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September 27, 2021

US Customs increases textile trade enforcement measures in Q3

Textile and apparel goods are susceptible to fraud due to their high duty rates.

By Michelle Russell

US Customs and Border Protection (CBP) saw increases in some measures used to enforce trade laws and regulations governing textiles in the third quarter of 2021, including factory visits and audits, and collected more duties, according to new data.

Textile and apparel goods have some of the highest duty rates of all commodities imported into the US making them susceptible to fraud. Textile risks include: schemes designed to circumvent textile tariff and trade laws include false invoicing, false marking and labelling, false claims of origin, illegal transshipment, misdescription, undervaluation, false declarations of right to make entry, false trade preference claims, and outright smuggling.

Therefore, textiles have long been a CBP Priority Trade Issue (PTI) for enforcement efforts.

In the third quarter, CBP collected US$701m in Section 301 duties compared to $697m in the prior quarter.

Cargo examinations were up, totalling 3,946 from 3,578 in the second quarter of the financial year. 12 audits were also completed, up from ten a quarter prior, while one special enforcement operation was completed.

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