ITC Report on Travel Goods of Textile Materials (Suitcases, Backpacks, Etc.) Shows Little Production in U.S.
The International Trade Commission has issued a press release announcing the release of its report entitled, "Certain Textile Articles: Travel Goods of Textile Materials" which covers the years 2005-2006.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the report, there is relatively little U.S. production of such textile travel goods (e.g. suitcases, briefcases, backpacks, sports bags, etc.)1 or production of the fabrics from which they are produced. The ITC states that most firms have reportedly moved production offshore, primarily to Asia.
Study Requested by Congress to Determine Competitiveness of U.S. Industry
The ITC's study was requested by the House Ways and Means Committee to determine the competitiveness of the domestic industry producing certain travel goods of textile materials.
U.S. Travel Goods Firms Now Source Mostly from Asia, Especially China
According to the ITC, the majority of U.S. travel goods firms now source their commercial lines from Asian suppliers, mostly China, where labor costs are much lower than those in the U.S. Industry sources note that China is the preferred source for offshore production, owing to (1) the removal of U.S. import quotas on textile travel goods in 2002; (2) available low-cost work force and necessary inputs such as fabric and accessories in China and nearby Asian countries; and (3) lower cost, more frequent, and shorter shipping times to the U.S. compared with other Asian countries.
Companies Producing Travel Goods and Their Textiles Serve Niches, U.S. Military
The ITC reports that only nine companies reported producing or contracting for the production of such travel goods in the U.S. during 2005-2006. According to the report, domestic producers of the subject travel goods either serve niche markets or produce for the U.S. military and government.
In addition, only nine firms reported producing or contracting for the production of textile materials or fabrics for use in the subject travel goods in the U.S. during 2005-2006. Over 70% of the value of shipments of such fabrics was intended for goods produced for the U.S. military and government.
Quantity and Value of Domestic Production Declined Between 2005 and 2006
Between 2005 and 2006, both the quantity of domestic production and the value of domestic shipments of the subject goods declined, primarily reflecting a decline in shipments to commercial markets. While domestic production for the U.S. military and government nearly doubled during the 2005-2006 time period, it represented less than 5% of domestic production of such goods. U.S. shipments of the subject travel goods totaled an estimated $37 million in 2006.
The report notes that export shipments declined considerably between 2005 and 2006 and that the value of shipments to the U.S. military and government accounted for over two-thirds of the total value.
Association Reports Little Domestic Commercial Viability or Impact from Imports
According to the Travel Goods Association (TGA), who submitted comments in connection with the ITC's study, there is little commercially viable U.S. production of textile travel goods.
TGA states that the manufacturing that does exist is little affected by imports and adds that travel goods of textile materials are subject to some of the highest duties in the U.S. tariff code, regardless of the type of textiles used or the value of the textile materials embodied in the travel good.
1The subject travel goods are defined as trunks, suitcases, and similar containers (luggage); briefcases, computer cases, and attach cases (cases); and travel and sports bags; all are fabricated with an outer surface of any textile materials of any fiber type. The definition includes wheeled and non-wheeled backpacks of manmade fiber textile materials (backpacks). The subject travel goods definition excludes: all handbags and articles normally carried in a handbag or wallet, insulated food and beverage bags, musical instrument cases, and occupationally specific bags. (See ITC's report for further details.)
(See ITT's Online Archives or 11/29/06 news, 06112940, for BP summary of the ITC's launch of the investigation.)
ITC report (Investigation No. 332-480, dated October 2007) available at http://hotdocs.usitc.gov/docs/pubs/332/pub3957.pdf
ITC press release (07-109, dated 10/31/07) available at http://www.usitc.gov/ext_relations/news_release/2007/er1031ee1.htm