COBALT Supply Chain Act

Bill Number

H.R. 2310

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-03-24: Referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-05-29T12:28:59Z

AI-Generated Summary

Purpose of the Legislation

The bill aims to block the entry of goods containing cobalt refined in the People's Republic of China (PRC) into the U.S. market. It creates a presumption that such cobalt originates from child or forced labor in the Democratic Republic of the Congo (DRC), enforcing existing U.S. bans on imports made with forced labor. The goal is to combat human trafficking in supply chains, promote ethical sourcing of critical minerals like cobalt (used in batteries for electric vehicles and electronics), and address national security concerns from PRC dominance in global cobalt processing.

Key Provisions

• Findings (Section 2): Outlines the importance of cobalt in modern technology, with demand expected to surge by 2040. It highlights the DRC's role as the world's top cobalt producer (over 70% in 2021), PRC control over most DRC mines, and widespread child and forced labor in DRC artisanal mining (involving up to 40,000 children). References U.S. State Department reports on DRC's inadequate enforcement against trafficking.

• Statement of Policy (Section 3): Declares U.S. commitment to:
• Enforce Section 307 of the Tariff Act of 1930 (which bans imports made with forced labor).
• Lead global efforts to end child and forced labor, including by prohibiting PRC-linked cobalt imports.
• Treat PRC's cobalt dominance as a national security issue, requiring interagency strategy.
• Coordinate with Mexico and Canada under the USMCA trade agreement to block forced-labor goods, including those from PRC's Xinjiang region.

• Rebuttable Presumption for Covered Goods (Section 4):
• Defines "covered goods" as any products containing cobalt refined in the PRC.
• U.S. Customs and Border Protection (CBP) must presume these goods are made wholly or partly with child or forced labor, prohibiting their import under Section 307.
• Exception: Importers can rebut the presumption with "clear and convincing evidence" (a high legal standard meaning strong, persuasive proof) that the goods lack PRC-refined cobalt; CBP must report such exceptions publicly within 30 days.
• Effective 180 days after enactment; allows CBP to issue regulations; does not limit existing anti-forced-labor measures.

• Enforcement Strategy (Section 5):
• The Forced Labor Enforcement Task Force (FLETF, an interagency group under USMCA law) must submit a report within 120 days of enactment, detailing:
• Strategies to trace origins, enhance supply chain transparency, and block covered goods, including via third countries like Canada or Mexico.
• Measures to seize or destroy denied goods.
• Efforts to address child/forced labor in DRC mining of cobalt and related minerals.
• Report includes lists of covered goods, PRC refiners/miners (noting any Xinjiang operations), U.S. importers, and PRC-linked DRC entities; priority enforcement sectors (e.g., electronics); resource needs; and NGO/private sector coordination.
• Quarterly congressional briefings and updates; unclassified with possible classified annex; sunsets after 8 years or when the President certifies DRC mining is free of child/forced labor.

• Federal Vehicle Purchase Certification (Section 6):
• The President must annually certify (starting 90 days after enactment) that U.S. government-purchased vehicles (except those by the Department of Defense) are free of parts made/mined with child/forced labor from DRC or Xinjiang.
• Certifications submitted to Congress and published in the Federal Register; supply chain documentation available to lawmakers upon request.

• Definitions (Section 7): Clarifies terms like "artisanal and small-scale mining" (manual, low-tech operations), "child labor" (harmful work for those under 18, per International Labour Organization standards), "forced labor" (as defined in existing trade law), and key entities (e.g., DRC, PRC).

Significant Changes to Existing Law

• Builds on Section 307 of the Tariff Act of 1930 by adding a specific, rebuttable presumption for PRC-refined cobalt, shifting the burden of proof to importers rather than requiring U.S. authorities to prove forced labor in each case.
• Introduces mandatory enforcement strategies, entity lists, and federal procurement certifications not previously required for cobalt supply chains.
• Enhances coordination under USMCA (Article 23.6) for forced-labor bans, extending it explicitly to cobalt and third-country transshipments.
• Does not alter core prohibitions but streamlines and targets enforcement, with a sunset clause tied to labor improvements in DRC.

Potential Impacts

• On Government Agencies: Increases workload for CBP (import screening, exception reviews), FLETF (strategy development, updates), and the President (certifications). May require additional funding for tracing technologies and training; promotes interagency collaboration on national security.

• On Citizens: Could raise costs or limit availability of cobalt-dependent products (e.g., electric vehicles, smartphones) if supply chains shift, but aims to protect consumers from goods linked to exploitation. Benefits workers by pressuring global labor standards.

• On International Relations: Strains U.S.-PRC ties by targeting Chinese firms and dominance in critical minerals; pressures DRC to improve mining oversight. Strengthens alliances with Mexico and Canada via USMCA enforcement; signals U.S. leadership on human rights, potentially influencing global trade norms and encouraging ethical sourcing worldwide.

Main Stakeholders Affected

• U.S. Importers and Businesses: Must prove cobalt origins to avoid import bans; impacts electronics, automotive, and battery sectors reliant on global supply chains.
• PRC and DRC Entities: Chinese mining/refining companies and DRC operations face exclusion from U.S. market; artisanal miners (including children) may see indirect benefits from anti-labor-abuse measures.
• U.S. Government: Agencies like CBP, State Department, Commerce, and Defense must implement and report on strategies; federal procurement affected.
• Consumers and NGOs: U.S. buyers of tech/vehicles gain assurance of ethical products; human rights groups can collaborate on enforcement.
• International Partners: Mexico and Canada involved in joint blocking of transshipped goods; global cobalt market players (e.g., other miners) may gain from reduced PRC monopoly.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces trade law (Tariff Act) with targeted presumptions, potentially increasing litigation over "clear and convincing evidence" exceptions; aligns with international standards (e.g., ILO on child labor) without creating new crimes.
• Constitutional: Falls under Congress's commerce clause authority to regulate imports and foreign affairs; no direct free speech or due process issues, as exceptions allow importer challenges.
• Political: Highlights bipartisan concerns over human rights, supply chain vulnerabilities, and PRC influence; could spark debates on trade protectionism vs. ethical enforcement, influencing future critical minerals policy amid U.S. push for domestic/ally sourcing.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Smith, Christopher H. [R-NJ-4]

Cosponsors (1)

Del. Radewagen, Aumua Amata Coleman [R-AS-At Large]

Recent Actions

• 2025-03-24: Referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-03-24: Referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-03-24: Referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-03-24: Introduced in House
• 2025-03-24: Introduced in House

Bill Versions

• China’s Odious and Brutally Atrocious Labor Trafficking Supply Chain Act — issued 2025-03-24 — PDF (13 pages)