Home / Knowledge / News / Textiles / Textile execs demand action on CAFTA textile enforcement
Textile execs demand action on CAFTA textile enforcement
Jun '09
In testimony before the Small Business Committee, NCTO member companies, past Customs senior staff and government investigative agencies called on the Congress and the Administration to overhaul the textile enforcement effort in the CAFTA and other trade preference areas as textile fraud has soared to new levels.

Harding Stowe, Chairman of RL Stowe Mills, testified that his third generation textile company, the oldest in the country, was forced to close in January after Customs failed to act after Pakistani and Chinese yarn supplies surged into the CAFTA region falsely labeled as yarns made in the United States. 550 Stowe employees lost their jobs.

Stowe noted that his company supplied US Customs with regular information on which companies were using the illegal yarns and where the yarns were coming from but that Customs did not act. Stowe hosted President Bush in 2005 at his now shuttered Belmont, North Carolina plant in order to support the CAFTA effort after the administration promised tough enforcement action against illegal Chinese shipments.

Dan Nation, President of Parkdale Mills, the largest yarn spinner in the United States, testified that Parkdale Mills has been forced to lay off 1,200 employees as yarn fraud has increased throughout the CAFTA region. Nation testified that Parkdale regularly sees false affidavits of US origin being used for Chinese and Pakistani yarns and noted that CAFTA qualifying exports of a number of types of garments are far larger that the yarn actually produced in US and CAFTA yarn mills. Nation cited NCTO figures that show that seven US yarn plants have shut down over the last year simply because of the CAFTA/NAFTA yarn fraud.

Dick Crichton, a retired senior Customs officer with more than 40 years experience in textile and apparel fraud, testified that importers have been using increasingly sophisticated methods to get around trade preference rules and outlined twelve steps that Customs should take to crack down on illegal textile fraud.

Loren Yager of the General Accountability Office cited continuing resource restraints in the textile and apparel area that limit the ability of the government to enforce free trade agreement rules and confirmed that the movement of Customs to the Department of Homeland Security had created a de-emphasis on trade enforcement.

In submitted testimony, Cass Johnson, President of NCTO, noted that the textile industry support for CAFTA was predicated on commitments from the government that textile enforcement in the region would be strong but that the government quickly took steps after the agreement passed to de-emphasize enforcement.

Johnson cited figures that show importers filing trade preference claims only stand a one in one thousand chance of having their preference paperwork looked at and that total revenue charges by Customs for illegal claims of preference were only $2.2 million out of nearly $12 billion in preference claims last year (or two one-hundredths of a percent).

Johnson noted that NCTO has been meeting with Customs and other government agencies to look at ways to improve customs efforts and described two part plan to refocus, re-staff and retool Customs textile enforcement capabilities.

National Council of Textile Organizations

Must ReadView All

Textiles | On 24th Oct 2016

Indian govt plans roadshows to promote textile exports

The Indian government has planned to conduct roadshows to boost the...

Textiles | On 24th Oct 2016

TPP may hit roadblock

The 12-member Trans-Pacific Partnership (TPP) that was signed earlier ...

Textiles | On 24th Oct 2016

Baba Ramdev’s Patanjali to enter textile manufacturing

Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search