DHS Places Additional PRC-Based Companies on the UFLPA Entity List - Department of Homeland Security
UFLPA Entity List Will Now Restrict Goods from 73 PRC-Based Companies from Entering the United States
WASHINGTON – Today (8/8/24), the U.S. Department of Homeland Security (DHS) announced the addition of five entities based in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, bringing the total entities listed to 73. These additions build on DHS’s commitment to eradicate forced labor and promote accountability for the PRC’s ongoing genocide and crimes against humanity against Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region (XUAR).
Effective August 9, 2024, U.S. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by Century Sunshine Group Holdings, Ltd., Kashgar, Construction Engineering (Group) Co.; Ltd., Rare Earth Magnesium Technology Group Holdings, Ltd.; Xinjiang Habahe Ashele Copper Co., Ltd., and Xinjiang Tengxiang Magnesium Products Co., Ltd. will be prohibited from entering the United States.
“As DHS identifies more entities across different sectors that use or facilitate forced labor, we act to keep their tainted goods out of our nation’s supply chains,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Today's announcement strengthens our enforcement of the Uyghur Forced Labor Prevention Act and helps responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country. We will continue to implement this law with full force in our efforts to fight the exploitation and abuse of the Uyghur people and other persecuted groups and protect a free and fair market.”
Including the five entities identified today, the FLETF – chaired by DHS and whose member agencies also include the Office of the U.S. Trade Representative and the U.S. Departments of Commerce, Justice, Labor, State, and the Treasury – has added 73 entities to the UFLPA Entity List since the UFLPA was signed into law in December 2021. The UFLPA Entity List includes companies that are active in the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, and food additives sectors, among others. Identifying these additional entities provides U.S. importers with more information to conduct due diligence and examine their supply chains for risks of forced labor to ensure compliance with the UFLPA.
“We have shown again through today’s enforcement actions that the United States is committed to keeping goods made with forced labor out of U.S. supply chains,” said DHS Under Secretary for Policy Robert Silvers, who serves as Chair of the FLETF. “Companies must conduct due diligence and know where their products are coming from. The Forced Labor Enforcement Task Force will continue to designate entities in a variety of sectors that meet the criteria for inclusion on the UFLPA Entity List, and U.S. Customs and Border Protection will continue its vigilant enforcement at our ports.”
The FLETF has reasonable cause to believe, based on specific and articulable information, that two entities meet the criteria for inclusion under Section 2(d)(2)(B)(ii) of the UFLPA by working with the government of the XUAR to recruit, transport, transfer, harbor or receive forced labor of Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR; two entities meet the criteria for inclusion under Section 2(d)2(B)(v) of the UFLPA, which identifies facilities and entities that source material from the XUAR or from persons working with the government of Xinjiang or the Xinjiang Production and Construction Corps for purposes of the “poverty alleviation” program or the “pairing-assistance” program or any other government labor scheme that uses forced labor; and one entity meets both criteria under Sections 2(d)(2)(B)(ii) and (v) of the UFLPA.
Xinjiang Habahe Ashele Copper Co., Ltd. is a company located in the XUAR that mines nonferrous metals, including zinc, copper and silver. Xinjiang Habahe Ashele Copper Co., Ltd. is a subsidiary of one of the world’s largest mining company, and produces approximately 10% of that company’s copper and silver. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Habahe Ashele Copper Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Habahe Ashele Copper Co., Ltd. works with the Habahe County government of the XUAR to recruit Kazakh workers through PRC labor programs to mine metals, such as zinc, copper, and silver in the XUAR . The FLETF therefore determined that the activities of Xinjiang Habahe Ashele Copper Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(ii).
Kashgar Construction Engineering (Group) Co., Ltd. is a company based in Kashgar, Xinjiang, China, that manufactures structural components and materials for construction, and is engaged in general construction, construction engineering and operations, and real estate development and operations. The United States Government has reasonable cause to believe, based on specific and articulable information, that Kashgar Construction Engineering (Group) Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Kashgar Construction Engineering (Group) Co., Ltd. has repeatedly participated in the transfer and recruitment of ethnic minorities from Xinjiang, including Uyghurs, through Jiashi County Xinjiang government labor programs. The FLETF therefore determined that the activities of Kashgar Construction Engineering (Group) Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(ii).
Century Sunshine Group Holdings, Ltd. is a company based in Hong Kong that manufactures magnesium fertilizer and magnesium alloys. The United States Government has reasonable cause to believe, based on specific and articulable information, that Century Sunshine Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Century Sunshine Group Holdings, Ltd. has established its magnesium production base in the XUAR through its vertically-integrated subsidiaries, and sources magnesium from the XUAR. The FLETF therefore determined that the activities of Century Sunshine Group Holdings, Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(v).
Rare Earth Magnesium Technology Group Holdings, Ltd. is a company based in Hong Kong that manufactures and sells magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Rare Earth Magnesium Technology Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Rare Earth Magnesium Technology Group Holdings, Ltd., a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates Century Sunshine Group Holdings, Ltd.’s magnesium product business, and sources magnesium from its magnesium production base located in the XUAR. The FLETF therefore determined that the activities of Rare Earth Magnesium Technology Group Holdings, Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(v).
Xinjiang Tengxiang Magnesium Products Co., Ltd. is a company based in Hami, Xinjiang, China, that manufactures magnesium and magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd. receives Uyghurs or members of other persecuted groups that the local Yizhou District government transfer from Xinjiang. The United States Government also has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. sources material, specifically the raw materials required to produce magnesium, such as coal and dolomite, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd., a wholly-owned subsidiary of Rare Earth Magnesium Technology Group Holdings, Ltd. and a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates a magnesium production facility in the XUAR and sources raw materials from the XUAR, including coal and dolomite, to produce magnesium. The FLETF therefore determined that the activities of Xinjiang Tengxiang Magnesium Products Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in sections 2(d)(2)(B)(ii) and 2(d)(2)(B)(v).
The bipartisan Uyghur Forced Labor Prevention Act, signed into law by President Joseph R. Biden, Jr., in December 2021, mandates that CBP apply a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the XUAR or produced by entities identified on the UFLPA Entity List are prohibited from importation into the United States unless the Commissioner of CBP determines, by clear and convincing evidence, that the goods were not produced with forced labor. CBP began enforcing the UFLPA in June 2022. Since then, CBP has reviewed over 9,000 shipments valued at more than $3.4 billion under the UFLPA. Additionally, Homeland Security Investigations, through the DHS Center for Countering Human Trafficking, conducts criminal investigations into those engaging in or otherwise knowingly benefitting from forced labor, and collaborates with international partners to seek justice for victims.
Today’s announcement supports President Biden’s Memorandum 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 federal agencies engaged abroad to advance international recognized labor rights, which includes DHS’s work implementing the UFLPA.
This expansion of the UFLPA Entity List reflects DHS’s prioritization of efforts to combat the introduction of forced labor into U.S. supply chains. This commitment is outlined in the Department’s recent Quadrennial Homeland Security Review, which added combating crimes of exploitation, including labor exploitation, as the newest and sixth DHS mission. Last month, DHS published updates to the UFLPA strategy, which outlines how the FLETF has significantly advanced our objectives through several initiatives including strong enforcement by CBP; expansion of the UFLPA Entity List; designating new high priority sectors for enforcement; and greater collaboration with stakeholders.
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Department of Commerce Final Decision in Review of the Non-Market Economy Status of Vietnam - U.S. Department of Commerce
Today (8/2/24), the U.S. Department of Commerce (Commerce) announced its determination that Vietnam will continue to be classified as a non-market economy (NME) country for purposes of calculating U.S. antidumping duties (ADs) on imports from Vietnam. This finding means that the methodology used in calculating U.S. antidumping duties on imports from Vietnam remains the same.
Public comment is a hallmark of Commerce’s trade remedy process. As part of this proceeding, Commerce received over 36,000 pages of comments from U.S. domestic industries as well as the Government of Vietnam. Commerce appreciates and commends U.S. domestic industries as well as Government of Vietnam’s extensive participation in Commerce’s transparent, quasi-judicial process. This determination was based on a thorough evaluation of all the comments submitted.
Commerce’s NME methodology is an important tool used to ensure that Commerce’s dumping calculations reflect economic realities in the market and that U.S. industries get the relief from unfair imports that they are entitled to under the law. Despite Vietnam’s substantive reforms made over the past 20 years, the extensive government involvement in Vietnam’s economy distorts Vietnamese prices and costs and ultimately render them unusable for the purpose of calculating U.S. antidumping duties. Commerce will continue to use market-based prices and costs from a country at a comparable level of economic development to Vietnam that produces comparable merchandise to calculate ADs.
This public decision can be found by referring to case number A-552-833 in Commerce’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS) at access.trade.gov.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Quartz Surface Products From the People's Republic of China: Preliminary Results of 2021-2023 Antidumping Duty and 2021-2022 Countervailing Duty Administrative Reviews
• Wooden Cabinets and Vanities and Components Thereof From the People's Republic of China: Final Scope Determination, Certification Requirements, and Recission of Circumvention Inquiries on the Antidumping and Countervailing Duty Orders; Correction
• Citric Acid and Certain Citrate Salts From Belgium, Colombia, and Thailand: Continuation of Antidumping Duty Orders
• Certain Uncoated Paper From Portugal: Final Results of the Administrative Review of the Antidumping Duty Order; 2022-2023
• Brass Rod From Israel: Final Affirmative Countervailing Duty Determination
• Investigations; Determinations, Modifications, and Rulings, etc.: Glass Wine Bottles From Chile, China, and Mexico; Revised Schedule for the Subject Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Aluminum Wire and Cable From the People's Republic of China: Preliminary Negative Scope Determinations With Respect to Cambodia, Korea, and Vietnam; Preliminary Affirmative Determinations of Circumvention With Respect to Korea and Vietnam; Preliminary Negative Determination of Circumvention With Respect to Cambodia
• Raw Honey From the Socialist Republic of Vietnam: Final Results of Antidumping Duty Changed Circumstances Review
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Mattresses From Italy: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances; Correction
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Cast Iron Soil Pipe From the People's Republic of China: Final Results of the Expedited First Sunset Review of the Antidumping Duty Order
• Oil Country Tubular Goods From Ukraine: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Cast Iron Soil Pipe From the People's Republic of China: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Forged Steel Fluid End Blocks From Germany: Final Results of the Countervailing Duty Administrative Review; 2022
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Steel Wheels From the People's Republic of China: Final Results of Expedited Sunset Review of the Antidumping Duty Order
• Circular Welded Carbon-Quality Steel Pipe From the Sultanate of Oman: Preliminary Results of Antidumping Duty Administrative Review; 2021-2022
• Certain Steel Wheels From the People's Republic of China: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Passenger Vehicle and Light Truck Tires From Thailand: Preliminary Results and Rescission, in Part, of Antidumping Duty Administrative Review; 2022-2023
• Mattresses From Bosnia and Herzegovina, Bulgaria, Burma, Italy, the Philippines, Poland, Slovenia, and Taiwan: Antidumping Duty Orders; Correction
• Passenger Vehicle and Light Truck Tires From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
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Proposed Revocation of One Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification of a Cheetah Plush Stuffed Pillow from China - USCBP
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
ACTION: Notice of proposed revocation of one ruling letter and proposed revocation of treatment relating to the tariff classification of cheetah Squishmallows®.
SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)), as amended by section 623 of title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises interested parties that U.S. Customs and Border Protection (CBP) intends to revocation one ruling letter concerning tariff classification of cheetah Squishmallows® under the Harmonized Tariff Schedule of the United States (HTSUS). Similarly, CBP intends to revoke any treatment previously accorded by CBP to substantially identical transactions. Comments on the correctness of the proposed actions are invited.
DATE: Comments must be received on or before September 1, 2024.
ADDRESS: Written comments are to be addressed to U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Attention: Shannon Stillwell Commercial and Trade Facilitation Division, 90 K St., NE, 10th Floor, Washington, DC 20229–1177. CBP is also allowing commenters to submit electronic comments to the following email address: 1625Comments@cbp.dhs. gov. All comments should reference the title of the proposed notice at issue and the Customs Bulletin volume, number and date of publication. Arrangements to inspect submitted comments should be made in advance by calling Ms. Shannon Stillwell at (202) 325–0739.
FOR FURTHER INFORMATION CONTACT: Nicholas Horne, Chemicals, Petroleum, Metals and Miscellaneous Classification Branch, Regulations and Rulings, Office of Trade, at (202) 325–7941
SUPPLEMENTAL INFORMATION
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Revocation of Seven Ruling Letters and Revocation of Treatment Relating to the Tariff Classification of Glass Containers Imported with Lids - USCBP
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
ACTION: Notice of revocation of seven ruling letters, and revocation of treatment relating to the tariff classification of glass containers imported with lids.
SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C.§ 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises interested parties that U.S. Customs and Border Protection (CBP) is revoking six ruling letters concerning the tariff classification of glass containers imported with lids under the Harmonized Tariff Schedule of the United States (HTSUS). Similarly, CBP is revoking any treatment previously accorded by CBP to substantially identical transactions. Notice of the proposed action was published in the Customs Bulletin, Vol. 58, No. 07, on February 21, 2024 No comments were received in response to that notice.
EFFECTIVE DATE: This action is effective for merchandise entered or withdrawn from warehouse for consumption on or after October 1, 2024
FOR FURTHER INFORMATION CONTACT: Claudia Garver, Chemicals, Petroleum, S and Miscellaneous Classification Branch, Regulations and Rulings, Office of Trade, at (202) 325–0024|
SUPPLEMENTAL INFORMATION
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OTEXA: Announcement - International Trade Administration
• 08/06/2024 – June 2024 Textile and Apparel Import Report
• 08/05/2024 – Determination to Approve CAFTA-DR Commercial Availability Request for Certain Nylon/Polyester Dobby Weave Fabric. File Number: CA2024002
• 07/24/2024 – The Department of Homeland Security is requesting comments on a proposed rule that would amend regulations dealing with DHS acquisition of certain clothing, canvas or textile products, and natural and synthetic fabrics to better clarify how the department complies with the Kissell Amendment. These include defining the term “end item”, and codifying that the Kissell Amendment applies to all contracts, options, and orders entered into on or after Aug. 16, 2009. Comments are open through September 23. For more information See 89 FR 59877
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Treasury Targets Iranian Missile and UAV Procurement Facilitators - U.S. Department of Treasury
WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is targeting five individuals and seven entities based in Iran, the People’s Republic of China (PRC), and Hong Kong that have facilitated procurements on behalf of subordinates of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). Those designated today procure various components, including accelerometers and gyroscopes, which serve as key inputs to Iran’s ballistic missile and unmanned aerial vehicle (UAV) program. Iran’s acquisition of critical missile and UAV components continues to enable its proliferation of weapons systems to its proxies in the Middle East and to Russia.
“Iran’s reckless proliferation of its ballistic missiles and UAVs risks further instability and endangers civilian lives, both in the region and around the world. Today’s action exposes additional key front companies and trusted agents through which Iran has sought to acquire these components,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States will continue to impose costs on those that facilitate Iran’s ability to produce these deadly weapons.”
Today’s action was taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their means of delivery. The U.S. Department of State designated MODAFL pursuant to E.O. 13382 on October 25, 2007 in connection with Iran’s ballistic missile program.
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Biden-Harris Administration Proposes Ban on Family Seating Junk Fees Charged by Airlines - DOT
Proposal would lower the cost of flying with young children by requiring airlines to provide fee-free family seating as part of a whole-of-government crackdown on unfair pricing
WASHINGTON – Today, the Biden-Harris Administration proposed a new rule that would ban airlines from charging junk fees to seat families together on a flight. The Department of Transportation’s (DOT) proposed rule would require airlines to seat parents next to their young children for free when adjacent seating is available at booking. Mandating fee-free family seating would lower the cost of flying with young children -- saving a family of four as much as $200 per roundtrip if seat fees are $25. DOT's proposed family seating junk fee ban is part of President Biden’s whole-of-government push to crackdown on corporate rip-offs that can unfairly raise prices for consumers.
“Many airlines still don’t guarantee family seating, which means parents wonder if they’ll have to pay extra just to be seated with their young child. Flying with children is already complicated enough without having to worry about that,” said U.S. Transportation Secretary Pete Buttigieg. “The new rule we’re proposing today, which would ban airlines from charging parents a fee to sit with their children, is another example of the Biden-Harris Administration using all the tools at our disposal to lower costs for families and protect consumers from unfair practices.”
For many families, being seated next to their children is not optional, especially when they are too young to feed themselves, fasten their own seatbelt, go to the bathroom, and, in some cases, communicate. But despite adjacent seating being essential for young families, many airlines continue to force parents to choose between paying to lock in assigned seats or risk being seated apart. These fees add up and effectively raise the final cost of air transportation for many families traveling with young children.
Parents who decide not to pay family seating junk fees are stuck figuring out how to sit next to their children in the midst of the hectic boarding process. This can lead to problems for the other passengers on the flight. Once boarded, airlines may ask these passengers to “voluntarily” forfeit their seats, which they may have paid for in advance, and move to a less desirable seat so that a parent and child can sit together. If passengers choose not to swap seats, they may be seated next to an unsupervised child, causing stress for the child, parent, and surrounding travelers.
In 2023, President Biden called on Congress to ban family seating junk fees in his State of the Union address. Secretary Buttigieg then pressed the ten largest airlines to voluntarily ban these fees, four airlines – Alaska, American, Frontier, and JetBlue have done so. The Department has published a dashboard displaying which airlines guarantee fee-free family seating at flightrights.gov. Secretary Buttigieg also submitted a legislative proposal to Congress that would ban these junk fees and wrote letters to Congressional leadership in support of the ban. Congress gave DOT explicit authority to propose a rule to ban family seating junk fees as part of the bipartisan FAA Reauthorization Act of 2024.
DOT’s notice of proposed rulemaking (NPRM) specifically proposes to:
• Ban family seating junk fees: The proposed rule would ban airlines from charging junk fees to assign seats for a young child (age 13 or under) next to their parent or accompanying adult.
• Require adjacent family seating when available: The proposal would require airlines to seat parents next to their young children for free within 48 hours of booking when adjacent seats are available.
o The proposal defines adjacent family seating as seats next to each other in the same row and not separated by an aisle.
o Airlines would be required to make adjacent family seats available in every class of service and prohibited from defining class in a way that limits availability of family seating, such as structuring basic economy to consist of only middle seats.
o In situations where it is impossible to provide adjacent seating for multiple young children, airlines would be required to seat them across the aisle from, directly in front of, or directly behind the parent or accompanying adult.
• Mandate refunds, free rebooking, and other options when adjacent family seating is not available: If adjacent family seats are not available at booking, airlines would be required to provide passengers the choice between receiving a full refund or waiting for family seating to become available later. If a passenger chooses to wait and adjacent seats do not free up before other passengers begin boarding, an airline must give families the option to rebook for free on the next flight with available family seating or stay on the flight in seats that are not adjacent.
• Require upfront disclosure of right to fee-free family seating: Under the proposed rule, airlines would be required to disclose clearly and conspicuously that passengers have the right to fee-free family seating. This includes disclosing on their public-facing online platforms and when a customer calls the airline’s reservation center to inquire about a fare or to book a ticket. The disclosure is also required to specify any airline requirements for check-in and boarding that may impact the ability to secure adjacent seats.
• Impose a penalty for each family seating junk fee: Under the proposed rule, each family seating junk fee imposed by an airline and each young child that is not seated next to their parent or accompanying adult as required would be considered a separate violation. Airlines that fail to comply with the fee-free family seating requirements would be subject to civil penalties for each violation.
DOT’s proposed rule clarifies that family seating is considered a basic service, essential for adequate air transportation, that must be included in the ticket fare. The proposal also invites comment on what, if any, other services should also be considered basic and essential, and therefore included as part of the fare.
The Biden-Harris Administration has taken historic action to improve airline passenger rights and oversight of the airline industry:
• Created a new rule to require airlines to provide automatic cash refunds to passengers when owed.
o The rule makes clear that airline passengers are entitled to a refund when their flight is canceled or significantly changed and they no longer wish to take that flight or be rebooked, when their checked baggage is significantly delayed, or when extra services they paid for – like Wi-Fi – are not provided. The rule also requires refunds to be automatic, prompt, in the original form of payment, and in the full amount paid. Airlines must comply with the rule by late October.
o Provisions of the final rule on airline refunds were fortified through the FAA Reauthorization Act of 2024 that President Biden signed into law on May 16, 2024.
• Created a new rule to protect consumers from costly surprise airline junk fees.
o The rule fosters a more competitive airline market by requiring airlines to disclose critical extra fees upfront – like change fees and baggage fees – to ensure consumers can better understand the true cost of their travel. The rule also bans “bait-and-switch” advertising tactics and requires airlines to clearly tell passengers upfront that a seat is included with the cost of their ticket, and they don’t need to pay extra. This rule is expected to save consumers over half a billion dollars every year.
• Set up a system to expand the Department’s capacity to review air travel service complaints by partnering with a bipartisan group of state attorneys general, which will help hold airlines accountable and protect the rights of the traveling public. Attorneys general who have signed a memorandum of understanding with DOT will be able to access the new complaint system this fall.
• Launched the flightrights.gov dashboard, after which all 10 major U.S. airlines guaranteed free rebooking and meals when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to through enforcement action.
• Secured nearly $4 billion in refunds and reimbursements owed to airline passengers – including over $600 million owed to passengers affected by the Southwest Airlines holiday meltdown in 2022.
• Issued nearly $170 million in penalties against airlines for consumer protection violations since President Biden took office. In comparison, between 1996 and 2020, DOT collectively issued just over $70 million in penalties against airlines for consumer protection violations