The automotive industry's inadequate due diligence controls for Uyghur forced labor make it complicit in the abuse, the Senate Finance Committee charged in a report that criticizes three customers of a firm on the Uyghur Forced Labor Prevention Act entity list -- Volkswagen, BMW and Jaguar Land Rover.
A Senate Finance Committee investigation into forced labor in imported autos' supply chains said that BMW and Jaguar Land Rover, after being notified by Lear Corporation that LAN transformers were made by a company on the Uyghur Forced Labor Prevention Act Entity List, continued to export cars with those parts, or the parts themselves, into the U.S.
DHS is adding 26 Chinese companies to the Uyghur Forced Labor Prevention Act Entity List because they allegedly source cotton from China’s Xinjiang region, it said in a notice released May 16. The companies, which are cotton traders and warehouse facilities, will be added to the list effective upon the notice's scheduled May 17 publication in the Federal Register. Under UFLPA, CBP applies a rebuttable presumption that goods mined, produced or manufactured by entities on the UFLPA Entity List are made with forced labor and prohibited from importation.
With the addition of 26 firms that source cotton from Xinijang, the Uyghur Forced Labor Prevention Act's Entity List now has 36 textile firms -- more than half of the list.
CBP in April identified 392 shipments valued at more than $184 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 statistics update. The number of shipments detained is down from March's total of 749, but the value of those shipments is sharply up from the $32 million worth of shipments detained in March (see 2404150075). Also in April, CBP seized 1,736 shipments that contained counterfeit goods valued at more than $235 million if the items had been genuine, the agency said.
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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.
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.