CBP Issues Forced Labor finding on products from the Dominican Republic produced by Chinese owned entity without a prior Withhold Release Order

As you may know, CBP Regulations implementing 19 U.S.C. § 1307 prohibition on the importation of goods made with the use of forced labor (i.e.,19 C.F.R. § 12.42, et. seq.) provide in part as follows:

19 C.F.R. § 12.42 Findings of Commissioner of CBP
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(f) If it is determined on the basis of the foregoing that the merchandise is subject to the provisions of the said section 307, the Commissioner of CBP, with the approval of the Secretary of the Treasury, will publish a finding to that effect in a weekly issue of the Customs Bulletin and in the Federal Register.

(g) Any merchandise of a class specified in a finding made under paragraph (f) of this section, which is imported directly or indirectly from the locality specified in the findings and has not been released from CBP custody before the date of publication of such finding in the Federal Register shall be considered and treated as an importation prohibited by section 307, Tariff Act of 1930, unless the importer establishes by satisfactory evidence that the merchandise was not mined, produced, or manufactured in any part with the use of a class of labor specified in the finding.

CBP Regulations implementing the forced labor statute also provide the following with respect to seizures: 

19 C.F.R. § 12.44 Disposition
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(b) Seizure and summary forfeiture. In the case of merchandise covered by a finding under § 12.42(f), if the Commissioner of CBP advises the port director that the proof furnished under § 12.43 does not establish the admissibility of the merchandise, or if no proof has been timely furnished, the port director shall seize the merchandise for violation of 19 U.S.C. 1307 and commence forfeiture proceedings pursuant to part 162, subpart E, of this chapter.

Nevertheless, by press release issued on December 4, 2024, (today), seen at the following link, CBP will seize aluminum products manufactured using forced labor by Chinese-owned, Dominican based company | U.S. Customs and Border Protection, CBP has announced that it has issued a “Finding against Kingtom Aluminio S.R.L., the first Chinese-owned entity in the Dominican Republic, based on information that reasonably indicates the use of forced labor in violation of 19 U.S.C. § 1307 in the production of that merchandise” and that “[e]ffective immediately, CBP personnel at all U.S. ports of entry will seize aluminum extrusion and profile products manufactured by Kingtom Aluminio S.R.L..”

Perhaps the Customs Bulletin and Federal Register notifications are still in process, but importers of aluminum products should be aware that the products described in the December 4^th press release can be seized as of December 4, 2024, (today) without a prior withhold release order in place, according to the press release.

Sandra Bell is an international trade and customs attorney at Rimon. Ms. Bell represents clients on regulatory procedures relating to customs tariff and import issues including securing and responding to decisions on prospective and current import transactions, international trade policy and regulatory programs, and border security and trade enforcement programs. Read more here

The views expressed are solely the opinion of the author and do not represent the official positions of the Rimon P.C.  This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with Rimon, P.C. or its affiliates.