Dave Camp: “If the gentleman would yield, we are currently working with U.S. Customs and with the Koreans to avoid this problem. The…”

“If the gentleman would yield, we are currently working with U.S. Customs and with the Koreans to avoid this problem. The agreement itself includes a number of aggressive provisions to address transshipment. In addition, U.S. Customs and South Korean Customs have worked closely to develop state-of-the-art procedures, including advanced risk management techniques. For example, textile products are automatically categorized as ``high risk'' and subject to a greater level of scrutiny by U.S. Customs. In addition, the agreement authorizes textile-specific fraud detection and verification programs. For example, article 4.3 of the agreement requires the South Korean Government to share detailed information about textile manufacturers in South Korea, including production capacity, supplier information, and machinery. This allows U.S. Customs to quickly and accurately estimate likely production and to flag suspicious shipments and companies. The agreement also allows U.S. Customs to send inspectors to South Korea to conduct on-site verifications to prevent evasion and transshipment. These inspectors are allowed to make unannounced visits; and if the South Korea firm refuses to allow U.S. Customs officials to inspect, Customs can suspend preferential tariff treatment for goods from that company. U.S. Customs maintains a permanent Customs liaison in our Seoul Embassy who focuses closely on transshipment issues.…”