HR2310-119

What This Bill Does

The COBALT Supply Chain Act responds to PRC dominance in Democratic Republic of the Congo cobalt and child or forced labor concerns. The findings state that cobalt is essential for lithium-ion batteries used in electric vehicles, phones, laptops, and other electronics; the DRC supplied about 70 percent of global cobalt mine production in 2021; PRC companies owned or financed 15 of 19 DRC cobalt mines; and at least 40,000 children work in DRC artisanal and small-scale mining. The bill declares U.S. policy to enforce Tariff Act section 307, lead efforts against child and forced labor, treat PRC cobalt dominance as a national security concern, and coordinate with Canada and Mexico. CBP must presume that covered goods containing cobalt refined in the PRC are made wholly or partly with child or forced labor and prohibit entry unless the importer proves by clear and convincing evidence that the goods do not contain PRC-refined cobalt; exceptions must be publicly reported within 30 days. The Forced Labor Enforcement Task Force must submit a strategy within 120 days on tracing origin, supply-chain transparency, third-country routing, re-export prevention, technology and third-party verification, and international cooperation. The President must annually certify whether federal vehicle purchases, except Defense Department purchases, are free of parts made or mined with child or forced labor in the DRC or Xinjiang, publish the certification, and make supply-chain documentation available to Members of Congress through DHS.

Who Benefits and How

Congolese child labor victims benefit from a U.S. import rule aimed at goods containing cobalt linked to child or forced labor. Human rights enforcement organizations benefit from a rebuttable presumption and public reporting on exceptions. U.S. Customs and Border Protection benefits from clearer statutory authority to detain or bar covered cobalt goods. Battery supply chain audit staff benefit from demand for clear and convincing evidence and supply-chain documentation. Congressional trade committees benefit from enforcement strategy reports, exception reports, and federal vehicle certifications.

Who Bears the Burden and How

Import compliance staff for PRC-refined cobalt goods must prove by clear and convincing evidence that covered goods do not contain PRC-refined cobalt. PRC cobalt refiners and DRC mines financed by PRC companies face reduced access to the U.S. market. Federal vehicle procurement staff must support annual certifications about child labor and forced labor in vehicle parts. Forced Labor Enforcement Task Force members must produce a strategy on tracing, transparency, third-country routing, and enforcement. CBP officers must implement the presumption, exclusions, reports, and any regulations.

Key Provisions

• Requires CBP to presume covered goods with PRC-refined cobalt are made with child or forced labor.
• Bars covered goods unless importers provide clear and convincing evidence that they lack PRC-refined cobalt.
• Requires public exception reports within 30 days after CBP applies an exception.
• Directs a Forced Labor Enforcement Task Force strategy within 120 days.
• Requires annual federal vehicle certifications excluding parts made or mined with child or forced labor in the DRC or Xinjiang.