Chinese online shopping platform Temu has no procedures to comply with the Uyghur Forced Labor Prevention Act, which “all but guarantees” imports from the company violate the UFLPA, the House Select Committee on China said this week. In a new report, the committee said both Temu and Chinese online retailer Shein “rely heavily” on the de minimis exception when shipping packages to the U.S., allowing them to avoid CBP scrutiny of potential forced labor violations.
The Federal Maritime Commission this week released a revised version of its proposed rule on unreasonable carrier conduct to amend and add to a rulemaking that was widely criticized by shippers and lawmakers last year (see 2301250032, 2211090026 and 2210280051). The new supplemental proposed rule offers new definitions, clarifications, edits and additions that the FMC hopes will allow it to better implement a congressional mandate to address ocean carriers that refuse vessel space to shippers.
German container shipper Hamburg Sud must pay nearly $10 million to OJ Commerce, an American e-commerce business, after Hamburg retaliated against OJC for threatening to file a complaint with the Federal Maritime Commission, the FMC’s administrative law judge ruled June 7. The massive fine came after the FMC said Hamburg Sud, owned by major shipping line Maersk, violated the Shipping Act’s anti-retaliation provision and refused to fulfill contract terms.
NEW ORLEANS -- Charge complaints before the Federal Maritime Commission are increasingly trending toward significant settlements or awards, industry officials said, urging shippers to file complaints if they believe they’re facing unfair carrier practices. Carriers are choosing to settle rather than draw the FMC’s attention, they said, especially for complaints involving demurrage or detention fees.
A new House bill could allow the Federal Maritime Commission to block certain “anticompetitive” agreements between ocean carriers and marine terminal operators without first having to secure a federal court order. Rep. John Garamendi, D-Calif., introduced the bill, called the Ocean Shipping Competition Enforcement Act, after FMC Commissioners Max Vekich and Carl Bentzel asked him to “make this critical change in federal law,” Garamendi said.
CBP is taking steps to automate its detention processes with a focus on shipments detained for forced labor, said Lisa Santana Fox, director of CBP’s Fines, Penalties and Forfeitures Division. The effort follows December recommendations from the Commercial Customs Operations Advisory Committee, which said CBP should develop a single automated system for its detention and seizure process (see 2212080030).
CBP is working on a new, “custom-built” portal for its Customs Trade Partnership Against Terrorism program, including a new dashboard that will give CTPAT users insight into their examination rates and cost savings, said Manuel Garza, CTPAT director. The agency hopes to roll out the portal in phases beginning later this year.
Senators unveiled legislation this week that would give the administration new authority to block transactions with TikTok and other foreign technology products that threaten U.S. national security. The bill, which has bipartisan support and was endorsed by the White House, would require the Commerce Department to establish new procedures to prohibit or mitigate transactions involving information and communications technology products “in which any foreign adversary has any interest and poses undue or unacceptable risk to national security.”
A new set of recommendations previewed by a member of the Federal Maritime Commission this week could help carriers, ports, railroads and others better harmonize supply chain data and information sharing. Commissioner Carl Bentzel, speaking during a Feb. 15 Commerce Department advisory committee meeting, said he hopes to know this summer whether the FMC plans to move forward with a formal rulemaking.
The U.S. should further regionalize its supply chains to reduce dependency on China and other countries in case of future global trade disruptions, some experts said during a virtual conference this week hosted by the Washington International Trade Association. But at least one expert disagreed, saying global supply chains reduce risks, not exacerbate them.