What This Means for Your Business
On July 9th, the Department of Homeland Security (DHS) and the Forced Labor Enforcement Task Force (FLETF) announced their 2024 strategy updates to combat goods made with forced labor entering the U.S. New high-priority sectors—aluminum, PVC, and seafood—join the existing list that includes apparel, cotton, polysilicon products, and tomatoes. This move follows recent additions to the CBP's Entities List targeting companies in these sectors for alleged forced labor links.
The new strategy emphasizes the U.S. government's commitment to preventing forced labor goods from reaching the market and enhancing transparency in supply chains. Since the start of 2024, the Customs and Border Protection (CBP) has significantly increased detention rates, denying nearly 3,500 shipments worth over $695 million due to forced labor concerns. This marks a substantial increase compared to the previous year, driven by additional DHS funding and a presidential memorandum supporting worker rights and high labor standards globally.
For businesses in the aluminum, PVC, and seafood industries, this means a likely uptick in detentions and enforcement actions in the latter half of the year. It's crucial to recognize that CBP's scope isn't limited to identified high-priority sectors—any product made partially with forced labor can be targeted.
With bipartisan support in Congress, CBP's enforcement momentum is set to continue, regardless of the upcoming election.
Applications of Aluminum for Businesses
1. Automotive Industry: Aluminum is extensively used in the manufacturing of vehicles, including cars, trucks, and aircraft. It helps in reducing vehicle weight, improving fuel efficiency, and enhancing performance.
2. Construction and Infrastructure: Aluminum is a key material in building construction, used for windows, doors, roofing, and curtain walls due to its durability, corrosion resistance, and lightweight properties.
3. Aerospace and Defense: In aerospace, aluminum is essential for constructing aircraft frames, wings, and other critical components due to its high strength-to-weight ratio. It is also used in various defense applications.
4. Packaging Industry: Aluminum is widely used in packaging, including beverage cans, food containers, and foil. Its recyclability and barrier properties make it ideal for preserving product freshness and extending shelf life.
5. Electronics and Electrical: Aluminum is used in the production of electronic devices, including laptops, smartphones, and flat-screen TVs, as well as in electrical wiring and transmission lines.
Applications of PVC for Businesses
1. Construction and Building: PVC is extensively used in construction for pipes, fittings, windows, doors, flooring, and roofing membranes. Its durability, cost-effectiveness, and resistance to weathering make it a preferred material.
2. Healthcare Industry: PVC is used in medical devices such as IV bags, tubing, blood bags, and various surgical instruments. Its versatility, biocompatibility, and ease of sterilization are critical for medical applications.
3. Consumer Goods: PVC is found in a wide range of consumer products, including credit cards, vinyl records, and inflatable structures. Its flexibility and durability make it suitable for diverse applications.
4. Automotive Industry: PVC is used in car interiors, including dashboards, door panels, and seat coverings. It is also used for under-the-hood applications such as battery covers and cable insulation.
5. Electrical and Electronics: PVC is used for insulation of electrical cables and wires, providing protection and durability. It is also used in the manufacturing of electrical conduits and cable management systems.
In modern industrial processes and product development, there is widespread use of aluminum and PVC across various industries in US businesses.
Visibility into your supply chain is now more critical than ever. Learn how Zeus can help your business ensure compliance and enhance due diligence against forced labor. Contact us today to stay ahead in a changing regulatory landscape.
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