Foreign Textile and Apparel Factory Visits Find Increase in Violations
U.S. Customs and Border Protection recently provided to the American Apparel and Footwear Association the following information on the results of CBP textile production verification team visits conducted in fiscal year 2016 (Oct. 1, 2015, through Sept. 30, 2016). TPVTs visit textile and apparel exporting countries to review company records and operations to determine if illegal transshipment or improper shipping under trade preference programs or free trade agreements is occurring.
According to the AAFA, the FY 2016 figures show that about twice as many targeted factories reported some sort of illegal transshipment-related problem as in FY 2015. In addition, the FY 2016 figures for trade preference violations were the highest since FY 2007.
CBP states that shipments from closed or high-risk factories (those unable to provide production records to satisfy CBP of the origin of the goods) will be scrutinized and validated by CBP.
Illegal Transshipment Verifications
|Factories Visited||Closed||Evidence of Transshipment||High Risk||Refused Admission/Docs|
|Nicaragua – 05/16||17||0||0||0||0|
|Peru – 05/16||21||3||0||7||0|
|Ghana – 05/16||6||1||0||0||0|
|Kenya – 07/16||19||2||0||2||0|
|Dominican Rep. – 07/16||22||3||0||2||0|
|El Salvador – 08/16||22||0||0||1||0|
|Guatemala – 08/16||20||0||0||0||0|
|Lesotho – 09/16||8||0||0||0||0|
|Morocco – 09/16||14||6||0||1||0|
Verifications under FTAs or Preference Programs
|Factories Visited||Violating Preference Programs||Insufficient Docs to Support Program Claims||