Customs lawyer John Foote, speaking at the Washington International Trade Association during a panel on import bans, investments and export controls, questioned whether the Biden administration is ready to coordinate forced labor import bans with allies, given how the Uyghur Forced Labor Prevention Act is still in its infancy.
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.
Trade groups, companies and a union that represent the aluminum and steel sectors told the Office of the U.S. Trade Representative that they need more protection from import competition, by expansion of the scope of Section 232 tariffs, and by re-negotiation of the rules of origin in both trade agreements and the Section 232 exclusion for Canada and Mexico.
Shein, an apparel e-commerce platform that has been in the crosshairs of the House Select Committee on China (see 2305030077) U.S.-China Economic and Security Review Commission (see 2304140034), is ramping up its staffing for compliance, according to a memo sent to International Trade Today by a person close to Shein.
The subcommittee that covers intellectual property issues under the House Judiciary Committee questioned how Congress should address the escalating volume of de minimis packages -- and the opportunities those shipments provide for sending counterfeits and goods made with forced labor, but the CBP witness responsible for de minimis and IP declined to back any of the ideas that were bandied about.
Automakers and their trade groups cautioned the Bureau of Industry and Security to tailor its restrictions narrowly -- and allow a phase-in -- if they want manufacturers to stop buying information technology components from China for cars with advanced features, including electric cars.
Representatives from the domestic textiles industry testified at an Office of the U.S. Trade Representative hearing May 2 regarding ways to promote supply chain resilience, especially after many were disrupted by the COVID-19 pandemic (see 2404290057).
Canadian Solar, which is ramping up a 5-gigawatt solar panel manufacturing factory in Texas, told the Office of the U.S. Trade Representative that tariff rate quotas on solar cells under the current safeguard action and Section 301 tariffs on machinery that helps make solar panels and cells are harming solar manufacturers. Canadian Solar also is working on opening a solar cell plant in Indiana, but it won't open until late 2025. It imports cells made in Thailand. The TRQ only allows five gigawatts' worth of tariff-free cells in annually.
Masud Husain, a Canadian foreign service official, will replace Sheri Meyerhoffer as the new head of the government agency that investigates human rights concerns, including forced labor, in Canadian-linked supply chains, the country announced April 30. Husain will take over “later this year” in an interim role as the Canadian ombudsperson for responsible enterprise (CORE), Canada said.
The Forced Labor Enforcement Task Force is responsible for naming companies that are known to use Uyghur forced labor, including through labor transfers to other regions of China. But FLETF member and Deputy Undersecretary of Labor for International Affairs Thea Lee said she hasn't seen an effective way of monitoring those labor transfers, though the U.S. government believes they are growing.
Hugo Boss has implemented a "comprehensive risk management system" to monitor compliance with human rights within its supply chain, the company said in a statement. The statement was in response to the Canada Ombudsperson for Responsible Enterprise's forced labor complaint against the retailer (see 2404260040). CORE said it has closed the complaint review.