Trade lawyers and importers are wondering how the anti-stockpiling element of a two-year pause on trade remedy circumvention deposits will be enforced.
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Recent additions to the Uyghur Forced Labor Prevention Act Entity List (see 2309250033) mark a change in that they include companies that have not previously been on government denied party lists, and the range of commodities being looked at for forced labor violations is being expanded, Ethan Woolley of compliance risk advisory firm Kharon said during a recent webinar.
Ten members of the House Ways and Means Trade Subcommittee, led by Rep. Carol Miller, R-W.Va., are questioning the proportion of electronics shipments that have been released under the Uyghur Forced Labor Prevention Act (UFLPA), after importers provided CBP with clear and convincing evidence that their supply chains had no Xinjiang links.
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China's Ministry of Commerce said the recent U.S. decision to add three Chinese entities to the Uyghur Forced Labor Prevention Act Entity List (see 2309260035) "has no factual basis and lacks transparency," according to an unofficial translation. Dubbing the move a "typical act of economic bullying," the ministry said the additions suppress Chinese firms and seriously distort the facts surrounding the situation in the Xinjiang region. It said there is no forced labor in Xinjiang, saying the additions were made solely in the name of undermining Xinjiang's prosperity and stability. "China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises," the ministry said.
Sen. Bill Cassidy, R-La., introduced a bill that would hike the tariff on imported shrimp from India from zero percent to 10% in 2024, 20% in 2025, and 40% in 2026, a move he said is justified by the subsidies received by Indian shrimp farmers. About 40% of U.S. imports of shrimp are from India, the Sept. 28 news release said.
Moving manufacturing from China to another Asian country is not the way to "get ahead of the game" in avoiding forced labor detentions, said Amanda Levitt, a Sandler Travis lawyer, while speaking during a virtual Sourcemap conference on supply chain transparency. Levitt said that tracing falls apart for most firms at the Tier 2 level, and that's not enough. Many of the items identified by nongovernmental organizations as being produced with Uyghur forced labor -- cotton, aluminum, PVC -- are raw materials much deeper than tier 2.
In a report that the State Department says highlights "the ongoing, widespread, and pervasive [state-sponsored forced labor] risks" in Xinjiang supply chains, the administration mostly reviewed developments in the last year -- such as CBP guidance on how to write summaries for applicability reviews, or non-governmental organizations' papers identifying sectors with links to Xinjiang.
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.