U.S. CBP to detain sporting goods merchandise reportedly produced with North Korean labor

Merchandise produced or manufactured by a Chinese sporting goods manufacturer will be detained at all U.S. ports of entry.

Produced with North Korean labor

U.S. Customs and Border Protection (CBP) today issued a release announcing that, effective March 14, 2022, merchandise produced or manufactured by a specific Chinese sporting goods company will be detained at all U.S. ports of entry.

According to the CBP release, the enforcement action is the result of a CBP investigation indicating that the sporting goods company uses North Korean labor in its supply chain.

Pursuant to the Countering America’s Adversaries Through Sanctions Act (CAATSA), CBP will detain the merchandise at all U.S. ports of entry. The merchandise will not be allowed entry unless the importer provides clear and convincing evidence that the merchandise was not produced with convict labor, forced labor, or indentured labor under penal sanctions within 30 days of notice of detention. If the company fails to provide clear and convincing evidence within this timeframe, the merchandise may be subject to seizure and forfeiture.

Background

The Countering America’s Adversaries Through Sanctions Act (CAATSA) prohibits the entry of goods, wares, and articles mined, produced, or manufactured wholly or in party by North Korean nationals or North Korean citizens anywhere in the world, unless clear and convincing evidence is provided that such goods were not made with forced labor. 
 

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Principal
T: 612-305-5533
E: jlibby@kpmg.com

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