The International Labor Organization (ILO) estimates that as of 2016, nearly 25 million adults and children worked in forced labor, also known as labor trafficking. Section 307 of the Tariff Act of 1930 (19 U.S.C. §1307) prohibits U.S. imports of any product that was mined, produced, or manufactured wholly or in part by forced labor, including forced or indentured child labor.

Amid concerns in recent decades over the statute’s lack of use and increasing interest in combatting human trafficking, Congress amended Section 307 in 2015 to make it easier to block the entry of products of forced labor by removing the “consumptive demand” exception. This exception had permitted imports of goods that were not domestically produced in such quantities as to meet U.S. consumption needs. Since 2016, enforcement of Section 307 has increased in frequency and scope, and to date U.S. Customs and Border Protection (CBP) has issued nearly 30 “withhold release orders” (WROs), which bar entry of certain goods made by forced labor. While WROs were typically limited to specific manufacturers and producers, CBP recently has issued broader industry- and countrywide orders. WROs are one of several congressionally mandated forced labor and anti-human trafficking measures. In addition, various international conventions and guidelines address forced labor and supply chains, including those produced by the United Nations and the International Labor Organization (ILO), which have informed and worked in tandem with U.S. approaches.

Stakeholders welcomed congressional action to repeal the consumptive demand exception as a critical step toward improving utilization of Section 307. Enforcement of the provision has faced challenges, however, and nongovernmental organizations (NGOs), research institutes, and the media have documented a number of U.S. companies and global brands implicated, directly or indirectly, by forced labor in their supply chains. The U.S. Department of Labor tracks more than 60 categories of goods produced with forced labor from more than 40 countries. While identifying high-risk sectors and countries in which forced labor occurs is not inherently difficult, tracing such practices to specific facilities can be very challenging, particularly given complex global supply chains, widespread subcontracting, and problems with effective third-party auditing.

Some Members of Congress have expressed interest in ensuring CBP actively applies Section 307. Some observers view recent enforcement actions as inadequate in eliminating U.S. imports of forced labor, and recommend greater clarity and guidance in CBP decisions and requirements, as well as allocation of greater resources. Other stakeholders emphasize the need to shift the burden of mitigating risk to manufacturers and importers, through due diligence measures and transparency in supplier relationships. Some advocate for greater use of broader enforcement actions against an entire industry, region or country, rather than targeting individual companies. In particular, some Members and stakeholders seek a regional enforcement approach to address forced labor practices in China, given deepening concerns over the widespread use of state-sponsored forced labor of Muslim minority groups in the Xinjiang Uyghur Autonomous Region, and China’s central role in global manufacturing. On the other hand, some industry groups caution about the spillover effects and compliance costs of broader enforcement, which could disrupt legitimate supply chains, burden companies, and further harm vulnerable workers. Practical challenges in enforcement, such as limited resources and tracing difficulties in supply chains are also key private sector concerns.

The Uyghur Forced Labor Prevention Act (H.R. 1155/S. 65) would create a rebuttable presumption provision that all goods produced or manufactured in Xinjiang are made with forced labor, and thus prohibited under Section 307. This and other bills also aim to improve disclosure and transparency of companies. In January 2020, Congress used passage of the U.S.-Mexico-Canada Agreement (P.L. 116-113) to bolster broader enforcement efforts related to Section 307 and interagency coordination.