Importers of goods from China containing critical minerals are likely at heightened risk of detentions under the Uyghur Forced Labor Prevention Act as concerns surface that forced labor is being used in Chinese critical mineral supply chains (see 2210040066), lawyers from White & Case said in a client alert last week.
CBP will soon launch new “interactive” tools on its website, along with additional guidance and frequently asked questions, to help industry comply with the Uyghur Forced Labor Prevention Act, Acting Commissioner Troy Miller said. Miller said the agency has been exploring ways to better aid U.S. importers as they navigate increasingly “complex global supply chains” and vet suppliers who may be using forced labor.
Clarification: A Roth Capital analyst said that JinkoSolar modules detained on suspicion of forced labor "may have just been released" by CBP, and the analyst believes "this could result in a ramp up of volume and imports.” JinkoSolar “likely has a substantial amount of Hoshine WRO & UFLPA backlog to get through,” the analyst said (see 2212050039).
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Researchers at Sheffield University, who previously documented ties to Uyghur forced labor in the cotton, solar panel supply chain and luxury vinyl tile sectors, now say that international car companies could be purchasing steel and aluminum that they use in car frames, axles, bodies, engine casings, wheels and brakes from Xinjiang, and that tires, windshields, batteries, car seats, circuit boards, central control systems, safety control systems, touchscreens, transformers, inductors, connectors and wiring solutions are all touched by forced labor.
A Roth Capital analyst said that JinkoSolar modules detained on suspicion of forced labor "may have just been released" by CBP, and the analyst believes "this could result in a ramp up of volume and imports.” JinkoSolar “likely has a substantial amount of Hoshine WRO & UFLPA backlog to get through,” the analyst said.
CBP’s recently announced global business identifier pilot program (see 2212010046) is a “big first step” toward “greater clarity and greater accountability for the accuracy of data,” and its results could prove a boon to enforcement of the Uyghur Forced Labor Prevention Act for both CBP and importers, trade lawyer John Foote said Dec. 2 on his blog Forced Labor & Trade. UFLPA enforcement is dependent on sub-tier manufacturers and raw material producers, and the GBI pilot promises delve deeper in the supply chain than the problematic manufacturer ID currently used on entry documentation by obtaining the unique identities of the manufacturer, shipper and seller, as well as optionally the exporter, distributor and packager, Foote said. “[T]he GBI pilot is certainly a big first step in the direction of greater clarity and greater accountability for the accuracy of data. It will be interesting to see whether it is a success,” he said.
CBP will in 2023 begin testing two projects under the DHS Silicon Valley Innovation Program (SVIP) “that will connect CBP with trade users,” the agency said in a document released ahead of an upcoming meeting of the Commercial Customs Operations Advisory Committee. The projects are being used to “verify some ACE 2.0 concepts” to inform CBP’s development of ACE 2.0, “which could begin as early as 2025,” CBP said.
The Commercial Customs Operations Advisory Committee (COAC) will not move forward with a proposal under the 21st Century Customs Framework (21CCF) to make ocean vessel manifest data automatically confidential, according to a report from the 21CCF task force released by the COAC Nov. 28. The provision is one of several listed by the task force in the report that the COAC will no longer advance after recent discussions with CBP.
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.