Supply Chain

The leaders of the House Select Committee on China are calling on the Administration to press allies – particularly Europe and the United Kingdom – to prevent Chinese goods made by Uyghur forced labor from entering their markets. “We are particularly concerned that goods made by Uyghur forced labor continue to flood into Europe and the United Kingdom (UK), which some have described as ‘dumping grounds’ for these products that are otherwise banned from importation into the United States,” Committee Chairman Mike Gallagher (R-Wis) and ranking Democrat Raja Krishnamoorthi (Ill) wrote in a letter to Secretary of State Antony Blinken.

The USTR has requested a Rapid Response Labor Mechanism (RRM) panel under the United States-Mexico-Canada Agreement (USMCA) to resolve a labor dispute at call center operator Atento Servicios, S.A. de C.V. .    At the conclusion of its 45-day review period, Mexico found a denial of rights had existed, but determined that Atento Servicios had taken the necessary actions to remediate the denial of rights during Mexico’s review period. The United States disagrees with this determination and is requesting establishment of an RRM panel to review the situation.

U.S. Department of Commerce and TSMC Arizona  a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.6 billion in direct funding under the CHIPS and Science Act.

U.S. Customs and Border Protection (CBP) personnel at all U.S. ports of entry will detain work gloves manufactured by Shanghai Select Safety Products Company, Limited and its two subsidiaries.. CBP issued a Withhold Release Order (WRO) against Shanghai Select Safety Products Company, Limited and its two subsidiaries Nantong and HK, based on information that reasonably indicates the use of convict labor in violation of 19 U.S.C. § 1307 in the production of that merchandise.

The United States announced two resolutions of labor disputes initiated under the USMCA facility-specific Rapid Response Labor Mechanism (RRM) in Mexico last year.   The Turkish owners of the Teklas Automotive hose assembly plant and the Mexican owners of the Draxton automotive casting operations, both in central Mexico,   conducted remediation satisfactory to US officials. USTR has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facilities.

The EU, the US, and other Minerals Security Partnership (MSP) partners, joined by Kazakhstan, Namibia, Ukraine, and Uzbekistan, announced the launch of the Minerals Security Partnership Forum – or “MSP Forum”. The forum will serve as a new platform for cooperation in the area of critical raw materials (CRMs) vital for the global green and digital transitions.

The Department of Homeland Security (DHS) is launching an enhanced strategy to combat illicit trade and support the American textile industry, with collaborative efforts between U.S. Customs and …

The Export-Import Bank of the United States (EXIM) has opened the application period for the following 2024-2025 committees and councils:  Advisory Committee, Sub-Saharan Africa Advisory …

United States’ second National Action Plan (NAP) on Responsible Business Conduct was released Monday. "reflecting a commitment to strengthen and improve respect for human rights and labor rights, expand use of green energy, counter corruption, protect human rights defenders, advance gender equity and equality, and promote rights-respecting use of technology," according to a statement. One element of the plan calls for suspension or debarment of federal contractors repeatedly cited by CBP for violations.

Calls for the US to ratify the 1994 Law of the Sea Convention (LOSC) have been growing as signatories continue to divvy up the undersea world's resources without a place at the table for Washington. Meanwhile, congressional mining boosters have introduced a bill calling for the Administration to prepare studies of the topic of seabed mining …

Biotechnology Innovation Organization (BIO), a major American trade group, endorsed the Prohibiting Foreign Access to American Genetic Information Act of 2024  (BIOSECURE Act) and announced that WuXi AppTec would exit the membership organization. This news comes days after Rep Mike Gallagher (R-WI) wrote to Attorney General Merrick Garland complaining that BIO was advocating against the legislation, on behalf of WuXi AppTec and other China-based members of the trade association.

Ford Motor Company has agreed to pay the United States $365 million to resolve allegations that it violated the Tariff Act of 1930 by misclassifying and understating the value of hundreds of thousands of its Transit Connect vehicles. The settlement resolves allegations that Ford devised a scheme to avoid higher duties by misclassifying Turkey-built cargo vans with "sham seats," evading the "Chicken Tax" on light truck imports.

Chairman Mike Gallagher (R-WI) of the House Select Committee on the Chinese Communist Party wrote to FCC Chairwoman Jessica Rosenworcel following reports that U.S. cell phones and other devices are receiving and processing signals from Chinese and Russian satellites in violation of the FCC’s rules.

OFAC is amending and reissuing the Global Magnitsky Sanctions Regulations (31 CFR part 583) as a more comprehensive set of regulations that includes additional interpretive guidance and definitions, general licenses, and other regulatory provisions that will provide further guidance to the public. Further, OFAC is adding the Uyghur Human Rights Policy Act of 2020, as amended to the authority citation of 31 CFR part 583. Due to the number of regulatory sections being updated or added, OFAC is reissuing the Regulations in their entirety.

Despite a board of directors rich with boldfaced Washington names, Lexmark parent Ninestar corporation appears unlikely to break free of its designation as an employer of modern slavery under the Uyghur Forced Labor Protection Act. Last week Judge Gary Katzmann denied Ninestar’s Motion for Preliminary Injunction staying the Listing Decision.  

A California fashion company executive was sentenced today to 48 months in federal prison for undervaluing imported garments in a scheme to avoid paying millions of dollars in customs duties. The Executive's company, Ghacham Inc., which does business under the “Platini” brand name, imported clothing from China and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments, allowing the company to avoid paying the full amounts of tariffs owed on the imports.

EXIM reviews over the last few years indicate that critical minerals are a crucial component of multiple transformational export areas—and the U.S. lags the PRC in the proven reserves, mining, …

Following the conclusion of the Minerals Security Partnership (MSP) Principals’ meeting in Toronto, member states announced the formation of a graphite working group, the inclusion of Estonia in the membership, and reviewed progress of the partnership to responsibly develop critical minerals projects.

The Office of the United States Trade Representative (USTR) Thursday published a notice in the Federal Register seeking input to inform the development of trade and investment policy initiatives that promote supply chain resilience. The notice seeks information on developing sector-specific policy tools, strengthening domestic manufacturing and services, collaborating with like-minded trading partners and allies, and measuring resilience, among other topics.  

House Republican leaders have sent a letter to Shanghai Zhenhua Heavy Industries (ZPMC), the dominant supplier of port cargo cranes, demanding answers regarding findings of the Committees’ joint investigation into the operation of ZPMC-manufactured cranes at U.S. ports.  The letter details concerns related to cellular modems discovered on ship-to-shore (STS) crane components at a U.S. seaport and a cellular modem discovered in another U.S. seaport’s server room that houses STS cranes’ firewall and networking equipment.

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