US Senate House Proposal To Combat Textile Fraud Cases
The US Senate proposed in mid October of this year.
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The "Textile Enforcement and Security Act (TESA)" was adopted to crack down on the loopholes in the customs law enforcement and increase the appropriation to combat the illegal trafficking of textile yarn and tax evasion. The Senate version of the proposal for the textile industry was proposed in August this year, and 19 supporting measures have been put in place.
The proposal of TESA is to increase the law enforcement authority of customs border protection, and to promote trade facilitation through target improvement, increasing resources and strengthening law enforcement power. The proposal has been supported by the US textile industry.
Cass Johnson, President of the National Council of Textile Organizations (NCTO), said the illegal activities of textiles seen in the past 5 years have increased dramatically.
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The integrity and implementation of trade preferences schemes, including free trade agreements, have been critical to 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 customs carried out textile fraud cases.
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It is beset by lack of resources, the reduction of customs officers and the increasing complexity of fraudulent means.
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.
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