The National Association of Foreign-Trade Zones said it worked with CBP for more than two years on segregating goods detained under suspicion of forced labor, and it says ending storage at FTZs for these goods "is not justified based on the facts and circumstances involved." CBP announced late last week that goods detained under suspicion of forced labor may be transported to a bonded warehouse, but not to an FTZ (see 2308030062).

A suspected June cyberattack on Livingston International highlighted the need for customs brokers to prepare for a potential breach, which could disrupt their operations and cut off communication with CBP and clients, industry experts said in interviews. They said brokers should formulate a detailed plan for how to respond, which may include hiring subcontractors, notifying customers and quickly reporting to federal agencies.

China's exports of cars have jumped sharply as its domestic car demand has flattened, experts said, but the impacts for U.S. auto production may not repeat what happened to other manufacturing sectors undercut by cheap Chinese imports.

Importers whose cargo is detained by CBP for forced labor concerns may request to move the cargo to a customs bonded warehouse, but the cargo may not move into a Foreign-Trade Zone for storage, CBP said in an Aug. 3 CSMS message.

Although solar module suppliers and manufacturers say they have split their supply chains to create product lines that comply with U.S. forced labor requirements, some continue to have ties to forced labor in China's Xinjiang region, Sheffield Hallam University said in a new report this week. The university also said it’s “sometimes impossible” to verify whether some of those companies' product lines are truly “XUAR-input-free,” adding that several major companies haven't disclosed “sufficient supply chain information” to prove their claims.

Mexico has rejected a rapid response mechanism complaint from the U.S. concerning employer actions at a lead, zinc and copper mine called San Martin, in Zacatecas state. This is the first time Mexico has disagreed with a request, but the government signaled this position during the trinational summit last month (see 2307070043).

DHS and its partner agencies need more funding and resources to handle the increasing enforcement scope of the Uyghur Forced Labor Prevention Act, the Forced Labor Enforcement Task Force (FLETF) said in the first update to its UFLPA strategy. The update, released Aug. 1 and required annually, also outlines new steps CBP is taking to upgrade its enforcement capabilities and describes plans to soon provide more UFLPA compliance guidance to importers.

DHS will add a Chinese battery manufacturer along with a Chinese spice manufacturer and its subsidiary to the Uyghur Forced Labor Prevention Act Entity List, the agency said in a notice released Aug. 1. Camel Group Co., a major manufacturer of car batteries, will be added for working with the Xinjiang government to “recruit, transport, transfer, harbor or receive forced labor or Uyghurs” and other persecuted groups. DHS also will add spice and extract maker ChenGuang Biotech Group Co., Ltd., along with subsidiary Chenguang Biotechnology Group Yanqi Co. Ltd., for sourcing material from Xinjiang or from entities in the region that are involved in a “government labor scheme that uses forced labor.”

International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

Compliance with the Uyghur Forced Labor Prevention Act has "significantly impacted" U.S. fashion companies' "sourcing practices," and many importers are diversifying away from China and other countries in Asia to mitigate supply chain risks, the U.S. Fashion Industry Association said in its annual survey of industry executives released July 31. Nearly 80% percent of survey respondents said they plan to reduce apparel sourcing from China over the next two years, with a record high 15% planning to “strongly decrease” sourcing from the country.