December 5, 2005

U.S. Customs and Border Protection Eliminates Requirement for Textile Declaration
(FedEx Canada Web site)

U.S. Customs and Border Protection (CBP) recently announced the elimination of the textile country of origin declaration (TEXCO) for wearing apparel and other textile items imported into the U.S. Instead, CBP now requires a manufacturer identification code (MID) on the customs entry for the actual manufacturer or producer of the apparel or textile items. The customs broker will determine the MID code based on the manufacturer's name and address provided by the exporter. These interim changes became effective on Oct. 5, 2005, the date of publication; however, enforcement by the CBP will not begin until Nov. 18, 2005.

The elimination of the TEXCO is a positive development; however, certain information found on the TEXCO is still required for customs entry and release. The full name and address of the manufacturer for each textile item being shipped must be included on the customs invoice or as an attachment - this may require exporters to adjust their current document practices. If multiple manufacturers produced items in a shipment, then the full name and address of each manufacturer must appear on the customs documentation. Exporters no longer using the TEXCO must ensure that all required information for textiles and apparel commodities are included on the customs invoice, as well as a clear description (i.e., knit or woven, fabric content and gender).

The change, announced Oct. 5, 2005, results in part from the elimination last January of quotas on textiles and apparel originating in World Trade Organization (WTO) member countries. However, the new MID requirement applies to all textiles imported into the U.S, including those from non-WTO countries, all entry types (i.e., formal, informal and quota), and textiles and apparel eligible for special provisions of a Free Trade Agreement (FTA).

Please note: U.S. Customs Brokers' automated systems may require programming changes to provide the new information for multiple manufacturers.

CBP is accepting comments concerning the new requirements until Dec. 5, 2005. FedEx and others in the trade community are working with CBP to ensure that this change is implemented as smoothly as possible. For details, please visit the CBP Web site.