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Häkely & HSSUUIATES
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If the consultations fail to produce adequate and effective protection of intellectual property rights, the Administration will take retaliatory action.
co Textile Transhipments
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The U.9. Customs Service has been vigilant in documenting cases of Chinese textile transhipments over the past year.
In August 1990, USTR held consultations with Chinese authorities on the transhipment issue. Additional consultations took place in November 1990, March 1991, and May 1991.
The U.S. Government "charged" China's quotas for goods that were sent to the United States under false country of origin declarations valued at over $85 million.
China has begun to take actions to curtail textile fraud since the December charges were made. For example, it issued regulations prohibiting reexports through a third country to countries that have signed textile agreements with China. Further, the Chinese Government has issued provisions for the punishment of those who violate the regulations.
The Administration has prepared more charges valued at about $14 million that we anticipate will be levied after consultations with China next month.
The Administration will increase the number of U.S. Customs officials dedicated to investigating circumvention.
If transhipment persists, we will be prepared to take additional action against China.
On Forced Labor
The importation of goods produced with forced, convict or indentured labor is prohibited by 19 USC Section 1307, which also directs the Secretary of the Treasury to prescribe regulations for enforcement of the provision. The Secretary of the Treasury, under 19 CFR Section 12.42, has delegated to the Commissioner of Customs, authority to determine that a class of goods is the product of forced labor and exclude those goods.
Customs has been investigating imports alleged to be the product of forced labor in China. Customs has interviewed emigres about forced labor practices in China. Customs is also analyzing import samples to determine if they match the descriptions provided by the emigres and others. Additional special agents hav
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