Cited: ApparelNews.net

Businesses being complicated by the dwindling world of US yarn mills for US and Central American knitters that try to comply with the complicated regulations of the DR-CAFTA. According to Keith Dartley, president of Swisstex Direct in Los Angeles, the marketing and sales arm for Swisstex California and Swisstex El Salvador, it is getting harder to find a steady supply of U.S. yarns that can be delivered to his company’s knitting operations in El Salvador in a timely manner.

Stowe used to supply about 30 percent of Swisstex’s yarn in El Salvador, and Ramtex provided another 10 percent. Now Swisstex El Salvador is using ring-spun yarn from primarily Parkdale Mills and Wellstone Mills. However, Swisstex is finding that with fewer U.S. yarn suppliers, delivery times are getting longer. For high-quality, ring-spun yarn, shipments take about one month to arrive.

“There are retailers who are expecting faster delivery than ever right now. You don’t know what is coming [in terms of orders] until it shows up, and then you are scrambling,” Dartley said. “I’m concerned that when business gets stronger again, the delivery times will go up further, and at some point, there may not be enough yarn for delivery.”

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Under DR-CAFTA, U.S. manufacturers have an option to buy Central American yarn if U.S. yarn is unavailable. But that option is tricky because much of the local yarn is already committed to local knitters and garment makers. “They will only sell you yarn if they have excess capacity, which is hard to plan for purchasing,” Dartley explained.

Once the yarn prices began dropping, and textile executives began looking carefully at the supply chain, the true story of the cheap yarn began to unravel. NCTO’s Johnson said illegal yarn importers made mistakes along the way by filing false paperwork. Through shipping records, textile experts unearthed that yarn was coming into Miami from Asia, being relabeled as U.S. yarn and then sent off to Central America.

Parkdale’s Nation said one of the main culprits is a shell company called Yarns America, whose Web site says it is based in Lawrence, N.Y., and has plants in North Carolina, South Carolina and Alabama. Its total capacity is listed as 526,400 spindles, which seems amazing when compared with Parkdale’s capacity of about 250,000 spindles,

“Yarns America doesn’t exist,” Nation said. “The amount of yarn they produce is supposedly more than us, but we had never heard of them. We would know them if they existed.”

Several calls to Yarns America resulted in the same phone message saying that “all lines were presently busy,” even when the calls were made at 8 p.m. (New York time). Textile executives told the House panel that it was frustrated with U.S. Customs and Border Protection doing very little to resolve this problem.

NCTO’s Johnson said his group has met regularly with customs officials, the U.S. Trade Representative’s office and the U.S. Department of Commerce but has become aware that the government lacks the resources and personnel to battle the complicated issue of transshipments. The number of trade-preference claims reviewed last year, Johnson said, was only 1,500 of approximately 1.5 million claims made under the North American Free Trade Agreement, the Andean Trade Preference Act and CAFTA.

However, Janet Labuda, U.S. Customs’ director of textile and apparel policy and programs in Washington, D.C., said her office has made trade-preference claims an enforcement priority. Last year, she said, customs collected $5.5 million in fines for denied trade-preference claims.

“We are certainly trying to work with domestic industry to address their concerns and allegations,” Labuda said. She added that by the end of this fiscal year, Sept. 30, customs will have conducted factory inspections in every CAFTA country to ferret out transshipments and false claims. “We are doing our best to ensure appropriate enforcement of our textile laws,” she said.

But textile executives want to see more. They are hoping Congress passes a Textile Enforcement Bill to allocate new resources, money and tools to help customs deal with this issue.

NCTO would like to see more import specialists working at the nation’s principal ports, particularly in Miami; Los Angeles; and Long Beach, Calif. The textile industry believes there needs to be more trade verifications done by customs inspectors, more training for textile and apparel import specialists, and a rapid-response team of apparel and textile import specialists created at the ports to target fraud outbreaks.

“If we can catch a few of the bad guys, it most likely would make a big difference with the rest of them,” he said. “We are working hard to save American jobs and revenue for the government. I don’t know what is wrong with that.” Fraudulent goods should be seized instead of fining those that commit the crime according to Parkdale’s. Laws concerning import of apparel and textiles needs to be changed so that customs can help prevent future problems such as this.

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My Take: If these illegal yarn importers are making so many mistakes, then it should be easy to stop them. The quicker they stop them, the quicker it will help the economy. Too many people are out of work as it is, not to mention the price is going up.

The price of yarn may not be very important to many people, but to crafters is very important. Even to apparel manufacturers it is be important. Yarn is also used in mass production of various pieces of clothing like sweaters. Those manufacturers also employ hundreds of people who also purchased yarn and sweaters.

Yarn is also used to make wholesale headbands for infants and toddlers. The less yarn that is available for less handmade gifts you can buy for your little girl. That means that beautiful flower hat that she wants may not be available. However, you can still find vendors online where you can purchase a hair bow or baby headbands at your leisure.

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