An article from Arent Fox on 20 August says that US Customs & Border Protection has taken an increasingly enforcement-minded posture to prevent and penalise the importation of goods produced using forced labour into the US. CBP may issue civil penalties against importers for entering, introducing, or attempting to enter or introduce merchandise that is prohibited or restricted. Shipments suspected of being produced with forced labour will be detained by CBP and excluded if CBP determines that forced labour was used in the production of the goods. Merchandise is subject to exclusion through withhold release orders (WRO) enforced by CBP and/or seizure, and may lead to criminal investigation of the importer(s). There have been 12 WRO since September 2019. The article says that enhanced due diligence is essential to mitigate forced labour-related risk, and there are several steps that a company can take to better equip itself to minimise the risk of penalties.  The US authorities have also provided additional guidance on due diligence steps to take in regarding to use of North Korean labour in the supply chain. Guidance suggests that this risk analysis should include both the internal supply chains and third party suppliers.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: