The National Council of Textile Organizations (NCTO) has formally endorsed a bipartisan appeal from the House Textile Caucus, demanding. the Department of Homeland Security (DHS) implement a rigorous, comprehensive enforcement plan to combat systemic customs fraud. This push comes as domestic manufacturers contend with an era of unprecedented market disruption, where illegal transshipment, tariff evasion, and the exploitation of trade loopholes are eroding the economic viability of the American textile industrial base.
Closing regulatory loopholes to restore parity
Industry leaders have long identified the abuse of duty-free and inspection-free ‘de minimis’ shipments as a primary conduit for illicit goods entering the US market. As Klim Glas, President and CEO, NCTO noted, these predatory trade practices not only deprive the US Treasury of billions in potential revenue but also place legitimate domestic producers at a severe competitive disadvantage. The proposed enforcement framework seeks to mandate increased audits, systematic lab testing for origin verification, and the imposition of significant civil and criminal penalties for repeat offenders. According to industry data, the sector has already experienced significant contraction, with dozens of facilities shuttering their doors due to mounting pressures from foreign competitors.
Safeguarding the domestic industrial base
The gravity of the situation is reflected in the current industrial landscape, where domestic textile and apparel shipments reached approximately $60.9 billion in 2025. With nearly 453,000 workers employed across the supply chain, the industry is framing stronger customs enforcement as a matter of national economic security. By calling for the revocation of trade privileges for bad actors and advocating for greater transparency in Customs and Border Protection (CBP) activities, the NCTO aims to level the playing field. This strategy is designed to insulate the domestic sector from the volatility of global supply chains and ensure that trade policies are backed by consistent, effective oversight that protects American manufacturing investments.
The National Council of Textile Organizations (NCTO) is the premier trade association representing the US textile sector, spanning the spectrum from fiber production to finished sewn goods. Based in Washington, DC, it advocates for trade policies that boost domestic manufacturing and protect national industrial capacity. Through strategic partnerships with Congress and federal agencies, NCTO drives policy initiatives to enhance supply chain resilience, support defense procurement through the Berry Amendment, and combat unfair global trade practices.
