Recent Forced Labor Sanctions Could Indicate More Apparel WROs Coming, Arent Fox Says
Recent Treasury Department sanctions and Commerce Department entity list additions imposed for the use of forced labor in China's Xinjiang Province could indicate coming action by CBP to restrict imports from the region, Arent Fox lawyers posted Aug. 25. Among…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
those sanctioned by Treasury was the “Xinjiang Production and Construction Corps (XPCC), which reportedly produces more than 7 percent of the world’s cotton,” the firm said. “[D]ue to the tie-in, the Administration has drawn between the entity and forced labor in the Xinjiang Province, there is a risk that garments made from cotton produced by XPCC could be subject” to CBP withhold release orders (WROs). Similarly, Commerce added multiple Chinese textile and apparel companies to the entity list, which means “there is a risk that garments made from Entity List entities who are listed due to forced labor allegations could be subject to a CBP WRO.” CBP didn't comment.