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NCTO urges House to stop bill reopening loophole harming US textiles

13 Feb '26
2 min read
NCTO urges House to stop bill reopening loophole harming US textiles
Pic: Shutterstock

Insights

  • The National Council of Textile Organizations urged House leaders to block the Secure Revenue Clearance Channel Act, warning it would reopen a trade loophole and hurt US textile manufacturers.
  • NCTO noted that measures had already been taken to end de minimis, increasing duty collections and enhancing enforcement, and warned that the bill could undermine oversight and benefit foreign exporters.
The National Council of Textile Organizations (NCTO) has urged House leaders to oppose the Secure Revenue Clearance Channel Act, warning that the bill would effectively reopen a trade loophole and harm United States (US) textile manufacturers.

In a letter to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries, NCTO president and CEO Kim Glas said Congress had already acted on a bipartisan basis to end the de minimis provision after identifying significant harm to domestic industries.

Glas noted that a 2023 review by the House China Select Committee found that Chinese e-commerce platforms had shipped billions of dollars’ worth of goods to the US without paying import duties, while US companies incurred substantial costs. The platforms were also found lacking in due diligence mechanisms to ensure goods were not linked to forced labour.

Congress last year passed bipartisan legislation to end de minimis, effective July 2027, while the Trump administration moved to close the provision to commercial shipments globally through an executive order effective August 2025. According to the letter, small package volumes have since declined, duty collections have risen and domestic producers and workers have benefited, the NCTO said in a press release.

NCTO warned that the proposed legislation would once again ease duty requirements on low-value imports, reduce information requirements on packages valued up to $600 and recreate enforcement gaps, with China likely to benefit most.

ALCHEMPro News Desk (CG)

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