On August 26, 2021, U.S. Customs and Border Protection (CBP) announced that for FY 2021 between October 1, 2020 and August 6, 2021, the agency had detained approximately $368 million ($367,743,052) worth of cargo in relation to forced labor by issuing Withhold Release Orders (WROs). As noted by the agency’s trade statistics, this represented a total number of 967 detained shipments during this period of time, which marks an increase of 331 stopped shipments from the previous release of statistics in June 2021. In terms of total value of detained cargo, this represented a 562% increase compared to FY 2020 where CBP detained $56 million ($55,541,383) worth of cargo in relation to forced labor.

This increase shows the U.S. government’s continued efforts to exclude goods suspected of using forced labor from entering the United States. During its forced labor investigations, CBP works to identify if any of the International Labour Organization’s (ILO’s) 11 indicators of forced labor exist in an entity’s operations, which include the following:

  • Abuse of vulnerability
  • Deception
  • Restriction of movement
  • Isolation
  • Physical and sexual violence
  • Intimidation and threats
  • Retention of identity documents
  • Withholding of wages
  • Debt bondage
  • Abusive working and living conditions
  • Excessive overtime

WROs are issued by the U.S. government when information reasonably but not conclusively indicates goods were made in whole or in part using forced labor. Merchandise detained under a WRO order must be exported immediately or a substantial submission made that provides specific information showing that the goods were not made with forced labor. To obtain a release of any shipment that has been subjected to a WRO, a certificate of origin along with this detailed statement regarding the merchandise’s production and supply chain origin must be submitted to CBP. CBP makes a determination on a case-by-case basis.

The latest trade statistics are available here.

For more information on actions Withhold Release Orders (WROs) and forced labor violations, contact our team and see previous posts below.

CBP Issues Withhold Release Order (WRO) on Certain Silica-Based Products from Xinjiang, PRC | International Trade Law (cmtradelaw.com)

Customs Denies Protest and Excludes Shipment of Cotton Garments for Violation of Xinjiang Withhold Release Order (WRO) | International Trade Law (cmtradelaw.com)

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Photo of David Stepp David Stepp

David Stepp is an experienced trade lawyer who provides multinational companies with strategic advice on global customs and international trade compliance matters. David is a partner in the Los Angeles office of Crowell & Moring.

His practice focuses on advising companies on their…

David Stepp is an experienced trade lawyer who provides multinational companies with strategic advice on global customs and international trade compliance matters. David is a partner in the Los Angeles office of Crowell & Moring.

His practice focuses on advising companies on their e-commerce strategies globally, conducting global customs and international trade audits, and assisting clients on improving, benchmarking, and coordinating compliance programs across borders.

David has over 30 years of experience handling international trade regulatory matters, including those related to tariff classification, valuation, country of origin marking, free trade agreements, and Customs-Trade Partnership Against Terrorism (CTPAT).

Photo of Maria Vanikiotis Maria Vanikiotis

Maria Vanikiotis is a counsel in the International Trade Group of Crowell & Moring and resident in the firm’s New York office.

Maria has experience in a variety of matters related to the movement of goods across international borders, including problem-solving for importers

Maria Vanikiotis is a counsel in the International Trade Group of Crowell & Moring and resident in the firm’s New York office.

Maria has experience in a variety of matters related to the movement of goods across international borders, including problem-solving for importers facing Section 232 and Section 301 tariffs, classification of merchandise under the Harmonized Tariff Schedule, first sale appraisement programs, free trade agreement origin verifications, country of origin analyses, and other regulatory issues.

Before joining Crowell & Moring, Maria worked for a boutique law firm in New York focusing on customs law and, while in law school, Maria was employed as a summer associate in the Brussels office of a large international law firm on matters related to antitrust and competition law within the European Union. As a law student, Maria published a note comparing collective action approaches to antitrust cases in the U.S., U.K., and E.U., for which she won an award for outstanding legal writing. In addition, Maria was an active and accomplished member of both the Fordham International Law Journal and the Dispute Resolution Society.