June 23, 2010

A bipartisan coalition of Congress has introduced the first ever textile-specific customs enforcement legislation to address textile and apparel fraud at U.S. ports and borders.

The Textile Enforcement and Security Act of 2010 will provide U.S. Customs with the necessary tools, resources, and direction to effectively enforce U.S. trade laws. The comprehensive customs enforcement bill focuses mainly on abuses of preferential trade agreements in which textile and apparel products from participating countries enjoy duty-free entry into the United States.

According to the National Council of Textile Organizations (NCTO), during the last decade, the industry has seen an increase of fraudulent activity, from front companies posing as legitimate U.S. companies, to undervalued goods, to illegal preference and free trade agreement claims.

Some of the provisions of the bill include: establishing an electronic verifications system for textiles and apparel; allowing the Department of Homeland Security to use fines and penalties to help pay for investigations and training; and increasing the staff and providing more training for textile and apparel specialists at high-volume ports.

Industry groups including the NCTO, American Fiber Manufacturers Association, American Manufacturing Trade Action Coalition, and National Cotton Council expressed support for the bill.

Full article. (Textile World)

Text of Textile Enforcement and Security Act Bill. (The Library of Congress)