Background

U.S. Customs and Border Protection saw increases in some measures of its efforts to enforce trade laws and regulations governing textiles in the second quarter of 2021, including liquidated damages claims, seizures, and cargo exams, but decreases in others, including fraud penalties, according to recently-released statistics.

For more information on trade-related issues affecting textiles and apparel, please contact attorney Elise Shibles at (415) 490-1403 or via email.

Textile and apparel goods have some of the highest import duty rates in the U.S. and may also be subject to Section 301 additional tariffs if imported from China. Schemes designed to circumvent these tariffs include false invoicing, false marking and labeling, false claims of origin, illegal transshipment, misdescription, undervaluation, false declarations of the right to make entry, false trade preference claims, and smuggling.

Textile and apparel goods are thus a top priority for CBP enforcement efforts. The chart below highlights trends in these efforts over the previous quarter and the past year.

 

2Q 2021

1Q 2021

2Q 2020

Section 301 duties collected

$697 million

$748 million

$825 million

Factory visits

0

0

13

% factories discrepant

n/a

n/a

69

Non-IPR seizure number

124

123

182

Non-IPR seizure value

$4 million

$1.05 million

$1.4 million

IPR seizure number

1,368

1,206

1,745

IPR seizure value

$7.7 million

$8.9 million

$4.7 million

Commercial fraud penalties

2

3

3

Commercial fraud penalty value

$158,000

$358,000

$98,000

Liquidated damages claims

254

101

69

Cargo examinations

3,608

3,089

2,852

% cargo shipments discrepant

5.74

5.73

6.48

Audits completed

10

7

11

Recommended/accepted audit recoveries

$5.7 million

0

$2.4 million

Lab samples tested

171

188

120

% samples discrepant

47.0

39.0

45.8

Special enforcement operations initiated

6

5

4

Special enforcement operations completed

4

6

2

Copyright © 2021 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.

ST&R: International Trade Law & Policy

Since 1977, we have set the standard for international trade lawyers and consultants, providing comprehensive and effective customs, import and export services to clients worldwide.

View Our Services 

Close

Cookie Consent

We use cookies on our website. By continuing to use our website, you agree to the Privacy Policy and Terms of Use.