U.S. Travel Goods Imports Fall in First 8 Months of 2020 with Imports from China Way Down
On October 6, the U.S. government published import data for August 2020. U.S. Travel Goods Imports (as described under HTS Heading 4202 – click links to get specific import data on luggage, backpacks, flatgoods, handbags, business cases/laptop bags, and travel bags) slid 23.2% (by volume) in the first eight months of 2020. In addition to the obvious impact of COVID-19 on the industry, the latest import numbers show the accelerating trend away from China. In the first eight months of 2020, U.S. travel goods imports from China fell 37.4%, with China accounting for only 58.3% of total U.S. travel goods imports. For comparison, in 2016, China accounted for 84.7% of all U.S. travel goods imports. Meanwhile, despite the pandemic, U.S. travel goods imports from #2 supplier Vietnam (16.4%), #3 Cambodia (30.7%), #4 Burma (Myanmar) (152.4%), and #8 Mexico (10.4%) surged in the first eight months of 2020. In fact, U.S. travel goods imports from Vietnam now account for 18.4% of all U.S. travel goods imports, followed by #3 Cambodia (7.8%), #4 Burma (Myanmar) (3.7%), #5 India (3.2%), and #6 Indonesia (1.5%). U.S. imports of travel goods account for approximately 99% of the U.S. travel goods market.
TGA Urges Congressional Leaders to Reach Stimulus Deal Before Election
On September 30, TGA joined dozens of other industries in urging Congressional leaders to strike a deal on a new stimulus deal that is critical to sustain the ongoing economic recovery and provide critical assistance for our industry. TGA had previously detailed its priorities for any stimulus package.
XPCC Sanctions Delayed
On September 25, the U.S. Treasury Department announced that it delayed the wind-down deadline for its sanctions on the Xinjiang Production & Construction Corps (XPCC) until November 30, 2020. The original deadline was yesterday (Wednesday, Sept. 30). TGA helped lead the effort to delay the sanctions deadline because of the due diligence needed to determine the scope of and potential nexus with XPCC subsidiaries. Note: The wind-down deadline only applies to XPCC subsidiaries; all financial transactions with XPCC itself should have ended July 31, 2020.
Proposed MTB Legislation Could Offer Duty-Free Access for Dozens of Travel Goods Items
Last month, the U.S. International Trade Commission (USITC) submitted its final report on miscellaneous tariff bill (MTB) petitions it received under the 2016 American Manufacturing Competitiveness Act (AMCA) to Congress. The final report recommends a few dozen travel goods items in MTB legislation that Congress will consider this fall. If approved, the legislation would provide U.S. imports of certain travel goods, and hundreds of other products, temporary duty-free access, no matter the source country. TGA will actively push Congress for passage of the MTB legislation.
U.S. Travel Goods Industry Faces More California Prop 65 Notices; TGA Prop 65 Best Practices Guidance
Over the last few months, dozens of 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, Notice 4, Notice 5, Notice 6, Notice 7, Notice 8), luggage tags (Notice 1, Notice 2), crossbody bags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7, Notice 8), passport/ID/card holders (Notice 1, Notice 2, Notice 3, Notice 4), 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), wallets (Notice 1, Notice 2, Notice 3), backpacks (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7), cosmetic/toiletry bags (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), travel/garment cases/bags (Notice 1, Notice 2), phone/tablet cases/holders/sleeves/dry bags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5), fanny packs (Notice 1), and travel kits (Notice 1) in California that contained di (2-ethylhexyl) phthalate (DEHP), Bisphenol A (BPA), 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 those that made and sold these products. Check out TGA’s member-only California Proposition 65 (Prop 65) Best Practices Guidance on the Prop 65 page on the TGA website at https://www.travel-goods.org. 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 contact TGA’s Nate Herman, firstname.lastname@example.org, 202-853-9351.