China’s Foreign Ministry this week criticized the U.S. Uyghur Forced Labor Prevention Act, calling it “bullying” and a “double standard” one day after the Senate Finance Committee accused several major automakers of poor UFLPA compliance (see 2405200009).
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.
Senators and witnesses focused on de minimis and CBP's data collecting authorities -- both sides agreeing that data collection, particularly from partner government agencies, needs to be refined, and that de minimis is a useful trade facilitation tool.
Failures in import compliance were revealed in the Senate Finance Committee's report on two auto companies' imports of parts or cars containing parts made by a company on the Uyghur Forced Labor Prevention Act entity list (see 2405200009). But the report also exposed a weakness in CBP's ability to detect goods that should be detained under UFLPA, finding that Jaguar Land Rover imported spare parts that included LAN transformers made by a Chinese company on the entity list and only one manufacturer removed from the finished product.
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The automotive industry's inadequate due diligence controls for Uyghur forced labor make it complicit in the abuse, the Senate Finance Committee charged in a report that criticizes three customers of a firm on the Uyghur Forced Labor Prevention Act entity list -- Volkswagen, BMW and Jaguar Land Rover.
A Senate Finance Committee investigation into forced labor in imported autos' supply chains said that BMW and Jaguar Land Rover, after being notified by Lear Corporation that LAN transformers were made by a company on the Uyghur Forced Labor Prevention Act Entity List, continued to export cars with those parts, or the parts themselves, into the U.S.
DHS is adding 26 Chinese companies to the Uyghur Forced Labor Prevention Act Entity List because they allegedly source cotton from China’s Xinjiang region, it said in a notice released May 16. The companies, which are cotton traders and warehouse facilities, will be added to the list effective upon the notice's scheduled May 17 publication in the Federal Register. Under UFLPA, CBP applies a rebuttable presumption that goods mined, produced or manufactured by entities on the UFLPA Entity List are made with forced labor and prohibited from importation.
With the addition of 26 firms that source cotton from Xinijang, the Uyghur Forced Labor Prevention Act's Entity List now has 36 textile firms -- more than half of the list.
CBP in April identified 392 shipments valued at more than $184 million for further examination based on the suspected use of forced labor, including goods subject to the Uyghur Forced Labor Prevention Act and withhold release orders, the agency said in its most recent operational statistics update. The number of shipments detained is down from March's total of 749, but the value of those shipments is sharply up from the $32 million worth of shipments detained in March (see 2404150075). Also in April, CBP seized 1,736 shipments that contained counterfeit goods valued at more than $235 million if the items had been genuine, the agency said.
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