Washington, D.C. — Janet L. Labuda, Director, Strategic Trade Operations Division of the U.S. Customs Service is known as "The Enforcer." On a panel discussing the recently passed African Growth and Opportunity Act, she explained the law she intends to enforce. "I am warning manufacturers in countries that benefit from AGOA that it is illegal to transship. If it occurs, your imports will be taken over by other governments."
Nations benefiting from AGOA will be allowed to export textile goods to the United States duty free. It aims to boost African production of wearing apparel.
But the prospect of transshipment was one of the major issues during Congressional debate over the Act. U.S. manufacturers and unions feared that large textile-producing countries like China or India would make clothes, send them to an African nation where a label might be sewn in and then ship them out to the U.S. as an "African" product.
"We know that sights have been set on Africa, that some African nations have already been approached," says Ms. Labuda. "We convinced the Congress that we could handle the problem," she explained, emphasizing the necessity for a tough stance.
Ms. Labuda warned that she and her enforcers will be making "surprise visits. And when the doorbell rings we expect factory owners to open the door. We will even look at your electricity bill. And if you don't have electricity, how many times the generator has been turned on."
African manufacturers will also have to maintain account books and production records for five years.
"And if you say you don't have them, understand that the U.S. Customs Department has a one-track mind on this point."
U.S. importers are subject to investigation as well. There is no appeal if found guilty. Ms. Labuda describes this stance as "tough love" for the Growth and Opportunity Act.