The U.S. Customs and Border Protection (CBP) Monday issued five Withhold Release Orders (WROs) on various products from China linked to state-sponsored forced labor in the Xinjiang Uyghur Autonomous Region. The WROs direct CBP officers at ports of entry to withhold release of the following:
All products made with labor from the Lop County No. 5 Vocational Skills Education and Training Center; hair products made in the Lop County Hair Product Industrial Park;
-Apparel produced by Yili Zhuowan Garment Manufacturing Company, Ltd., and Baoding LYSZD Trade and Business Company;
-Cotton produced and processed by Xinjiang Junggar Cotton and Linen Company, Ltd.;
-Computer parts made by Hefei Bitland information Technology Company, Ltd., in Anhui, China.
While the action is not as broad as had been feared, acting CBP Deputy Secretary Ken Cuccinelli said the new orders would be in place while the administration conducts more legal analysis of the region-wide import bans, with CBP acting Commissioner Mark Morgan telling reporters that the investigations continue. Reports indicate that some in the Trump administration raised concerns about supply chain disruptions that could evolve with broader bans. Cuccinelli said legal concerns were the factor in the administration opting to further investigate the situation.
“We want to make sure that when we do get challenged - and we assume that we will be challenged, legally - that we will prevail and none of the goods we would ultimately would seize under such a WRO would be shaken loose and released into the United States,” he stated.
Indications are the companies targeted by CBP are smaller suppliers but some remain concerned about the potential impact if the U.S. broadens the actions.
China, as expected, reacted angrily to the U.S. moves. The actions "violate the rules of international trade, and disrupt global industrial, supply and value chains," Foreign Ministry spokesman Wang Wenbin told reporters. “The so-called forced labor issue is entirely fabricated by some organizations and people in the U.S. and the West.” He further noted China will take action to protect the rights and interests of Chinese companies.