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Chinese Prison Labor Exports

Fact sheet released by the Bureau of Public Affairs, U.S. Department of State, June 17, 1997.

We have taken a series of steps to prevent importation of prison labor products. In the early 1990s, in response to allegations that Chinese political prisoners were being used to produce goods for export to the U.S., U.S. Customs and the State Department began investigation of allegations of importation of prison labor-produced goods. Forced labor is an intrinsic part of the Chinese penal system, although, since l990, export of goods produced in prisons is illegal under Chinese law.

• In l992, the Administration negotiated and signed a Memorandum of Understanding (MOU) with the PRC to facilitate inspections of Chinese prisons. The MOU allows for inspections of Chinese prison facilities by a U.S. Embassy officer, upon request, to establish the origin of alleged prison-produced products imported into the U.S.

• Unsatisfactory Chinese implementation and differing interpretations of the MOU led us in l994 to conclude a Statement of Cooperation (SOC) which tightened procedures for investigations and visits under terms of the MOU.

Chinese cooperation has not been satisfactory, but may be improving. Chinese willingness to cooperate is limited by decentralization of authority to local levels and bureaucratic resistance, among other factors. Also, cooperation has varied depending on the state of U.S.-China relations. We have seen signs of increased Chinese cooperation since early this year.

Our enforcement efforts remain active, and information from the Chinese has helped in some cases. Under the MOU, U.S. Customs refers cases of alleged prison labor imports to the Chinese Ministry of Justice for investigation. Customs has made 58 referrals since the signing of the MOU. Of these, the Ministry of Justice has responded with information on 52. If more information is required, Customs can ask to visit the facility in question. Customs has formally requested visits to 20 facilities and has been allowed to visit l3. Customs has obtained two prison labor related convictions based in part on information obtained from China.

Even in the absence of cooperation from China, Customs has authority to prevent the importation of goods suspected of being produced with prison labor. If Customs has reasonable suspicion that a shipment has been produced using prison labor, it can prevent the shipment from entering the U.S. market. Since 1991, Customs has issued 26 such detention orders on imports from China, six of which were subsequently revoked. Where an order has not been revoked, the suspect goods cannot enter the United States, are usually re-exported and represent a financial loss to the exporters. Customs also issues findings banning importation of suspect goods if it has probable cause. Six findings concerning China have been issued, two of which were subsequently revoked.

Revoking normal trade status for China will undermine our enforcement efforts. Improving cooperation under the MOU will require sustained enforcement and diplomatic efforts with Chinese counterparts. The damage to U.S.-China relations produced by a revocation of normal trade status would set back those efforts substantially.

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