At a March 24 hearing of the Homeland Security Appropriations Subcommittee, Congresswoman Roybal-Allard called on the Acting Commissioner of US Customs and Border Protection (CBP), David Aguilar, to do more to prevent Chinese steel products from illegally entering the US market.  “This kind of illicit shipping,” she said, “puts American business at a competitive disadvantage and ultimately costs American manufacturing jobs.”

Steel tubing from China is supposed to be assessed import duties of up to 264% of its market value.  Unfortunately, manufacturers in that country have increasingly sought to deceive US Customs officials in an effort to avoid paying these tariffs.  Shipments have been funneled through ports in Malaysia or intentionally mislabeled to conceal their contents.  In one particularly egregious case uncovered by steel industry investigators, a consignment of tubing bound for Los Angeles was marked “used books” to avoid detection. 

As the Congresswoman noted at yesterday’s hearing, CBP’s failure to stop industrial smuggling has real consequences for American workers.  Without the duties that Customs collects, Chinese steel products are significantly less expensive than those made in the United States.  CBP therefore has a critical role to play in ensuring a level playing field for American manufacturers, especially at a time when so many are struggling to stay afloat.     
 
In response, Acting Commissioner Aguilar indicated that he was aware of the problem and had recently participated in discussions with customs officials in Los Angeles about how best to increase CBP scrutiny of Chinese imports.  Congresswoman Roybal-Allard, whose district includes two steel tubing manufacturers that together employ more than 250 people, promised to follow-up to ensure that the agency is taking meaningful steps to crack down on fraudulent shippers.

A member of the Homeland Security Appropriations Subcommittee, Congresswoman Roybal-Allard is a longtime advocate for enhancing the security of America’s seaports and has helped the Ports of Los Angeles and Long Beach to obtain vital federal resources to meet their security needs.