1. MADE-IN-USA DATABASE
a.- I am starting a business and would like to have my products made in the United States. How can OTEXA help me?
b.- Some of my products are made in the United States and some are made in other countries. Can I be listed in OTEXA’s Made-in-USA database?
2. LABELING REQUIREMENTS
a.- What are the requirements for a product to be labeled as "Made in the USA"?
3. FINDING INTERNATIONAL MARKETS FOR YOUR PRODUCTS
a.- I think that my products would be successful in other countries, but I’m not sure how to get started in international sales. Is there help for new exporters?
b.- I am shipping my product to a country with a Free Trade Agreement (FTA) in place. How do I know what forms to fill out?
c.- How can I learn more about sales potential for my products in overseas markets?
4. EXPORT CLASSIFICATION and DATA
a.- Do I need an export license to export textiles, apparel or footwear?
b.- Where can I look current import/export data?
5. SHIPPING GUIDELINES AND DOCUMENTATION
a.- If I get an international order, how do I ship my goods?
b.- What do these terms mean? Ad Valorem, Tariff, Letter of Credit, Dumping, Incoterms etc…
a.- How do I get paid for international sales?
7. EXPORT OF USED CLOTHING
a.- What are the requirements to export used clothing?
8. HARMONIZED TARIFF SCHEDULED NUMBERS
a.- What is the Harmonized Tariff Schedule of the United States?
b.- How do I use the Harmonized Tariff Schedule (HTS) to determine duty rates?
9. SCHEDULE B NUMBERS
a.- What is a Schedule B (export) number?
b.- How do I know what Schedule B (or Harmonized Tariff System ) number is assigned to the product I plan to export?
I am starting a business and would like to have my products made in the United States. How can OTEXA help me? (Return to Top)
OTEXA can direct you to manufacturers in the U.S. and provide you with contacts that can assist you with business development and strategies.
A good place to start locating a manufacturer or cut and sew contractor for your products is to visit OTEXA’s Made-in-USA database. The database is a registry of contractors, suppliers, and manufacturers of textiles, apparel and footwear products.
Once you locate a partner to help you manufacture your products, OTEXA can give you more guidance on business strategies including export counseling.
Some of my products are made in the United States and some are made in other countries. Can I be listed in OTEXA’s Made-in-USA database? (Return to Top)
To qualify for registration in the database, your company must be incorporated in the United States with at least one manufacturing plant, assembly plant, or distribution center in the United States that manufactures, assembles or supplies U.S.-made products for the duration of your listing. Manufacturing or assembling in the United States under a contract and/or manufacturing or assembling a mix of U.S. and some foreign components also qualifies you for registration. To register as a supplier, you must be supplying products such as the type listed above.
Contact: Kim-Bang Nguyen
What are the requirements for a product to be labeled as "Made in the USA"? (Return to Top)
Under current Federal Trade Commission (FTC) guidelines, a product may be advertised as “Made in the USA” if “all or virtually all” of the labor and materials in the product are domestic. While this standard is relatively strict, it allows a bit of flexibility in at least two situations.
First, if the product is fully manufactured in the U.S. – primarily from U.S. materials, but with a very small amount of foreign content – the FTC standard allows the product to be described as “Made in the USA.”
Second, the advertiser has the option to soften or “qualify” its Made-in-the-USA claim by disclosing, for example, that the product is made in the U.S. with foreign and domestic materials.
However, if you are a California manufacturer or you want to market your products in California with a Made in USA label, please note the following:
California has enacted a statute which prohibits using a “Made-in-the-USA” claim if any part of the product is foreign-sourced. However, this strict standard was modified in September 2015, to be effective January 2016. The updated standard will more closely align with the FTC rule but will not be entirely consistent with it. Previously, California law set the strictest standard for “Made in America” claims, requiring nearly 100 percent of a product’s content be domestically sourced in the United States. The new law relaxes California’s stringent U.S.-origin labeling standard. The new standard allows products sold in California to be marked as “Made in USA” or “Made in America,” when a small part of the product’s contents are foreign-origin; as long as the foreign materials or parts do not exceed five percent of the final wholesale value of the merchandise; If the manufacturer of the merchandise can show that it cannot obtain the materials or parts in the United States, then the total foreign content cannot exceed 10 percent of the final wholesale value of the item. The law does not apply to goods offered for resale outside of California.
Steve Ecklund, Investigator
Division of Enforcement
Federal Trade Commission
600 Pennsylvania Ave., NW
Washington, DC 20580
FINDING INTERNATIONAL MARKETS FOR YOUR PRODUCTS
I think that my products would be successful in other countries, but I’m not sure how to get started in international sales. Is there help for new exporters? (Return to Top)
Exporting can be profitable for U.S. companies, large and small. As a first step, we suggest visiting the Export Basics section on the U.S. government’s export portal, Export.gov, to take the Export Readiness Assessment and learn how to prepare to enter new markets. You can also talk to trade specialists at your local Export Assistance Center. Call 1-800-USA-TRADE or find your local Export Assistance Center.
For additional clarification, you can contact OTEXA -Kim-Bang Nguyen or Mary Lynn Landgraf
I am shipping my product to a country with a Free Trade Agreement (FTA) in place. How do I know what forms to fill out? (Return to Top)
For most export shipments, you will be required to file certain data about the shipment, known as the Electronic Export Information (EEI), with U.S. Customs and Border Protection (CBP) and the U.S. Census bureau. Further information can be found on the Automated Export System Direct (AESDirect).
Upon arrival in the foreign country, your shipment may need to be accompanied by a Certificate of Origin and other documentation as specified by the terms of the FTA and the foreign government’s customs authority. To learn more about common export documentation, please visit Export.gov. OTEXA also has extensive information about each FTA on our FTA page and specific requirements for individual countries on our Market Reports/Tariff page.
In addition, we suggest that you meet with your U.S. shipper of choice or contact a customs broker in the destination country for more detailed discussions on the export documentation requirements.
How can I learn more about sales potential for my products in overseas markets? (Return to Top)
Market Research is a good first step to learn about the sales potential of your product or service in countries abroad. The U.S. Commercial Service offers free online market research to U.S. companies seeking to enter international markets. Its database allows you to sort by country, industry, and/or type of market report. Visit the Commercial Service's Market Research Library and register to access these reports.
The U.S. Commercial Service also has programs and services to help you locate potential business partners overseas. Contact your nearest U.S. Export Assistance Center and speak with an International Trade Specialist.
OTEXA can also assist by sharing our trade show experience with you.
You can also participate in OTEXA’s sponsored international events for market exposure and branding.
Contact OTEXA: Kim-Bang Nguyen or Mary Lynn Landgraf
EXPORT CLASSIFICATION and DATA
Do I need an export license to export textiles, apparel or footwear? (Return to Top)
A license is generally not required to export traditional textile, apparel and footwear products. A key in determining whether an export license is needed from the Department of Commerce is finding out if the item you intend to export has a specific Export Control Classification Number (ECCN). ECCNs are five character alpha-numeric designations used on the Commerce Control List (CCL) to identify dual-use items for export control purposes. An ECCN categorizes items based on the nature of the product, i.e. type of commodity, software, or technology and its respective technical parameters.
An ECCN is different from a Schedule B number, which is used by the Bureau of Census to collect trade statistics. It is also different from the Harmonized Tariff System Nomenclature, which is used to determine import duties.
All ECCNs are listed in the Commerce Control List (CCL), which is divided into ten broad categories, and each category is further subdivided into five product groups. The first character of the ECCN identifies the broader category to which it belongs and the second character identifies the product group.
If your item falls under the jurisdiction of the U.S. Department of Commerce and is not listed on the CCL, it is designated as EAR99. The majority of commercial products are designated EAR99 and generally will not require a license to be exported or re-exported. However, if you plan to export an EAR99 item to an embargoed or sanctioned country, to a party of concern, or in support of a prohibited end-use, you may be required to obtain a license.
For additional information concerning export licenses, determining an ECCN and/or filling out Form 748P, you may contact the BIS Office of Exporter Services, Outreach and Educational Services Division at (202) 482-4811, or by fax at (202) 482-3617. The BIS Western Regional Offices can be reached at (949) 660-0144 in Southern California or at (408) 998-7402 in Northern California.
Where can I look current import/export data? (Return to Top)
OTEXA maintains up-to-date import and export data for textiles, apparel, footwear, and travel goods..
SHIPPING GUIDELINES AND DOCUMENTATION
If I get an international order, how do I ship my goods? (Return to Top)
See Shipping Your Products Overseas on the export.gov website.
What do these terms mean? Ad Valorem, Tariff, Letter of Credit, Dumping, Incoterms etc… (Return to Top)
The Export.gov website has a list of Trade Terms.
How do I get paid for international sales? (Return to Top)
Current practice has sales paid by credit card or money transfers. However, you should have an in-depth discussion of payment options that would be most suitable for your type of business with your international bank department or by contacting your local Small Business Administration office.
EXPORT OF USED CLOTHING
What are the requirements to export used clothing? (Return to Top)
For more information on used clothing, visit OTEXA’s used clothing export information page.
HARMONIZED TARIFF SCHEDULED NUMBERS
What is the Harmonized Tariff Schedule of the United States? (Return to Top)
The United States International Trade Commission, Office of Tariff Affairs and Trade Agreements is responsible for publishing the Harmonized Tariff Schedule of the United States (HTS). U.S. Customs and Border Protection (CBP) is responsible for administering the tariff and for processing import entries.
The HTS provides the applicable tariff rates and statistical categories for all merchandise imported into the United States. It is based on the International Harmonized System, which is the global classification system that is used to describe most world commodities.
How do I use the Harmonized Tariff Schedule (HTS) to determine duty rates? (Return to Top)
For a brief explanation of how duty rates are determined, please see the Determining Duty Rates on CBP.gov. For more detail, visit the U.S. International Trade Commission website USITC Interactive Tariff and Trade Data.
SCHEDULE B NUMBERS
What is a Schedule B (export) number? (Return to Top)
A Schedule B number is a classification code for exporting goods out of the United States. The Schedule B is used to track the amount of trade goods that are being exported from the U.S.
The U.S. Census Bureau keeps records of the amount of exports by country/quantity, and dollar amount. The Schedule B Classification book can be found on the U.S. Census Bureau's Web site.
How do I know what Schedule B (or Harmonized Tariff System ) number is assigned to the product I plan to export? (Return to Top)
Both the Schedule B and theHarmonized Tariff Schedule of the United States (HTS) are published online by the U.S. Census Bureau and the U.S. International Trade Commission (ITC), respectively. Most textile and apparel goods are classified in Chapters 50-63, and footwear is classified in Chapter 64. Schedule B and HTS classification are the same to the 6-digit level.
If you are unsure which classification is right for your product after reviewing the online resources, you can contact the U.S. Census Bureau’s Foreign Trade Division for assistance.