U.S. Textile Industry Calls for Crackdown on Customs Fraud

The National Council of Textile Organizations (NCTO), spanning the entire spectrum of U.S. textiles from fiber to finished sewn products, issued a statement today applauding a House Textile Caucus-led letter urging the Department of Homeland Security (DHS) to strengthen customs enforcement and combat widespread fraud that is harming American textile manufacturers.

“Unfortunately, for decades, the American textile industry has suffered greatly from customs fraud and abuse by foreign competitors and organized crime,” the bipartisan group of House lawmakers state in a letter to DHS Secretary Markwayne Mullin. “Our trade policies and tariff structures are only as effective as their enforcement. As you begin your role as Secretary, we urge you to review and ensure the U.S. Customs and Border Protection (CBP) is properly oriented and outfitted to fully enforce our customs laws.”

The letter, led by House Textile Caucus Co-Chairs Reps. David Rouzer (R-NC) and Adriano Espaillat (D-NY), was signed by 14 additional House lawmakers. They further call on DHS to “develop and institute a comprehensive textile enforcement program” that includes: revoking trade privileges, publicly listing and instituting stronger penalties for repeat offenders; increased audits, lab testing and verification of free trade agreement claims; and timely publication of enforcement statistics.

NCTO President and CEO Kim Glas, said: “I sincerely thank Congressman Espaillat and Congressman Rouzer for leading these efforts and strongly commend the bipartisan group of lawmakers for taking the lead in calling on Secretary Mullin and his agency to take urgent action to address a wide range of illegal trade practices that are severely impacting the U.S. textile and apparel industry.”

“This letter sends a powerful message that customs fraud, illegal transshipment, and tariff evasion are rampant and must be stopped. These illegal trade practices cost American jobs, undermine legitimate manufacturers, weaken our trade agreements, and deprive the U.S. Treasury of billions of dollars in revenue,” Glas said. “The industry looks forward to working with Congress, DHS, and CBP to strengthen enforcement efforts and ensure a level playing field for American textile manufacturers and workers.”