Fashion Intel & Analysis

Textile Development Memo for November 30, 2010

U.S. Customs and Border Protection has provided USA-ITA with a report on the "Textile Production Verification Team" visits it conducted during the government's fiscal year from October 1, 2009 to September 30, 2010.  The visits were to verify claims for the AGOA, CAFTA-DR, QIZ, PTPA (Peru), and JOFTA (Jordan).  Compared with last year's report, there was some improvement across the board.

CBP didn’t find any factories with evidence of transshipment, though they were refused admission and/or documentation at two factories in Peru. The number of high risk factories--those unable to provide sufficient production records to satisfy CBP of the merchandise origin--decreased as well. Among the Preference Programs, CAFTA-DR factories fared the worst, with the highest number of violations, closed factories, and insufficient documentation. Factories in Peru also did not fare well on the visit, with just over half in compliance and a third with insufficient documentation (the Peru FTA went into effect on February 1, 2009). The largest problem remains insufficient documentation to support claims. CBP notes that they will collect an estimated $5 million in revenue as a result of non-compliant FTA claims.

Click here for a copy of the CBP report.