WASHINGTON — A proposed rule change by the U.S. Customs & Border Protection agency could force apparel and footwear importers to pay millions of dollars in additional duties on the products they make abroad and import back to the U.S. market.Apparel importer groups have formed a new coalition to oppose the switch.The rule at the center of the debate is known as the "First Sale Rule," which allows a company to determine the value of an imported finished product on the cost of the item at the point of the first sale in the supply chain — such as factory to wholesaler. The proposal would peg the final value to the point of importation, generally meaning the actual wholesale price.Customs calculates duties based on the value of a product and companies using the existing rule essentially pay lower duties because the value of the product is lower in the beginning of the supply chain process. Apparel importers shipped $96.5 billion worth of apparel and textiles to the U.S. for the year ended Nov. 30.Customs said in a Federal Register notice that it needed to bring its rules into compliance with a recent decision made by an international committee that provides information and advice to World Trade Organization members about the valuation of imported goods. Customs argued that most other WTO member countries determine the value of imported products based on the final price before importation. Kevin Burke, president and chief executive officer of the American Apparel & Footwear Association, which is spearheading the coalition, said it could increase apparel tariffs by as much as 15 percent."This will mean hundreds of millions of dollars for our industry and companies will have to increase the price of their products," said Burke. "Many of them will have to eat the cost and it will cut into their margins at a time when the cost of producing goods in Asia has gone up."Customs has set a 60-day public comment period before implementation. But Sandler, Travis & Rosenberg, a law firm representing importers, has filed a comment to Customs seeking an extension of 180 days for public comment.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim