January 17, 2025

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement commending U.S. Customs and Border Protection’s (CBP) notice of proposed rulemaking aimed at curtailing de minimis shipments that are harming the U.S. manufacturing base and U.S. consumers.

Statement by NCTO President and CEO Kim Glas:

“We welcome CBP’s announced notice of proposed rulemaking exempting de minimis tariff-free benefits on imports ‘specified as trade and national security actions.’ This rulemaking represents a step forward in minimizing the impact of this disastrous loophole in U.S. trade law that has facilitated a surge of duty-free imports that are normally subject to penalty tariffs under various U.S. trade remedy statutes. Failure to collect these duties has exacerbated the flow of goods found to be in violation of U.S. trade laws that are costing American jobs and damaging our manufacturing sector.

“With this rulemaking, CBP and the administration seek to eliminate de minimis treatment for all imported products subject to U.S. trade remedies and penalties, including the current Section 301 tariffs on China. This is an important and much overdue reform.”

CBP states that the number of shipments over the past 10 years entering the United States claiming the de minimis administrative exemption has increased by more than 600%–from approximately 139 million a year in Fiscal Year 2015, to over one billion a year in FY 2023. During FY 2024, de minimis shipments rose once again to over 1.36 billion, according to CBP. The agency notes that the exponential increase ‘has created challenges for CBP’s effective enforcement of U.S. trade laws, health and safety requirements, intellectual property rights, and consumer protection rules.’     

“We have long called on the administration to use its existing authorities to mitigate the damage to our industry created by de minimis, which has functioned as a massive tariff loophole for low-cost, subsidized, and unethical Chinese imports and undermined the competitiveness of the U.S. textile industry—a key contributor to the workforce and the U.S. economy.

“The U.S. textile industry, a strategic supplier of goods to the U.S. military and PPE, is experiencing severe demand destruction fueled by 4 million de minimis shipments a day flooding our market with cheap, often illegal imports because of this outdated trade provision that rewards Chinese e-commerce platforms, importers and tariff cheaters with an open door to the U.S. market.

“The administration’s decision to initiate the rulemaking process in its final days is a significant and meaningful action for our domestic industry and that of other manufacturing sectors. We urge CBP to expedite the rulemaking process to the fullest extent possible and appreciate the agency’s strong engagement with our industry.

“Further, we strongly urge the incoming Trump administration to not only endorse this proposed rulemaking but to expeditiously implement a comprehensive solution to the growing de minimis problem beyond the action announced today. Noting the magnitude of the problem, and the inability of CBP to effectively enforce our trade laws with the flood of de minimis packages coming in daily, we are calling on  President-elect Donald Trump to take immediate steps to end de minimis by executive order. We are also pressing Congress to work together with the new administration on a permanent and comprehensive solution to immediately close this disastrous loophole once and for all. 

“We are strongly committed to working with CBP on the rulemaking process as well as the Trump administration and both sides of the aisle in Congress to get this done immediately to help provide relief to this most impacted industry and others. “

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

WASHINGTON, D.C.—The National Council of Textile Organizations (NCTO), spanning the entire spectrum of U.S. textiles from fiber to finished sewn products, commends the House of Representatives for passing the Fiscal Year 2025 National Defense Authorization Act (NDAA) today.

The legislation helps preserve the Berry Amendment supply chain and authorizes the Department of Defense (DOD) to take steps to build up the defense textile stockpile and directs DOD to be more transparent and disclose all waivers submitted for the procurement of defense textiles not made in the United States.

In addition to supporting and expanding the critical Berry Amendment, which requires the Department of Defense to purchase 100% U.S. made textiles and clothing, the legislation includes two new key provisions important to the domestic textile industry:

• Authorizes Secretary of Defense to establish pre-positioned stocks of defense textiles needed to support contingency operations, while requiring the secretary to develop a plan to mitigate delays in meeting the demand for a ramp up in defense textile articles.
• Increases public transparency for domestic nonavailability determinations (DNADS) on an annual basis, while requiring the Under Secretary of Defense for Acquisition and Sustainment to develop and maintain a list of DNADs and share it with Congress and industry.

“We applaud the House for passing the FY 2025 NDAA today and urge the Senate to pass this critical legislation this year,” said NCTO President and CEO Kim Glas. “This legislation contains provisions that support a strong domestic textile and apparel manufacturing industrial base and aims to expand procurement of American-made defense-related textiles. The Berry Amendment ensures that there is a stable and viable domestic supply chain for these critical defense materials

“The American textile and apparel industry is a key strategic contributor to our national defense and supplies over 8,000 products a year to our men and women in uniform. U.S. textile mills provide a secure supply chain for the highest quality goods that our armed forces demand, eliminating the need to rely on countries like China for critical military products such as vital uniforms and equipment.

“The U.S. textile industry provides high-tech, functional components for the U.S. government, including more than $1.8 billion worth of vital uniforms and equipment for our armed forces annually. It is vital to America’s national security that the U.S. military maintain the ability to source high-quality, innovative textile materials, apparel, and personal equipment from a vibrant U.S. textile industrial base.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available

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Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org  |  202.684.3091

October 3, 2024

WASHINGTON, D.C.—National Council of Textile Organizations (NCTO) President and CEO Kim Glas sent a letter to President Joseph Biden today asking his administration to intervene in the East and Gulf Coast ports strike that is exacerbating the economic distress facing the U.S. textile industry, which has been hit hard by Hurricane Helene.

See the full letter here.

“We respectfully ask that you urge the parties to reach a reasonable, fair, and expeditious conclusion given your role as a key negotiator and intermediary. The strike at East Coast and Gulf ports threatens not only our domestic competitiveness but also that of the broader Western Hemisphere textile and apparel co-production chain, which supports 2 million workers and $40 billion in annual two-way trade,” the letter reads.

Seventy percent of U.S. textile exports are shipped to the industry’s Western Hemisphere free trade agreement partners, who in turn produce finished apparel and home textile products for the U.S. market. 

“The strike comes at a particularly difficult time when American textile manufacturers are reeling from the destruction of Hurricane Helene. Several companies have been hard hit as a result of this tragedy—some with severe structural damage and others with idled plants” the letter continues. “The industry’s main concern right now is prioritizing the safety and well-being of its employees and their families.  This strike couldn’t come at a worse time as the industry has seen the closure of 21 plants in the last 18 months. We appreciate your leadership in helping mitigate supply chain challenges, as well as your work in support of working families and your work on behalf of the U.S. textile industry. We ask for your urgent assistance in helping to end these widespread supply chain disruptions so that our industry can have a fighting chance to regain its footing amid other serious and ongoing challenges.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

September 13, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement on today’s White House announcement and fact sheet that outlined executive actions to curtail de minimis shipments in addition to other key measures on enforcement and domestic procurement.

Statement by NCTO President and CEO Kim Glas:

“We appreciate the administration’s actions announced today, which represent a step forward in helping mitigate the impact of the de minimis provision.

“We have called on the administration to use its existing executive authorities to limit the severe damage to our industry created by the de minimis loophole. Today, the administration announced rulemaking to limit de minimis treatment for all imported products subject to U.S. trade remedies and penalties, including the Section 301 tariffs. This is an important, common-sense reform and critical first step. We amplify the need to expedite rulemaking to the fullest extent possible and appreciate their strong engagement with our industry. The administration also announced requirements for additional information on de minimis shipments and other enforcement measures.

“Further, the administration underscored the need for a comprehensive solution beyond this action announced today – underscoring the magnitude of the problem, and the inability to effectively enforce our laws with the flood of de minimis packages coming in daily and the need for an urgent solution. We share that same sense of urgency. We are calling on Congress and the administration to work together to immediately close this disastrous loophole once and for all. 

“The U.S. textile industry, a strategic supplier of goods to the U.S. military and PPE is experiencing severe demand destruction fueled by de minimis shipments flooding our market with cheap, illegal imports because of this nonsensical outdated trade loophole. De minimis has facilitated illegal and forced labor products to our doorsteps at the cost of American jobs and our manufacturing sector.

“The flood of boxes coming into the United States under an outdated 1930s trade provision rewards Chinese e-commerce platforms and cheaters with a free trade agreement. It makes detecting illegal products effectively impossible. De minimis hides a black market of goods and puts people and consumers at risk. Half of the 4 million de minimis boxes a day are estimated to be textile and apparel goods – which is why we greatly appreciate the administration calling for the global exclusion of trade sensitive items – including textiles and apparel – from de minimis treatment given the sensitivity of the sector and rampant cheating. If enacted and effectively enforced, this will help significantly bring down the volume of these goods to better detect fentanyl and other illicit and dangerous products and help U.S. Customs and Border Protection (CBP) do its important work in the field with our law enforcement officers. Time is of the essence because there is so much at stake.

“We also underscore the need for Congress and the administration to immediately eliminate this disastrous loophole once and for all in the coming weeks. We will continue pressing for comprehensive reform given the urgency of the crisis – not just for our industry which has lost 19 plants this last year – but for all industries and consumers and families impacted by this loophole.

“Finally, we applaud the administration’s directive on developing a plan for immediate textile and apparel procurement. This is critical to our industry, and we stand ready to supply more goods to the U.S. government. We also appreciate the administration’s stepped-up textile and apparel enforcement efforts over the last few months and their ongoing engagement with this critical industry. Today they announced their efforts to date.  We want to thank Department of Homeland Security Secretary Alejandro Mayorkas, DHS, and the CBP team for prioritizing this at such a critical time.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

 |  202.281.9305

August 21, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today on news of the passing of Congressman Bill Pascrell (D-NJ) this morning.

Statement by NCTO President and CEO Kim Glas:

“The entire U.S. textile industry is mourning the loss of Congressman Bill Pascrell (D-NJ), a true leader and advocate for critical manufacturing policies aimed at bolstering the domestic supply chain and confronting ongoing threats from predatory trade practices.

“We commend his significant contributions – not just to the U.S. domestic industry—but for American manufacturers and workers everywhere.

“Rep. Pascrell had served as co-chair of the House Textile Caucus with Rep. Patrick McHenry (R-NC) since 2013 and was an ardent fighter for the U.S. textile industry and beyond.”

In April, Congressman Pascrell championed a bill titled the Import Security and Fairness Act led by Rep. Earl Blumenauer (D-OR) that would exclude all Chinese imports from de minimis treatment, as highlighted in our blog post on a House Ways & Means markup.

He also penned an op-ed with Congressman McHenry highlighting the urgent need to drive investment and for onshoring and nearshoring textile and apparel production and to not weaken the critical U.S. and Central America  Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

In addition, he co-sponsored legislation aimed at strengthening the American PPE supply chain which would expand the Berry Amendment to nearly all federal purchases of PPE.

“As is evidenced above, Congressman Pascrell took on every policy battle in support of U.S. textiles and manufacturing in general as an unwavering supporter of maintaining and expanding a vital domestic manufacturing chain.  He worked closely with Rep. McHenry on critical textile issues to advance the cause for our domestic industry and its workforce.

“He will be missed deeply by the industry and to all who knew him. We extend our gratitude to a manufacturing warrior and express our condolences to the entire Pascrell family and his staff and team.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

Aug. 8, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today welcoming the introduction of the bipartisan “FIGHTING for America Act, a bill that would eliminate de minimis exemptions for import-sensitive products and goods subject to trade remedies, including the majority of textile and apparel imports, while helping staunch the flow of millions of low value duty-free shipments entering the United States daily.

Statement by NCTO President and CEO Kim Glas:

“We commend Senate Finance Committee Chairman Ron Wyden (D-OR), and Senators Sherrod Brown (D-OH), Bob Casey (D-PA), Susan Collins (R-ME), and Cynthia Lummis (R-WY) for their leadership and support for this bipartisan legislation that would tighten the rules for the entry of millions of imported packages coming through the de minimis loophole each day and help level the playing field for domestic textile and apparel manufacturers severely harmed by the onslaught of these shipments.

“This bill eliminates de minimis for the most import-sensitive products and goods subject to trade remedies, including the vast majority of textile and apparel imports from China and the rest of the world. It is a major step in the right direction toward closing the loophole. De minimis shipments have grown exponentially due to the explosion of e-commerce and the growth of companies like Shein and Temu that have built their business models around this duty-free loophole. As a result, the U.S. market has been inundated with a flood of low value, subsidized and often illegal and tainted imports that are endangering U.S. consumers and undermining the U.S. textile and apparel production chain.

“We believe Senator Wyden’s legislation will go a long way toward thwarting bad actors who have been profiting from this unchecked gateway by sending in goods made with forced labor, counterfeits, toxic goods, and illicit narcotics.

“This bill is the most comprehensive approach to de minimis reform to date. It would not only close de minimis to the vast majority of textile and apparel imports, but also impose new penalties for violations, require additional data reporting on all de minimis packages, and impose small customs user fees on packages. We are encouraged by this strong legislative approach and believe it will help shield and support the vital domestic textile and apparel manufacturing supply chain that employs more than 501,000 workers and produces $64.8 billion in output.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305