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United States: A Loophole In CBP's Forced Labor Statute Just Closed, And Every U.S. Importer Should Take Note


On March 29, 2016, following on the heels of the elimination of the consumptive demand exception, CBP issued two detention orders based on information obtained by CBP indicating that a Chinese company and its subsidiaries utilize convict labor in the production of certain commodities. The commodities barred from import by these orders are soda ash, calcium chloride, caustic soda, viscose/rayon fiber, potassium, potassium hydroxide and potassium nitrate. The expectation is that CBP will follow these orders with published findings.

DOL Official Defends Peru FTA Labor Report; Pledges To Maintain Pressure

Inside U.S. Trade

Eric Gottwald, legal and policy director at ILRF, said the DOL report substantiates all of the claims made in the original petition even though the DOL stopped short of finding FTA violations.

"The reason I am pleased with the report is that [DOL has] serious concerns, and that is a good signal," Gottwald said. "They did their investigation. From what they gleaned from their investigation … they think there are real problems with the short-term contract law."