CBP Releases Updated Entity List: New Focus on Magnesium and Critical Raw Materials

On August 9th, the Forced Labor Enforcement Task Force (FLETF) published 5 new entities in its Entity List. All 5 entities are related to critical raw materials, especially magnesium. Although magnesium is not currently included on CBP’s list of high-risk commodities - which includes tomatoes, cotton, polysilicon, seafood, PVC, and aluminum -  it represents a continued effort by FLETF to expand its enforcement efforts for goods suspected of being made with forced labor. 

Numerous Sectors Impacted by Critical Raw Material Focus

Forced labor enforcement has increasingly become a matter of national security for the U.S. The Energy Act of 2020 defines critical materials as “Any non-fuel mineral, element, substance, or material that the Secretary of Energy determines: (i) has a high risk of supply chain disruption; and (ii) serves an essential function in one or more energy technologies, including technologies that produce, transmit, store, and conserve energy” or a critical “mineral, element, substance, or material designated as critical by the Secretary of the Interior, acting through the director of the U.S. Geological Survey.” In 2023, the Secretary of Energy published the 2023 Critical Materials List, including materials critical to the energy sector such as aluminum, cobalt, copper, fluorine, gallium, magnesium, nickel, platinum and others. These materials are present in all kinds of products and sectors, including consumer electronics, batteries, solar panels and other energy products, medical devices, auto, and defense.

Forced Labor Enforcement Continues to Increase

2024 marked a significant increase in forced labor enforcement measures taken by CBP. In 2024 alone, 35 new entities were added to the Entities List. The list of high-risk commodities were also updated for the first time since the law entered into enforcement, to include seafood and aluminum. 

In 2023, CBP detained $1.42 billion worth of goods suspected of being made in whole or in part with forced labor, compared to over $1.63 billion worth of goods in the first 8 months of 2024. CBP is on track to far surpass the total value of goods detained year over year. The staggering increase in detentions under the U.S. Forced Labor Law, together with the diversification of targeted industries and the significant increase in the entity list, shows that CBP is continuing to ramp up enforcement measures and prioritize forced labor enforcement for goods entering the U.S.

To learn more about how the U.S. is cracking down on forced labor in supply chains -  and how Sourcemap can help -  reach out to our team of experts at info@sourcemap.com, or request a demo.