Why this list is the most important list for sourcing processionals?
We are referring to List of Goods Produced by Forced Labor or Child Labor released annually by the U.S. Department of Labor.
Now what does this list contains and why all of sudden hype around this?
The Trade Facilitation and Trade Enforcement Act of 2015, recently signed by President Obama, officially bans importation of goods resulting from forced labor, fundamentally changing the U.S. stance on the matter in international trade to zero tolerance.
According to this act, all goods imported by US, if involves child labor or forced labor practices tagged to it can be seized by Custom and Border Protection Agency.
This if not viewed by buyers with utmost seriousness can cause implications at revenue level. Millions and billions would be at stakes if this regulation is not abided. Not to forget the reputation of the company which goes down the sink hole by not abiding by child labor or forced labor norms.
Need of the hour is to understand your supply chain till tier 2 or tier 3 level, identify your dependency on feedstock that might fall under the purview of this mayhem, run audits on your supplier, understand their manufacturing practices, give them time for abiding compliance norms, and if they are not able to do so; switch them.
This brings us to “The List”, we were referring earlier. Sourcing processionals must always keep a tab of this list.
It contains over 350 goods from over 77 countries tied to child labor.
The sooner you know about your products tied to child labor or forced labor issues the better strategy you can formulate to counter the upcoming hurdles.
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