I 118th CONGRESS 1st Session H. R. 4443 IN THE HOUSE OF REPRESENTATIVES June 30, 2023 Mr. Smith of New Jersey introduced the following bill; which was referred to the Committee on Foreign Affairs , and in addition to the Committees on Ways and Means , and the Judiciary , 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 A BILL To ensure that certain goods made with child labor or forced labor in the Democratic Republic of the Congo do not enter the United States market, to counter control of strategic metals and minerals by the People’s Republic of China, and for other purposes.

1. Short title This Act may be cited as the Countering China’s Exploitation of Strategic Metals and Minerals and Child and Forced Labor in the Democratic Republic of the Congo Act . 2. Findings Congress finds the following: (1) Cobalt is an essential component of lithium-ion batteries, which are predominantly used for electric vehicles, smartphones, and laptops, among other electronic devices. According to the International Energy Agency, the world is expected to see a 40-fold increase in lithium demand and a 20-fold increase in cobalt demand by 2040, as the demand for electric vehicles is expected to grow significantly during this period. (2) In 2021, global sales of electric vehicles doubled compared to 2020, reaching its new record of 6.6 million, and bringing the total number of electric vehicles in use to 16.5 million electric vehicles by the end of 2021. The People’s Republic of China ( PRC ) accounted for half of those sales, with over 150 percent growth in electric vehicle sales in that country compared to 2020. In the first quarter of 2022, an additional 2 million electric vehicles were sold worldwide, showing strong continued growth. While Europe and the United States saw increased sales, the PRC experienced an unprecedented tripling of electric vehicle sales of 3.3 million in 2022, accounting for approximately one-half of the global sales. (3) The concentration of global cobalt supply and production in the Democratic Republic of the Congo ( DRC ) as well as civil unrest and governmental corruption, heighten the vulnerabilities and risks of global supply chain disruptions. More than one-half of the world’s cobalt resources are in the DRC, which supplies approximately 70 percent of the global cobalt mine production in 2021. The DRC remains beset by conflicts and pervasive official corruption. Firms based in the PRC hold a dominant position in DRC’s cobalt sector, according to the White House. On the foundation of an unstable state, more than one-half of lithium and cobalt global supplies are processed and refined in the PRC, where more than 75 percent of all lithium-ion batteries are produced. About 50 percent of all batteries are for consumption in the PRC. (4) Lithium deposits have been identified in the DRC, with exploration ongoing. It is estimated that the DRC can begin lithium production as early as 2023. (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) The child miners in the DRC, some as young as 6 years of age, working in artisanal and small-scale mines, are subjected to the worst forms of forced manual labor. They work in harsh and life-threatening conditions, and are vulnerable to physical injuries, coercion, and abuse in addition to exposure to harmful toxins. (7) Amnesty International reported in 2016 that child miners in the DRC’s cobalt sector worked for up to 12 hours a day in the mines without the most basic protective gear, such as gloves and face masks which would protect them from lung and skin disease. Many children reportedly worked for prolonged periods underground, including at sites with inadequate ventilation and a high risk of fatal mineshaft collapse. Child miners interviewed by Amnesty International reported working for up to 12 hours a day in the mines, carrying heavy loads and being paid less than two dollars per day. (8) According to a tally by Amnesty International, based on news reports, at least 80 underground miners working in artisanal and small-scale mining died in southeastern DRC between September 2014 and December 2015. Amnesty International assessed that the true figure is unknown as many accidents go unrecorded and bodies are left buried in the rubble . To this day, there is no official tally of the total number of such deaths. (9) As of 2020, 15 of the 19 cobalt mines in the DRC were owned or financed by PRC companies. (10) The 5 biggest PRC-owned mining companies in the DRC have lines of credit from PRC state-owned banks totaling $124 billion. (11) China Molybdenum, a PRC mining and trading company, is the second-largest producer of cobalt worldwide. In 2016, it purchased Tenke Fungurume, which controlled one of the largest cobalt reserves in the world. More than $1.59 billion of the $2.65 billion came from loans from PRC state-owned banks. (12) Under PRC ownership of mining companies in the DRC, there has been reportedly a significant rise in serious injuries. There are questions regarding proper oversight of safety in the mines, as well as coverups of deaths and injuries. (13) In July 2021, PRC mining company managers in Kolwezi ordered the brutal beating and whipping of miners. (14) On July 14, 2022, the Tom Lantos Human Rights Commission, a bipartisan congressional commission, held a hearing on Child Labor and Human Rights Violations in the Mining Industry of the Democratic Republic of Congo . The hearing highlighted the concerns of child and forced labor in the DRC, the disregard of worker safety, and environmental degradation. It also highlighted PRC domination of strategic metals and minerals in the global supply chain. (15) In the 2022 Trafficking in Persons Report, the Department of State emphasized that In the DRC, artisanal and small-scale mining of cobalt has been associated with forced child labor and other abuses , noting further that Since 2015, the TIP Report narratives on the DRC have highlighted forced labor of children in artisanal cobalt mines. . The DRC is on the Tier 2 Watch List, and will be automatically downgraded to Tier 3, subjecting it to sanctions, if it does not substantively and consistently improve its record on trafficking. (16) 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. (17) On December 13, 2022, the Governments of the United States, DRC, and Zambia signed a memorandum of understanding with regard to United States support for the DRC and Zambia to develop jointly a supply chain for electric vehicle batteries, from the mine to the assembly line, while also committing to respect international standards to prevent, detect and take legal action to fight corruption throughout this process . 3. Statement of policy It is the policy of the United States— (1) to prohibit the importation of covered DRC goods; (2) to encourage the international community to prohibit the importation of covered DRC goods; (3) to enforce labor provisions under Chapter 23 of the United States-Mexico-Canada Agreement (USMCA) and coordinate with Mexico and Canada to effectively implement Article 23.6 of the United States-Mexico-Canada Agreement to prohibit the importation of covered DRC goods into the North American market; (4) to mitigate and prevent gross violations of human rights in the DRC by— (A) utilizing bilateral diplomatic channels and multinational institutions where both the United States and the DRC are members; and (B) using other applicable authorities available to the United States Government, including with regard to development assistance; and (5) to combat PRC control of strategic metals and minerals in the global supply chain. 4. Rebuttable presumption that import prohibition applies to covered DRC goods (a) In general Except as provided in subsection (b), covered DRC goods shall be deemed to be goods, wares, articles, and merchandise described in section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) and shall not be entitled to entry at any of the ports of the United States. (b) Exception The prohibition described in subsection (a) shall not apply if the Commissioner of U.S. Customs and Border Protection— (1) determines, based on clear and convincing evidence, including information produced by due diligence reviews by importers of their supply chains, that the covered DRC goods were not mined, produced or manufactured wholly or in part by child labor or forced labor; and (2) submits to the appropriate congressional committees and makes available to the public a report that contains such determination. (c) Effective date This section shall take effect on the date that is 120 days after the date of the enactment of this Act. 5. Enforcement strategy to address child labor and forced labor in the DRC (a) In general Not later than 120 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 ), shall submit to the appropriate congressional committees a report that— (1) contains an enforcement strategy to effectively address child labor and forced labor in the mining, production, smelting, or processing of metals or minerals, in particular cobalt and lithium and their derivatives, in the DRC; (2) describes the specific strategy of the United States Government for enforcing section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ) to prevent the importation into the United States of covered DRC goods; (3) describes the perpetration of child labor and forced labor by mining companies in the DRC owned or controlled by PRC entities or financed by PRC state-owned banks or institutions; and (4) recommends development and promotion of alternative sources of supply and production, including within the DRC and the United States domestically. (b) Matters To be included The strategy required by subsection (a) shall include the following: (1) A description of the actions taken by the United States Government, including what monitoring and evaluation (M&E) standards were utilized, to address child labor and forced labor in the DRC under section 307 of the Tariff Act of 1930 ( 19 U.S.C. 1307 ), including a description of all Withhold Release Orders issued, covered DRC goods detained, and fines issued. (2) A list of— (A) covered DRC goods; and (B) businesses that have sold covered DRC goods in the United States. (3) A list of United States-based facilities and entities that source metals and minerals, in particular cobalt and lithium and their derivatives, from the mining industry of the DRC, including artisanal and small-scale mining sectors. (4) A list of mining companies, including China Molybdenum, in the DRC owned or controlled by PRC entities, or financed by PRC state-owned banks or institutions. (5) A list of high-priority sectors for enforcement, which shall include electric vehicles production, with a sector-specific enforcement plan for each high-priority sector. (6) A description of the additional resources necessary for U.S. Customs and Border Protection and other Federal entities, including the Forced Labor Enforcement Task Force, to effectively implement the strategy. (7) A strategy to coordinate and collaborate with appropriate nongovernmental organizations and private sector entities to implement the enforcement strategy for covered DRC goods. (c) Form The report required by subsection (a) 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 quarterly basis and, as applicable, on any updates to the strategy required by subsection (a) or additional actions taken to address child labor or forced labor in the DRC, including actions described in this Act. (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 the DRC has ended child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining. 6. Diplomatic strategy to address child labor and forced labor in the DRC (a) In general Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in coordination with the heads of other appropriate Federal departments and agencies, shall submit to the appropriate congressional committees a report that contains a United States strategy to promote initiatives to enhance international awareness of and to prevent and mitigate child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining. (b) Matters To be included The report required by subsection (a) shall include— (1) a plan to enhance bilateral and multilateral coordination, including sustained engagement with the governments of United States allies and partners, to end child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining; (2) a strategic plan to enhance bilateral and multinational coordination, including sustained engagement with the governments of United States allies and partners, to counter child labor and forced labor by mining companies in the DRC owned or controlled by PRC entities, including China Molybdenum, or financed by PRC state-owned banks or institutions; (3) a plan based on proven strategies with monitoring and evaluation standards applied for public affairs, public diplomacy, and messaging efforts to promote awareness of child labor and forced labor in the DRC, with a special attention to the role of the mining companies owned or controlled by PRC entities, or financed by PRC state-owned banks or institutions; and (4) opportunities to coordinate and collaborate with appropriate nongovernmental organizations, including, in particular, faith-based entities and private sector entities, to raise awareness about covered DRC goods. (c) Additional matters To be included The report required by subsection (a) shall also include— (1) to the extent practicable, a list of— (A) entities that directly or indirectly use child labor or forced labor in the production of covered DRC goods; and (B) foreign persons that act as agents of the entities or affiliates of entities described in subparagraph (A) to import covered DRC goods into the United States; and (2) a description of actions taken by the United States Government to address child labor or forced labor in the mining industry of the DRC, including artisanal and small-scale mining, including under— (A) the Trafficking Victims Protection Act of 2000 ( Public Law 106–386 ; 22 U.S.C. 7101 et seq. ); (B) the Elie Wiesel Genocide and Atrocities Prevention Act of 2018 ( Public Law 115–441 ; 22 U.S.C. 2656 note); and (C) the Global Magnitsky Human Rights Accountability Act ( 22 U.S.C. 2656 note). (d) Form The report required by subsection (a) shall be submitted in unclassified form, but may include a classified annex, if necessary. (e) Updates The Secretary of State shall include any updates to the strategy required by subsection (a) in the annual Trafficking in Persons report required by section 110(b) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7107(b) ). (f) Sunset This section shall cease to have effect 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 the Government of the DRC has ended child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining. 7. Impositions of sanctions relating to child labor and forced labor in the DRC (a) Report required (1) In general Not later than 270 days after the date of the enactment of this Act, and not less frequently than annually thereafter, the President shall submit to the appropriate congressional committees a report that identifies each foreign person, including any official of the Government of the DRC, that the President determines— (A) knowingly engages in, is responsible for, or facilitates the child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining; and (B) knowingly engages in, contributes to, assists, or provides financial, material, or technological support for efforts to contravene United States law regarding the importation of covered DRC goods. (2) Form The report required under paragraph (1) shall be submitted in unclassified form, but may contain a classified annex. (b) Imposition of sanctions The President shall impose the sanctions described in subsection (c) with respect to each foreign person identified in the report required under subsection (a)(1). (c) Sanctions described The sanctions described in this subsection are the following: (1) Asset blocking The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person identified in the report required under subsection (a)(1) if such property and interests in property— (A) are in the United States; (B) come within the United States; or (C) come within the possession or control of a United States person. (2) Ineligibility for visas, admission, or parole (A) Visas, admission, or parole An alien described in subsection (a)(1) is— (i) inadmissible to the United States; (ii) ineligible to receive a visa or other documentation to enter the United States; and (iii) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ). (B) Current visas revoked (i) In general An alien described in subsection (a)(1) is subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation is or was issued. (ii) Immediate effect A revocation under clause (i) shall— (I) take effect immediately; and (II) automatically cancel any other valid visa or entry documentation that is in the alien’s possession. (d) Implementation; penalties (1) Implementation The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. (2) Penalties The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) shall apply to a foreign person that violates, attempts to violate, conspires to violate, or causes a violation of paragraph (1) to the same extent that such penalties apply to a person that commits an unlawful act described in subsection (a) of such section 206. (e) Waiver The President may waive the application of sanctions under subsection (b) with respect to a foreign person if the President determines and certifies to the appropriate congressional committees that such a waiver is in the national interest of the United States. (f) Exceptions (1) Exceptions for intelligence activities Sanctions under this section shall not apply to any activity subject to the reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ) or any authorized intelligence activities of the United States. (2) Exception to comply with international obligations and for law enforcement activities Sanctions under subsection (c)(2) shall not apply with respect to an alien if admitting or paroling the alien into the United States is necessary— (A) to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success on June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations; or (B) to carry out or assist law enforcement activity in the United States. (g) Termination of sanctions The President may terminate the application of sanctions under this section with respect to a foreign person if the President determines and certifies to the appropriate congressional committees not less than 15 days before the termination takes effect that— (1) information exists that the person did not engage in the activity for which sanctions were imposed; (2) the person has been prosecuted appropriately for the activity for which sanctions were imposed; (3) the person has credibly demonstrated a significant change in behavior, has paid appropriate recompense for the activity for which sanctions were imposed, and has credibly committed to not engage in an activity described in subsection (a)(1) in the future; or (4) the termination of the sanctions is in the national security interests of the United States. (h) Sunset This section, and any sanctions imposed under this section, shall terminate on the date that is 8 years after the date of the enactment of this Act. 8. Usaid efforts to prevent child labor and forced labor in the mining industry of the DRC (a) In general The Administrator of the United States Agency for International Development ( USAID ), in coordination with the Secretary of the Department of State and the heads of other relevant Federal departments and agencies, shall increase efforts to prevent child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining, including by encouraging efforts— (1) to expand citizens’ participation in local decision making; (2) to enhance transparency and accountability of governmental decisions on the local, provincial, and national levels in the DRC, on the expenditure of public funds, and the entry into contracts and other agreements in the mining industry of the DRC, in particular contracts or other agreements entered into with PRC entities, including China Molybdenum, or PRC state-owned banks or financial institutions; (3) to strengthen social infrastructure to enhance oversight of the mining industry of the DRC, including artisanal and small-scale mining; (4) to provide basic protective equipment, including gloves, work-appropriate clothes, and masks; (5) to develop the technical and business capacity of artisanal and small-scale miners, helping them comply with environmental, safety, and business regulations; (6) to build entrepreneurial capacity in local communities in order to provide economically feasible alternatives to artisanal and small-scale mining; and (7) to support the ongoing development of country-specific policies and implementation of the national strategy to combat trafficking in persons in the DRC, especially to prevent child labor and forced labor in the DRC. (b) Coordination The USAID Administrator, in coordination with the Secretary of State and heads of other relevant Federal departments and agencies, shall coordinate with bilateral and multilateral donors; the International Monetary Fund; the government of the DRC at national, provincial, and local levels; United Nations agencies; civil society and nongovernmental organizations, including faith-based organizations; and the private sector to combat trafficking in persons in the DRC, including by— (1) supporting efforts by local and civil society organizations, including faith-based organizations, and the government of the DRC at national, provincial, and local levels to ensure the end of child labor and forced labor; (2) promoting transparency and accountability of national, provincial, or local level government decisions in the DRC with respect to public funds and contracts and other agreements related to the mining industry of the DRC, in particular contracts or other agreements entered into with PRC entities, including China Molybdenum, or PRC state-owned banks or financial institutions; and (3) undertaking efforts set forth in section 10(a) above. (c) Intra-Agency efforts In carrying out the activities described in this section, the USAID Administrator, in coordination with the Secretary of State and heads of other relevant Federal departments and agencies, shall seek to leverage additional private sector resources to end child labor and forced labor in the mining industry of the DRC, including artisanal and small-scale mining, by increasing cooperation between USAID and such other relevant Federal departments and agencies to better leverage the full spectrum of grants, technical assistance, and partnerships. 9. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives; and (B) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs and 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) Child labor The term child labor means work that deprives children of their childhood, their potential, and their dignity, and that is harmful to physical and mental development, as such term is commonly used by the International Labour Organization. (4) Covered drc goods The term covered DRC goods means goods, wares, articles, or merchandise containing metals or minerals, in particular cobalt and lithium and their derivatives, mined, produced, smelted or processed, wholly or in part, by child labor or forced labor in the DRC. (5) DRC The term DRC means the Democratic Republic of the Congo. (6) 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 ). (7) Foreign person The term foreign person means a person that is not a United States person. (8) Person The term person means an individual or entity. (9) PRC The term PRC means the People’s Republic of China. (10) Strategic metals and minerals The term strategic metals and minerals means metals and minerals that— (A) are essential to national defense and national security, (B) are used in weapons systems, or (C) are the building blocks for modern technologies that are critical to economic prosperity for which the United States is dependent on imports from foreign countries, the supply of which is susceptible to control by foreign powers such as the PRC or the Russian Federation whose interests are inimical to those of the United States. (11) United states person The term United States person means— (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B) an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity.