The National Council of Textile Organizations (NCTO) has launched a high-stakes legislative campaign to block a new bill that industry leaders warn could reverse hard-won trade protections. In a formal letter to Mike Johnson, House Speaker and Hakeem Jeffries, Minority Leader; Kim Glas, President and CEO, NCTO urged leaders to reject the Secure Revenue Clearance Channel Act. According to the association, the bill threatens to effectively dismantle recent bipartisan efforts to secure the domestic supply chain against unfair competition.
The domestic textile industry currently supports over 471,000 American jobs and contributes an estimated $63.9 billion in annual shipments to the U.S. economy. For manufacturers who have invested $2.98 billion in new capital expenditures as of 2022, the threat of shifting trade rules remains a primary operational concern.
The battle over ‘De Minimis’ resurfaces
At the heart of the dispute is the ‘de minimis’ trade exemption, a rule that historically allowed packages valued under $800 to enter the US duty-free and with minimal inspection. While designed to streamline low-value trade, the loophole was increasingly criticized for allowing a flood of untaxed Chinese e-commerce goods into American markets.
Last year, Congress passed bipartisan legislation to phase out the exemption by July 2027, and the Trump administration accelerated this via executive action in late 2025. NCTO reports, these measures have already yielded tangible results: package volumes from offshore platforms have dropped significantly, while federal duty collections have risen. The industry asserts, the proposed Secure Revenue Clearance Channel Act would recreate these vulnerabilities by granting duty relief to foreign importers on packages up to $600 with reduced data requirements.
Addressing labor concerns and leveling the playing field
Beyond economic competition, the NCTO has tethered its opposition to the Act to national security and human rights standards. The association cited 2023 findings from the House China Select Committee, which revealed that Chinese e-commerce giants were shipping billions of dollars worth of goods duty-free while lacking sufficient due diligence to ensure products were not the result of forced labor.
In contrast, American manufacturers operate under stringent labor and environmental regulations. The NCTO argues, the current enforcement environment, which mandates proper inspection and levies duties on all commercial shipments, is essential to maintaining the integrity of US consumer laws. By requiring less information on foreign packages, the new legislation would make it nearly impossible for customs officials to verify origins or detect illicit goods, once again opening a ‘backdoor’ for offshore producers.
A strategy of resilience and domestic investment
The push to block the legislation is part of a broader industry strategy to prioritize a ‘yarn-forward’ supply chain and domestic production. In 2024, the US exported $28 billion in fibers, textiles, and apparel, underscoring the global competitiveness of American-made goods when trade rules are applied uniformly.
The NCTO remains a critical voice in Washington for a sector that provides over 8,000 products annually to the U.S. military and produces high-tech textiles used in aerospace and medical applications. Industry leaders maintain that the long-term viability of these manufacturers depends on a stable regulatory environment where offshore e-commerce platforms are held to the same duty and inspection standards as domestic businesses.
