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 The law was found to violate WTO rules and subsequently repealed, but distributions were allowed to continue for cases initiated prior to the repeal.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.
 

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
 

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
 

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