European Surgical Glove Imports Soar Over $1.8B

October 28th, 2021 IndexBox Leave a comment

IndexBox has just published a new report: ‘EU – Surgical Gloves – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, EU surgical glove imports exceeded $1.8B, reaching the highest level ever recorded. In physical terms, European imports of surgical gloves rose from 20.6B in 2019 to 35B pairs in 2020. Germany, the Netherlands and Denmark imported 69% of the total supplies in the EU. Germany, the largest European importer, saw a 10%-growth of the import volume last year, while the Netherlands doubled its purchases from abroad. In 2020, the average surgical glove import price in the EU grew by +14% y-o-y to $53 per thousand pairs.

EU Surgical Glove Imports

In 2020, imports of surgical gloves in the EU surged from 20.6B in 2019 to 35B pairs in 2020. In value terms, surgical glove imports soared from $1B in 2019 to $1.8B (IndexBox estimates) in 2020.

The countries with the highest levels of surgical glove imports in 2020 were Germany (9.8B pairs), the Netherlands (8.2B pairs) and Denmark (6B pairs), together reaching 69% of total import. It was distantly followed by France (1.6B pairs), comprising a 4.5% share of total imports. The following importers – Austria (1,436M pairs), Sweden (1,237M pairs), Spain (1,196M pairs), Poland (988M pairs), Italy (769M pairs), Belgium (715M pairs) and Hungary (574M pairs) – together made up 20% of total imports.

In 2020, Denmark saw the most notable growth of imports in physical terms. Denmark increased surgical glove imports from 0.6B pairs in 2019 to 6B pairs in 2020. Over this period, the Netherlands doubled its imports of surgical gloves, while Germany’s purchases rose by +10 y-o-y.

In value terms, Germany ($725M) constitutes the largest market for imported surgical gloves in the EU, comprising 40% of total imports. The second position in the ranking was occupied by the Netherlands ($161M), with an 8.8% share of total imports. It was followed by France, with a 6.9% share.

The surgical glove import price in the EU stood at $53 per thousand pairs in 2020, with an increase of +14% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was Italy, while Denmark was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Italy, while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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NIXCOVID ANNOUNCES PARTNERSHIP WITH WEN-PARKER LOGISTICS

May 28th, 2021 WEN-PARKER LOGISTICS Leave a comment

Medical equipment and technology company NIXCOVID is proud to announce their partnership with leading global freight forwarder WEN-PARKER LOGISTICS, as their official partner for global shipping.

“Wen-Parker Logistics is very excited to enter into this partnership with NIXCOVID to continue on our company’s missions of bringing critically-needed supplies to those affected by this global pandemic,” said Brady Borycki, Executive Vice-President, Global Business Development at Wen-Parker Logistics.

The Elmont, New York-based Wen-Parker Logistics, a leader in wearing apparel transport since 1997, in 2020 delivered over 1 Billion pieces of PPE on chartered flights from Vietnam to the United States through several US gateways.

Ms. Kathryn Bonesteel, co-founder of NIXCOVID and Nixie Technologies Inc., states that, “Wen-Parker has been a strategic ally since the height of the COVID-19 pandemic. When many of the world’s largest freight forwarders could not meet the incredible surge in demand, Wen-Parker Logistics was able to deliver cost-efficient and optimal solutions for our ever-changing supply chain needs.”

This newly-minted partnership just completed two shipments involving over 2.5 million examination grade nitrile gloves that will go to Illinois and 100 million gloves that will arrive weekly over the next 6 months.

“Our collective team has delivered hundreds of millions of pieces of essential products working together directly for governments, hospitals, publicly-traded corporations and other essential frontline workforces. We are proud to formalize our longtime partnership and continued efforts to supply the world with products to keep people safe,” continued Bonesteel.

Mr. Blake Sherwood, Strategic Partner and Director of Supply Chain Logistics at NIXCOVID and Nixie Technologies Inc. shares this sentiment, “Through this strategic partnership, we have a strong and secure distribution of all products, including PPE, in the U.S. and around the world. After having gained significant insight and expertise transacting PPE, I’ve been extremely impressed with Wen-Parker and their global capabilities.”

_______________________________________________________________________

About NIXCOVID:

NIXCOVID is a global supply and technology company, founded by Kathryn Bonesteel and Jeff Wood to help nix the COVID-19 pandemic. The company, and its parent company, Nixie Technologies Inc, are internationally known for their significant impact to supply and donate Personal Protective Equipment (PPE) to frontline workers. NIXCOVID operates globally with factory and strategic partnerships in over 20 countries. To learn more about NIXCOVID, visit https://www.NIXCOVID.com/

About Wen-Parker Logistics

Wen-Parker Logistics currently services more than 80 countries across six continents and has been recognized as a Great Supply Chain Partner for five consecutive years by Supply Chain Brain Magazine and was named a Top 100 3PL by Inbound Logistics magazine in 2020. To learn more about WPL call 888.978.7817 or visit www.wen parker.com.

Media Contact – WPL

Lewis C. Leoce

Marketing Manager

c 914.815.5784

LLeoce@wen-parker.com

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Face Masks to Drive Nonwoven Cleanroom Apparels Demand in the Near Future

February 22nd, 2021 Global Market Insights Leave a comment

Rising demand from various verticals like pharmaceutical, medical equipment, and the electronics sectors will anchor the adoption of nonwoven cleanroom apparel. The prevalence of several chronic and contagious disorders, like the present coronavirus, has resulted in an increasing need for sanitation and disease protection. Nonwoven cleanroom garments are gaining wider popularity in comparison to other materials as they do not necessitate the need for spinning or weaving the fabrics and can be derived from different sources of raw materials.

The nonwoven apparels are eco-friendly as well as sterilized and are gradually replacing traditional barrier-rendering and aseptic fabrics as they offer single-use and are easily disposable. They do not require re-cleaning or sterilization and effectively help to eliminate contamination. These materials offer fast production, lower costs, high yield as they can be manufactured in large quantities. Apart from these features, they can provide elastic recovery, aeration filtration, and absorbent insulation. Furthermore, the nonwoven fabrics are waterproof, soft, light, and not scalable.

As per a recently collated research report, the global nonwoven cleanroom apparel market size is slated to rise at an exponential growth rate by 2026.

Global demand for face masks

Annual revenue from face masks in the nonwoven cleanroom industry is likely to reach a prominent growth rate. This can be mainly attributed to their incessant demand across the globe particularly in the present COVID-19 pandemic on account of their lower cost and higher utility to curb the spread of the infection. The multilayer construction of the nonwoven face masks helps to provide effective protection against microorganisms.

Protection of medical equipment

Application of nonwoven cleanroom clothing across the medical equipment sector will reach significant revenue. This is owing to their optimum efficiency and user protection like high tearing and abrasion resistance as well as excellent barrier-providing abilities.

The fabrics also offer better comfort & feel, high-level vapor transmission, air permeability, and good cross-contamination control. Taking note of these factors, the nonwovens are most suited for wound-caring components like bandages, absorbent pads, and drug-delivery devices, and in many other types of medical equipment across ICUs, labs, and operating rooms.

Potential in the pharma industry

Nonwoven cleanroom apparel uses across the pharmaceutical sector will gain considerable traction due to their rising preference to filter the human-dispensed contamination in pharma applications. As the fabrics are derived from lightweight, low-threading as well as durable polyethylene and polyester fibers, they are affordable and suitable for single use. They are environment friendly and are hence excessively used across sterile operating facilities to counter contamination concerns while rendering high comfort and protection.

Nonwoven cleanroom apparel suppliers are working towards novel product launches as well as marketing strategies like partnerships, and acquisitions, to broaden their reach across the untapped regions in the world. They are keen on capacity expansions to sustain competition. For instance, in June 2020, Kuraray Co., Ltd., expanded its production of melt-blown nonwoven fabrics to cater to the increasing consumer requirements for mask filters.

Kimberly-Clark Corporation, Clean Air Products, DowDuPont Inc., Azbil Corporation, Connect 2 Cleanrooms Ltd., Dynarex Corporation, and Labconco Corporation some of the other global product manufacturers in the industry.

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Will Usage of Abaca Fiber Face Masks During COVID-19 Help to Reduce Wastes During the Pandemic?

December 11th, 2020 Global Market Insights Leave a comment

With the demand for face masks and other PPE equipment soaring high worldwide due to the dreaded COVID-19 pandemic spread, it is quite impossible to not ignore the burgeoning plastic wastes created by their disposal. According to estimates by Greenpeace Taiwan, the country produced and used about 1.3 billion surgical masks during the apex of the pandemic- from early February to mid-May. This number generates over 5,500 metric tons of general waste within a span of 3 months.

Such numbers signify that although face masks add to the general protection during the pandemic situation, they also contribute massively towards environmental degradation and landfill pollution, demanding a bio-degradable solution and substitute. This has gradually led to the emergence and usage of abaca fiber-based surgical and sustainable masks.

Recently, a Philippines-based firm- Salay Handmade Products Industries, Inc. had come forward to commercialize and supply masks made from raw abaca fibers, which boast of the property to decompose in just two months. Abaca fibers are generally rooted from banana leaf and are considered to be strong as polyester but high on the sustainability front. A proper validation on the use of abaca fibers for the production of face masks is offered by the country’s Department of Science and Technology. The researchers found that abaca mask is potent of absorbing nearly 3% to 5% of total water applied, while N95 and surgical masks absorbed 46% and 0.17% respectively.

Essentially, the abaca masks repel water far better than an N95 mask and is considered to be extremely safe for use. Although these abaca masks are eco-friendly, they are also quite highly-priced. That said, environmentalists concerned with the plastic crisis plaguing the entire planet will hopefully witness the benefit of investing in biodegradable masks providing an impetus to the global abaca fiber market.

Abaca fibers, also known as ‘Queen of natural fibers’ offer a huge potential to be used as a renewable bio-resource and are claimed to have a high content of lignin (about 9%) and cellulose (roughly 77%) that provide significant resistance to abrasion, traction, UV rays, and saltwater. These properties allow the fibers to be abundantly used for various industrial or extra-industrial applications across automotive, shipping, construction, pulp and paper, furniture, and textile industries.

Why are abaca fibers gaining massive momentum across the automotive industry?

It was in late 2004 that a major automotive giant, Chrysler-Damlier had explored the possibility of incorporating abaca or banana fiber in polypropylene thermoplastic as a substitute to glass fiber used in the exterior of most of the cars. In fact, it was reported that the company was able to demonstrate that PP composites reinforced with abaca fibers showed high structural as well as tensile strength similar to that of glass fiber. Additionally, abaca reinforced PP composites are relatively lighter compared to glass fiber, which could lead to enhanced fuel and energy saving for vehicles while also reducing their weight by up to 60%.

Elaborating further, the DOST Industrial Technology Development Institute sees abaca’s potential as a roofing material for various public utility vehicles. The polymer’s low heat conductivity could help prevent most of the sun’s heat from entering the automobile’s cab, which is especially helpful during the long summer months.

Speaking of the importance of abaca fibers in the automotive industry, the Philippines, which currently produces about 85% of the world’s abaca firmly states that the use of these fibers could potentially augment the country’s local automotive industry in the years to come.

Abaca fiber market trends across the Philippines

The Philippines has over the years remained a dominant region for the abaca fiber market as it stands to be the largest global producer of abaca fiber, ever since its introduction. Reports state that the region produces about 80% of these fibers in about 130 thousand hectares of land. The market is witnessing a massive boost owing to the mounting demand for toys, gifts, and houseware products. Not only this, rising customer inclination for lifestyle products is also stimulating the industry progression.

What has been fueling the industry growth in the Philippines is the introduction of several initiatives that look toward the promotion and production of high-quality abaca fiber in the region. The federal government is responsible for mandating and creating initiatives and measures which strengthen the hold of the country in the overall abaca fiber market while also creating additional growth opportunities for new market players to foray into the regional market.

Although the market has been expanding prolifically over the past few years, it is currently facing some challenges which might hinder its growth in the near future. A major disadvantage being the application of these fibers as reinforcement. Since abaca fibers cannot blend uniformly with polymer composites owing to their natural properties, this complicates the composite fabrication process in the textile industry, limiting its use in the overall textile business space.

Nevertheless, abaca fibers’ eco-friendly and bio-degradable properties have enabled the global abaca market to grow profusely over the span of 2020 to 2026.

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How the Demand for High-Temperature Resistant Polymers Enhances the Growth Statistics of Polyimide Fiber Market

December 10th, 2020 Global Market Insights Leave a comment

With biodegradable and eco-friendly fibers scoring an edge over synthetic polymers of late, the polyimide fiber market has been observing a renewed traction worldwide. In the last couple of years, polymers and advanced materials industry giants have faced a series of challenges pertaining to the integrity of various polymer products, a factor that has propelled the trend of natural fibers across various industries. Polyimide fiber has been identified as the most widely approved eco-friendly polymer owing to its exceptional characteristics including high decomposition temperature (560 degree Celsius), nonflammable, UV and radiation resistance, and relatively lower fire damage compared to aramid fiber.

On the research front as well, various scientific evaluations of polyimide fiber have made their presence felt, which are likely to contribute toward industrial development. Due to their aromatic structure, polyimide fibers boast of low flammability and brilliant chemical resistance while being extremely light in weight and these factors have made PI fiber market an attractive commercial proposition across the chemical industry.

Polyimide Fiber Market | Applications in the Chemical Industry

Applications in the chemical industry have indeed been cited as one of the chief arenas for the polyimide fiber industry over the past few years. One of the prominent reasons for the same being product’s massive use for filtration purposes in the industry where hot gases are involved. Since PI fibers are highly resistant to chemicals, they can be used as a supreme alternative for conventional filters generally used in chemical business space that are susceptible to high degradation thereby delivering reduced operational efficiency.

In fact, the use of PI fibers eases the performance of extreme processes while also augmenting the chemical plant’s overall productivity. Looking into these aspects, various chemical giants have begun brainstorming for the development of varied types of PI fibers to be used in chemical industries and elsewhere.

In a recent turn of events, one of the major chemical industry players- Evonik, had in late-2019 announced the launch of its new polyimide fiber named P84 HT, given the massive demands from various industries. The newly introduced product has received high acclamation owing to its improved mechanical stability and flexibility at constant high operating temperatures. In lieu of the aforementioned features, P84 HT fibers are typically developed to be used in a wide range of applications right from filter media for high-temperature filtration to thermal insulation and protective clothing.

COVID-19 and Polyamide Fibers

Given that polyimide fibers are massively being used in protective clothing, the recent trend for these is the outbreak of COVID-19 infection spread. The dreaded coronavirus pandemic, which emerged from the Wuhan province of China has to date claimed more than a million lives, leaving various businesses paralyzed. COVID-19 infection is considered to be a novel respiratory infection that is highly communicable, and this calls for use of proper protective equipment like face masks and PPE kits which could help in curbing the spread of this disease. In this regard, N95 masks are being currently deemed to be massively used protective equipment subject to their ability to restrict about 80% of aerosol particles.

Although N95 masks are considered highly effective, researchers are exploring the possibility of developing a membrane that can efficiently filter particles the size of SARS-CoV-2 and could potentially be replaced on an N95 after almost every use. In one such instance, a group of researchers reported on ACS nano that they have designed a membrane that could be attached to the N95 masks and later removed to prevent minuscule of particles to enter the respiratory tract. For this, researchers initially developed a silicon-based, porous template via lithography and chemical etching processes, and placed it over a polyimide film, standing as a barrier for the entrance of ultra-nano particles.

Also, recently a research team from City University, Hong Kong has successfully designed graphene face masks boasting of anti-bacterial efficacy of 80 percent which can only be improved to almost 100% with exposure to sunlight for just 10 minutes. An important thing to note here is that these masks can also be produced via the use of polyimide films. Speaking of which, it was reported that direct writing on carbon-containing polyimide films using a commercial carbon dioxide infrared laser system would produce 3D porous graphene, exhibiting similar graphene-like properties.

On the basis of the aforementioned, it is quite overt that although polyimide fibers or films are not directly used as a protective agent against dreaded COVID-19 infection, they still are highly important to improve the efficiency of PPE kits including face masks.

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How Will Soaring COVID Cases Trigger Demand for Safety Gloves?

October 28th, 2020 Global Market Insights Leave a comment

Industrial workplaces stand as a hotspot for umpteen industrial accidents globally, just in case if proper precautions, like wearing protecting headgears or gloves, are not being followed. In fact, as per the International Labor Organization, more than 1 million industrial accidents occur every year globally, a dreaded count that enunciates the need for effective safety gears like gloves, suits, and headgears. An upsurge in industrial accidents and demand for protective equipment has thus significantly driven the overall growth of the industrial safety gloves market over the years.

Speaking on similar lines, a report by Global Market Insights, Inc., predicts that the worldwide industrial safety gloves market size would exceed a mammoth of USD 8 billion by the end of 2025, subject to intrinsic demand from mining, oil and gas, automotive, and medical industries.

COVID-19 Outbreak: A Catalyzer for Increased Adoption of Safety Gloves in the Medical Industry

Although safety gloves have been gaining massive prominence across various industrial domains, it has currently been witnessing huge traction from the medical sector over the past few months owing to the outbreak of novel coronavirus, an infectious disease that has claimed millions of lives while paralyzing major businesses worldwide.

Safety gloves are currently extensively being used to restrict the cross-contamination of infected or toxic substances while simultaneously ensuring the protection of hands, on the grounds of the spread of COVID-19. In this case, it would be safe to declare that the rising number of coronavirus cases would in turn propel the demand for these gloves globally, offering a huge room for various market players to develop uniquely designed gloves and leverage the profusely thriving medical sector.

An Indian healthcare company- Careway- announced offering single-use disposable hand gloves with over 100 medium-sized gloves to the public, in wake of the ongoing COVID-19 pandemic scenario.

With the mention of disposable gloves, it has been observed that disposable safety gloves have evolved to become an important segment across the industrial safety gloves market space, owing to their one time use, which helps to reduce the probability of being infected or coming into contact with an infected object or a person.

A profound reason adding to the above mentioned for the sudden demand spurt in safety gloves is the potential intervention by various central, and state governments, and other regulatory bodies. These bodies have constantly been raising various concerns regarding the spread of infection on a much larger scale. On top of that, these organizations have also been requesting the medical professional to make full use of this disposable safety equipment on the grounds of the fear of COVID-19, which is anticipated to deepen over time.

With COVID-19 cases increasing dramatically on a daily basis, the threat of the given disease is expected to still prevail in the distance, with no end in sight. This would irrefutably augment the demand for PPE, thereby stimulating the industrial safety gloves market outlook.

Will rising industrialization and automation processes stand as an ideal growth challenge for the industrial safety gloves market?

It is not an unknown fact that the adoption of automation across various industrial verticals is accelerating at a stellar pace, with robots briskly substituting manpower in the manufacturing sector. Myriad manufacturing companies have begun embracing automation attributing to its deliverance of improved operational efficiency with optimum accuracy.

However, the emergence of such advanced technologies has brought to a decline in the sales of protective equipment, which ones were the sole need for all industrial workers. Say for instance, recently announced the world’s first-ever Augmented Reality Management Platform for Industrial Enterprises, developed by Atheer Inc., would enable the hands-free mode of operation via AR devices, in turn readily eliminating the need for industrial safety gloves at manufacturing facilities.

Nevertheless, industrial safety gloves still stand to be the ideal equipment for numerous industrial workers who have been assigned to look after operations that involve potential health risks.

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Top 3 Trends Influencing the Use of Industrial Protective Fabrics

October 16th, 2020 Global Market Insights Leave a comment

Industrial protective fabrics are a key component in firemen and space suits, utility protective clothing, and healthcare as they offer resistance against superior cuts as well as chemical and hazardous aerosol. The materials are heat as well as flameproof resistant and offer enhanced employee protection and operational efficiency. Advancements in industrialization and increasing workplace accidents will drive the industry forecast over the coming years.

Milliken & Company, DowDupont, W. Barnet GmbH & Co. KG., TenCate Protective Fabrics, and Teijin Limited, are some of the key industrial protective fabric producers. Reportedly, the global industrial protective fabrics market size will reach close to USD 9 billion in remuneration annually, by 2025.

Preference for polyethylene and polypropylene materials

Polyethylene industrial protective fabrics market is expected to be valued at nearly USD 70 million up to 2025, considering its extensive use to manufacture bulletproof vests and add-on inserts, offer ballistic protection in helmets, vehicles, marine vessels, and aircraft armor panels. The demand for the products will be also driven owing to their high impact energy absorption damping as well as exterior properties.

There is a robust adoption of polypropylene fabrics across the medical and hygiene applications as well as protective clothing fabrics for patients and in surgeon drapes, referring to their anti-microbial properties. This can be owed to the provision of chemical, fatigue and heat resistance, along with translucence, semi-rigid toughness, integral hinge properties by the material.

Germany and China to outline the regional landscape

Germany industrial protective fabrics market is projected to hit a CAGR of 6.5% through 2025, taking into account the surge in construction projects resulting from increased expenditure on public infrastructure development and lower interest rate home loans. There is a consistent demand for personal protective clothing across the construction sector as the materials offer protection against falls, struck by an object, and electrical hazards.

China can be regarded as one of the leading consumers of industrial protective fabrics and the regional market is likely to record USD 950 million in yearly revenue by 2025. This is due to government support through initiatives like “Made in China 2025” that has led to increased manufacturing activities. Also, stringent norms such as the “Order no 70 by Law of The People’s Republic of China on Worker’s Safety” has mandated employee safety along with regulating safe manufacturing operations in the region.

Increased demand for safety and protection

Industrial protective fabrics market share from firemen suits is pegged at a 7.5% CAGR in the coming years, as the fabrics assist in air circulation, moisture resistance, and offer flame and chemical protection. Developments in urbanization and infrastructures have led to a higher demand for the firefighting systems.

For instance, Aramar can be touted as an industrial protective fabric specifically crafted for firefighters, forest firefighters, and safety corps. They are designed to provide utmost protection and comfort apart from rendering support in the form of insulation against heat, resistance to fire, wear, and tear.

Demand from cleanroom clothing application is estimated to bring a significant share in the coming years considering the role of the fabrics to limit the travel of particles such as dust, microbes, vapors, and aerosol from the industrial personnel to the external environment. There is a significant rise in R&D activities across the pharmaceutical and biotechnology sectors leading to the mounting demand for cleanroom facilities.

Directives like Regulation (EU) 2016/425 to provide personal protective equipment have ensured the efficient delivery of quality standards for PPE products across the European continent to offer superior protection against hazards. The products are finding extensive use in the present COVID-19 period. Implementation of OSHA general industry, as well as the construction PPE standards set by the U.S. government, have further driven employee safety.

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Vaccines Make the case for International Free Trade

August 27th, 2020 Agustin Forzani Leave a comment

Countries are planning to ban exports of vaccines to supply their own citizens first. That trade policy could have several unintended consequences.

With the pandemic already propagated worldwide and several countries experiencing a new rise in infections, governments are starting to focus on real solutions beyond lockdowns and masks. The most prominent of these solutions appears to be the development of a vaccine to treat the virus. However, such a cure brings with it what is called “vaccine nationalism,” which might end backfiring governments’ efforts to control the pandemic.

Vaccine nationalism refers to the action that some countries that are already producing the firsts trials of the potential vaccine could take if they decide to provide it to their own citizens first and prevent other nations from buying the antibody—the WHO has already requested countries to avoid this measure. The organization considers that no one will be safe if there are still outbreaks in other countries. Therefore, vaccination of a sole community without taking into account other countries will be a short-run solution.

Setting aside the public health implications of vaccine nationalism, the implementation of this strategy might have several trade policy consequences, similar to those affecting any other good subject to an export ban. Politicians could have the best intentions of trying to take care of people in their country with this policy. However, they are just considering the immediate effects of closing their borders to the exportation of vaccines and neglecting to consider the potential long-run impact on the whole community.

The total prohibition against exporting a specific good has the direct effect of reducing the final price of the product itself. In economic terms, holding the supply of the product constant, if the demand goes down due to the impossibility of exporting, the price will go down.

No one could be against lowering the price of a vaccine, because that way, more people will be able to buy it. However, this political intervention of the price does not come at no cost. Prices play a crucial role in incentivizing companies to produce whatever they consider profitable. They will be more willing to invest and hurry up the vaccine development if they know that the investments and efforts they put on it will be paid off in the future. If the price of the vaccine goes down because of the export ban, they might decide to reduce those investments and efforts. A 7.5 billion people market is much more incentive than a 300 million market.

There is also an issue with the efficiency of the economy as a whole when the government decides to intervene in foreign trade. As noted earlier, the prohibition against exporting a specific good decreases the incentive to produce that good. Resources and people will be diverted to the production of other goods and services that are more valuable, given the price reduction of the product that has its exports prohibited. The economy probably had a comparative advantage in manufacturing that product, but that will not be exploited fully anymore. Less efficient industries will increase in size at the expense of the most efficient ones. Therefore, the net effect is a change in the structure of the economy and a reduction of its efficiency.

Likewise, this distortion of the economy will probably happen with vaccine nationalism. A country might be relatively more efficient than another in producing a vaccine, maybe manufacturing it cheaply or with higher quality. However, resources will not flow quickly to its manufacturing if its price is held down artificially. Resources and people will be employed in the production of less valuable products, losing the opportunity to produce more efficiently a vaccine.

Restricting exports also presents an indirect consequence of decreasing a country’s imports through the reduction of its purchasing power. Exports pay for imports, and vice versa. The more a country exports, the more it should import. Conversely, reducing exports undercuts imports. Without exports, a nation cannot import. As any other family must sell some goods or services in order to get the purchasing power to buy something else, a country must export to be able to import. There resides the real gain of foreign trade. Through imports, consumers can get from abroad products at lower prices than domestically or goods that they are not capable of finding at home.

If vaccines are banned from being exported, that will mean that the country will see its imports decrease. No vaccines exported will reduce the possibility of importing, say, more ventilators, or masks. Given the novelty of this virus, countries are almost walking in the darkness. There is no certainty of what works and what does not. What happens if the vaccine ends up not working as expected? The government will see itself in a crossroads, with fewer funds to import from abroad products that it might require with urgency.

Finally, vaccine nationalism could have geopolitical consequences as well. The strategy could increase future retaliation from other countries. If the country that decides to prohibit exports of its vaccine then happens to have problems with its implementation, it will not be able to go to another country to ask for help. Again, there is no absolute solution for a global pandemic. Isolating from the rest of the world is undoubtedly the worst idea. 7.5 billion people looking for solutions is better than just 300 million people.

Banning the exportation of vaccines will bring many unintended consequences and end up being a bad strategy in the long run. Given the public attention that a potential cure for the virus possesses, hopefully, governments will understand that international free trade is the solution.

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Mr. Forzani is an MA student in economics at George Mason University.

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COVID-19 Trade Update: FEMA Implements Export Controls and Exclusion Guidance for Personal Protective Equipment

May 20th, 2020 Alan Enslen and Julius Bodie Leave a comment

On April 3, 2020, President Trump issued a Presidential Memorandum directing the Department of Homeland Security, through the Federal Emergency Management Agency (“FEMA”), to utilize the Defense Production Act to restrict the export of scarce domestic materials being used to respond to the spread of COVID-19, including certain personal protective equipment (“PPE”).

Effective Tuesday, April 7, FEMA implemented this Order through a Temporary Final Rule (the “TFR”) that restricts U.S. exports of 5 specific categories of PPE products that were previously designated by the Department of Health and Human Services (“HHS”) as “scarce or threatened materials.” Both U.S. Customs and Border Protection (“CBP”) and FEMA have since issued additional guidance on the TFR that provides further detail on the scope of the restrictions as well as key exclusions for certain U.S. exporters.

The TFR differs from traditional U.S. export control regulations, such as those administered by the U.S. Departments of Commerce and State, in that there is no licensing system in place and FEMA’s determination is not based on the proposed end-use or end-user of the product – rather, FEMA will assess all U.S. exports of designated PPE materials and reallocate those products domestically as required. Because FEMA is not an agency that traditionally administers U.S. export control regulations, it is critical for manufacturers, suppliers, and distributors of PPE products and related medical materials to be aware of the specific articles impacted by the TFR, the scope of the restrictions, the timeline for implementation, consequences for non-compliance, and the potential for expanded product coverage.

PPE Export Restrictions Overview

The TFR providing for PPE export restrictions is effective as of April 7, 2020 for a period of 120 days. The TFR designates 5 of 15 categories of materials previously identified as “scarce or threatened materials” by HHS. In particular, the subject restricted PPE “covered materials” are the following:

-N-95 Filtering Facepiece Respirators, including devices that are disposable half-face-piece non-powered air-purifying particulate respirators intended for use to cover the nose and mouth of the wearer to help reduce wearer exposure to pathogenic biological airborne particulates;

-Other Filtering Facepiece Respirators (e.g., those designated as N99, N100, R95, R99, R100, or P95, P99, P100), including single-use, disposable half-mask respiratory protective devices that cover the user’s airway (nose and mouth) and offer protection from particulate materials at an N95 filtration efficiency level per 42 CFR 84.181;

-Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges;

-PPE surgical masks, including masks that cover the user’s nose and mouth and provide a physical barrier to fluids and particulate materials; and

-PPE gloves or surgical gloves, including those defined at 21 CFR 880.6250 (exam gloves) and 878.4460 (surgical gloves) and such gloves intended for the same purposes.

Before any shipments of the above-listed PPE materials can be exported from the U.S., CBP will temporarily detain the shipment so that FEMA can determine whether to (i) prohibit the export and return the shipment for domestic use; (ii) utilize the Defense Product Act (“DPA”) to issue a “rated order” for the materials (a priority contract or order placed in support of a national defense program under the DPA), or (iii) allow the export of part or all of the shipment.

In making its determination, FEMA may consider the following factors: (1) the need to ensure that scarce or threatened items are appropriately allocated for domestic use; (2) minimization of disruption to the supply chain, both domestically and abroad; (3) the circumstances surrounding the distribution of the materials and potential hoarding or price-gouging concerns; (4) the quantity and quality of the materials; (5) humanitarian considerations; and (6) international relations and diplomatic considerations.

Scope and Exemptions

On April 9, 2020, CBP issued an updated internal guidance memorandum (the “CBP Internal Guidance”) to its field operators to clarify key definitions and general exceptions to the PPE export restrictions provided for in the TFR. CBP highlighted that the focus of the TFR is on “commercial quantities” of PPE exports, currently defined as shipments valued at $2,500 or more and containing more than 10,000 units.

The CBP Internal Guidance then lists the following export circumstances that are excluded from the FEMA restrictions:

-Exports to Canada or Mexico;

-Exports to U.S. government entities such as U.S. military bases overseas;

-Exports by U.S. Government agencies;

-Exports by U.S. charities;

-Exports by critical infrastructure industries for the protection of their workers;

-Exports by the 3M Company;

-Express or Mail Parcels that do not meet the “commercial quantity” definition above;

-In-transit shipments.

On April 21, 2020, FEMA published additional guidance in the Federal Register on the full scope of the initial list of 10 exemptions, which are described as follows:

-Shipments to U.S. Commonwealths and Territories, including Guam, American Samoa, Puerto Rico, U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands (including minor outlying islands).

-Exports of “covered materials” by non-profit or non-governmental organizations that are solely for donation to foreign charities or governments for free distribution (not sale) at their destination.

-Intracompany transfers of “covered materials” by U.S. companies from domestic facilities to company-owned or affiliated foreign facilities.

-Shipments of “covered materials” that are exported solely for assembly in medical kits and diagnostic testing kits destined for U.S. sale and delivery.

-Sealed, sterile medical kits and diagnostic testing kits when only a portion of the kit is made up of one or more “covered materials” that cannot be easily removed without damaging the kits.

-Declared diplomatic shipments from foreign embassies and consulates to their home countries.

-Shipments to overseas U.S. military addresses, foreign service posts (e.g. diplomatic post offices), and embassies.

-In-transit merchandise: Shipments in transit through the U.S. with a foreign shipper and consignee, including shipments temporarily entered into a warehouse or temporarily admitted to a foreign trade zone.

-Shipments for which the final destination is Canada or Mexico.

-Shipments by or on behalf of the U.S. federal government, including its military.

Certain exclusions will require the submission of a letter of attestation certifying to FEMA the purpose of the shipment of covered materials that will also be placed on file with CBP.

Practical Advice and Next Steps

All U.S. manufacturers, suppliers, and distributors of PPE materials or other products designated by HHS as “scarce or threatened” (the relevant HHS guidance can be found here) that are considering exporting their products for sale need to have a comprehensive understanding of the FEMA TFR and applicable export restrictions. It may be the case that additional FEMA guidance will be issued regarding products identified by HHS as “scarce or threatened” in connection with the fight against the spread of COVID-19, and those additional items could be added to the list of restricted products for exports, including portable ventilators and certain drug treatment products that contain chloroquine phosphate or hydroxychloroquine HCl. Additional export, exporter or product-based exclusions may be issued in the finalized published FEMA/CBP guidance as well.

In the meantime, U.S. exporters of PPE products can expect delays at CBP ports around the country as FEMA and CBP develop and implement the TFR and related policy guidance. If you have any questions about the TFR, the impact of the TFR on exports of PPE products, or whether a particular product or proposed export is covered by a CBP exclusion, please contact a member of Baker Donelson’s Global Business Team.

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Alan Enslen is a shareholder with Baker Donelson and leads the International Trade and National Security Practice and is a member of the Global Business Team. He can be reached at aenslen@bakerdonelson.com.

Julius Bodie is an associate with Baker Donelson who assists U.S. and foreign companies across multiple industries with international trade regulatory issues. He can be reached at jbodie@bakerdonelson.com.

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COVID-19 Trade Update: FEMA Implements Export Controls for PPE as CBP Issues Guidance Restrictions

April 24th, 2020 Alan Enslen and Julius Bodie Leave a comment

On April 3, 2020, President Trump issued a Presidential Memorandum directing the Department of Homeland Security, through the Federal Emergency Management Agency (FEMA), to utilize the Defense Production Act to restrict the export of scarce domestic materials being used to respond to the spread of COVID-19, including certain personal protective equipment (PPE).

Effective Tuesday, April 7, FEMA implemented this Order through a Temporary Final Rule (the TFR) that restricts U.S. exports of five specific categories of PPE products that were previously designated by the Department of Health and Human Services (HHS) as “scarce or threatened materials.”

U.S. Customs and Border Protection (CBP) has since issued its own internal guidance on the TFR that provides further detail on the scope of the restrictions as well as key exclusions for certain U.S. exporters.

PPE Export Restrictions Overview

The TFR providing for PPE export restrictions is effective as of April 7, 2020 for a period of 120 days. The TFR designates five of fifteen categories of materials previously identified as “scarce or threatened materials” by HHS. In particular, the subject restricted PPE materials are the following:

-Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges;

-PPE surgical masks, including masks that cover the user’s nose and mouth and provide a physical barrier to fluids and particulate materials; and

-PPE gloves or surgical gloves, including those defined at 21 CFR 880.6250 (exam gloves) and 878.4460 (surgical gloves) and such gloves intended for the same purposes.

Before any shipments of the above-listed PPE materials can be exported from the U.S., CBP will temporarily detain the shipment so that FEMA can determine whether to:

-Prohibit the export and return the shipment for domestic use;

-Utilize the Defense Product Act (DPA) to issue a “rated order” for the materials (a priority contract or order placed in support of a national defense program under the DPA); or

-Allow the export of part or all of the shipment.

In making its determination, FEMA may consider the following factors:

-The need to ensure that scarce or threatened items are appropriately allocated for domestic use;

-Minimization of disruption to the supply chain, both domestically and abroad;

-The circumstances surrounding the distribution of the materials and potential hoarding or price-gouging concerns;

-The quantity and quality of the materials;

-Humanitarian considerations; and

-International relations and diplomatic considerations.

Scope and Exemptions

On April 9, 2020, CBP issued an updated internal guidance memorandum (CBP Internal Guidance) to its field operators to clarify key definitions and general exceptions to the PPE export restrictions provided for in the TFR.

First, CBP highlights that the focus of the TFR is on “commercial quantities” of PPE exports, currently defined as shipments valued at $2,500 or more and containing more than 10,000 units.

The CBP Internal Guidance then lists the following export circumstances that are excluded from the FEMA restrictions:

-Exports to Canada or Mexico;

-Exports to U.S. government entities such as U.S. military bases overseas;

-Exports by U.S. Government agencies;

-Exports by U.S. charities;

-Exports by critical infrastructure industries for the protection of their workers;

-Exports by the 3M Company;

-Express or Mail Parcels that do not meet the “commercial quantity” definition above;

-In-transit shipments.

However, it is important to note that as of April 16, the Internal CBP Guidance on exclusions for the TFR has not been formally published in the Federal Register or elsewhere by CBP, and may be subject to additional revisions in its final form.

Practical Advice and Next Steps

All U.S. manufacturers, suppliers, and distributors of PPE materials or other products designated by HHS as “scarce or threatened” (the relevant HHS guidance can be found here) that are considering exporting their products for sale need to have a comprehensive understanding of the FEMA TFR and applicable export restrictions. Expect additional CBP and/or FEMA guidance in the near future with refined definitions, clarifications as to how the exclusions will be administered, and further details on how product definitions will be determined. It may be the case that additional products identified by HHS as “scarce or threatened” in connection with the fight against the spread of COVID-19 will be added to the list of restricted products for exports, including portable ventilators and certain drug treatment products that contain chloroquine phosphate or hydroxychloroquine HCl. Additional export, exporter, or product-based exclusions may be issued in the finalized published FEMA/CBP guidance as well.

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