“Made in the USA”? Not with that foreign zipper



US apparel companies beware.   A federal judge recently ruled, in the case of Paz v. AG Adriano Goldschmeid Inc. et al, that California’s “Made in the USA” labeling law is not pre-empted by federal apparel labeling laws and thus its rigorous standards for domestic labeling would apply in a class-action lawsuit alleging improper labeling.

As summed up by the law firm of Sandler, Travis & Rosenberg, P.A.,

U.S. apparel companies that use de minimis amounts of foreign-made components such as zippers or buttons in their garments were dealt a blow recently when a federal judge declined to throw out a class action lawsuit alleging that clothing labeled as “made in USA” is in violation of California’s strict false advertising law. The case will thus continue and could still result in settlements, damages or other expensive alternatives for affected companies.

This is not the first time that the California labeling law has been litigated.  See this Law360.com article about recent cases on this topic (site registration may be required).



New ACE functionality deployed

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As published in US Customs’ October 2014 ACE Monthly Trade update, CBP deployed new ACE functionality on October 18:

Cargo/Manifest/Entry Release Query

  • This query allows filers to request cargo, manifest and entry record status information that is on file in ACE

Export Manifest (Air Mode of Transportation)

  • This enhancement will provide for the filing and processing of Air Export Manifest transaction data in ACE. While technical capabilities have been deployed to production in ACE, this pilot has not yet been implemented. A Federal Register Notice on the initial pilot will be published in the near future.

Partner Government Agency (PGA) Message Set

  • CBP deployed capabilities to production to allow agencies to initiate additional PGA Message Set pilots with trade filers. Many of the PGAs have established working groups with trade representatives to identify requirements for these pilots.

Reminder:  Mandated use of certain ACE functionality will commence in May 2015 and mandated use of ACE for all trade processing will be required by October 2016.  Make sure now that your (or your broker’s) ABI software is ACE-certified to avoid any problems next year!