More Ways to Get Your Money - Valuation of Textiles and Apparel From China

In a differentiation effort and a true desire to informthe value of the product plus the applicable duty
and educate, I will try to not constantly reiterate andrates. It is actually one of the only Constitutionally
rant and rave about the same things all theoutlined and defined ways in which the Federal
conservative writers are ranting about. I am going toGovernment is allowed to tax you. It is also
be reporting and commenting to you on items beforeimportant for American business to compete on level
and being considered by Congress that you willplaying fields and not suffer through "unfair" trade
probably not read about elsewhere. In mypractices that artificially make a competitors product
professional capacity, I have to keep up with currentless expensive. Real cases like this would include
events that may effect my industry. I stumbled uponforeign government subsidies to industries, prison or
this little tidbit last week, from a publication calledslave labor, large companies using predatory practices
Broker Power.to run home industries out of business, but I digress.
The undervaluation of China origin textiles and apparelThe Government has limited leeway in raising duty
is thought to be a huge problem, in part because therates for products because of global trade
textile and apparel industry represents 21% of allagreements and that type of thing sets off trade
importers, 5% of the value of all imports, and 42%wars and all sorts of international attention - so in
of all duties collected.general, they don't like to do it. Instead, they will
Thus, Customs and Border Protection will betake the valuation approach to accomplish the same
investigating whether or not the value of thegoals.
products coming into the country from China areThis is how it works, if Customs determines that a
fairly valued. Up until now, I would have been finet-shirt being imported is really worth $5.00 instead of
with this. Times have changed and I believe that the$.50 then the duty and tax due on the product is
above move could be used solely for political gain andincreased greatly. The importer will then of course,
for gathering more money to the insatiable Federalinclude the increase in cost to you - the consumer of
Beast.the T-shirt.
How it works is thus, each import into the USA has aThe beauty of it for the Federal Government is that
declared value. The Importer pays duty and taxes onyou will never know.