Why US Customs Clearance Clients Should Be Aware of CBP's Emphasis on Corporate Responsibility in Human Rights

In recent years, the U.S. Customs and Border Protection (CBP) has placed a heightened emphasis on corporate responsibility, particularly concerning human rights. This shift is part of a broader movement to ensure that businesses operating within the United States adhere to ethical practices that respect human rights (1). For importers and clients involved in customs clearance, understanding the implications of this focus is crucial.

The Role of the U.S. Department of Commerce

The U.S. Department of Commerce, through its Bureau of Industry and Security (BIS), maintains an Entity List. This list includes entities that are subject to specific export licensing requirements due to their involvement in activities contrary to U.S. national security or foreign policy interests (2). Importers on this list face significant restrictions and potential supply chain disruptions.

Corporate Responsibility and Human Rights

The emphasis on corporate responsibility in human rights is rooted in the United Nations Guiding Principles on Business and Human Rights. These principles outline the corporate responsibility to respect human rights, which includes conducting due diligence to avoid infringing on the rights of others (3). The CBP's focus on these principles means that importers must ensure their business practices align with human rights standards to avoid penalties or restrictions.

Potential Removal from the Entity List

For importers on the Entity List, there is a possibility of removal if they can demonstrate that they have addressed the concerns that led to their inclusion. This involves conducting thorough due diligence, providing evidence of compliance with human rights standards, and submitting a formal request for removal to the End-User Review Committee (ERC) (2). The ERC, composed of representatives from various U.S. government departments, makes decisions on additions and removals from the Entity List (4).

Implications for Customs Clearance Clients

For clients involved in customs clearance, it is essential to be aware of these developments. Ensuring that their business practices comply with human rights standards can prevent disruptions and maintain smooth operations. Additionally, staying informed about the criteria for removal from the Entity List can help businesses navigate the complexities of U.S. export controls and avoid potential penalties.

In conclusion, the CBP's focus on corporate responsibility in human rights highlights the importance of ethical business practices for importers and customs clearance clients. By adhering to these standards, businesses can avoid penalties, maintain smooth operations, and contribute to a more ethical global trade environment.

Sources:

1. Office of the High Commissioner for Human Rights. (2023). Human Rights Publications (HR.PUB.12.2). United Nations. https://www.ohchr.org/sites/default/files/Documents/Publications/

2. Porter Wright Morris & Arthur LLP. (2020, July 27). Can an entity be removed from the BIS Entity List? Porter Wright. https://www.porterwright.com/media/can-an-entity-be-removed-from-the-bis-entity-list/?form=MG0AV3

3. Ruggie, J. (2010, May 15). The corporate responsibility to respect human rights. Harvard Law School Forum on Corporate Governance. https://corpgov.law.harvard.edu/2010/05/15/the-corporate-responsibility-to-respect-human-rights/?form=MG0AV3**

4. Bureau of Industry and Security. (2025, January 24). Supplement No. 5 to Part 744—Procedures for End-User Review Committee Entity List and 'Military End User' (MEU) List Decisions. https://www.bis.gov/ear/title-15/subtitle-b/chapter-vii/subchapter-c/part-744/supplement-no-5-part-744-procedures-end?form=MG0AV3