In 2010, a significant drop in domestic cotton production in the United States led many spinning companies to turn to international imports. However, a major incident occurred when a Texas-based textile company imported 150 tons of cotton from India, only for inspection authorities to discover that over 40% of the shipment contained unusable waste cotton. This discovery sparked a serious investigation and raised concerns about the quality and integrity of the import process.
The company signed a contract with an Indian supplier in October 2010, agreeing to purchase 150 tons of cotton. When the shipment arrived in December, staff from the entry-exit inspection and quarantine department conducted routine checks and noticed unusual characteristics in the cotton fibers—too short and visibly damaged. Samples were sent to the laboratory for further analysis, which confirmed the alarming presence of high levels of waste cotton, commonly referred to as scrap.
As a result, the Texas inspection and quarantine authorities immediately sealed the entire shipment, which consisted of six containers holding 900 bales of cotton. The case was reported to the Shandong Entry-Exit Inspection and Quarantine Bureau, which dispatched a team of experts to conduct a field inspection. According to Zhou Baochang, one of the lead experts, more than 40% of the cotton packages in this batch contained waste material, making the entire shipment unsuitable for normal production. This was the first time such a large-scale fraud had been uncovered in Shandong, and the level of adulteration was considered highly unusual.
Li Li, deputy director of the Texas Entry-Exit Inspection and Quarantine Administration, noted that the contract value amounted to $499,700, approximately RMB 3.3 million. While minor variations in grade and weight are common due to climate differences and inspection standards, the issue in this case involved deliberate mixing of man-made fibers with waste cotton—an act that is clearly fraudulent and undermines the integrity of international trade.
It’s worth noting that cotton is classified as a sensitive bulk import in China, requiring mandatory inspection by the relevant authorities. Waste cotton, on the other hand, is strictly restricted by the state and has no commercial value unless approved by AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine) and SEPA (State Environmental Protection Administration). This case highlights the importance of strict oversight in the import process to prevent illegal or substandard materials from entering the market.
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