August ’23 at-a-glance … supply chain

Efforts underway to open cargo space to all shippers

The Federal Maritime Commission (FMC) issued a Supplemental Notice of Proposed Rulemaking seeking further comments on its draft prohibition on common carriers unreasonably refusing cargo space to shippers. Comments are due Sept. 15. FMC is pursuing this action based on its expanded accountabilities under the Ocean Shipping Reform Act, for which NAFEM advocated to address some of the supply chain bottlenecks the industry has experienced.

Shipments of goods produced with Uyghur labor continue to be denied

Just a reminder that U.S. Customs and Border Protection (CBP) closely watches for goods covered under the Uyghur (China) Forced Labor Prevention Act (UFLPA). The Act largely prohibits importing any goods, wares, articles and merchandise mined, produced or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China. CBP’s dashboard provides statistics on shipments subjected to UFLPA reviews and enforcement actions. A recent review of the dashboard shows that most denied shipments come from China, Vietnam and Malaysia (in that order). Industrial and manufacturing materials represent the second highest volume of denied shipments; apparel is first.

Know your supply chain: Restricted entities listed on government database

The International Trade Administration maintains the Consolidated Screening List (CSL) of parties with which the U.S. restricts certain exports, reexports or transfers of items, including those addressed under the UFLPA, Russia/Belarus sanctions and others. The list is updated daily, and email updates are available at the link above.

Canada escalates monitoring of child and forced labor in supply chains

Canada introduced Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chains Act that includes a provision to amend the Customs Tariff. If approved, the Act would require certain companies to annually report on steps taken to prevent the risk that forced or child labor is used anywhere in their supply chains. The second part of the proposed act would expand the prohibition of goods produced in whole or part with child or forced labor. The act is proposed to take effect Jan.1, 2024.