Ask An Attorney - DHS Announces Enhanced Textile Compliance Enforcement Measures
The Department of Homeland Security (DHS) has circulated its intention to beef up USMCA/CAFTA-DR and UFPLA textile trade compliance enforcement by U.S. Customs& Border Protection (CBP) and Homeland Security Investigations (HIS). An April 8, 2024 email to the trade includes the following key elements of the enforcement effort:
- Cracking down on small package shipment compliance by improving screening of packages claiming the Section 321 de minimis exemption for textile, UFLPA, and other violations.
- Conducting joint CBP-HSI trade special operations to ensure cargo compliance, including physical inspections; country-of-origin, isotopic, and composition testing; and in-depth reviews of documentation. CBP will issue civil penalties for violations of U.S. laws and coordinate with HSI to develop and conduct criminal investigations when warranted.
- Better assessment of risk by expanding customs audits and increasing USMCA and CAFTA-DR foreign verifications of high-risk foreign facilities to ensure that textiles qualify for FTA benefits (noting 31 recent USMCA and 18 Honduras onsite verification visits).
- Building stakeholder awareness by engaging in an education campaign to ensure that importers and suppliers in the CAFTA-DR and USMCA region understand compliance requirements and are aware of CBP’s enforcement efforts.
- Leveraging U.S. and Central American industry partnerships to improve facilitation of legitimate trade.
- Expanding the UFLPA Entity List to identify malign suppliers for the trade community through review of additional entities in the high-priority textile sector for inclusion in the UFLPA Entity List.
The trade community should review the details of this enhanced textile enforcement effort and take steps to ensure compliance with the involved programs. If you have any questions, contact Taylor Pillsbury at taylor.pillsbury@mscustoms.com; or Michael Jackson at michael.jackson@mscustoms.com or both at (949) 719-2712.
Courtesyof Meeks, Sheppard, Leo & Pillsbury LLP
Contact IB&M at bond@Intlbondmarine.com