NCTO Statement on Administration’s Reported Tariff Deferral


WASHINGTONThe National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today in response to the administration’s plan to institute a 90-day deferral on MFN tariffs,  as reported by numerous press outlets.

The reported plan being pushed by the importing and retailing industries would defer certain tariffs, including those on finished apparel products. It is an ill-advised policy that will hurt the U.S. textile industry at the very time it is answering the call of the nation to produce medical supplies to battle the coronavirus pandemic. 

NCTO has been at the forefront of the efforts to deploy resources, converting production lines to manufacture urgently needed medical supplies like face masks and their textile components,  to address the critical need for personal protective equipment and other medical and sanitation supplies in the fight against the coronavirus.

These unnecessary tariff concessions would benefit importers and retailers at the direct expense of manufacturers on the front lines of the COVID-19 response and send a demoralizing message.

Tariff deferrals would severely exacerbate ramifications for the U.S. economy, manufacturers and workers and open the floodgates for imports.

If the U.S. government makes tariff concessions during this crisis, it will be inviting a virtual tsunami of imports further devastating domestic manufacturing as it attempts to regain its footing.     

We urge the administration to abandon any moves to defer tariffs on finished products. It would only serve to allow importers to exploit the current crisis, while dealing a severe blow to U.S. manufacturing and its workers.  

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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U.S. Textile and Nonwoven Associations Urge Government to Deem Manufacturing Facilities “Essential”

WASHINGTON DC—U.S. textile and nonwoven associations issued a joint statement today urging federal, state and local governments to deem textile and nonwoven manufacturing facilities as “essential” when drafting “Shelter in Place” orders in response to the COVID-19 crisis.

Our associations recognize the serious challenges our elected officials, health administrators and others are facing when issuing orders to protect communities across the country and we understand the necessity for leaders to enforce a ‘Shelter in Place” order or quarantine orders.

Our members make a broad range of inputs and finished products used in an array of personal protective equipment (PPE) and medical nonwoven/textile supplies, including surgical gowns, face masks, antibacterial wipes, lab coats, blood pressure cuffs, cotton swabs and hazmat suits. These items are vital to the government’s effort to ramp up emergency production of these critical supplies.

If workers who produce these goods are not granted an “essential” exemption from “Shelter in Place” and other quarantine orders to go to their manufacturing and distribution facilities, it will cause major disruptions in the availability of these goods. This will create significant hardship to healthcare providers and consumers across the country who depend on steady and stable supplies of these critical items.

We are asking the administration and state and local authorities to provide greater certainty and clarity for our companies and employees and ask for a clear exclusion of our manufacturing operations from “Shelter in Place” orders as the textile and nonwoven products that we make in the U.S. play an essential role in mitigating the shortages of critical supplies. Such a designation will help us avoid disruptions of vital goods and services during this challenging time.

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About NCTO

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production
  • totaled $2.0 billion in 2017, the last year for which data is available.

About INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of member companies in the nonwovens/engineered fabrics industry in global commerce. Since 1968, INDA events have helped members connect, learn, innovate, and develop their businesses. INDA educational courses, market data, test methods, consultancy, and issue advocacy help members succeed by providing them the information they need to better plan and execute their business strategies. For more information, visit inda.org, or download the INDA mobile app for immediate updates.

About IFAI

The Industrial Fabrics Association International is a member-owned, member-driven trade association representing the global industrial fabrics industry since 1912. IFAI invests more than $8 million each year to advance the industry and support member companies. IFAI provides members with relevant information, sourcing solutions and networking opportunities to sustain and grow their businesses. www.ifai.com

CONTACTS:

NCTO

Kristi Ellis

(202) 684-3091

www.ncto.org

INDA

Dave Rousse

(919) 459-3730

www.inda.org

IFAI

Janelle Buerkley

651.225.6948

www.ifai.com

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NCTO Supports Administration’s Proposals on Economic Stimulus in Coronavirus Response; Rejects Importer Attempts to Remove China 301 Tariffs on...

The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement today welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak, but the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

“The president has outlined the need for a broad economic stimulus package that would include various tax incentives to help impacted industries and workers. We support the administration’s efforts to bolster the economy as a response to the coronavirus outbreak, while opposing add-ons to any stimulus package designed to exploit the crisis,” said NCTO President and CEO Kim Glas.

“Any push by importers and retailers to take advantage of the situation and press for removing China 301 tariffs on finished consumer goods—a penalty imposed by the administration in a separate investigation of China’s illegal intellectual property (IP) abuses—should be rejected immediately,” she said. “Tariff breaks on finished products will only pad the pockets of retailers that have long benefitted from China’s trade abuses, and ultimately will not be passed on to the consumer,” Glas said.

“Granting importers a tariff break would essentially let China off the hook for systemic IP violations that have displaced U.S. workers and undermined U.S. leverage in negotiating a phase two agreement,” Glas continued.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.1 from 15 percent to 7.5 percent.

“NCTO has strongly supported applying tariffs on finished products as a key negotiating leverage but opposes keeping tariffs in place on certain inputs that are not made in the U.S. such as select dyes, chemicals and textile machinery. NCTO has long-argued tariffs on these inputs hurt domestic competitiveness for U.S. textile manufacturers,” Glas said.

Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in the sector; while fiber, yarn, and fabric imports from China only represent 6.5 percent, according to government data.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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NCTO Responds to China Commission’s Report on Forced Labor in China to Produce Global Products

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today in response to the Congressional-Executive Commission on China’s staff report on the forced labor of Uyghurs and other minorities in China to produce consumer products for global companies.

We share the concerns of the bipartisan China commission regarding forced labor in China that is used to produce goods for global companies. We agree with the findings and the commission’s recommendations to the administration and Congress to take action against the systemic abuse of forced labor.

The plight of the Uyghurs and minority groups in China deserves greater attention. It is another example of how the Chinese have utilized illegal and oftentimes abhorrent practices to gain an advantage in the marketplace.

As the commission’s report details, Chinese apparel exporters have clearly profited from the virtual enslavement of this minority population, and we call for continued scrutiny and the end to this exploitation of a repressed people. The commission has served a fair warning to U.S. businesses and consumers to not be complicit in these forced labor practices.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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NCTO Releases Statement on Coronavirus

WASHINGTON DC—National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today on the industry’s response to the coronavirus crisis.

The coronavirus has impacted Asian textile and apparel manufacturing productivity and output, and our concerns lie with the affected companies and workers during this terrible crisis.

The U.S. textile industry continues to be ready, able, and willing to help in any way possible. Our industries have been in touch with U.S. government officials to help identify key U.S. textile suppliers to provide surgical masks and other items to help contain the spread of the coronavirus. In addition, several companies have donated much-needed medical textile supplies and other sanitary items to help address this outbreak.

Given the uncertainty in the market as a result of the coronavirus, many textile and apparel sourcing executives are seeking alternatives outside of Asia. We stand ready to assist brands and retailers looking to shift sourcing during this uncertain time. The Western Hemisphere production platform established under our free trade agreements and trade preference programs provides a sound alternative as companies look to diversify their sourcing. The region has immediate capacity to meet worldwide demands with duty-free access through well-established supply chains.

Whether this terrible crisis lasts days, months, or longer – our member companies are ready and willing to help.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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NCTO Applauds Trump Administration’s Move to Crack down on Imported Counterfeits Sold Online

WASHINGTON DC—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, issued a statement today on the Trump administration’s announced action plan to increase enforcement and penalties against counterfeit goods sold online and imported to the U.S.

“This is a very important and long overdue move on the part of the administration to increase enforcement activity and penalties against counterfeit goods sold online and imported into the United States,” said NCTO President and CEO Kim Glas. “We commend the administration for making a commitment to bolster efforts to crackdown on counterfeits, particularly in the textile and apparel sector, which has been hit hard by fake imported products for decades.”

Nearly two million shipments of goods are exported to the United States duty free each day– often from countries with poor labor, human rights and environmental track records—under a provision known as Section 321 de minimis. This provision allows goods valued below an $800 threshold to enter the U.S. duty free when imported directly to an individual on a single day. 

“This massive increase in de minimis shipment trade poses significant security risks and threats to public health and safety, while incentivizing customs fraud and creating a loophole to our entire tariff structure,” Glas said. “Our concerns regarding the de minimis loophole are exacerbated by the belief that the domestic textile industry and other U.S. manufacturing interests are directly and negatively impacted, particularly since e-commerce sites like Amazon and others are using de minimis as a duty-free portal into the U.S. for products under $800.”

Furthermore, CBP’s own annual report on intellectual property seizures, including large volumes of counterfeits, revealed that U.S. authorities made seizures totaling $1.4 billion in fiscal 2018. Over 90 percent of all intellectual property (IPR) seizures occur in the international mail and express shipment environments, according to the report, which is a common method of shipping by e-commerce sites.

Chinese products accounted for 46% of all IPR seizures with a total Manufacturers Suggested Retail Price (MSRP) value of $761.1 million in FY 2018. Apparel and accessories were the top counterfeit products seized by U.S. authorities, accounting for 18% of all seizures in FY 2018 with an MRSP value of $115.2 million.

“We think this is an important step forward by the administration to deepen the analysis on de minimis products— that are often not thoroughly examined and undercut our domestic manufacturing industries,” Glas said. “We don’t know what the products are, where they are coming from, whether they meet U.S. safety requirements, who is making them or the country of origin. We believe it is long past time for the administration to address the issue of de minimis shipments and counterfeiting head on.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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(202) 684-3091

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NCTO Comments on the Administration’s Announced Phase One Deal on 301 Tariffs

WASHINGTON, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, provides initial comments on the Phase One deal on 301 tariffs reached between the United States and China today.

“We look forward to reviewing the details of the agreement as it becomes available, including the intellectual property enforcement mechanisms agreed to by both countries.  We have long supported the administration’s efforts to re-balance our trade relationship with China that has significantly eroded our U.S. manufacturing base for decades,” Kim Glas, President and CEO of the National Council of Textile Organizations said.

The proposed announcement means that 301 duties on textile inputs will remain at a 25 percent tariff. Meanwhile, penalty duties on finished apparel and textile products implemented on Sept. 1st will be reduced from 15 percent to 7.5 percent, and proposed duties on finished products set to be put in place on Dec. 15th will no longer go into effect.

“NCTO has strongly supported applying tariffs on finished products as key negotiating leverage since textile and apparel production is a key pillar of the Chinese manufacturing economy.  Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S imports from China in our sector, while fiber, yarn and fabric imports from China only represents 6.5 percent, according to government data.  Today’s announcement reduces tariffs on finished products at the same time it keeps tariffs in place on key inputs that aren’t made in the U.S. such as certain dyes, chemicals, and textile machinery. We believe a wiser approach would be to maintain penalty duties on finished Chinese products while reducing 301 duties on key inputs that are used by U.S. manufacturers. Doing so will maintain maximum leverage on China to reach a more comprehensive and enforceable intellectual property agreement, while reducing input costs for U.S. manufacturers.  As domestic textile companies fight to compete with China and their illegal trade practices, it is important that U.S. manufacturers should be the first to see penalty duties removed on inputs not made in the United States.

As we review this Phase One agreement, it is important that the administration strike the proper balance of maintaining its leverage with China by keeping duties on finished product until a final strong and enforceable deal with China is completed.  We look forward to reviewing and analyzing the deal in more detail.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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Textile Executives Stress Importance of USMCA at Roundtable with Congressman Tom Rice

August 21, 2019

WASHINGTON, DC – U.S. textile executives participated in a roundtable today with Representative Tom Rice (SC-07), a key member of the House Ways & Means Trade Subcommittee, at which they discussed the competitiveness of the domestic industry, outlined priority issues in Washington and explored ways to jointly push for passage of the U.S.-Mexico-Canada Agreement (USMCA).

Congressman Rice, a leader on trade and competitiveness issues that heavily impact the domestic textile industry, participated in an executive roundtable hosted by Milliken & Company at its headquarters in Spartanburg, S.C.

“Milliken is honored to host Congressman Rice today to talk about innovation, competitiveness and the importance of passing USMCA,” Jeff Price, EVP of Milliken Operations stated.  “USMCA makes several key updates to NAFTA that will enable our trilateral trade to become stronger, which benefits this key industry in South Carolina. We greatly appreciate the Congressman being here today and appreciate his leadership.”

Congressman Rice stated: “I was honored to participate in today’s roundtable with leaders in South Carolina’s textile industry to discuss the need to pass the USMCA as quickly as possible. Modernizing outdated trade agreements to reflect our 21st century economy will support American manufacturers and enhance our global competitiveness. I will bring the valuable input I received today back to Washington as I continue working to advance the USMCA and keep our economy booming.”

“We welcome Congressman Rice’s participation in the roundtable today as well as his continued support of the U.S. textile industry,” said NCTO President and CEO Kim Glas. “U.S. textile exports to Mexico and Canada totaled $12 billion last year, underscoring the importance of our Western Hemisphere supply chain. This key supply chain has helped drive the $20 billion in investment by the industry over the past decade and has also helped support investment and nearly 25,000 direct textile jobs in South Carolina alone.”

“Congressional passage of the USMCA trade agreement is one of our top legislative priorities this year,” Leib Oehmig, Chairman of NCTO and CEO of Glen Raven noted. “The new USMCA makes several important improvements that would benefit our industry and enhance our three-way trade. We look forward to continuing to work with Congressman Rice to help get this trade agreement over the finish line.”

USCMA would update and replace the 25-year-old North American Free Trade Agreement (NAFTA). The NAFTA supply chain drives approximately $20 billion in annual trilateral textile and apparel trade, up from just $7 billion prior to NAFTA, and is important to the continued growth of the industry. The updated USMCA makes several key improvements, including stronger rules or origin for sewing thread, pocketing, narrow elastics and certain coating fabrics. In addition, it fixes the Kissell Amendment loophole and ensures stronger customs enforcement.  These provisions will benefit our U.S. textile industry.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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NCTO Welcomes Administration’s Inclusion of Finished Apparel & Textile Products on China Tariff List

Washington, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, issued the following statement today in response to the U.S. Trade Representative Office’s (USTR) announcement regarding the next steps for the proposed 10 percent tariff on approximately $300 billion of Chinese imports.  NCTO testified most recently on June 20, urging the administration to move forward with tariffs on finished apparel and home textile products.

“As U.S. manufacturers that have suffered enormously from China’s illegal IPR activities and state-sponsored export subsidies, we strongly support the administration’s decision to move forward with this next tranche of 301 retaliatory tariffs that will finally cover a significant portion of China’s exports in our sector,” said NCTO President and CEO Kim Glas.

She continued: “We also believe that the inclusion of products that are within significant Chinese employment sectors like finished apparel, will substantially increase the administration’s negotiating leverage with the Chinese to address systemic trade reforms that are needed. Any such settlement must include short-and long-term reforms that eliminate China’s predatory trade practices in key industrial sectors across the board, such as textiles and apparel.

We are at a critical juncture in terms of global economic trading patterns.  The current trade negotiations with China offer the best opportunity in a generation to restore fairness and market- based competitiveness to a system that has been overwhelmed by China’s illegal and state-planned effort to dominate global manufacturing.

While we are pleased with today’s announced action, we remain concerned that certain inputs already vetted by the administration and removed from previous retaliatory tariff lists remain on this list for proposed duties. We have long argued that adding tariffs on imports of manufacturing inputs that are not made in the U.S. in effect raises the cost for American companies. We urge the administration to uphold these previous exclusions. We also continue to request that the administration include de minimis shipments below $800 on the retaliatory list. The provision creates a significant loophole at a time when the administration is seeking to address China’s unfair trade practices.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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NCTO Board Member and Auburn Manufacturing Inc. President and CEO Kathie Leonard Named to Ex-Im Bank Advisory Committee

WASHINGTON, DC – NCTO Board member and President and CEO of Auburn Manufacturing Inc. Kathie Leonard was appointed to serve as the U.S. textile industry representative on the Export-Import Bank (Ex-Im) 2019 Advisory Committee.

Auburn Manufacturing Inc. is a woman-owned manufacturer based in Mechanic Falls, Maine, producing heat-and fire-resistant textiles used worldwide by industries like ship building/repair, foundries, mining, aerospace, power generation and many other heat-intensive industries.

Leonard started the company in 1979 and over the past 40 years has worked tirelessly to build Auburn Manufacturing into a leader in its field, turning 1.5 million pounds of fiber per year into over 2 million yards of fabric.

On both the state and national level, Leonard lends her voice to issues affecting the textile industry, ranging from global trade policy to regulatory issues.

In her role on the Bank’s Advisory Committee, she will provide recommendations on export financing products to the Ex-Im Board of Directors and the Bank’s President.

“Kathie is such a tremendous asset to our industry,” said NCTO President and CEO Kim Glas. “We are pleased the Ex-Im Board has selected Kathie to serve on its Advisory Committee. She will be the voice of the industry at the table and help support the U.S. textile industry, which has seen a significant increase in its exports, particularly to the Western Hemisphere.”

Leonard said: “I’m very pleased to be appointed to EX-IM’s Advisory Committee. As a small U.S. textile manufacturer, we know first-hand how important EX-IM’s financing program is to building sustainable sales relationships around the world.”

 “I look forward to being able to provide feedback to the Board on behalf of the textile industry and the small business sector.” 

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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