IB Union Calendar No. 730 118th CONGRESS 2d Session H. R. 7981 [Report No. 118–895] IN THE HOUSE OF REPRESENTATIVES April 15, 2024 Mr. Smith of New Jersey introduced the following bill; which was referred to the Committee on Ways and Means December 17, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on April 15, 2024 A BILL To ensure that goods made using or containing cobalt extracted or processed with the use of child or forced labor in the Democratic Republic of the Congo do not enter the United States market.

1. Short title This Act may be cited as the Stop China’s Exploitation of Congolese Children and Adult Forced Labor through Cobalt Mining Act . 2. Findings Congress makes the following findings: (1) Cobalt is an essential component of most lithium-ion batteries, which are key components in many smartphones, laptops, and electric vehicles, among other electronic devices. According to the International Energy Agency (IAE), worldwide demand is expected to increase over 1,000 percent for lithium and 600 percent for cobalt by 2040, as demands for alternative energy systems and battery storage are expected to grow significantly during this period. (2) More than one-half of the world’s cobalt resources are in the DRC, which supplied approximately 70 percent of the global cobalt mine production in 2021. (3) Fifteen of the DRC’s 19 cobalt mines are reportedly owned wholly or in part by companies located in the People’s Republic of China. (4) Numerous analysts report significant concerns with forced labor, including forced or indentured child labor, in the DRC mining industry. (5) Approximately 15 to 30 percent of cobalt produced in the DRC comes from artisanal and small-scale mining. An estimated 255,000 miners work in artisanal and small-scale mining in the DRC, of whom at least 40,000 are children. (6) Section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) states that it is illegal to import into the United States “goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part” by forced labor, including forced or indentured child labor. Such merchandise is subject to exclusion or seizure and may lead to criminal investigation of the importer. 3. Investigation (a) In general Not later than 180 days after the date of the enactment of this Act, the Forced Labor Enforcement Task Force, established under section 741 of the United States-Mexico-Canada Agreement Implementation Act ( 19 U.S.C. 4681 ), in consultation with the heads of other relevant Federal agencies, shall complete and submit to the appropriate congressional committees the results of an investigation into the alleged use of forced labor in the cobalt mining industry of the DRC that— (1) contains a strategy for the United States Government to effectively enforce section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) to prevent the importation into the United States of cobalt mined by forced labor that includes measures that— (A) can trace the origin of goods and offer greater supply chain transparency relating to cobalt from the DRC; and (B) ensure that cobalt mined by forced labor does not enter the United States; (2) contains a strategy to ensure that cobalt mined by forced labor does not enter the United States market as goods imported from third countries; and (3) contains a strategy to ensure that cobalt mined by forced labor denied entry to the United States market does not later enter the United States market. (b) Matters to be included The investigation required by subsection (a) shall include the following: (1) A list of— (A) entities in the DRC that potentially mine or process cobalt using forced labor; and (B) categories of downstream products that include cobalt mined in the DRC and are, therefore, identified as priority sectors for enforcement under section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ). (2) Recommendations for efforts, initiatives, and tools and technologies to be adopted to ensure that U.S. Customs and Border Protection can accurately identify and trace cobalt mined by forced labor in the DRC. (3) A description of how the list of entities required by subparagraph (A) of paragraph (1) shall be regularly updated and reported to the appropriate congressional committees. (4) A strategy to coordinate and collaborate with appropriate nongovernmental organizations and private sector entities to implement the enforcement strategy for cobalt mined with forced labor and to create and update the list of entities required in subparagraph (A) of paragraph (1). (c) Form The report required by subsection (a) and any publicly published updates described by subsection (d) shall be submitted in unclassified form, but may include a classified annex, if necessary. (d) Updates After the submission of the strategy required by subsection (a), the Forced Labor Enforcement Task Force shall provide briefings to the appropriate congressional committees on a semiannual basis and, as applicable, on— (1) any updates to the strategy required by subsection (a); (2) any additional actions taken to prevent the importation of cobalt mined with forced labor, including actions described in this Act; and (3) any action U.S. Customs and Border Protection has taken to enforce section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) with respect to cobalt mined in the DRC. (e) Sunset This section shall cease to have effect on the earlier of— (1) the date that is 8 years after the date of the enactment of this Act; or (2) the date on which the President submits to the appropriate congressional committees a determination that forced labor in the DRC mining industry has ended. 4. Definitions In this Act: (1) Appropriate congressional committees The term “appropriate congressional committees” means— (A) the Committee on Ways and Means of the House of Representatives; and (B) the Committee on Finance of the Senate. (2) Artisanal and small-scale mining The term “artisanal and small-scale mining”— (A) means mining with minimal to no mechanization; and (B) includes the use of intensive hand tools. (3) DRC The term “DRC” means the Democratic Republic of the Congo. (4) Forced labor The term “forced labor” has the meaning given that term in section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ).

December 17, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed