Endless Frontier Act Requires More Reporting to Congress on Forced Labor, Counterfeits, Phase 1 Deal
The Endless Frontier Act, a massive bill working its way through the Senate that aims to improve the United States' ability to compete economically with China, also addresses a number of issues relevant to importers, including enforcement of the forced labor statute, seizure of counterfeits, and progress on the issues that led to the Section 301 tariffs on Chinese goods.
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On counterfeiting, the bill would require an annual report by CBP on seizures of counterfeits, what country they were from, how they arrived, and in what categories. CBP then will be required to increase inspections of imports from the top source countries for counterfeit goods, as identified by the report. The bill also authorizes CBP to share information on suspected violations of intellectual property rights with "any other party with an interest in the merchandise." Restrictions on sharing information about counterfeits with trademark holders has been a hurdle to stopping counterfeits, CBP has said (see 2104160033).
Within one year of the bill becoming law, CBP is required to issue regulations to verify seafood imports to ensure that no seafood harvested or produced with forced labor is imported. The bill directs CBP, Commerce and the Coast Guard to develop a strategy using data from the Seafood Import Monitoring Program to identify seafood imports that are at risk of using forced labor. The bill directs the Office of the U.S. Trade Representative to work with other countries to develop effective seafood tracking plans to end the trade in fish harvested or produced with illegal fishing or forced labor.
The bill requires CBP's Forced Labor Division to brief the Senate Finance Committee and the House Ways and Means Committee at least every 90 days on investigations of forced labor, progress made toward issuing withhold release orders, and progress made toward closing those investigations.
It also requires CBP to submit a report within 180 days that assesses how limited supply chain visibility hinders CBP's ability to enforce customs laws, including the prohibition on forced labor; identifies what information CBP needs to improve supply chain visibility, and who would need to supply that information; and "provides estimates of the costs to collect, store, and utilize that information."
The bill requires that USTR submit a confidential report no later than Sept. 1, 2021, and every 180 days after that for the next two years that covers the implementation of the phase one trade agreement with China, and progress toward addressing the issues identified in the Section 301 investigation. It also requires that USTR share "the text of any initial proposal for an executive agreement or memorandum of understanding with the People’s Republic of China" that resolves duties under Section 301.
The bill also requires the Commerce Department to report to Congress annually on the suspension of antidumipng duty investigations, and any antidumping or countervailing duty orders that are remanded by the U.S. Court of International Trade, a Chapter 10 panel under the USMCA, or are found in violation of World Trade Organization obligations.