China Update: House Passes Uyghur Legislation
The House of Representatives passed legislation this week in response to serious human rights allegations against China involving its minority Uyghur population. The House will likely vote on additional legislation on this issue next week. Both bills would directly impact U.S. companies.

The Uyghur Forced Labor Prevention Act (H.R. 6210): PASSED HOUSE. This legislation would require companies to provide clear and convincing evidence that any product imported from the Xinjiang Autonomous Region is not made with forced labor. Without such evidence, the imports would be banned under the forced labor statute (USC § 1307). This would create a “rebuttable presumption” that any good made in this region or made by persons working with the government for purposes of “poverty elimination” or “pairing assistance” is not entitled to entry. The House passed the bill Tuesday by an overwhelming vote of 406 to 3, and it heads to the Senate where the author of the companion bill, Senator Marco Rubio (R-FL), will work to advance it. More on the bill here.
The Uyghur Forced Labor Disclosure Act (H.R. 6270): VOTE PENDING. This legislation would require publicly traded companies importing from the Xinjiang Autonomous Region to disclosure information about their supply chains. This would apply to manufactured goods imported from this region, including textiles and shoes, as well as materials sourced from the region. When it was introduced, the bill’s author Rep. Jennifer Wexton (D-VA) said, “Once consumers see that the products we use every day – from the shoes we wear to the phones we text on – have been tainted by forced labor, I believe American companies will do the right thing and rethink their supply chains.” The House will likely consider the bill next week. You can view more on the bill here.

In order for either bill to become law, the Senate will also have to pass it and the President sign it. FDRA will keep you updated on this important issue.
Footwear Trade Action in D.C. This Week
It has been a busy week in D.C. when it comes to international trade policy. Here are a few quick updates: 

XPCC Sanctions: The Treasury Department announced an extension of the deadline for U.S. companies to end transactions with subsidiaries of the Xinjiang Production and Construction Corps (XPCC) in compliance with recent sanctions. The new deadline is November 30th. FDRA joined a number of associations in a letter urging the Administration to extend the deadline to give companies time to complete the necessary due diligence. Companies conducting due diligence have significant challenges since XPCC may have tens of thousands of subsidiaries according to some press reports. 
Haiti Trade Preference Extension (H.R. 991): The House also voted this week to extend duty-free treatment for goods made with U.S. textiles in Haiti and other Caribbean countries. This trade-preference program (Caribbean Basin Economic Recovery Act) is set to expire at the end of the month, and the bill would extend the program through September 30, 2030. It now heads to the Senate. 
Withhold Release Orders (WROs): Earlier this month, the Administration announced five new WROs targeting specific Chinese manufacturers for allegations of forced labor, including one apparel manufacturer and one cotton manufacturer. The Administration did not issue a broad WRO applying to all cotton or apparel from the Xinjiang region, but it could still issue such an order at a later date. If there is a suspected WRO violation, U.S. Customs and Border Protection (CBP) will detain the import unless a company can prove it is not violating the text of the order.
Lawsuit on List 3 Tariffs: There are now more than 2500 cases challenging the List 3 China tariffs ($200 billion in trade) imposed by the Administration in 2018. This follows a suit filed by HMTX Industries LLC this month that argues the Trump Administration went beyond its statutory authority in imposing the tariffs, resulting in an "unprecedented, unbounded, and unlimited trade war." Companies with products on List 4A, including footwear, have until August 2021 to take action.
Next FDRA Member Weekly Check-In Call Sept 29nd
FDRA will hold our next coronavirus call on Tuesday, September 29th at 2:00 p.m. EDT. This call is for FDRA Members only.

We have renamed the call the "FDRA Member Weekly Check-In Call" to cover the many footwear issues that have arisen over the past few months in addition to the ongoing coronavirus situation and the economic response.

We have also created a one-time call signup for the rest of the year. You can join via computer or phone, and please register for the one-time signup for weekly calls here if you have not already:
Past FDRA Member Weekly Check-In Call Recordings
FDRA Members can view past FDRA Member Weekly Check-In calls here: FDRA Intel Center (You need to register and create a password to access).
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