Foreign workers from Bangladesh are preparing to sue Sony and Panasonic in U.S. court over forced labor conditions at their former employer in Malaysia, Kawaguchi Manufacturing, a plastics supplier for the two companies.
Forced Labor
CBP is the primary U.S. agency tasked with combating forced labor in international trade. It is the only agency with legal authority to take enforcement action and prevent entry into domestic commerce of goods produced with forced labor. CBP combats forced labor by issuing Withhold Release Orders (WROs) and Findings, and enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), and Countering America’s Adversaries Through Sanctions Act (CAATSA). Goods subject to WROs and Findings, UFLPA, and CAATSA status cannot be entered at any ports of the U.S.
CBP processed more than 2.8 million entry summaries in December, valued at more than $290 billion, according to the agency's monthly update. That identified estimated duties of nearly $7.4 billion to be collected by the U.S. government.
The Office of the U.S. Trade Representative released a trade strategy to combat forced labor, which includes policy successes during the Biden administration and "areas for potential future action" for the next administration, it announced in a Jan. 13 news release.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Cotton and textile manufacturers, mining companies and manufacturers producing solar modules with polysilicon were among those targeted for inclusion in the Department of Homeland Security's list of companies flagged for using forced labor or sourcing materials from the Xinjiang region in China.
The Department of Homeland Security has added 37 more companies to its list of entities that may be using forced labor from the Xinjiang region of China, bringing the total number of companies on the list to 144. Three energy companies were added to the Uyghur Forced Labor Prevention Act Entity List in the category of companies allegedly harboring or using forced labor, while 35 companies within the textile, energy and solar industries were added for sourcing materials from the Xinjiang region or participating in government-supported poverty alleviation schemes. One company, a zinc manufacturer, was flagged for using forced labor and sourcing materials from the Xinjiang region. The listings take effect Jan. 15, according to a Federal Register notice.
U.K. lawmakers at a hearing held Jan. 7 described a Shein lawyer's immediate refusal to answer questions about cotton sourcing in the company's supply chains as "bordering on contempt."
A policy analyst with Washington think tank Information Technology and Innovation Foundation argues that CBP should conduct randomized audits using forensic testing technology to ensure that goods imported from Chinese e-commerce platforms, such as Temu, are abiding by federal regulations aimed at preventing the use of forced labor from the Uyghur Autonomous Region in China.
A CBP spokesperson recommended that companies seeking to ensure their supply chains are free of forced labor consider conducting a third-party audit of their supply chain, according to comments supplied by the agency when International Trade Today sought CBP's feedback on recent allegations that outdoor lifestyle retailer REI might have forced labor in its supply chain (see 2501020035).
A December report from the Labor Center at the University of Massachusetts Amherst alleges that outdoor lifestyle retailer REI has not been vigilant about ensuring the prevention of forced labor in its supply chain. REI said it's "deeply committed" to holding supply partners to "the highest standards of accountability."