CBP's Fiscal Year 2023 Textile Enforcement Stats Highlight Protection of American Industry

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Published: Wednesday, 01 November 2023 02:00

U.S. Customs and Border Protection (CBP) recently released its fiscal year 2023 textile enforcement statistics, underlining the agency's dedicated efforts to safeguard American workers and legitimate importers by cracking down on unlawful textile imports that aim to circumvent U.S. trade laws, including those tied to U.S. trade agreements.

In fiscal year 2023, CBP executed robust enforcement actions, including:

  1. Seizure of Over 5,000 Textile Shipments: CBP seized more than 5,000 textile shipments with a total value exceeding $129 million. These actions target imports attempting to bypass U.S. trade regulations.
  2. Commercial Fraud Penalties: CBP issued approximately $67.2 million in commercial fraud penalties, demonstrating the agency's commitment to penalize those engaging in unlawful trade practices.
  3. Audits and Duty Recovery: CBP's audits identified over $2 million in additional duties owed to CBP, further strengthening the agency's ability to enforce trade regulations.
  4. Laboratory Analysis and Verification Visits: Laboratory analysis was conducted on 323 shipments, and a notable 42% were found to be mis-declared or mis-described upon arrival in the United States. Furthermore, CBP conducted verification visits to international factories exporting textiles and apparel to ensure compliance with preferential duty treatment claimed on imports.
  5. Factory Verification Visits: In FY 2023, CBP carried out 57 factory verification visits through its Textile Production Verification Team program, leading to the recovery of approximately $340,000 in duties and potential additional enforcement actions.

AnnMarie R. Highsmith, Executive Assistant Commissioner for CBP's Office of Trade, highlighted the significance of the textile industry, which employs over half a million Americans. Highsmith emphasized that CBP's actions directly impact the jobs and livelihoods of numerous Americans and their families.

CBP operates an e-Allegations portal enabling the public to report suspected violations of trade laws or regulations related to imported goods. In fiscal year 2023, CBP received 30 textile-related e-allegations.

The textile sector holds critical importance within the U.S. economy and is one of seven Priority Trade Issues for CBP. It is worth noting that the domestic textile industry ranks as the third-largest exporter of textile-related products globally. The U.S.-produced textiles, such as yarn and fabric, are often incorporated into finished apparel and various textile products within countries that participate in free trade agreements with the U.S., making them eligible for duty-free benefits.

Textiles usually carry higher duty rates in comparison to other U.S. imports, with some reaching as high as 32%. Violators resort to various tactics, such as misrepresenting the country of origin, mislabeling, and undervaluing shipments, to circumvent trade duties. These fraudulent practices undermine legitimate trade and pose a threat to U.S. jobs.

CBP remains steadfast in its commitment to thwart fraudulent trade practices and penalize those individuals and entities attempting to evade textile tariffs and trade laws. By doing so, CBP ensures fair competition, preserves the U.S. domestic industry, and safeguards U.S. economic security.