Oakland to ban dirty trucks to cut diesel pollution

US CUSTOMS has failed to protect an already tattered American textile industry from importers who dodge tariffs, textile manufacturers told a congressional committee.

Dan Nation, representing the National Council of Textile Organisations, told the House Small Business Committee that a lack of customs enforcement in North American Free Trade Agreement and Central American Free Trade Agreement has led to the loss of 1,200 job at his North Carolina company over six years.

"Evidence of customs fraud in yarn shipments to NAFTA and CAFTA countries has grown exponentially," said Mr Nation, who is also division president for Gastonia, of North Carolina's Parkdale Mills, reported American Shipper. "Duty avoidance makes these companies more competitive with pricing, which takes US jobs away from very competitive US companies."

Mr Nation said American yarn spinners are required to provide an affidavit certifying that the yarn is produced in the United States, giving the garment made in the CAFTA country duty-free access when shipped back to the United States.

Dan Baldwin, assistant US Customs commissioner said the agency "maintains a robust trade enforcement programme," and because of the economic and political sensitivities involving textile imports has identified the commodity as one of the seven Priority Trade Issues. Textile imports still generate more than 42 per cent of the annual duties collected.

Mr Baldwin said trade preference programmes present a "significant enforcement challenge" to the agency due to their complexities involving rules of origin and duty-free treatment.

On January 1, textile quotas were also eliminated for China. "As a result, [customs] has prepared for a major shift in enforcement from quota admissibility issues to revenue protection and compliance with trade preference requirements," he said.

(Source: News and Data Online)