CBP recently posted answers to a set of frequently asked questions about the withhold release order aimed at silica-based products from China. The June 24 WRO applies to silicon produced by Hoshine Silicon Industry, a company located in China's Xinjiang province, and its subsidiaries (see 2106240062). The FAQs add some more details for how CBP will be administering the WRO.
Government representatives from the State Department, the Office of the U.S. Trade Representative and Homeland Security and an official from the International Labor Organization reminded importers that there are tools to help them source responsibly, such as "Better Work," Responsible Sourcing and "Comply Chain." Josh Kagan, acting assistant U.S. trade representative for labor, told attendees "we want to be in partnership with the business community and recognizing that you are an important player in the global fight against forced labor." The speakers were convened at a U.S. Chamber of Commerce virtual event July 30 called "Tackling Forced Labor."
The House’s Republican Study Committee released a counterproposal to the Senate’s Endless Frontier Act that would ban all imports made in Xinjiang and authorize more employees for CBP to stop imports made with forced labor. The committee’s Countering Communist China Act, released July 29, would ban all “goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part” in Xinjiang or by people working with the Xinjiang government. Certain import exceptions would be available if CBP determines the goods are not produced from forced labor. The bill would also authorize CBP to hire 28 employees specifically devoted to stopping forced-labor related imports.
The House is not clamoring to take up the Senate-passed Uyghur Forced Labor Prevention Act, as Democrats weigh the fact that aligning with the Senate may mean a bill becomes law sooner, with their view that the House approach is stronger.
International Trade Today is providing readers with the top stories from July 19-23 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Although there were some specific complaints about how USMCA has gone in its first year -- especially what witnesses and senators said was an anemic effort to get Mexico to change its stance on genetically modified agricultural crops -- much of the hearing in the Senate Finance Committee on July 27 explored how USMCA should be seen as a model for future trade agreements.
CBP updated a withhold release order on imports of carpets and hand-knotted products from Nepal to remove Annapurna Carpet Industries Pvt. Ltd., the agency said in a July 26 news release. “CBP’s thorough review of Annapurna Carpet’s business practices indicates that the company has remediated concerns about the use of forced labor in its production process and that its products may be imported into the United States,” AnnMarie Highsmith, CBP executive assistant commissioner for trade, said. The WRO was issued in 1998 and still applies to Kumar Carpet Pvt., Singhe Carpet Pvt., Ltd., Norsang Carpet Industries Pvt., Ltd., Everest Carpet, Valley Carpet, and K.K. Carpet Industries.
Most of the witnesses at a hearing on the challenge of enhancing enforcement against forced labor put the problem at the feet of corporations that, they say, knowingly pay so little for cocoa, fish, garments or sugar that exploitation is guaranteed to follow.
As CBP moves toward implementation of a forced labor component in the Customs-Trade Partnership Against Terrorism Trade Compliance program, still hoped for by the end of September (see 2106250045), the agency is working to flesh out what will be required from participants and what benefits will be provided to them. As it stands now, CBP looks set to add a section on social compliance programs related to forced labor to the annual notification letters that are already required of the 300 some current CTPAT Trade Compliance participants, said Carmen Perez, branch chief of the Trade Compliance program at CBP.
CBP is in the process of setting up a second investigations branch in its forced labor division, putting to use additional forced labor funding budgeted by Congress for 2021, said Therese Randazzo, director of the agency’s forced labor division, during CBP’s Virtual Trade Week on July 21.