In This Issue (September 2014) Sponsored by -...
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From: FDRA [email protected] Subject: Footwear Sourcing and Compliance Bulletin - September 2014 Date: January 12, 2015 at 1:38 PM To: [email protected] Having trouble viewing this email? Click here In This Issue (September 2014) Footwear Commodities Report Important Factory Compliance Workshop Turkish Tariff Update Sourcing, Compliance And Trade Updates Factory Spotlight FDRA Meets with Mexican Government Over Footwear Import Program Online Compliance Training - FDRA-U Cambodia Labor Alert - By Cascade Asia Footwear Import Data Footwear Commodities Report This report provides detailed costs analysis for footwear inputs and other costs impacting the footwear supply chain to help companies better track costs. Click here to access the August/ September Commodities Report. If you don't know your user name and password, please email Andy Polk . Factory Compliance Workshop in China & Vietnam Sponsored by REGISTER FOR FTDC FTDC takes place in Long Beach, CA from October 19-22nd at the Renaissance Long Beach Hotel. This year we will be touring Pier 400 at the Port of LA. Don't miss out on important logistics, taraffic and distribution updates! Register here today! Company Survey - Human Trafficking and Supply Chains
Transcript of In This Issue (September 2014) Sponsored by -...
From FDRA apolkfdraorgSubject Footwear Sourcing and Compliance Bulletin - September 2014Date January 12 2015 at 138 PMTo knygrenfdraorg
Having trouble viewing this email Click here
In This Issue (September 2014)Footwear Commodities Report
Important Factory Compliance Workshop
Turkish Tariff Update
Sourcing Compliance And Trade Updates
Factory Spotlight
FDRA Meets with Mexican Government Over Footwear ImportProgram
Online Compliance Training - FDRA-U
Cambodia Labor Alert - By Cascade Asia
Footwear Import Data
Footwear Commodities Report
This report provides detailed costs analysis forfootwear inputs and other costs impacting thefootwear supply chain to help companies bettertrack costs
Click here to access the AugustSeptember Commodities Report
If you dont know your user name and password please email Andy Polk
Factory Compliance Workshop in China ampVietnam
Sponsored by
REGISTER FOR FTDC
FTDC takes place inLong Beach CA fromOctober 19-22nd at theRenaissance LongBeach Hotel
This year we will betouring Pier 400 at thePort of LA Dont missout on importantlogistics taraffic anddistribution updates Register here today
Company Survey -Human Traffickingand Supply Chains
Vietnam
On November 5th FDRA is holding its compliance workshop - theResponsible Footwear Forum (RFF) - in Dongguan The eventincludes presentations on FDRAs new Code of Conduct its newResponsible Footwear Production program and seal trends inaddressing compliance issues and updates from Chinese officials onlabor laws
On November 10th FDRA will be holding its first workshop in Ho ChiMihn City Vietnam The workshop will cover both compliance andproduct safety issues from service providers and industryexecutives Make sure your factories dont miss these important events RFF Dongguan workshop registration link for factory reps httpwwwcventcomd04qq7b4W
Workshop in Vietnam registration link for factory repshttpeventsconstantcontactcomregistereventllr=flsvbncabampoeidk=a07e9qt774je0c50a46
Turkish (no delights) Footwear Tariff Update
On August 10th 2014 Turkey began levying an additional customs tax (ACT) by an additional 30 to 50 percent or a minimum of $3 to
$5 per pair depending on the HTS subheadingon imported non-EU footwear under Chapter 64of the HTS In addition duties paid arecalculated into the 8 percent VAT tax due onfootwear so this will also raise the VATpayment on imports
The ACT is calculated at the 4 digit HTS heading level See thespreadsheet in the FDRA memo for specifics Turkey did not committo a bound rate at the WTO as an original member in 1995 but itsMFN rates have ranged from duty free (approximately 25 percent offootwear) to 20 percent The average MFN rate is 107 percent forfootwear Click here for the full background memo Click here for the HTS spreadsheet Click here to read FDRAs letter to the Commerce Secretaryregarding these development urging the Sec to address thiswith her Turkish counterpart
Sourcing Compliance And Trade Updates USTR Important progress in latest TPP round(Politico - 910) The 12 countries negotiating the Trans-Pacific Partnership havecommitted to a focused work plan to boost momentum after morethan four years of negotiations Barbara Weisel the United Stateschief negotiator says in a statement marking the end of trade talks
and Supply Chains
FDRA in partnership with Ms Daryl Sando a law student at CatholicUniversity in WashingtonDC is conducting asurvey on the issue ofhuman trafficking andforced labor in supplychains Daryl is workingto better understand thecomplexities of a modernsupply chain and howthis issue can beaddressed from the corporate perspective To participate in this anonymous survey please click here
Your feedback isimportant and very muchappreciated
chief negotiator says in a statement marking the end of trade talkstoday in Vietnam
All countries involved want to reach a conclusion to unlock theenormous opportunity TPP represents Weisel says
US Trade Representative Michael Froman will hold bilateralmeetings with various TPP counterparts in the coming weeksincluding a meeting next week in Washington with VietnameseDeputy Prime Minister Vu Van Ninh according to the USTRstatement
During the 10-day meeting in Hanoi negotiators made importantprogress in the areas of state-owned enterprises intellectualproperty investment rules of origin transparency and anti-corruption and labor the USTR says Countries continued to moveforward with market access packages for goods services andinvestment financial services and government procurement
Having reduced the number of outstanding issues the United Statesand the other 11 TPP countries share a commitment to resolve theremaining issues as quickly as possible including both on the textand market access packages the USTR says
President Barack Obama has publicly announced his desire to have aTPP deal by the time he travels to Asia for the Asia-Pacific EconomicCooperation leaders summit in November
Factory Spotlight
In an effort to help FDRA factory members gain more exposure andprovide sourcing directions new sourcing options FDRA will start tohighlight factories who are new members as well as those who standout as examples for other factories
This month we spotlight a new FDRA member XO Footwear
XO Footwear is a shoe manufacturing company operating sixfactories throughout India They have become one of the topmanufacturers of footwear in India producingover 12 million pairs of shoes They producefor Bata Khadims Reliance Footwear TataRetail etc They also produce for TOMS XOrecently set up a west coast office in hopesthey can begin to connect with US footwearcompanies They are specifically focused on producing leatherfootwear for American brands
You can click here to see XOs full profile including picturesof their footwear samples
XOs lead US contactneeraj gupta Director - DevelopmentneerajxofootwearcomPh +1 909-560-6576
FDRA Meets with Mexican Government OverFootwear Import Program
Footwear Import Program
On September 19th FDRA met with senior officials from the MexicanEmbassy regarding recently announced changes to the treatment offootwear imports FDRA President Matt Priest communicated thesignificant concerns of FDRA regarding these measures which willlimit ports of entry require importers to register prior to importationand create a price reference system
The Mexican Embassy Officials stated that the new highly restrictivepolicies are primarily aimed at combating undervalued andcounterfeit imports from Asia The stated goal of the program is tonot damage Mexicos footwear market but rather create trustedimporters that can continue to access the market More specificallythe goal to prevent imports of counterfeit and undervalued footwearwas the driving force behind the establishment of the importerregistry
Unfortunately technical details remain scarce The Mexican Officialsconfirmed that many of the specifics of the new policy have yet to bedetermined FDRA will continue to work with the MexicanGovernment in Washington and Mexico City on the development ofthe program in order to lessen the damage the program has on FDRAcompanies and will alert members as details are released
As previously reported the rules due to be implemented starting inSeptember will be fully in force by October 2014 The new footwearregime appears to make importation into the Mexican marketsignificantly harder and will create additional costs for anycompanies looking to continue to import into the market Mexico hasannounced it will
Suspend phase out for duties on imported footwear Accordingto the announcement all footwear will now be subject to a 25-30 ad valorem rate based on the customs value Theannouncement does not specify whether FTA partners willexcluded from this measure Reestablish a price reference system for footwear Importersthat bring in footwear that is priced under Mexicos referenceprice will be required to pay a guarantee of the differencebetween the reference price and declared priceImports will be restricted to 9 officially authorized point ofentry for footwear Laacutezaro Caacuterdenas Manzanillo MeacutexicoGuadalajara Veracruz Tijuana Aeropuerto Internacional de laCiudad de Meacutexico Ciudad Hidalgo and Nuevo LaredoCompanies will need to register as footwear importersAll importers must prenotify 5 days prior to any shipmentNotifications must include invoices shipping documents andproof of insurance so the government can evaluate whetherthe prices are undervaluedAll shipments will be subject to inspections by MexicanCustoms upon importation and can also be subject to auditsafter importationThe tariff classification for use by Mexican Customs will shiftfrom an 8 to 10-digit HTS levelThe Mexican footwear industry will be working with Customsat points of entry
Online Compliance Training - FDRA-U
FDRA recently launched its online University free to FDRA memberswith courses focused on helping train on compliance issues To datemore than 17 compliance directors are signed up for the firstbatch of classes and are testing it out Those who find it valuable willbe able to sign up their factory reps and have them take the coursesfor free The system is set up so you can monitor who is taking thecourses and if they finished - ensuring their factories are workingtowards continuous improvement
If you would like to sign up to test drive FDRA-U please letAndy Polk know For more information on FDRA-U pleaseclick here
Cambodia Labor Alert - By Cascade Asia
Days before Cambodias Labor Advisory Council (LAC) reconvenes onSeptember 26 for its final round of 2015 wage negotiationsthousands of footwear and garment workers around Phnom Penhraised the stakes by demanding a monthly minimum wage ofUS$177 The peaceful lunchtime demonstration on September 17preceded 10 months of fervent sometimes violent campaigning fora minimum wage increase to US$160 a month now set at US$100Unions vowed that the US$177campaign would be spread tofactories nationwide and wouldcontinue during lunch time breaksthrough the end of Pchum Ben Festival (Ancestors Day) on October14 Representatives from eight major European fashion brands whosource from Cambodia responded on September 18 with aletter to Cambodian Deputy Prime Ministerpledging to pay higher prices for goods from Cambodia in exchangefor productivity and efficiency gains The LAC-comprised of representatives from the government laborunions and employers-may release a verdict as quickly as September27 though a final decision is more likely to be made in early October Cascade Asia Analysis
Despite calls for US$177 the general momentum of the labormovement has cooled substantially Conspicuously removed from thewage rallies during the past months including the most recentdemonstrations is the opposition the Cambodia National RescueParty (CNRP) The initial impetus for the wage movement in late2013 sprang from a combination of CNRP unrest over election resultsand worker furor over the glaring disparity between present pay andthe government committees suggestion of a US$160 minimummonthly wage As the former catalyst found recent resolution thelatter has failed to mobilize workers without the backing andresources of the CNRP As a result thelunch time demonstrations are more benign than previous techniquesrecently used by unions in Cambodia Production does not appear tobe threatened particularly as participation has waned
The most immediate threat to labor continuity in Cambodia over thenext month will be when the results of the LACs decision are madepublic There is virtually no chance that the council will agree uponan amount higher than US$150 We can expect the unions to expressdissatisfaction whatever the amount but only time will tell if they willreject the offer outright and call for a resumption of demonstrationsand similarly whether or not CNRP will get involved For the complete report click here
Cascade Asia Advisors is a boutique advisory firm focused onSoutheast Asia We exist to help level the playing field for foreignmultinationals operating in challenging and opaque markets in theregion
Footwear Import Data
With the government recently reporting newdata FDRA has produced its monthly FootwearImport Data Report
You can access July 2014 data here
If you dont know your user name and passwordplease email Andy Polk
Forward email
This email was sent to apolkfdraorg by apolkfdraorg | Update ProfileEmail Address | Rapid removal with SafeUnsubscribetrade | Privacy Policy
FDRA | 1319 F Street NW | Suite 700 | Washington | DC | 20004
THIS IS A TEST EMAIL ONLYThis email was sent by the author for the sole purpose of testing a draft message If you believe you havereceived the message in error please contact the author by replying to this message Constant Contacttakes reports of abuse very seriously If you wish to report abuse please forward this message toabuseconstantcontactcom
Vietnam
On November 5th FDRA is holding its compliance workshop - theResponsible Footwear Forum (RFF) - in Dongguan The eventincludes presentations on FDRAs new Code of Conduct its newResponsible Footwear Production program and seal trends inaddressing compliance issues and updates from Chinese officials onlabor laws
On November 10th FDRA will be holding its first workshop in Ho ChiMihn City Vietnam The workshop will cover both compliance andproduct safety issues from service providers and industryexecutives Make sure your factories dont miss these important events RFF Dongguan workshop registration link for factory reps httpwwwcventcomd04qq7b4W
Workshop in Vietnam registration link for factory repshttpeventsconstantcontactcomregistereventllr=flsvbncabampoeidk=a07e9qt774je0c50a46
Turkish (no delights) Footwear Tariff Update
On August 10th 2014 Turkey began levying an additional customs tax (ACT) by an additional 30 to 50 percent or a minimum of $3 to
$5 per pair depending on the HTS subheadingon imported non-EU footwear under Chapter 64of the HTS In addition duties paid arecalculated into the 8 percent VAT tax due onfootwear so this will also raise the VATpayment on imports
The ACT is calculated at the 4 digit HTS heading level See thespreadsheet in the FDRA memo for specifics Turkey did not committo a bound rate at the WTO as an original member in 1995 but itsMFN rates have ranged from duty free (approximately 25 percent offootwear) to 20 percent The average MFN rate is 107 percent forfootwear Click here for the full background memo Click here for the HTS spreadsheet Click here to read FDRAs letter to the Commerce Secretaryregarding these development urging the Sec to address thiswith her Turkish counterpart
Sourcing Compliance And Trade Updates USTR Important progress in latest TPP round(Politico - 910) The 12 countries negotiating the Trans-Pacific Partnership havecommitted to a focused work plan to boost momentum after morethan four years of negotiations Barbara Weisel the United Stateschief negotiator says in a statement marking the end of trade talks
and Supply Chains
FDRA in partnership with Ms Daryl Sando a law student at CatholicUniversity in WashingtonDC is conducting asurvey on the issue ofhuman trafficking andforced labor in supplychains Daryl is workingto better understand thecomplexities of a modernsupply chain and howthis issue can beaddressed from the corporate perspective To participate in this anonymous survey please click here
Your feedback isimportant and very muchappreciated
chief negotiator says in a statement marking the end of trade talkstoday in Vietnam
All countries involved want to reach a conclusion to unlock theenormous opportunity TPP represents Weisel says
US Trade Representative Michael Froman will hold bilateralmeetings with various TPP counterparts in the coming weeksincluding a meeting next week in Washington with VietnameseDeputy Prime Minister Vu Van Ninh according to the USTRstatement
During the 10-day meeting in Hanoi negotiators made importantprogress in the areas of state-owned enterprises intellectualproperty investment rules of origin transparency and anti-corruption and labor the USTR says Countries continued to moveforward with market access packages for goods services andinvestment financial services and government procurement
Having reduced the number of outstanding issues the United Statesand the other 11 TPP countries share a commitment to resolve theremaining issues as quickly as possible including both on the textand market access packages the USTR says
President Barack Obama has publicly announced his desire to have aTPP deal by the time he travels to Asia for the Asia-Pacific EconomicCooperation leaders summit in November
Factory Spotlight
In an effort to help FDRA factory members gain more exposure andprovide sourcing directions new sourcing options FDRA will start tohighlight factories who are new members as well as those who standout as examples for other factories
This month we spotlight a new FDRA member XO Footwear
XO Footwear is a shoe manufacturing company operating sixfactories throughout India They have become one of the topmanufacturers of footwear in India producingover 12 million pairs of shoes They producefor Bata Khadims Reliance Footwear TataRetail etc They also produce for TOMS XOrecently set up a west coast office in hopesthey can begin to connect with US footwearcompanies They are specifically focused on producing leatherfootwear for American brands
You can click here to see XOs full profile including picturesof their footwear samples
XOs lead US contactneeraj gupta Director - DevelopmentneerajxofootwearcomPh +1 909-560-6576
FDRA Meets with Mexican Government OverFootwear Import Program
Footwear Import Program
On September 19th FDRA met with senior officials from the MexicanEmbassy regarding recently announced changes to the treatment offootwear imports FDRA President Matt Priest communicated thesignificant concerns of FDRA regarding these measures which willlimit ports of entry require importers to register prior to importationand create a price reference system
The Mexican Embassy Officials stated that the new highly restrictivepolicies are primarily aimed at combating undervalued andcounterfeit imports from Asia The stated goal of the program is tonot damage Mexicos footwear market but rather create trustedimporters that can continue to access the market More specificallythe goal to prevent imports of counterfeit and undervalued footwearwas the driving force behind the establishment of the importerregistry
Unfortunately technical details remain scarce The Mexican Officialsconfirmed that many of the specifics of the new policy have yet to bedetermined FDRA will continue to work with the MexicanGovernment in Washington and Mexico City on the development ofthe program in order to lessen the damage the program has on FDRAcompanies and will alert members as details are released
As previously reported the rules due to be implemented starting inSeptember will be fully in force by October 2014 The new footwearregime appears to make importation into the Mexican marketsignificantly harder and will create additional costs for anycompanies looking to continue to import into the market Mexico hasannounced it will
Suspend phase out for duties on imported footwear Accordingto the announcement all footwear will now be subject to a 25-30 ad valorem rate based on the customs value Theannouncement does not specify whether FTA partners willexcluded from this measure Reestablish a price reference system for footwear Importersthat bring in footwear that is priced under Mexicos referenceprice will be required to pay a guarantee of the differencebetween the reference price and declared priceImports will be restricted to 9 officially authorized point ofentry for footwear Laacutezaro Caacuterdenas Manzanillo MeacutexicoGuadalajara Veracruz Tijuana Aeropuerto Internacional de laCiudad de Meacutexico Ciudad Hidalgo and Nuevo LaredoCompanies will need to register as footwear importersAll importers must prenotify 5 days prior to any shipmentNotifications must include invoices shipping documents andproof of insurance so the government can evaluate whetherthe prices are undervaluedAll shipments will be subject to inspections by MexicanCustoms upon importation and can also be subject to auditsafter importationThe tariff classification for use by Mexican Customs will shiftfrom an 8 to 10-digit HTS levelThe Mexican footwear industry will be working with Customsat points of entry
Online Compliance Training - FDRA-U
FDRA recently launched its online University free to FDRA memberswith courses focused on helping train on compliance issues To datemore than 17 compliance directors are signed up for the firstbatch of classes and are testing it out Those who find it valuable willbe able to sign up their factory reps and have them take the coursesfor free The system is set up so you can monitor who is taking thecourses and if they finished - ensuring their factories are workingtowards continuous improvement
If you would like to sign up to test drive FDRA-U please letAndy Polk know For more information on FDRA-U pleaseclick here
Cambodia Labor Alert - By Cascade Asia
Days before Cambodias Labor Advisory Council (LAC) reconvenes onSeptember 26 for its final round of 2015 wage negotiationsthousands of footwear and garment workers around Phnom Penhraised the stakes by demanding a monthly minimum wage ofUS$177 The peaceful lunchtime demonstration on September 17preceded 10 months of fervent sometimes violent campaigning fora minimum wage increase to US$160 a month now set at US$100Unions vowed that the US$177campaign would be spread tofactories nationwide and wouldcontinue during lunch time breaksthrough the end of Pchum Ben Festival (Ancestors Day) on October14 Representatives from eight major European fashion brands whosource from Cambodia responded on September 18 with aletter to Cambodian Deputy Prime Ministerpledging to pay higher prices for goods from Cambodia in exchangefor productivity and efficiency gains The LAC-comprised of representatives from the government laborunions and employers-may release a verdict as quickly as September27 though a final decision is more likely to be made in early October Cascade Asia Analysis
Despite calls for US$177 the general momentum of the labormovement has cooled substantially Conspicuously removed from thewage rallies during the past months including the most recentdemonstrations is the opposition the Cambodia National RescueParty (CNRP) The initial impetus for the wage movement in late2013 sprang from a combination of CNRP unrest over election resultsand worker furor over the glaring disparity between present pay andthe government committees suggestion of a US$160 minimummonthly wage As the former catalyst found recent resolution thelatter has failed to mobilize workers without the backing andresources of the CNRP As a result thelunch time demonstrations are more benign than previous techniquesrecently used by unions in Cambodia Production does not appear tobe threatened particularly as participation has waned
The most immediate threat to labor continuity in Cambodia over thenext month will be when the results of the LACs decision are madepublic There is virtually no chance that the council will agree uponan amount higher than US$150 We can expect the unions to expressdissatisfaction whatever the amount but only time will tell if they willreject the offer outright and call for a resumption of demonstrationsand similarly whether or not CNRP will get involved For the complete report click here
Cascade Asia Advisors is a boutique advisory firm focused onSoutheast Asia We exist to help level the playing field for foreignmultinationals operating in challenging and opaque markets in theregion
Footwear Import Data
With the government recently reporting newdata FDRA has produced its monthly FootwearImport Data Report
You can access July 2014 data here
If you dont know your user name and passwordplease email Andy Polk
Forward email
This email was sent to apolkfdraorg by apolkfdraorg | Update ProfileEmail Address | Rapid removal with SafeUnsubscribetrade | Privacy Policy
FDRA | 1319 F Street NW | Suite 700 | Washington | DC | 20004
THIS IS A TEST EMAIL ONLYThis email was sent by the author for the sole purpose of testing a draft message If you believe you havereceived the message in error please contact the author by replying to this message Constant Contacttakes reports of abuse very seriously If you wish to report abuse please forward this message toabuseconstantcontactcom
chief negotiator says in a statement marking the end of trade talkstoday in Vietnam
All countries involved want to reach a conclusion to unlock theenormous opportunity TPP represents Weisel says
US Trade Representative Michael Froman will hold bilateralmeetings with various TPP counterparts in the coming weeksincluding a meeting next week in Washington with VietnameseDeputy Prime Minister Vu Van Ninh according to the USTRstatement
During the 10-day meeting in Hanoi negotiators made importantprogress in the areas of state-owned enterprises intellectualproperty investment rules of origin transparency and anti-corruption and labor the USTR says Countries continued to moveforward with market access packages for goods services andinvestment financial services and government procurement
Having reduced the number of outstanding issues the United Statesand the other 11 TPP countries share a commitment to resolve theremaining issues as quickly as possible including both on the textand market access packages the USTR says
President Barack Obama has publicly announced his desire to have aTPP deal by the time he travels to Asia for the Asia-Pacific EconomicCooperation leaders summit in November
Factory Spotlight
In an effort to help FDRA factory members gain more exposure andprovide sourcing directions new sourcing options FDRA will start tohighlight factories who are new members as well as those who standout as examples for other factories
This month we spotlight a new FDRA member XO Footwear
XO Footwear is a shoe manufacturing company operating sixfactories throughout India They have become one of the topmanufacturers of footwear in India producingover 12 million pairs of shoes They producefor Bata Khadims Reliance Footwear TataRetail etc They also produce for TOMS XOrecently set up a west coast office in hopesthey can begin to connect with US footwearcompanies They are specifically focused on producing leatherfootwear for American brands
You can click here to see XOs full profile including picturesof their footwear samples
XOs lead US contactneeraj gupta Director - DevelopmentneerajxofootwearcomPh +1 909-560-6576
FDRA Meets with Mexican Government OverFootwear Import Program
Footwear Import Program
On September 19th FDRA met with senior officials from the MexicanEmbassy regarding recently announced changes to the treatment offootwear imports FDRA President Matt Priest communicated thesignificant concerns of FDRA regarding these measures which willlimit ports of entry require importers to register prior to importationand create a price reference system
The Mexican Embassy Officials stated that the new highly restrictivepolicies are primarily aimed at combating undervalued andcounterfeit imports from Asia The stated goal of the program is tonot damage Mexicos footwear market but rather create trustedimporters that can continue to access the market More specificallythe goal to prevent imports of counterfeit and undervalued footwearwas the driving force behind the establishment of the importerregistry
Unfortunately technical details remain scarce The Mexican Officialsconfirmed that many of the specifics of the new policy have yet to bedetermined FDRA will continue to work with the MexicanGovernment in Washington and Mexico City on the development ofthe program in order to lessen the damage the program has on FDRAcompanies and will alert members as details are released
As previously reported the rules due to be implemented starting inSeptember will be fully in force by October 2014 The new footwearregime appears to make importation into the Mexican marketsignificantly harder and will create additional costs for anycompanies looking to continue to import into the market Mexico hasannounced it will
Suspend phase out for duties on imported footwear Accordingto the announcement all footwear will now be subject to a 25-30 ad valorem rate based on the customs value Theannouncement does not specify whether FTA partners willexcluded from this measure Reestablish a price reference system for footwear Importersthat bring in footwear that is priced under Mexicos referenceprice will be required to pay a guarantee of the differencebetween the reference price and declared priceImports will be restricted to 9 officially authorized point ofentry for footwear Laacutezaro Caacuterdenas Manzanillo MeacutexicoGuadalajara Veracruz Tijuana Aeropuerto Internacional de laCiudad de Meacutexico Ciudad Hidalgo and Nuevo LaredoCompanies will need to register as footwear importersAll importers must prenotify 5 days prior to any shipmentNotifications must include invoices shipping documents andproof of insurance so the government can evaluate whetherthe prices are undervaluedAll shipments will be subject to inspections by MexicanCustoms upon importation and can also be subject to auditsafter importationThe tariff classification for use by Mexican Customs will shiftfrom an 8 to 10-digit HTS levelThe Mexican footwear industry will be working with Customsat points of entry
Online Compliance Training - FDRA-U
FDRA recently launched its online University free to FDRA memberswith courses focused on helping train on compliance issues To datemore than 17 compliance directors are signed up for the firstbatch of classes and are testing it out Those who find it valuable willbe able to sign up their factory reps and have them take the coursesfor free The system is set up so you can monitor who is taking thecourses and if they finished - ensuring their factories are workingtowards continuous improvement
If you would like to sign up to test drive FDRA-U please letAndy Polk know For more information on FDRA-U pleaseclick here
Cambodia Labor Alert - By Cascade Asia
Days before Cambodias Labor Advisory Council (LAC) reconvenes onSeptember 26 for its final round of 2015 wage negotiationsthousands of footwear and garment workers around Phnom Penhraised the stakes by demanding a monthly minimum wage ofUS$177 The peaceful lunchtime demonstration on September 17preceded 10 months of fervent sometimes violent campaigning fora minimum wage increase to US$160 a month now set at US$100Unions vowed that the US$177campaign would be spread tofactories nationwide and wouldcontinue during lunch time breaksthrough the end of Pchum Ben Festival (Ancestors Day) on October14 Representatives from eight major European fashion brands whosource from Cambodia responded on September 18 with aletter to Cambodian Deputy Prime Ministerpledging to pay higher prices for goods from Cambodia in exchangefor productivity and efficiency gains The LAC-comprised of representatives from the government laborunions and employers-may release a verdict as quickly as September27 though a final decision is more likely to be made in early October Cascade Asia Analysis
Despite calls for US$177 the general momentum of the labormovement has cooled substantially Conspicuously removed from thewage rallies during the past months including the most recentdemonstrations is the opposition the Cambodia National RescueParty (CNRP) The initial impetus for the wage movement in late2013 sprang from a combination of CNRP unrest over election resultsand worker furor over the glaring disparity between present pay andthe government committees suggestion of a US$160 minimummonthly wage As the former catalyst found recent resolution thelatter has failed to mobilize workers without the backing andresources of the CNRP As a result thelunch time demonstrations are more benign than previous techniquesrecently used by unions in Cambodia Production does not appear tobe threatened particularly as participation has waned
The most immediate threat to labor continuity in Cambodia over thenext month will be when the results of the LACs decision are madepublic There is virtually no chance that the council will agree uponan amount higher than US$150 We can expect the unions to expressdissatisfaction whatever the amount but only time will tell if they willreject the offer outright and call for a resumption of demonstrationsand similarly whether or not CNRP will get involved For the complete report click here
Cascade Asia Advisors is a boutique advisory firm focused onSoutheast Asia We exist to help level the playing field for foreignmultinationals operating in challenging and opaque markets in theregion
Footwear Import Data
With the government recently reporting newdata FDRA has produced its monthly FootwearImport Data Report
You can access July 2014 data here
If you dont know your user name and passwordplease email Andy Polk
Forward email
This email was sent to apolkfdraorg by apolkfdraorg | Update ProfileEmail Address | Rapid removal with SafeUnsubscribetrade | Privacy Policy
FDRA | 1319 F Street NW | Suite 700 | Washington | DC | 20004
THIS IS A TEST EMAIL ONLYThis email was sent by the author for the sole purpose of testing a draft message If you believe you havereceived the message in error please contact the author by replying to this message Constant Contacttakes reports of abuse very seriously If you wish to report abuse please forward this message toabuseconstantcontactcom
Footwear Import Program
On September 19th FDRA met with senior officials from the MexicanEmbassy regarding recently announced changes to the treatment offootwear imports FDRA President Matt Priest communicated thesignificant concerns of FDRA regarding these measures which willlimit ports of entry require importers to register prior to importationand create a price reference system
The Mexican Embassy Officials stated that the new highly restrictivepolicies are primarily aimed at combating undervalued andcounterfeit imports from Asia The stated goal of the program is tonot damage Mexicos footwear market but rather create trustedimporters that can continue to access the market More specificallythe goal to prevent imports of counterfeit and undervalued footwearwas the driving force behind the establishment of the importerregistry
Unfortunately technical details remain scarce The Mexican Officialsconfirmed that many of the specifics of the new policy have yet to bedetermined FDRA will continue to work with the MexicanGovernment in Washington and Mexico City on the development ofthe program in order to lessen the damage the program has on FDRAcompanies and will alert members as details are released
As previously reported the rules due to be implemented starting inSeptember will be fully in force by October 2014 The new footwearregime appears to make importation into the Mexican marketsignificantly harder and will create additional costs for anycompanies looking to continue to import into the market Mexico hasannounced it will
Suspend phase out for duties on imported footwear Accordingto the announcement all footwear will now be subject to a 25-30 ad valorem rate based on the customs value Theannouncement does not specify whether FTA partners willexcluded from this measure Reestablish a price reference system for footwear Importersthat bring in footwear that is priced under Mexicos referenceprice will be required to pay a guarantee of the differencebetween the reference price and declared priceImports will be restricted to 9 officially authorized point ofentry for footwear Laacutezaro Caacuterdenas Manzanillo MeacutexicoGuadalajara Veracruz Tijuana Aeropuerto Internacional de laCiudad de Meacutexico Ciudad Hidalgo and Nuevo LaredoCompanies will need to register as footwear importersAll importers must prenotify 5 days prior to any shipmentNotifications must include invoices shipping documents andproof of insurance so the government can evaluate whetherthe prices are undervaluedAll shipments will be subject to inspections by MexicanCustoms upon importation and can also be subject to auditsafter importationThe tariff classification for use by Mexican Customs will shiftfrom an 8 to 10-digit HTS levelThe Mexican footwear industry will be working with Customsat points of entry
Online Compliance Training - FDRA-U
FDRA recently launched its online University free to FDRA memberswith courses focused on helping train on compliance issues To datemore than 17 compliance directors are signed up for the firstbatch of classes and are testing it out Those who find it valuable willbe able to sign up their factory reps and have them take the coursesfor free The system is set up so you can monitor who is taking thecourses and if they finished - ensuring their factories are workingtowards continuous improvement
If you would like to sign up to test drive FDRA-U please letAndy Polk know For more information on FDRA-U pleaseclick here
Cambodia Labor Alert - By Cascade Asia
Days before Cambodias Labor Advisory Council (LAC) reconvenes onSeptember 26 for its final round of 2015 wage negotiationsthousands of footwear and garment workers around Phnom Penhraised the stakes by demanding a monthly minimum wage ofUS$177 The peaceful lunchtime demonstration on September 17preceded 10 months of fervent sometimes violent campaigning fora minimum wage increase to US$160 a month now set at US$100Unions vowed that the US$177campaign would be spread tofactories nationwide and wouldcontinue during lunch time breaksthrough the end of Pchum Ben Festival (Ancestors Day) on October14 Representatives from eight major European fashion brands whosource from Cambodia responded on September 18 with aletter to Cambodian Deputy Prime Ministerpledging to pay higher prices for goods from Cambodia in exchangefor productivity and efficiency gains The LAC-comprised of representatives from the government laborunions and employers-may release a verdict as quickly as September27 though a final decision is more likely to be made in early October Cascade Asia Analysis
Despite calls for US$177 the general momentum of the labormovement has cooled substantially Conspicuously removed from thewage rallies during the past months including the most recentdemonstrations is the opposition the Cambodia National RescueParty (CNRP) The initial impetus for the wage movement in late2013 sprang from a combination of CNRP unrest over election resultsand worker furor over the glaring disparity between present pay andthe government committees suggestion of a US$160 minimummonthly wage As the former catalyst found recent resolution thelatter has failed to mobilize workers without the backing andresources of the CNRP As a result thelunch time demonstrations are more benign than previous techniquesrecently used by unions in Cambodia Production does not appear tobe threatened particularly as participation has waned
The most immediate threat to labor continuity in Cambodia over thenext month will be when the results of the LACs decision are madepublic There is virtually no chance that the council will agree uponan amount higher than US$150 We can expect the unions to expressdissatisfaction whatever the amount but only time will tell if they willreject the offer outright and call for a resumption of demonstrationsand similarly whether or not CNRP will get involved For the complete report click here
Cascade Asia Advisors is a boutique advisory firm focused onSoutheast Asia We exist to help level the playing field for foreignmultinationals operating in challenging and opaque markets in theregion
Footwear Import Data
With the government recently reporting newdata FDRA has produced its monthly FootwearImport Data Report
You can access July 2014 data here
If you dont know your user name and passwordplease email Andy Polk
Forward email
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THIS IS A TEST EMAIL ONLYThis email was sent by the author for the sole purpose of testing a draft message If you believe you havereceived the message in error please contact the author by replying to this message Constant Contacttakes reports of abuse very seriously If you wish to report abuse please forward this message toabuseconstantcontactcom
FDRA recently launched its online University free to FDRA memberswith courses focused on helping train on compliance issues To datemore than 17 compliance directors are signed up for the firstbatch of classes and are testing it out Those who find it valuable willbe able to sign up their factory reps and have them take the coursesfor free The system is set up so you can monitor who is taking thecourses and if they finished - ensuring their factories are workingtowards continuous improvement
If you would like to sign up to test drive FDRA-U please letAndy Polk know For more information on FDRA-U pleaseclick here
Cambodia Labor Alert - By Cascade Asia
Days before Cambodias Labor Advisory Council (LAC) reconvenes onSeptember 26 for its final round of 2015 wage negotiationsthousands of footwear and garment workers around Phnom Penhraised the stakes by demanding a monthly minimum wage ofUS$177 The peaceful lunchtime demonstration on September 17preceded 10 months of fervent sometimes violent campaigning fora minimum wage increase to US$160 a month now set at US$100Unions vowed that the US$177campaign would be spread tofactories nationwide and wouldcontinue during lunch time breaksthrough the end of Pchum Ben Festival (Ancestors Day) on October14 Representatives from eight major European fashion brands whosource from Cambodia responded on September 18 with aletter to Cambodian Deputy Prime Ministerpledging to pay higher prices for goods from Cambodia in exchangefor productivity and efficiency gains The LAC-comprised of representatives from the government laborunions and employers-may release a verdict as quickly as September27 though a final decision is more likely to be made in early October Cascade Asia Analysis
Despite calls for US$177 the general momentum of the labormovement has cooled substantially Conspicuously removed from thewage rallies during the past months including the most recentdemonstrations is the opposition the Cambodia National RescueParty (CNRP) The initial impetus for the wage movement in late2013 sprang from a combination of CNRP unrest over election resultsand worker furor over the glaring disparity between present pay andthe government committees suggestion of a US$160 minimummonthly wage As the former catalyst found recent resolution thelatter has failed to mobilize workers without the backing andresources of the CNRP As a result thelunch time demonstrations are more benign than previous techniquesrecently used by unions in Cambodia Production does not appear tobe threatened particularly as participation has waned
The most immediate threat to labor continuity in Cambodia over thenext month will be when the results of the LACs decision are madepublic There is virtually no chance that the council will agree uponan amount higher than US$150 We can expect the unions to expressdissatisfaction whatever the amount but only time will tell if they willreject the offer outright and call for a resumption of demonstrationsand similarly whether or not CNRP will get involved For the complete report click here
Cascade Asia Advisors is a boutique advisory firm focused onSoutheast Asia We exist to help level the playing field for foreignmultinationals operating in challenging and opaque markets in theregion
Footwear Import Data
With the government recently reporting newdata FDRA has produced its monthly FootwearImport Data Report
You can access July 2014 data here
If you dont know your user name and passwordplease email Andy Polk
Forward email
This email was sent to apolkfdraorg by apolkfdraorg | Update ProfileEmail Address | Rapid removal with SafeUnsubscribetrade | Privacy Policy
FDRA | 1319 F Street NW | Suite 700 | Washington | DC | 20004
THIS IS A TEST EMAIL ONLYThis email was sent by the author for the sole purpose of testing a draft message If you believe you havereceived the message in error please contact the author by replying to this message Constant Contacttakes reports of abuse very seriously If you wish to report abuse please forward this message toabuseconstantcontactcom
The most immediate threat to labor continuity in Cambodia over thenext month will be when the results of the LACs decision are madepublic There is virtually no chance that the council will agree uponan amount higher than US$150 We can expect the unions to expressdissatisfaction whatever the amount but only time will tell if they willreject the offer outright and call for a resumption of demonstrationsand similarly whether or not CNRP will get involved For the complete report click here
Cascade Asia Advisors is a boutique advisory firm focused onSoutheast Asia We exist to help level the playing field for foreignmultinationals operating in challenging and opaque markets in theregion
Footwear Import Data
With the government recently reporting newdata FDRA has produced its monthly FootwearImport Data Report
You can access July 2014 data here
If you dont know your user name and passwordplease email Andy Polk
Forward email
This email was sent to apolkfdraorg by apolkfdraorg | Update ProfileEmail Address | Rapid removal with SafeUnsubscribetrade | Privacy Policy
FDRA | 1319 F Street NW | Suite 700 | Washington | DC | 20004
THIS IS A TEST EMAIL ONLYThis email was sent by the author for the sole purpose of testing a draft message If you believe you havereceived the message in error please contact the author by replying to this message Constant Contacttakes reports of abuse very seriously If you wish to report abuse please forward this message toabuseconstantcontactcom
