Comments on: submarining

By: stylebites

stylebites — Mon, 09 Oct 2006 12:01:49 +0000

THANK YOU for posting this. I’ve been wondering for months and months what a friend was talking about when she said there are “sweatshops at sea” and transhipment is obviously the practice that she was referring to.

Great topic.

By: big Irv

big Irv — Tue, 12 Sep 2006 14:07:22 +0000

Did any mention that companies that tranship through Canada into the US circumvent in most cases all duties. Not only is the US Treasury being ripped off bigtime (hundreds of millions)but our local manufacturing industry is taking devastating hits as a result.
You see at one time, everyone knew what was going on, although not much was done to prevent it.We looked upon it with disdain, shrugged it off. Today, when factories are scaling back,closing or sending people home for lack of work, I wonder if anyone is now questioning this industry wide silence?
Here in Ontario, our Goverment has set up hotlines so we can report ” irregularities” on someone collecting social assistance. I wonder if US Customs has a “snitch” line, as I do know most legit factories in Canada are absolutely fed up up with this damaging practice.
I can guarantee most US and CDN designers that play by the rules as well are pissed as well.
Does anyone know of a reporting procedure for reporting transhipment thievery?

By: Andrea

Andrea — Mon, 11 Sep 2006 18:38:54 +0000

Danielle:

As a California designer…yes, quotas are a great thing. It keeps the playing field slightly level. The cost of doing business in the US is astronomical and if there weren’t quotas and monitering agencies, us little guys would have even less hope of staying in business or starting one altogether! I am all for a free market, but if you have countries that have a lower cost to do business then you have a monopoly and consequently serious political problems…he(or she) who has the money has the power and if the person that holds the power is less than honorable, we all have problems.

It’s an interesting study, in all. The US is a world power and is also a policing agent for the world. Something as “small” as a quota on how many units of underwear can enter the country may seem inocuous, but that small practice keeps countries like Nicaragua, Gauatemala and India in the global running and able to make money through exports to the US, not to mention (slightly) protecting its own citizen’s business interests to have a viable textile producing community…tho’ after “deregulation” our cotton mills took a huge dive as well as our domestic production houses. Moreover, this kind of regulation is necessary political leverage. China really and truly has it in for the US. As long as we have control over how dependant we are on their workforce for goods and services, we have a polite stalemate that will never allow them the financial leverage to attack us. I wish I new more about Canada and its place in the political/economic structure of world textile trades. Maybe you can enlighten.

Great topic!

Andrea

By: big Irv

big Irv — Mon, 11 Sep 2006 16:25:06 +0000

Very informative. This practice was commonplace even before quotas were dropped in 2005. It started years ago with US and CDN brands wanting to have an illustrious Made In Canada label in their outerwear and outdoor apparel and they really didn’t want to pay fair local prices for it.

US Customs employs “Jump” teams to visit overseas and domestic factories to verify and inspect for evidence of transhipment. In Nov 2005, they earmarked 160 factories in Hong Kong. They found 65 “closed” or had filed for cancellation of their HK permit, 48 factories refused US Customs entry, and several of the others were currently under investigation by the Hong Kong government.
I suppose when they turn up the heat in Hong Kong or other parts of Asia, Canada might seem a little less obvious.

What some apparel companies will do to squeeze every last cent out of a piece of clothing.