Fact Sheet: In Just Two Years, Forced Labor Enforcement Task Force and the Uyghur Forced Labor Prevention Act Have Significantly Enhanced Our Ability to Keep Forced Labor Out of U.S. Supply Chains - Department of Homeland Security
Ending forced labor is a moral, economic, and national security imperative. Keeping goods made with forced labor out of our supply chains promotes American values of free and fair trade, the rule of law, and respect for human dignity, and addresses unfair competition for compliant U.S. and international manufacturers.
DHS plays a critical role in combatting forced labor through the work of U.S. Customs and Border Protection (CBP) in enforcing laws that prohibit imports of goods made with forced labor. In its role as Chair of the interagency Forced Labor Enforcement Task Force (FLETF), DHS leads thirteen federal agencies leveraging their collective authorities, expertise and resources to address the global challenge of prohibiting the importation of goods mined, produced, or manufactured wholly or in part with forced labor. With the passage of the Uyghur Forced Labor Prevent Act (UFLPA), the FLETF was tasked with developing and implementing a multi-pronged strategy to prevent goods made in whole or in part with the forced labor of Uyghurs and other members of ethnic and religious minority groups from the Xinjiang Uyghur Autonomous Region (XUAR). In the two years since the June 2022 implementation of its enforcement mechanism, the rebuttable presumption that certain goods are produced with forced labor, the UFLPA has become a key part of U.S. efforts to eradicate forced labor and promote accountability for the ongoing genocide and crimes against humanity against Uyghurs and other religious and ethnic minority groups in the XUAR.
As a result of our enforcement efforts and robust partnerships with stakeholders, the trade community has responded by enhancing its due diligence programs to ensure compliance. The growing demand for compliant supply chains has impacted global sourcing strategies, resulting in greater innovation, growth and diversification among trusted trading partners, making our supply chains more resilient and sustainable.
Expanding and Enforcing the UFLPA Entity List
The UFLPA establishes a rebuttable presumption that the importation of any goods produced by an entity on the UFLPA Entity List is prohibited from importation into the United States. The FLETF has taken numerous steps to expand and enforce the UFLPA Entity List:
• Since implementation of the rebuttable presumption in June 2022, CBP has reviewed more than 9,000 shipments valued at over $3.4 billion, covering a broad range of products from apparel, automotive parts, chemicals, electronics, flooring, and solar panels.
• The UFLPA Entity List now includes 68 entities, 48 of which were added in the last 13 months. These entities represent a large number of industry sectors and are located in the XUAR and other provinces in China, demonstrating how far these illicit goods can reach into global supply chains. The list helps responsible industry partners avoid entities that benefit from forced labor.
• The FLETF has implemented an improved and streamlined process that builds on best practices to support expansion of the UFLPA Entity List, providing greater transparency for the trade community.
Impact of UFLPA Implementation and Enforcement
The UFLPA has led to actions intended to keep goods made with forced labor out of supply chains for a variety of U.S. sectors:
• Solar: In response to demands for solar supply chains untainted by forced labor, U.S. polysilicon producers have entered into more than $7 billion in long-term sales agreements with component manufacturers and invested more than $575 million in increased production capacity, according to U.S. producers. This increased capacity will allow the United States to reach our climate goals faster than was anticipated in 2022 before the UFLPA was implemented.
• Textiles and Apparel: More than 20% of the world’s cotton is grown in China. As a result of DHS’ focus on enforcement in apparel and cotton products, importers have shifted supply chains from the PRC to mitigate their risk. Apparel industry reports indicate that more than 95% of U.S. companies have actively enhanced their supply chain due diligence efforts with the use of technology and verification tools. With its new Textile Enforcement Plan, DHS is expanding its enforcement efforts to address risk of XUAR-sourced cotton in de minimis shipments and to protect the textile and apparel industries’ investments in clean Free Trade agreement supply chains.
• Automotive: There is widespread reporting of forced labor in automotive supply chains. Due to the UFLPA’s call to enhance efforts to exclude supplies with higher risks of forced labor, automakers are conducting more comprehensive due diligence, identifying and mitigating risk in their supply chains. Companies are taking proactive steps to ensure that goods brought into the United States are free from inputs that do not demonstrate an absence of forced labor from Xinjiang or produced by a named entity on the UFLPA Entity List.
• Polyvinyl Chloride (PVC) in Flooring: The XUAR produces 10% of the world’s PVC, the majority of which is used to manufacture vinyl flooring. U.S. imports of PVC products declined by 48% in the last 12 months as U.S. importers shifted away from suppliers that utilized XUAR-sourced PVC in certain flooring products. Industry reports acknowledge these shifts away from PRC supply chains and have resulted in new and expanded PVC and flooring production capacities in the United States, Mexico, India and Vietnam.
Updates to the UFLPA Strategy
The UFLPA Strategy outlines a multi-pronged approach to combatting forced labor in global supply chains. This year’s updates outline how the FLETF has significantly advanced our objectives through several initiatives:
• Strong Enforcement by U.S Customs and Border Protection ensures that goods made in whole or in part with forced labor are prohibited from the U.S. market, holding companies that use or facilitate these human rights abuses accountable. CBP is tasked with enforcement of the UFLPA’s rebuttable presumption, which prohibits goods from being imported into the United States that are either produced in whole or in part in the XUAR or produced by entities identified on the UFLPA Entity List, unless the importer can prove, by clear and convincing evidence, that the goods were not produced with forced labor. CBP’s enforcement has been strong and surgical – targeting high-risk shipments while facilitating legitimate trade and keeping the American economy flowing. Since implementation of the enforcement mechanism in June 2022, CBP has reviewed more than 9,000 shipments valued at over $3.4 billion, covering a broad range of products from apparel, automotive parts, chemicals, electronics, flooring, and solar panels.
• Expansion of the UFLPA Entity List provides responsible business with information to keep tainted goods from U.S. supply chains. The UFLPA Entity List now includes 68 entities, 48 of which were added in the last 13 months. These entities represent a large number of industry sectors – ranging from agriculture, batteries, electronics, food additives, household appliances, nonferrous metals, plastics and textiles - and are located in the XUAR and other provinces in China, demonstrating how far these illicit goods can reach into global supply chains. The FLETF has implemented an improved and streamlined process that builds on best practices to support- expansion of the UFLPA Entity List, providing greater transparency for the trade community.
• Designating New High Priority Sectors for Enforcement allows importers to focus due diligence on supply chains that intersect with these sectors and empowers U.S. agencies to consider additional enforcement actions. Congress and the FLETF originally identified apparel, cotton and cotton products, silica-based products including polysilicon and tomatoes and downstream products as high priority sectors for enforcement. With this year’s updates, the FLETF is identifying new high priority sectors - aluminum, polyvinyl chloride (PVC) and seafood - involving a higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from the XUAR. The FLETF has already included entities in these sectors on the UFLPA Entity List and will continue to prioritize review for additional entities in these sectors. In addition, entities in these sectors will be prioritized for review by the FLETF for a variety of other enforcement actions, including export limitations, economic sanctions, and visa restrictions, to curtail the economic incentives to participate in or facilitate human rights abuses, including forced labor.
• Greater Collaboration with Stakeholders strengthens enforcement and supports compliance. One of the hallmarks of the UFLPA Strategy is the recognition that stakeholders from the private sector, nongovernmental organizations, and our international partners all have an integral role in the “whole of society” response to the challenge of forced labor goods in global supply chains. With established partnerships with industry and civil society, the FLETF is leveraging these relationships to build awareness of the risks of forced labor and expand our collective knowledge of best practices to identify and isolate bad actors. DHS and the FLETF are actively engaging with our like-minded international partners, including Canada, the EU, Japan, and Mexico, as they develop their own approaches and enforcement regimes to keep goods made with forced labor from legitimate markets.
DHS and the FLETF remain dedicated to ensuring the United States is doing its part in promoting human rights, upholding fair labor standards, and allowing American workers and manufacturers a fair and equal playing field in the global marketplace. Forced labor schemes and practices undermine the global trading system and our national security, and the United States will remain diligent in standing up against these human rights abuses.
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Forced Labor Enforcement Task Force Adds Aluminum, PVC, and Seafood as New High Priority Sectors for Enforcement of Uyghur Forced Labor Prevention Act - Department of Homeland Security
WASHINGTON – Today (7/9/24), the Department of Homeland Security (DHS), as chair of the Forced Labor Enforcement Task Force (FLETF), released an updated Uyghur Forced Labor Prevention Act (UFLPA) Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China (PRC). This strategy builds on two years of the Administration’s enforcement of the UFLPA in addition to DHS’s longstanding efforts to remove forced labor from U.S. supply chains and support responsible businesses and industries that uphold human rights protections and support fair competition.
Notably in this year’s strategy, the FLETF has identified new high priority sectors for enforcement – aluminum, polyvinyl chloride (PVC), and seafood – for the first time since 2022. These industries were identified due to higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from the Xinjiang Uyghur Autonomous Region (XUAR). The FLETF continues to designate apparel, cotton and cotton products, silica-based products including polysilicon, and tomatoes and downstream products as high priority sectors.
“Forced labor is a form of modern slavery, and the Department of Homeland Security is committed to eradicating it from our supply chains,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The updated Uyghur Forced Labor Prevention Act Strategy and new high-priority sectors for enforcement announced today reflect the evolving and expanding scope of those who seek to circumvent the law and profit off the exploitation of abused people. Our department will continue to work closely with our partners in government, and with stakeholders across industry and civil society, to lead U.S. efforts to end forced labor by enforcing customs laws, supporting economic fairness, and safeguarding the human rights of all.”
Originally published in June 2022, the UFLPA Strategy outlines a multi-pronged approach to combating forced labor in global supply chains. This year’s updates outline how the FLETF has significantly advanced our objectives through several initiatives, including strong enforcement by U.S. Customs and Border Protection (CBP); expansion of the UFLPA Entity List; new high priority sectors for enforcement; and greater collaboration with stakeholders. The updated Strategy comes after DHS recently added three new entities to the UFLPA Entity List, bringing the total number of PRC-based companies whose goods are restricted from entering the United States to 68. The DHS fact sheet released today details the impact of our forced labor enforcement efforts and highlights updates in the latest UFLPA Strategy.
With the designation of new high priority sectors for enforcement, entities in these sectors will be prioritized for review by the FLETF for a variety of enforcement actions: inclusion on the UFLPA Entity List, export limitations, economic sanctions, and visa restrictions. The FLETF will undertake these enforcement actions to curtail the economic incentives to participate in or facilitate human rights abuses, including forced labor. Identifying high priority sectors also allows importers to focus their due diligence efforts on supply chains that intersect with these sectors, supporting compliance and keeping goods from forced labor out of U.S. markets.
“We are committed to expanding our enforcement of the UFLPA to keep goods made with forced labor out of U.S. markets,” said Robert Silvers, Under Secretary for Policy and Chair of the Forced Labor Enforcement Task Force. “This will happen through designation of more companies to the UFLPA Entity List, enforcement by CBP at our ports, focus on additional industry sectors, and continued engagement with industry and civil society.”
“Two years into the implementation of UFLPA, CBP and DHS efforts are making an impact against the scourge of forced labor. Businesses are shifting behavior to ensure their supply chains are free of goods made with forced labor, which protects workers and strengthens our nation’s economic security,” said Troy A. Miller, CBP Senior Official Performing the Duties of the Commissioner. “Thus far, CBP has denied entry to nearly 3,500 such shipments valued at over $695 million. Our enforcement efforts will continue, as will our engagement with our key stakeholders to reinforce the shared imperative of this work.”
The Strategy furthers the memorandum President Biden signed in November 2023 on advancing worker empowerment, rights, and high labor standards globally. The memorandum represents the first whole-of-government approach to advance workers’ rights by directing departments and agencies to elevate labor rights in their work abroad, which includes DHS’ work implementing the UFLPA.
Forced labor undermines the global trading system and our national security. DHS and the FLETF remain dedicated to ensuring the United States is doing its part in upholding fair labor standards and supporting American workers and manufacturers with a fair and equal playing field in the global marketplace. The United States will remain diligent in standing up against these human rights abuses. The FLETF will continue to collaborate with stakeholders from the trade community, civil society, labor organizations and our international partners to ensure the use of forced labor is eradicated from U.S. and international supply chains.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Raw Honey from Argentina: Preliminary Results and Rescission, in Part, of Antidumping Duty Administrative Review; 2021-2023
• Investigations; Determinations, Modifications, and Rulings, etc.: Disposable Aluminum Containers, Pans, Trays, and Lids from China Determinations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Quartz Surface Products from India: Preliminary Results and Rescission, in Part, of Antidumping Duty Administrative Review; 2022-2023
• Chlorinated Isocyanurates from Spain: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Certain Collated Steel Staples from the People's Republic of China: Final Determination of No Shipments in the 2022-2023 Antidumping Duty Administrative Review
• Certain Pasta from Italy and the Republic of Türkiye: Final Results of the Expedited Fifth Sunset Reviews of the Countervailing Duty Orders
• Certain Pasta from Italy and the Republic of Türkiye: Final Results of the Expedited Fifth Sunset Reviews of the Countervailing Duty Orders
• Chlorinated Isocyanurates from the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Raw Honey from India: Preliminary Results of Antidumping Duty Administrative Review and Preliminary Partial Rescission of Antidumping Duty Administrative Review; 2021-2023
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Ferrosilicon from Brazil, Kazakhstan, Malaysia, and Russia; Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Memory Devices and Electronic Devices Containing the Same; Notice of Institution of Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Prestressed Concrete Steel Wire Strand from Malaysia: Preliminary Results and Preliminary Partial Rescission of Antidumping Duty Administrative Review; 2022-2023
• Certain High Chrome Cast Iron Grinding Media from India: Postponement of Preliminary Determination in the Countervailing Duty Investigation
• Notice of Scope Ruling Applications Filed in Antidumping and Countervailing Duty Proceedings
• Utility Scale Wind Towers from Malaysia: Final Results of Antidumping Duty Administrative Review; 2021-2022
• Investigations; Determinations, Modifications, and Rulings, etc.: Paper Shopping Bags from Cambodia, China, Colombia, India, Malaysia, Portugal, Taiwan, and Vietnam
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Antidumping Duty Order on Hydrofluorocarbon Blends from the People's Republic of China: Final Affirmative Determination of Circumvention with Respect to R-410B, R-407G, and a Certain Custom Blend from the People's Republic of China
• Mattresses From Bosnia and Herzegovina, Bulgaria, Burma, Italy, the Philippines, Poland, Slovenia, and Taiwan: Antidumping Duty Orders
• Antidumping Duty Order on Hydrofluorocarbon Blends from the People's Republic of China: Final Affirmative Determination of Circumvention with Respect to R-410A From the Republic of Türkiye
• Antidumping Duty Order on Hydrofluorocarbon Blends from the People's Republic of China: Final Affirmative Determination of Circumvention with Respect to R-410B From the Republic of Türkiye
• Certain Pasta from Italy and Türkiye: Final Results of Expedited Fifth Sunset Reviews of the Antidumping Duty Orders
• Investigations; Determinations, Modifications, and Rulings, etc.: Plastic Decorative Ribbon from China; Scheduling of Expedited Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Circular Welded Carbon-Quality Steel Pipe from the United Arab Emirates: Final Results of Antidumping Duty Administrative Review; 2021-2022
• Carbon and Alloy Steel Threaded Rod from the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2022
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Notice of Korea's Completion of Applicable Procedures to Give Effect to a Modification to the Rules of Origin of the U.S.-Korea Free Trade Agreement and Announcement of Effective Date - Federal Register
AGENCY: Office of the United States Trade Representative.
ACTION: Notice.
SUMMARY: In June 2020, the President proclaimed a modification to the rules of origin for certain Korean woven fabrics under the United States-Korea Free Trade Agreement (KORUS) and specified that the modification would go into effect the first day of the month following the date on which the U.S. Trade Representative published a notice that Korea has completed its applicable procedures to give effect to a corresponding modification to its rules of origin to be applied to goods of the United States. Korea notified the United States that it had completed its applicable procedures on April 19, 2024. Accordingly, this notice announces the effective date for that modification.
DATES: The modification to the rules of origin are applicable as of August 1, 2024.
FOR FURTHER INFORMATION CONTACT: Scott Pietan, Deputy Assistant U.S. Trade Representative for Korea, at 202-395-9646 or scott_pietan@ustr.eop.gov.
SUPPLEMENTARY INFORMATION:
The United States entered into KORUS on June 30, 2007. Congress approved KORUS in section 101(a) of the United States-Korea Free Trade Agreement Implementation Act (Pub. L. 112-41, 125 Stat. 428) (KORUS Implementation Act or Act). Section 202 of the KORUS Implementation Act provides rules for determining whether goods imported into the United States originate in the territory of a KORUS party and thus are eligible for the tariff and other treatment contemplated under the KORUS. Section 202 of the Act also authorizes the President to proclaim, as a part of the Harmonized Tariff Schedule of the United States (HTSUS), the rules of origin set out in the KORUS, and to modify previously proclaimed rules of origin, subject to the consultation and layover requirements of section 104 of the Act. Presidential Proclamation 8783 of March 6, 2012 (77 FR 14265) proclaimed the tariff modifications and rules of origin necessary or appropriate to carry out the KORUS in the HTSUS.
In 2018, the Government of Korea submitted requests to modify certain textile rules of origin based on commercial availability of specific inputs. Following public comment on the proposed rules changes (83 FR 52418, October 17, 2018), the United States and Korea reached agreement to modify the rule of origin concerning certain woven fabrics of HTSUS heading 5408. Pursuant to the KORUS Implementation Act, the U.S. International Trade Commission (USITC) conducted an economic impact review and concluded that the impact on U.S. imports, exports and production of the proposed modifications would be negligible.
See USITC Pub. 4917: https://www.usitc.gov/publications/tariff_affairs/pub4917.pdf.
The Industry Trade Advisory Committee on Textiles and Clothing did not object to the proposed modifications. Congress also did not object during the consultation and layover process.
In Proclamation 10053 of June 29, 2020 (85 FR 39821, July 1, 2020), the President determined that it was necessary to modify the HTSUS in order to reflect the agreement between the United States and Korea related to the KORUS rules of origin and proclaimed a modification to the HTSUS as set forth in Annex VI of USITC Publication 5060— https://www.usitc.gov/publications/tariff_affairs/pub5060.pdf.
Pursuant to Annex VI, this modification is effective the first day of the month following the date on which the U.S. Trade Representative publishes a notice that Korea has completed its applicable procedures to give effect to a corresponding modification to be applied to goods of the United States.
On April 19, 2024, Korea notified the United States that it had completed its applicable domestic procedures to give effect to a corresponding modification to the KORUS rules of origin for certain fabrics of heading 5408 with respect to goods of the United States. Pursuant to Presidential Proclamation 10053 this change takes effect August 1, 2024.
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CBP Officers Intercept Nearly $1 Million in Methamphetamine at Calexico East Commercial Facility - U.S. Customs & Border Protection
CALEXICO, Calif., — CBP officers assigned to the Calexico East Commercial Facility intercepted a total of 515.74 pounds of methamphetamine concealed within wooden furniture cabinets last week.
On July 3, at approximately 1:00 p.m., CBP officers encountered a 29-year-old male driving a box truck transporting a shipment manifested as wooden furniture. The man was applying for admission into the United States from Mexico. The driver, a valid visa holder, was referred to secondary along with the box truck for further examination.
During secondary inspection, non-intrusive scanning technology was utilized to perform a thorough scan of the truck. Irregularities in the furniture were detected. A cursory inspection was conducted which led to the discovery of false cabinet compartments.
CBP officers examined the false compartments to discover and extract a total of 49 packages concealed within. The packages were consistent with the packaging of illicit narcotics and tested positive for methamphetamine. The estimated street value of the drugs is $928,000.00.
“I am extremely proud of our officers’ relentless efforts to protect our nation’s borders, even during blazing temperatures,” stated Roque
Caza, Port Director for the Area Port of Calexico. “Their tenacity to remain vigilant and prevent dangerous drugs from reaching our communities encapsulates their remarkable dedication and commitment to duty.” CBP officers seized the narcotics and box truck while the driver was turned over to the custody of Homeland Security Investigations for further investigation.
This seizure is the result of Operation Apollo, a holistic counter-fentanyl effort that began on October 26, 2023, in southern California, and expanded to Arizona on April 10, 2024. Operation Apollo focuses on intelligence collection and partnerships, and utilizes local CBP field assets augmented by federal, state, local, tribal, and territorial partners to boost resources, increase collaboration, and target the smuggling of fentanyl into the United States.
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Increased Imports of Fine Denier Polyester Staple Fiber Injure U.S. Industry, USITC Determines - US International Trade Commission
The U.S. International Trade Commission (USITC) today determined that fine denier polyester staple fiber (PSF) is being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry producing an article like or directly competitive with the imported article.
The determination was made in the context of an investigation initiated on February 28, 2024, under section 202 of the Trade Act of 1974 (19 U.S.C. § 2252) in response to a petition filed by
Fiber Industries LLC d/b/a Darling Fibers, Nan Ya Plastics Corp, America, and Sun Fiber LLC. Information about this investigation and global safeguard investigations is available in the factsheet.
The Commission’s determination resulted from a 4-0 vote. Chair Amy K. Karpel and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Jason E. Kearns vote in the affirmative.
As a result of today’s vote, the Commission will proceed to the remedy phase of the investigation. The Commission will hold a public hearing on remedy on July 23, 2024. The Commission will submit its report containing its injury determination, remedy recommendations, certain additional findings, and the basis for them to the President by August 26, 2024.
When the Commission makes an affirmative injury determination in a global safeguard investigation, it is required to make certain additional findings under the statutes implementing certain free trade agreements.
Pursuant to these statutes, the Commission finds that imports of fine denier PSF from neither Canada nor Mexico account for a substantial share of total imports. It also finds that imports of fine denier PSF from each other free trade agreement partner country, individually, are not a substantial cause of serious injury or threat thereof.
These findings will be forwarded to the President as part of the Commission’s report.
The President, not the Commission, will make the final decision concerning whether to provide relief to the U.S. industry and the kind of relief to provide, including with respect to imports from FTA countries.
A public report concerning the investigation will be available after the Commission submits its findings and recommendations to the President; when available, it may be accessed on the USITC website at the Commission’s Publications Library. Status of proceedings, links to relevant documents, and additional information for this investigation can be found at the Commission’s Investigations Database System (IDS). |
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FMC Designates Korea-Based Container Company a Controlled Carrier - Federal Maritime Commission
The Federal Maritime Commission today classified Hyundai Merchant Marine (HMM) as a controlled carrier of the Government of the Republic of Korea and added it to the agency’s Controlled Carrier List.
Controlled Carriers are ocean common carriers operating in the U.S.-foreign trades that are, or whose operating assets are, directly or indirectly owned or controlled by a foreign government. Controlled Carriers are subject to enhanced regulatory oversight by the Commission unless a treaty exists between the United States and the Controlled Carrier’s host nation. A Treaty of Friendship, Commerce and Navigation, signed in 1957 between the United States and the Republic of Korea, entitles HMM to the exception at 46 U.S.C. 40706(1), which exempts it from the requirements of Title 46, Chapter 407. However, HMM remains subject to the provisions of 46 U.S.C. 40502(f) and 46 U.S.C. 46106(b)(7).
The Controlled Carrier List is not a comprehensive list of all foreign-owned, foreign-controlled, or government linked companies and assets. It is a list of companies meeting statutory requirements found at 46 U.S.C. Chapter 407. Commission regulations related to Controlled Carriers are found at 46 C.F.R. 565.