Contradictory language in the Uyghur Forced Labor Prevention Act -- which says the government may list entities that source items from Xinjiang, but says that the rebuttable presumption only applies to goods "produced by an entity on a list" -- may result in more litigation over the entity list, trade mavens say.
Sen. Marco Rubio, co-author of the Uyghur Forced Labor Prevention Act, along with the leaders of the House Homeland Security Committee and the House Select Committee on China, have provided detailed supply chain maps for lithium-ion battery makers CATL (Contemporary Amperex Technology Co.) and Gotion High Tech, linking them to companies that transfer Uyghur workers and companies that mine minerals or make aluminum in Xinjiang.
CBP's Acting Commissioner Troy Miller said the agency "has suspended multiple customs brokers from participating in the Entry Type 86 Test after determining that their entries posed an unacceptable compliance risk," and that it will continue to take action against those who "abdicate their customs compliance responsibilities." The statement also said: “Any broker that has been suspended will be considered for reinstatement if it demonstrates to CBP that it has developed and implemented a remedial action plan."
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The Council of the European Union last week officially adopted new EU-wide supply chain due diligence rules that will require certain companies to conduct specific due diligence on their supply chains, including to root out forced labor.
A Kelley Drye attorney, who used to be part of the Forced Labor Enforcement Task Force due to his role at the U.S. Trade Representative's Office of Labor Affairs, said the recent 26 additions to the FLETF's Uyghur Forced Labor Prevention Act entity list are significant because they are not companies directly employing Uyghurs harvesting cotton or in fabric mills or cut and sew operations.
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).
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.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.