Notice of Final Determination Updating the List of Products Requiring Federal Contractor Certification as to Forced or Indentured Child Labor Pursuant to Executive Order 13126, 42164-42167 [2010-16886]
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42164
Federal Register / Vol. 75, No. 138 / Tuesday, July 20, 2010 / Notices
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refer to the average spot price over the
twenty-three month period of the
KeySpan Swap (i.e., May, 2006, through
and including March, 2008). This
consists of twenty-two months at
KeySpan’s bid cap, and one month (i.e.,
March, 2008) at the lower statewide
price of $1.05/kW-month.
15. Over those twenty-three months,
the actual average UCAP spot price was
$9.21/kW-month. Based on the
difference between this amount and the
threshold price specified under the
swap agreement (i.e., $7.57/kW-month),
the revenues to KeySpan under the
swap agreement were $1.64/kW-month,
multiplied by the 1800 MW of UCAP
covered by the swap agreement, and
further multiplied by the twenty-three
month effective period of the swap
agreement. This yields a total of
revenues to KeySpan under the swap
agreements of $67.8 million.
16. The FSC’s corresponding
agreement with Astoria specified that, if
the market price for capacity was above
$7.07 per kW-month, Astoria would pay
the FSC the difference, times 1800 MW;
if the market price was below $7.07, the
FSC would pay Astoria the difference,
times 1800 MW. 75 jkaLBgjster at 9948.
17. The differential between the
‘‘trigger’’ prices under the two swap
agreements (i.e., $7.57/kW-month for
KeySpan, and $7.07/kW-month for
Astoria) represented the FSC’s ‘‘stake’’ in
the swap arrangement. Because the
actual average UCAP spot market price
(i.e., $9.21/kW-month) exceeded both
the ‘‘triggers’’ under the swap
agreements, the FSC’s total revenues can
be calculated by multiplying that
differential (i.e., $0.50/kW-month) by
1800 MW, and further multiplying it by
the twenty-three month effective period
of the swap agreements. Multiplying
these figures out yields total revenues to
the FSC of $20.7 million.
18. The FSC’s profits are potentially
relevant because Astoria could have
directly entered into a swap agreement
with a load-serving entity serving New
York City. If such agreement had a
‘‘trigger’’ price of $7.07, the load-serving
entity would have realized revenues of
$89M (i.e., $67 million, plus $21
million). Such revenues would have
inured to the benefit of ratepayers.
Thomas Paynter,
Supervisor of Regulatory Economics,
Office of Regulatory Economics,
Department of Public Service of the
State of New York.
Sworn to before me this 27th day of April,
2010.
Notary Public
Sean Mullany
Notary Public, State of New York
Regis. #02MU6180725
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Qualified in Albany County
My Commission Expires January 14, 2012.
[FR Doc. 2010–16321 Filed 7–19–10; 8:45 am]
BILLING CODE 4410–11–M
DEPARTMENT OF LABOR
Office of the Secretary of Labor
Notice of Final Determination Updating
the List of Products Requiring Federal
Contractor Certification as to Forced
or Indentured Child Labor Pursuant to
Executive Order 13126
AGENCY: Bureau of International Labor
Affairs, Labor.
ACTION: Notice of final determination.
SUMMARY: This final determination
updates the list required by Executive
Order No. 13126 (‘‘Prohibition of
Acquisition of Products Produced by
Forced or Indentured Child Labor’’), in
accordance with the ‘‘Procedural
Guidelines for the Maintenance of the
List of Products Requiring Federal
Contractor Certification as to Forced or
Indentured Child Labor.’’ This notice
sets forth an updated list of products, by
country of origin, which the
Departments of Labor, State and
Homeland Security, have a reasonable
basis to believe might have been mined,
produced, or manufactured by forced or
indentured child labor. Under a final
rule by the Federal Acquisition
Regulatory Council, published January
18, 2001, which also implements
Executive Order No. 13126, Federal
contractors who supply products on this
list are required to certify, among other
things, that they have made a good faith
effort to determine whether forced or
indentured child labor was used to
produce the item.
DATES: This document is effective
immediately upon publication of this
notice.
SUPPLEMENTARY INFORMATION:
I. Background
Executive Order No. 13126 (EO
13126), which was published in the
Federal Register on June 16, 1999 (64
FR 32383), declared that it was ‘‘the
policy of the United States Government
* * * that the executive agencies shall
take appropriate actions to enforce the
laws prohibiting the manufacture or
importation of good, wares, articles, and
merchandise mined, produced or
manufactured wholly or in part by
forced or indentured child labor.’’
Pursuant to EO13126, and following
public notice and comment, the
Department of Labor published in the
January 18, 2001, Federal Register, a
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final list of products (the ‘‘EO List’’),
identified by their country of origin, that
the Department, in consultation and
cooperation with the Departments of
State and Treasury [relevant
responsibilities now within the
Department of Homeland Security], had
a reasonable basis to believe might have
been mined, produced or manufactured
with forced or indentured child labor
(66 FR 5353). In addition to the List, the
Department also published on January
18, 2001, ‘‘Procedural Guidelines for
Maintenance of the List of Products
Requiring Federal Contractor
Certification as to Forced or Indentured
Child Labor’’ (Procedural Guidelines),
which provide for maintaining,
reviewing, and, as appropriate, revising
the EO List (66 FR 5351). On September
11, 2009, in consultation and
cooperation with the Department of
State and the Department of Homeland
Security, the Department of Labor
published an initial determination
proposing to update the EO List in the
Federal Register (74 FR 46794),
explained how the initial determination
was made, and invited public comment
through December 10, 2009. The initial
determination and Procedural
Guidelines can be accessed on the
Internet at https://www.dol.gov/ILAB/
regs/eo13126/main.htm or can be
obtained from: OCFT, Bureau of
International Labor Affairs, Room S–
5317, U.S. Department of Labor, 200
Constitution Avenue, NW., Washington,
DC 20210; telephone: (202) 693–4843;
fax (202) 693–4830.
Pursuant to section 3 of E. O. 13126,
the Federal Acquisition Regulatory
Councils published a final rule in the
Federal Register on January 18, 2001,
providing, amongst other requirements,
that Federal contractors who supply
products that appear on the EO List
issued by the Department of Labor must
certify to the contracting officer that the
contractor, or, in the case of an
incorporated contractor, a responsible
official of the contractor, has made a
good faith effort to determine whether
forced or indentured child labor was
used to mine, produce or manufacture
any product furnished under the
contract and that, on the basis of those
efforts, the contractor is unaware of any
such use of child labor. See 48 CFR
Subpart 22.15.
II. Summary and Discussion of
Significant Comments
Forty three public comments were
received either through written
submissions or through meetings held
with the Department of Labor. All
comments are available for public
viewing at https://www.regulations.gov
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Federal Register / Vol. 75, No. 138 / Tuesday, July 20, 2010 / Notices
(reference Docket ID No. DOL–2009–
0002). In developing the final list of
products, the public comments have
been carefully reviewed and considered.
The following is a summary of the
significant or common comments and
the responses.
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A. Comments Asserting That Forced
Child Labor Is Not Used in the
Production of Products Named on the
List
Multiple comments were received
asserting that child labor and forced or
indentured child labor did not exist or
were not pervasive in the production of
a variety of products. However, these
assertions were not substantiated
through the provision of data or
information to demonstrate that the
assertions were true. When analyzing
comments, the information provided
was reviewed to determine if it negated
the original conclusion published in the
initial determination or if it
demonstrated that forced or indentured
child labor has been significantly
reduced or eliminated. In all cases,
except carpets from India (see below),
such information was not provided.
B. Comments on Efforts To Combat
Forced or Indentured Child Labor
Multiple comments from governments
and industry groups were submitted
that provided detailed descriptions of
legislation, policies and efforts to
combat child labor and forced or
indentured child labor generally, and in
some cases, in particular sectors. This
information was considered carefully
and, while the important role of setting
a solid legislative and policy framework
and implementing initiatives by
governments, industry and third party
groups is clear, information on such
efforts alone, without evidence that
indicates that the efforts had
significantly reduced or eliminated
forced or indentured child labor, was
not sufficient to remove an item from
the EO List. Inclusion on the EO List
indicates that the three Departments
have a reasonable basis to believe forced
or indentured child labor ‘‘might have’’
been used in the production of the
named products and evidence of efforts
alone would not be enough to require
removal of a product from the EO List.
The Department of Labor will continue
to assess the progress of these efforts
and welcomes further information from
the public on the results of these efforts,
in particular, evidence of actions and
initiatives that have significantly
reduced if not eliminated forced or
indentured child labor in the
production of a specific product named
on the list.
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C. Comments on Monitoring and
Auditing Systems
Multiple comments were received
describing efforts by government,
industry and third parties to monitor
and audit the establishments that
produce many of the products named on
the preliminary list. While such
information is important and valuable
in determining compliance with a
variety of labor and other standards, in
most cases, the information received did
not provide sufficient description, data
or evidence to demonstrate that forced
child labor is not being used in the
production process. Examples of
specific limitations of the information
received included, submission of
general and broad statements describing
monitoring and auditing programs
without including details; submissions
only related to products that are
inspected for export rather than
industry as a whole; examples of
individual monitoring and auditing
forms without presentation of and
analysis of overall data collected;
presentation of information only at the
primary factory level and not down the
supply chain; and lack of evidence of
explicit monitoring for forced or
indentured child labor. It is important to
clarify that the EO List does not make
distinctions between products that are
exported or those that are produced for
domestic consumption, nor does it
distinguish between products produced
in a main/final establishment versus
products produced by suppliers and
contractors further down the supply
chain.
One submission did provide
information that addressed many of the
limitations described above. This
submission described the nation-wide,
third party monitoring of registered
carpet looms in India, gave details of the
monitoring program of registered looms
and provided detailed analysis of data
results related to child labor. Such
detailed information on the monitoring
of registered looms provided an analysis
suggesting that child labor, including
forced child labor, has been
significantly reduced in the production
of carpets in India. While the
submission only addressed registered
looms, it provided enough information
to warrant further consideration of the
matter especially given that a
Department of Labor contractor is
undertaking extensive research on child
and forced labor in carpet production in
South Asia, including India. The
Department expects to receive
information on the use of forced child
labor on both registered and
unregistered looms through this
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42165
research and intends to wait until that
time before a final decision is made on
adding carpets from India to the EO List.
D. Comments on Procedures Related to
Publication of the List
A variety of comments were received
related to the methodology and process
used to place products on the EO List,
in particular on the date and reliability
of sources, on the ‘‘reasonable basis to
believe’’ criteria, and on the lack of
perceived consultation prior to
publication of the initial determination
proposing to update EO List.
Concerning the date and reliability of
the sources, the Department of Labor
considered information up to seven
years old at the time of receipt. More
current information has been generally
given priority, and information older
than seven years generally has not been
considered, with the exception of child
labor survey data, which the
Department of Labor has found to be
reliable over a longer period of time.
The Department of Labor’s experience is
that the use of forced or indentured
child labor in a country or in the
production of a particular product
typically persists for many years,
particularly when no meaningful action
is taken to combat it. Information about
such exploitive activities is often
actively concealed and therefore
information that is several years old can
still provide useful context for more
current information. When determining
whether a source should be included,
the following factors were considered
either from primary or secondary
sources: the methodology, prior
publications, degree of familiarity and
experience with international labor
standards, and/or reputation for
accuracy and objectivity.
Some submissions raised concern that
the ‘‘reasonable basis to believe’’
standard is relatively low. This standard
was established in EO13126 and the
Department believes that the standard is
appropriate given the nature of the EO
List and the challenge in finding data.
The EO List does not reflect a
determination that forced or indentured
child labor actually was used to produce
a particular product. Rather, it
establishes the need for further inquiry
by a Federal contractor who wishes to
supply the product, in order to make
sure that forced or indentured child
labor was not, in fact, used. The factors
consider in determining whether a
‘‘reasonable basis to believe’’ exists for
the inclusion of a product on the EO
List are set forth in the Department of
Labor’s January 18, 2001, Procedural
Guidelines (66 FR 5351), as well as the
Department’s September 11, 2009,
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Notice of Initial Determination (74 FR
46794).
Several submissions from both
governments and industry groups
described their frustration at not being
consulted prior to publication of the
initial determination on September 11,
2009. EO13126 does not require the
Department to engage in such
consultations, although the Department
did undertake a series of activities to
gather information from the public on
child labor and forced labor more
broadly prior to publication of the
initial determination, including a public
request for information published in the
Federal Register and a public hearing
on May 28, 2008. Additionally, the
primary purpose of the initial
determination proposing to update the
EO List and the accompanying 90-day
public comment period was to gather
additional information from the public
and a wide variety of stakeholders prior
to publication of the final
determination.
E. Comments Related to Impact of the
List on Industries and Exports
Some comments raised concerns that
being named on the EO List would
negatively affect their trade and export
income. It is important to note that
while the scope of the EO List is global,
the application of EO13126’s
requirements is narrow. The EO only
affects products being procured by the
U.S. Government. It is designed to make
sure that U.S. Federal agencies do not
buy products made with forced or
indentured child labor. The EO
reinforces the current law (the Tariff Act
of 1930, 19 U.S.C. 1307, enforced by the
Department of Homeland Security)
prohibition on the import of products
made with forced or indentured child
labor. There is nothing in the EO that
provides for trade sanctions or penalties
against countries. Rather, EO13126
requires U.S. Federal contractors who
furnish a product on the EO List to
certify that forced or indentured child
labor was not used to make the product.
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F. Comments on Discrepancies Between
the 2001 List and the Current List
Several comments noted that products
are included in the proposed update to
the EO List that were not included in
the existing EO List, most specifically
carpets from India, Nepal and Pakistan.
The research for the current proposed
update to the EO List covers information
published from 2001 onward, which
includes information not available at the
time of the publication of the 2001 EO
List. Therefore, the product lists will not
necessarily be the same as the period of
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review and available data sources are
different.
G. Comments Related to the Trafficking
Victims Protection Reauthorization Act
List of Goods Made With Child Labor or
Forced Labor
Multiple submissions included
information that addressed goods
named on the List of Goods Made with
Child Labor or Forced Labor pursuant to
the 2005 Trafficking Victims Protection
Reauthorization Act (TVPRA List),
which was published on the same date
as the proposed update to the EO List.
The Department would like to clarify
that these two lists are produced under
separate mandates and the public
comment period identified for
submissions relevant to the EO List
initial determination did not apply to
the TVPRA List. EO13126 is intended to
ensure that Federal agencies enforce
laws relating to forced or indentured
child labor in the procurement process.
Thus, the EO List differs from the
TVPRA List, which is intended to
promote efforts to monitor and combat
forced labor and child labor in the
production of goods in foreign
countries. The EO on Federal
procurement applies only to the goods
on the EO List, not to those on the
TVPRA List. In addition, the EO List
covers forced or indentured child labor,
while the TVPRA List focuses on a
broader population, including adults in
forced labor and children in exploitive
labor that is not necessarily forced or
indentured.
While the process for updating the EO
List does not apply to the TVPRA List,
the ongoing maintenance of the TVPRA
list is governed by procedural
guidelines that are available at https://
www.dol.gov/federalregister/
PdfDisplay.aspx?DocId=20376. The
Department of Labor considered all
information received during the EO List
public comment period addressing
goods named on the TVPRA List as an
official TVPRA list submission and
provided that information to the
appropriate Department staff for their
review. Additional information on the
TVPRA List can be found at https://
www.dol.gov/ILAB/programs/ocft/
tvpra.htm.
H. Comments Related to Procurement of
Products Named on the List
Two comments were received urging
additional measures related to
enforcement of EO 13126 and
clarifications related to the EO List. The
Department of Labor’s only mandate
pursuant to the EO is to produce the EO
List in collaboration with the
Departments of State and Homeland
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Security. The enforcement of the
procurement regulation (48 CFR subpart
22.15) issued by the General Services
Administration pursuant to the EO falls
to the various procurement offices in
each of the Executive Branch agencies.
It is up to each agency to determine
what guidance, if any, is provided to
contractors on the EO regulation, as well
as to determine how they monitor
compliance with the EO regulation. Any
changes to the content of regulation fall
under the authority of the General
Services Administration.
Specific areas where clarifications
were requested related to the type and
state of the products listed. It was stated
that product descriptions were often too
broad and it was suggested that
products be named using the
harmonized tariff schedule. We believe
that the descriptions are sufficiently
specific based on the nature of the list
and the types of information that are
available. The EO does not require the
use of the harmonized tariff schedule in
the products list. At this time, the
Departments do not have reason to
believe that the use of such terminology
in the EO List would result in more
efficient implementation of EO 13126.
Additionally, it was requested that the
Department of Labor clarify that 48 CFR
subpart 22.15 only applies to the end
product named on the EO List. It is not
the Department’s role to interpret the
applicability of the regulation on behalf
of the General Services Administration.
However, the Department of Labor can
clarify that the placement of a good on
the EO List depends on the stage of
production at which forced or
indentured child labor was involved.
For example, if forced child labor was
used in the extraction, harvesting,
assembly, or production of raw
materials or component articles, and
these materials or articles are
subsequently used under non-violative
conditions in the manufacture or
processing of a final good, only the raw
materials or component articles are on
the EO List and only for those countries
where they were extracted, harvested,
assembled, or produced. If forced or
indentured child labor was used in both
the production or extraction of raw
materials or component articles and the
manufacture or processing of a final
good, then both the raw materials or
component articles and the final good
are included on the EO List.
III. Final List of Products
We have determined that it would be
appropriate to publish a final list of
products that comprises the products
included in the initial determination,
with the exception of carpets from
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Federal Register / Vol. 75, No. 138 / Tuesday, July 20, 2010 / Notices
India. Other than with regard to the one
exception described above, no new
information was provided through
public comments to negate the original
conclusion or to indicate that forced or
indentured child labor has been
significantly reduced or eliminated in
the production of the listed products.
The basis for including those products
on the list is set forth in the Department
of Labor’s September 11, 2009, notice in
the Federal Register (74 FR 46794). As
noted in the September 11 notice,
information provided in a public
submission by Free the Slaves, alleging
forced or indentured child labor in the
cocoa industry in Cote d’Ivoire, and a
public submission by State Department
Watch, alleging forced or indentured
child labor in the production of eight
products in China, both filed pursuant
to section D of the Procedural
Guidelines (66 FR 5351), was
considered in finalizing the update to
the EO List. This final determination
completes consideration of the two
submissions. The final list of products
appears below.
Based on recent, credible, and
appropriately corroborated information
from various sources, the Department of
Labor, the Department of State, and the
Department of Homeland Security have
concluded that there is a reasonable
basis to believe that the following
products, identified by their country of
origin, might have been mined,
produced, or manufactured by forced or
indentured child labor:
Product
Countries
Bamboo .....................
Beans (green, soy,
yellow).
Brazil Nuts/Chestnuts
Bricks ........................
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Carpets ......................
Charcoal ....................
Coal ...........................
Coca (stimulant plant)
Cocoa ........................
Coffee ........................
Cotton ........................
Cottonseed (hybrid) ..
Diamonds ..................
Electronics .................
Embroidered Textiles
(zari).
Garments ..................
Gold ...........................
Granite ......................
Gravel (crushed
stones).
Pornography ..............
Rice ...........................
Rubber ......................
Shrimp .......................
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Burma.
Burma.
Bolivia.
Burma, China, India,
Nepal, Pakistan.
Nepal, Pakistan.
Brazil.
Pakistan.
Colombia.
Cote d’Ivoire, Nigeria.
Cote d’Ivoire.
Benin, Burkina Faso,
China, Tajikistan,
Uzbekistan.
India.
Sierra Leone.
China.
India, Nepal.
Russia.
Burma, India, Mali.
Burma.
Thailand.
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Stones .......................
Sugarcane .................
Teak ..........................
Tilapia (fish) ..............
Tobacco ....................
Toys ..........................
Countries
India, Nepal.
Bolivia, Burma.
Burma.
Ghana.
Malawi.
China.
The bibliographies providing the basis
for including each product on the list
are available on the Internet at https://
www.dol.gov/ILAB/regs/eo13126/
main.htm.
Signed at Washington, DC, this 7th day of
July 2010.
Sandra Polaski,
Deputy Undersecretary, Bureau of
International Labor Affairs.
[FR Doc. 2010–16886 Filed 7–19–10; 8:45 am]
BILLING CODE 4510–28–P
LEGAL SERVICES CORPORATION
Sunshine Act Meeting of the Board of
Directors
Amended Notice Changes to the
Meeting Time
NOTICE: The Legal Services Corporation
(LSC) is announcing an amendment to
the notice of the meeting of the Board
of Directors. The meeting, originally
noticed to be convened at 11 a.m., on
July 21, 2010, announced in the Federal
Register dated July 16, 2010, Volume
75, Number 136. The amendment is
being made to reflect a change to the
meeting time. There are no other
changes.
AMENDED TIME: The Board of Directors
will meet telephonically on July 21,
2010 commencing at 10:30 a.m., Eastern
Daylight Time.
LOCATION: Legal Services Corporation,
3333 K Street, NW., Washington, DC,
20007, 3rd Floor Conference Center.
PUBLIC OBSERVATION: For all meetings
and portions thereof open to public
observation, members of the public that
wish to listen to the proceedings may do
so by following the telephone call-in
directions given below. You are asked to
keep your telephone muted to eliminate
background noises. From time to time
the Chairman may solicit comments
from the public.
STATUS OF MEETING: Closed. A portion of
the meeting of the Board of Directors
may be closed to the public pursuant to
a vote of the Board so the Board can
consider and perhaps act on the
recommendation of the Search
Committee for LSC President (‘‘Search
Committee’’) regarding selection of an
executive search recruiter.
This closure will be authorized by the
relevant provisions of the Government
in the Sunshine Act [5 U.S.C. 552b(c)(4)
and (6)] and LSC’s implementing
regulation 45 CFR 1622.5(c) 1 and (e).2
A verbatim written transcript will be
made of the closed session of the Board
meeting. However, the transcript of any
portions of the closed session falling
within the relevant provisions of the
Government in the Sunshine Act [5
U.S.C. 552b(c)(4) and (6)] and LSC’s
implementing regulation 45 CFR
1622.5(c) and (e), will not be available
for public inspection. A copy of the
General Counsel’s Certification that in
his opinion the closing is authorized by
law will be available upon request.
Matters To Be Considered
Open Session
1. Approval of the agenda.
2. Consider and act on Resolution
2010–009 which authorizes the Board
Chairman to establish a Fiscal Oversight
Taskforce.
3. Public comment.
Closed Session
4. Consider and act on
recommendation of the Search
Committee for LSC President regarding
selection of an executive search
recruiter.
Open Session
Call-In Directions for Open Session(s):
Argentina, India,
Thailand.
Burkina Faso.
Nigeria.
Nigeria.
15:23 Jul 19, 2010
Product
42167
5. Consider and act on other business.
6. Consider and act on motion to
adjourn meeting.
CONTACT PERSON FOR INFORMATION:
Kathleen Connors, Executive Assistant
to the President, at (202) 295–1500.
Questions may be sent by electronic
mail to
FR_NOTICE_QUESTIONS@lsc.gov.
SPECIAL NEEDS: Upon request, meeting
notices will be made available in
alternate formats to accommodate visual
and hearing impairments. Individuals
who have a disability and need an
accommodation to attend the meeting
• Call toll-free number: 1 (866) 451–
4981;
• When prompted, enter the
following numeric pass code:
5907707348;
• When connected to the call, please
‘‘MUTE’’ your telephone immediately.
1 45 CFR 1622.5(c)—Protects information the
disclosure of which would disclose trade secrets
and commercial or financial information which is
confidential.
2 45 CFR 1622.5(e)–45 CFR 5(e)—Protects
information the disclosure of which would
constitute a clearly unwarranted invasion of
personal privacy.
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]]>Agencies
[Federal Register Volume 75, Number 138 (Tuesday, July 20, 2010)]
[Notices]
[Pages 42164-42167]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-16886]
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DEPARTMENT OF LABOR
Office of the Secretary of Labor
Notice of Final Determination Updating the List of Products
Requiring Federal Contractor Certification as to Forced or Indentured
Child Labor Pursuant to Executive Order 13126
AGENCY: Bureau of International Labor Affairs, Labor.
ACTION: Notice of final determination.
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SUMMARY: This final determination updates the list required by
Executive Order No. 13126 (``Prohibition of Acquisition of Products
Produced by Forced or Indentured Child Labor''), in accordance with the
``Procedural Guidelines for the Maintenance of the List of Products
Requiring Federal Contractor Certification as to Forced or Indentured
Child Labor.'' This notice sets forth an updated list of products, by
country of origin, which the Departments of Labor, State and Homeland
Security, have a reasonable basis to believe might have been mined,
produced, or manufactured by forced or indentured child labor. Under a
final rule by the Federal Acquisition Regulatory Council, published
January 18, 2001, which also implements Executive Order No. 13126,
Federal contractors who supply products on this list are required to
certify, among other things, that they have made a good faith effort to
determine whether forced or indentured child labor was used to produce
the item.
DATES: This document is effective immediately upon publication of this
notice.
SUPPLEMENTARY INFORMATION:
I. Background
Executive Order No. 13126 (EO 13126), which was published in the
Federal Register on June 16, 1999 (64 FR 32383), declared that it was
``the policy of the United States Government * * * that the executive
agencies shall take appropriate actions to enforce the laws prohibiting
the manufacture or importation of good, wares, articles, and
merchandise mined, produced or manufactured wholly or in part by forced
or indentured child labor.'' Pursuant to EO13126, and following public
notice and comment, the Department of Labor published in the January
18, 2001, Federal Register, a final list of products (the ``EO List''),
identified by their country of origin, that the Department, in
consultation and cooperation with the Departments of State and Treasury
[relevant responsibilities now within the Department of Homeland
Security], had a reasonable basis to believe might have been mined,
produced or manufactured with forced or indentured child labor (66 FR
5353). In addition to the List, the Department also published on
January 18, 2001, ``Procedural Guidelines for Maintenance of the List
of Products Requiring Federal Contractor Certification as to Forced or
Indentured Child Labor'' (Procedural Guidelines), which provide for
maintaining, reviewing, and, as appropriate, revising the EO List (66
FR 5351). On September 11, 2009, in consultation and cooperation with
the Department of State and the Department of Homeland Security, the
Department of Labor published an initial determination proposing to
update the EO List in the Federal Register (74 FR 46794), explained how
the initial determination was made, and invited public comment through
December 10, 2009. The initial determination and Procedural Guidelines
can be accessed on the Internet at https://www.dol.gov/ILAB/regs/eo13126/main.htm or can be obtained from: OCFT, Bureau of International
Labor Affairs, Room S-5317, U.S. Department of Labor, 200 Constitution
Avenue, NW., Washington, DC 20210; telephone: (202) 693-4843; fax (202)
693-4830.
Pursuant to section 3 of E. O. 13126, the Federal Acquisition
Regulatory Councils published a final rule in the Federal Register on
January 18, 2001, providing, amongst other requirements, that Federal
contractors who supply products that appear on the EO List issued by
the Department of Labor must certify to the contracting officer that
the contractor, or, in the case of an incorporated contractor, a
responsible official of the contractor, has made a good faith effort to
determine whether forced or indentured child labor was used to mine,
produce or manufacture any product furnished under the contract and
that, on the basis of those efforts, the contractor is unaware of any
such use of child labor. See 48 CFR Subpart 22.15.
II. Summary and Discussion of Significant Comments
Forty three public comments were received either through written
submissions or through meetings held with the Department of Labor. All
comments are available for public viewing at https://www.regulations.gov
[[Page 42165]]
(reference Docket ID No. DOL-2009-0002). In developing the final list
of products, the public comments have been carefully reviewed and
considered. The following is a summary of the significant or common
comments and the responses.
A. Comments Asserting That Forced Child Labor Is Not Used in the
Production of Products Named on the List
Multiple comments were received asserting that child labor and
forced or indentured child labor did not exist or were not pervasive in
the production of a variety of products. However, these assertions were
not substantiated through the provision of data or information to
demonstrate that the assertions were true. When analyzing comments, the
information provided was reviewed to determine if it negated the
original conclusion published in the initial determination or if it
demonstrated that forced or indentured child labor has been
significantly reduced or eliminated. In all cases, except carpets from
India (see below), such information was not provided.
B. Comments on Efforts To Combat Forced or Indentured Child Labor
Multiple comments from governments and industry groups were
submitted that provided detailed descriptions of legislation, policies
and efforts to combat child labor and forced or indentured child labor
generally, and in some cases, in particular sectors. This information
was considered carefully and, while the important role of setting a
solid legislative and policy framework and implementing initiatives by
governments, industry and third party groups is clear, information on
such efforts alone, without evidence that indicates that the efforts
had significantly reduced or eliminated forced or indentured child
labor, was not sufficient to remove an item from the EO List. Inclusion
on the EO List indicates that the three Departments have a reasonable
basis to believe forced or indentured child labor ``might have'' been
used in the production of the named products and evidence of efforts
alone would not be enough to require removal of a product from the EO
List. The Department of Labor will continue to assess the progress of
these efforts and welcomes further information from the public on the
results of these efforts, in particular, evidence of actions and
initiatives that have significantly reduced if not eliminated forced or
indentured child labor in the production of a specific product named on
the list.
C. Comments on Monitoring and Auditing Systems
Multiple comments were received describing efforts by government,
industry and third parties to monitor and audit the establishments that
produce many of the products named on the preliminary list. While such
information is important and valuable in determining compliance with a
variety of labor and other standards, in most cases, the information
received did not provide sufficient description, data or evidence to
demonstrate that forced child labor is not being used in the production
process. Examples of specific limitations of the information received
included, submission of general and broad statements describing
monitoring and auditing programs without including details; submissions
only related to products that are inspected for export rather than
industry as a whole; examples of individual monitoring and auditing
forms without presentation of and analysis of overall data collected;
presentation of information only at the primary factory level and not
down the supply chain; and lack of evidence of explicit monitoring for
forced or indentured child labor. It is important to clarify that the
EO List does not make distinctions between products that are exported
or those that are produced for domestic consumption, nor does it
distinguish between products produced in a main/final establishment
versus products produced by suppliers and contractors further down the
supply chain.
One submission did provide information that addressed many of the
limitations described above. This submission described the nation-wide,
third party monitoring of registered carpet looms in India, gave
details of the monitoring program of registered looms and provided
detailed analysis of data results related to child labor. Such detailed
information on the monitoring of registered looms provided an analysis
suggesting that child labor, including forced child labor, has been
significantly reduced in the production of carpets in India. While the
submission only addressed registered looms, it provided enough
information to warrant further consideration of the matter especially
given that a Department of Labor contractor is undertaking extensive
research on child and forced labor in carpet production in South Asia,
including India. The Department expects to receive information on the
use of forced child labor on both registered and unregistered looms
through this research and intends to wait until that time before a
final decision is made on adding carpets from India to the EO List.
D. Comments on Procedures Related to Publication of the List
A variety of comments were received related to the methodology and
process used to place products on the EO List, in particular on the
date and reliability of sources, on the ``reasonable basis to believe''
criteria, and on the lack of perceived consultation prior to
publication of the initial determination proposing to update EO List.
Concerning the date and reliability of the sources, the Department of
Labor considered information up to seven years old at the time of
receipt. More current information has been generally given priority,
and information older than seven years generally has not been
considered, with the exception of child labor survey data, which the
Department of Labor has found to be reliable over a longer period of
time. The Department of Labor's experience is that the use of forced or
indentured child labor in a country or in the production of a
particular product typically persists for many years, particularly when
no meaningful action is taken to combat it. Information about such
exploitive activities is often actively concealed and therefore
information that is several years old can still provide useful context
for more current information. When determining whether a source should
be included, the following factors were considered either from primary
or secondary sources: the methodology, prior publications, degree of
familiarity and experience with international labor standards, and/or
reputation for accuracy and objectivity.
Some submissions raised concern that the ``reasonable basis to
believe'' standard is relatively low. This standard was established in
EO13126 and the Department believes that the standard is appropriate
given the nature of the EO List and the challenge in finding data. The
EO List does not reflect a determination that forced or indentured
child labor actually was used to produce a particular product. Rather,
it establishes the need for further inquiry by a Federal contractor who
wishes to supply the product, in order to make sure that forced or
indentured child labor was not, in fact, used. The factors consider in
determining whether a ``reasonable basis to believe'' exists for the
inclusion of a product on the EO List are set forth in the Department
of Labor's January 18, 2001, Procedural Guidelines (66 FR 5351), as
well as the Department's September 11, 2009,
[[Page 42166]]
Notice of Initial Determination (74 FR 46794).
Several submissions from both governments and industry groups
described their frustration at not being consulted prior to publication
of the initial determination on September 11, 2009. EO13126 does not
require the Department to engage in such consultations, although the
Department did undertake a series of activities to gather information
from the public on child labor and forced labor more broadly prior to
publication of the initial determination, including a public request
for information published in the Federal Register and a public hearing
on May 28, 2008. Additionally, the primary purpose of the initial
determination proposing to update the EO List and the accompanying 90-
day public comment period was to gather additional information from the
public and a wide variety of stakeholders prior to publication of the
final determination.
E. Comments Related to Impact of the List on Industries and Exports
Some comments raised concerns that being named on the EO List would
negatively affect their trade and export income. It is important to
note that while the scope of the EO List is global, the application of
EO13126's requirements is narrow. The EO only affects products being
procured by the U.S. Government. It is designed to make sure that U.S.
Federal agencies do not buy products made with forced or indentured
child labor. The EO reinforces the current law (the Tariff Act of 1930,
19 U.S.C. 1307, enforced by the Department of Homeland Security)
prohibition on the import of products made with forced or indentured
child labor. There is nothing in the EO that provides for trade
sanctions or penalties against countries. Rather, EO13126 requires U.S.
Federal contractors who furnish a product on the EO List to certify
that forced or indentured child labor was not used to make the product.
F. Comments on Discrepancies Between the 2001 List and the Current List
Several comments noted that products are included in the proposed
update to the EO List that were not included in the existing EO List,
most specifically carpets from India, Nepal and Pakistan. The research
for the current proposed update to the EO List covers information
published from 2001 onward, which includes information not available at
the time of the publication of the 2001 EO List. Therefore, the product
lists will not necessarily be the same as the period of review and
available data sources are different.
G. Comments Related to the Trafficking Victims Protection
Reauthorization Act List of Goods Made With Child Labor or Forced Labor
Multiple submissions included information that addressed goods
named on the List of Goods Made with Child Labor or Forced Labor
pursuant to the 2005 Trafficking Victims Protection Reauthorization Act
(TVPRA List), which was published on the same date as the proposed
update to the EO List. The Department would like to clarify that these
two lists are produced under separate mandates and the public comment
period identified for submissions relevant to the EO List initial
determination did not apply to the TVPRA List. EO13126 is intended to
ensure that Federal agencies enforce laws relating to forced or
indentured child labor in the procurement process. Thus, the EO List
differs from the TVPRA List, which is intended to promote efforts to
monitor and combat forced labor and child labor in the production of
goods in foreign countries. The EO on Federal procurement applies only
to the goods on the EO List, not to those on the TVPRA List. In
addition, the EO List covers forced or indentured child labor, while
the TVPRA List focuses on a broader population, including adults in
forced labor and children in exploitive labor that is not necessarily
forced or indentured.
While the process for updating the EO List does not apply to the
TVPRA List, the ongoing maintenance of the TVPRA list is governed by
procedural guidelines that are available at https://www.dol.gov/federalregister/PdfDisplay.aspx?DocId=20376. The Department of Labor
considered all information received during the EO List public comment
period addressing goods named on the TVPRA List as an official TVPRA
list submission and provided that information to the appropriate
Department staff for their review. Additional information on the TVPRA
List can be found at https://www.dol.gov/ILAB/programs/ocft/tvpra.htm.
H. Comments Related to Procurement of Products Named on the List
Two comments were received urging additional measures related to
enforcement of EO 13126 and clarifications related to the EO List. The
Department of Labor's only mandate pursuant to the EO is to produce the
EO List in collaboration with the Departments of State and Homeland
Security. The enforcement of the procurement regulation (48 CFR subpart
22.15) issued by the General Services Administration pursuant to the EO
falls to the various procurement offices in each of the Executive
Branch agencies. It is up to each agency to determine what guidance, if
any, is provided to contractors on the EO regulation, as well as to
determine how they monitor compliance with the EO regulation. Any
changes to the content of regulation fall under the authority of the
General Services Administration.
Specific areas where clarifications were requested related to the
type and state of the products listed. It was stated that product
descriptions were often too broad and it was suggested that products be
named using the harmonized tariff schedule. We believe that the
descriptions are sufficiently specific based on the nature of the list
and the types of information that are available. The EO does not
require the use of the harmonized tariff schedule in the products list.
At this time, the Departments do not have reason to believe that the
use of such terminology in the EO List would result in more efficient
implementation of EO 13126. Additionally, it was requested that the
Department of Labor clarify that 48 CFR subpart 22.15 only applies to
the end product named on the EO List. It is not the Department's role
to interpret the applicability of the regulation on behalf of the
General Services Administration. However, the Department of Labor can
clarify that the placement of a good on the EO List depends on the
stage of production at which forced or indentured child labor was
involved. For example, if forced child labor was used in the
extraction, harvesting, assembly, or production of raw materials or
component articles, and these materials or articles are subsequently
used under non-violative conditions in the manufacture or processing of
a final good, only the raw materials or component articles are on the
EO List and only for those countries where they were extracted,
harvested, assembled, or produced. If forced or indentured child labor
was used in both the production or extraction of raw materials or
component articles and the manufacture or processing of a final good,
then both the raw materials or component articles and the final good
are included on the EO List.
III. Final List of Products
We have determined that it would be appropriate to publish a final
list of products that comprises the products included in the initial
determination, with the exception of carpets from
[[Page 42167]]
India. Other than with regard to the one exception described above, no
new information was provided through public comments to negate the
original conclusion or to indicate that forced or indentured child
labor has been significantly reduced or eliminated in the production of
the listed products. The basis for including those products on the list
is set forth in the Department of Labor's September 11, 2009, notice in
the Federal Register (74 FR 46794). As noted in the September 11
notice, information provided in a public submission by Free the Slaves,
alleging forced or indentured child labor in the cocoa industry in Cote
d'Ivoire, and a public submission by State Department Watch, alleging
forced or indentured child labor in the production of eight products in
China, both filed pursuant to section D of the Procedural Guidelines
(66 FR 5351), was considered in finalizing the update to the EO List.
This final determination completes consideration of the two
submissions. The final list of products appears below.
Based on recent, credible, and appropriately corroborated
information from various sources, the Department of Labor, the
Department of State, and the Department of Homeland Security have
concluded that there is a reasonable basis to believe that the
following products, identified by their country of origin, might have
been mined, produced, or manufactured by forced or indentured child
labor:
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Product Countries
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Bamboo.................................... Burma.
Beans (green, soy, yellow)................ Burma.
Brazil Nuts/Chestnuts..................... Bolivia.
Bricks.................................... Burma, China, India, Nepal,
Pakistan.
Carpets................................... Nepal, Pakistan.
Charcoal.................................. Brazil.
Coal...................................... Pakistan.
Coca (stimulant plant).................... Colombia.
Cocoa..................................... Cote d'Ivoire, Nigeria.
Coffee.................................... Cote d'Ivoire.
Cotton.................................... Benin, Burkina Faso, China,
Tajikistan, Uzbekistan.
Cottonseed (hybrid)....................... India.
Diamonds.................................. Sierra Leone.
Electronics............................... China.
Embroidered Textiles (zari)............... India, Nepal.
Garments.................................. Argentina, India, Thailand.
Gold...................................... Burkina Faso.
Granite................................... Nigeria.
Gravel (crushed stones)................... Nigeria.
Pornography............................... Russia.
Rice...................................... Burma, India, Mali.
Rubber.................................... Burma.
Shrimp.................................... Thailand.
Stones.................................... India, Nepal.
Sugarcane................................. Bolivia, Burma.
Teak...................................... Burma.
Tilapia (fish)............................ Ghana.
Tobacco................................... Malawi.
Toys...................................... China.
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The bibliographies providing the basis for including each product
on the list are available on the Internet at https://www.dol.gov/ILAB/regs/eo13126/main.htm.
Signed at Washington, DC, this 7th day of July 2010.
Sandra Polaski,
Deputy Undersecretary, Bureau of International Labor Affairs.
[FR Doc. 2010-16886 Filed 7-19-10; 8:45 am]
BILLING CODE 4510-28-P
