an environment contaminator. However, if one checks the figures from organizations such as the World Health Organization, it can be seen that the biggest polluters — apart from China — are still located in the West. However, a clean environment is first of all, a question of educating the population in general, and young people in particular. It shouldn’t be forgotten that it took the West a long time, too, to recognize that environmental consciousness is not only a “green matter,” but also a prerequisite to survival.
 
In a world of consumers who are more aware about environmental issues, all these actions are not only favorable to the environment and its people. On top of that — and this can underline the statement that economy and ecology can go together — these actions build a better climate for negotiations between Chinese producers and Western buyers regarding laments about “dirty apparel.” This dialogue is what is very much needed, considering the recent problems in Bangladesh and the turmoil in the social media around the world.
 
March 25, 2014
 

PCI Fibres Reports Chinese Polyester Filament Capacity Surpasses Global Demand

United Kingdom-based PCI Fibres recently published the latest issue of the PCI Fibres “Green Book.” According to the issue, China’s polyester filament capacity of 31.3 million tons in 2013 overtook global mill consumption of 29.7 million tons of polyester filament. PCI Fibres reported a 6-percent increase in global polyester filament consumption in 2013, with similar increases predicted for 2014.
 
According to PCI Fibres, China’s polyester filament capacity increased 17 percent in 2013, and an additional 8-percent increase is predicted for this year.
 
China’s nylon filament capacity also is growing ahead of global mill consumption. Within the next two years, PCI Fibres expects China’s capacity to reach 70 percent of world nylon filament demand unless there is a significant decrease in the number of manufacturing plants.
 
Total textile mill consumption in 2013 for all natural and man-made fibers, excluding meltblown products, is estimated to be around 83.4 million tons, which represents an increase of 4 percent over the previous year. In 2014, total textile mill consumption is forecast to reach 86.8 million tons, another 4-percent increase.
 
The “Green Book” reports 35 percent of the total textile mill consumption is comprised of absorbent fibers such as wool, cotton and cellulosic fibers — including viscose and lyocell.

March 25, 2014

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