CBP Looking at Potential C-TPAT Benefits Related to Forced Labor WROs

CBP officials are in the very early stages of considering potential benefits for Customs-Trade Partnership Against Terrorism program members related to withhold release orders on goods suspected of forced labor production, said Thomas Kendrik, chief, strategic enforcement branch, at CBP. One possible C-TPAT benefit could involve exporting goods that are stopped due to a WRO, he said. "We have discussed with our partners over there at C-TPAT that expedited export could be a benefit," he said. Kendrik and other officials spoke at the West Coast Trade Symposium on May 26 in Phoenix.

Along with forced labor specifically, CBP is looking at adding a broad "social compliance" aspect to the C-TPAT program, said Liz Schmelzinger, director of C-TPAT at CBP, while speaking on a separate panel. It's really the beginning of the discussion and the agency "is working on providing you guidance on how to address this topic in your supply chain," she said. The hope is to help prevent "intentionally or unintentionally engaging in illegal sourcing of your goods" and shouldn't be seen as "mission creep," she said. It's a question that could be added to a risk assessment or business partner screening, said Bernice Conley, director of C-TPAT at the CBP Los Angeles field office. Many Tier 2 and 3 members already have social compliance programs, Conley said. The plans are still nascent and CBP will develop "some more resources that can be used by all business sizes," she said.

There's multiple steps CBP uses when dealing with goods thought to be made through forced labor, said Kendrik. The first, a WRO, is slightly different from a detention order within CBP, but "in the trade, that's what it's going to feel like," he said. The difference between a WRO and a country of origin detention, for instance, is that under an WRO, the importer "can elect to export" the goods at any time, he said. That importer will also have up to three months to demonstrate that the goods were admissible, after which, CBP may allow the goods into commerce or exclude the goods, said Kendrik "That exclusion is a protestable action," he said.

The agency uses a "reasonable suspicion" standard to issue a WRO and an importer would need to provide evidence that removes that suspicions in order for CBP to allow the goods through, he said. CBP will not release the information about what lead to the required "reasonable suspicion" to the parties involved, as its considered an "ongoing investigation," he said. CBP regulations provide for specific evidence that would help to resolve a suspicion, including "certifications from a foreign entity" or information on the types of due diligence used to make sure forced labor wasn't used, he said.