USA-ITA in the News
Law to Protect Trees Hits Forest of Imports (Sept 16 Bloomberg)
Law to Protect Trees Hits Forest of Imports: Cindy Skrzycki
By Cindy Skrzycki
Sept. 16 (Bloomberg) -- Talk about not seeing the forest for the trees.
A congressional amendment designed to stop imports of illegal lumber was written so broadly, U.S. business groups say, that they fear the provision will cover many other products that contain wood or material from other plants. Thus, they may have to disclose the origin of wood in toys, guns, musical instruments, bubble gum and dresses that contain rayon made from cellulose.
``We don't want to undermine the law, but let's not get ridiculous here,'' says Erik Autor, vice president and international trade counsel for the National Retail Federation in Washington.
The dispute over the measure, which is part of the farm bill that Congress passed in May, illustrates how well-intentioned laws can have unintended consequences. Regulators estimate 30,000 shipments a day could be subject to the new declaration requirement.
The amendment added plants, defined as ``any wild member of the plant kingdom, including roots, seeds, parts, or products thereof,'' to the protection of fish and wildlife covered by the 108-year-old Lacey Act. The main exemption is food crops.
``The scope as we now interpret it is very broad,'' says Cathy Sauceda, director of import safety and interagency requirements for U.S. Customs and Border Protection.
No proposed regulation or written guidance has been issued yet. The clamor for information led Customs to hold briefings, including an Internet-based forum on the subject on Sept. 11. Included in the Web presentation was a slide of a woman blowing bubble gum as an example of what may be covered.
``In short, anything containing anything derived from plants,'' it said.
Mahogany and Rosewood
Lumber and paper companies and environmental groups that lobbied for the change say their intent was to protect trees such as mahogany and rosewood, as well as more common species, that are illegally cut down overseas.
``All the law requires you to do is know where your supplies came from,'' says Chip Murray, general counsel of the American Forest & Paper Association, a Washington trade group. The group says the domestic industry loses $1 billion annually because of trees cut in violation of treaties, local laws and regulations.
``For all we know, it could be coming from national parks in Southeast Asia, where whole stands of trees get smuggled out and it depresses prices without any regard for sustainability,'' Murray says.
Supporters of the law predict a compromise can be reached.
`Worked Out'
``If rationality prevails, it can be worked out in the regulatory and guidance process,'' says Alexander von Bismarck, executive director of Environmental Investigation Agency, a London- and Washington-based group that works undercover to investigate environmental crimes.
``It is a historic measure, and changes will start with the simple question of what wood is in that product and where did it come from? That question has never been asked.''
Importers have a different point of view.
``No socially responsible company wants to be associated with illegal logging,'' says Brenda Jacobs, an attorney with Sidley Austin LLP in Washington who represents the United States Association of Importers of Textiles and Apparel.
``But it is unrealistic to expect an importer of a highly processed product, whether it's a rayon dress or an electronic gadget with a rubber gasket, to know the genealogy of some remote plant ingredient that was part of the earliest stage of multicountry manufacturing.''
Reporting Phase-In
The Agriculture and Interior Departments, along with Customs, are working on a plan that calls for a phase-in of what products would be covered by the new declarations, which become effective Dec. 15.
Alex Belano, assistant branch chief for commodity, import analysis and operations at Agriculture's Animal and Plant Health Inspection Service, says it's anticipated that voluntary paper declarations will be accepted until April 1, 2009, when an electronic-filing system may be in place.
Declarations would first be required from importers of plywood, particle board, flooring and lumber. Starting July 1, furniture, paper, wood pulp, and cork would be brought into the program, followed by other products. More processed items, like rayon, may fall into the last of five phases.
Lobbyists Dismayed
Lobbyists, attorneys and trade associations representing footwear manufacturers, apparel importers, brokers, and other retailers were dismayed at having to know the specific name, value and quantity of plant product, and the country from which it was taken. If the species and country are unknown, importers are supposed to disclose the name of each species that may have been used and each possible country of origin.
The penalty for not complying is seizure and forfeiture of the wood products.
Autor of the retail federation says his phone has been ringing off the hook with compliance questions.
``We want some assurances about things that could get swept into this,'' Autor says. ``How do you know who felled the tree in Malaysia for the wood rosin that went into your lipstick?'' He wondered whether a ``legislative fix'' might be needed.
To contact the writer of this column: Cindy Skrzycki
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQsO1YRnfbs4
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WWD Review of 19th Annual Conference
Read WWD's review of the conference.
June 19, 2007: Vietnam’s President Meets With U.S. Apparel Buyers
Buyers Urge President Triet To Reinforce Their Message to Washington
(New York, 6/19) U.S. importers and retailers today held a closed meeting with Vietnam’s President, Nguyen Minh Triet, to share their concerns about an Apparel Import Monitoring Program established by the Bush Administration. Under that program, the U.S. Department of Commerce is temporarily monitoring apparel imports from Vietnam to determine whether there is any basis to initiate an antidumping investigation.
Read the press release on the June 19, 2007 meeting.
Read the Press ReleaseJust-style.com
Prime Source Forum Review
by Leonie Barrie, for www.just-style.com
Prime Source Forum
2nd April 2007 16:49
It’s wonderful when a trade event really lives up to expectations, and I can honestly say that last week’s Prime Source Forum in Hong Kong did that and more. Speakers and delegates travelled from around the globe – most continents were represented – and across the supply chain – from fibre and fabric suppliers to accessories, technology, manufacturers and retailers – making this the international meeting place that was promised.
And what’s more, everyone was keen to take part in the debate, openly sharing their comments and experience of the industry, the challenges they face and the opportunities that might exist in the future. It made for a refreshingly open discussion platform with no national gripes or political agendas to feed and caginess between competitors seemingly abandoned for two days – to the extent that people were even meeting during the intervals to talk about ways of taking certain issues to the next level. Of course there are no magic solutions, but the simple fact that all segments of the industry can get together to expose the issues is hugely beneficial.
As I’m still trying to decipher more than 50 pages of scribbled notes – and fighting ferocious jetlag too – forgive me if I borrow some thoughts from Bob Zane, chairman of the United States Association of Importers of Textiles and Apparel (USA-ITA), whose summary of the two days of discussions highlighted the very reason why an event like this is needed by our industry.
“Those of us who buy product would like to buy better product, faster and for less money. Those who supply product are looking at how we can give buyers more service, better product, for less money. In the midst of this the governments are trying to prevent imports coming in and protect industries that don’t exist, even though their consumers choose to buy cheaper imported goods. And even though companies are all concerned with the various aspects of social responsibility, they have yet to put together a code of conduct that they can all agree on.”
Perhaps more than anything Prime Source Forum posed more questions than it answered, and exposed just how much more the industry has to do to achieve its goals. All of which suggest that next year’s event – 1-2 April 2008 if you’re interested – will be just as well attended. It will be equally interesting to see how much, if any, progress has been made on tackling some of the key issues.
Finally, a big thanks to the organiser APLF Ltd for having the conviction to support an event like this, and to those readers of just-style who introduced themselves to me...your comments and suggestions have all been noted!
Articles and Citations in the Press
Go to TextileWorld.com
Textile WorldFebruary 7, 2007: Textile World Article
Importers Attack Vietnam Monitoring Program
By James A. Morrissey, Washington Correspondent
The New York City-based United States Association of Importers of Textiles and Apparel (USA-ITA) has blasted the Bush administration’s plan to closely monitor imports of five “sensitive” categories of apparel from Vietnam and urged the Department of Commerce (DOC) drop the plan, because no apparel manufacturers support it. The department says it plans initially to monitor imports of trousers, shirts, sweaters, underwear and swimwear as part of a commitment to determine whether Vietnamese imports are disrupting the US market illegally. The monitoring program has the strong support of US textile manufacturers, who contend Vietnam has a long history of disrupting markets with illegally dumped goods.
The Bush administration committed to the monitoring program as part of a deal made with US Sens. Elizabeth Dole, R-N.C., and Lindsey Graham, R-S.C., who during the past session of Congress were blocking approval of permanent normal trade relations (PNTR) status for Vietnam. PNTR was an essential step in clearing the way for Vietnam to join the World Trade Organization.
In comments filed with the DOC, the Washington-based National Council of Textile Organizations (NCTO) said that “at a minimum” the DOC should closely scrutinize the sensitive import categories, and it should monitor others as data warrant. “Given Vietnam’s track record, it is highly likely that dumping will indeed occur,” the NCTO filing said.
Textile and apparel importers are not buying into that at all. Describing the monitoring program an attempt by the US yarn and fabric industry to “divert attention from its own anti-competitive agenda,” USA-ITA Executive Director Laura E. Jones said: “The government knows that the support for this apparel monitoring program comes solely from the US textile industry, which doesn’t make apparel and has no business speaking for apparel. In fact in some 20 written comments submitted to the Commerce Department, there was not one from a US apparel producer favoring monitoring.”
Jones said the process is “entirely backwards,” and that the first step should be to identify whether there are any US apparel makers that compete with apparel imports from Vietnam. She charged the government “shot first” and only now is asking questions, and she warned that US retailers and consumers will pay the price.
WWD: November 21, 2006
Vietnam Status Casts Pall Over Importers Conference
Wall Street Journal: August 30, 2006
Threading Africa's Needle Wall Street Journal,
August 30, 2006(Page A10)
Law to Protect Trees Hits Forest of Imports: Cindy Skrzycki
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