OTEXA: Announcements - Office of Textile & Apparel
[03/15/2022] –The European Union (EU) will be putting forward several pieces of legislation over the course of 2022 to achieve its circular economy transition. One initiative, the Sustainable Products Initiative (SPI) will focus on “key product value chains” (identified as electronics, information and communication technologies, textiles, furniture, steel, cement, and chemicals) that the Commission sees as requiring “urgent, comprehensive and coordinated action” to jumpstart the transition to circularity. The SPI is expected to be published on March 30. For more information on the SPI and how U.S. businesses can engage with the EU on circular economy, see the U.S. Commercial Service-EU market intelligence article.
[03/15/2022] – Effective March 11, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) has banned the export, re-export, and transfer (in country) of luxury goods to all end users in Russia and Belarus and to certain Russian and Belarusian oligarchs and malign actors located worldwide. This action is in response to Russia’s brutal, continuing invasion of Ukraine (as substantially enabled by Belarus) in flagrant violation of international law. Among the restricted products are various apparel, home textile, floor covering, tents/camping/boating, footwear, and travel goods products. For more details and a full list of products, see the Federal Register notice.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Oil Country Tubular Goods From the Republic of Korea: Preliminary Negative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
• Oil Country Tubular Goods From the Russian Federation: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Earpiece Devices and Components Thereof; Institution of an Advisory Opinion Proceeding
• Certain Cloud-Connected Wood-Pellet Grills and Components Thereof; Commission Determination Not To Review a Final Initial Determination Finding a Violation of Section 337; Request for Written Submissions on Remedy, the Public Interest, and Bonding; and Extension of the Target Date for Completion of the Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Barium Chloride From India: Postponement of Preliminary Determination in the Countervailing Duty Investigation
• Granular Polytetrafluoroethylene Resin From India and the Russian Federation: Countervailing Duty Orders
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Barcode Scanners, Mobile Computers With Barcode Scanning Capabilities, Scan Engines, Components Thereof, and Products Containing the Same; Institution of Investigation
• Certain Wrapping Material and Methods for Use in Agricultural Applications; Notice of Commission Determination To Review in Part a Final Initial Determination Finding No Violation of Section 337; Schedule for Filing Written Submissions; Extension of Target Date
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Iron Construction Castings From Brazil, Canada and the People's Republic of China: Final Results of Expedited Fifth Sunset Review of Antidumping Duty Orders
• Investigations; Determinations, Modifications, and Rulings, etc.:Certain Automated Storage and Retrieval Systems, Robots, and Components Thereof; Notice of a Commission Determination To Review in Part a Final Initial Determination and Order No. 33; and, on Review, To Find No Violation of Section 337 Termination of the Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Narrow Woven Ribbons With Woven Selvedge From the People's Republic of China and Taiwan: Continuation of Antidumping Duty Orders and Countervailing Duty Order
• Sodium Nitrite From India: Postponement of Preliminary Determination in the Countervailing Duty Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Light-Walled Rectangular Pipe and Tube From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2019-2020; Correction
• Notice of Scope Ruling Applications Filed in Antidumping and Countervailing Duty Proceedings
• Certain Cold-Rolled Steel Flat Products From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2019-2020
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CBP Enforces Countering America’s Adversaries Through Sanctions Act Against Li-Ning Sporting Goods - US Customs & Border Protection
Agency will detain merchandise from Li-Ning Sporting Goods made with North Korean labor
WASHINGTON — Effective March 14, 2022, U.S. Customs and Border Protection (CBP) is detaining merchandise produced or manufactured by Li-Ning Sporting Goods at all U.S. ports of entry. This enforcement action is the result of a CBP investigation indicating Li-Ning Sporting Goods uses North Korean labor in its supply chain.
The Countering America’s Adversaries Through Sanctions Act (CAATSA) prohibits the entry of goods, wares, and articles mined, produced, or manufactured wholly or in party by North Korean nationals or North Korean citizens anywhere in the world, unless clear and convincing evidence is provided that such goods were not made with forced labor.
Pursuant to CAATSA, CBP will detain Li-Ning merchandise at all U.S. ports of entry. Such merchandise will not be entitled to entry unless the importer provides clear and convincing evidence that their merchandise was not produced with convict labor, forced labor, or indentured labor under penal sanctions within 30 days of notice of detention. If the company fails to provide clear and convincing evidence within this timeframe the merchandise may be subject to seizure and forfeiture.
“CAATSA is yet another tool in CBP’s trade enforcement arsenal that allows us to uphold the fundamental value of human dignity and to ensure the goods that enter the United States are free from forced labor,” said CBP Office of Trade Executive Assistant Commissioner, AnnMarie Highsmith.
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$4.55 Million in Fake Jewelry Seized by CBP Officers in Louisville - US Customs & Border Protection
LOUISVILLE, Ky — U.S. Customs and Border Protection (CBP) officers that inspect packages at the Express Consignment Operation (ECO) hub in Louisville see a variety of illegal items arriving and departing the U.S. Recently, however, CBP officers seized three packages in a 24-hour timeframe concealing watches, bracelets, necklaces, earrings, and rings totaling over $4.55 million.
On March 8 officers inspected a shipment arriving from Hong Kong that was heading to a residence in Ontario, Canada. Inside officers found 29 Rolex watches, 2 Hublot watches, 2 Breitling watches, 1 Tag Heuer watch and 3 Omega watches. An Import Specialist determined that the watches were counterfeit. The 37 watches had a Manufacturer’s Suggested Retail Price (MSRP), if these were real, of $1.11 million.
The following night, March 9, officers seized two packages. The first shipment contained 1,034 items of counterfeit jewelry. An officer’s inspection revealed: 554 Tommy Hilfiger necklaces, 60 Rolex bracelet and ring combos, 60 Bvlgari bracelet and ring combos, 60 Louis Vuitton bracelet and ring combos, 60 Cartier bracelet and ring combos, 60 Versace bracelet and ring combos, 60 Hermes bracelet and ring combos and 120 Gucci bracelet and ring combos. CBP’s Import Specialist verified the items were counterfeit. This shipment was also arriving from Hong Kong and was heading for a company in Miami. Had these items been real the MSRP would have been over $1.19 million.
Later that night officers inspected a parcel that was arriving from the United Arab Emirates. Inside officers found just one Richard Mille watch with a MSRP of over 2.25 million, too bad it was a counterfeit. This fake was heading to a residence in California.
“CBP is responsible for enforcing nearly 500 U.S. trade laws and regulations on behalf of 49 other federal agencies. CBP officers play a critical role in the nation’s efforts to keep unsafe counterfeit and pirated goods from harming the American public,” said LaFonda D. Sutton-Burke, Director, Field Operations-Chicago Field Office. “This is yet another dramatic example of how CBP officers work every day to protect the American consumer, the US economy and US jobs.”
The rapid growth of e-commerce enables consumers to search for and easily purchase millions of products through online vendors, but this easy access gives counterfeit and pirated goods more ways to enter the U.S. economy. U.S. consumers spend more than $100 billion every year on intellectual property rights (IPR) infringing goods, falling victim to approximately 20% of the counterfeits that are illegally sold worldwide.
“Intellectual property theft threatens America’s economic vitality and funds criminal activities and organized crime,” said Thomas Mahn, Port Director-Louisville. “Our officers are dedicated to protecting private industry and consumers by removing these kinds of shipments from our commerce.”
CBP routinely conducts inspection operations on arriving and departing international flights and intercepts narcotics, weapons, currency, prohibited agriculture products, counterfeit goods, and other illicit items at our nation’s 328 international ports of entry.
On a typical day in 2021, CBP officers seized $9 million worth of products with Intellectual Property Rights violations. Learn more about what CBP did during "A Typical Day" in 2021.
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Animal Food Contraband from China Remains at Record Levels at LA/LB Seaport - US Customs & Border Protection
China is affected with Several Contagious and Deadly Animal Diseases
LOS ANGELES —The seizures of prohibited meat products from China continue at levels never seen before at the Los Angeles/Long Beach seaport. Just in the first quarter of fiscal year 2022, (October-December 2021) U.S. Customs and Border Protection (CBP) agriculture specialists intercepted 262,237 pounds (118,949 kilograms) of prohibited pork, chicken, beef and duck products, a 33 percent increase from same period the year before.
This concerning uptrend began intensifying in fiscal year 2021, when in the midst of the COVID-19 pandemic, the volume of prohibited animal products interdicted by CBP at the LA/LB Seaport reached an unprecedented 786,514 lbs. (356,757 kilograms) marking a staggering increase of 80 percent compared to the previous year.
“Preventing the introduction of foreign contagious animal diseases and noxious pests at our nation’s largest seaport is paramount and vital to our agriculture industry and the well-being of the communities we serve,” said Carlos C. Martel, CBP Director of Field Operations in Los Angeles. “We work closely with our USDA and private-sector partners to protect the nation from a variety of diverse agriculture threats.
From October 1, 2020, to September 30, 2021, LA/Long Beach CBP agriculture specialists issued 1,256 Emergency Action Notifications (EAN) for a 52 percent increase, and 166 Significant Incident Reports marking a 50 percent increment from the previous year. When unmanifiested/prohibited animal products are intercepted, CBP issues an EAN to initiate the destruction or re-exportation of the contraband.
According to USDA, China is a country affected by African Swine Fever (ASF), Classical Swine Fever (CSF), virulent Newcastle Disease (vND), Foot and Mouth Disease (FMD), Highly Pathogenic Avian Influenza (HPAI) and Swine Vesicular Disease (SVD).
CBP agriculture specialists found most of the unmanifiested animal products commingled in boxes of e-commerce shipments and household goods in a clear attempt to smuggle the prohibited meats.
“CBP plays a major role in protecting American consumers and the agriculture industry from pests and diseases.” said Donald R. Kusser, CBP Port Director of the Los Angeles/Long Beach Seaport. “These unprecedented numbers reflect the critical role and outstanding contributions of CBP’s agriculture specialists, they have been working tirelessly identifying, intercepting and seizing these prohibited items.”
Unregulated animal products from China are in high demand and smugglers attempt to smuggle those products into the United States for profit without regard to consumer safety or potential damage to the agriculture industry. Many consumers are not aware of the importation restrictions.
Pork products from ASF-affected countries may introduce the virus to the United States, crippling the domestic pork industry and U.S. pork exports valued at $6.5 billion annually. The ASF is spread by contact with an infected animals’ body fluids. It can be spread by ticks that feed on infected animals.
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FTC Charges HomeAdvisor, Inc. with Cheating Businesses, Including Small Businesses, Seeking Leads for Home Improvement Projects - Federal Trade Commission
The Federal Trade Commission today issued an administrative complaint against Denver-based HomeAdvisor, Inc. – a company affiliated with Angi – alleging it used a wide range of deceptive and misleading tactics in selling home improvement project leads to service providers, including small businesspeople operating in the “gig” economy.
The FTC’s complaint against HomeAdvisor alleges that since at least the middle of 2014 it has made false, misleading, or unsubstantiated claims about the quality and source of the leads the company sells to service providers, such as general contractors and small lawn care businesses, who are in search of potential customers.
“Gig economy platforms should not use false claims and phony opportunities to prey on workers and small businesses,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s administrative complaint against HomeAdvisor shows that the FTC will use every tool in its toolbox to combat dishonest commercial practices.”
For example, HomeAdvisor told service providers that its leads resulted in actual home improvement jobs at rates higher than HomeAdvisor’s own data supported. HomeAdvisor also misled service providers about the cost of an optional one-month subscription to a software platform that HomeAdvisor sold along with its leads, according to the FTC’s complaint.
As a result of these misrepresentations, the complaint alleges, service providers often spend time following up on leads that are below the quality HomeAdvisor promises, and even more time seeking refunds from the company for those leads.
HomeAdvisor, which also does business as Angi Leads and HomeAdvisor Powered by Angi, recruits service providers using marketing materials and agents who call the service providers and try to persuade them to join the company’s network. Once service providers join HomeAdvisor’s network, HomeAdvisor then sells them leads, which service providers use to contact potential customers for home services like kitchen remodeling or lawn care.
Many of the leads HomeAdvisor sells consist of information submitted by consumers on the company’s website. It also resells leads it buys from third parties, known as affiliates, who generate the leads, in part, from web-based forms that ask consumers about potential home projects they are considering.
Service providers who join HomeAdvisor’s network pay an annual membership fee of $287.99, in addition to a separate fee for each lead they receive. As part of their HomeAdvisor membership package, many service providers have also paid an additional $59.99 for an optional one-month subscription to a service called mHelpDesk, which includes software that helps with scheduling appointments and processing payments.
This brings the total subscription fee to $347.98, with the mHelpDesk program automatically renewing at $59.99 per month until it is canceled. According to the complaint, HomeAdvisor’s sales agents and marketing materials have misrepresented the quality, characteristics, and source of the leads the company provides. First, while HomeAdvisor states that its leads concern consumers who intend to hire a service provider soon, many of them do not, the FTC contends.
In addition, while HomeAdvisor represents that service providers only will receive leads matching the types of services they provide and their preferred geographic area, many of them do not. HomeAdvisor also represents to service providers that its leads are from consumers who knowingly sought HomeAdvisor’s assistance in selecting a service provider, while many of the leads it sells are actually purchased from affiliates and did not come from HomeAdvisor’s website.
The complaint also alleges HomeAdvisor often tells service providers that its leads result in jobs at rates much higher than it can substantiate.
Finally, the complaint alleges that HomeAdvisor’s sales agents misrepresented the cost of the optional one-month my Help Desk subscription by telling service providers that the first month is free with an annual membership package. In reality, the first month of the subscription is not free, resulting in a package that costs $59.99 more than properly informed service providers might have otherwise paid.
The Commission vote to issue the complaint was 4-0. A redacted version of the complaint will be posted soon on the FTC’s website.