CBP Plans to Add Forced Labor Component to CTPAT

The CBP proposal will require that companies "develop, implement and verify a robust social compliance program" in order to benefit from the program, it said. CBP outlines "the seven facets of a successful program, the evidence of implementation that a company must provide to CBP and the benefits for which a compliant company will be eligible," in the strategy document. The seven facets include developing a code of conduct, compliance monitoring, violation remediation and training. Each of the facets has its own evidence of implementation. For example, implementation evidence for the code of conduct would be providing the code and other legal documents that include terms of compliance with the company code to CBP signed by senior management, it said.

CBP lists four recommended benefits for keeping a CTPAT social compliance program. First, CBP will notify participants of companies and products considered as high risk for forced labor violations before CBP issues a withhold release order. "Prior notification will allow participating companies time to review their supply chain and, if necessary, prepare exculpatory evidence before the WRO takes effect," CBP said. Second, those companies "will be first in line for an expedited verification" of exculpatory evidence provided. Third, participants will see "a reduction in post release inquiries related to forced labor supply chain due diligence such as CBP Form 28, audit surveys, etc.," CBP said. Finally, "in the absence of specific actionable intelligence identifying imports associated with individual CTPAT Trade Compliance participants, participants in good standing will be excluded from the universe of imports considered high-risk," it said.

The Secure Trade Lanes Subcommittee would like CBP to define forced labor within the strategy document and "allow companies that have forced labor programs the option of opting in or opting out of the Forced Labor component of the future CTPAT Trade Compliance program," the subcommittee said in its draft recommendations. Also recommended is that "CBP provide guidance regarding the potential enforcement actions such as issuing a detention, redelivery or seizure notice or a monetary penalty when CBP suspects a violation," the subcommittee said. "Additionally, COAC recommends that CBP detail the disclosure and mitigation mechanism and process necessary to maintain compliance with and/or address violations of the program."

CBP posted the following documents for the Dec. 5 COAC meeting:

Administrative

• Agenda (here)

Intelligent Enforcement

• Intelligent Enforcement Subcommittee Trade Executive Summary (here)
• Intellectual Property Rights Working Group Recommendations (here)
• AD/CVD Issue Paper (here)
• Forced Labor Issue Paper (here)
• Intellectual Property Rights Issue Paper (here)
• Risk-Based Bonding Issue Paper (here)

Next Generation Facilitation

• Next Generation Facilitation Subcommittee Trade Executive Summary (here)
• Regulatory Reform Draft Recommendations (here)
• E-Commerce Issue Paper (here)
• Emerging Technologies Working Group External Blockchain Issue Paper (here)
• Foreign-Trade Zones Regulatory Reform Issue Paper (here)
• Regulatory Reform Working Group Reforming Regulations Issue Paper (here)

Secure Trade Lanes

• Secure Trade Lanes Subcommittee Executive Summary (here)
• In-Bond Working Group Draft Recommendations (here)
• Pipeline Working Group Draft Recommendations (here)
• Trusted Trader Working Group (Forced Labor) Draft Recommendations (here)
• CTPAT Minimum Security Criteria Update Issue Paper (here)
• In-Bond Working Group Issue Paper (here)
• Pipeline Working Group Issue Paper (here)
• Trusted Trader Working Group Issue Paper (here)
• Trusted Trader Working Group Draft CTPAT/Trade Compliance Forced Labor Strategy (here).