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

Ghana makes tax stamp compulsory on imported textiles

Textiles | On 27th May 2018

Ghana makes tax stamp compulsory on imported textiles

To curb illegal imports, Ghanaian authorities will put a tax stamp on ...

Courtesy: Vishal Mega Mart

Apparel/Garments | On 27th May 2018

Partners Group, Kedaara Capital taking over VMM

Partners Group, a private markets investment manager, and Kedaara...

Courtesy: Deckers

Apparel/Garments | On 27th May 2018

Deckers Brands sales soar 8.4% in Q4FY18

Deckers Brands, a global leader in designing, marketing and...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search