By: Ashwani Mahajan

On Tuesday, the U.S. House of Representatives unanimously passed the bipartisan Protecting American Industry and Labor from International Trade Crimes legislation. The bill, led by Select Committee Ranking Member Raja Krishnamoorthi (D-IL), Congresswoman Ashley Hinson (R-IA), and Select Committee Chairman John Moolenaar (R-MI), combats trade crimes committed by the People’s Republic of China (PRC) by directing the Department of Justice (DOJ) to establish a new structure within its Criminal Division dedicated to prosecuting international trade crimes. This effort will enhance U.S. capabilities for detecting, investigating, and prosecuting trade fraud, duty evasion, transshipment, and other trade-related crimes.

This legislation aligns with one of the recommendations laid out in the Select Committee’s bipartisan economic report from December 2023, which calls for an increase in investigative capacity and enforcement and also calls for the recovery of lost U.S. revenue by appropriating additional funding for trade enforcement capacities at the Department of Justice targeting PRC transshipment, evasion of tariffs, trade-based money laundering, violations of the Uyghur Forced Labor Prevention Act (UFLPA), and other trade-related crimes.

“As the Chinese Communist Party continues to pursue trade policies that violate American trade laws, our bipartisan legislation will crack down on these crimes by establishing a new unit at the Department of Justice dedicated to strengthening enforcement and holding perpetrators criminally liable. Through countering the CCP’s illegal trade practices, such as violating the Uyghur Forced Labor Prevention Act, dumping below-market iron and steel, and flooding the American market with illegal vapes, our bipartisan bill will protect American workers, consumers, and companies. Following today’s House passage of the bipartisan Protecting American Industry and Labor from International Trade Crimes Act, I hope the Senate will swiftly take up and approve the legislation to protect Americans, our economy, and our values.” ­– Ranking Member Raja Krishnamoorthi (D-IL)

Other original co-sponsors of this bill include House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) and Reps. Glenn Ivey (D-MD), Ted Lieu (D-CA), Deborah Ross (D-NC), Haley Stevens (D-MI), Lou Correa (D-CA), Darin LaHood (R-IL), Nate Moran (R-TX), Ben Cline (R-VA), Kevin Kiley (R-CA), and Elise Stefanik (R-NY).

“The Alliance for American Manufacturing commends the introduction of the bipartisan Protecting American Industry and Labor from International Trade Crimes Act of 2024. The legislation rightly prioritizes the prosecution of trade crimes and is both sorely needed and long overdue. Customs fraud and other trade crimes are pernicious in their reach, harming domestic industries, destroying jobs, and robbing communities across the country of their economic lifeblood.” – Scott Paul, President of the Alliance for American Manufacturing (AAM)

“AISI applauds the work of Representatives Krishnamoorthi and Hinson on the introduction of the Protecting American Industry and Labor from International Trade Crimes Act. By establishing within the Department of Justice a task force or similar structure specifically dedicated to prosecuting trade crimes, this legislation will help ensure that criminal activities to evade U.S. customs and trade laws are appropriately addressed by federal prosecutors. Full and vigorous enforcement of both the criminal and civil aspects of U.S. customs and trade laws is of critical importance to the American steel industry and its workers.” – American Iron and Steel Institute

“We commend Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), who lead the House Select Committee on the CCP, along with Congresswoman Ashley Hinson (R-IA) and others for introducing this bipartisan legislation that will put real teeth into combatting trade crimes that are undermining American textile and apparel manufacturers. NCTO has called for additional federal tools and resources to urgently address the pervasive trade crimes impacting our industry as well as other U.S. manufacturing sectors. We are pleased that this legislation will do exactly that by establishing a formal structure within the Department of Justice’s Criminal Division dedicated to aggressively prosecute international trade crimes. The U.S. textile and apparel supply chain has been severely harmed by rampant trade fraud, including an onslaught of imported products made with forced labor, which circumvent the U.S. ban on these imports, fraudulent rules of origin claims under our free trade agreements, and evasion of duties through abuse of the de minimis trade loophole. This had resulted in the closure of 18 textile plants over the past several months and job losses, combined with closures in Western Hemisphere trade partners who have suffered tens of thousands of job losses. We believe this bipartisan legislation is a critical step forward in confronting such massive fraud and will serve to hold bad actors accountable and help shield our vital domestic industries from these crimes.” – Kim Glas, NCTO President and CEO

“The Protecting American Industry and Labor from International Trade Crimes Act of 2024 establishes a new framework within the Department of Justice (DOJ) to ensure compliance with trade laws meant to uphold justice, including the Uyghur Forced Labor Prevention Act (UFLPA). The UFLPA has set a strong precedent to prevent the American market from being tainted by forced labor. This legislation goes a step further in holding violators accountable and closing accountability gaps in the current system. No one should turn a blind eye to the ongoing Uyghur genocide and CCP state-sponsored exploitation of Uyghur people for forced labor. Those who continue to undermine the UFLPA and existing trade laws, should face appropriate consequences. Campaign for Uyghurs urges the swift passage of this critical legislation, which centers transparency in actions taken to ensure the American market is protected from trade crimes.” – Campaign for Uyghurs

“Right now, CPA member companies are forced to compete with Chinese and other foreign entities that are committing trade fraud and other criminal activities that are directly harming U.S. producers and American workers. Earlier this year, DHS raided Sunsong North America in Moraine, Ohio, the U.S. subsidiary of China’s Qingdao Sunsong, an automobile parts manufacturer that is currently under investigation by federal authorities for trade fraud. This underscores the urgent need for the Department of Justice to have enhanced authority and resources to prosecute international trade crimes effectively, thereby protecting American manufacturers and workers from malicious foreign entities intent on displacing them. Congress should swiftly pass this bipartisan legislation.” – Michael Stumo, CEO of Coalition for a Prosperous America

“The Forging Industry Association strongly supports the Protecting American Industry and Labor from International Trade Crimes Act to prosecute the criminal actions of the Chinese Communist Party and those who violate our trade laws to undercut American manufacturing. Whether foreign or domestic, this bill will take trade criminals head on and strengthen the U.S. industrial base by giving the U.S. Government the tools it needs to prosecute violators.” – Forging Industry Association, Independence, Ohio

The Protecting American Industry and Labor from International Trade Crimes Act has also been endorsed by the United Steelworkers & AFL-CIO.

Background:

1. Establishes a new task force, named program, or similar structure within DOJ’s Criminal Division to investigate and prosecute trade-related crimes.
2. Enhances nationwide responses to trade-related offenses by providing training and technical assistance to other federal, state, and local law enforcement agencies, expanding investigations and prosecutions, and collaborating with international partners.
3. Requires the Attorney General to submit an annual report to Congress assessing the DOJ’s efforts, statistics on trade-related crimes, and fund utilization.