The newest book on #fashion #law is officially out and I'm pleased to offer my Fashion Compliance friends a 20% discount when you buy direct from the publisher at http://www.bloomsbury.com with Promo Code: FASHIONLAW18
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It was a great day at the Urban Assembly School for Global Commerce where Deanna casually described the intersection between fashion compliance and international trade law to an awesome group of 10th graders!
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Highlight of the week: Being invited by the Council of Fashion Designers of America to joining Fashion Positive C2C, BIONIC YARN, Cradle to Cradle, and a room full of #sustainable #fashion thought makers to discuss #upcycling and creating regenerative products
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FREE SUSTAINABILITY CONFERENCE IN BROOKLYN, NY THIS WEEKEND
This weekend on Sat. March 28, 2015, the Pratt Institute's Center for Sustainable Design Strategies is offering a day long series of presentations, panel discussions and workshops that is free and open to the public.
Whether you are an established brand looking to branch out into having a sustainable fashion arm of the business, a growing brand that imports and is looking for better practices, or a sustainable fashion enthusiast, you'll be sure to walk away with something of interest from this conference.
Though free, registration is required and you can do it here: http://csds.pratt.edu/sustainability-crash-course-2015/
See you there, and if you spot me be sure to come over and say 'hi!'
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Celebrity-Worn Haute Couture Dresses Can’t Avoid Customs Duties
US Customs recently decided that no specialty provisions existed to avoid the payment of customs duties, or severely reduce them, on haute couture garments imported by Christian Dior Couture® (CDC). According to US Customs, a determination was sought acknowledging that the garments could either qualify
(a) for duty free treatment enter under an A.T.A. carnet as samples
(b) under a Temporary Importation Bond (TIB) as articles not for sale or sale on approval to be repaired, altered or processed, or
(c) for unused merchandise drawback.
Each of these types of treatment would have resulted in a preferred duty treatment.
The facts presented with respect to the use of the garments were as follows:
“Christian Dior Couture imports haute couture garments so that they may be furnished to celebrities at no cost to wear at high-profile events, such as the Academy Awards ceremony. The garments serve an important form of advertising for the company because they allow the company to increase its brand awareness and showcase the latest fashions and increase sales. Once entered into the United States, each piece is fitted to the particular person wearing the haute couture piece so that it may properly display the intended design. Such fittings include hemming, shortening, and/or otherwise altering for the measurements of the person displaying the piece. Only one of each piece will be imported. After exhibition at the event for which the piece was imported, the piece is returned to the company’s U.S. office, and shipped back to the company’s office in Paris, France. During this time, the company does not sell the garments, but retains ownership. The haute couture pieces generally spend no more than a week in the United States.”[1]
Despite these details, Customs claimed that while it did meet the test of being for purposes of soliciting orders, it also served to provide a celebrity with a garment to use to a high-profile event, which is precisely the environment that they are meant to be worn in and in the manner intended. These therefore, constituted a normal use of the garment, and when you factored in the reality that there was no intention of soliciting orders for the item while being worn, the haute couture did not qualify for entry under an A.T.A. Carnet.
As for qualifying under a TIB, CDC needed the garments to qualify as articles being repaired, altered or processed here in the US and for which would be exported within 1 year from the date of importation. From CDC’s description of the use of the garments however, it was clear to Customs that the main purpose for importation was something other than for an alteration, repair or processing, and for this reason, it didn’t qualify under a TIB.
Regarding drawback, to qualify for this the garments needed to be exported in the same condition as imported within 3 years from the date of importation, having not been used in the US. Customs reasoned however, that since the pieces of haute couture were furnished to celebrities for use at a high profile event, that the garments were in fact “used,” and therefore not eligible for duty drawback either. This is because Customs description of “use” turns on the article being “employed for the purpose for which it was built, which in this case, include[d] celebrities wearing and exhibiting the haute couture pieces at events.” [2]
While there is a special provision does allow women’s wearing apparel to enter duty free for purposes of soliciting orders, it cannot be removed from the importer's establishment for reproducing, copying, painting, sketching, or for any other use by others, nor be used in the importer's establishment for such purposes except by the importer or his employees.
[1] Customs ruling HQ H251771, 12/16/2014.
[2] Id. Citing HQ h240038 (6/16/14).
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Interested in a pro bono meeting our Deanna? We’re thrilled to announce that NYC has commissioned her to be their newest attorney focusing on#fashion law and international trade issues!
Call (347) 296-8025 to set up your free appointment today at the NYC Business Solutions Center at 9 Bond Street, 5th Flr, Brooklyn, NY and ask for Michelle McClymont. The service begins on Jan. 13, 2015 at 10 am.
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