[Federal Register Volume 65, Number 144 (Wednesday, July 26, 2000)]
[Rules and Regulations]
[Pages 45873-45875]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18819]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 12
[T.D. 00-52]
RIN 1515-AC36
Forced or Indentured Child Labor
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the Customs Regulations with the
particular intent to stop illegal shipments of products of forced or
indentured child labor and to punish violators. The document amends the
Customs Regulations to provide for the seizure and forfeiture of
merchandise that is found to be a prohibited importation under 19
U.S.C. 1307, concerning products of convict labor, forced labor, or
indentured labor under penal sanctions, including forced or indentured
child labor under penal sanctions. The amendment makes clear that
nothing in the Customs Regulations precludes Customs from seizing for
forfeiture merchandise imported in violation of applicable Federal
criminal law dealing with prison-labor goods. The amendments form part
of a vigorous law enforcement initiative undertaken by Customs to
prohibit the importation of merchandise produced by forced or
indentured child labor.
EFFECTIVE DATE: August 25, 2000.
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 may be exported at any time within
the 3-month period after importation. 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 it has been exported or a protest has been filed under 19 U.S.C.
1514.
Forced or Indentured Child Labor
A general provision in the Fiscal Year (FY) 1998 Treasury
Appropriations Act
[[Page 45874]]
made clear what is implicit in the law: that merchandise manufactured
with the use of forced or indentured child labor under penal sanctions
falls within the prohibition of section 1307. This Act prohibits
Customs from using any of the appropriation to permit the importation
into the United States of such merchandise. In addition, in the last
three State of the Union addresses, President Clinton has pledged to
fight abusive child labor.
Following the enactment of the FY 1998 appropriations amendment
regarding forced or indentured child labor under penal sanctions, 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 imports that were
produced by forced or indentured child labor under penal sanctions.
To this end, the Treasury Department, by a document published in
the Federal Register (63 FR 30813) on June 5, 1998, established a
Treasury Advisory Committee on International Child Labor Enforcement,
whose ultimate purpose was to support a vigorous law enforcement
initiative to stop illegal shipments of products of forced or
indentured child labor under penal sanctions and to punish violators.
By a document published in the Federal Register (65 FR 11831) on March
6, 2000, the Treasury Department determined that it was in the public
interest to renew this Advisory Committee for an additional two-year
term beyond its original expiration date (June 22, 2000).
Proposed Amendment
As part of the foregoing initiative, by a document published in the
Federal Register (64 FR 62618) on November 17, 1999, Customs proposed
to amend Sec. 12.42(a) to make expressly clear that merchandise
manufactured with the use of forced or indentured child labor under
penal sanctions falls within the prohibition of 19 U.S.C. 1307.
Also, Customs proposed to amend Sec. 12.44 regarding the
disposition to be accorded merchandise that is a prohibited importation
under section 307. Under this proposed amendment, in the case of
merchandise covered by a finding under Sec. 12.42(f), if the
Commissioner of Customs advised the port director that the proof
furnished under Sec. 12.43 did not establish the admissibility of a
particular importation of such merchandise, or if no proof was timely
furnished in this regard, the merchandise would then be seized and be
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.
In addition, Customs proposed to amend Sec. 12.44 to state
explicitly that nothing in the Customs Regulations (19 CFR Chapter I)
precluded 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.
Discussion of Comment
Counsel on behalf of a domestic trade association submitted the
only comment in response to the notice of proposed rulemaking. The
trade association supported the proposed amendments. However, the
association asked that Sec. 12.42 also be amended to impose a one-year
time limit within which Customs would need to complete, and take
appropriate action in connection with, an investigation undertaken
pursuant to 19 U.S.C. 1307. In this regard, the association wanted
Sec. 12.42 further revised to require that persons presenting
information of an alleged violation of section 1307 be kept informed,
along with any interested domestic producers, and any other interested
parties, regarding the continuing progress of an investigation.
Finally, the association requested that Sec. 12.42(e) be amended to
require that the Commissioner withhold release of any merchandise
undergoing investigation for a possible violation of 19 U.S.C. 1307 if
there were reasonable grounds to believe that the merchandise was
indeed a prohibited importation under section 1307.
Customs Response
Customs believes that it would be inappropriate and
counterproductive to impose an inflexible time limit in Sec. 12.42 for
any investigation initiated under 19 U.S.C. 1307. The quality of the
information received regarding suspected violations of section 1307
varies substantially in each case. Extensive and lengthy investigation
is required in some cases, and significant barriers (e.g., cultural,
political, geographic) must be overcome, in order to obtain the
evidence needed to support lawful Customs action under the statute.
Also, the disclosure of information regarding ongoing Customs
investigations is generally contrary to agency policy.
Lastly, Sec. 12.42(e) already provides that if the Commissioner of
Customs finds at any time that information available reasonably but not
conclusively indicates that merchandise within the purview of section
1307 is being, or is likely to be, imported, the Commissioner will
notify all port directors accordingly. The port directors are then to
withhold the release of any such merchandise pending instructions from
the Commissioner as to whether the merchandise may be released
otherwise than for exportation. Customs believes that this is
sufficient and that no amendment of Sec. 12.42(e) is needed under the
circumstances.
Conclusion
In view of the foregoing, and following careful consideration of
the issues raised by the commenter and further review of the matter,
Customs has concluded that the proposed amendments should be adopted.
Additional Changes
In addition, Customs has determined that the phrase, ``including
forced or indentured child labor'', appearing in proposed
Sec. 12.42(a), should be revised to read, ``including forced or
indentured child labor under penal sanctions'', in order to conform
precisely with the plain language and requirements of 19 U.S.C. 1307.
Also, proposed Sec. 12.44 is revised essentially to retain the
provision contained in the current regulation (19 CFR 12.44 (1999))
regarding the disposition to be accorded merchandise that has been
detained under Sec. 12.42(e) but that is not subject to a finding under
Sec. 12.42(f).
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 under penal sanctions, 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 findings
of forced or indentured child labor under penal sanctions 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 this final rule
will not have a significant economic impact on a substantial number of
small entities. Nor does the
[[Page 45875]]
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.
Amendments to the Regulations
Part 12, Customs Regulations (19 CFR part 12), is amended as set
forth below.
PART 12--SPECIAL CLASSES OF MERCHANDISE
1. The general authority citation for part 12 continues to read as
follows, and the relevant specific sectional authority is 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. Section 12.42 is amended 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 that 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 child labor or indentured child labor
under penal sanctions, 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. Section 12.44 is revised to read as follows:
Sec. 12.44 Disposition.
(a) Export and abandonment. Merchandise detained pursuant to
Sec. 12.42(e) may be exported at any time prior to seizure pursuant to
paragraph (b) of this section, or before it is deemed to have been
abandoned as provided in this section, whichever occurs first. Provided
no finding has been issued by the Commissioner of Customs under
Sec. 12.42(f) and the merchandise has not been exported within 3 months
after the date of importation, the port director will ascertain whether
the proof specified in Sec. 12.43 has been submitted within the time
prescribed in that section. If the proof has not been timely submitted,
or if the Commissioner of Customs advises the port director that the
proof furnished does not establish the admissibility of the
merchandise, the port director will promptly advise the importer in
writing that the merchandise is excluded from entry. Upon the
expiration of 60 days after the delivery or mailing of such advice by
the port director, the merchandise will be deemed to have been
abandoned and will be destroyed, unless it has been exported or a
protest has been filed as provided for in section 514, Tariff Act of
1930.
(b) 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 timely 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.
(c) 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.
Raymond W. Kelly,
Commissioner of Customs.
Approved: June 19, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-18819 Filed 7-25-00; 8:45 am]
BILLING CODE 4820-02-P