Trade protection sentiment in the U.S. textile industry is shifting from verbal complaints to substantive policy pressure. On June 10, 2026, the National Council of Textile Organizations (NCTO) publicly endorsed a letter from the House Textile Caucus to the Department of Homeland Security (DHS), with a core demand: a comprehensive crackdown on rampant customs fraud in textile categories.
Background
The bipartisan letter urges DHS to develop and implement a full enforcement plan. NCTO emphasized that current enforcement gaps allow large volumes of illegal textiles—through undervaluation, misclassification, and false origin claims—to flood the U.S. market, directly harming the domestic supply chain from fiber to finished sewn products.
U.S. textile manufacturers have long complained that some importers exploit low inspection rates and weak penalties to evade high tariffs. This not only drains federal revenue but also puts compliant domestic firms at a competitive disadvantage. NCTO’s public stance signals deepening coordination between the industry and lawmakers.
Industry Impact
For Chinese textile exporters, this letter carries a stronger signal than it appears. U.S. customs enforcement priorities shift with congressional attention. Once textiles become a targeted category, scrutiny on documentation and physical inspections will likely intensify.
Specific risks include:
- Transshipment via third countries to circumvent origin rules may face stricter traceability audits
- Undervaluation or vague product descriptions could trigger more frequent queries and rejections
- Man-made fibers and fabrics, due to complex HS code classifications, face higher reclassification risks
This is not an isolated event. The U.S. has recently revised textile origin rules and tightened oversight on cross-border e-commerce parcels. This congressional pressure may be a prelude to integrating scattered measures into a systematic enforcement framework.
Practical Advice
For Exporters - Immediately review customs procedures to ensure product names, HS codes, and origin marks match physical goods exactly, avoiding “fraudulent declaration” charges - Monitor DHS’s upcoming enforcement plan details, especially for high-dispute categories like synthetic fibers and knitted fabrics - For orders transshipped via Southeast Asia or Mexico, prepare complete processing proofs and certificates of origin in advance
For Trading Firms - Communicate with U.S. clients to clarify liability for delays or returns caused by customs compliance issues - Assess tariff classification risks for products, especially multi-component blended fabrics, and consider applying for binding rulings - Track lobbying moves by NCTO and other industry groups, as their policy recommendations often shape customs enforcement
This enforcement upgrade is essentially a rule game. For exporters, rising compliance costs are certain, but those who adjust supply chains and documentation early may secure a stronger position in the coming shakeout.