The US textile industry is collectively pushing for a systematic crackdown on customs fraud. On June 10, the National Council of Textile Organizations (NCTO) publicly supported a letter from the House Textile Caucus to the Department of Homeland Security (DHS), urging stronger customs enforcement and a comprehensive anti-fraud plan. This letter is not an isolated event but a concentrated pressure from the domestic textile industry on long-standing issues like false declarations and origin fraud.
Background
NCTO's statement directly echoes legislative pressure from Congress. The House Textile Caucus letter essentially translates industry pain into policy demands. It argues that current enforcement is insufficient to deter systematic fraud, especially false declarations, transshipment, and tariff evasion in textile and apparel imports. As an organization covering the entire supply chain from fiber to finished products, NCTO's stance means that from spinning mills to sewing workshops, the entire US manufacturing sector feels the competitive distortion caused by import fraud.
Public data shows that US textile imports exceed $100 billion annually, with a significant portion evading tariffs and quotas through misclassification, undervaluation, or false origin claims. Such practices directly hurt domestic manufacturers' orders and margins. The letter's call for a comprehensive enforcement plan indicates that the industry no longer wants case-by-case actions but a permanent early-warning and tracing mechanism.
Industry Impact
For the global textile supply chain, this move sends at least three key signals. First, US customs enforcement will enter a stricter phase. If DHS adopts the recommendations, inspection frequency for textile imports, especially from high-transshipment regions like Southeast Asia and South Asia, could increase significantly. Second, compliance costs will rise. Exporters will need to keep stricter records of origin certificates, processing steps, and shipping documents, or face detention, fines, or bans. Third, China, as the world's largest textile exporter, although already affected by tariffs on direct exports, may see its transshipped goods via Vietnam, Bangladesh, etc., come under tighter scrutiny.
From a procurement perspective, US brands and retailers will accelerate supply chain audits. In recent years, some companies relied on low declared values to cut costs, but this gray practice is being squeezed. For compliant factories, this is an advantage—they no longer have to compete unfairly with speculators.