[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4443 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 4443
To ensure that certain goods made with child labor or forced labor in
the Democratic Republic of the Congo do not enter the United States
market, to counter control of strategic metals and minerals by the
People's Republic of China, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2023
Mr. Smith of New Jersey introduced the following bill; which was
referred to the Committee on Foreign Affairs, and in addition to the
Committees on Ways and Means, and the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To ensure that certain goods made with child labor or forced labor in
the Democratic Republic of the Congo do not enter the United States
market, to counter control of strategic metals and minerals by the
People's Republic of China, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Countering China's Exploitation of
Strategic Metals and Minerals and Child and Forced Labor in the
Democratic Republic of the Congo Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Cobalt is an essential component of lithium-ion
batteries, which are predominantly used for electric vehicles,
smartphones, and laptops, among other electronic devices.
According to the International Energy Agency, the world is
expected to see a 40-fold increase in lithium demand and a 20-
fold increase in cobalt demand by 2040, as the demand for
electric vehicles is expected to grow significantly during this
period.
(2) In 2021, global sales of electric vehicles doubled
compared to 2020, reaching its new record of 6.6 million, and
bringing the total number of electric vehicles in use to 16.5
million electric vehicles by the end of 2021. The People's
Republic of China (``PRC'') accounted for half of those sales,
with over 150 percent growth in electric vehicle sales in that
country compared to 2020. In the first quarter of 2022, an
additional 2 million electric vehicles were sold worldwide,
showing strong continued growth. While Europe and the United
States saw increased sales, the PRC experienced an
unprecedented tripling of electric vehicle sales of 3.3 million
in 2022, accounting for approximately one-half of the global
sales.
(3) The concentration of global cobalt supply and
production in the Democratic Republic of the Congo (``DRC'') as
well as civil unrest and governmental corruption, heighten the
vulnerabilities and risks of global supply chain disruptions.
More than one-half of the world's cobalt resources are in the
DRC, which supplies approximately 70 percent of the global
cobalt mine production in 2021. The DRC remains beset by
conflicts and pervasive official corruption. Firms based in the
PRC hold a dominant position in DRC's cobalt sector, according
to the White House. On the foundation of an unstable state,
more than one-half of lithium and cobalt global supplies are
processed and refined in the PRC, where more than 75 percent of
all lithium-ion batteries are produced. About 50 percent of all
batteries are for consumption in the PRC.
(4) Lithium deposits have been identified in the DRC, with
exploration ongoing. It is estimated that the DRC can begin
lithium production as early as 2023.
(5) Approximately 15 to 30 percent of cobalt produced in
the DRC comes from artisanal and small-scale mining. An
estimated 255,000 miners work in artisanal and small-scale
mining in the DRC, of whom at least 40,000 are children.
(6) The child miners in the DRC, some as young as 6 years
of age, working in artisanal and small-scale mines, are
subjected to the worst forms of forced manual labor. They work
in harsh and life-threatening conditions, and are vulnerable to
physical injuries, coercion, and abuse in addition to exposure
to harmful toxins.
(7) Amnesty International reported in 2016 that child
miners in the DRC's cobalt sector worked for up to 12 hours a
day in the mines without the most basic protective gear, such
as gloves and face masks which would protect them from lung and
skin disease. Many children reportedly worked for prolonged
periods underground, including at sites with inadequate
ventilation and a high risk of fatal mineshaft collapse. Child
miners interviewed by Amnesty International reported working
for up to 12 hours a day in the mines, carrying heavy loads and
being paid less than two dollars per day.
(8) According to a tally by Amnesty International, based on
news reports, at least 80 underground miners working in
artisanal and small-scale mining died in southeastern DRC
between September 2014 and December 2015. Amnesty International
assessed that the ``true figure is unknown as many accidents go
unrecorded and bodies are left buried in the rubble''. To this
day, there is no official tally of the total number of such
deaths.
(9) As of 2020, 15 of the 19 cobalt mines in the DRC were
owned or financed by PRC companies.
(10) The 5 biggest PRC-owned mining companies in the DRC
have lines of credit from PRC state-owned banks totaling $124
billion.
(11) China Molybdenum, a PRC mining and trading company, is
the second-largest producer of cobalt worldwide. In 2016, it
purchased Tenke Fungurume, which controlled one of the largest
cobalt reserves in the world. More than $1.59 billion of the
$2.65 billion came from loans from PRC state-owned banks.
(12) Under PRC ownership of mining companies in the DRC,
there has been reportedly a significant rise in serious
injuries. There are questions regarding proper oversight of
safety in the mines, as well as coverups of deaths and
injuries.
(13) In July 2021, PRC mining company managers in Kolwezi
ordered the brutal beating and whipping of miners.
(14) On July 14, 2022, the Tom Lantos Human Rights
Commission, a bipartisan congressional commission, held a
hearing on ``Child Labor and Human Rights Violations in the
Mining Industry of the Democratic Republic of Congo''. The
hearing highlighted the concerns of child and forced labor in
the DRC, the disregard of worker safety, and environmental
degradation. It also highlighted PRC domination of strategic
metals and minerals in the global supply chain.
(15) In the 2022 Trafficking in Persons Report, the
Department of State emphasized that ``In the [DRC,] artisanal
and small-scale mining of cobalt has been associated with
forced child labor and other abuses'', noting further that
``Since 2015, the TIP Report narratives on the DRC have
highlighted forced labor of children in artisanal cobalt
mines.''. The DRC is on the Tier 2 Watch List, and will be
automatically downgraded to Tier 3, subjecting it to sanctions,
if it does not substantively and consistently improve its
record on trafficking.
(16) Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307)
states that it is illegal to import into the United States
``goods, wares, articles, and merchandise mined, produced, or
manufactured wholly or in part'' by forced labor, including
forced or indentured child labor. Such merchandise is subject
to exclusion or seizure and may lead to criminal investigation
of the importer.
(17) On December 13, 2022, the Governments of the United
States, DRC, and Zambia signed a memorandum of understanding
with regard to United States support for the DRC and Zambia to
develop jointly a supply chain for electric vehicle batteries,
``from the mine to the assembly line, while also committing to
respect international standards to prevent, detect and take
legal action to fight corruption throughout this process''.
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to prohibit the importation of covered DRC goods;
(2) to encourage the international community to prohibit
the importation of covered DRC goods;
(3) to enforce labor provisions under Chapter 23 of the
United States-Mexico-Canada Agreement (USMCA) and coordinate
with Mexico and Canada to effectively implement Article 23.6 of
the United States-Mexico-Canada Agreement to prohibit the
importation of covered DRC goods into the North American
market;
(4) to mitigate and prevent gross violations of human
rights in the DRC by--
(A) utilizing bilateral diplomatic channels and
multinational institutions where both the United States
and the DRC are members; and
(B) using other applicable authorities available to
the United States Government, including with regard to
development assistance; and
(5) to combat PRC control of strategic metals and minerals
in the global supply chain.
SEC. 4. REBUTTABLE PRESUMPTION THAT IMPORT PROHIBITION APPLIES TO
COVERED DRC GOODS.
(a) In General.--Except as provided in subsection (b), covered DRC
goods shall be deemed to be goods, wares, articles, and merchandise
described in section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) and
shall not be entitled to entry at any of the ports of the United
States.
(b) Exception.--The prohibition described in subsection (a) shall
not apply if the Commissioner of U.S. Customs and Border Protection--
(1) determines, based on clear and convincing evidence,
including information produced by due diligence reviews by
importers of their supply chains, that the covered DRC goods
were not mined, produced or manufactured wholly or in part by
child labor or forced labor; and
(2) submits to the appropriate congressional committees and
makes available to the public a report that contains such
determination.
(c) Effective Date.--This section shall take effect on the date
that is 120 days after the date of the enactment of this Act.
SEC. 5. ENFORCEMENT STRATEGY TO ADDRESS CHILD LABOR AND FORCED LABOR IN
THE DRC.
(a) In General.--Not later than 120 days after the date of the
enactment of this Act, the Forced Labor Enforcement Task Force,
established under section 741 of the United States-Mexico-Canada
Agreement Implementation Act (19 U.S.C. 4681), shall submit to the
appropriate congressional committees a report that--
(1) contains an enforcement strategy to effectively address
child labor and forced labor in the mining, production,
smelting, or processing of metals or minerals, in particular
cobalt and lithium and their derivatives, in the DRC;
(2) describes the specific strategy of the United States
Government for enforcing section 307 of the Tariff Act of 1930
(19 U.S.C. 1307) to prevent the importation into the United
States of covered DRC goods;
(3) describes the perpetration of child labor and forced
labor by mining companies in the DRC owned or controlled by PRC
entities or financed by PRC state-owned banks or institutions;
and
(4) recommends development and promotion of alternative
sources of supply and production, including within the DRC and
the United States domestically.
(b) Matters To Be Included.--The strategy required by subsection
(a) shall include the following:
(1) A description of the actions taken by the United States
Government, including what monitoring and evaluation (M&E)
standards were utilized, to address child labor and forced
labor in the DRC under section 307 of the Tariff Act of 1930
(19 U.S.C. 1307), including a description of all Withhold
Release Orders issued, covered DRC goods detained, and fines
issued.
(2) A list of--
(A) covered DRC goods; and
(B) businesses that have sold covered DRC goods in
the United States.
(3) A list of United States-based facilities and entities
that source metals and minerals, in particular cobalt and
lithium and their derivatives, from the mining industry of the
DRC, including artisanal and small-scale mining sectors.
(4) A list of mining companies, including China Molybdenum,
in the DRC owned or controlled by PRC entities, or financed by
PRC state-owned banks or institutions.
(5) A list of high-priority sectors for enforcement, which
shall include electric vehicles production, with a sector-
specific enforcement plan for each high-priority sector.
(6) A description of the additional resources necessary for
U.S. Customs and Border Protection and other Federal entities,
including the Forced Labor Enforcement Task Force, to
effectively implement the strategy.
(7) A strategy to coordinate and collaborate with
appropriate nongovernmental organizations and private sector
entities to implement the enforcement strategy for covered DRC
goods.
(c) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may include a classified annex, if necessary.
(d) Updates.--After the submission of the strategy required by
subsection (a), the Forced Labor Enforcement Task Force shall provide
briefings to the appropriate congressional committees on a quarterly
basis and, as applicable, on any updates to the strategy required by
subsection (a) or additional actions taken to address child labor or
forced labor in the DRC, including actions described in this Act.
(e) Sunset.--This section shall cease to have effect on the earlier
of--
(1) the date that is 8 years after the date of the
enactment of this Act; or
(2) the date on which the President submits to the
appropriate congressional committees a determination that the
DRC has ended child labor and forced labor in the mining
industry of the DRC, including artisanal and small-scale
mining.
SEC. 6. DIPLOMATIC STRATEGY TO ADDRESS CHILD LABOR AND FORCED LABOR IN
THE DRC.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of State, in coordination with the
heads of other appropriate Federal departments and agencies, shall
submit to the appropriate congressional committees a report that
contains a United States strategy to promote initiatives to enhance
international awareness of and to prevent and mitigate child labor and
forced labor in the mining industry of the DRC, including artisanal and
small-scale mining.
(b) Matters To Be Included.--The report required by subsection (a)
shall include--
(1) a plan to enhance bilateral and multilateral
coordination, including sustained engagement with the
governments of United States allies and partners, to end child
labor and forced labor in the mining industry of the DRC,
including artisanal and small-scale mining;
(2) a strategic plan to enhance bilateral and multinational
coordination, including sustained engagement with the
governments of United States allies and partners, to counter
child labor and forced labor by mining companies in the DRC
owned or controlled by PRC entities, including China
Molybdenum, or financed by PRC state-owned banks or
institutions;
(3) a plan based on proven strategies with monitoring and
evaluation standards applied for public affairs, public
diplomacy, and messaging efforts to promote awareness of child
labor and forced labor in the DRC, with a special attention to
the role of the mining companies owned or controlled by PRC
entities, or financed by PRC state-owned banks or institutions;
and
(4) opportunities to coordinate and collaborate with
appropriate nongovernmental organizations, including, in
particular, faith-based entities and private sector entities,
to raise awareness about covered DRC goods.
(c) Additional Matters To Be Included.--The report required by
subsection (a) shall also include--
(1) to the extent practicable, a list of--
(A) entities that directly or indirectly use child
labor or forced labor in the production of covered DRC
goods; and
(B) foreign persons that act as agents of the
entities or affiliates of entities described in
subparagraph (A) to import covered DRC goods into the
United States; and
(2) a description of actions taken by the United States
Government to address child labor or forced labor in the mining
industry of the DRC, including artisanal and small-scale
mining, including under--
(A) the Trafficking Victims Protection Act of 2000
(Public Law 106-386; 22 U.S.C. 7101 et seq.);
(B) the Elie Wiesel Genocide and Atrocities
Prevention Act of 2018 (Public Law 115-441; 22 U.S.C.
2656 note); and
(C) the Global Magnitsky Human Rights
Accountability Act (22 U.S.C. 2656 note).
(d) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may include a classified annex, if necessary.
(e) Updates.--The Secretary of State shall include any updates to
the strategy required by subsection (a) in the annual Trafficking in
Persons report required by section 110(b) of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7107(b)).
(f) Sunset.--This section shall cease to have effect the earlier
of--
(1) the date that is 8 years after the date of the
enactment of this Act; or
(2) the date on which the President submits to the
appropriate congressional committees a determination that the
Government of the DRC has ended child labor and forced labor in
the mining industry of the DRC, including artisanal and small-
scale mining.
SEC. 7. IMPOSITIONS OF SANCTIONS RELATING TO CHILD LABOR AND FORCED
LABOR IN THE DRC.
(a) Report Required.--
(1) In general.--Not later than 270 days after the date of
the enactment of this Act, and not less frequently than
annually thereafter, the President shall submit to the
appropriate congressional committees a report that identifies
each foreign person, including any official of the Government
of the DRC, that the President determines--
(A) knowingly engages in, is responsible for, or
facilitates the child labor and forced labor in the
mining industry of the DRC, including artisanal and
small-scale mining; and
(B) knowingly engages in, contributes to, assists,
or provides financial, material, or technological
support for efforts to contravene United States law
regarding the importation of covered DRC goods.
(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form, but may contain a classified
annex.
(b) Imposition of Sanctions.--The President shall impose the
sanctions described in subsection (c) with respect to each foreign
person identified in the report required under subsection (a)(1).
(c) Sanctions Described.--The sanctions described in this
subsection are the following:
(1) Asset blocking.--The President shall exercise all of
the powers granted to the President under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the
extent necessary to block and prohibit all transactions in
property and interests in property of a foreign person
identified in the report required under subsection (a)(1) if
such property and interests in property--
(A) are in the United States;
(B) come within the United States; or
(C) come within the possession or control of a
United States person.
(2) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--An alien
described in subsection (a)(1) is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other
documentation to enter the United States; and
(iii) otherwise ineligible to be admitted
or paroled into the United States or to receive
any other benefit under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--An alien described in
subsection (a)(1) is subject to revocation of
any visa or other entry documentation
regardless of when the visa or other entry
documentation is or was issued.
(ii) Immediate effect.--A revocation under
clause (i) shall--
(I) take effect immediately; and
(II) automatically cancel any other
valid visa or entry documentation that
is in the alien's possession.
(d) Implementation; Penalties.--
(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out this section.
(2) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a foreign
person that violates, attempts to violate, conspires to
violate, or causes a violation of paragraph (1) to the same
extent that such penalties apply to a person that commits an
unlawful act described in subsection (a) of such section 206.
(e) Waiver.--The President may waive the application of sanctions
under subsection (b) with respect to a foreign person if the President
determines and certifies to the appropriate congressional committees
that such a waiver is in the national interest of the United States.
(f) Exceptions.--
(1) Exceptions for intelligence activities.--Sanctions
under this section shall not apply to any activity subject to
the reporting requirements under title V of the National
Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized
intelligence activities of the United States.
(2) Exception to comply with international obligations and
for law enforcement activities.--Sanctions under subsection
(c)(2) shall not apply with respect to an alien if admitting or
paroling the alien into the United States is necessary--
(A) to permit the United States to comply with the
Agreement regarding the Headquarters of the United
Nations, signed at Lake Success on June 26, 1947, and
entered into force November 21, 1947, between the
United Nations and the United States, or other
applicable international obligations; or
(B) to carry out or assist law enforcement activity
in the United States.
(g) Termination of Sanctions.--The President may terminate the
application of sanctions under this section with respect to a foreign
person if the President determines and certifies to the appropriate
congressional committees not less than 15 days before the termination
takes effect that--
(1) information exists that the person did not engage in
the activity for which sanctions were imposed;
(2) the person has been prosecuted appropriately for the
activity for which sanctions were imposed;
(3) the person has credibly demonstrated a significant
change in behavior, has paid appropriate recompense for the
activity for which sanctions were imposed, and has credibly
committed to not engage in an activity described in subsection
(a)(1) in the future; or
(4) the termination of the sanctions is in the national
security interests of the United States.
(h) Sunset.--This section, and any sanctions imposed under this
section, shall terminate on the date that is 8 years after the date of
the enactment of this Act.
SEC. 8. USAID EFFORTS TO PREVENT CHILD LABOR AND FORCED LABOR IN THE
MINING INDUSTRY OF THE DRC.
(a) In General.--The Administrator of the United States Agency for
International Development (``USAID''), in coordination with the
Secretary of the Department of State and the heads of other relevant
Federal departments and agencies, shall increase efforts to prevent
child labor and forced labor in the mining industry of the DRC,
including artisanal and small-scale mining, including by encouraging
efforts--
(1) to expand citizens' participation in local decision
making;
(2) to enhance transparency and accountability of
governmental decisions on the local, provincial, and national
levels in the DRC, on the expenditure of public funds, and the
entry into contracts and other agreements in the mining
industry of the DRC, in particular contracts or other
agreements entered into with PRC entities, including China
Molybdenum, or PRC state-owned banks or financial institutions;
(3) to strengthen social infrastructure to enhance
oversight of the mining industry of the DRC, including
artisanal and small-scale mining;
(4) to provide basic protective equipment, including
gloves, work-appropriate clothes, and masks;
(5) to develop the technical and business capacity of
artisanal and small-scale miners, helping them comply with
environmental, safety, and business regulations;
(6) to build entrepreneurial capacity in local communities
in order to provide economically feasible alternatives to
artisanal and small-scale mining; and
(7) to support the ongoing development of country-specific
policies and implementation of the national strategy to combat
trafficking in persons in the DRC, especially to prevent child
labor and forced labor in the DRC.
(b) Coordination.--The USAID Administrator, in coordination with
the Secretary of State and heads of other relevant Federal departments
and agencies, shall coordinate with bilateral and multilateral donors;
the International Monetary Fund; the government of the DRC at national,
provincial, and local levels; United Nations agencies; civil society
and nongovernmental organizations, including faith-based organizations;
and the private sector to combat trafficking in persons in the DRC,
including by--
(1) supporting efforts by local and civil society
organizations, including faith-based organizations, and the
government of the DRC at national, provincial, and local levels
to ensure the end of child labor and forced labor;
(2) promoting transparency and accountability of national,
provincial, or local level government decisions in the DRC with
respect to public funds and contracts and other agreements
related to the mining industry of the DRC, in particular
contracts or other agreements entered into with PRC entities,
including China Molybdenum, or PRC state-owned banks or
financial institutions; and
(3) undertaking efforts set forth in section 10(a) above.
(c) Intra-Agency Efforts.--In carrying out the activities described
in this section, the USAID Administrator, in coordination with the
Secretary of State and heads of other relevant Federal departments and
agencies, shall seek to leverage additional private sector resources to
end child labor and forced labor in the mining industry of the DRC,
including artisanal and small-scale mining, by increasing cooperation
between USAID and such other relevant Federal departments and agencies
to better leverage the full spectrum of grants, technical assistance,
and partnerships.
SEC. 9. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs, the Committee
on Financial Services, and the Committee on Ways and
Means of the House of Representatives; and
(B) the Committee on Foreign Relations, the
Committee on Banking, Housing, and Urban Affairs and
the Committee on Finance of the Senate.
(2) Artisanal and small-scale mining.--The term ``artisanal
and small-scale mining''--
(A) means mining with minimal to no mechanization;
and
(B) includes the use of intensive hand tools.
(3) Child labor.--The term ``child labor'' means work that
deprives children of their childhood, their potential, and
their dignity, and that is harmful to physical and mental
development, as such term is commonly used by the International
Labour Organization.
(4) Covered drc goods.--The term ``covered DRC goods''
means goods, wares, articles, or merchandise containing metals
or minerals, in particular cobalt and lithium and their
derivatives, mined, produced, smelted or processed, wholly or
in part, by child labor or forced labor in the DRC.
(5) DRC.--The term ``DRC'' means the Democratic Republic of
the Congo.
(6) Forced labor.--The term ``forced labor'' has the
meaning given that term in section 307 of the Tariff Act of
1930 (19 U.S.C. 1307).
(7) Foreign person.--The term ``foreign person'' means a
person that is not a United States person.
(8) Person.--The term ``person'' means an individual or
entity.
(9) PRC.--The term ``PRC'' means the People's Republic of
China.
(10) Strategic metals and minerals.--The term ``strategic
metals and minerals'' means metals and minerals that--
(A) are essential to national defense and national
security,
(B) are used in weapons systems, or
(C) are the building blocks for modern technologies
that are critical to economic prosperity for which the
United States is dependent on imports from foreign
countries,
the supply of which is susceptible to control by foreign powers
such as the PRC or the Russian Federation whose interests are
inimical to those of the United States.
(11) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
or
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity.
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