DHS Cracks Down on Illegal Textile Trade to Support U.S. Jobs


Trade Update • April 8, 2024

DHS Cracks Down on Illegal Textile Trade to Support U.S. Jobs
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he Department of Homeland Security (DHS) is boosting efforts to fight illegal trading to support the American textile industry, safeguarding over 500,000 jobs. Agencies like U.S. Customs and Border Protection (CBP) and Homeland Security Investigations (HSI) will increase actions against customs violations to protect the market and maintain job security. Their plan includes intensified targeting of small package shipments; joint trade special operations; increased customs audits and foreign verifications; and the expansion of the Uyghur Forced Labor Prevention Act (UFLPA) Entity List.

The Plans Focus

  • Cracking down on small package shipments to prohibit illicit goods from U.S. markets by improving screening of packages claiming the Section 321 de minimis exemption for textile, UFLPA, and other violations, including expanded targeting, laboratory and isotopic testing, and focused enforcement operations.
  • Conducting joint CBP-HSI trade special operations to ensure cargo compliance. This includes physical inspections; country-of-origin, isotopic, and composition testing; and in-depth reviews of documentation. CBP will issue civil penalties for violations of U.S. laws and coordinate with HSI to develop and conduct criminal investigations when warranted.
  • Better assessing risk by expanding customs audits and increasing foreign verifications. DHS personnel will conduct comprehensive audits and textile production verification team visits to high-risk foreign facilities to ensure that textiles qualify under the U.S.-Mexico-Canada Agreement (USMCA) or the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). CBP recently visited 31 facilities in Mexico—the first such visits under USMCA—as well as 18 facilities in Honduras, and is on track to double the number of total foreign verification visits compared to last year.
  • Building stakeholder awareness by engaging in an education campaign to ensure that importers and suppliers in the CAFTA-DR and USMCA region understand compliance requirements and are aware of CBP’s enforcement efforts.
  • Leveraging U.S. and Central American industry partnerships to improve facilitation for legitimate trade.
  • Expanding the UFLPA Entity List to identify malign suppliers for the trade community through review of additional entities in the high-priority textile sector for inclusion in the UFLPA Entity List.

Implementation of Plan

The DHS has started this plan, building on ongoing compliance efforts. Achievements include launching special operations for thorough inspections, auditing over $10.5 billion in textile imports, verifying compliance in numerous foreign facilities, and expanding the UFLPA Entity List to halt illegal shipments.

The Biden-Harris Administration aims to boost economic growth in Central America, addressing migration causes and advancing secure textile trade. DHS’s actions, including expanding the UFLPA Entity List, show a commitment to fair trade and human rights, ensuring that businesses comply with labor laws and trade agreements.

“We are dedicated to ensuring a fair and level playing field for American businesses,” said Secretary Alejandro N. Mayorkas. “The textile industry, like others industries, suffers when competitors use forced labor, violate customs laws, and engage in other illegal practices to undercut U.S. businesses and drive prices unfairly low. Through strengthened enforcement measures, enhanced inspection and testing, and increased information sharing, this Administration is protecting thousands of American workers and the U.S. textile industry.”

Additional Resources

Full information on this can be found here.

For questions or concerns about if your products are affected please contact us.

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