USFIA State of the Industry Virtual Town Hall for Members Hosted by United States Fashion Industry Association (USFIA) January 7, :00 P.M. Eastern/11:00 A.M. Pacific Todays Speakers Julia K. Hughes President U.S. Fashion Industry Association (USFIA) David Spooner USFIA Washington Counsel Barnes & Thornburg John Pellegrini USFIA Customs Counsel McGuireWoods LLP Anthony Tennariello Partner PwC Customs & International Trade Penny Ricas SVP, Global Account Management OHL Gary Barraco Director, Global Product Marketing Amber Road Do you have a question? During the webinar, all attendees will be assigned to listen- only mode. Please use the Questions box on your dashboard to ask a question during the webinar. First, a welcome from our chair Maureen Gray Vice President of International Trade at Ralph Lauren Corporation Chair of the United States Fashion Industry Association (USFIA) CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. The State of the Union: The 2016 Trade Policy Agenda David M. Spooner Barnes & Thornburg, Washington, D.C CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. Agenda: Capitol Hill. The Administrations Trade Initiatives. CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP Predictions: How Accurate Were We? CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP A trade bill will move. Bill will include: TPA, AGOA, GSP, TAA. Bill may Include: Currency provision, Customs reauthorization, Sen. Sherrod Brown (D-OH) trade remedy reform bill, Nicaragua apparel provision, MTB renewal. CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP TPP unlikely. Customs legislation likely. Renewal of MTB legislation unlikely. CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. Customs Legislation The legislation: Reauthorizes CBP, Creates new trade preferences for Nepal, Corrects outerwear tariff increases, and Strengthens enforcement for IP violations. House passed in mid-December. Senate failed to act (though, in another bill, postponed outerwear tariff increases until June). Stuck over internet sales tax issue. CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. This agreement is not perfect, and there are some principled objections, so NAM will continue to work closely with its members to address remaining barriers, to raise standards, to promote the rule of law and to further level the playing field for all. Importantly, we encourage the administration to work closely with the industry, congressional leaders and the other TPP governments to address these key issues. No trade agreement is perfect, and the TPP is no exception. However, the benefits of a trade agreement lie in how it is interpreted, implemented, and enforced. With that in mind, were rolling up our sleeves to work with the administration, Congress. CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. TPP certainly shouldnt come before the election. I think the president would be making a big mistake to try to have that voted on during the election. Theres significant pushback all over the place. The next president, whoever that is, will have the authority to either revisit this one, if it doesnt pass. -- Senate Majority Leader Mitch McConnell, 12/10/15 CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. The TPP is horrible deal. It is a deal that is going to lead to nothing but trouble. It's a deal that was designed for China to come in, as they always do, through the back door and totally take advantage of everyone. This is one of the worst trade deals. And I would, yes, rather not have it. -- Donald Trump, 11/10/15 CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. I voted against TPA, and I intend to vote against TPP. -- Ted Cruz, 11/20/15 CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. I know there is political risk in supporting free trade. TPP is President Obamas biggest trade initiative. I know some political constituencies in my own political party dont favor it. But I agree with what Hillary Clinton said about TPP in 2012: This is a great deal for America. -- Jeb Bush, 4/22/15 CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. "As of today, I am not in favor of what I have learned about it [the TPP]. I dont believe its going to meet the high bar I have set. -- Hillary Clinton, 10/8/15 CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. The Executive Branch: Trade Negotiations Transatlantic Trade and Investment Partnership (TTIP) CONFIDENTIAL 2014 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is confidential, proprietary and the property of Barnes & Thornburg LLP, which may not be disseminated or disclosed to any person or entity other than the intended recipient(s), and may not be reproduced, in any form, without the express written consent of the author or presenter. The information on this page is intended for informational purposes only and shall not be construed as legal advice or a legal opinion of Barnes & Thornburg LLP. Issue to Watch: China NME Status Does Chinas WTO accession agreement require WTO members to treat China as a market economy beginning in December 2016? USFIA STATE OF THE INDUSTRY Customs Update JANUARY 7, 2016 McGuireWoods | 22 CONFIDENTIAL Effective December 16, 2016 Authority for Most Post-Entry Activities Shared with Port Protests may be Filed with CEE CEE has no Authority as to F,P&F and Drawback Influence vs Authority AFT CEE EXPANSION McGuireWoods | 23 CONFIDENTIAL FTC Enforcement Bamboo may not be used to Describe a Fabric unless it is what is know as Mechanically Processed Bamboo Otherwise, you have Rayon BAMBOO McGuireWoods | 24 CONFIDENTIAL Settlement Jeans Litigation Second Case Proceeding Changes is California Law MADE IN USA McGuireWoods | 25 CONFIDENTIAL Deemed Liquidated Recreational Performance Outerwear Nitek Penalty Decision One Entry One Protest Metallic Yarn No Decision Likely Anytime Soon MISCELLANEOUS PricewaterhouseCoopers USFIA Premier Partner Anthony Tennariello Partner PwC Customs & International Trade OHL International USFIA Customs Broker Partner Penny Ricas SVP, Global Account Management OHL 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential. The Global Outlook on Global Trade Management Gary M. Barraco Director, Global Product Marketing January 2016 29 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential. The Definition GTM solutions streamline and automate processes related to sourcing and commercialization of products, customs and regulatory compliance, global logistics, and trade financing. By doing so, GTM solutions facilitate the flow of information, money, and goods in global trade supply chains that include buyers, sellers, and intermediaries, including customs agencies, banks, and freight forwarders. 30 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential. Three Categories in GTM Global Sourcing Regulatory Trade Compliance International Execution & Visibility 31 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential. Top 10 Drivers for Complexity of global trade 2.Preferential trade agreements 3.Duty cost savings 4.Terrorism and risk still looms 5.Increasing government regulations 6.ACE compliance 7.eCommerce growth rates 8.Consolidation of data 9.Lack of skilled labor 10.Technology grows exponentially leading to growth because of technology Questions? Please use the Questions box on your dashboard on the right side of your screen. You can also ask a question after the webinar. Phone: