I import clothes from China, will the clothes be banned?

colorful cargo containers on ship near pier
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According to Reuters, China’s Ministry of Commerce claims the US’s recent legislation banning imports of goods from the Xinjiang region as “economic bullying”. The Xinjiang region in China is a large manufacturer of cotton and solar panels and last week’s signing of the import ban will heavily impact US imports of clothing from China.

If you are an importer of any type of clothing or goods made from cotton shipped from China, you may be wondering whether the ban will impact you.

The short answer is: YES.

While the ban specifically mentions the Xinjiang region, enforcement by U.S. Customs and Border Protection (Customs) will apply to goods manufactured elsewhere in China and shipped to the US. From our experience – Customs will ask importer of records who import textiles to prove the cotton is not from the Xinjiang region.

Good shipped from any port in China will be subject to the same scrutiny and it is important to take action now to limit any Customs delay will have on your import (and your business).

If you are an importer of record, I strongly suggest the following:

  1. Email the manufacturer and ask about the supply chain and sourcing of materials.
  2. Ask your supplier where the cotton is from, is it from Xinjiang?
  3. Ask your supplier for proof and documentation of where they source the cotton.
  4. Ask for something in writing (affidavit/certification/etc.) that you can provide in the event CBP sends a CF-29 or detains/seizes your merchandise.

If you want to get an import compliance manual in place – or have any questions about maintaining import compliance with respect to the most recent ban, or any other import risks – contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, DH@GJATradeLaw.com.

Banned! Cotton from Xinjiang, China.

stylish collection of multicolored clothes on hangers in boutique
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In early December, the House and Senate unanimously passed a law banning the importation of products made from China’s Xinjiang region. The bill that passed both houses was signed on December 23rd by President Biden. The new bill requires suppliers to prove their products were not produced using forced labor. As previously posted on this blog – many products such as cotton and solar panels are imported from the Xinjiang region of China. In response, China has denied allegations of forced labor.

If you import any clothing from China, contact our office for a free consultation on how you can avoid any upcoming import compliance issues. Contact David Hsu anytime by phone or text at 832-896-6288 or by email at attorney.dave@yahoo.com, DH@GJATradeLaw.com.

Withhold Release Order issued for Xinjiang Production and Construction Corps.

white flowers in tilt shift lenswhite flowers in tilt shift lens

The U.S. Department of Homeland Security announced today that U.S. Customs and Border Protection (CBP) at the over 400 ports of entry into the US will detain all shipments from Xinjiang Production and Construction Corps (XPCC).

The Withhold Release Order (WRO) was issued for XPCC based on information that reasonably indicates XPCC uses forced and convict labor in their cotton and cotton products.

The recent WRO is the sixth issued by CBP against goods manufactured by forced labor in China’s Xinjiang Uyghur Autonomous Region. Under a WRO, importers have two options,

Federal statute 19 U.S.C. 1307 prohibits the importation of merchandise mined, manufactured, or produced, wholly or in part, by forced labor, including convict labor, forced child labor, and indentured labor. This WRO will require detention at all U.S. ports of entry of all cotton products produced by the XPCC and any similar products that the XPCC produces. Importers of detained shipments have two options – export the shipment or demonstrate the merchandise was not producd with forced labor.

If you have had your shipment detained for a violation of an active WRO – contact trade attorney David Hsu by phone or email at 832-896-6288 or attorney.dave@yahoo.com.

CBP issues new withhold release order against cotton from Turkmenistan.

Turkmenistan-map

Map of Turkmenistan from Wikipedia.

Last week, U.S. Customs and Border Protection (CBP) issued a new withhold release order for goods suspected of being made by forced labor.

This time, a detention order (withhold release order) was issued against cotton from Turkmenistan. The May 18, 2018 WRO includes “all Turkmenistan Cotton or products produced in whole or in part with Turkmenistan cotton”.

Importers are expected by CBP to be informed whether the goods they import are subjec to WRO’s. A full list of current imports subject to WRO’s can be found here.

Background regarding CBP’s efforts against forced labor:
Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307) bans the importing of merchandise that is mined, produced or manufactured, in whole or in part, in any foreign country by forced labor/child labor. Such merchandise is subject to seizure or excluded from importation into the US.

When information reasonably but not conclusively indicates that subject merchandise is being imported, Customs may issue withhold release orders pursuant to 19 C.F.R. § 12.42(e). If the Commissioner is provided with information sufficient to make a determination that the goods in question are subject to the provisions of 19 U.S.C. § 1307, the Commissioner will publish a formal finding in the Customs Bulletin and in the Federal Register.

A withhold release order will require detention at all US ports of entry of any such merchandise manufactured by these companies. Withhold release orders are usually issued against types of goods and specific producers from specific countries.

If you have had issues regarding importation of good subject to a withhold release order, contact experienced customs attorney David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.