CBP Keeps Trying with Aluminum Extrusions

A Chinese-owned producer and distributor of aluminum extrusions in the Dominican Republic has been determined to be employing convict, forced or indentured labor by US Customs and Border Protection.

This comes on the heels of a successful appeal by Kingtom Aluminio SRL, of an Enforce and Protect Act (EAPA) case before the U.S. Court of International Trade (CIT), where an alleger asserted Kingtom Aluminio was evading antidumping and countervailing duty orders on aluminum extrusions from China. 

The CIT ruled in favor of Kingtom, sustaining and affirming no evasion on behalf of Kingtom. 

CBP then determined that there is sufficient information to support a Finding that Kingtom Aluminio S.R.L. is using convict, forced, or indentured labor in a factory in the Dominican Republic to produce or manufacture in whole or in part aluminum extrusions and profile products and derivatives, and that such products are being, or are likely to be, imported into the United States.

The Aluminum Extruders Council and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union ("USW") jointly petitioned CBP and the Department of Homeland Security ("DHS") to investigate the claims.

According to the CBP finding in February, Kingtom employed an undisclosed number of Chinese workers between 2016 and 2022. The report says their wages were paid in Chinese currency and deposited overseas to Chinese bank accounts because, according to Kingtom, they “do not need local currency.”

CBP found “that Kingtom is a company owned by Chinese nationals, located in the Dominican Republic, run by Chinese workers, using Chinese supplies, Chinese equipment, and Chinese raw materials, which allows for potential transshipment or commingling of Chinese aluminum extrusions. Therefore, for the aforementioned reasons, CBP finds that Kingtom has definitive ties to China, and moreover, CBP is not able to confirm what Kingtom purchases from China, because of the conflicting information provided by Kingtom in the three investigations.”

In 2022 the D.R. Ministry of Labor ordered the closure of the Kington Aluminum after finding violations of the law, including “abusive practices that endanger the lives of the workers.”

Violations were found regarding minimum wages, overtime, lack of an occupational health and safety committee, weekly rest, non-payment of vacation pay, non-enjoyment of vacations, and excessive working hours.

Not Just Xinjiang...

This case from the Dominican Republic illustrates the geographic scope of incidence for forced labor violations.   

Indicators of forced labor per the International Labor Organization’s (ILO) include: long working hours and allegations of no paid overtime, retention of identity documents, abuse of vulnerability, limited movement, restriction to freedom of movement, and isolation, high agency fees and susceptibility to debt bondage, and wage withholding.

A recent report by China Labor Watch on the working conditions of foreign workers from 5 countries – China, India, Nepal, Zambia, and Indonesia in two Chinese-owned companies operating in Serbia shows that offshore Chinese manaufacturing may retain objectionable labor practices.   Firms engaging in supplier due diligence are forewarned. 

Aluminum Extrusions and Profile Products and Derivatives Produced or Manufactured Wholly or in Part by Kingtom Aluminio S.R.L. with the Use of Convict, Forced or Indentured Labor are Being, or are Likely to Be, Imported into the U.S.