The National Council of Textile Organizations (NCTO) has welcomed the House passage of the America Competes Act, a legislative package that will help close the de minimis loophole on duty-free imports from China and also renew the Miscellaneous Tariff Bill (MTB), both important provisions to U.S. textile manufacturers.

According to Kim Glas, President and CEO, NCTO, the legislation contains a provision that would effectively prohibit China from exploiting the Section 321 de minimis mechanism in US trade law, a win for US textile producers and workers.

The Import Security Fairness Act allows imports valued under $800 to come into the United States without paying duties and taxes, bypassing inspections by U.S. Customs and providing a backdoor to Chinese goods produced with forced labor. The loophole has not only fueled the rise of imports from foreign e-commerce companies and mass distributors, but it has also put our domestic manufacturers and workers at a competitive disadvantage.”

Another important provision in the legislation renews the MTB for two years, which would extend limited tariff relief on a range of manufacturing inputs used by US textile producers.