Revised Update on CBP's Detention or Testing of Sock Importations from 22 Countries

This summary represents a revision to the information contained in BP's two earlier summaries on imported socks, and is based on new information from additional CBP sources, as well as information from the U.S. Association of Importers of Textiles and Apparel (USA-ITA), as confirmed with CBP sources.

This new summary supercedes some of the sock information contained in the February 12 and February 17 issues of ITT, and for ease of reference, replaces the sock information in these two issues. (See ITT's February 12, 2004 news, 04021210 and ITT's 02/17/04 news, 04021710, for two earlier BP summaries on socks.)

CBP is Checking Whether China or Pakistan Origin Socks are Fraudulently Labeled as Originating in Other Countries

USA-ITA states, and CBP sources confirm, that CBP is concerned about fraudulent origin claims for both China origin and Pakistan origin socks. It is reported that this concern stems from the domestic sock industry's belief that a significant volume of sock importations identified as originating in countries other than China or Pakistan, are actually of China or Pakistan origin, and are illegally circumventing the quota and visa requirements imposed by the U.S. on China and Pakistan origin socks, by falsely documenting the socks as originating in one of the 22 targeted countries.

Sock Importations That Are Examined for Country of Origin Are Being Detained

According to CBP sources, CBP is detaining sock importations and asking for production documentation in order to verify country of origin claims.

CBP to Narrow Scope of its Country of Origin Review in Several Ways

CBP sources state that if a sock exporter's production records are satisfactorily verified, that exporter's merchandise would likely not be subject to detention or verification of production records, regardless of who the importer is. In addition, if an importer of socks receives a satisfactory review for targeted imports, CBP sources state that CBP would not necessarily detain additional shipments to that importer, regardless of the country of origin or exporter of the socks. Also, if a country is taken off the target list, sock shipments from that country would not be subject to detention or document review.

Sock Importations That Are Examined for Fiber Content and/or IPR Issues (without Country of Origin Concerns) Are Not Being Detained

According to the U.S. Association of Importers of Textiles and Apparel (USA-ITA) as confirmed by CBP sources, CBP is also doing laboratory checks on sock imports to check for fiber content mislabeling, as well as looking for IPR violations, such as the unauthorized use of the "Cotton Council" or "Lycra" marks.

CBP sources state that if a laboratory exam for fiber content is onlyconcerned with mislabeling (and there are no country of origin concerns), no detention will occur. USA-ITA also states that sock shipments will not be detained if examined for fiber content only, but that samples will be pulled and tested, and that if the declared fiber content is not accurate, a redelivery notice would be expected to be issued to the importer.

OTEXA's Major Shippers Report Lists 22 Countries for Cotton and MMF Hosiery

Based on December 2003 data, the Office of Textile and Apparel (OTEXA's) Major Shippers Report lists 22 countries as major shippers in cat 332 (cotton hosiery) and/or cat 632 (man-made fiber (MMF) hosiery). The 22 countries listed for one or both of these categories are (it is not known how similar this list is to CBP's list of 22 targeted countries):

These countries appear as major shippers for cat 332 (cotton hosiery) only.

These countries appear as major shippers for cat 632 (MMF hosiery) only.

(See ITT's Online Archives or 01/29/04 news, 04012915 for BP summary of other targeted CBP documentation exams, where for example, CBP found, in a six month time period, $75 million in Chinese apparel claiming false "country of origin", etc.)