What's Happening?
U.S. Customs and Border Protection (CBP) has issued a Withhold Release Order (WRO) against Linglong International Europe D.O.O. Zrenjanin, a Serbian tire manufacturer, due to evidence of forced labor in their
production processes. Effective immediately, CBP will detain shipments of these tires at all U.S. ports of entry. This action is part of CBP's ongoing efforts to prevent goods made with forced labor from entering the U.S. market, as mandated by 19 U.S.C. § 1307. The decision follows a comprehensive investigation by CBP, which included analysis of worker statements, photographs, employment contracts, and reports from non-governmental organizations. The investigation identified nine indicators of forced labor, such as retention of identity documents, intimidation, excessive overtime, and abusive working conditions. This WRO is the fifth issued in 2025 and the second in Fiscal Year 2026, underscoring CBP's commitment to combating forced labor in global supply chains.
Why It's Important?
The enforcement of this WRO by CBP is significant as it highlights the U.S. government's stance against forced labor and its impact on international trade. By detaining goods produced under such conditions, CBP aims to ensure that American workers and businesses are not unfairly disadvantaged by competing with products made through exploitation. This action also serves as a warning to other companies that the U.S. will not tolerate forced labor in its supply chains. The decision could have broader implications for international trade relations, particularly with countries where forced labor practices are prevalent. It also emphasizes the importance of ethical sourcing and compliance with labor standards for companies looking to do business in the U.S.
What's Next?
Importers of the detained shipments have the option to either destroy or export the goods, or they can attempt to prove that the merchandise was not produced with forced labor. CBP will continue to monitor and enforce compliance with labor standards, and it encourages individuals and organizations to report any suspicions of forced labor through its e-Allegations Online Trade Violations Reporting System. This ongoing vigilance is likely to lead to further actions against companies found to be violating labor laws, potentially affecting their ability to access the U.S. market.
