California Apparel News

Importing apparel and textiles will not get easier in the age of new regulations recently imposed by the government.

This year, importers are faced with the 10+2 Rule and the Consumer Product Safety Improvement Act (CPSIA). Technology could be a big facilitator to comply with these issues, noted industry leaders attending Tech Conference West, held March 24 at the Fashion Institute of Design & Merchandising in Irvine, Calif.

Taking the steps to comply with CPSIA can add up to two weeks to a product’s lifecycle, noted Ilse Metcheck, executive director of the California Fashion Association and one of the keynote speakers at the event, which was sponsored by Apparel Magazine. “Technology can help maneuver around these issues,” she said.

Metchek joined Mike Fralix, president of think tank {TC}2; Dick Baker, former chief executive of surfwear maker Ocean Pacific; and a host of technology executives addressing issues such as sustainability and the current recession. The event was attended by representatives of leading brands such as St. John, BCBG Max Azria, American Apparel and Levi Strauss & Co.

Metchek called on technology providers to help the industry comply with these new issues. Some, such as Miami Lakes, Fla.–based New Generation Computing, are already on the ball, incorporating tools to comply with 10+2 and CPSIA within its e-SPS and e-PLM sourcing and production management software applications.

The systems collect, maintain and manage information as well as share it with other parties, which is necessary for 10+2 filings. They also issue alerts throughout the supply chain regarding CPSIA test results and notify import managers.

CPSIA, which monitors the amount of lead in consumer products, places the burden of proof on manufacturers or importers to make sure imported goods do not contain lead. Products must go through a certification process. Metchek said a number of industry agencies don’t think apparel and textiles should be included in the CPSIA regulations because fabrics do not contain lead.

The new 10+2 regulation requires importers and shippers to provide 12 points of information 24 hours before shipments leave port. That information includes the names and addresses of the manufacturer, the buyer and the seller; county of origin; container-stuffing location; commodity numbers; and consignee number.

Metchek said apparel importers are in another government-driven dilemma because as of April 1, importers were required to file paper or electronic manifests associated with 10+2.

Penalties, which go into effect in January, can be as high as $100,000 per violation. “It’s a whole other wrinkle,” Metchek said.

The Lacey Amendment, another regulation, could pose headaches down the line for the apparel industry. It levies fines of up to $10,000 per violation on importers that bring in products made from any endangered wood or plant species.

Currently, the law, also known as the Farm Bill, applies mainly to the home-furnishings industry, but regulators may include apparel and accessories because of the wood found on trimmings and accessories.

“It’s coming down the pike and could be another technological nightmare,” Metchek noted.

In his keynote address on sustainability, Fralix of {TC}2 tackled the topic from a technology standpoint, explaining that sustainability isn’t always about using eco fabrics and recycling.

He applied Japan’s “muda” principle to that theory, explaining that “muda” is defined as “performance without waste” and is a form of sustainability.

He illustrated how some companies are taking this approach by teaming up with suppliers such as Shima Seiki in Japan and Stoll in Germany, which produce digital flat knitting machines capable of producing garments directly from imported CAD files. “There is virtually no waste [of yarn],” Fralix said.

He also pointed to online communities as a means of developing production from a virtual perspective.

Fralix said the business model of the future will be to adopt digital-distribution-making production as the final step rather than rely on the old model of design, produce, sell and then ship.

“If it never has to be made, then it must be more sustainable,” he said. He pointed to Web sites such as Whyville (www.whyville.net), There (www.there.com) and Secondlife (www.secondlife.com) as places where users create avatars of themselves and act out processes virtually.

In another example, he showed how companies such as Malibu, Calif.–based Shapely Shadow are finding ways to collaborate on the fit and function of garments through motion-capture technology over the Internet. “What if you could make only one sample?” he asked.

Finally, Baker, former Ocean Pacific chief executive and current chair of the Surfwear Industry Manufacturers Association, wrapped up the event with his take on the economy and issues affecting the apparel industry.

Baker noted there is a “cleansing of America” taking place within the retail landscape because of the recession. “This is unprecedented. The resulting consolidation will be staggering,” he said.

Baker likened the current fallout to what occurred in the grocery business a few years ago, when organic foods came into vogue. “Grocery chains were among the worst-run organizations. The organic [foods] helped them change it all,” he observed.

Even the surfwear industry, Baker said, could benefit from opening its own stores, as controversial as that may be. “You have to have a modern business model, get out and look at the product and who the consumer is,” he said. “Being only a distributor does not always allow you to do that.” —Robert McAllister