On August 8th, Vince Iacopella, Alba’s Executive Vice President of Growth & Strategy, spoke at Sourcing at MAGIC in Las Vegas. The panel discussion, sponsored by the California Fashion Association, was focused on emerging trends, opportunities and challenges in apparel sourcing in 2023.
Presenting alongside Vince were Sebastian Echavarria, West Coast Trade Representative from ProColombia, Narenda Goenka, Chairman AEOC / India Texport Industries and Sherin Hosni, Executive Director, Egypt Apparel Council. The discussion was moderated by Ilse Metchek, President, California Fashion Association.
Playing a prominent role in the discussion was talk surrounding the Uyghur Forced Labor Protection Act, or UFLPA. Because cotton is one of the main points of interest from the U.S. government and was subject to CBP Withhold Release Orders before UFLPA, the question for importers is what proactive steps can be taken to either eliminate high-risk XUAR-originating cotton from garments or what levels of documentation and proof will be required to meet the law’s requirements it was not produced with forced labor. The panel’s consensus is that now is the time to explore non-China alternatives to apparel sourcing.
The topic of the whipsaw effect of rates and service on the transpacific in the face of even higher carrier profitability than last year is one that shippers continue to grapple with. Alba Wheels Up has developed an expedited ocean product using smaller lines and vessels that have demonstrated more schedule integrity and equipment availability.
Apparel is a very trade-sensitive product and one that both importers and customs brokers must treat differently than general cargo items. Apparel carries some of the highest ad valorem duty rates in the tariff, and that was prior to the imposition of Section 301 trade remedy duties. Apparel constitutes a large category of direct to consumer duty-free shipments using CBP’s Type 86 and Section 321 pilots.
Alba Wheels Up recognizes the importance of cost containment for apparel shippers in the direct-to-consumer space. We have created a process utilizing Southern California ports and northern Mexico warehouses that can meet the supply chain needs of shipments with a known buyer at the time of departure from Asia or those where the consumer will not be identified until after the goods have arrived in North America.
For more information on Alba’s direct-to-consumer solutions and whether or not it is a money-saving opportunity for your supply chain, contact us today.