Home / Knowledge / News / Apparel/Garments / US Customs keeping keen eye on LDP clothing imports
US Customs keeping keen eye on LDP clothing imports
03
Apr '09
Custom authorities at a number of ports in the US have recently started a strict review of over declared value of imported clothing and at the same time are conducting investigations against custom clearance agents, who are involved in clearing the goods from customs in Landed Duty Paid (LDP)) transactions.

LDP means exporter or seller is responsible for all charges including destination duty and freight to local port. Buyer is only responsible for clearing the goods and the local transportation which may also be done through agents and the real importer of goods nowhere needs to come in to the picture.

After elimination of quota from January 1, exports of certain categories of Chinese textile clothing to the United States have seen a large increase. At the same time, the focus of U.S. Customs has shifted from investigating illegal textile re-exports to reviewing price of clothing imported in to the US.

In addition, the Customs has also begun to conduct investigations against custom clearance agents, who are clearing the goods from the customs authorities in suspect LDP transactions.

Regulations of U.S. Customs requires that companies or individuals who make customs clearance for imported goods must have some kind of ownership interest shown in the documents of the merchandise, otherwise, they will not be entitled to apply for the entry of the imported goods.

Most clearance agents in LDP transactions specially make customs clearance for others and are just middlemen on the true meaning. They just earn their commissions from Customs clearance and they have no real trade interests with the goods, as specified in the customs manual.

In case the customs are able to prove that there is over invoicing in the imported goods, the situation can take a turn for the worse, if they are to be returned back to the home country as original importers are still unable to prove that they have the right to return those goods by submitting export documents for customs clearance.

This will create a situation, under which the goods will have to be stored in custom warehouses and will attract high warehousing costs adding to the burden of the exporter and owner of the goods.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X