US Takes Steps to Stop Illegal Armed Groups in the Congo
Originally known as the “Congo Conflict Minerals Act of 2009,” this conflict minerals resolution was recently passed by the US Senate as part of the financial overhaul bill. The amendment requires annual disclosure to the US Securities and Exchange Commission (SEC) of activities involving columbite-tantalite, casserite, and wolframite from the Democratic Republic of Congo. These metals are commonly used in mobile telephones, laptop computers, and digital video recorders as well as other global technological products.
Due to continued weak governance in the Democratic Republic of Congo, illicit trade of the metals has grown and in turn has empowered illegal armed groups and resulted in a loss of tax revenue. To remedy this, the amendment calls for any company using the minerals as a primary ingredient in its products to file the reports with the SEC and to describe the steps taken to ensure that the mineral procurements did not benefit armed groups in Africa.
Lesley Couch, Director, Duty Deferral & Foreign-Trade Zone Services at Sandler Travis Trade Advisory Services, stressed the impact of the amendment saying, “Pending legislation such as this, as well as Lacey Act requirements, takes special consideration in all operations, but especially in foreign-trade zones.”
If this legislation is enacted, how will you comply? How will this impact your Import Compliance programs? Will the admission into a Foreign-Trade Zone facilitate compliance?
Share this Post[?]
Trackbacks and Pingbacks