US House Of Representatives Proposal To Combat Textile And Clothing Fraud

In the middle of October this year, the US Senate proposed the Senate version of the textile enhancement search and security act to end the customs legislation.

The proposal of TESA is to increase the enforcement authority of customs border protection and improve resources through objectives.

CassJohnson, President of the NationalCouncilofTextileOrganizations (NCTO), said that the rapid increase in illegal activities of textiles seen in the past 5 years is critical to the integrity of the US trade preferences scheme (including free trade agreements) and the implementation of the textile industry.

NCTO claims that the proliferation of textile trade fraud has made the textile industry's job opportunities and business opportunities at risk and crisis.

NCTO pointed out that the usual means of fraudulent practices used by illegal exporters are exactly the same as those used to evade countervailing duties and dumping duties: including illegal pshipment of goods, low value of products and labels of labels on the wrong places, while counterfeiting companies often give false names to avoid being seized by customs officers.

NCTO also pointed out that the inspection of textiles fraud cases by the Customs was beset by the lack of resources, the reduction of customs officers and the increasing complexity of fraudulent practices.

According to NCTO, 40% of the overseas factories visited by the US Customs Department did not comply with the relevant laws and regulations, but last year, only 43 items of textile fraud were issued for the 5 million products.

According to the estimate, the loss of federal revenue by evasion of textile tariffs has exceeded US $1 billion.