From Washington

China Tariffs: Tranche 3 Exclusion Process Now Open, First Travel Goods Petitions Rejected as # of Petitions Grow, Process Closes September 30

China Tariffs: Tranche 3 Exclusion Process Now Open, First Travel Goods Petitions Rejected as # of Petitions Grow, Process Closes September 30

On June 30, the U.S. government opened the portal to request exclusions (details, web portal) from Tranche 3 tariffs, including the 25% tariffs on travel goods. As of August 14, 20 companies have filed a combined 81 petitions requesting exclusions for certain types of travel goods (out of a total 6,852 petitions filed to date). Please go to the TGA/AAFA July 2 webinar on the exclusion process for more details (letter to USTR, webinar recording).There will be a 14-day period, once a petition is live on the portal, during which the public can file a response (in opposition or in support). That means your company can file responses in support. For example, some travel goods petitions were filed on August 14, which means the 14-day response period for those petitions closes August 28. On August 2, the Office of the U.S. Trade Representative (USTR) announced that it had granted exclusions for 15 petitions; none were in the travel goods space. USTR has also denied 94 petitions to date, including 12 in the travel goods space. None of the denied petitions had responses in support of the petition. Regrettably, two of them were denied even though there was no opposition. Further, many were denied not because there was U.S. production but because of production in another third country, which appears to undermine the stated purpose of the exclusion process. Nevertheless, TGA strongly encourages interested companies to continue to file their own petitions and/or SUPPORT existing petitions by filing responses in support of the petitions we file. The deadline to file petitions is September 30.

China Tariffs: Trump Announces Details of Tranche 4 Tariffs – Industry Hit Again on Luggage Locks, Travel Clocks, Watches but Some Tariffs Delayed Until December 15

China Tariffs: Trump Announces Details of Tranche 4 Tariffs – Industry Hit Again on Luggage Locks, Travel Clocks, Watches but Some Tariffs Delayed Until December 15

On Tuesday, the Office of the U.S. Trade Representative announced details on the next tranche of punitive tariffs against U.S. imports from China. According to the announcement, U.S. imports of luggage locks from China entering the U.S. on or after December 15, 2019 will be subject to a 10% punitive tariff. U.S. imports of travel clocks and watches from China, depending on the type of clock or watch, will either be hit with 10% punitive tariffs either on September 1 or December 15, 2019.

China Tariffs – Tranche 3 Exclusion Process Now Open, Volume of Travel Goods Petitions Grows, Process Closes September 30

China Tariffs – Tranche 3 Exclusion Process Now Open, Volume of Travel Goods Petitions Grows, Process Closes September 30

On June 30, the U.S. government opened the portal to request exclusions (details, web portal) from Tranche 3 tariffs, including the 25% tariffs on travel goods. As of August 6, 19 companies have filed a combined 59 petitions requesting exclusions for certain types of travel goods (out of a total 4,141 petitions). Please go to the TGA/AAFA July 2 webinar for details on how the exclusion process works (letter to USTR, webinar recording). There will be a 14-day period, once a petition is live on the portal, during which the public can file a response (in opposition or in support). That means your company can file responses in support. For example, some travel goods petitions were filed on July 31, which means the 14-day response period for those petitions closes August 14. On August 2, the Office of the U.S. Trade Representative (USTR) announced that it had granted exclusions for 15 petitions. Regrettably, none were in the travel goods space. The deadline to file petitions is September 30. TGA strongly encourages interested companies to file their own petitions and/or support existing petitions by filing responses.

U.S. Travel Goods Industry Faces More California Prop 65 Notices; TGA Prop 65 Best Practices Guidance

U.S. Travel Goods Industry Faces More California Prop 65 Notices; TGA Prop 65 Best Practices Guidance

In the last two months, new California Proposition 65 (Prop 65) “60-day” notices have been issued alleging that brands and retailers sold totes (Notice 1, Notice 2, Notice 3), stadium bags (Notice 1), duffel bags (Notice 1), passport holders (Notice 1), luggage tags (Notice 1), handbags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7, Notice 8, Notice 9, Notice 10, Notice 11, Notice 12, Notice 13, Notice 14, Notice 15, Notice 16, Notice 17, Notice 18, Notice 19, Notice 20, Notice 21, Notice 22, Notice 23, Notice 24), wallets (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6), backpacks (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7, Notice 8, Notice 9, Notice 10, Notice 11), cosmetic bags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7, Notice 8), travel cases (Notice 1), travel pillows (Notice 1), phone/tablet cases/holders/sleeves/dry bags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7), fanny packs (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6), and travel kits (Notice 1, Notice 2, Notice 3) in California that contained di (2-ethylhexyl) phthalate (DEHP), Di-n-butyl phthalate (DBP), and/or diisononyl phthalate (DINP) in violation of a California law known as Proposition 65 (Prop 65). The notices serve as intent to bring lawsuits against that made and sold these products. Check out TGA’s California Proposition 65 (Prop 65) Best Practices Guidance. This member-only guidance details best practices in developing your company’s Prop 65 testing and warning label protocol, including recommendations on which warning label text to use, where to place the warning label text, and how to test for Prop 65 listed chemicals in your products. For more information on Prop 65, please go to the Prop 65 page on the TGA website or contact TGA’s Nate Herman, nate@travel-goods.org, 202-853-9351.