In order to ensure that the United States possesses resilient supply chains that protect national security, meet America’s needs during emergencies and keep America competitive globally, the Biden Administration has issued an executive order on “America’s Supply Chains.” The order initiates two tiers of supply chain reviews: a 100-day supply chain review of four specific U.S. industries and a year-long review of six sector-wide U.S. supply chains. These reviews will lead to the issuance of reports by relevant agencies and departments that will analyze the current conditions of the respective supply chains and recommend steps to reduce reliance on specific countries for critical goods and services, and to avoid such reliance in the future.

The executive order is notable in that it represents the first serious attempt by the U.S. government to develop a comprehensive, government-wide policy on supply chains.  The fact that President Biden is taking this step during his second month in office only underscores the extent to which supply chains have become a critical issue in such a short period of time.

While the immediate cause of this increased focus may have been the pandemic, the text of the order evidences that the Administration’s concerns go beyond COVID.  Indeed, the U.S. government has been working on a new regulatory structure for the Information and Communications Technology and Services (“ICTS”) supply chain for over a year, as we previously advised here.


Continue Reading President Biden Signs Executive Order on US Supply Chains

On January 13, 2021 the US Department of Homeland Security’s Customs and Border Protection (CBP) announced that, effective immediately, all cotton and tomato products imported from China’s Xinjiang Uyghur Autonomous Region (XUAR) will be barred from entering the United States. The ban, officially called a Withhold Release Order (WRO), is “based on information that reasonably indicates the use of detainee or prison labor and situations of forced labor” according to CBP. This region-wide order joins a growing list of WROs targeting alleged forced labor in China.

Under this WRO, all cotton or tomato products originating from XUAR will be detained at all US ports of entry pending the submission to CBP within three months of entry of satisfactory proof that the products were not produced with forced labor. If CBP is unsatisfied with the provided evidence the products will be seized and potential civil and criminal investigations and penalties could occur. This particular WRO also includes apparel, textiles, tomato seeds, canned tomatoes, tomato sauce and other goods made with either cotton or tomatoes from XUAR. CBO has clarified that the WRO “applies to cotton and tomatoes grown in that region and to all products made in whole or in part using this cotton or these tomatoes, regardless of where the downstream products are produced.” Importers of record are responsible for ensuring no part of their product has cotton or tomato inputs that were harvested or produced at any point in their supply chain via forced labor from XUAR.


Continue Reading US Announces Region-Wide Ban on Cotton and Tomato Imports from Xinjiang

Recently-published reports from the U.S. government suggest that, due to COVID and U.S.-China trade tensions, U.S. policy is likely to continue a trend towards incentivizing supply chain de-coupling in the ICT sector where feasible.

On October 20, 2020, the Cyberspace Solarium Commission issued a white paper, “Building a Trusted Supply Chain,” that sets out a “five-pillar” plan to “reinvigorate American high-tech manufacturing and secure the United States’ Information and Communications Technologies (ICT) supply chains,” with a focus on materials, semiconductors, and finished ICT equipment. Established by Congress in 2018, the Commission is comprised of commissioners from both the public and private sectors and is co-chaired by Senator Angus King (I-ME) and Rep. Mike Gallagher (R-WI). This most recent white paper follows a lengthier report issued by the Commission in March 2020 that proposed a strategy of “layered cyber deterrence” as part of an ICT industrial base strategy to “reduce critical dependencies on untrusted” ICTs.


Continue Reading Recent Reports Suggest Supply Chain De-Coupling Policies Likely to Continue