Sourcemap's new Mock Customs Detention solution is designed to simulate a customs detention scenario to evaluate the readiness of a supply chain in furnishing comprehensive documentation that complies with existing North American standards and anticipated European legislation.
The current and emerging international regulations encompass issues such as forced labour, anti-corruption measures, and the various laws on tariffs and taxation.
Sourcemap founder and CEO Leonardo Bonanni said: "Ever since we launched our supply chain Forced Labor Due Diligence solution in 2021, customers have asked for a diagnostic tool to quickly assess their supply chain compliance. This solution is just that: an out-of-the-box traceability assessment of the global supplier base to quickly identify compliance and reputational risks.”
The urgency for developing the Mock Customs Detention solution has been underscored by the intensified efforts of US Customs and Border Protection (CBP), the company noted.
The US agency has intensified its scrutiny of supply chains for potential forced labour involvement. This has resulted in the seizure of shipments valued at a staggering $1.7bn in 2024 alone. A significant portion of these seizures originated from countries including Malaysia, Vietnam, Thailand, and China.
Further, the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor includes 204 items from 82 countries and regions. The CBP has highlighted several key sectors, such as cotton, polysilicons, PVC, aluminium, and more, requiring increased attention from customs officials.
The company further explains that exporters targeting these key markets must ensure thorough documentation of their supply chains. Firms entangled in customs detentions face a stringent 30-day deadline to furnish comprehensive chain of custody documentation that substantiates compliance within their supply chains to secure the release of detained shipments.
Sourcemap also noted projections indicating an increase in the US Customs budget for 2025 and the impending introduction of a European supply chain law slated for 2027.
The EU Forced Labour Regulation (FLR), adopted on 19 November 2024, establishes a framework for EU member states to examine and prohibit the sale or export of products produced using forced labour within or from the EU market. The EU regulation is set to take effect three years following its publication in the Official Journal, expected around late 2027 or early 2028.
