Schumer Urges Us Customs To Reverse Decision Imposing Tariffs On Used Clothing That Could Force WNY Rag Manufacturer To Close Its Doors

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Schumer Urges Us Customs To Reverse Decision Imposing Tariffs On Used Clothing That Could Force WNY Rag Manufacturer To Close Its Doors

U.S. Senator Charles E. Schumer today urged U.S. Customs and Border Protection (CBP) to drop an unjustified and potentially lethal 32% tariff on worn clothing and textile materials that Maxtex Fibre Recycling, Inc. imports for use in its rag manufacturing business. If CBP's decision is not reversed, the added tariff could force the Western New York business to close its doors.

Maxtex depends on imports of donated clothing that charities deem unwearable, for production of their top quality rags. Maxtex has been operating in Western New York for over 17 years and employs thirty-five people. Bulk shipments of worn clothing and textile materials normally enter the United States duty free. "It is simply unfair for CBP to slap a crushing 32% tariff on Maxtex Fibre Recycling out of the clear blue sky," said Schumer. "For years this company has employed Western New Yorkers by taking unusable worn clothing and making it into rags. Maxtex facilitates an important service to the community and is an economic engine in the region. This unwarranted tariff classification decision could shut this engine down. "

Maxtex Fibre Recycling, Inc is a wiping cloth manufacturer that recycles used clothing donations from Goodwill and the Salvation Army by turning them into rags. Goodwill and Salvation Army stores throughout the country are initial recipients of used clothing donations. These organizations sort out the used clothing donations into usable items for sale in their retail stores and surplus items for sale to intermediary companies for reuse, many of which are located in Ontario.

The intermediary companies export the good usable clothing to third world countries. The companies also machine compress the unwearable worn clothing into thousand pound bales for re-export to the United States. Maxtex, with production facilities in Medina and Eden, New York, imports these bales of unusable worn clothing and cuts the materials into wiping cloths.

"This is classic example of CBP throwing the baby out with the bathwater. I will put a full-court press on CBP to get them to reconsiders its ill-advised decision, so that this valuable business is not forced to close its doors forever," said Senator Schumer.

For years Maxtex has been importing this material into the United States under a Harmonized Tariff Schedule classification which provides for duty-free entry of bulk packings of worn clothing. Recently CPB slapped a 32% duty rate on Maxtex's imports of bales of unusable clothing, saying that samples pulled from one bale showed no signs of wear. CBP's actions and findings are incongruous with the recent visit of three CBP agents to Maxtex's Eden facility where the agents took the opportunity to view Maxtex's entire production process - from unpacking the thousand pound bales to cutting the materials into wiping cloths. Maxtex will be forced to shut down its wiping cloth production facility if the classification issue is not resolved soon because it is nearly out of raw material.

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