[Federal Register Volume 64, Number 221 (Wednesday, November 17, 1999)]
[Proposed Rules]
[Pages 62618-62619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29928]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 12

RIN 1515-AC36


Forced or Indentured Child Labor

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the Customs Regulations to 
provide for the seizure and forfeiture of merchandise that is found to 
be a prohibited importation under applicable Customs law concerning 
products of convict labor, forced labor, or indentured labor under 
penal sanctions. Furthermore, this document proposes to amend the 
Customs Regulations to make clear that nothing in those regulations 
precludes Customs from seizing for forfeiture merchandise imported in 
violation of applicable Federal criminal law dealing with prison-labor 
goods. The proposed amendments are intended to stop illegal shipments 
of products of forced or indentured child labor and to punish 
violators.

DATES: Comments must be received on or before January 18, 2000.

ADDRESSES: Written comments may be addressed to and inspected at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, NW, 
3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Glen E. Vereb, Office of Regulations 
and Rulings, 202-927-2320.

SUPPLEMENTARY INFORMATION:

Background

    Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307), generally 
prohibits the importation of goods, wares, articles, and merchandise 
mined, produced, or manufactured wholly or in part in any foreign 
country by convict labor or/and forced labor or/and indentured labor 
under penal sanctions. Such prohibitions are enforced by Customs under 
Secs. 12.42--12.44 of the Customs Regulations (19 CFR 12.42--12.44).
    If Customs finds, on the basis of information presented and 
investigated under the procedures described in Sec. 12.42(a)-(e), that 
a class of merchandise is subject to the prohibition under section 307, 
the Commissioner of Customs, with the approval of the Secretary of the 
Treasury, will publish a finding to this effect in the weekly issue of 
the Customs Bulletin and in the Federal Register, as prescribed in 
Sec. 12.42(f).
    Under Sec. 12.43, an importer is afforded the opportunity to 
furnish proof within 3 months after importation in order to establish 
the admissibility of particular imported merchandise detained by 
Customs under Sec. 12.42(e) or covered by a finding under 
Sec. 12.42(f), that the particular merchandise being imported is not 
itself produced with the use of a type of labor specified in section 
307.
    Section 12.44 deals with the disposition of merchandise determined 
to be inadmissible under section 307. Currently, Sec. 12.44 provides in 
pertinent part that such merchandise (1) may be exported at any time 
within the 3-month period after importation or (2) if not so exported 
and if no proof of admissibility has been provided, the importer is 
advised in writing that the merchandise is excluded from entry and, 60 
days thereafter, the merchandise is deemed abandoned and will be 
destroyed unless a protest is filed under 19 U.S.C. 1514.

Forced or Indentured Child Labor

    A general provision in the Fiscal Year (FY) 1998 Treasury 
Appropriations Act made clear what is implicit in the law: that 
merchandise manufactured with the use of forced or indentured child 
labor falls within the prohibition of section 1307. This Act requires 
that Customs not use any of the appropriation to permit the importation 
into the United States of such merchandise.
    Following the enactment of the FY 1998 appropriations amendment 
regarding forced or indentured child labor, both the Treasury 
Department and the National Economic Council chaired in-depth 
interagency discussions aimed at strengthening the capability of the 
Executive Branch to enforce the prohibition on forced or indentured 
child labor imports.
    To this end, the Treasury Department, by a document published in 
the Federal Register on June 5, 1998 (63 FR 30813), proposed the 
establishment of a Treasury Advisory Committee on International Child 
Labor Enforcement, whose ultimate purpose is to support a vigorous law 
enforcement initiative to stop illegal shipments of products of forced 
or indentured child labor and to punish violators.

Proposed Amendment

    Accordingly, as part of the foregoing initiative, Customs proposes 
to amend Sec. 12.44 regarding the disposition to be accorded 
merchandise that is a prohibited importation under section 307.
    Specifically, under the proposed amendment, in the case of 
merchandise covered by a finding under Sec. 12.42(f), if the 
Commissioner of Customs advises the port director that the proof 
furnished under Sec. 12.43 does not establish the admissibility of a 
particular importation of such merchandise, or if no proof is furnished 
in this regard, the merchandise will then be seized and subject to the 
commencement of forfeiture proceedings under subpart E of part 162 of 
the Customs Regulations (19 CFR part 162, subpart E). Currently, such 
merchandise is permitted to be exported at any time before it is deemed 
to have been abandoned.
    Also, Customs further proposes to amend Sec. 12.44 to state 
expressly that nothing in the Customs Regulations (19 CFR Chapter I) 
precludes Customs from seizing for forfeiture merchandise imported in 
violation of applicable Federal criminal law (18 U.S.C. 1761--1762) 
dealing with prison-labor goods.

Comments

    Before adopting this proposal as a final rule, consideration will 
be given to any written comments that are timely submitted to Customs. 
Comments submitted will be available for public inspection in 
accordance with the Freedom of Information Act (5 U.S.C. 552), 
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular 
business days between the hours of 9:00 a.m. and 4:30 p.m. at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania

[[Page 62619]]

Avenue, NW, 3rd Floor, Washington, DC.

Regulatory Flexibility Act and Executive Order 12866

    Because the importation of goods, wares, articles, and merchandise 
mined, produced or manufactured wholly or in part in any foreign 
country by forced labor is prohibited, Customs anticipates that there 
will not be a substantial number of small entities that would become 
involved in a prohibited importation. The rule applies to products 
subject to a ``finding'' that the class of merchandise was produced 
with forced or indentured child labor, a more formal Customs action 
with a higher burden of proof than simple Customs detention of 
merchandise based on reasonable suspicion. Also the range of countries 
and products which are likely to be implicated in forced or indentured 
child labor findings is likely to be fairly narrow. Accordingly, it is 
certified, in accordance with the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) that, if adopted, the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
Nor does the document meet the criteria for a ``significant regulatory 
action'' as specified in E.O. 12866.

List of Subjects in 19 CFR Part 12

    Customs duties and inspection, Entry of merchandise, Imports, 
Prohibited merchandise, Restricted merchandise, Seizure and forfeiture.

Proposed Amendments to the Regulations

    It is proposed to amend part 12, Customs Regulations (19 CFR part 
12), as set forth below.

PART 12--SPECIAL CLASSES OF MERCHANDISE

    1. The general authority citation for part 12 would continue to 
read as follows, and the relevant specific sectional authority would be 
revised to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
* * * * *
    Sections 12.42 through 12.44 also issued under 19 U.S.C. 1307 and 
Pub. L. 105-61 (111 Stat. 1272);
* * * * *
    2. It is proposed to amend Sec. 12.42 by revising the first 
sentence of paragraph (a) to read as follows:


Sec. 12.42  Findings of Commissioner of Customs.

    (a) If any port director or other principal Customs officer has 
reason to believe that any class of merchandise which is being, or is 
likely to be, imported into the United States is being produced, 
whether by mining, manufacture, or other means, in any foreign locality 
with the use of convict labor, forced labor, or indentured labor under 
penal sanctions, including forced or indentured child labor, so as to 
come within the purview of section 307, Tariff Act of 1930, he shall 
communicate his belief to the Commissioner of Customs. * * *
* * * * *
    3. It is proposed to revise Sec. 12.44 to read as follows:


Sec. 12.44  Disposition.

    (a) Seizure and summary forfeiture. In the case of merchandise 
covered by a finding under Sec. 12.42(f), if the Commissioner of 
Customs advises the port director that the proof furnished under 
Sec. 12.43 does not establish the admissibility of the merchandise, or 
if no proof has been furnished, the port director shall seize the 
merchandise for violation of 19 U.S.C. 1307 and commence forfeiture 
proceedings pursuant to part 162, subpart E, of this chapter.
    (b) Prison-labor goods. Nothing in this chapter precludes Customs 
from seizing for forfeiture merchandise imported in violation of 18 
U.S.C. 1761 and 1762 concerning prison-labor goods.

    Approved: August 12, 1999.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 99-29928 Filed 11-16-99; 8:45 am]
BILLING CODE 4820-02-P