WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded the unanimous House passage of the bipartisan Protecting American Industry and Labor from International Trade Crimes Act of 2024. This critical legislation, introduced by Chairman John Moolenaar (R-MI), Ranking Member Raja Krishnamoorthi (D-IL), and Congresswoman Ashley Hinson (R-IA), will help combat international trade crimes by establishing a new task force within the Department of Justice (DOJ) dedicated to prosecuting trade fraud, duty evasion, transshipment, and other trade-related offenses.
Companies based in the People’s Republic of China (PRC) frequently commit trade crimes such as fraud, duty evasion, and transshipment, which undermine U.S. companies and harm American workers. The passage of this bill will enhance U.S. capabilities for detecting, investigating, and prosecuting such violations, making it clear that trade-related crimes will no longer go unpunished.
“The unanimous House passage of this bill is a significant step forward in protecting American manufacturers and workers from malicious foreign trade practices,” said Michael Stumo, CEO of CPA. “We commend Chairman Moolenaar, Ranking Member Krishnamoorthi, Congresswoman Hinson, and all members of the House for their leadership on this important issue. 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. It is now time for the Senate to act swiftly and ensure that this bill becomes law, empowering the DOJ to effectively prosecute international trade crimes and protect American industry.”
Last year, former House Select Committee on the CCP Chairman Mike Gallagher (R-WI) and committee member Representative Darin LaHood (R-IL) urged Department of Homeland Security (DHS) Secretary Alejandro Mayorkas to take action against Qingdao Sunsong—a Chinese auto component manufacturer with a pattern of blatant trade fraud and tariff evasion that has had a catastrophic impact on American manufacturers. In January, DHS raided the facility of Sunsong’s Ohio-based U.S. subsidiary, further highlighting the Chinese company’s coordinated effort to evade trade rules by falsifying the origin of their Chinese-made products through transshipment.
In September, Moolenaar and Krishnamoorthi sent letters to AutoZone, O’Reilly Auto Parts, Genuine Parts Company, Advance Auto Parts, First Brands Group, and Factory Motor Parts raising serious concerns that the firms are purchasing products from Sunsong. The letter documents the mounting evidence that the firm may be illegally transshipping its Made in China products through Thailand into the United States in an effort to evade U.S. customs duties, undermine American producers, and eliminate key American manufacturing jobs.
The Protecting American Industry and Labor from International Trade Crimes Act:
- Establishes a new task force or similar structure within the DOJ’s Criminal Division to investigate and prosecute trade-related crimes.
- 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 allowing for parallel criminal and civil enforcement actions.
- Requires the Attorney General to submit an annual report to Congress assessing the DOJ’s efforts, statistics on trade-related crimes, and fund utilization.
- Authorizes $20,000,000 for FY 2025 to support these efforts with appropriate guardrails.
Click HERE to read bill text.
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