On November 23, 2022, Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) that mandates CBP personnel at all U.S. ports of entry detain raw sugar and sugar-based products produced in the Dominican Republic by Central Romana Corporation Limited (Central Romana). This WRO followed an investigation that reasonably indicated Central Romana uses forced labor in its operations in the Dominican Republic. The WRO will likely have an impact on the sugar market as, according to an April 2022 report by the U.S. Department of Agriculture (USDA), Central Romana is the largest sugar producer in the Dominican Republic, accounting for approximately 59% of the Dominican sugar market in 2021-22 and resulted in 62.84% of the U.S. tariff rate quota for raw sugar in fiscal year 2021.

CBP issued the WRO upon identifying five of the International Labor Organization’s 11 indicators of forced labor in Central Romana’s operations: (i) abuse of vulnerability, (ii) isolation, (iii) withholding of wages, (iv) abusive working and living conditions, and (v) excessive overtime. Accordingly, the WRO is authorized under 19 U.S.C. §1307, which prohibits the importation of merchandise produced, in whole or in part, by convict labor, forced labor, and/or indentured labor, including forced or indentured child labor.

CBP’s WRO follows a myriad of activity aimed to raise awareness of forced labor in global supply chains, including a September 2022 update by the U.S. Department of Labor to its List of Goods Produced by Child Labor or Forced Labor to include sugarcane from the Dominican Republic. According to CBP Acting Commissioner Troy Miller, “[t]he agency will continue to set a high global standard by aggressively investigating allegations of forced labor in U.S. supply chains and keeping tainted merchandise out of the United States.”

With the WRO against Central Romana, CBP now oversees the enforcement of 55 WROs and nine Findings.

Photo of Scott E. Diamond** Scott E. Diamond**

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor…

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor compliance, corporate anti-boycott and antibribery compliance, national security investigations, and foreign direct investment in the United States.

**Not licensed to practice law.

Photo of Francesca M.S. Guerrero Francesca M.S. Guerrero

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some…

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some of their most challenging international transactions, involving dealings in high-risk jurisdictions or with high-risk counterparties. Francesca also counsels companies through all phases of internal investigations of potential trade and antibribery violations and represents companies across industries before related government agencies.

Photo of Samir D. Varma Samir D. Varma

Samir advises multinational corporations on export controls, economic sanctions and customs, and counsels individuals and corporations on the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. He represents clients in enforcement actions before U.S. regulatory agencies and conducts corporate internal investigations.

Photo of William L. Matthews** William L. Matthews**

Bill has 40 years of experience in international trade. He assists the group’s lawyers in advising clients on matters regarding customs law, regulations and procedures; antidumping and countervailing duty proceedings; import and export policies; and WTO issues.

**Not licensed to practice law.

Photo of Aaron C. Mandelbaum Aaron C. Mandelbaum

Aaron focuses his practice on advising clients on compliance with international economic sanctions, export controls, and U.S. import laws and regulations. He is also involved in assisting clients with complex cross-border transactions, anti-dumping and countervailing duty litigation, utilization of international and preferential trade…

Aaron focuses his practice on advising clients on compliance with international economic sanctions, export controls, and U.S. import laws and regulations. He is also involved in assisting clients with complex cross-border transactions, anti-dumping and countervailing duty litigation, utilization of international and preferential trade agreements, and customs classifications. Most recently, Aaron has counseled clients navigating requirements under the Export Administration Regulations.