Us Combating Customs Fraud? Introduction Of Textile Enforcement Act

The issue of free trade: the US textile industry leaders complain that Chinese textile yarns are spanported to free trade countries, but are labeled as American yarns, woven into fabrics, then cut into garments, and then enter the United States in the form of tariffs.

Over the years, yarn and cloth factories have complained that the free trade agreement is designed to strengthen the textile industry in the United States, but foreign production of yarn impersonation of American yarn is exempt from entry into the United States and undermines the design tenet of the free trade agreement.

At the same time, the leaders of the US textile industry believe that many american apparel importers underestimate the clothing imported from China to avoid higher tariffs and create unfair competition for the United States. It is believed that the loss of customs revenue is more than 1 billion dollars.

To remedy this situation, dozens of members of Parliament put forward a bill in May 25th to strengthen the law enforcement of customs border and conduct more examination on imported textiles.

In 2010, the textile law enforcement and Safety Act was the first textile enforcement law for customs enforcement. It was put forward by Larry Kissell (DN.C.), a member of Parliament, and was supported by members of several southern states and members of the two party parliamentarians. The textile industry in the southern part of the country was strongest.

The legislation will provide the US customs with the necessary tools, resources and effective way to implement trade law, so as to create a level playing field for American workers.

Customs fraud is nothing new, but the leaders of the textile industry believe that fraudulent practices are rampant. On May 20th, Cass Johnson, chairman of the National Committee of the Textile Organization of the United States (Cass Johnson), said on the house trade sub committee that illegal importers shipped illegal yarn to free-trade agreement countries, and after producing clothing, they entered the United States with zero tariff, and the price of each garment was reduced by 15%. Asian yarns are not subject to zero tariff conditions. Since textiles and clothing account for 46% of us customs revenue and tax revenue is close to US $12 billion a year, we have huge stakes and free trade areas have great attraction for fraudulent activities.

The US industry reports that illegal activities are increasing compared with 5 years or 10 years ago. It is widely felt that fraudulent importers and producers have identified loopholes in the free trade system, and they are making profits from these loopholes.

Johnson pointed out that the 2008 report of the general accounting office of the federal government investigative agency found that the customs levied less than $500 million in anti-dumping and countervailing duties. Recent reports have found that the underestimation of textiles and clothing from China is particularly serious. He said one example would be that a female garment importer in New York might be able to evade taxes by up to $50 million or even higher.

Chinese goods are being underestimated by counterfeiting companies entering the Losangeles port. China's underrated clothing is tax evasion in the Central American Free Trade Agreement, the North American Free Trade Agreement and the Andean region. The annual loss of the US Treasury may exceed $1 billion.