COBALT Supply Chain Act
The COBALT Supply Chain Act is a proposed U.S. law aimed at stopping the import of goods that contain cobalt refined in the People’s Republic of China (PRC) if that cobalt is linked, through its mining and refining, to child labor or forced labor in the Democratic Republic of the Congo (DRC). The bill creates a strong presumption that covered cobalt-containing goods are tainted by forced or child labor, unless an importer can prove by clear and convincing evidence that the goods do not involve PRC-refined cobalt. It directs the Bloomberg-like enforcement apparatus (CBP and other federal agencies) to tighten tracing, reporting, and enforcement across the supply chain, and it requires annual presidential certifications that federal vehicle purchases are free of such labor-linked parts. The act also includes a detailed enforcement strategy, lists of involved entities, coordination with U.S.-Mexico-Canada Agreement (USMCA) partners, and a sunset provision (8 years, or sooner if child/forced labor in DRC ends). Overall, the bill seeks to link import controls, government procurement, and interagency coordination to curb labor abuses tied to cobalt used in batteries and electronics.
Key Points
- 1Rebuttable presumption and import ban: Covered goods (cobalt refined in the PRC) are presumed to be produced with forced or child labor unless the importer demonstrates by clear and convincing evidence that the goods do not contain PRC-refined cobalt; CBP enforces the prohibition at all entry points, subject to the exception process.
- 2Policy framework and international alignment: Establishes U.S. policy to curb PRC influence in DRC cobalt, supports ending child and forced labor internationally, and coordinates with USMCA partners (Mexico and Canada) to prohibit goods produced by forced labor, including cobalt-related goods and processing in the XUAR.
- 3Enforcement strategy: Requires the Forced Labor Enforcement Task Force (within 120 days of enactment) to deliver a comprehensive enforcement strategy with:
- 4- A list of covered goods, PRC cobalt refiners, PRC cobalt miners (including in XUAR), importers, DRC entities tied to PRC, and priority enforcement sectors.
- 5- Tools for tracing origin and improving supply-chain transparency.
- 6- Resource needs, update mechanisms, and coordination with NGOs and private sector partners.
- 7- Quarterly briefings to Congress and ongoing updates.
- 8Regulatory framework and effective date: The presumption and related requirements take effect 180 days after enactment; regulations can be issued to implement the exception or other sections.
- 9Federal procurement and reporting: Section 6 requires the President to certify, within 90 days of enactment and annually thereafter, that all vehicles purchased by the U.S. Government are free of parts mined or refined with child or forced labor in the DRC or XUAR (DoD exempted). Certification must be published and supported by supply-chain documentation available to Congress.
- 10Definitions and scope: Key terms clarified, including “covered goods” (cobalt refined in PRC), “artisanal and small-scale mining,” “child labor,” and “forced labor.” The act defines the relevant committees and regions (DRC, PRC, XUAR).
- 11Sunset and accountability: The act sunsets either eight years after enactment or when the President certifies that child and forced labor in DRC mining has ended (including artisanal and small-scale mining). Regular updates and oversight continue through the enforcement framework.