Mexico and Canada emphasized how the COVID-19 pandemic has proven the need for interlinked supply chains, but U.S. Trade Representative Katherine Tai emphasized supply chains' downside as she, Mexico's economy minister and Canada's trade minister sat down to the first Free Trade Commission meeting of the USMCA. Tai said, "Not only have we discovered the fragility of our supply chains, but we have just begun to appreciate the degree to which they run counter to our collective goals of ensuring that workers within North America, and outside it, are paid a fair wage, in a safe workplace."
CBP is now using audits in some cases to make sure e-commerce importers are compliant with the regulations, John Leonard, acting executive assistant commissioner for trade, said while speaking during a Coalition of New England Companies for Trade conference May 13. “We have begun to utilize them in the small package space, but it's baby steps,” he said. Many of the “stakeholders are not traditional importers that will have a normal set of auditable books and records that we're used to with larger entities.”
Arent Fox is launching a Forced Labor team led by Angela Santos to assist companies in implementing forced labor compliance procedures, the firm announced in a May 12 alert. Given CBP's increased focus on forced labor in global supply chains, the need for proper import compliance and supply chain due diligence is at an all-time high. The new team seeks to help with that compliance and offers other services such as protests and petitions for release of seized merchandise, forced labor codes of conduct, supplier forced labor agreements, supply chain evaluations, customs questionnaires, forced labor audits and protest, forfeiture and customs penalty cases, according to the alert.
The Customs Rulings Online Search System (CROSS) was updated May 12. The following headquarters rulings were modified recently, according to CBP:
U.S. Trade Representative Katherine Tai, in her second day of testimony on Capitol Hill, heard again and again from members of Congress who are hearing from companies in their districts that they want Section 301 tariff exclusions back. She heard repeatedly that the 9% countervailing duties on Canadian lumber are making a bad situation worse. And she heard that the Miscellaneous Tariff Bill and Generalized System of Preferences benefits program should be renewed. On each topic, both Democrats and Republicans shared concerns, though on GSP, Republicans only spoke of the cost to importers, while Democrats worried about the effects of GSP on the eligible countries. Tai testified for more than four hours in front of the House Ways and Means Committee on May 13.
Efforts by Uniqlo to prove that no connection exists between a shipment of men's shirts and cotton from the Xinjiang Production and Construction Corps in China were insufficient, CBP said in a May 10 ruling. CBP stopped a shipment at the Port of Los Angeles/Long Beach in January, about a month after the agency issued a withhold release order on all cotton products made by XPCC (see 2012020071).
Rep. Jared Huffman, D-Calif., and Rep. Garret Graves, R-La., are co-sponsoring the Illegal Fishing and Forced Labor Prevention Act, which would require importers to provide more information on imported fish and shellfish at least 72 hours before entry, and require that all importers have an International Trade Fisheries Permit. It would expand the reach of the Seafood Import Monitoring Program at the National Oceanic and Atmospheric Administration, which currently only covers 13 species particularly vulnerable to overfishing or fraud, to include all species within two years. If a SIMP audit found wrongdoing, the permit would be pulled.
CBP seized a shipment of 4.68 million nitrile disposable gloves in Kansas City, Missouri, under the forced labor finding issued by the agency earlier this year (see 2103260028), it said in a news release. The estimated value of the shipment, produced in Malaysia, was $690,000. “Considering this seizure took place in the heartland of America, it goes to show that imports produced by forced labor affect everyone nationwide,” said Steven Ellis, port director-Kansas City. The agency seized a shipment of gloves in Cleveland earlier this year (see 2105040041).
Thea Lee, a former AFL-CIO trade economist and top official for 20 years, will be leading the Department of Labor's Bureau of International Labor Affairs, which is involved in both enforcement of the USMCA labor chapter and in investigating forced labor and the worst forms of child labor. The AFL-CIO reacted to the news of her appointment by saying “there is no better person to help strengthen enforcement of labor standards that increase the power of workers in the U.S. and around the world. She will also help shape policies to end forced labor and egregious worker rights violations throughout global supply chains.” The job is not one that requires Senate confirmation.
International Trade Today is providing readers with the top stories from May 3-7 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.