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Updated July 26, 2022
Section 307 and Imports Produced by Forced Labor
Section 307 of the Tariff Act of 1930 (19 U.S.C. §1307)
pending further instructions. CBP has usually issued WROs
prohibits importing any product that was mined, produced,
that target specific goods from specific producers.
or manufactured wholly or in part by forced labor,
Figure 1. Application of Section 307
including forced or indentured child labor. U.S. Customs
and Border Protection (CBP) enforces the prohibition.
Defining Forced Labor in Section 307
Forced Labor: “Al work or service which is exacted from any person
under the menace of any penalty for its nonperformance and for
which the worker does not offer himself voluntarily.” – 19 U.S.C.
§1307; language modeled on the ILO Forced Labor Convention, 1930.
U.S. customs law has prohibited importing goods produced
by certain categories of labor since the end of the nineteenth
century. Beginning in 1890, the United States prohibited
imports of goods manufactured with convict labor. In 1930,
Congress expanded this prohibition in Section 307 of the
Tariff Act to include any (not just manufactured) products
of forced labor. Although a few Members brought up
Source: CBP.
humanitarian concerns during debate, the central legislative
concern was protecting domestic producers from competing
An importer has three months to contest a WRO and must
with products made with forced labor. As such, Section 307
demonstrate “every reasonable effort” has been made to
allowed the admission of products of forced labor if it could
determine both the source and type of labor used to produce
be shown that no comparable product was made in the
the merchandise and its components. If the importer does
United States or the level of domestic production did not
not successfully contest the WRO and does not remove the
meet domestic demand (“consumptive demand” clause).
merchandise at issue from the United States, CBP is to
seize and destroy it. Beyond publishing the date, type of
Over the decades, lawmakers and civil society became
merchandise, manufacturer, and status of a WRO, CBP
increasingly concerned about forced labor in the context of
does not generally publish information about specific
human trafficking. The Victims of Trafficking and Violence
detentions, reexportations, exclusions, or seizures.
Prevention Act of 2000 (P.L. 106-386), for example,
Immigration and Customs Enforcement can pursue criminal
included forced labor in its definition of human trafficking.
investigations of Section 307 violations.
Similarly, Congress removed the “consumptive demand”
clause, as part of the Trade Facilitation and Trade
Other Labor and Anti-Trafficking Measures
Enforcement Act (P.L. 114-125) in 2015. Since then, and
WROs are one of several congressionally mandated forced
amid ongoing interest in worker rights in trade policy and
labor and anti-human trafficking measures. Others include
anti-trafficking, CBP’s use of Section 307 has increased.
the Department of Labor’s Findings on the Worst Forms of
Application of Section 307
Child Labor (prepared in accordance with the Trade and
Development Act of 2000, P.L. 106-200) and List of Goods
Reporting
Produced by Child Labor or Forced Labor (required by the
Any individual who has “reason to believe that any class of
Trafficking Victims Protection Reauthorization Act of
merchandise that is being, or is likely to be, imported into
2005, P.L. 109-164). These reports contain country profiles
the United States” is being produced by forced labor may
and lists of goods suspected to have been produced by child
communicate that belief to CBP (Figure 1). As required by
or forced labor, but have traditionally been used to increase
19 C.F.R. §12.42, port directors and other principal customs
awareness rather than to inform CBP actions. More broadly,
officers must report such instances to the CBP
various international conventions and guidelines of the
Commissioner. Persons outside of CBP may choose to
United Nations and International Labor Organization (ILO)
report to the Commissioner, to any port director, or online.
address forced labor, and have informed U.S. approaches.
Investigations and Withhold Release Orders
Trends
Upon receipt of such a report, the Commissioner of CBP is
Following its enactment in 1930, Section 307 was rarely
required to initiate an investigation “as appears warranted”
used to block imports. The International Trade Commission
by the amount and reliability of the submitted information.
reported that between 1930 and the mid-1980s there were
If the Commissioner of CBP finds the information
approximately 60 to 75 instances when either interested
“reasonably but not conclusively indicates” that imports
parties requested or Customs considered the application of
may be the product of forced labor, then she or he is to
Section 307. Of those instances, merchandise was denied
issue an order to withhold release of such goods (WRO)
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Section 307 and Imports Produced by Forced Labor
entry into the United States at least 10 times (6 times from
Cooperation. However, China’s compliance has been
Mexico, and once each from Japan, the Dominican
inconsistent, and U.S. concerns over prison and forced
Republic, Canada, and the former Soviet Union). Use of
labor broadly, remain. Since 2016, China has again become
Section 307 increased substantially in the early 1990s with
a target of WROs, with several issued over the systemic
an increase in Chinese exports to the United States.
forced labor of ethnic Uyghurs and other Turkic Muslims in
Between 1991 and 1995, CBP issued 27 WROs against
Xinjiang. Xinjiang raw materials and products are used in
manufacturers in China. Between 2000 and 2016, CBP did
finished goods in China and neighboring countries, putting
not issue any WROs (Figure 2).
supply chains at risk of exposure to forced labor. In January
2021, CBP issued a region-wide WRO on imports of all
Observers generally linked the difficulties in enforcing
cotton and tomato products from Xinjiang.
Section 307 to the “consumptive demand” clause; as more
goods were manufactured exclusively abroad, it became
The 117th Congress passed, and the President signed, P.L.
easier for importers to make use of the exception. CBP also
117-78 in 2021. The law creates a rebuttable presumption
emphasized limited resources and a lack of sufficient
that goods produced or manufactured in Xinjiang or by
evidence, caused in part by the infeasibility of spot
certain entities with ties to the region are made with forced
inspections that would provide evidence of forced labor. As
labor, unless CBP determines otherwise. It also creates new
noted, Congress removed the consumptive demand clause
reporting requirements and declares that it is the policy of
in 2015, which CBP stated, would “[enhance] CBP’s ability
the United States to coordinate with Canada and Mexico on
to prevent products made with forced labor from being
this issue. The enactment of P.L. 117-78 continues the
imported.” Since then CBP has issued 37 WROs to date.
recent trend toward using Section 307 on a region-wide
Figure 2. WROs Issued Per Year
basis and for humanitarian purposes. CBP began enforcing
the rebuttable presumption on June 21, 2022, and issued
importer guidance to assist in its implementation. As
mandated by the Act, the Forced Labor Enforcement Task
Force (FLETF), chaired by the Secretary of Homeland
Security, also issued its strategy to prevent the import of
goods mined, produced, or manufactured with forced labor
in China. The FLETF specified the list of entities whose
Source: CBP, as of July 2022.
merchandise is subject to the rebuttable presumption.
Issues for Congress
Trade Policy and Forced Labor Provisions
Section 307 Implementation and Enforcement
The treatment of forced labor in U.S. trade policy and free
While congressional action to close the Section 307
trade agreements (FTAs) has been of long-standing
loophole was widely welcomed, some observers question
congressional interest and has evolved in recent years. In
whether CBP is effectively making use of the change. Some
January 2022, the U.S. Trade Representative (USTR)
labor groups cite lack of clear evidentiary standards
announced it would develop its “first-ever focused trade
required in petitions and transparency by CBP on
strategy to combat forced labor,” kicking off an interagency
explanations of enforcement actions as concerns. Observers
review of existing trade policies and tools. Per negotiating
attribute few actions to the customary practice of targeting
objectives set by Congress in Trade Promotion Authority,
individual producers and the difficulty of tracing products
recent U.S. FTAs commit countries to maintain laws on
back to the facility using forced labor, given complex
core ILO rights/principles, e.g., elimination of forced or
global supply chains. Recent industry and countrywide
compulsory labor. For the first time in a U.S. FTA, the
enforcement actions have been welcome developments to
U.S.-Mexico-Canada Agreement (USMCA) also commits
some, including Members of Congress who advocated this
parties to prohibit imports produced by forced labor and to
approach to Xinjiang. Industry groups caution that broader
cooperate over identifying such goods. USMCA
WROs may disrupt supply chains, deter legitimate business
implementing legislation (P.L. 116-113) created the FLETF
with other suppliers, and worsen the economic security of
to monitor and report on enforcement of Section 307.
vulnerable workers. They also expressed uncertainty as to
Eligibility criteria for U.S. trade preference programs also
what kinds of evidence will demonstrate compliance. Other
includes taking steps to maintain worker rights. Some
stakeholders view greater supply chain due diligence and
eligibility reviews and revocation of developing country
accountability by companies as critical components.
benefits by USTR have involved labor practice concerns.
Enhancing Section 307 enforcement would likely hinge on
Trade agreements have expanded coverage of trade and
greater resources. CBP has cited staff shortages as causing
labor issues in part because the World Trade Organization
the agency to drop investigations and limiting its ability to
does not cover such rules, deferring to the ILO—though it
monitor existing cases. Congress could appropriate funds if
provides exceptions to a country’s obligations for measures
lack of capacity hinders WRO issuance and enforcement.
related to imports of products of prison labor. Congress
China and Forced Labor
might consider assessing the ILO’s role and how to enhance
The majority of WROs have been against China: Of the 68
U.S. support, and encourage elevating forced labor as part
issued since 1990, 44 (65%) were against Chinese goods.
of trade discussions in other international fora.
Many orders were issued between 1991 and 1993, declining
after the United States and China negotiated agreements
Christopher A. Casey, Analyst in International Trade and
relating to goods made with prison labor, notably a 1992
Finance
Memorandum of Understanding and 1994 Statement of
https://crsreports.congress.gov
Section 307 and Imports Produced by Forced Labor
IF11360
Cathleen D. Cimino-Isaacs, Analyst in International Trade
and Finance
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https://crsreports.congress.gov | IF11360 · VERSION 11 · UPDATED