NCTO Statement on Administration’s 90-Day 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, voicing concern over the administration’s executive order instituting a non-reciprocal 90-day deferral on certain tariffs. The temporary postponement of duties does not apply to products with antidumping or countervailing duties or those products subject to penalty duties under Section 232, 201 and 301.  As further details of the order emerge, we are closely reviewing the implications for the U.S. textile industry.

“At a time when domestic textile producers and its workforce have mobilized to transform their production lines to manufacture the personal protective equipment (PPE) supplies for frontline healthcare and medical workers fighting the COVID-19 pandemic, the administration’s decision to defer duties for 90 days on the vast majority of products imported into the United States is counterproductive.

This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship.

We support the need to temporarily eliminate barriers to the entry of emergency medical supplies and certain PPE inputs tied directly to the COVID-19 response. But make no mistake, the key drivers behind efforts to defer tariffs have nothing to do with facilitating access to PPE products or stopping the spread of COVID-19.

Our industry is being asked to do extraordinary things.  We are heeding that call, but we need help to ensure the supply chains we are creating overnight don’t evaporate tomorrow.  We need strong procurement policies and additional funding for our industries to ramp up and retool – not further measures that incentivize offshore production. We need to maximize the U.S. domestic production chain right now to every extent possible in helping fight COVID-19 and make the products American frontline workers desperately need. 

We need to provide immediate and substantial relief to our manufacturing sector and their workforce who are suffering enormously right now. It’s critical that we have a long-term U.S. government plan to ensure that we aren’t relying on offshore producers to make medically necessary, live-saving PPE.  We shouldn’t be providing handouts to reward the very companies that helped offshore these industries so many years ago.

Tariffs are one of the few mechanisms in place to help partially address the challenges U.S. manufacturers face in competing with imports from countries with exceptionally low wages, poor working conditions, and minimal environmental and safety standards.”

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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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Textile Industry Unites to Play Critical Role for the Nation’s Production of PPE Products

WASHINGTONThe National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement today from textile executives leading the nation’s unified effort to produce critical personal protective equipment (PPE) to help hospitals and healthcare workers fighting the COVID-19 pandemic.

In factories across the country, textile companies are retooling production virtually overnight to produce PPE products ranging from hospital gowns, face masks and shoe covers to scrubs. The industry is playing a critical role in the nation’s manufacturing strategy and solution to help contribute to the high demand for these products.

“Coordinating with local hospitals, healthcare organizations, the entire U.S. production chain and federal agencies, the textile industry has been at the forefront of the incredible manufacturing effort, contributing to the country’s rapid response to the rising needs of frontline workers,” said NCTO President and CEO Kim Glas. “This industry has taken the lead in this effort, utilizing American manufacturing facilities and workers, despite facing many challenges in this environment.  Our industry will continue to do all they can to serve the American people, frontline hospital workers and patients at this time.”

U.S. apparel and textile executives, representing the entire supply chain, from fiber to finished apparel, share their involvement in the monumental task of providing PPE products during challenging times.  

The quotes—for use in any articles you are developing—from textile and apparel executives below offer a snapshot of efforts throughout the entire supply chain to provide PPE products for our nation.

As a demonstration of this effort, NCTO shares a few of the many stories emerging from our NCTO members at this time:

Beverly Knits Inc.

“Our team has stepped up to the challenge of fighting Covid-19 and flattening the curve,” said Ron Sytz, CEO of Beverly Knits. “We have organized a team of 25+ companies with over 4,000 American textile and apparel workers, to manufacture personal protective mask for HHS.  Through NCTO and SEAMS [The Association & Voice of the U.S. Sewn Products Industry] we continue to engage with additional companies to help fight this pandemic and flatten the curve.”

Burlington Industries LLC

“Burlington is proud to be a part of an industry with such compassion and call to action as we have seen over the last couple of weeks in the fight against COVID-19,” said Allen Smith, president Burlington, Safety Components & A&E – Americas. “With 40 years of experience in medical fabrics, Burlington is glad to offer its reusable woven products and technical expertise to those within and outside our industry who are stepping up to help produce lifesaving PPE.  Our employees are committed to the cause and working tirelessly in North Carolina to increase production, reallocate resources and support the evolving needs as much as possible.  Reusable fabrics are critical in reducing the scarcity of PPE and increasing availability on the front lines, offering responsible solutions with advanced protection, comfort and durability where it counts the most. Throughout our Elevate portfolio of brands we are also offering support through the use of A&E technical threads and utilizing our network of contacts and expertise across Cone Denim and Safety Components to make connections, offer guidance and facilitate meaningful conversations to support our communities and healthcare heroes.”

Cotswold Industries Inc.

“Cotswold and Central Textiles have pivoted to making PPE substrates for single use non-woven fabrics for and also for reusable PPE,” said James McKinnon CEO of Cotswold. “We have ramped our reusable fabric production and hope to produce 100-150K/week very shortly.”

Gildan Activewear Inc.

“We are pleased to join forces with various business partners in the U.S. to reopen some of Gildan’s global manufacturing facilities under a strict biosecurity protocol to produce face masks and isolation gowns in support of the fight against the COVID-19 pandemic,” said Chuck Ward, president of Gildan Yarns. “We are also proud to have donated a number of N95 protective face masks to local hospitals or health and human services organizations in the U.S. to support front line healthcare providers who continue to deliver exceptional care to patients and their families during this crisis,” he added.

Glen Raven Inc.

“The U.S. textile industry has emerged as a critical part of the solution in protecting our frontline workers from COVID-19,” said Leib Oehmig, Glen Raven CEO and NCTO chairman. “Through our collaborative efforts across the industry and with our employees, customers, suppliers and the medical community, the industry has retooled many operations and is supplying important PPE like masks, face shields, swabs, wipes, gowns and many other products. Glen Raven, through our business units, is actively working with our partners across many industries and have aligned our resources to focus on PPE inputs where we are in the best position to offer solutions. These include inputs for gowns, face shields, mask covers, and temporary structures. As part of our response, Glen Raven has organized a fabrication group with several of our customers who are producing face shields and gowns. This group is collaborating with hospital systems across the country to design and scale production of these important products.”

Greenwood Mills

“Venturing into a completely new territory in less than a week’s time was certainly a calculated risk, but one that we feel will pay off in the long run not just for our company, but for our larger community,” said Jay Self, president and chief operating officer of Greenwood Mills. “We have made the switch from denim production to masks and gowns. The first full week of production will result in about 30,000 masks. At full capacity, the company will produce 500,000 masks and 300,000 gowns per week, with flexibility depending on the demand of the products. It’s a testament to our workforce and ingenuity that we were able to make this transition happen so quickly.”

Hamrick Mills

“We at Hamrick Mills have dedicated a significant portion of our manufacturing capacity to the production of scrubs, gowns, masks, and related PPE,” said Jim Hopkins, director of sales at Hamrick. “We are considered and designated as an essential business concern and are intent on doing our share to assist those in need­ patients, front line first responders, and the general public, during this national crisis.”

Hanesbrands Inc.

“We are proud to be working with the apparel consortium and the National Council of Textile Organizations to rapidly mobilize to meet such an important and critical national need for face masks during this pandemic,” said Michael E. Faircloth, Hanesbrands group president, global operations, American casualwear and e-commerce. “Our employees and those of our consortium partners have been working around the clock to transition production from basic apparel to face mask production. This has required amazing cooperation and close coordination among the government, raw material suppliers, logistics providers and our supply chain employees. Together we are achieving a monumental task, which has resulted in the manufacture and delivery of millions of masks already with hundreds of millions more to come soon. Apparel industry leaders, particularly the consortium members, have successfully turned on a dime to meet the greater good of society.”

Lenzing Fibers Inc.

“Like many companies, Lenzing was working to understand exactly what was needed during the early days of the COVID-19 pandemic and we already had fibers in a variety of PPE applications,” said David Adkins, Lenzing commercial manager-Americas Textiles. “Thanks to the information provided by NCTO and several other industry organizations we were able to better clarify market needs and determine and provide appropriate products to fit the markets requirement.”

Milliken & Company

“Many of Milliken’s U.S. customers in the flame resistant, workwear, and industrial space have pivoted their operations to manufacture PPE,” shared Chad McAllister, president of the Milliken Textile Division and EVP of Milliken & Company. “When we saw a need to shift to medical grade textiles, our team quickly stepped up. As of today, we have scaled production of these new products so that together with our customers we can help protect medical workers.”

MMI Textiles Inc.

 “For our part, MMI has been focusing on raw materials for all 4 gown levels, both immediate inventory and future production orders, N95 and personal protection masks, face shields and any other PPE raw material,” said Amy Bircher, president and founder of MMI.  “We successfully helped secure immediate raw material for Crye Precision, and they gave a shout out to us on a press conference with the Mayor of NYC.  We have secured finished masks to donate to local hospitals that we imported from overseas, and also bought face shields locally to donate.  MMI is stocking a variety of widths of elastic for use in a variety of PPE applications – our plan is to create a robust stock option so that customers can ultimately pull product for immediate delivery.”

Parkdale Inc.

“Parkdale has been an American company since 1916 and as such we feel a sense of duty and an obligation to answer our nation’s call for personal protective equipment,” said Anderson Warlick, Chairman and CEO of Parkdale. “We are proud to work with our industry colleagues as we work together to retool, re-equip and redirect our plants and supply chains so that every citizen in the United States gets a personal protection mask.”

Picanol of America

“The nature of Picanol of America, Inc., business is to support the U.S. textile industry, especially our weaving customers,” said Cyril Guérin, president of Picanol. “Spare parts, electronic repair and technical services are what we offer day in and day out. Throughout this ordeal, we have not skipped a beat, though the environment is clearly challenging. Our customers produce critical fabrics to be transformed in health care personnel uniform, mattress casing and sheets for the patients, and probably many other PPE. As long as our weaving customers will produce, we will stand by them.  This has created a tremendous amount of stress on our associates but their ‘forward looking’ attitude has been an inspiration. It is all about surviving this together.”

Schneider Mills

“Schneider Mills has been very active in the past few weeks in responding to many customer needs for fabric during the COVID-19 pandemic in the United States.  We have responded to hurried orders of fabric for the outdoor shelters you see outside medical facilities across America,” said Curt Parker, vice president of operations at Schneider Mills. “Demand in lightweight rip-stop fabrics being used for medical gowns and light weight tents has increased as well.  We are continuing to supply to the medical tape industry for 3M.  We are responding to a new customer for barrier fabrics in the medical end uses. We are pleased to be doing all we can to support our country in this war with COVID-19.  Our employees are putting forth great efforts in these changes as they occur rapidly.”

Shuford Yarns LLC

“Shuford makes yarn for several medical applications such as diabetic socks, gloves, cuffs for surgical gowns, towels going to the military through the Federal Prison industry. Shuford has been given a number of opportunities to participate in making yarns for PPE, surgical gowns etc…,” said Marvin Smith, president and CEO of Shuford. “We are working with a car manufacture who is making PPE for several hospitals in their local area. We also internally are using some of our people who are taking fabric from a few of customers and making PPE to give to people in our community.  With all the negatives in our country, our people have found ways to have a positive in our community.”

Standard Textile

“Our healthcare customers are on the front line of treating patients and saving lives, and we’re relentlessly working to ensure our customers and our communities have continuous access to essential supplies needed to safeguard the health of clinicians, patients, and their families,” said Gary Heiman, president and CEO of Standard Textile. Heiman is fiercely committed to manufacturing as much reusable PPE and other healthcare products as possible—as quickly as possible—to alleviate the stress placed upon the healthcare industry and support the fight against COVID-19.  “My concern is we are missing urgent collaboration opportunities with federal or state governments to allow us to serve healthcare workers who are at the frontline of this crisis,” said Heiman.

The Brickle Group

“The Brickle group will be starting production on a general everyday mask produced utilizing our filtration felt from our nonwoven division Bouckaert Industrial Textiles,” said Max Brickle, president of Brickle. “We have developed a supply chain of New England textile manufacturers to be able to produce these masks. The masks we are producing domestically are machine washable meant for everyday public use, not medical use. We are also involved in importing hospital grade PPE for the New England region.”

The LYCRA Company

“The LYCRA Company, the only spandex producer in the U.S., is proud to produce and supply LYCRA® fiber, nylon, and other quality fibers to our value chain customers during these unprecedented times,” said Julien Born, president, apparel for The LYCRA Company. “Now more than ever, the medical community and other frontline workers are in critical need of well-fitting Personal Protective Equipment (PPE) that helps keep them safe. We are encouraged by the quick action of many of our customers who have shifted production to produce masks and other protective devices. And with the inclusion of LYCRA® fiber, we hope to help our customers create a better wearer experience, so frontline workers can focus on what matters most – the health and wellness of our communities.”

TSG Finishing LLC

“We have just completed production trials on multiple non-medical woven upholstery fabrics which are now eligible for Level 1 and Level 2 (PPE) for gowns,” said Brian Rosenstein, CEO of TSG.  “We are getting ready to run full production on these.  The collaborative efforts of NCTO, IFAI, and INDA have been astounding. I am sure none of us feel we can move fast enough given this environment, but feel the entire textile industry has been very expeditious with response.”

Unifi Inc.

“We have more than 100 customers producing masks, gowns and other personal protective equipment needed by our first responders, medical personnel and military in the fight against COVID-19,” said Tom Caudle, president & chief operating officer of Unifi. “At Unifi, we’re proud to play a part in the fight by providing the fiber they need.” 

Wearbest Weavers LLC

“In light of the COVID-19 pandemic and the shortage of necessary medical supplies, the mill has been successful in creating and pivoting their production to PPE textiles. I am very proud of our team effort to turn around our production so quickly,” said Greg Thomases, vice president of Wearbest parent company Swavelle.  “We are fortunate to have a U.S. mill that provides us the capability to produce PPE product. We’ve accomplished a lot in just a few weeks and plan to continue innovating through this unprecedented time. Our hope is to help meet the needs of thousands of frontline healthcare 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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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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Coalition of Iconic American Apparel Brands & Textile Companies Heeds Call of Nation to Produce Medical Face Masks

March 21, 2020

WASHINGTONA coalition of iconic American apparel brands and textile companies, responding to the urgent call of the White House for medical supplies, have come together to build a supply chain virtually overnight and fast-track the manufacturing of medical face masks to help hospitals, health care workers and citizens battling the spread of the COVID-19 disease.

Parkdale Inc.– the largest yarn spinner in the U.S. headquartered in North Carolina—helped lead the effort to build the coalition with Hanesbrands, Fruit of the Loom and six other companies to set up a manufacturing supply chain and begin ramping up production of the masks.

The coalition consists of iconic American brands such as Hanesbrands and Fruit of the Loom, often competitors in the marketplace, who are banding together for the greater good of a nation facing one if its most monumental challenges.

American Giant, Los Angeles Apparel, AST Sportswear, Sanmar, America Knits, Beverly Knits and Riegel Linen are also part of the coalition working tirelessly to respond to a national emergency in the nation’s time of need.

Dr. Peter Navarro, assistant to the President and director of the White House Office of  Trade and Manufacturing Policy, worked with the coalition and helped expedite the production of these masks. The first face masks have been approved by the U.S. Department of Health and Human Services.

The companies expect to begin production on Monday and will make the first deliveries by mid-week.

They are dedicating their assets, resources and manufacturing capacities to create a high output of facemasks. Once fully ramped up in four to five weeks, the companies expect to produce up to 10 million facemasks per week in the United States and in Central America.

If companies are interested in dedicating resources to help the cause, please reach out to the National Council of Textile Organizations at kellis@ncto.org

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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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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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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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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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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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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CONTACT: Kristi Ellis

(202) 684-3091

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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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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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NCTO Welcomes Senate Passage of USMCA

WASHINGTON, DC—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, lauded Senate passage today of the U.S.-Mexico-Canada Agreement (USMCA).

“We are pleased the Senate voted swiftly to approve USMCA–a trade deal that we expect to significantly bolster textile exports to the Western Hemisphere, particularly to Mexico,” said NCTO President and CEO Kim Glas.

Mexico and Canada are the two largest export markets for the U.S. textile and apparel industry, totaling nearly $11.5 billion for the year ending Nov. 30, 2019, according to government data.

 “USMCA is a win for the textile industry,” Glas said. “The improvements it makes to NAFTA (the North American Free Trade Agreement) will only serve to generate more business for domestic producers and create more jobs and investment in the U.S.”

NCTO worked with the administration during negotiations on USMCA and secured several provisions in the trade deal including stronger rules of origin for certain textile inputs and increased U.S. Customs enforcement.

U.S. textile executives are ramping up to take advantage of the modifications in USMCA and some plan to build new business or expand existing business in areas such as pocketing and sewing thread, “Our member companies, making some of the most advanced textiles in the world, have long supported USMCA and are eagerly awaiting implementation of the trade deal,” Glas added. “We urge quick implementation of USMCA and thank the administration and Congress for their hard work to get the deal across the finish line.”

The USMCA updates and modifies the North American Free Trade Agreement (NAFTA) and makes significant improvements, including:

  • Creation of a separate chapter for textiles and apparel rules of origin with strong customs enforcement language.
  • Stronger rules of origin for sewing thread, pocketing, narrow elastics and certain coated fabrics.  Under the current NAFTA, these items can be sourced from outside the region – USMCA fixes this loophole and ensures these secondary components are originating to the region.
  • Fixes the Kissell Amendment Buy American loophole, ensuring that a significant amount the Department of Homeland Security spends annually on clothing and textiles for the Transportation Security Administration is spent on domestically produced products.

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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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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