U.S. Customs and Border Protection released fiscal year 2023 textile enforcement statistics today. The data reflects robust enforcement efforts that protect American workers and legitimate importers by taking action against unlawful textile imports that attempt to circumvent U.S. trade laws, including those related to U.S. trade agreements.

In FY 2023, CBP seized more than 5,000 textile shipments valued at more than $129 million, issued approximately $67.2 million in commercial fraud penalties, and conducted audits that identified over $2 million in additional duty owed to CBP. Additionally, CBP conducted laboratory analysis on 323 shipments, 42% of which were found to be mis-declared or mis-described when arriving to the United States. CBP also conducts verification visits internationally to factories that export textiles and apparel to the United States to verify origin and ensure compliance with preferential duty treatment claimed on imports. In FY 2023, CBP conducted 57 factory verification visits through its Textile Production Verification Team program resulting in approximately $340,000 in duties recovered and potential additional enforcement actions.

“The textile industry is crucial for the health of the American economy, employing more than half-a-million people in this country,” said AnnMarie R. Highsmith, Executive Assistant Commissioner for CBP’s Office of Trade. “It’s not lost on us that the work we do has a direct impact on the jobs and livelihoods of so many Americans and their families – it’s why we get up in the morning.”

CBP also has an e-Allegations portal where the public can report to CBP any suspected violations of trade laws or regulations related to imported goods. Given its mission to protect U.S. industries and businesses from unfair trade practices, CBP takes all trade violation allegations seriously. In FY 2023, CBP received 30 textile related e-allegations.

The textile sector is critical to the United States economy, and textiles are one of seven Priority Trade Issues for CBP. The domestic textile industry is the third largest exporter of textile-related products globally. Many U.S.-produced textiles, such as yarn and fabric, are sold to countries that partner in free trade agreements with the U.S., where U.S. yarn and fabric are used to make finished apparel and various textile goods. These goods are often imported into the United States, where they are eligible for duty free benefits if they comply with all the requirements of the applicable trade agreement.

Textiles typically carry a higher duty rate compared to other U.S. imports, with some as high as 32%. Violators try to circumvent trade duties using tactics like misrepresenting the country of origin of textile imports, mislabeling and undervaluing shipments, among other illegal schemes. These types of fraud undermine legitimate trade and threaten U.S. jobs.

CBP will remain vigilant to prevent fraudulent trade practices and penalize individuals and entities violating or circumventing textile tariffs and trade laws, thus ensuring fair competition, safeguarding the U.S. domestic industry, and protecting U.S. economic security.