[Federal Register Volume 85, Number 203 (Tuesday, October 20, 2020)]
[Notices]
[Pages 66574-66575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23123]


-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. 20-17]


Notice of Finding That Certain Stevia Extracts and Derivatives 
Produced in the People's Republic of China With the Use of Convict, 
Forced or Indentured Labor Are Being, or Are Likely To Be, Imported 
Into the United States

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice of forced labor finding.

-----------------------------------------------------------------------

SUMMARY: This document notifies the public that the Executive Assistant 
Commissioner, Office of Trade, of U.S. Customs and Border Protection 
(CBP), with the approval of the Acting

[[Page 66575]]

Secretary of Homeland Security, has determined that stevia extracts and 
derivatives, mined, produced, or manufactured in the People's Republic 
of China by the Inner Mongolia Hengzheng Group Baoanzhao Agriculture, 
Industry, and Trade Co., Ltd. (also referred to herein as 
``Baoanzhao'') with the use of convict, forced or indentured labor, are 
being, or are likely to be, imported into the United States.

DATES: This Finding applies to any merchandise described in Section II 
of this Notice that is imported on or after October 20, 2020. It also 
applies to merchandise which has already been imported and has not been 
released from CBP custody before October 20, 2020.

FOR FURTHER INFORMATION CONTACT: Edward T. Thurmond, Chief, Forced 
Labor Division, Trade Remedy Law Enforcement Directorate, Office of 
Trade, (202) 897-9348 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to section 307 of the Tariff Act of 1930, as amended (19 
U.S.C. 1307), ``[a]ll 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 shall not be entitled to entry at any of the ports of the 
United States, and the importation thereof is hereby prohibited.'' 
Under this section, ``forced labor'' includes ``all work or service 
which is exacted from any person under the menace of any penalty for 
its nonperformance and for which the worker does not offer himself 
voluntarily'' and includes forced or indentured child labor.
    The CBP regulations promulgated under the authority of 19 U.S.C. 
1307 are found at sections 12.42 through 12.45 of title 19, Code of 
Federal Regulations (CFR) (19 CFR 12.42-12.45). Among other things, 
these regulations allow persons outside of CBP to petition the 
Commissioner of CBP to investigate whether a certain ``class of 
merchandise . . . is being, or is likely to be, imported into the 
United States [in violation of 19 U.S.C. 1307].'' 19 CFR 12.42(a)-(d). 
CBP also has the authority to self-initiate an investigation. If the 
Commissioner of CBP finds that the information available ``reasonably 
but not conclusively indicates that merchandise within the purview of 
section 307 is being, or is likely to be, imported,'' the Commissioner 
will order port directors to ``withhold release of any such merchandise 
pending [further] instructions.'' 19 CFR 12.42(e). After issuance of a 
withhold release order, the covered merchandise will be detained by CBP 
for an admissibility determination and excluded unless the importer 
demonstrates that the merchandise was not made using forced labor. The 
importer may also export the merchandise.
    These regulations also set forth the procedure for the Commissioner 
of CBP to issue a Finding when it is determined that the merchandise is 
subject to the provisions of 19 U.S.C. 1307. Pursuant to 19 CFR 
12.42(f), if the Commissioner of CBP finds that merchandise within the 
purview of 19 U.S.C. 1307 is being, or is likely to be, imported into 
the United States, the Commissioner of CBP will, with the approval of 
the Secretary of the Department of Homeland Security (DHS), publish a 
Finding to that effect in the Customs Bulletin and in the Federal 
Register.\1\ Under the authority of 19 CFR 12.44(b), CBP may seize and 
forfeit imported merchandise covered by a Finding.
---------------------------------------------------------------------------

    \1\ Although the regulation states that the Secretary of the 
Treasury must approve the issuance of a Finding, the Secretary of 
the Treasury delegated this authority to the Secretary of Homeland 
Security in Treasury Order No. 100-16 (68 FR 28322). In Delegation 
Order 7010.3, Section II.A.3, the Secretary of Homeland Security 
delegated the authority to issue a Finding to the Commissioner of 
CBP, with the approval of the Secretary of Homeland Security. The 
Commissioner of CBP, in turn, delegated the authority to make a 
Finding regarding prohibited goods under 19 U.S.C. 1307 to the 
Executive Assistant Commissioner, Office of Trade.
---------------------------------------------------------------------------

    On May 20, 2016, CBP issued a withhold release order on ``stevia 
extracts and derivatives'' believed to be processed by forced or 
convict labor in the People's Republic of China by the Inner Mongolia 
Hengzheng Group Baoanzhao Agriculture, Industry, and Trade Co., Ltd. 
Through its investigation, CBP has determined that there is sufficient 
evidence to support the finding that Baoanzhao is a prison/forced labor 
facility and that stevia extracts and derivatives mined, produced, or 
manufactured by Baoanzhao are likely being imported into the United 
States.

II. Finding

A. General

    Pursuant to 19 U.S.C. 1307 and 19 CFR 12.42(f), it is hereby 
determined that certain articles described in paragraph II.B., that are 
mined, produced or manufactured in whole or in part with the use of 
convict, forced, or indentured labor by the Inner Mongolia Hengzheng 
Group Baoanzhao Agriculture, Industry, and Trade Co., Ltd. in the 
People's Republic of China, are being, or are likely to be, imported 
into the United States. Based upon this determination, the port 
director may seize the covered merchandise for violation of 19 U.S.C. 
1307 and commence forfeiture proceedings pursuant to 19 CFR part 162, 
subpart E.

B. Articles and Entities Covered by This Finding

    This Finding covers stevia leaf (Stevia rebaudiana) extracts, or 
glycosides classified under subheading 2938.90.0000, Harmonized Tariff 
Schedule of the United States (HTSUS), that are mined, produced or 
manufactured wholly or in part by the Inner Mongolia Hengzheng Group 
Baoanzhao Agriculture, Industry, and Trade Co., Ltd. in the People's 
Republic of China. This entity is also known by the following names: 
The Inner Mongolia Hengzheng Group Baoanzhao Agriculture and Trade Co., 
Ltd.; the Inner Mongolia Autonomous Region Prison Administration Bureau 
Baoanzhao Agriculture and Trade Co., Ltd.; and the Baoanzhao Prison 
Farm.
    The Acting Secretary of Homeland Security has reviewed and approved 
this Finding.

    Dated: October 14, 2020.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2020-23123 Filed 10-19-20; 8:45 am]
BILLING CODE 9111-14-P