Dominican Republic warns of fake “Made in US” labels

The Dominican Association of Textile Industries (ADITEX) is concerned about the large

volume of garments and textiles sold in the Dominican Republic with ‘Made in US’ labels on clothes that may have actually been produced elsewhere.

According to Diario Libre, ADITEX president David Cortés bases the association’s suspicion on the competitive prices that the items in question are sold for. Given that the minimum wage for an eight-hour shift in the Dominican Republic is 473 pesos (11 US dollars) and thus roughly five times that of the US with 58 US dollars (2,514 pesos), it is doubtful that any garment or textile produced in the US could be sold at a competitive price in the Dominican Republic.

By adding the “Made in US” label, non-NAFTA countries evade hefty taxes on textiles and garments. In case of the Dominican Republic, items imported from the US or any other country that is part of the DR-CAFTA agreement are not subject to taxes that would otherwise incur a 20 percent tariff and an 18 percent sales tax.

In addition to lost customs revenue, Dominican garment manufacturers also suffer from items that are wrongly marked “Made in US” as the local textile and apparel industry can’t develop as quickly as possible and may lose out on orders.

Currently, the garment industry of the Dominican Republic employs more than 20,000 people in over 2,000 garment factories in the formal and informal sector. The country is also home to one of the Top 10 design schools in the Caribbean and the most important fashion week in the region.