Thursday, June 8, 2017

Merchandise Produced by Convict, Forced, or Indentured Labor

Section 307 of the Tariff Act of 1930, as amended (19 U.S.C. 1307) 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, which allowed for the importation of forced-labor-derived goods if the goods were not produced in such quantities in the United States as to meet the "consumptive demands" of the United States.

On February 24, 2016, the President signed into law the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) (Pub. L. 114-125). Section 910 of TFTEA repeals the "consumptive demand" clause in section 307 of the Tariff Act of 1930, thereby eliminating the consumptive demand exception to the prohibition on importation of goods made with convict labor, forced labor, or indentured servitude. This amendment went into effect on March 10, 2016.

Today U.S. Customs and Border Protection amended Customs regulations 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. It also updates the regulations to reflect the correct name of the agency and includes a minor procedural change with regard to the filing of proof of admissibility.

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