Federal Trade Commission Received Documents Dec. 26, 1995 P894219 B18354900016 NAHM National Association of Hosiery Manufacturers 90th Anniversary NAHM 1905-1995 200 NORTH SHARON AMITY ROAD * CHARLOTTE NC 28211-3004 PHONE: (704) 365-0913 FAX: (704) 362-2056 Office of the Secretary Federal Trade Commission-Room 159 Sixth and Pennsylvania Avenue, N.W. Washington, D.C. 20580 Re: "Made in USA Policy Comment," FTC File No. P894219 Dear Mr. Secretary: The National Association of Hosiery Manufacturers (NAHM) is the trade association representing the interests of those companies in the United States that produce all types of men's, women's, and children's hosiery. NAHM m embers manufacture and market over 85% of all the hosiery sold in the United States. The following comments are predicated on NAHM's understanding that the FTC's consideration of whether (1) it should alter its legal standard regarding the use of unqualified "Made in USA" claims, and (2) how domestic content should be measured under any future standard, does not directly address textiles and apparel, including hosiery, because this category is governed by the "Rules and Regulations Under the Textile Fiber Products Identification Act (TFPIA)." NAHM believes the issue of "Made in the USA" is especially complex given today's interdependent world and the rise of international trade. The FTC needs to maintain flexibility and make determinations on a case-by-case basis. For example, when Congress amended the TFPIA in 1984, the objective was to clarify and improve country of origin labeling requirements and increase consumer awareness at the point of purchase (Rule 33). As good as the definitions were for textiles and apparel, they presented a problem for the hosiery industry. The Association, working closely with the FTC staff, was able to demonstrate the manufacture of hosiery is a two-step process: first, yam is knitted into a cylindrical fabric; and second, by means of a number of different cutting, sewing, and finishing processes, the creation of a product. The ability to label hosiery products "Made in the USA," regardless of the origin of the yams or fibers, has proven practical and beneficial to this segment of U.S. industry, and allowed it to be competitive on both the domestic and international levels. The determination that hosiery manufacturing is a two-step process entitled domestic manufacturers to label their products "Made in the USA," and assured U.S. consumers that those products accurately reflect the quality associated with American made hosiery. NAHM appreciates the opportunity to submit comments regarding "Made in USA Policy." Please feel free to contact me if I may be of assistance. Best wishes for the Holiday Season. Very truly yours, Chuck Brooks Vice President and Secretary