USTR issues forced-labor trade strategy signaling broader use of trade tools and CBP enforcement to keep forced-labor goods out of U.S. imports.

REGULATORY BRIEFING – USTR TRADE STRATEGY TO COMBAT FORCED LABOR

1. What changed

• USTR has released its first Trade Strategy to Combat Forced Labor, positioning trade policy and enforcement as core tools to eliminate forced labor from U.S. supply chains.
• The strategy operationalizes and expands existing authorities, notably:
• Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) – prohibition on importation of goods mined, produced, or manufactured wholly or in part by forced labor (including forced or indentured child labor).
• USMCA forced-labor commitments (each Party must prohibit importation of goods produced in whole or in part by forced or compulsory labor).
• Trade preference and trade agreement labor provisions, and potential use of Section 301 investigations where labor-rights violations (e.g., Nicaragua) are implicated.
• DHS/CBP is directed to:
• Publish more accessible information on its Withhold Release Order (WRO) and Findings process.
• Publicly post new and modified WROs and Findings and link to other federal due‑diligence resources.
• USTR commits to “seek to utilize the full range of trade tools” to ensure trading partners create accountability for forced labor and that such goods are not imported into the United States.

Net effect: No immediate across‑the‑board tariff rate change, but a clear signal of intensified enforcement against forced‑labor‑linked imports, broader use of WROs/Findings, and potential new trade remedies and agreement-based actions.

2. Affected products and sectors

The strategy does not list specific HTS codes, but it explicitly identifies sectors and goods where forced labor has been documented and that are or are likely to be imported into the United States:

• Apparel and textiles
• Manufactured goods and electronics
• Seafood and broader seafood supply chains (including fishing vessels and shore-based processing)
• Agriculture and food products
• Goods on DOL’s “List of Goods Produced by Child Labor or Forced Labor” (156 goods from 77 countries as of Sept. 2020)

Relevant legal hooks for imports:

• 19 U.S.C. 1307 (Section 307): absolute import ban on goods made wholly or in part with forced labor.
• USMCA forced-labor provision: obligation on Canada, Mexico, and the U.S. to prohibit importation of goods produced with forced or compulsory labor.

While no specific HTS subheadings are enumerated in the text provided, importers should assume heightened risk for:

• HTS Chapters commonly associated with apparel (e.g., 61, 62), textiles (52–60), and footwear (64).
• Electronics and components (e.g., Chapters 84, 85, 90).
• Seafood (e.g., Chapters 03, 16) and related preparations.
• Agricultural commodities and processed foods from high‑risk countries listed in DOL and CBP resources.

3. Rate changes / trade remedy impacts

• No explicit new ad valorem duty rates or Chapter 99 tariff lines are created in this announcement.
• Instead, the strategy reinforces and expands use of existing trade and customs tools that have direct duty/admissibility impacts:
• Section 307 enforcement via WROs and Findings:
• WROs: CBP detains shipments at U.S. ports when information reasonably indicates goods are made with forced labor. Importers must either re-export or provide evidence refuting forced labor.
• Findings: Published in the Federal Register; goods are subject to seizure and forfeiture if CBP determines they are produced with forced labor.
• USMCA forced-labor commitments: may lead to targeted enforcement actions, including denial of entry or other remedies, for goods from Canada or Mexico found to be produced with forced labor.
• Section 301 investigations: USTR has already launched a Section 301 investigation into labor-rights violations in Nicaragua; similar actions could result in additional duties (often 10–25% or more in past 301 cases) on targeted products if determinations are made.

4. Key dates and timelines

• The Trade Strategy to Combat Forced Labor is already published and in effect as a policy framework.
• Section 307 and WRO/Findings enforcement is ongoing and continuous; the strategy calls for:
• CBP to publish accessible explanations of its forced-labor enforcement and WRO/Findings process and to post new/modified WROs and Findings online and in the Federal Register on an ongoing basis.
• USMCA forced-labor provisions are already in force; USTR will “continue to engage” counterparts to ensure effective implementation.
• The National Action Plan to Combat Human Trafficking (December 2021) sets a three‑year horizon for many implementation actions, but import enforcement under Section 307 is immediate and not contingent on new regulations.

No specific sunset dates are provided; this is a long‑term, structural enforcement posture.

5. Required actions for importers, brokers, and compliance teams

5.1. Strengthen forced-labor due diligence

• Map supply chains to the raw-material level for high‑risk sectors (apparel, textiles, electronics, seafood, agriculture, and any goods on DOL’s forced‑labor list).
• Identify all facilities, farms, vessels, and subcontractors involved in production.
• Implement and document a forced-labor compliance program that addresses:
• Prohibition of forced, bonded, or indentured labor and recruitment fees.
• Contractual requirements for suppliers to comply with 19 U.S.C. 1307 and applicable labor laws.
• Independent audits and worker interviews where feasible.
• Corrective action and termination protocols for non‑compliance.

5.2. Monitor CBP WROs, Findings, and related advisories

• Regularly review CBP’s WRO and Findings page for new or modified actions that may affect your HTS lines or suppliers:
• https://www.cbp.gov/trade/programs-administration/forced-labor/withhold-release-orders-and-findings
• Cross‑check suppliers, regions, and products against:
• DOL List of Goods Produced by Child Labor or Forced Labor: https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods
• State/DOL/USTR Xinjiang Supply Chain Business Advisory (for China/Xinjiang risks): https://www.state.gov/xinjiang-supply-chain-business-advisory

5.3. Prepare for detentions and admissibility challenges

• Develop internal SOPs for responding to CBP forced-labor detentions, including:
• Rapid identification of detained entries (entry numbers, HTS, suppliers, production sites).
• Collection of evidence to rebut forced-labor allegations (e.g., payroll records, time sheets, recruitment contracts, third‑party audit reports, worker testimony, supply‑chain traceability documentation).
• Decision criteria for re-export vs. contesting detention.
• Ensure brokers are instructed to immediately notify your compliance team of any detention under Section 307 or any reference to forced labor in CBP communications.

5.4. Align with USMCA and other trade agreement obligations

• For imports from Canada and Mexico, confirm that suppliers understand USMCA’s forced-labor prohibition and have internal controls to prevent forced labor in their operations and upstream suppliers.
• For products benefiting from trade preference programs (e.g., GSP-type or regional programs, where applicable), review labor‑rights conditionality and be prepared for potential eligibility challenges if forced labor is identified.

5.5. Review recruitment and labor practices in your supply chain

• For suppliers using migrant or temporary workers (including H‑2 and other programs referenced in the National Action Plan):
• Confirm that workers are not charged recruitment or placement fees.
• Ensure written contracts are provided in a language workers understand.
• Verify that workers can retain their identity documents and can leave employment without penalty.

5.6. Enhance internal risk assessment and governance

• Incorporate forced-labor risk into enterprise risk management and trade compliance risk assessments.
• Prioritize enhanced due diligence for:
• High‑risk countries identified in DOL/State/USTR reports.
• Sectors with known forced-labor issues (as above).
• Suppliers in regions subject to existing or likely WROs.
• Train sourcing, logistics, and customs teams on Section 307, WROs, and the new USTR strategy so they understand the business impact of non‑compliance (detentions, seizures, loss of market access, reputational damage).

6. References and source documents

USTR / Trade Strategy

• USTR Trade Strategy to Combat Forced Labor (primary strategy document referenced in the press release):
• USTR main site: https://ustr.gov
• Strategy link (as referenced): "A copy of the Forced Labor Trade Strategy is available here" (access via USTR press release page).

Forced labor and human trafficking framework

• National Action Plan to Combat Human Trafficking (December 2021):
• PDF: https://bidenwhitehouse.archives.gov/wp-content/uploads/2021/12/National-Action-Plan-to-Combat-Human-Trafficking.pdf
• Trafficking Victims Protection Act and amendments (statutory framework summarized in Appendix B of the National Action Plan).

Customs and CBP enforcement

• Section 307 (19 U.S.C. 1307) – prohibition on importation of goods produced with forced labor.
• CBP Forced Labor Enforcement:
• WROs and Findings: https://www.cbp.gov/trade/programs-administration/forced-labor/withhold-release-orders-and-findings
• General forced-labor page: https://www.cbp.gov/trade/programs-administration/forced-labor

Labor and supply-chain tools

• DOL List of Goods Produced by Child Labor or Forced Labor:
• https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods
• Responsible Sourcing Tool (forced-labor risk and compliance resources):
• https://www.responsiblesourcingtool.org
• Verité report on federal and corporate supply chains (referenced in the National Action Plan):
• https://www.verite.org/wp-content/uploads/2017/04/EO-and-Commodity-Reports-Combined-FINAL-2017.pdf

USMCA and forced labor

• USMCA text and implementation act (forced-labor provisions and Forced Labor Enforcement Task Force):
• USMCA text: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement
• Implementation Act (Pub. L. 116–113), including Sections 741–744 on forced labor.

Xinjiang and high‑risk regions

• Xinjiang Supply Chain Business Advisory (State, Treasury, Commerce, DHS, USTR, DOL):
• https://www.state.gov/xinjiang-supply-chain-business-advisory

7. Practical next steps for compliance teams

• Within 30–60 days:
• Inventory all products and suppliers in sectors/regions identified as high risk.
• Check current suppliers against CBP WROs/Findings and DOL’s forced-labor list.
• Update supplier contracts to include explicit forced-labor prohibitions and cooperation obligations for CBP inquiries.
• Within 3–6 months:
• Implement or enhance a documented forced-labor due‑diligence program.
• Conduct targeted audits or third‑party assessments for highest‑risk suppliers.
• Develop a standard evidence package template for potential CBP forced-labor inquiries.
• Ongoing:
• Monitor USTR, CBP, DOL, and State announcements for new WROs, Findings, Section 301 actions, and forced-labor advisories.
• Periodically re‑assess risk as USTR and CBP expand enforcement under this strategy.

This strategy does not immediately change tariff rates but materially increases the likelihood of import detentions, seizures, and targeted trade actions where forced labor is implicated. Importers should treat forced-labor compliance as a core customs and trade‑risk priority.