In this issue:

U.S. Customs and Border Protection has identified substantial problems concerning certificates of origin which accompany goods shipped from Canada to the United States under NAFTA. These certificates provide the information needed by US Customs to verify that goods meet the rule of origin.

In the course of these verification activities many Canadian exporters cannot fully substantiate the origin of their raw materials.  In simple terms companies that have exported goods and claimed NAFTA duty-free status are now being forced to pay duties on those shipments - duties which are often in excess of 20% of the value of the goods. In addition penalties may also be assessed.

Earlier this year the Canadian Apparel Federation (CAF) hosted a webinar on certificates of origin and the verification processes.  Any company that currently exports NAFTA qualifying apparel to the US should view that webinar.  It is available here.  Any CAF member company that needs to better understand the NAFTA rules of origin should contact Bob Kirke at bkirke@apparel.ca. 

For more details on this and related issues go to the International Trade Update section of CAF website. Access is restricted to AQ and CAF members; login/password required. Retrieve password here. 

Canada-Europe – Free Trade Negotiations

For more information on this and other breaking trade issues (Honduras and Colombia FTA etc.) see the articles in the International Trade Update section of the CAF website. Access is restricted to AQ and CAF members; login/password required. Retrieve password here.  

Credit Update from NAB: Hart Stores in Protection from Creditors

Hart Stores Inc. has obtained an initial order for court protection from creditors under the Companies' Creditors Arrangement Act. Hart Stores received approval from the Quebec Superior Court for protection under CCAA until Sept. 29, though extensions could be granted. RSM Richter Inc. was appointed as the monitor.

The company will also be able to borrow $20 million from Wells Fargo Capital Finance Corp. Canada to meet its liquidity requirements.  "Hart Stores believes that restructuring under the CCAA will provide the Company with the best opportunity to develop a viable business plan to ensure successful operations in the future," the company said in a release.

Hart operates a network of 92 mid-sized department stores under the Hart, Bargain Giant and Geant des Aubaines banners in secondary and tertiary markets throughout Eastern Canada.

The National Apparel Bureau (NAB) is advising suppliers to cease shipping immediately until the situation is clarified. For further information, contact David Schachter at the NAB (514) 483-6223 x 239. 

Join Apparel Quebec!

If you are not already a member, consider joining today. Apparel Quebec (AQ) is the provincial association for Quebec's apparel industry. AQ stands up for the industry, and is your source for information and advice on national and international issues, and industry-specific services.

Apparel Quebec is made up of firms from across the province of Quebec, and represents the full range of firms that make up the industry, from small suppliers to national brands and vertically integrated retailers. Under AQ, the different sectors of the industry can work together to meet the business challenge of today.

Our specialty is based on:

1. Business Development – including trade missions to new markets, access to government subsidies.
2. Financial Information – to allow firms to secure the financing they need and operate efficiently.
3. Sourcing Opportunities and overseas partnerships – our extensive network of international contacts and knowledge in logistics can save you time and money.
4. Operations – information on a range of issues from R&D tax credit, design, resources and quality.
5. Regulatory Compliance – we keep you updated of any regulations on trade, sourcing, product safety and social compliance.

Apparel Quebec is affiliated with the Canadian Apparel Federation (CAF): Members of Apparel Quebec benefit from full membership in both a local association that works on the ground with its members, and  a national group able to address national and international issues.  Through our association with the CAF we have a valuable collective voice with policy makers at the national and provincial levels. Beyond our association with CAF, we work in partnership with the Apparel Human Resources Council and many other trade associations.

Click here to become a member of Apparel Quebec online! For more information about the organization, visit our website www.apparelquebec.com or contact us at cs@apparelquebec.com . Note that you can always register your business in our online directory, in order to be listed and that your profile be viewed by many companies in search of business partners!

The Gazelles make the jump (Le Soleil) — (Quebec) The Gazelles arrive in stores. What are they? They are reversible spats made of synthetic fur and manufactured in Quebec. An idea that has simmered in the mind of Suzanne Descarries, a dynamic business woman from Quebec who feared retirement. More (French only).

MFW: Four highlights (La Presse) — After four days of fashion shows at the 21st Montreal Fashion Week, one thing is clear: only nice discoveries! Young talents, Anastasia Lomonova to UNTTLD, Duy and Martin Lim, have kept their promises, leaving prefigure lasting careers. Note that the conceptual overviews become substitutes of traditional fashion shows, certainly more expensive. Finally, we noticed the presence on the gateway of beauty mixed models. Back on four highlights of this exciting event. More (French only)

Footwear with fall color (Le Soleil) — (Quebec) What’s new in the radius of the shoe this fall? Leather, neutral colors, high heels and wedges. Enough to start the new season off right! More (French only).

Amazing Denis Gagnon (La Presse) — The defile of Denis Gagnon is still one of the most anticipated moment of the Montreal Fashion Week. Why? Because the creator of art is taking us against the style proposals, always more striking and surprising each time. More (French only).

Dans la gueule du loup (Le Soleil) — (Quebec) T-shirts to show you wild side! More (French only).

Quebec Back to School (La Presse) — The summer seems to have spun so fast! It is already the time going back to school, with the fateful hour of shopping. Dear parents, you will not escape it, it’s time to fill up some trends for your children. Particularly from our local brands: Blü, Deux par Deux, Mondor and Oöm Ethikwear. Follow the guide. More (French only).

Vero collection is back (Le Soleil) — (Quebec) The popular collection of Vero is back in L’Aubainerie stores. Available since yesterday, this affordable line of clothing is made by Quebec designers with the collaboration of the animator Veronique Cloutier. More (French only)

Jacob starts fresh (Le Soleil) — (Quebec) New image, new voice, new start for this Quebec women’s clothing company. More (French only)

Fashion you can feel good about (The Gazette) — Ethical boutique offers clothing that is either environmentally friendly or made under fair-trade conditions. More

Lolë: Renewal of their retail space (Infopresse) — Infopresse presents company profiles that stand out for their creativity, whatever the field: this week, focus on the brand of women’s clothing Lolë. More (French only).

 Canada Industry News (CAF)

Despite economic growth, Alberta retail sales stagnant (Calgary Herald) — An improving economy combined with employment growth have yet to translate into a boom in Alberta's retail sector. Statistics Canada reported Tuesday that retail sales in the province of $5.243 billion in June declined by 0.3 per cent from May. More

A harsh prediction for Sears Holdings (Globe and Mail Blog) — One of the rationales for investing in Sears Holdings Corp. from the beginning of controlling shareholder Eddie Lampert’s ownership has been the real estate play. The stores themselves were supposed to have unrecognized value even if the retail business was performing poorly.  It’s time for that theory to be tested, argues Ken Kurson, financial columnist for Esquire magazine. He says the only value at Sears and Kmart, the company’s two retail chains, “is the bet against them.” More

RCMP Seize Fake Jets Jerseys  (National Post) — Federal RCMP officers and border agents have seized a shipment of counterfeit Winnipeg Jets jerseys. Forty jerseys, complete with the new logo and shoulder flashes estimated to be worth approximately $12,000 were seized, police said Wednesday. More 

Go for the real Goose, says store owner (The Sault Star) — Online shopping is often the way to go for those searching for a great deal.  But if you're one of the many hunting for an authentic Canada Goose coat, be wary of what you see while browsing the web. What looks like a bargain too good to be true probably is.  More

The 40 Worst-Dressed Cities in America (GQ) — Look around you. Better yet, look in the mirror. Are you the victim? After a deeply scientific, irrefutable poll, we gathered, analyzed, and ranked the most sartorially-challenged metropolises in the greater United States. It may be time to plan that move you've been thinking about. More

US: Retailers' August 2011 sales roundup (just-style)

Target Canada now hiring for 2013 launch (Toronto Star) — Target Canada is starting to staff up its operations in anticipation of opening its first 135 stores in Canada in March 2013. More

Li & Fung Goes on an Acquisition Spree (Businessweek) — Li & Fung, the world’s biggest supplier of goods to retailers including Wal-Mart and Kohl’s had an upbeat story to tell when it announced results for the first half of the year on Aug. 11. Profit had dropped only 15 percent, the company said, beating the expectations of analysts. More

This bulletin is distributed to companies in the apparel industry and other interested parties. The material in this newsletter may not be otherwise reproduced, distributed or presented in any other form, without the express permission of Apparel Quebec and the Canadian Apparel Federation.

Apparel Quebec
801-555 Chabanel West
Montreal (QC) H2N 2H8
T. 514-382-3846
E. cs@apparelquebec.com