COAC Says CBP Should Let Importers Try to Fix Forced Labor Issues Before WRO
CBP should “exercise discretion” when using its withhold release order (WRO) authority to address forced labor violations, leaving space for importers to use their leverage to get suppliers to change their illegal practices, the Commercial Customs Operations Advisory Committee (COAC) Intelligent Enforcement subcommittee said in draft recommendations released ahead of the July 15 COAC meeting.
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Prior to issuing a WRO, “CBP should take into account when the importing community is making genuine efforts to conduct due diligence and active remediation as the agency makes decisions about how and when to issue a WRO, including considering utilizing grace periods during which CBP provides alerts and/or guidance to allow the problem to be sustainably resolved before issuing a WRO,” the subcommittee said in its recommendation to CBP. “Remediation is only viable when the importing community maintains the necessary business leverage and the supplier is financially stable,” it said.
While CBP “has an obligation to enforce [forced labor provisions under] 19 USC 1307 as written,” strict enforcement makes it difficult for importers to “use their leverage, such that it may exist, to support remediation of an issue rather than ‘cutting and running,’” the subcommittee said in an associated white paper. “If an importer discovers a indicator of potential forced labor, it will need to maintain business relationships to influence remediation, which may include allowing for the shipment and the importer to demonstrate compliance to import the goods -- or else it will lose its leverage with the supplier to remedy the issue,” the white paper said.
“We believe that 19 USC 1307 can be an effective tool, but modifications to the implementation and/or discretion in the enforcement will help it be more conducive for meaningful remediation, encourage transparency and target the worst actors,” the subcommittee said in the white paper.
CBP posted the following documents for the July 15 COAC meeting, to be held remotely due to the COVID-19 pandemic:
Administrative
- Agenda (here)
Intelligent Enforcement
- Intelligent Enforcement Executive Summary (here)
- Forced Labor WG Recommendations (here)
- Forced Labor WG White Paper (here)
- Bond WG Government Issue Paper (here)
- Bond WG Recommendations (here)
- AD/CVD WG Government Issue (here)
- AD/CVD WG Recommendations (here)
- Intellectual Property Rights WG Recommendations (here)
- Intellectual Property Rights WG White Paper (here)
Next Generation Facilitation
- Next Generation Facilitation Executive Summary (here)
- 21st Century Customs Framework Government Issue Paper (here)
- Emerging Technology WG Government Issue Paper (here)
- 1USG WG Government Issue Paper (here)
Secure Trade Lanes
- Secure Trade Lanes Executive Summary (here)
- Trusted Trader WG Government Issue Paper (here)
- Trusted Trader WG Recommendations (here)
- Trusted Trader WG Recommendations White Paper (here)
- Export Modernization WG Government Issue Paper (here)
- Export Modernization WG Recommendations (here)
- In-Bond WG Government Issue Paper (here)
- In-Bond WG Recommendations (here)
- In-Bond WG White Paper (here)
- Remote and Autonomous Cargo Processing WG Government Issue Paper (here)
- Remote and Autonomous Cargo Processing WG Recommendations (here)
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