Proposed Bills Would Impact U.S. Apparel Imports
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N º 2 Proposed Bills Would Impact U.S. Apparel Imports By: Jon Fee and BJ Shannon, Alston & Bird LLP June 29, 2010 1 Two bills introduced in the U.S. Congress, if they become law, will enhance enforcement of customs laws against apparel importers and require non-U.S. manufacturers to appoint U.S. agents so that they can be more easily sued in U.S. courts. The first bill, the Textileduty-free claims for textiles an Enforcement and Security Act of 2010, targets false d apparel under free trade agreements and trade preference programs such as CAFTA and the recently enhanced legislation benefitting apparel imports from Haiti. Apparel imported with false claims would be subject to seizure and forfeiture, in addition to presently applicable penalties, and the proceeds of penalties and forfeitures would be used to fund further textile and apparel enforcement efforts. Rewards of up to 20 percent of penalties or forfeitures would be available to persons furnishing information about violations. The bill would require the Commissioner of Customs to employ at least three branch chiefs, 14 operations staff and two trade analysts for origin verification and other textile and apparel compliance purposes. At least one operations staff would be assigned to cover each of three CAFTA countries and China. These personnel would conduct “special operations” to address fraud, quota requirements, revenue collection, trade preferences or requirements under free trade agreements, product safety, antidumping and countervailing duties, intellectual property rights and related “high risk behavior” on the part of importers, manufacturers and countries. The 15 largest U.S. textile and apparel ports would be required to maintain a staff of import specialists with textile and apparel fraud training at 150 percent of the current staff level. Entry documents for textiles and apparel would have to include affidavits containing the physical address of the manufacturer, a contact person’s name and contact information, a description of the goods, the purchase order number or invoice number, the date of sale or shipment, and the container number or bill of lading number. June 2010, 11th year
Transcript of Proposed Bills Would Impact U.S. Apparel Imports
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Proposed Bills Would Impact U.S. Apparel ImportsBy: Jon Fee and BJ Shannon, Alston & Bird LLPJune 29, 2010
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Two bills introduced in the U.S. Congress, if they become law, will enhance enforcement of customs laws against apparel importers and require non-U.S. manufacturers to appoint U.S. agents so that they can be more easily sued in U.S. courts.
The first bill, the Textileduty-free claims for textiles an Enforcement and Security Act of 2010, targets false d apparel under free trade agreements and trade preference programs such as CAFTA and the recently enhanced legislation benefitting apparel imports from Haiti. Apparel imported with false claims would be subject to seizure and forfeiture, in addition to presently applicable penalties, and the proceeds of penalties and forfeitures would be used to fund further textile and apparel enforcement efforts. Rewards of up to 20 percent of penalties or forfeitures would be available to persons furnishing information about violations.
The bill would require the Commissioner of Customs to employ at least three branch chiefs, 14 operations staff and two trade analysts for origin verification and other textile and apparel compliance purposes. At least one operations staff would be assigned to cover each of three CAFTA countries and China. These personnel would conduct “special operations” to address fraud, quota requirements, revenue collection, trade preferences or requirements under free trade
agreements, product safety, antidumping and countervailing duties, intellectual property rights and related “high risk behavior” on the part of importers, manufacturers and countries. The 15 largest U.S. textile and apparel ports would be required to maintain a staff of import specialists with textile and apparel fraud training at 150 percent of the current staff level.
Entry documents for textiles and apparel would have to include affidavits containing the physical address of the manufacturer, a contact person’s name and contact information, a description of the goods, the purchase order number or invoice number, the date of sale or shipment, and the container number or bill of lading number.
June 2010, 11th year
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Importers would be required to maintain bonds in amounts equal to estimated duties, fees and penalties, computed by a “risk assessment” of each importer to be conducted by Customs.
Customs penalty provisions would be expanded specifically to cover non-U.S. persons who violate U.S. customs laws. Customs would be required to publish a list of non-U.S. persons found to have violated customs laws relating to textiles and apparel, as well as a list of “high risk countries” failing to demonstrate good faith efforts in ceasing such activities.
Customs would be required to establish an “electronic verification system” to track textile and apparel products produced in free trade agreement countries to ensure compliance with the requirements of those free trade agreements. The President would be required to seek consultations with other free trade agreement parties to implement the system.
Nonresident importers of textiles and apparel would be required to submit declarations with their entries naming a U.S. agent authorized to accept service of process against them and certifying that they have sufficient assets in the United States to cover any duties and penalties. In connection with the declaration, the nonresident importer would have to provide a copy of the commercial invoice covering the goods and naming all parties to the transaction. The nonresident importer would be required to have a customs bond and a power of attorney, presumably naming the customs broker and agent for service. Failure to meet the foregoing requirements would subject the nonresident importer to a penalty of $50,000 per transaction in addition to any other applicable penalty.
The U.S. Department of Justice would be required to establish a new textile and apparel enforcement office staffed by a director and three
attorneys. Any enforcement case involving textiles and apparel would have to be prosecuted in the U.S. District Court for the Middle District of North Carolina.
The second bill, The Foreign Manufacturers Legal Accountability Act, would require foreign manufacturers of many products (including apparel) who wish to sell those products in the United States to register an agent in the United States for service of process and to consent to jurisdiction for civil and regulatory actions in the United States. The U.S. Department of Commerce would maintain a publicly available registry of such agents. Covered products would be prohibited importation into or sale in the United States unless the manufacturer had such a registered U.S. agent. The stated purpose of the bill is to subject foreign manufacturers to the same U.S. court jurisdiction applicable to U.S. manufacturers. The bill is supported by U.S. Consumer Product Safety Commission staff, who claim that lack of jurisdiction over foreign manufacturers has thwarted the Commission’s ability to meet its enforcement responsibilities.
Each bill is co-sponsored by lawmakers of both the Democratic and Republican
parties. The probability of passage of either bill is uncertain. If adopted, either bill could possibly be subject
to legal challenge under the U.S. Constitution or the rules
of the World Trade Organization. Non-U.S.
manufacturers and exporters and U.S. importers of textiles and apparel are encouraged to
monitor the progress of these bills in Congress so that they
can be prepared to react and comply if the bills are enacted into law.
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351 Contempora DriveLumberton, North Carolina 28358Telephone: (910) 738-7131Fax: (910) 738-9575www.contemporafabrics.com
Contact Name / Number
Ronald Roach, VP SalesOffice: (910) 738-7131 Ext. 218Cell: (910) 258-3585E-Mail: [email protected]
Gerald Cauthen, VP ManufacturingOffice: (910) 738-7131 Ext. 213Cell: (910) 258-2233E-Mail: [email protected] Alex Whitley, Sales and Product DevelopmentOffice: (910) 738-7131 Ext. 210Cell: (910) 258-4264E-Mail: [email protected]
List of senior management:
Ronald Roach, VP SalesGerald Cauthen, VP ManufacturingCarey Read, Corporate ControllerDanny Church, Director of Manufacturing/PlanningAlex Whitley, Sales and Product Development
History of company
Machines include:
Rib machines 10, 14, and 18 cut.Double knit machines 14, 18, 20, 22, 24, 28, 32 cut.26’’ single knit machines 12, 14, 18, 20, 22, 24, 28 cut.30” single knit machines 14, 16, 17, 18, 20, 22, 24, 28, 36 cut.26” terry machines 16, 18, 20 cut.30” 3 end fleece machines 13, 14 cut.Body size jersey machines all sizes 22 and 28 cut.
Products:
End Uses:
Contempora Fabrics
Contempora Fabrics, Inc was founded in 1972 by Lacy Nance. In 1988, the company became a 100% employee owned company. Each employee has a vested interest in the company. Today partners Gerald Cauthen and Ronald Roach manage Contempora. The entire management team has over 150 years of combined textile experience. Contempora has 185 circular knitting machines in a 150,000 square foot facility on 29 acres. We are known for our versatile product mix and
capacity to produce two million pounds per month. Relationships with fabric converters, manufacturers, major brands, and retailers have helped keep our business viable in a changing textile market. The ability to do contract work, greige goods, or finished fabric has allowed Contempora to work on all levels to meet the various needs required by the customer. Research and development are a priority to help keep our customers aware of the latest trends. Relationships with most major fiber suppliers allow us to be first to market in most cases with the latest technologies.
A recent expansion into body size jersey and 3 end fleece machines helped us round out our versatility.
Circular knits including body size jersey, jersey, rib, 2 end fleece, 3 end fleece, pique with collars and welts, thermals, French terry, terry, performance fabrics, and other novelties. All fabrics with and without spandex.
T-shirts, sportswear, dresses, juniors, golf apparel, career uniform apparel, military, performance apparel, base layer underwear, team sports.
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1823 Boone Trail RoadSanford, NC 27330Phone: (919) 776 9940Fax: (919) 718 2300www.frontierspinning.com
Contact name/number
Sr. John W. Garris III, Director, International SalesPhone: (919) 776 9940Fax: (919) 718 2300E-mail: [email protected]
List of senior management:
Mr. George R. Perkins Jr., General ManagerMr. Robin Perkins, PresidentMr. George W. Parker, President-Frontier MarketingMs. Barbara F. Walton, CFOMr. Robert E. Wiggins, Executive Vice-PresidentMr. John M. Maness, V.P. of Manufacturing
History of company:
Products:
End Products Supplied:
Frontier Spinning Mills, Inc.
focus hard to bring customer service and customer
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Hamrick Mills, Inc.Apartado Postal 48515 W. Calle BufordGaffney, SC 29342Phone: (864) 489-4731Fax: (864) 487-9946www.hamrickmills.com
Contact Name/Number:
Jim Hopkins, Vice-president, SalesPhone: (864) 487-6283E-mail: [email protected]
Roy Lockett, Executive of SalesPhone: (864) 487-6266E-mail: [email protected]
List of senior management:
W. Carlisle Hamrick, PresidentCharles Hamrick, CFOLyman Hamrick, Vice President, ManufacturingSteve Emmerth, Vice President, SalesJim Hopkins, Vice President, Sales
History of Company
Products:
End Products Supplied:
Shirting fabricPocketing, waistband lining, innerlining fabricCoating Substrates for Athletic tapes, book bindings, industrial apronsSheeting fabricDrapery and lining fabricHigh pressure laminated fabric for printed circuitry
On January 19, 1900, the first meeting of the subscribers to the stock of a new textile organization was held in Gaffney, South Carolina. The new organization was named Limestone Mills. In following years, five other plants were either built or bought, and the Hamrick group consisted of Limestone Mills, Hamrick Mills, Broad River Mills, Alma Mills, Musgrove Mills, and Paola Mills.
The Hamrick group continued to operate, complete with villages, until two of the plants, Limestone and Hamrick, were sold in 1947 and the name was changed to Limestone Manufacturing Co. Later, Broad River mill was sold to Dodgeville Finishing Company and Paola were phased out, reducing the Hamrick interest to Alma and Musgrove Mills. Following the concentration of holdings into a two-plant operation, with a central office on West Buford Street, Hamrick interests have continually made improvements at both the Hamrick Plant (the Alma Plant renamed) and the
Musgrove Plant. These two modern, highly efficient plants, comprise Hamrick Mills, Inc. today.
Hamrick Mills, Inc. is a fourth generation family-owned textile company. The corporate office and two manufacturing facilities, the Hamrick Plant and the Musgrove Plant, are all located in Gaffney, South Carolina. The company is a leading producer of high quality, light to medium weight woven fabrics for use in the home furnishings, industrial, and apparel markets.
Hamrick Mills' mission is to serve customers by focusing on quality, innovation and superior service. Hamrick Mills will also strive to continually improve the operations of our company by implementation of technology or processes that increase customer satisfaction and add value to their products.
Woven fabrics in a variety of widths, ranging from 41" to 140" and weights from 2 oz per square yard to 6 oz per square yard. These fabrics are offered in a range poly/cotton blends, as well as 100% cotton. Constructions are mainly plain weave with some dobby capacity available. Various types of filling yarns can be easily run with the company's modern Sulzer projectile and AirJet looms.
Yarn is spun on Murata Jet Spinning and Murata Vortex Spinning, in the range of 20's to 40's (Ne) English yarn count.
The company offers many common print cloth styles and has the ability to weave special fabric constructions for specific customer needs.
P. O. Box 100503 S. Main StreetMauldin, SC 29662Telephone: (864) 688-7100www.mvmills.comwww.mvmdenim.com
Contact Name / Number
Mr. Billy Havird, Vice President Merchandising – Piece DyesTelephone: (864) 688-7182E-mail: [email protected]
Mr. Dale McCollum, Vice President, Merchandising Denim FabricsTelephone: (706) 734-4713E-mail: [email protected]
List of senior management:R.B. Pamplin, Jr. President W. David Hastings, President and CEOW. E. Duncan, Vice President and CFOE.G. Cochrane, Vice President and Secretary
Operating Division Presidents:Richard Turner- Apparel FabricsKent Snow- BrentexJudson Boehmer- LaFranceWilliam Josey- Consumer ProductsEd Rish- Chemicals
History of company
Products
Mount Vernon Mills, Inc.
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Mount Vernon Mills, Inc. ("MVM") is a diversified and integrated manufacturer of textile and chemical products. Beginning with flour mills converted to cloth production in the 1830s in the Baltimore, Maryland area, MVM became an important producer of cotton duck and canvas fabric by the late 19th century. The company's focus shifted south in the 20th century as it expanded into ployester/cotton blends in addition to cotton fabric. As the last mills in Maryland were closed, production increased at plants in North Carolina, South Carolina, Georgia and Alabama.
Apparel Fabrics- denim; piece dyed fabrics (including flame retardant fabrics) for career apparel, military uniforms, sportswear and work wearBrentex- pocketing; waistbands and interlinings, greige apparel fabrics; industrial fabricsConsumer Products- table linens; sheets and towels for hospitality market; infant beddingLaFrance- woven paint roller fabric; fabrics for cars, trucks, buses and other vehicles; industrial fabrics
Chemicals- specialty chemicals (wet and dry) for textile, personal care, paper and other industries.
End Products Supplied
Same as above
MVM became part of the R.B. Pamplin Corporation family in 1982. This gave MVM much more opportunity to grow, both internally and by acquisition. The 1985 purchase of Riegel Textile Corporation quadrupled MVM's revenues, and made MVM a key producer of finished apparel fabric (especially denim and piece dyed twills), consumer products and home furnishings. Pocketing, findings and related product manufacturing was added in the 1990s, firmly establishing MVM as a leading U.S. supplier to the apparel industry. MVM also retains important market share in other textile markets, such as woven paint roller fabric, table linens, and transportation fabrics. MVM now operates plants in six states in the Southeastern U.S.
Largely because of its need for textile chemicals, MVM has also moved into the chemical blending and processing business. This includes dry chemicals like size, and wet chemicals such as softeners and lubricating aids. These operations are also allowing MVM to enter non-textile markets like adhesives and personal care.
2010 U.S. COTTON PLANTINGS
2009 Actual(Thou.) 1/
2010 Estimated(Thou.) 1/ Percent Change
SOUTHEAST 1,891 2,525 33.5% Alabama Florida Georgia N. Carolina S. Carolina Virginia
255 370 45.1% 82 90 9.8%
1,000 1,250 25.0% 375 570 52.0% 115 175 52.2% 64 70 9.4%
MID-SOUTH 1,627 1,880 15.6% Arkansas Louisiana Mississippi Missouri Tennessee
520 530 1.9% 230 230 0.0% 305 420 37.7% 272 300 10.3% 300 400 33.3%
SOUTHWEST 5,243 5,950 13.5% KansasOklahomaTexas
38 40 5.3% 205 210 2.4%
5,000 5,700 14.0% WEST 247 345 39.6% Arizona California New Mexico
145 185 27.6% 71 125 76.1% 31 35 12.5%
TOTAL UPLAND 9,008 10,700 18.8% TOTAL ELS 141 209 47.8% Arizona California New Mexico Texas
2 3 87.5% 119 185 55.5% 3 3 7.1% 18 18 0.0%
ALL COTTON 9,150 10,909 19.2% 1/ USDA-NASS
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2010 U.S. Crop OutlookPrepared by:Economic Services - National Cotton Council
The U.S. Department of Agriculture (USDA) released their first U.S. crop outlook for the upcoming season. USDA placed the estimated 2010/09 U.S. cotton plantings at 10.91 million acres, up 19.2% from the previous year.. Pima cotton is also up 47.8% to 209,000 acres. USDA’s June number is up 404,000 acres from their initial '10 estimate released in March.
