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THA: In Your Corner - The Association Takes a Stand on New Legislative Matters      By Karen Koza

There’s no doubt that the world is growing increasingly uneasy as financial markets continue their wild rides, jobs and personal wealth hang in jeopardy and competition for consumer dollars grows even greater in this global marketplace.

In uncertain times like these, membership in The Hosiery Association (THA) is more important than ever. THA is a key resource for pertinent information and an advocate for anyone in the industry. THA is in your corner and will help your business navigate these turbulent waters.

As your partner, THA wants you to keep your eye on…………………….

The Legislative Update on Consumer Product Safety Improvement Act of 2008
“New import requirements for consumer goods will take effect November 12, 2008 as a result of the Consumer Product Safety Improvement Act of 2008, which became law on August 14 of this year. New certificates of conformity must be issued for imported goods manufactured on or after November 12,” says Sally Kay, President of THA. “In just a few weeks, manufacturers and importers must certify in writing that products being imported for warehousing and/or consumption conform to the rules, bans, regulations or standards administered by the Consumer Product Safety Commission (CPSC).”

Kay cites that the requirements apply to nearly all categories of consumer goods. “This new act applies to fabrics, wearing apparel, toys, jewelry, sporting goods, refrigerators, furniture, hazardous materials, all-terrain vehicles and even certain pharmaceuticals, like those subject to child-resistant cap standards.” She also calls out that the new requirements affect multiple facets of the supply chain. “New certificates must be issued by the manufacturer importer or private label, where necessary and appropriate.”

New certificates of conformity must also adhere to a “reasonable” testing program, accompany the product or shipment of the product and furnished to each distributor or retailer of the product.

THA is there for members who may need further direction on the new requirements. “THA has joined the NAM CSPC Coalition in an effort to educate members on what and how they can comply with this new regulation,” Kay says. She also adds that more information, including a copy of the August 2008 webinar on this topic, is available for member on THA’s web site, www.hosieryassociation.com.

The Legislative Update on the Lacey Amendment
“Any THA member who imports products made with plant material needs to be concerned about far-reaching new legal provisions that could result in significant new reporting requirements,” cautions Kay. “The 2008 Farm Bill (H.R. 6124) contains language that amends the Lacey Act, a law dating back to 1900 which prevents trafficking in protected flora and fauna. While final regulations have not been written or issued, it appears that this amended Lacey Act will impact far more than illegally harvested timber, as it previously did.”

Kay details that the new law could affect products made from any of the following:

• Soft- and hardwood products of all kinds
• Cotton fibers & fabrics
• Cellulose fibers & fabrics
• Rayon
• Wood pulp
• Bamboo
• Paper products of all kinds
• Wood resins used in food, beverage, and pharmaceutical products

“The amended Lacey Act now contains reporting requirements that requires importers to declare all plant and plant products, including wood, pulp and bamboo-based products, “says Kay. “The law mandates these new reporting requirements are set to go into effect on December 15, 2008.”

Kay adds that THA is taking action on behalf of their members, and has adopted the following position:

“While recognizing the important environmental objectives of the Lacey Act amendment, THA supports such clarifications or changes to the amendment through new legislation or the implementation process as may be necessary to provide certainty to the industry and to ensure, to the greatest extent possible, that leg wear manufacturers, suppliers and distributors are not required to file declarations described in the amendment for imported products containing rayon, cotton, corn bamboo and plant products.”

The Association has joined a coalition which includes the National Retail Federation (NRF), National Association of Manufacturers (NAM), American Apparel and Footwear Organization (AAFA) among others. The coalition has a strong strategy to influence the implementation process to the extent possible this year, but NRF lobbyists admit that new legislation may be required to achieve the full objective in the coming year. While the coalition has a clear and aggressive plan in place, it is unclear to what extent this will be successful.

For more information on the amendments to The Lacey Act, members are encouraged to visit THA’s web site, www.hosieryassociation.com.