Getting textiles through customs appears to be becoming tougher these days. With the cost of manufacturing clothing reaching unprecedented heights, some apparel companies have resorted to undervaluing their shipments and registering documents with bogus information to avoid the higher tolls.
Some even utilize fake shipping addresses and shipping duty-free to Mexico.
Because of these actions, customs agents have taken to zealously tracking and capturing fraudulent shipments. The recent crackdowns are a result of a new program called “Knock and Talk”. They knock on your door and take you to task.
Customs has started detaining suspect goods at port as well. Unfortunately, with the delays possibly amounting to over a couple of weeks, the shipments lose value the longer they remain undelivered. A number of apparel manufacturers have even decided to pay more to get their products through customs faster.
The retail market will definitely be affected by the recent developments. If the manufacturers pay higher fees on their goods, it’s logical that the prices from both outlet stores and off-price retailers will rise.
For a more in-depth look into the matter, visit this article.