The US has stepped up its efforts to ensure its importers aren’t breaching legislation by sourcing goods made by North Korean nationals under force, in a move that could see companies have their assets frozen.
Under the Countering America’s Adversaries through Sanctions Act, which was passed by Congress in August, any significant merchandise mined, produced, or manufactured entirely or in part by North Korean nationals or citizens is prohibited from entry into the US unless Customs and Border Protection (CBP) finds, through clear and convincing evidence, that the merchandise was not produced with a form of prohibited labour.
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Where this is found, CBP will deny entry, which may include seizure of the merchandise, and refer the issue to Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with a request to initiate a criminal investigation for violation of US law.
The move could affect the apparel and textile sectors as around 65,000 North Koreans are understood to be working in 40 countries across Asia and Eastern Europe. An AP investigation also found North Korean labourers sewing garments at factories in Northeast China, some of which may have been bound for the US.
“CBP is committed to establishing a strong and effective interagency response to human trafficking and forced labour, and we are an active participant in the DHS led Forced Labor Interagency Work Group,” said Acting Commissioner Kevin McAleenan. “CBP undertook a comprehensive review of our approach to exclude goods made with forced labour, consulting with numerous public and private sector stakeholders, resulting in a number of changes in our approach.”
With the US ramping up pressure on North Korea, CBP has moved to remind importers of their “obligation to exercise reasonable care and take all necessary and appropriate steps to ensure goods entering the US comply with all laws and regulations”. To that end, CBP recently updated its Informed Compliance Publication, ‘What Every Member of the Trade Community Should Know’, that includes a section on forced labour.
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By GlobalData“CBP is committed to preventing the importation of merchandise produced with forced labour or the labour of North Korean nationals or citizens anywhere in the world,” it says. “CBP will continue to engage its interagency partners to assess how this change affects the supply chain risk associated with merchandise produced in any foreign location and imported or likely to be imported into the United States.”
The agency said it welcomes allegations on forced labour at its eAllegation portal. Parties who provide original information that leads to the recovery of any penalty, fine, or forfeiture of merchandise could receive compensation of up to US$250,000.
In September, the US and Japan began mulling the ban of textile exports from North Korea in a bid to punish the country over its most recent nuclear tests.
US, Japan eye sanctions on North Korea textile exports
