BMW, Mercedes-Benz and Volkswagen each told us in emailed statements early on June 22 that they can’t directly comment on allegations in a forced labor complaint purportedly filed against them in Germany, because they have not seen the contents of the complaint. But they each said they do set standards for labor in their supply chains, and verify compliance with those standards.
Sen. Marco Rubio, a Republican who said he was tough on China before more senators got on the bandwagon, said corporate interests and U.S. interests have diverged when it comes to globalization. Rubio, who represents Florida, was speaking at a American Compass event June 21 on Capitol Hill.
CBP stopped 4,269 imports worth more than $1.39 billion for Uyghur Forced Labor Prevention Act-related reviews and enforcement actions from June 21, 2022, through May 29, the agency said in a document released June 21. About 16% of those shipments, worth more than $40 million, were denied entry, CBP said. About 38%, worth more than $643 million, were released into U.S. commerce during that time frame. CBP said 46% of those shipments, worth more than $711 million, are still pending action from the importer or CBP.
Chinese online shopping platform Temu has no procedures to comply with the Uyghur Forced Labor Prevention Act, which “all but guarantees” imports from the company violate the UFLPA, the House Select Committee on China said this week. In a new report, the committee said both Temu and Chinese online retailer Shein “rely heavily” on the de minimis exception when shipping packages to the U.S., allowing them to avoid CBP scrutiny of potential forced labor violations.
CBP will “stand ready” to implement any changes Congress may make to forced labor enforcement under the Uyghur Forced Labor Prevention Act, Eric Choy, executive director of CBP’s Trade Remedy and Law Enforcement Division, said in remarks June 21.
A European human rights advocacy group recently filed a complaint with the German government against BMW, Mercedes-Benz and Volkswagen alleging the three automakers aren’t meeting German Supply Chain Act due diligence requirements that their supply chains are free from forced labor.
CBP in April identified 460 shipments valued at more than $197 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 update. That's up from April's total of 377 shipments valued at more than $159 million (see 2305180061). CBP also seized 1,980 shipments that contained counterfeit goods valued at more than $216 million, and completed 26 audits that identified $1 million in duties and fees owed to the U.S. government for goods that had been improperly declared, the agency said.
It is incumbent upon "all companies to conduct more rigorous due diligence," to make sure they are in compliance with laws prohibiting forced labor, a new brief from Sheffield Hallam University said on June 19. "Know Your Supply Chains: Desk-Based Research Strategies to Identify Uyghur Region Exposure," part of a series of briefs, focuses on strategies companies can employ to discover whether or not they are using suppliers from the Uyghur region of China.
CBP hopes that the customs modernization law is passed in time to use its authorities in the reprogramming of ACE, with a goal of providing CBP and partner government agencies "with better quality data, much earlier in the supply chain, often in real time," John Leonard, deputy executive assistant commissioner in CBP's Office of Trade, said June 20.
The U.S. is trying to negotiate with Canada and Mexico on auto rules of origin details, rather than complying with a dispute settlement panel decision that originating supercore parts are considered 100% North American as you calculate the vehicle regional value content, according to the leader of the trade group that represents Detroit's Big Three automakers.