CBP Issues First Forced Labor Finding Since 1996, With Finding on Chinese Stevia

CBP issued a forced labor finding on imports of stevia from China, it said in a notice released Oct. 19. It's the first time a finding has been issued since 1996, according to a list of CBP actions. The forced labor finding applies to “stevia extracts and derivatives, mined, produced, or manufactured” in China by the Inner Mongolia Hengzheng Group Baoanzhao Agriculture, Industry and Trade Co., Ltd., CBP said. The finding follows a withhold release order issued in 2016 on Baoanzhao (see 1605310019) that resulted in the first CBP penalty for forced labor (see 2008140016). CBP has ratcheted up its use of authorities this year under provisions to stop goods made with forced labor (see 2009140040).

A finding by CBP differs from a WRO in that a finding requires conclusive evidence of forced labor, while a WRO requires only reasonable suspicion, a CBP fact sheet said. “Through its investigation, CBP has determined that there is sufficient evidence to support the finding that Baoanzhao is a prison/forced labor facility and that stevia extracts and derivatives mined, produced, or manufactured by Baoanzhao are likely being imported into the United States,” the agency said.

Under a WRO, the importer can opt to export the detained goods or continue to argue that the merchandise wasn't made with forced labor. Under a finding, the importer can only seek release by “submitting, within 3 months following the importation, a certificate of origin and a detailed statement demonstrating that the subject merchandise was not produced with forced labor, e.g., a supply chain audit report,” CBP said. Without proof of admissibility, CBP will seize the goods.

The finding is effective Oct. 20 and applies to goods imported on or after that date along with “merchandise which has already been imported and has not been released from CBP custody” before then, the agency said. “This Finding covers stevia leaf (Stevia rebaudiana) extracts, or glycosides classified under subheading 2938.90.0000,” the agency said. Other associated names for the company include “the Inner Mongolia Autonomous Region Prison Administration Bureau Baoanzhao Agriculture and Trade Co., Ltd.; and the Baoanzhao Prison Farm,” it said.