House Members Introduce Textile Fraud Legislation
A group of 24 House lawmakers introduced the Textile Enforcement and Security Act (TESA) Nov. 20. Senator Kay Hagan, D-N.C., introduced similar legislation in July (see 13102516). The House legislation, HR-3558, provides CBP additional resources to combat fraudulent textile imports, co-sponsor Rep. Tom Graves, R-Ga., said in a press release (here). The legislation specifically targets the following, according to the release:
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- Increases the number of CBP specialists in the Textile and Trade Agreements division and at over a dozen U.S. ports. Also assigns staff to train trade partners.
- Clarifies that CBP has the authority to seize fraudulent textile and apparel goods imported under Trade Preference Area and Free Trade Agreement rules.
- Establishes centralized databases so CBP can more effectively and efficiently identify high risk importers and supply chains.
- Establishes an Electronic Verification Program to track yarn and fabric inputs in free trade agreements. Currently, inputs are tracked through paper documentation, a process that can easily be exploited.
- Uses revenue from fines and penalties to reward informants who expose import violations.
- Requires the U.S. government to publish names of companies that intentionally violate the rules of textile and apparel trade agreements.
- Directs the Homeland Security and Treasury Departments to use revenue from fines and penalties collected from textile and apparel import violations to pay for expenses directly related to customs enforcement and training.
“Our bipartisan bill will modernize Customs and Border Protection so it has the enforcement tools necessary to crack down on illegal activity, collect more duties and penalties and protect 600,000 American jobs in the textile industry,” said Graves in the statement. The congressman’s office did not comment.
The legislation also aims to enhance trade facilitation through strict enforcement, said National Council of Textile Organization President Auggie Tantillo in a press release (here). “As we approach the finalization of the Trans-Pacific Partnership and the beginning of the Transatlantic Trade and Investment Partnership, legislation such as TESA will help ensure that U.S. workers and manufacturers have an opportunity to fairly compete in markets both at home and abroad,” said Tantillo.