CBP Modifies Withhold Release Order on Imports of Carpets and Hand-Knotted Wool Products from Nepal

WASHINGTON – The US Customs and Border Protection has changed a withhold release order for the import of carpets and hand-knotted products from Nepal. From July 23, 2021, carpets and hand-knotted wool products from the Nepalese company Annapurna Carpet Industries Pvt. Ltd. (“Annapurna Carpet”) are permitted at all US ports of entry.

“CBP’s thorough review of Annapurna Carpet’s business practices shows that the company has addressed concerns about the use of forced labor in its manufacturing process and that its products may be imported into the United States,” said AnnMarie Highsmith, CBP’s Executive Assistant Commissioner for Trade. “CBP remains committed to eliminating forced labor from US supply chains to protect vulnerable workers and ensure a level playing field for law-abiding companies.”

CBP issued a Withhold Release Order in July 1998 to prevent imports of carpets and hand-knotted wool products from seven Nepalese companies, including Annapurna Carpet. The retention order was based on information that reasonably indicated that these products were manufactured using forced labor.

CBP changed the Withhold Release Order after evaluating detailed information that Annapurna Carpet took into account all eleven indicators of forced labor in the manufacture of its carpets and hand-knotted wool products, which is sufficient to show that the company’s products are not made using forced labor. These products can now be imported into the United States.

This is the second time that CBP has modified the Withhold Release Order for carpets and hand-knotted wool products from Nepal. The agency changed the Withhold Release Order for the first time in October 1998 to allow imports of carpets and hand-knotted wool products from three companies: Norsang Carpet Industries Pvt., Ltd., Everest Carpet and KK Carpet Industries. The three units fully addressed CBP’s concerns about the use of forced labor in their production processes.

For carpets and hand-knotted wool products from Kumar Carpet Pvt., Singhe Carpet Pvt. and Valley Carpet, the 1998 Withhold Release Order remains in effect. CBP will not change or revoke an order to withhold the release until the companies concerned have completely eliminated all indicators of forced labor in their production process.

Federal Law 19 USC 1307 prohibits the importation of goods that are wholly or partially dismantled, manufactured or manufactured in a foreign country by means of forced labor, including forced labor and / or an employment contract subject to criminal penalties. If information indicates reasonably, but not conclusively, that goods within the scope of this provision are being imported, the CBP representative can issue a release of retention. Hold back clearance orders instruct CBP personnel at US ports of entry to hold shipments containing the goods specified in the order.

CBP has received allegations of forced labor from various sources, including the public. Any person or organization with reason to believe that goods manufactured using forced labor are being or are likely to be imported into the United States can report detailed allegations by using the e-Allegations Online Trade Violations Reporting System or call CBP at 1-800-BE-ALARM.

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