Lawmakers to Seek Answers From Companies on Forced Labor; Akin Gump Warns More CBP Scrutiny Coming
Rep. Rashida Tlaib, D-Mich., along with the Trade Subcommittee and Intelligence Committee chairmen, and others, plan to ask the director of national intelligence to publicly release what information it has on forced labor, whether in camps or in factories where Uighurs are threatened they will be returned to detention if they do not work -- “especially information related to the textile and cotton industries, and the names of organizations and institutions benefiting from forced labor,” she wrote.
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Similarly, Rep. Ilhan Omar, D-Minn., is seeking other members of Congress to join her in sending letters to more than 40 retailers, apparel companies, technology companies, as well as industrial giants like General Electric and General Motors. In her sample letter, she said she's writing to express deep concern that the company was identified by the Australian Strategic Policy Institute (ASPI) as one that is linked to the use of forced Uighur labor.
“That American companies would be using forced Uighur labor, intentionally or unintentionally, is profoundly disturbing,” she wrote. For Abercrombie and Fitch, she said the company allegedly used two factories in Xinjiang as well as a yarn factory in another part of China that imported Uighur workers.
“As you are no doubt aware, the import of products made wholly or in part with forced or prison labor is in violation of Section 307 of the Tariff Act of 1930 (19 USC 1307.),” she wrote. Uighurs “have been allegedly subjected to enslavement, arbitrary detention, torture, enforced disappearance, and persecution against a collective group of people. Put simply, it is our strong belief that nobody should be profiting from these conditions.
“In light of the gravity of the situation, as we consider legislative options, we ask the following:
- Were you aware of these allegations before the release of ASPI’s report?
- What precautions have you taken regarding your supply chain, particularly in China, to ensure compliance with Section 307?
- What investigations have you undertaken of the above-mentioned situation?
- Do you affirm your commitment not to use forced labor, in China or elsewhere?”
Importers should expect more scrutiny of goods if their supply chains include Xinjiang even if the recent bill on forced labor of Uighurs (see 2003120032) never becomes law, Akin Gump said in a new International Trade alert. “Prospects for the bill right now are unclear with Congress almost exclusively focused on developing responses to the coronavirus pandemic,” it said, but noted that an Uighur-related bill that provides for sanctions against individuals and export controls on goods used to control the Uighur Muslims passed the House nearly unanimously (see 2001080039) and passed the Senate unanimously.
Early engagement with CBP and non-governmental organizations focused on human rights, “accompanied by supply chain vigilance, is critical to preventing the issuance or escalation of a withhold release order,” the alert said, and directed companies to CBP guidance, as well as resources at nonprofits, such as the responsible sourcing tool.