Loophole In Tariff Act Closed: Will Evolving Regulations In Modern Day Slavery Affect Your Company?

Until yesterday, a low supply of domestically produced goods has led the US to overlook a key part of the Tariff Act of 1930. According to Bloomberg Business, the new vote passed in the senate yesterday, closed the “loophole” in the Tariff Act that forbids goods from entering the country if they are associated with forced labor or slavery.  The article goes on to explain that the US Government has turned a blind eye to imported goods fueled by unfair labor practices because domestic supply of these goods could not meet the US demand.  

To put this into perspective, Kenneth Kennedy, a senior policy advisor at the Immigration Customs Enforcement (ICE) gives the example of cocoa produced in Western Africa.  He explains, “If we know cocoa is being produced on plantations in West Africa using slave labor and then being imported into the US, we still have to allow it in because the US cannot produce enough cocoa to meet the US demand.”  

The close of this “loophole,” shines light on an issue that is already in the spotlight. The California Transparency in Supply Chains Act (SB-657), and the UK Modern Day Slavery Act are two examples of recent efforts to regulate and eliminate slavery within supply chains.  If you would like to learn more about the recent evolution of anti slavery regulations, or believe your company may be affected by Modern Day Slavery, click here to get access to a free webinar on Modern Day Slavery.