CBP Penalties for Textile Fraud Highest in Over Five Years
CBP issued $19.3 million in commercial fraud penalties for textile and apparel imports in FY 2023, up markedly from only $2.45 million in the previous fiscal year and the most in any fiscal year going back to FY 2018, according to enforcement statistics released by CBP on Oct. 26.
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The agency also seized more than 5,000 textile shipments valued at more than $129 million in FY 2023, and conducted audits that found over $2 million in additional duties owed, according to a CBP news release. CBP conducted laboratory analysis on 323 shipments, and 42% of them were “mis-declared or mis-described” upon their arrival to the U.S., the release said.
Overall, CBP conducted 27,886 cargo examinations on textiles in FY 2023, up from 16,177 in FY 2022. But the agency only found 1,818 discrepancies in those exams for a discrepancy rate of 6.52%, down from 2,762 and 17.07% in the previous fiscal year. The FY 2023 discrepancy rate was in line with past fiscal years going back to FY 2018; FY 2022 was an outlier.
CBP also said it received 30 e-allegations on forced labor for textiles in FY 2023.