Champion on Track to Become Apparel’s Next $3 Billion Baby

November 11, 2019

Hanesbrands’ Champion business is on a roll and well on its way to becoming a $3 billion brand.

“We will surpass our $2 billion goal next year, two years early, and we do believe that the next billion can emerge over the next few years,” CEO Gerald Evans told analysts Thursday on a conference call. “We have several factors supporting our view. We see strong secular trends within the activewear category. Champion’s brand equity scores are growing, particularly with Gen Z and millennials.”

Hanesbrands is expanding Champion’s product portfolio, including a broader assortment within performance, kids’ and women’s lines, as well as in casual footwear and accessories.

“And we’re increasing distribution in large economies such as China and South Korea,” Evans said. “All of which positions us for continued double-digit Champion growth in 2020 and beyond.”

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Source: https://sourcingjournal.com/

China Says US Agrees to Tariff Rollback if Deal Reached

November 7, 2019

China and the U.S. have agreed to roll back tariffs on each other’s goods in phases as they work toward a deal between the two sides, a Ministry of Commerce spokesman said.

“In the past two weeks, top negotiators had serious, constructive discussions and agreed to remove the additional tariffs in phases as progress is made on the agreement,” spokesman Gao Feng said Thursday.

“If China, U.S. reach a phase-one deal, both sides should roll back existing additional tariffs in the same proportion simultaneously based on the content of the agreement, which is an important condition for reaching the agreement,” Gao said.

If confirmed by the U.S., such an understanding could help provide a road-map to a deal de-escalating the trade war that’s cast a shadow over the world economy. China’s key demand since the start of negotiations has been the removal of punitive tariffs imposed by President Donald Trump, which by now apply to the majority of its exports to the U.S.
Stocks rallied, with Hong Kong’s Hang Seng Index climbing 0.6%. European shares and U.S. stock futures jumped. The yuan strengthened.

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Source: Bloomberg

USTR Announces GSP Enforcement Actions and Successes for Seven Countries

November 7, 2019

Washington, D.C. – The Office of the United States Trade Representative announced on Oct 25th, 2019 that President Donald J. Trump is suspending $1.3 billion in trade preferences for Thailand under the Generalized System of Preferences (GSP) based on its failure to adequately provide internationally-recognized worker rights. In addition, the President is restoring some GSP benefits for Ukraine following its passage of legislation aimed at addressing shortcomings in its intellectual property (IP) regime.

USTR also announced it is opening new GSP eligibility reviews for two countries: South Africa, based on IP protection and enforcement concerns, and Azerbaijan, based on worker rights concerns. USTR also is closing GSP eligibility reviews with no loss of GSP eligibility for three countries: Bolivia and Iraq, based on improvements in the protection of worker rights in those countries, and Uzbekistan, based on improvements in its protection and enforcement of IP rights.

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Source: Office of the United States Trade Representative 

Opening Day For Section 301 List 4 Exclusion Process

November 6, 2019

The process for filing exclusion requests for products on the Section 301 List 4  begins today, October 31, 2019 and ends on January 31, 2020 The Office of the U.S. Trade Representative (“USTR”) published the exclusion request procedures in the Federal Register on October 24, 2019.

Exclusion requests can be submitted via USTR’s portal at exclusions.ustr.gov. To be eligible for an exclusion, an importer must demonstrate that (a) there is an insufficient supply from U.S. sources; (b) the additional duties have caused severe economic harm; and (c) the imported good is not identified on the “Made in China 2025” list.  Exclusion requests are specific to products imported at the HTSUS 10-digit level and any request must clearly and succinctly identify the physical characteristics such that U.S. Customs can administer the exclusion.

USTR originally announced on August 6, 2019, that it would institute additional tariffs of 10% on approximately $250 billion dollars of imports from China identified on List 4A, but on August 26, 2019, it announced that the tariff rate would increase to 15% due to ongoing tensions and forestalled trade negotiations. Tariffs on List 4B are scheduled to go into effect on December 15, 2019. Importers should review both List 4A and 4B to identify and ensure that goods that it is importing are properly monitored.

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Source: JDSUPRA