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CBP Regulations Amended to Reflect Stricter Prohibition on Imports Made with Forced Labor

Thursday, June 08, 2017
Sandler, Travis & Rosenberg Trade Report

CBP has amended its regulations, effective June 8, to reflect section 910 of the Trade Facilitation and Trade Enforcement Act of 2015 by removing the “consumptive demand” clause from the regulations concerning the prohibition on the importation of merchandise produced by convict, forced, or indentured labor. The regulations have also been modified to reflect the correct name of the agency as well as a minor procedural change with regard to the filing of proof of admissibility.

Section 307 of the Tariff Act of 1930 prohibits the importation of merchandise that has been mined, produced, or manufactured, wholly or in part, in any foreign country by forced labor, including prison labor and forced child labor. Despite this general prohibition, the Tariff Act of 1930 included a “consumptive demand” clause that allowed for the importation of forced-labor-derived goods if the goods were not produced in such quantities in the U.S. as to meet the “consumptive demands” of the U.S.

However, section 910 of TFTEA repealed the consumptive demand exception to the prohibition on the importation of goods made with convict labor, forced labor, or indentured servitude. While CBP has been enforcing this ban without taking consumptive demand into consideration since section 910 went into effect on March 10, 2016, the conforming amendment is necessary to ensure that 19 CFR reflects the statutory amendment.

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