The Coalition for a Prosperous America says that the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill lead to offshoring and a low-wage workforce in the U.S., and that the MTB is "abused by importers who lobby against policies to boost domestic production, and it conflicts with the national imperative to re-shore the industries and jobs we have lost."
The Endless Frontiers legislation continues to attract amendments relevant to trade, such as Sen. Josh Hawley's amendment, published May 24, that would make countries ineligible for participation in the Generalized System of Preferences benefits program if any product from that country is identified by the Bureau of International Labor Affairs as one made with child labor or forced labor. Hawley, R-Mo., also proposes that, starting 90 days after the bill's passage, there will be an additional 100% duty on all goods produced in Xinjiang, or goods with components from Xinjiang, for at least one year. At that time, the tariff would only be lifted if the administration "determines beyond a reasonable doubt that no slave labor, forced labor, indentured labor, or child labor exists in the People’s Republic of China; and submits to Congress and makes available to the public a report on that determination." There have been hundreds of amendments proposed for the China package, and Majority Leader Chuck Schumer will decide which ones deserve floor debate and a vote. He has said he wants a vote to happen this week.
International Trade Today is providing readers with the top stories from May 17-21 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
CBP updated its withhold release order on tobacco from Malawi so that “certain tobacco imports from Premium Tobacco Malawi Limited (PTML) will be admissible at all U.S. ports of entry” as of May 21, the agency said in a May 24 news release. “This modification applies only to tobacco harvested by Club Growers in Malawi.” CBP issued the original WRO in 2019 (see 1911010026). CBP modified the WRO based “on a rigorous evaluation of PTML’s social compliance program and efforts to identify and minimize the risks of forced labor in its supply chain,” it said. “These actions produced evidence that sufficiently supports PTML’s claims that tobacco from club growers (smallholder growers that use little or no farm worker labor) is not grown and harvested using forced labor or forced child labor.” The agency twice previously modified the WRO to allow for tobacco imports from other Malawi producers (see 2008030028 and 2006030037).
Three rubber gloves makers, an electronics manufacturing company and an event management company, all based in Malaysia, are the subjects of recent petitions to CBP alleging the use of forced labor and are being investigated by the agency, said Andy Hall, a British human rights activist who filed the allegations. Hall said he previously filed an allegation against Top Glove, which is now subject to a CBP finding that forced labor is in its supply chain (see 2103260028) and has had at least two big shipments seized as a result (see 2105120039 and 2105040041).
No date has been scheduled yet for a vote on the China package championed by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Todd Young, R-Ind., but lengthy amendments from senators are continuing to flow in, many with trade implications.
The Port of Los Angeles/Long Beach is "supporting" 17 withhold release orders and "we currently have well over 100 shipments on hold pending determination of admissibility" due to suspicion of forced labor, CBP Port Director for the LA/LB Seaport Donald Kusser said while speaking during a Foreign Trade Association World Trade Week event May 20. Such shipments can remain in CBP custody for "months during the investigatory process," he said.
The Customs Rulings Online Search System (CROSS) was updated May 20. The following headquarters rulings were modified recently, according to CBP:
CBP allowed for the release of some styles of men's shirts imported by Uniqlo that were detained over the suspected use of cotton from the Xinjiang Production and Construction Corps in China because the shirts were not made of cotton, the agency said in a May 18 ruling. The ruling, HQ H318835, discloses that CBP detained a second Uniqlo shipment over a possible XPCC connection. The first detention was mentioned in another recent ruling, in which CBP said Uniqlo hadn't sufficiently shown XPCC cotton wasn't used (see 2105130031). The ruling wasn't available on the CBP rulings database as of press time May 20.
A former U.S. trade representative and a former deputy national security adviser agree that companies that do business in China are stuck between a rock and a hard place, as they will anger China if they disavow abuses in Xinjiang or Hong Kong, but could break U.S. law if they make clothes with Xinjiang cotton.