- U.S. Customs halts the import of silica-based products from made by Hoshine Silicon Industry Co. because the products are suspected of being produced using forced labor.
- For future imports of solar energy equipment sourced from Xinjiang, China, the United States may use Withhold Release Orders (WROs) to block entry into the United States if there is reasonable suspicion of forced labor in the supply chain.
- The renewables industry is working together and with regulators to find ways to certify its supply chains are free of forced labor.
Scott Maberry is an International Trade partner in the Government Contracts, Investigations & International Trade Practice Group in the firm's Washington, D.C. office. Scott is a founding member of the Sheppard Mullin Organizational Integrity Group.
- New law could penalize companies for complying with U.S. sanctions.
- Penalties include designation to China’s new “Unreliable Entity” list.
- Statements against the new laws could also be penalized, restricting the capacity of counsel to advise freely on compliance with U.S. sanctions and Chinese countermeasures.
On June 10, 2021, China enacted the Anti-Foreign Sanctions Law (“AFSL”), aimed at punishing countries that impose anti-China sanctions and the companies that comply with those sanctions. The law is effective immediately, and applies to any sanctions imposed against China, Chinese entities, or Chinese individuals by any third country (excluding sanctions adopted by the United Nations).
The AFSL comes in addition to the Measures on Blocking Unjustified Extraterritorial Application of Foreign Legislation (the Blocking measures) issued earlier this year. Those measures were mainly address the extraterritorial effect of U.S. sanctions against China, by punishing companies that comply with U.S. sanctions.…
Continue Reading Counterpunch: China Adopts Landmark Anti-Sanctions Statute to Stop U.S. Sanctions Effects Overseas
Corporate compliance programs are expected to be tailored to an organization’s unique risks. Most regulators (and most modern organizational compliance programs) prescribe risk-based compliance. But one thing is to prescribe; another is to execute properly.…
Continue Reading Five Keys to a Successful Compliance Risk Assessment
The United States is taking increasingly aggressive actions to prohibit imports from China that may have been produced by forced labor. According to the U.S.…
Continue Reading Forced Labor and Supply Chains: A Complete Ban on Goods from Xinjiang or Additional WROs on the Horizon?
On January 19, 2021, the U.S. Department of Commerce (“DOC”) issued an interim final rule governing transactions in Information and Communication Technology or Services (“ICTS”) involving “foreign adversaries.” Although the rule takes effect on March 22, 2021, it allows DOC to review covered transactions initiated, pending, or completed on or after January 19, 2021.…
Continue Reading Friend or Foe? The DOC Issues New Interim Rule on Transactions Involving Information and Communication Technology or Services (“ICTS”) and Foreign Adversaries
On January 13, 2021, U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on cotton and tomato products produced by entities operating in Xinjiang, China. The order is based on information that indicates the use of forced labor in the production of the goods. If you are sourcing these products from the Xinjiang region, you may want to consider proactive compliance steps to mitigate your risk and prevent disruption in your supply chain. …
Continue Reading CBP Stops More Imports Under Forced Labor Rules (Cotton a Jam, Part II)
Most of you already know Section 301 of the Trade Act of 1974 because of the Trump Administration’s massive China tariffs under Section 301. Now it’s time to get acquainted with a separate process that may result in tariffs on Vietnamese products too. Section 301 authorizes the Office of the United States Trade Representative (“USTR”) to investigate certain foreign trade practices. USTR has initiated a probe into Vietnam’s currency practices, which could lead to tariffs on Vietnamese products, similar to the China tariffs. The Biden transition team has not indicated whether it will follow through with the investigation.…
Continue Reading Knock knock: Section 301 Tariffs on Vietnamese Products Could Soon be at Your Front Door
**This is an update to our December 23, 2020 post**
On December 29, 2020, the U.S. Trade Representative (USTR) posted a notice granting new…
Continue Reading USTR Grants New Section 301 Exclusions and Extends Existing Exclusions for Certain Chinese Medical Products
While many of us anxiously await putting 2020 behind us, the start of the new year may have significant import duty implications for many U.S. companies.
On December 31, two significant U.S. import duty relief programs are set to expire: the Section 301 exclusions and the Generalized Systems of Preference (“GSP”). That will cause U.S. customs duties to rise on certain products. Importers should be prepared for these changes.…
Continue Reading Don’t Pop the Bubbly Just Yet: Potential Duty Increases for Importers Starting January 1
Over the past few weeks, we have been speculating on the international trends and tides we expect to see in the next four years under a new U.S. presidential administration. So that you can enjoy our prognostications (before our program gets greenlighted as a Netflix special) we provide here:
- A recording of our webinar, entitled “The Four Years in International Business Webinar”
(for those playing along at home, see if you can spot the part where Scott’s power goes out while we’re discussing tariff reductions!)
- A bulleted summary of the key takeaways of our webinar.
On December 2, 2020, U.S. Customs and Border Protection issued an order preventing certain imported cotton products from China from being released to the importer. The products were made by Xinjian Production and Construction Corp. (XPCC). The order is based on information that indicates the use of forced labor in the production of the goods. …
Continue Reading Cotton a Jam: CBP Withholds Cotton Product Shipments Under Forced Labor Rules