CBP Releases More Details About WRO on Silica-Based Products
CBP recently posted answers to a set of frequently asked questions about the withhold release order aimed at silica-based products from China. The June 24 WRO applies to silicon produced by Hoshine Silicon Industry, a company located in China's Xinjiang province, and its subsidiaries (see 2106240062). The FAQs add some more details for how CBP will be administering the WRO.
Similar to a set of FAQs on the WRO on cotton and tomato products produced in China’s Xinjiang province (see 2102120045), the document details the types of information CBP may seek to determine whether forced labor was involved in an imported good. Importers that argue forced labor isn't involved “must submit the Certificate of Origin signed by the foreign seller” and a “detailed statement from the importer,” CBP said. “A standard Certificate of Origin is not acceptable. The required format for the certificate of origin is detailed in 19 C.F.R. § 12.43(a). This paragraph includes the exact wording of the certificate that should be signed by the seller/manufacturer.”
CBP has some discretion in enforcing the WRO when minuscule amounts of the covered goods are within a product, it said. "The statute prohibits the importation of goods made in whole or in part with the use of convict, forced or indentured labor," CBP said. "However, if the contribution of prohibited labor to the whole product is insignificant (both from a quantitative and a qualitative perspective), CBP may consider the product outside the scope of the statute. For example, if prohibited labor is used to manufacture a single part in the engine of a car, the contribution of prohibited labor to the final product (the car) may be considered 'de minimis' for purposes of Section 1307. But, if the part is an essential part of the engine or the manufacture of the part comprises a substantial portion of the total labor, CBP may deem the car to be within the scope of Section 1307."
Among the documentation that will be requested for cotton products within a detention notice are: affidavits from the silica provider, as well as production and transportation records. Also requested will be purchase order information and a list of production steps and records, it said. Other documents may also be requested. The agency also listed examples of materials and final goods that could be subject to the WRO.