A union request that the government impose a fee on Chinese-made vessels docking at U.S. ports via a Section 301 action confronting subsidization in China's shipbuilding sector (see 2404170029) was mentioned favorably by Democrats and Republicans at a House Select Committee on China hearing that covered Chinese efforts in that sector, semiconductors and drones.
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 in May identified 450 shipments valued at more than $100 million for further examination based on the suspected use of forced labor, the agency said in its most recent operational statistics update. The shipments include goods subject to the Uyghur Forced Labor Prevention Act and withhold release orders, CBP said. The number of shipments is up from 392 shipments, but the value is down from $184 million in April (see 2405150065). Also in May, CBP seized 1,640 shipments that contained counterfeit goods valued at more than $331 million if the items had been genuine, the agency said.
Almost 20 trade groups and a handful of companies disagreed on how to ensure supply chain resilience -- many arguing that liberalizing trade with allies is crucial to reduce the likelihood of shortages, or weaponization, but others asserted that friendshoring will undermine domestic production already under stress.
CBP posted the following documents ahead of the June 26 Commercial Customs Operations Advisory Committee (COAC) meeting:
Crowell & Moring international trade lawyer David Stepp advised businesses, on a podcast hosted by his firm, that the Uyghur Forced Labor Prevention Act is requiring importers "to map their supply chains to a level never seen before," and that since CBP is subscribing to services that use AI to uncover connections, "we really think it's important for clients to take this extra step."
There are a number of tools that the U.S. government has yet to fully utilize if it truly wants to tackle China's use of forced labor to manufacture goods, according to panelists speaking June 13 at a Hudson Institute event, “Tackling the Uyghur Forced Labor Challenge.”
The head of the Forced Labor Enforcement Task Force told an audience convened by the Consumer Technology Association that Volkswagen "did the right thing" when it self-reported it had a tiny component made by a company recently added to the Uyghur Forced Labor Prevention Act Entity List. The task force is responsible for adding companies to the list.
Importers and the broader trade industry should expect DHS in the coming months to expand the business sectors under scrutiny for companies’ adherence to forced labor guidelines within the Uyghur Forced Labor Prevention Act, DHS Undersecretary for Policy Robert Silvers said during a June 12 webinar sponsored by Kharon, a risk analytics platform.
Senate Finance Committee Chair Ron Wyden, D-Ore. asked BMW to come clean after what he characterized as "shifting explanations" about its use of components made by a company added to the Uyghur Forced Labor Prevention Act entity list.
DHS will add three more entities to the Uyghur Forced Labor Prevention Act Entity List, it said in a notice released June 11. Dongguan Oasis Shoes Co., Ltd. (also known as Dongguan Oasis Shoe Industry Co. Ltd.; Dongguan Luzhou Shoes Co., Ltd.; and Dongguan Lvzhou Shoes Co., Ltd.); Shandong Meijia Group Co., Ltd. (also known as Rizhao Meijia Group); and Xinjiang Shenhuo Coal and Electricity Co., Ltd. are being added for “working with the government of the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region.” The new listings will take effect June 12.