II 

110TH CONGRESS 

1ST SESSION S. 367 

To amend the Tariff Act of 1930 to prohibit the import, export, and sale 

of goods made with sweatshop labor, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 23, 2007 

Mr. DORGAN (for himself, Mr. GRAHAM, Mr. FEINGOLD, Mr. BROWN, Mr. 

BYRD, and Mr. SANDERS) introduced the following bill; which was read 

twice and referred to the Committee on Finance 

A BILL 

To amend the Tariff Act of 1930 to prohibit the import, 

export, and sale of goods made with sweatshop labor, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Decent Working Con5 ditions and Fair Competition Act’’. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 


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1 (1) Violations of core labor standards, as de2 fined under the laws of the United States and the 

3 International Labor Organization, are widespread in 

4 factories that produce goods for sale in the United 

5 States. 

6 (2) Factories that violate core labor standards 

7 are commonly referred to as sweatshops. 

8 (3) Subjecting factory workers to sweatshop 

9 conditions that violate core labor standards is mor10 ally offensive to the American people both in their 

11 roles as consumers and as investors, and is degrad12 ing to workers forced to labor under sweatshop con13 ditions. 

14 (4) Workers have a right to be free of sweat15 shop working conditions. 

16 (5) Consumers have a right to know that the 

17 goods they purchase are not produced in sweatshops. 

18 (6) Businesses have a right to be free from 

19 competition with companies that use sweatshop 

20 labor. 

21 (7) Shareholders have a right to know that 

22 their investments are not supporting sweatshop 

23 labor. 


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1 (8) It is a deceptive trade practice and a form 

2 of unfair competition for a business to sell sweat3 shop goods. 

4 (9) Prohibiting the sale, manufacture, offer for 

5 sale, transportation, and distribution of sweatshop 

6 goods, regardless of the source of the goods, is con7 sistent with the international obligations of the 

8 United States because the prohibition applies equally 

9 to domestic and foreign products and avoids any dis10 crimination among foreign sources of competing 

11 products. 

12 (b) PURPOSES.—The purposes of this Act are to— 

13 (1) prohibit the import, export, or sale of goods 

14 made in factories or workshops that violate core 

15 labor standards; and 

16 (2) prohibit the procurement of sweatshop 

17 goods by the United States Government. 

18 SEC. 3. DEFINITION OF CORE LABOR STANDARDS. 

19 (a) IN GENERAL.—In this Act, the term ‘‘core labor 

20 standards’’ means— 

21 (1) the right of association; 

22 (2) the right to organize and bargain collec23 tively; 

24 (3) a prohibition on the use of any form of 

25 forced or compulsory labor; 


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1 (4) a minimum age for the employment of chil2 dren; and 

3 (5) acceptable conditions of work with respect 

4 to minimum wages, hours of work, and occupational 

5 safety and health. 

6 (b) ACCEPTABLE CONDITIONS.—For purposes of 

7 subsection (a)(5), acceptable conditions of work shall be 

8 determined by the laws, regulations, or competent author9 ity of the country where the labor is performed. 

10 TITLE I—TARIFF ACT OF 1930 

11 SEC. 101. IMPORTATION AND SALE OF SWEATSHOP GOODS 

12 PROHIBITED. 

13 Section 307 of the Tariff Act of 1930 (19 U.S.C. 

14 1307) is amended to read as follows: 

15 ‘‘SEC. 307. PROHIBITION ON IMPORT AND SALE OF CON16 VICT-MADE GOODS AND SWEATSHOP GOODS. 

17 ‘‘(a) DEFINITIONS.—In this section: 

18 ‘‘(1) CONVICT-MADE GOOD.—The term ‘convict19 made good’ means any good, ware, article, or mer20 chandise mined, produced, or manufactured wholly 

21 or in part in any foreign country by convict labor. 

22 ‘‘(2) SWEATSHOP GOOD.—The term ‘sweatshop 

23 good’ means any good, ware, article, or merchandise 

24 mined, produced, or manufactured wholly or in part 

25 in violation of core labor standards as defined in secVerDate Aug 31 2005 20:52 Jan 24, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S367.IS S367

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1 tion 3 of the Decent Working Conditions and Fair 

2 Competition Act. 

3 ‘‘(b) PROHIBITIONS.—It is unlawful for any person 

4 to— 

5 ‘‘(1) import into the United States any convict6 made good; 

7 ‘‘(2) import into, or export from, the United 

8 States any sweatshop good; 

9 ‘‘(3) introduce into commerce, sell, trade, or ad10 vertise in commerce, offer to sell, or transport or 

11 distribute in commerce in the United States, any 

12 sweatshop good.’’. 

13 SEC. 102. WAIVER AUTHORITY. 

14 (a) IN GENERAL.—The President, for reasons of na15 tional interest, may recommend that the application of 

16 section 201 of this Act or section 307(b) (2) and (3) of 

17 the Tariff Act of 1930 (19 U.S.C. 1307) be waived in con18 nection with the goods of any country with respect to 1 

19 or more of the principles and rights defined as core labor 

20 standards in section 3 of this Act. Any such recommenda21 tion shall— 

22 (1) be transmitted to the House of Representa23 tives and the Senate setting forth the President’s 

24 reasons for the waiver; 


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1 (2) include, for each waiver recommendation, a 

2 determination that the waiver is necessary to protect 

3 the national interest of the United States; and 

4 (3) include, for each principle or right for which 

5 a waiver is recommended, an explanation of why the 

6 President recommends waiving application of that 

7 principle or right. 

8 (b) PERIOD OF WAIVER.—A waiver under this sec9 tion shall be effective for a 12-month period unless Con10 gress enacts a joint resolution described in subsection (c). 

11 (c) JOINT RESOLUTION REQUIREMENTS AND PROCE12 DURES.— 

13 (1) RESOLUTION DESCRIBED.—For purposes of 

14 this subsection, the term ‘‘resolution’’ means only a 

15 joint resolution of the two Houses of Congress, the 

16 matter after the resolving clause of which is as fol17 lows: ‘‘That Congress does not approve the waiver of 

18 section 201 of the Decent Working Conditions and 

19 Fair Competition Act or section 307(b) (2) and (3) 

20 of the Tariff Act of 1930 (19 U.S.C. 1307) rec21 ommended by the President to Congress on 

22 lllllll with respect to the application of 

23 lllllll to the goods oflllllll.’’, 

24 with the first blank space being filled with the ap25 propriate date, the second blank space being filled 


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1 with the principle or right to be waived, and the 

2 third blank space being filled with the name of the 

3 country with respect to which the waiver of author4 ity is disapproved. 

5 (2) APPLICATION OF PROCEDURAL PROVI6 SIONS.—The provisions of section 152 (b) through 

7 (f) of the Trade Act of 1974 (19 U.S.C. 2192 (b) 

8 through (f)) shall apply to resolutions described in 

9 paragraph (1). 

10 (3) APPROVAL BY CONGRESS.—If Congress ap11 proves a joint resolution, Congress shall send the 

12 resolution to the President before the end of the 90- 

13 day period beginning on the date that Congress re14 ceives the waiver recommendation described in sub15 section (a). 

16 (4) EFFECT OF VETO.—If the President vetoes 

17 the joint resolution, the resolution is enacted into 

18 law if each House of Congress votes to override the 

19 veto on or before the later of the last day of the 90- 

20 day period referred to in paragraph (3) or the last 

21 day of the 15-day period, excluding any day de22 scribed in section 154(b) of the Trade Act of 1974 

23 (19 U.S.C. 2194(b)), beginning on the date Con24 gress receives the veto message from the President. 


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1 (5) INTRODUCTION.—A joint resolution to 

2 which this subsection applies may be introduced at 

3 any time on or after the date the President trans4 mits to Congress the waiver recommendation de5 scribed in subsection (a). 

6 (d) TERMINATION OR EXTENSION OF WAIVER.—A 

7 waiver with respect to the goods of any country terminates 

8 on the day after the waiver authority granted by this sub9 section ceases to be effective with respect to such country, 

10 unless an extension of the waiver authority is granted. The 

11 President may recommend an extension of the waiver au12 thority in the same manner as the original recommenda13 tion, except that the President may not recommend an ex14 tension later than the date that is 30 days before the waiv15 er authority expires. The President may, at any time, ter16 minate by Executive order any waiver under this section. 

17 TITLE II—FEDERAL TRADE 

18 COMMISSION 

19 SEC. 201. VIOLATION OF FEDERAL TRADE COMMISSION 

20 ACT. 

21 (a) IN GENERAL.—It is unlawful for any person to 

22 introduce into commerce, sell, trade, or advertise in com23 merce, offer to sell or transport or distribute in commerce 

24 any sweatshop good. 


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1 (b) SWEATSHOP GOOD.—For purposes of this title, 

2 the term ‘‘sweatshop good’’ means any good, ware, article, 

3 or merchandise mined, produced, or manufactured wholly 

4 or in part in violation of core labor standards, as defined 

5 in section 3 of this Act. 

6 (c) ENFORCEMENT.— 

7 (1) IN GENERAL.—The Federal Trade Commis8 sion shall enforce the provisions of this section with 

9 respect to the prohibitions under subsection (a) as if 

10 the violation were an unfair or deceptive act or prac11 tice proscribed under section 18(a)(1)(B) of the 

12 Federal Trade Commission Act (15 U.S.C. 

13 57a(a)(1)(B)). 

14 (2) ACTIONS BY THE COMMISSION.—The Com15 mission shall prevent any person from violating this 

16 title in the same manner, by the same means, and 

17 with the same jurisdiction, powers, and duties as 

18 though all applicable terms and provisions of the 

19 Federal Trade Commission Act (15 U.S.C. 41 et 

20 seq.) were incorporated into and made a part of this 

21 title. Any person that violates the provisions of this 

22 title shall be subject to the penalties and entitled to 

23 the privileges and immunities provided in the Fed24 eral Trade Commission Act in the same manner, by 

25 the same means, and with the same jurisdiction, 


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1 power, and duties as though all applicable terms and 

2 provisions of the Federal Trade Commission Act 

3 were incorporated into and made a part of this title. 

4 (3) INVESTIGATIONS.—Notwithstanding any 

5 other provision of law, the Federal Trade Commis6 sion shall investigate any complaint received from a 

7 worker alleging a violation of this title with respect 

8 to a good, ware, article, or merchandise produced by 

9 that worker. 

10 (4) REGULATIONS.—Not later than 180 days 

11 after the date of the enactment of this Act, the Fed12 eral Trade Commission shall publish rules to carry 

13 out the provisions of this title. 

14 SEC. 202. PRIVATE RIGHT OF ACTION. 

15 (a) PRIVATE SUITS.—A person with standing to sue 

16 under subsection (c) may bring a civil action against any 

17 seller of goods, wares, articles, or merchandise on grounds 

18 of violation of section 201. 

19 (b) JURISDICTION.—The United States district 

20 courts shall have jurisdiction, without regard to the 

21 amount in controversy or the citizenship of the parties, 

22 to enforce this section. 

23 (c) STANDING TO SUE.—The following persons have 

24 standing to sue under this section: 


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1 (1) Competitors of the retailer of any good, 

2 ware, article, or merchandise sold in violation of sec3 tion 201. 

4 (2) Investors of the retailer of any good, ware, 

5 article, or merchandise sold in violation of section 

6 201. 

7 (d) DAMAGES; INJUNCTIVE RELIEF; ATTORNEY

8 COSTS AND FEES.— 

9 (1) DAMAGES.—When a violation of section 201 

10 is established in any civil action arising under this 

11 section, the plaintiff shall be entitled to recover 

12 $10,000 per violation or the fair market value of the 

13 goods, whichever is greater. The court may increase 

14 the award of damages if the court finds that the de15 fendant willfully or knowingly violated section 201. 

16 (2) INJUNCTIVE RELIEF.—The plaintiff may 

17 sue for injunctive relief against threatened loss or 

18 damage due to a violation of section 201. 

19 (3) COSTS AND FEES.—The court shall award 

20 the cost of the suit, including reasonable attorneys’ 

21 fees, to a prevailing plaintiff. 

22 (e) INTERAGENCY COOPERATION.—All Federal de23 partments and agencies shall cooperate with the Commis24 sioner of U.S. Customs and Border Protection and the 


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1 Federal Trade Commission, to the extent practicable in 

2 the enforcement of this title. 

3 (f) LIST OF VIOLATORS; DISCLOSURE AND PUBLICA4 TION BY FEDERAL TRADE COMMISSION.—On January 1 

5 and July 1 of each year, the Federal Trade Commission 

6 shall publish in the Federal Register and post on an Inter7 net website the following information: 

8 (1) An alphabetical list of the name, address, 

9 and chief executive officer of each person that has, 

10 during the 2 years prior to publication, violated the 

11 provisions of this title, along with a summary de12 scription of each violation and the cumulative num13 ber of violations by each person on the list. 

14 (2) A detailed description of each violation that 

15 includes the following information: 

16 (A) The name, address, and chief executive 

17 officer of each violator. 

18 (B) The circumstances under which core 

19 labor standards, as defined in section 3 of this 

20 Act, were violated in the course of the mining, 

21 production, or manufacturing of the goods in 

22 question. 


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1 TITLE III—GOVERNMENT 

2 PROCUREMENT 

3 SEC. 301. GOVERNMENT PROCUREMENT OF SWEATSHOP 

4 GOODS PROHIBITED. 

5 (a) AMENDMENT TO FEDERAL PROPERTY AND AD6 MINISTRATIVE SERVICES ACT OF 1949.—Title III of the 

7 Federal Property and Administrative Services Act of 1949 

8 (41 U.S.C. 251 et seq.) is amended by adding at the end 

9 the following new section: 

10 ‘‘SEC. 318. PROHIBITION ON PROCUREMENT OF SWEAT11 SHOP GOODS. 

12 ‘‘(a) CERTIFICATION REQUIREMENT.—The head of 

13 an executive agency shall ensure that each covered con14 tract entered into by such official for the procurement of 

15 property includes a clause that requires the contractor— 

16 ‘‘(1) to certify to the contracting officer that 

17 the contractor has made a good faith effort to deter18 mine whether any product furnished under the con19 tract is a sweatshop good, and that, on the basis of 

20 those efforts, the contractor is unaware that any 

21 such product is a sweatshop good; and 

22 ‘‘(2) to cooperate fully in providing reasonable 

23 access to the contractor’s records, persons, or prem24 ises if requested by the contracting agency, the De25 partment of Homeland Security, or the Department 


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1 of Justice for the purpose of determining whether 

2 any product furnished under the contract is a sweat3 shop good. 

4 ‘‘(b) INVESTIGATIONS.—Whenever a contracting offi5 cer of an executive agency has reason to believe that a 

6 product furnished under a covered contract is a sweatshop 

7 good, the head of the executive agency shall refer the mat8 ter for investigation to the Inspector General of the execu9 tive agency and, as the head of the executive agency or 

10 the Inspector General determines appropriate, to the At11 torney General and the Secretary of Homeland Security. 

12 ‘‘(c) REMEDIES.— 

13 ‘‘(1) IN GENERAL.—The head of an executive 

14 agency may impose remedies as provided in this sub15 section if the head of the executive agency finds that 

16 the contractor— 

17 ‘‘(A) has furnished under a covered con18 tract a product that is a sweatshop good; 

19 ‘‘(B) has submitted a false certification 

20 under subsection (a)(1); or 

21 ‘‘(C) has failed to cooperate with an inves22 tigation under this section. 

23 ‘‘(2) TERMINATION OF CONTRACT.—The head 

24 of an executive agency may terminate a covered con25 tract on the basis of a finding of a violation that ocVerDate Aug 31 2005 20:52 Jan 24, 2007 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S367.IS S367

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1 curs under paragraph (1) after the date the require2 ments of this section are implemented through the 

3 amendment of the Federal Acquisition Regulation 

4 under sections 6 and 25 of the Office of Federal 

5 Procurement Policy Act (41 U.S.C. 405 and 421). 

6 ‘‘(3) DEBARMENT AND SUSPENSION.—The head 

7 of an executive agency may debar or suspend a con8 tractor from eligibility for Federal contracts on the 

9 basis of a finding that the contractor has committed 

10 a violation described in paragraph (1). The debar11 ment period may not exceed 3 years. 

12 ‘‘(4) INCLUSION ON LIST OF PARTIES EX13 CLUDED FROM FEDERAL PROCUREMENT AND NON14 PROCUREMENT PROGRAMS.—The Administrator of 

15 General Services shall include on the List of Parties 

16 Excluded from Federal Procurement and Non17 procurement Programs maintained by the Adminis18 trator under part 9 of the Federal Acquisition Regu19 lation each contractor that is debarred, suspended, 

20 proposed for debarment or suspension, or declared 

21 ineligible by the head of an executive agency on the 

22 basis that the contractor has committed a violation 

23 under paragraph (1). 

24 ‘‘(5) REMEDIES NOT EXCLUSIVE.—This section 

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1 edies available to the head of an executive agency or 

2 any other official of the Federal Government on the 

3 basis of a finding under paragraph (1). 

4 ‘‘(d) DEFINITIONS.—In this section: 

5 ‘‘(1) COVERED CONTRACT.—The term ‘covered 

6 contract’ means a contract for a total amount in ex7 cess of the micro-purchase threshold, as that term is 

8 defined in section 32(f) of the Office of Federal Pro9 curement Policy Act (41 U.S.C. 428(f)). 

10 ‘‘(2) SWEATSHOP GOOD.—The term ‘sweatshop 

11 good’ means all goods, wares, articles, and merchan12 dise mined, produced, or manufactured wholly or in 

13 part in violation of core labor standards, as defined 

14 in section 3 of the Decent Working Conditions and 

15 Fair Competition Act.’’. 

16 (b) AMENDMENT TO TITLE 10, UNITED STATES

17 CODE.— 

18 (1) IN GENERAL.—Chapter 137 of title 10, 

19 United States Code, is amended by adding at the 

20 end the following new section: 

21 ‘‘§ 2334. Prohibition on procurement of sweatshop 

22 goods 

23 ‘‘(a) CERTIFICATION REQUIREMENT.—The head of 

24 an agency shall ensure that each covered contract entered 


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1 into by such official for the procurement of property in2 cludes a clause that requires the contractor— 

3 ‘‘(1) to certify to the contracting officer that 

4 the contractor has made a good faith effort to deter5 mine whether any product furnished under the con6 tract is a sweatshop good, and that, on the basis of 

7 those efforts, the contractor is unaware that any 

8 such product is a sweatshop good; and 

9 ‘‘(2) to cooperate fully in providing reasonable 

10 access to the contractor’s records, persons, or prem11 ises if requested by the contracting agency, the De12 partment of Homeland Security, or the Department 

13 of Justice for the purpose of determining whether 

14 any product furnished under the contract is a sweat15 shop good. 

16 ‘‘(b) INVESTIGATIONS.—Whenever a contracting offi17 cer of an agency has reason to believe that a product fur18 nished under a covered contract is a sweatshop good, the 

19 head of the agency shall refer the matter for investigation 

20 to the Inspector General of the agency and, as the head 

21 of the agency or the Inspector General determines appro22 priate, to the Attorney General and the Secretary of 

23 Homeland Security. 


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1 ‘‘(c) REMEDIES.—(1) The head of an agency may im2 pose remedies as provided in this subsection if the head 

3 of the agency finds that the contractor— 

4 ‘‘(A) has furnished under a covered contract a 

5 product that is a sweatshop good; 

6 ‘‘(B) has submitted a false certification under 

7 subsection (a)(1); or 

8 ‘‘(C) has failed to cooperate with an investiga9 tion under subsection (b). 

10 ‘‘(2) The head of an agency may terminate a covered 

11 contract on the basis of a finding of a violation that occurs 

12 under paragraph (1) after the date the requirements of 

13 this section are implemented through the amendment of 

14 the Federal Acquisition Regulation under sections 6 and 

15 25 of the Office of Federal Procurement Policy Act (41 

16 U.S.C. 405 and 421). 

17 ‘‘(3) The head of an agency may debar or suspend 

18 a contractor from eligibility for Federal contracts on the 

19 basis of a finding that the contractor has committed a vio20 lation described in paragraph (1). The debarment period 

21 may not exceed 3 years. 

22 ‘‘(4) The Administrator of General Services shall in23 clude on the List of Parties Excluded from Federal Pro24 curement and Nonprocurement Programs maintained by 

25 the Administrator under part 9 of the Federal Acquisition 


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1 Regulation each contractor that is debarred, suspended, 

2 proposed for debarment or suspension, or declared ineli3 gible by the head of an agency on the basis that the con4 tractor has committed a violation under paragraph (1). 

5 ‘‘(5) This section shall not be construed to limit the 

6 use of other remedies available to the head of an agency 

7 or any other official of the Federal Government on the 

8 basis of a finding under paragraph (1). 

9 ‘‘(d) DEFINITIONS.—In this section: 

10 ‘‘(1) The term ‘covered contract’ means a con11 tract for a total amount in excess of the micro-pur12 chase threshold, as that term is defined in section 

13 32(f) of the Office of Federal Procurement Policy 

14 Act (41 U.S.C. 428(f)). 

15 ‘‘(2) The term ‘sweatshop good’ means all 

16 goods, wares, articles, and merchandise mined, pro17 duced, or manufactured wholly or in part in violation 

18 of core labor standards, as defined in section 3 of 

19 the Decent Working Conditions and Fair Competi20 tion Act.’’. 

21 (2) CLERICAL AMENDMENT.—The table of con22 tents at the beginning of such chapter is amended 

23 by adding at the end the following new item: 

‘‘2334. Prohibition on procurement of sweatshop goods.’’. 

24 (c) IMPLEMENTATION THROUGH THE FEDERAL AC25 QUISITION REGULATION.—Not later than 120 days after 


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1 the date of the enactment of this Act, the Federal Acquisi2 tion Regulatory Council shall amend the Federal Acquisi3 tion Regulation issued under sections 6 and 25 of the Of4 fice of Federal Procurement Policy Act (41 U.S.C. 405 

5 and 421) to provide for the implementation of the require6 ments of section 318 of the Federal Property of Adminis7 trative Services Act of 1949 and section 2334 of title 10, 

8 United States Code, as added by subsections (a) and (b), 

9 respectively. 

10 (d) REPORT.—Not later than 2 years after the re11 quirements of this section and of section 318 of the Fed12 eral Property of Administrative Services Act of 1949 and 

13 section 2334 of title 10, United States Code, as added by 

14 subsections (a) and (b), respectively, are implemented 

15 through the amendment of the Federal Acquisition Regu16 lation pursuant to subsection (c), the Administrator of 

17 General Services, with the assistance of other executive 

18 agencies, shall submit to the Office of Management and 

19 Budget a report on the actions taken under such sections. 

20 TITLE IV—EFFECT ON STATE 

21 LAW 

22 SEC. 401. RULE OF CONSTRUCTION. 

23 Nothing in this Act or the amendments made by this 

24 Act shall be construed to preempt any law of a State or 

25 political subdivision of a State relating to labor standards 


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1 required in the mining, production, or manufacture of any 

2 good, ware, article, or merchandise purchased by the State 

3 or political subdivision. 

Æ 


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