From the Sector

The European Textile and Clothing industry (EURATEX) welcomes the proposed reforms to the EU's customs system, emphasizing the need for a modernized framework that addresses the challenges of the digital age and fosters a level playing field.

“Customs play a critical role in safeguarding fair competition within the EU Single Market and ensuring that products meet our environmental and safety standards,” states Dirk Vantyghem, EURATEX Director General. “We recognize the need for a reformed system adapted to the 21st century, particularly considering the growth of e-commerce and the increasing complexity of regulations.”

EURATEX highlights key priorities for a successful reform:

• Phasing Out De Minimis Exemption: EURATEX strongly supports abolishing the €150 import duty exemption for small consignments. This exemption has been exploited by e-commerce companies, creating unfair competition for European manufacturers. EURATEX urges immediate action to eliminate this loophole, rather than waiting until 2028.
• Harmonization and Streamlining: The organization calls for a unified customs regime across the EU, with simplified procedures and reduced administrative burdens for businesses, especially SMEs. This includes avoiding duplication of efforts and ensuring seamless interoperability between different customs information systems.
• Data Security and Transparency: EURATEX emphasizes the importance of robust data security measures within the proposed EU Data Hub. Clear regulations on data access, ownership, and cybersecurity safeguards are essential. Open collaboration between industry and policymakers is crucial in designing the Data Hub for optimal functionality.
• Effective Implementation of Trust & Check Trader (T&CT): The T&CT status offers potential benefits for companies through features like self-assessment. However, EURATEX raises concerns about practical implementation, particularly for SMEs struggling to obtain existing Authorized Economic Operator (AEO) statuses. Providing support for SMEs in obtaining this status is crucial.
• Interoperability and Data Sharing: EURATEX emphasizes the importance of the EU Data Hub's interoperability with various IT systems. Also, a uniform central IT network facilitating national and other legal requirements would be a significant step forward.
• Structured Dialogue with Stakeholders: The establishment of the EU Customs Authority (EUCA) is seen as a positive development for coordinating customs enforcement across the EU. EURATEX recommends a dedicated dialogue between the EUCA and stakeholders, including industry representatives, to improve overall coordination and effectiveness.

Textile Groups Urge U.S. to Maintain Penalty Tariffs on Finished Products

The Biden administration should maintain Section 301 penalty tariffs on finished textiles and apparel or risk reversing once-in-a-lifetime nearshoring trends and undermining critical investments and jobs in the U.S. and Western Hemisphere, three key American textile manufacturing groups said today.

In a formal submission to the U.S. Trade Representative’s (USTR) office, which is conducting a four-year statutory review of the tariffs, the associations expressed strong support for the continuation of penalty tariffs on imports from China and warned of the consequences associated with removing the tariffs.

“A key aspect of [the Biden administration’s trade] policy is the need to maintain Section 301 tariffs, absent substantive improvements in China’s pervasive, predatory trade practices,” the groups said. Lifting the tariffs “would also do nothing to achieve the administration’s goal of easing inflationary pressures, as apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs,” they noted.

The submission was filed by the National Council of Textile Organizations (NCTO) and the Narrow Fabrics Institute (NFI) and Industrial Fabrics Institute (USIFI) – both divisions of the Advanced Textiles Association (ATA).  The associations represent the entirety of the U.S. textile production chain.

“For decades, China’s illegal actions have undermined virtually every domestic manufacturing sector and contributed to the direct loss of millions of U.S. jobs. These devastating state-sponsored practices include intellectual property theft as well as pervasive state-ownership of manufacturing, industrial subsidies, and abhorrent labor and human rights abuses in the Xinjiang region,” they noted. “Cancelling these tariffs would create further unhealthy dependence on Chinese supply chains and embolden future systematic trade abuses as bad actors know that the U.S. will not hold them accountable.”

The tariffs were imposed on China beginning in 2018 in response to China’s continuing IP and related trade violations. China has since failed to comply with an agreement it reached with the United States in 2020.