Friday, November 4, 2005

HISTORICAL HOSIERY HAPPENING:
November 4, 1925 – Federal Trade Commission Approves “Rayon”
The Federal Trade Commission, by an official resolution, had placed the stamp of its approval on the use of “Rayon” as properly designating artificial silk products, the basis and chief ingredient of which is cellulose. … The word “Rayon” had been adopted by many associations of manufacturers as a proper one for artificial silk products and the term had been extensively advertised to the public. The Commission, therefore, believed that both the trade and the public had accepted and recognized the word “Rayon” as being applied to artificial silk or a substitute for silk, passed a formal resolution in which the term “Rayon” is accepted as a proper designation for artificial silk products.

NEED EMPLOYEE HOLIDAY GIFT IDEAS? Give them a unique piece of hosiery history.
Whether it’s employee gifts or those who were involved with the hosiery industry, learn more about the exciting events that have transpired in the hosiery industry in the last 100 years. Purchase copies of The Hosiery Association Centennial: In Step With The Industry For 100 Years. This is the only commemorative publication that captures the Association’s 100-year history of leaders, events, programs and services. Information on how to order is available on our web site. There are a limited number of copies available so they will be sold on a first-come, first-served basis. Act promptly as orders are being filled weekly. These make unique gifts and are only available through THA. Requests to have the author, Sally Kay, sign your copy are also being taken via the order form. Visit www.hosieryassociation.com or contact THA staff at 704-365-0913 to obtain your history book order form.

Hosiery 101 & 102 Courses will be offered again at the Hosiery Technology Center in Hickory, NC NEXT Wednesday & Thursday, November 9 & 10. For further information, visit www.legsource.com. Classes cost $60 each.

THA Credit Group Meeting: The next meeting of the Credit Group will be on Thursday, November 17 and will be held at the Lyon Credit Services office in Charlotte, NC. For information about this group, contact Jeanna Sheldon, staff liaison, at 704-365-0913 ext 203.

AL Chapter Monthly Luncheon: The next luncheon meeting for the Alabaman Chapter will be on Thursday, November 17 at the Western Sizzlin’ in Fort Payne, AL. Stay tuned for program information as it becomes available. FRONTIER SPINNING MILLS will be the sponsor of this meeting, and a special Thank You goes out to them.

THA Industry Executive Summit/Board Meeting will be held November 17-18 in Charlotte, NC. As THA officially turns 100, Marshal Cohen, chief industry analyst for the NPD Group and one of the leading business strategists will conduct a thought provoking, challenging planning session for hosiery industry executives. This invitation only event will offer its participants an exclusive setting to share industry concerns and network with their peers. The Board of Directors meeting will follow the leadership summit. Seating is limited for this session. Please contact Sally Kay at 704-365-0913, ext. 212 sally.kay@hosieryassociation.com if you are not on the THA Board and would like to attend.

CHA’s 47th Annual Meeting will take place on Thursday, December 1 at The Sawtooth Building in Winston-Salem, NC. The program will feature a panel of hosiery company CEO’s that will share their insight as to what is keeping them competitive in today’s business environment. Everyone is invited to attend this great networking opportunity…you don’t have to be a CHA member to participate. Registration information will soon be available on THA’s website. We would like to also thank UNIFI INC for again sponsoring this meeting!

2006 CHA Luncheon Sponsorship opportunities are still available. If your company is interested in sponsoring any of the 2006 CHA luncheons, please contact Mike Austell at 704-365-0913 ext 204. Call early before all dates are taken. All luncheons are held on the 4th Thursday of the month and alternate between Hickory (Jan, Mar, May & Sept) and Greensboro (Feb, Apr, Aug & Oct).

AL & TN Chapters Christmas Party will be held at The Chattanoogan in Chattanooga, TN on Friday, December 9. Additional information on this event will be forthcoming.

THA’s 101st Annual Convention- April 27-30, 2006 at Desoto Hilton in Savannah, Ga.

CORRECTION: John Moretz of Moretz Sports and Kathy Ireland announced that Kathy IrelandTM Socks® shipped their 100,000,000th pair of socks during last week’s fashion show and gala in Conover, NC.

National Textile & Apparel Team Office of Textiles & Apparel, USDOC PIEDMONT TRIAD CHAPTER - NCWTA USDOC EXPORT ASSISTANCE CENTER - GREENSBORO PRESENT CAFTA-DR & CHINA SAFEGUARDS TUESDAY , NOVEMBER 15th - GREENSBORO HIGH-POINT MARRIOTT HOTEL: The hotly debated FTA, covering Central America and Dominican Republic, has been signed into law. Are you fully up to speed and in compliance with CAFTA requirements - avoiding possible penalties and profit threatening duty payments? Or, are you missing out on the opportunity altogether because of the complexities of qualifying your goods? Do you want to be current on the status on on-going consultations with the Chinese relative to a broad agreement with China on textile quota issues?

Join us, along with Deputy Assistant Secretary for Textiles and Apparel Jim Leonard, Customs Attorney Jon Fee, Dr. Nancy Cassill, College of Textiles - NC State University, Sally Kay, President, The Hosiery Association and Mike Hubbard, Vice President, National Council of Textile Organizations for a comprehensive conference in order to take full advantage of these issues. US Commercial Industry Speciliasts from the CAFTA/DR countries will be available during the event. To arrange an appointment with the CAFTA/DR specialists, contact George Thomas @ 704-333-4886, ext. 223 or email: george.thomas@mail.doc.gov. GO TO: http://www.ncwta-triad.org/cafta-dr.php for details and registration form.

Nilit America Corp. Names Donna Hill As Merchandising and Sales Manager: Nilit Ltd., the Israeli-based global manufacturer of nylon 6.6 fibers, announced that Donna Hill has been named merchandising and sales manager, effective immediately. She will report directly to Karen Johnson, president, Nilit America. In her new role, Ms. Hill will be responsible for working closely with customers in developing new and existing programs, building the Nilit Sensil brand, and further developing Nilit’s business in the United States.

Wal-Mart Executive to Become CEO of Japanese Retailer Seiyu: A Wal-Mart executive will take the helm of Seiyu Ltd., a Japanese retailer set to become a subsidiary of the U.S. chain in December. Seiyu announced that Ed Kolodzieski, senior vice president and chief operating officer of Wal-Mart International, would become its new chief executive on Dec. 15 upon shareholder approval. Kolodzieski, who has been a Seiyu board member since 2004, replaces Noriyuki Watanabe, who stays on as chairman. Since arriving in Japan in 2002, Wal-Mart Stores Inc., the world's biggest retailer, has been gradually raising its stake in Tokyo-based Seiyu, the nation's fifth-largest chain with more than 400 stores.

Celebrities Help Wal-Mart for Holidays: For the first time the retailer has recruited celebrities such as Garth Brooks and Destiny's Child to appear in holiday television and print ads. Wal-Mart Stores Inc. started its holiday campaign Tuesday, the first time the world's largest retailer has run ads this early in the season, company officials said. Celebrities in the ad campaign also will include Martina McBride, Jesse McCartney and Queen Latifah. The ads feature celebrities at their own homes to fit with the theme, "Home for the Holidays."

Costco Wholesale Corporation Reports October Sales Results: Costco Wholesale Corporation reported net sales of $4.26 billion for the four weeks ended October 30, 2005, an increase of 12% from $3.79 billion in the same four-week period of the prior fiscal year.

Target Store Project to Receive Tax Incentives: Construction of a Target store in Irondequoit was one of five local investment projects to receive approval for county tax incentives Tuesday. The County of Monroe Industrial Development Agency approved up to $100,000 in tax breaks for Target Corp. to build a $12.8 million, 127,000-square-foot store at the Medley Centre in Irondequoit. The store will be the Minneapolis-based retailer's sixth location in the area.

HANES-SENSATIONAL QUOTIENT (to expand presence across the country): Sara Lee Apparel (India) has established a national distribution network after its successful TV commercial for the Hanes brand in Dec 2004. The company is now looking to expand its presence across the country. The concept of Original Tagless Comfort is the USP of the Hanes brand. Sara Lee Corporation of Chicago globally owns the Hanes innerwear brand for men, women, and children. In India, the brand is targeted only at men with premium products in the categories of casual-wear, thermals, and socks.

Former PepsiCo Head Takes Over Sara Lee: Last week Brenda Barnes became chairman of Sara Lee Corp., the nation's 104th largest company in a planned succession. Named president and chief executive in February, Barnes is leading the company through a restructuring that could solidify her position as a marketing whiz. She intends to restore Sara Lee's reputation as the company "nobody doesn't like" by focusing on its bread, cakes and beverages, while unloading the bras, pantyhose and other apparel lines it has marketed under dozens of brands. The divestments are part of the company's shift to a returning to its roots as a food company. Sara Lee, which was known as Consolidated Foods Corp. until 1985, once was the owner of Eagle Food stores, Michigan Fruit Canners and Coach leather goods. The Coach brand was spun off four years ago.

Retail Highlights: According to Merrill Lynch, estimated October same-store sales will be flat vs. a 7.5% increase last year. After September struggled October improved but is up against an outstanding performance last year. Gas prices have moderated some and cooler weather, fall clearance sales and new holiday merchandise should have helped drive better sales this month.
Traffic levels increased mid-month as the weather cooled in key NE/MW markets. According to Planalytics weather driven demand is estimated down 3% this October, but the cold snap at the end of the month should have triggered better demand for wear now merchandise. Markdowns got aggressive at select retailers as they attempted to clear out fall product in an effort to enter the holiday season clean. Holiday collections are in the mall. At this point, the focus is less on gifting and more on self purchase. Despite some pick up at the mall, negative news flow about Holiday 2005 has begun and will likely continue through the season.

Socks Appeal No Doubt: Did you know that there are 130 million Americans and they all wear socks? The vast majority prefer to wear two and like them to MATCH.

Tyra Banks Hides But She’s Not Sleek: Tyra Banks has gone undercover as a 350-pound woman. Banks wore the fat suit to experience what it's like to be obese. ”It seemed like the last form of open discrimination that's OK, and I decided to put on a 350-pound suit myself and live that life for a day and see what happens," the 31-year-old former supermodel told AP Radio in a recent interview. "And it was one of the most heartbreaking days of my life."

Domestic Sock Manufacturers Welcome Limitations of Chinese Imports: Members of the USA Domestic Manufacturers Committee (DMC) appreciate the recent action taken by the federal government to re-impose a two month limit on the surging imports of subsidized socks from China. According to DMC Chairman Charles Cole, sock imports will be limited to approximately 10.3 million dozen pair until January 1, 2006. Please visit the THA website, www.hosieryassociation.com for the complete press release.

ILO Asked to Coordinate Global Response to Textile Quota Phase-out Impact on Jobs: The International Labor Organization (ILO) reports that at a recent meeting in Geneva, business, labor, and government leaders representing the textile and apparel sector urged it to coordinate a global social response to the phase-out of textile and apparel quotas. The meeting marked the first time government, worker, and employer representatives have gathered to discuss the phase-out and propose measures for dealing with its impact on jobs, enterprises, and the global textile and clothing supply chain.

US, China Resume Textile Talks: International Trade Daily reported this week that US and Chinese officials are meeting in Washington this week to continue negotiations toward a bilateral textile trade agreement. The two sides had been thought likely to conclude an agreement during the last round of discussions in mid-October in Beijing, but they were unable to bridge their differences on quota growth rates and other issues.

US, Dominican Republic Sign Customs Assistance Pact: The US signed a Customs Mutual Assistance Agreement (CMAA) with the Dominican Republic this week. According to US Customs and Border Protection (CBP), the CMAA will enhance the two countries’ ability to enforce customs laws by allowing them to exchange information, intelligence, and documents. The agreement will also provide a basis for cooperation and investigation in the areas of trade fraud, money laundering, smuggling, export controls, and related security. CBP now has CMAAs in place with 57 separate customs administrations.

South Africa Decides Against China Textile Safeguards: Bloomberg reports that South Africa has decided not to impose safeguard quotas against surging textile and apparel imports from China. Trade Minister Mandisi Mpahlwa said the government has been under “huge pressure” to restrict imports but is “not absolutely convinced that is the best thing to do” given the “totality of the relationship with China.” Mpahlwa said South Africa will consider other ways to bolster its domestic industry, including lower import duties on yarn and other raw materials.

USTR Portman Applauds Japan Regulatory Reforms: This week U.S. Trade Representative Rob Portman commended the economic reforms Japan is taking to open markets to U.S. exporters and to help promote growth in the Japanese economy. Detailed in this year’s annual report to President Bush and Prime Minister Koizumi under the U.S.-Japan Regulatory Reform and Competition Policy Initiative, the reforms include measures to expand market access in the mobile wireless sector, facilitate trade in fruits and vegetables, intensify bilateral cooperation on intellectual property rights protection and enforcement, and speed the delivery of innovative medical devices and drugs to the public. However, several trade problems persist, including Japan’s continuing ban on the import of U.S. beef; Portman commented that Japan’s steps forward this week towards reopening its beef market are important progress. In addition, the Report places a special focus on regulatory and market access issues related to medical devices and pharmaceuticals, which are of particular importance given Japan, will be making key decisions on reimbursement pricing in the coming months.

United States Designates New Qualifying Industrial Zone in Egypt: USTR has designated a new qualifying industrial zone (QIZ) in Egypt’s central delta region and approved the expansion of two existing QIZs in Cairo, Egypt, and the Suez Canal zone, opening the way for stronger economic ties among Egypt, Israel and the United States. Under the terms of the program, goods manufactured in Egyptian QIZs with inputs from Israel are granted duty-free access to the U.S. market. The first QIZs in Egypt were established on the basis of a December 2004 agreement among Egypt, Israel and the United States. The U.S. Congress first approved the QIZ program for Jordan and Egypt in 1996. Since then, 13 QIZs have been established in Jordan and three in Egypt.

CBP Delays Enforcement for New MID Requirements for Textile and Apparel Imports: CBP recently published interim amendments to the Customs Regulations relating to the country of origin of textile and apparel products. These amendments place new obligations on importers of such products that, if not complied with, may result in rejected entries and the assessment of monetary penalties. In particular, as of October 5, importers must identify the manufacturer whose processes confer country of origin on the article through the Manufacturer Identification Code (MID) required on the entry. However, CBP has announced a grace period until November 18 for enforcement of this requirement. During this period, CBP will not reject entries or assess penalties on brokers or importers for submitting incorrect MIDs. However, for all textile and apparel goods covered under 19 CFR 102.21(b)(5) and entered on or after November 19, CBP will fully enforce the requirements of this new regulation.

Ways and Means Approves Byrd Amendment Repeal: Last week the House Ways and Means Committee approved by a 22-17 vote legislation that includes a repeal of the Continued Dumping and Subsidy Offset Act (CDSOA), or Byrd Amendment, which directs US Customs and Border Protection (CBP) to distribute AD and CV duty revenues to domestic manufacturers. The law was ruled illegal by the WTO and the EU, Canada, Japan, and Mexico have imposed retaliatory sanctions against US exports as a result.

US, Andean Countries Could Conclude FTA Talks in November: Officials from the US and the three Andean countries with which it is currently negotiating a free trade agreement (FTA) said last week that they are hoping to conclude talks by the end of November but that there are a number of issues that remain unresolved, particularly agriculture and IPR. A US official, noting that the next formal round of negotiations will be held during the week of November 14, said that the two sides are hoping to finalize a deal before attentions are turned to the December WTO ministerial meeting and elections in Peru and Colombia next spring. An Ecuadorian official warned, however, that this timeframe may not be met unless Washington shows more flexibility on certain issues. The two sides have recently accelerated the pace of the talks, holding a series of informal meetings last week that covered issues such as rules of origin, textiles, market access, and IPR.

Saudi Arabia Gets WTO Go Ahead: Reuters reports that Saudi Arabia appears set to join the WTO in time for the organization’s ministerial meeting in Hong Kong this December after a working party approved its final accession agreement on Friday. The WTO General Council will likely approve the package on November 11 and the kingdom is expected to officially join 30 days later.

CITA Exempts Ski/Snowboard Pants from China Safeguard Quota: The Committee for the Implementation of Textile Agreements (CITA) has exempted ski and snowboard pants from the safeguard quota on manmade fiber trousers (category 647/648) from China. In addition, such pants are to be released from the current embargo on that category.This exemption applies to ski and snowboard pants classified in HTSUS 6203.43.3510, 6204.63.3010, 6210.40.5031, and 6210.50.5031 and trousers imported as parts of ski-suits classified in HTSUS 6211.20.1525 and 6211.20.1555. For the purposes of these subheadings, the term “ski/snowboard pants” means ankle-length pants made of synthetic fabrics, with or without insulation for cold weather protection, with zippered or hook and loop enclosed pockets, sealed seams and hidden elastic leg sleeves, and with one or more of the following: side openings; scuff guards; or reinforcement in the seat. A sealed seam is one that has been covered, on the backside of the fabric, with tape or a coating to “bridge” the seam so that air and water cannot pass through. The tape or coating may be applied using heat and/or pressure.

NRF Opposes Proposed Import Tax Recommendation: The National Retail Federation (NRF) recently sent a letter to President Bush opposing a proposed import tax that the President’s Advisory Panel on Tax Reform was expected to include in its package of recommendations to the Treasury Department. Under the proposal, US businesses would no longer be able to deduct the cost of imports from their taxes as a cost of doing business.

New Asia-Pacific Trade Pact Formed: Six countries agreed to rename the former Bangkok Agreement as the Asia-Pacific Trade Agreement (APTA) and provide each other with duty concessions on up to 4,000 tariff lines. China, India, South Korea, Sri Lanka, Bangladesh, and Laos say the duty preferences on agricultural, textile, and petrochemical products will be implemented on July 1, 2006. Signed in 1975, the Bangkok Agreement is Asia’s oldest preferential trade agreement and aims to promote intra-regional trade through an exchange of mutually-agreed concessions.

The contents printed in this document are informational in nature. They are gathered from various industry sources and do not necessarily reflect the views and/or actions of THA.

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