Smuggling Of Imported Garments Is Becoming More And More Serious In Mexico

The textile and garment industry in Mexico is expected to recover in this (2010) year, but will continue to crack down on the increasingly rampant smuggling of textiles and clothing in Mexico. According to statistics, the sales of garments imported from Mexico accounted for 60% of the clothing trade in Mexico, compared with 50% a few years ago.

Due to the increase in orders in the US market from the recovery of the economy and the production of high value added products and FullPackage by Mexican manufacturers, Mexico's textile and clothing exports will grow by 7% to 7 billion 500 million US dollars this year.

GeorginaCh vez, director of the Mexico Apparel Industry Association (CNIV), told the media that "Mexico textile and garment industry lost 50000 jobs in 2008-2009, but increased by 12000 in May this year compared with the same period last year." this is good news. In addition, textiles and garments imported from China have also decreased.

However, exports account for only 35% of the textiles and clothing market in Mexico. Therefore, ensuring the stability of Mexico's domestic sales market is crucial. In recent years, the illegal clothing trade in Mexico has been rampant, which has a great impact on the domestic textile industry in Mexico. According to CNIV statistics, 5 of the 10 garments sold in Mexico were estimated to be imported illegally 3 years ago, and have increased to 6 in recent years.

Phantom enterprise

In recent years, illegal activities of phantom enterprises engaged in technical smuggling have been aggravated by Ch vez. Hundreds of such enterprises have sole purpose to reduce the price of imported garments and reduce tariffs.

Ch vez pointed out that "in the past two years, under the condition of insufficient police force in Mexico, the number of garments imported at low prices has increased dramatically, mostly from Malaysia, Indonesia and Kampuchea". "One company imported from Malaysia has a price of $0.12, and everyone knows the price is unreasonable."

Lobbyists in CNIV and other textile industries have put pressure on Mexico Government to crack down on illegal businesses. Ch vez said that the government of Mexico should also focus more on how to prevent smuggling and identify the source of smuggled products in addition to sanction such enterprises. However, the current trade in smuggling and counterfeit clothing continues to surge. Ch vez expects the government of the Mexico Government to issue new decrees so that most Street traders who are engaged in smuggling and counterfeit clothing can be brought to justice.

Ch vez said, "now anyone selling clothes in the street must show that they are legal. If they fail to show that they are legal, they should be caught in prison."