Report on Supply Chain Compliance

  1. US federal agencies actively monitoring and enforcing coronavirus-related compliance

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    Fraud has increased dramatically during the pandemic as companies try to profit off of the skyrocketing demand for medical and cleaning supplies. Due to years of just-in-time supply chains that valued speed over inventory, as well as decades of globalization that led corporate executives to seek cheaper materials and labor outside of the developed world, medical and disinfectant supply chains are spread thin and have proven too inflexible to effectively meet demand...

  2. Vetting suppliers during a pandemic

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Karen Kroll  | September 17, 2020 

    How does an organization conduct due diligence on vendors during a pandemic? It’s a question that supply chain professionals are asking more often these days as their organizations shift production in response to changes in suppliers’ operations and customer demand. “Performing due diligence during [the COVID-19 pandemic] isn’t easy, with no travel budgets and many plants secured to outside visitors,” said Sarah Rathke, partner with Squire Patton Boggs and an expert in complex supply chain disputes...

  3. UK revises deadlines for REACH compliance

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    This month, the United Kingdom revised the deadlines[1] for companies registering chemical data with the U.K. Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation. The original deadlines called for downstream users of covered chemicals to notify their suppliers, the government, and other stakeholders within 180 days of Jan. 1, 2021, when the new U.K. REACH regulation goes into effect. Full registration, including a full data package regarding all covered chemicals entering the U.K. market, was initially due within two years following the 180-day notification deadline...

  4. Proposed Australian law targets Google and Facebook

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    The Australian Competition and Consumer Commission developed a news media bargaining code[1] to address a perceived bargaining power imbalance between Australian media organizations and large digital platforms, specifically Google Inc. and Facebook. The release of the draft code in July, followed by a public comment period that ended Aug. 28, comes after the Australian government announced in April that global tech giants should pay for Australian content...

  5. Switzerland cancels Privacy Shield

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    Following the European Court of Justice’s decision to strike down the EU-US Privacy Shield mechanism for data transfer,[1] the Swiss Federal Data Protection and Information Commissioner reviewed the decision and came to the same conclusion.[2] Data transfers between the European Union and the United States are now in regulatory limbo as the EU side has deemed the U.S. data protection framework inadequate—primarily due to surveillance concerns—while the U.S. still acknowledges Privacy Shield. No new mechanism has yet come forward besides standard contractual clauses...

  6. US trade representative to investigate Mexican fruit and vegetable exports

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    The Office of the U.S. Trade Representative, the Department of Agriculture and the Department of Commerce are taking action after hearings in August that found a possible threat to domestic producers of seasonal fruits and vegetables from Mexican imports. According to a Sept. 1 news release,[1] more than 60 witnesses testified to the threat of cheap imports, especially following the implementation of the United States-Mexico-Canada Agreement[2] in July...

  7. Timberland announces plan for products to be net positive for nature by 2030

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    In a Sept. 1 news release,[1] Timberland vowed to design 100% of its products for circularity and ensure that 100% of all materials used to make the products are sourced from regenerative agriculture. The goals are in line with Timberland’s recent actions regarding environmental, social and governance work, and its goals to create a sustainable and transparent supply chain...

  8. Chinese tax software contains malware

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    In June of 2020, Trustwave SpiderLabs, a cybersecurity firm, announced it had found malware on tax software[1] downloaded by a client. The malware was embedded in software that foreign companies are required to use in order to do business in China. The software is produced by the Golden Tax Department of Aisino Corporation...

  9. Seafood company implicated in false labeling scam

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    The treasurer of a North Carolina seafood company, Garland F. Fulcher Seafood Co. Inc. (Garland Fulcher), conspired to mislabel seafood as being domestically produced when some of the seafood processed and sold by the company was cheaper foreign imports. The United States Department of Justice specifically mentioned blue crab, which has been the target for mislabeling and other scams for some time, in a news release.[1]...

  10. US sanctions ICC personnel

    Report on Supply Chain Compliance Volume 3, Number 18. September 17, 2020  | Author: Sascha Matuszak  | September 17, 2020 

    In an unprecedented move, the United States placed the International Criminal Court (ICC) director of jurisdiction, complementary and cooperation division, as well as its chief prosecutor, on the Office of Foreign Assets Control’s Specially Designated Nationals list.[1] The move blocks all the designated individuals’ assets and prevents U.S. citizens from doing business with them...

  11. CBP continues to enforce forced labor provisions

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    On Aug. 13, United States Customs and Border Protection (CBP) announced[1] it had collected USD 575,000 in penalties from PureCircle USA Inc. for importing goods manufactured using forced labor. The penalty is significant not due to the amount collected—which, according to PureCircle,[2] was less than 7% of what the CBP sought—but rather due to the precedent the penalty set and to the damage the enforcement action did to PureCircle’s business...

  12. Despite temporary waiver granted to DOD, Section 889 remains in full effect

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: By Sascha Matuszak  | September 03, 2020 

    On Aug. 12, Director of National Intelligence John Ratcliffe granted the Pentagon a temporary waiver to the prohibitions under Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019[1] to further assess a broader waiver request from the U.S. Department of Defense (DOD)...

  13. US-Canada trade war threatens WTO

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    The World Trade Organization (WTO) ruled[1] Aug. 24 in favor of Canada in a dispute with the United States over lumber exports. The U.S. claimed that Canada was subsidizing lumber exports, justifying tariffs, but that claim was rejected by a WTO panel. The United States Trade Representative rejected the ruling,[2] called into question the WTO and its practices, and stated it was “evaluating options in response to the panel report.”...

  14. South Africa's cigarette ban: A lesson in how not to create traceable supply chains

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    The South African government imposed a ban on cigarettes and alcohol[1] during the COVID-19 pandemic in an effort to mitigate risks to citizens’ health and help prevent the spread of COVID-19. Unfortunately, according to a study[2] by the Research Unit on the Economics of Excisable Products (REEP) at the University of Cape Town, illicit sales have boomed as smugglers fill the space created by the ban...

  15. Report discusses supply chain diversification and challenges in a post-pandemic world

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    A report[1] released by consulting firm Baker McKenzie in collaboration with Silk Road Associates studied the causes and effects of continued supply chain disruption due to protectionist policies, the COVID-19 pandemic, and trade wars between major world economies. The report found that although companies are considering diversifying operations outside of China, the lure of the world’s biggest market, as well as the challenges of restoring complex supply chains, means the predicted dramatic exodus out of China has not materialized...

  16. Cybersecurity firm releases report on increased hacking during pandemic

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    Resilience360 has released a report, COVID-19 Pandemic Creates Opportunity for Innovative Cyber Threat Campaigns,[1] that discusses the skyrocketing hacking attempts during the pandemic and ways to mitigate the risk of data breaches. The report found that the two most common methods of hacking during the pandemic are phishing and ransomware...

  17. New Zealand startup to open facility to extract precious metals from e-waste

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    The United Kingdom (UK) will be home to its first commercial refinery for extracting precious metals from electronic waste. The refinery will use bacteria-based processes instead of the more environmentally harmful cyanide-based processes to remove precious metals—including gold, palladium, silver and copper—from electronic waste (e-waste). The refinery is part of the UK’s plan to build a circular economy and reduce its reliance on exporting waste to other countries for recycling...

  18. Facebook looks to settle lawsuit for USD 650 million

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    A lawsuit filed in Illinois alleged that Facebook illegally collected and stored biometric data of millions of users without their consent in violation of the state’s Biometric Information Privacy Act.[1] Facebook was able to collect and store the data through a function that allowed users to recognize and tag friends. The company has offered USD 650 million to settle the lawsuit, and the court has agreed preliminarily to the offer...

  19. US and EU agree to lower tariffs

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    The United States Trade Representative Robert Lighthizer and his European counterpart, European Union (EU) Trade Commissioner Phil Hogan, released a joint statement[1] on Aug. 21 announcing a reduction in tariffs on more than USD 250 million in goods. According to the news release, “the EU will eliminate tariffs on imports of U.S. live and frozen lobster products” worth more than USD 111 million in 2017 while the U.S. “will reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 million, including certain prepared meals, certain crystal glassware, surface preparations,...

  20. Montreal dockworkers strike for more pay, better hours

    Report on Supply Chain Compliance Volume 3, Number 17. September 03, 2020  | Author: Sascha Matuszak  | September 03, 2020 

    Dockworkers of the Canadian Union of Public Employees Local 375 have been on strike for two weeks, disrupting supply chain operations[1] in the second largest port in Canada. “Montreal’s port handles more than US$75 billion of merchandise a year, including more than 2 million metric tons of iron ore.” The port is the country’s main maritime gateway for trade with Europe...

  21. European Court strikes down Privacy Shield

    Report on Supply Chain Compliance Volume 3, Number 16. August 20, 2020  | Author: Sascha Matuszak  | August 20, 2020 

    On July 16, the European Court of Justice ruled on a landmark case[1] brought by privacy activist Max Schrems. The case is part of an ongoing campaign by Schrems to clarify and test the GDPR regulatory framework...

  22. The USMCA's impact on supply chain compliance

    Report on Supply Chain Compliance Volume 3, Number 16. August 20, 2020  | Author: Karen Kroll  | August 20, 2020 

    The United States-Mexico-Canada Agreement (USMCA), which went into effect July 1, 2020, contains multiple provisions that will affect supply chains. While the U.S. Customs and Border Protection has stated that it recognizes businesses need time to adjust to the new agreement and will “show restraint in enforcement” through 2020,[1] supply chain and compliance professionals will want to start now in reviewing their operations to ensure they’re in compliance...

  23. SCIP: The biggest database in the world

    Report on Supply Chain Compliance Volume 3, Number 16. August 20, 2020  | Author: Sascha Matuszak  | August 20, 2020 

    This is part of an ongoing series of articles on the EU Green Deal, the Waste Framework Directive and associated regulations...

  24. Sino-US conflict threatens Balkanization

    Report on Supply Chain Compliance Volume 3, Number 16. August 20, 2020  | Author: Sascha Matuszak  | August 20, 2020 

    The most recent developments in the ongoing political and economic conflicts between China and the United States point toward a possible decoupling of the two largest economies in the world.[1]...

  25. US and Canada rekindle trade war

    Report on Supply Chain Compliance Volume 3, Number 16. August 20, 2020  | Author: Sascha Matuszak  | August 20, 2020 

    United States President Donald Trump announced[1] Aug. 6 that he would be imposing a 10% tariff on aluminum imports, citing national security concerns and a depressed U.S. domestic aluminum industry. Canadian Deputy Prime Minister Chrystia Freeland responded[2] with a list of possible targets for retaliatory tariffs...