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Foreign Textile and Apparel Factory Visits Find Increase in Violations

Wednesday, March 22, 2017
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection recently provided to the American Apparel and Footwear Association the following information on the results of CBP textile production verification team visits conducted in fiscal year 2016 (Oct. 1, 2015, through Sept. 30, 2016). TPVTs visit textile and apparel exporting countries to review company records and operations to determine if illegal transshipment or improper shipping under trade preference programs or free trade agreements is occurring.

According to the AAFA, the FY 2016 figures show that about twice as many targeted factories reported some sort of illegal transshipment-related problem as in FY 2015. In addition, the FY 2016 figures for trade preference violations were the highest since FY 2007.

CBP states that shipments from closed or high-risk factories (those unable to provide production records to satisfy CBP of the origin of the goods) will be scrutinized and validated by CBP.

Illegal Transshipment Verifications

 

Country/Date

Factories Visited

Closed

Evidence of Transshipment

High Risk

Refused Admission/Docs

Nicaragua – 05/16

17

0

0

0

0

Peru – 05/16

21

3

0

7

0

Ghana – 05/16

6

1

0

0

0

Kenya – 07/16

19

2

0

2

0

Dominican Rep. – 07/16

22

3

0

2

0

El Salvador – 08/16

22

0

0

1

0

Guatemala – 08/16

20

0

0

0

0

Lesotho – 09/16

8

0

0

0

0

Morocco – 09/16

14

6

0

1

0

                                                                                                                   

Verifications under FTAs or Preference Programs

 

Country

Factories Visited

Violating Preference Programs

Insufficient Docs to Support Program Claims

 

Compliant

Nicaragua

17

0

0

17

Peru

21

1

14

5

Ghana

6

0

2

4

Kenya

19

0

5

14

Dominican Rep.

22

2

10

10

El Salvador

22

3

2

17

Guatemala

20

2

0

18

Lesotho

8

0

0

8

Morocco

14

2

7

5

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