US: Footwear firms face conflict minerals confusion
Confusion continues to reign over new rules on the use of “conflict minerals” sourced from central Africa by footwear companies in the US, according to a trade association.
The Footwear Distributors and Retailers of America (FDRA) reports that legal challenges from trade groups against the new SEC rules have failed on all but one count, following a majority decision by the District of Columbia Court of Appeals for the Federal Circuit.
The new rules, enforced in line with the Dodd-Frank Wall Street Reform and Consumer Protection Act, require companies to disclose whether rare minerals sourced from war-torn regions in central Africa have been used in the production of their goods.
However, this has proven especially difficult for footwear companies, prompting the legal challenge.
The court rejected most of the associations’ arguments, but ruled that parts of the act and the SEC’s Conflict Minerals Rule violated the First Amendment.
However, the court did not stop the implementation of the Conflicts Mineral Rule, and the implications of its ruling are as yet unclear, said the FDRA.
It advised companies to continue to press on with enquiries on conflict minerals and to be prepared to make disclosures on the matter by the current deadline of 2 June.
- TPP tariff phase-out guides Vietnam sourcing plans
- Why fast fashion isn't a case of one size fits all
- How Central America garment sourcing measures up
- How virtual garments could shape fashion retail
- Brexit Trade Focus – How a CANZ-UK FTA stacks up
- Ethiopia opens flagship textile and apparel park
- VF confident on "solid" sustainability roadmap
- VF Corp cuts guidance as Q2 profit plunges 70%
- Inditex and Lenzing sign textile waste pact
- EU and US dispute China raw materials duties
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Luxury Goods Retailing in Europe, 2014-2019 ; Market & Category Expenditure and Forecasts, Trends, and Competitive Landscape
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis