CBP Collects First Penalty From Importer for Forced Labor

CBP has collected its first penalty for imports produced with forced labor, the agency said in a news release. Pure Circle U.S.A. paid $575,000 for importing stevia processed in China using prison labor. The action stems from an investigation into Chinese stevia produced by Inner Mongolia Hengzheng Group Baoanzhao Agricultural and Trade LLC that resulted in a withhold release order in May 2016 (see 1605310019).

Pure Circle had originally been subject to that release order, but said in 2017 that it had been removed from it after submitting documentation that it did not import stevia produced using forced labor, including a third-party audit (see 1701300029). The importer had said its inclusion was based on inaccurate allegations, and that the WRO had led to a substantial decrease in sales. Pure Circle did not comment.

An investigation into Pure Circle’s imports from Baoanzhao conducted by CBP after it initially issued the WRO uncovered “at least twenty shipments of stevia powder and derivatives produced from stevia leaves that were processed in China with prison labor in violation of U.S. law, and issued a penalty against the importer,” CBP said in its press release. CBP has the authority to issue penalties against importers for imports of any merchandise contrary to law.

The penalty is the first CBP has issued for forced labor imports since passage of the Trade Facilitation and Trade Enforcement Act of 2015 expanded the prohibition. Brenda Smith, CBP’s executive assistant commissioner in the Office of Trade, said in January that the agency had issued the penalty, thought it hadn't been announced at that time, and that CBP was planning to start issuing more penalties related to forced labor (see 2001290037).

“As part of its trade enforcement responsibilities, CBP will hold companies accountable for importing goods produced with forced labor,” Smith said in a statement in the press release. “Companies have a responsibility to proactively monitor their supply chains to mitigate the risk of importing goods into the United States that were produced with forced labor.”