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Thursday

,
January 18, 2001

Part XI

Department of Defense
General Services
Administration
National Aeronautics and
Space Administration
48 CFR Parts 22 and 52
Federal Acquisition Regulation; Final
Rules

Department of Labor
Bureau of International Labor Affairs; List
of Products Requiring Federal Contractor
Certification as to Forced or Indentured
Child Labor; Notices

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5346 Federal Register / Vol. 66, No. 12 / Thursday, January 18, 2001 / Rules and Regulations

DEPARTMENT OF DEFENSE solicitation included the certification except for minor editorial changes. This
GENERAL SERVICES provision and provides remedies for is a significant regulatory action, and
ADMINISTRATION violations relating to use of forced or therefore, was subject to review under
indentured child labor. Section 6(b) of Executive Order 12866,
NATIONAL AERONAUTICS AND On June 12, 1999, the President Regulatory Planning and Review, dated
SPACE ADMINISTRATION signed Executive Order 13126, September 30, 1993. This rule is not a
Prohibition of Acquisition of Products major rule under 5 U.S.C. 804.
48 CFR Parts 22 and 52 Produced by Forced or Indentured Child
Labor (the Executive Order). The B. Regulatory Flexibility Act
[FAC 97–23; FAR Case 1999–608]
Executive Order states a broad policy The Department of Defense, the
RIN 9000–AI51 General Services Administration, and
that executive agencies must take
Federal Acquisition Regulation; appropriate actions to enforce the laws the National Aeronautics and Space
Prohibition of Acquisition of Products prohibiting the manufacture or Administration certify that this final
Produced by Forced or Indentured importation of products mined, rule will not have a significant
Child Labor produced, or manufactured wholly or in economic impact on a substantial
part by forced or indentured child labor. number of small entities within the
AGENCIES: Department of Defense (DoD), Section 2 of the Executive Order meaning of the Regulatory Flexibility
General Services Administration (GSA), directed the Department of Labor (DoL), Act, 5 U.S.C. 601, et seq., because only
and National Aeronautics and Space in consultation with the Department of a small percentage of acquisitions are
Administration (NASA). Treasury and the Department of State, to for products on the DoL List, there is
ACTION: Final rule. publish in the Federal Register a list of minimal impact on offerors providing a
products (the List, identified by their listed product that originates in a
SUMMARY: The Civilian Agency country of origin, for which there is a country other than the corresponding
Acquisition Council and the Defense reasonable basis to believe that such countries identified on the DoL List, and
Acquisition Regulations Council product may have been mined, not all offerors responding to
(Councils) are issuing a final rule to produced, or manufactured by forced or solicitations for these acquisitions are
amend the Federal Acquisition indentured child labor. DoL published small entities. With regard to the clause
Regulation (FAR) to implement the the preliminary List in the Federal that requires cooperation with
specific requirements of Executive Register on September 6, 2000 (65 FR authorities and provides remedies for
Order 13126, Prohibition of Acquisition 54108–54112), and solicited public violations relating to use of forced or
of Products Produced by Forced or comment. After receipt and indentured child labor, we expect that
Indentured Child Labor, as well as to consideration of the public comments, very few contractors are furnishing end
prescribe further appropriate actions to DoL is publishing the final List in products or components produced by
comply with the broad policy of the today’s Federal Register. forced or indentured child labor. The
Executive Order (i.e., to enforce laws Section 3 of the Executive Order rule does not apply to micro-purchases.
prohibiting the manufacture or required the Councils to issue a The Councils did not receive any
importation of products that have been proposed rule, amending the FAR to comments regarding the Regulatory
mined, produced, or manufactured implement the policy expressed in the Flexibility Act as a result of publication
wholly or in part using forced or Executive Order. Accordingly, the of the proposed rule in the Federal
indentured child labor). Councils published a proposed rule in Register at 65 FR 54104.
the Federal Register on September 6,
DATES: Effective Date: February 20, C. Nonstatutory Certification Approval
2000 (65 FR 54104–54107). Public
2001.
comments on the proposed rule were In accordance with Section 29 of the
Applicability Date: The FAR, as
due by November 6, 2000. Office of Federal Procurement Policy
amended by this rule, is applicable to
Ten respondents submitted public Act, 41 U.S.C. Section 425, the FAR
solicitations issued on or after February
comments. Most comments received did Council has requested approval from the
20, 2001 per FAR 1.108(d).
not object to the basic policy but were Administrator for Federal Procurement
FOR FURTHER INFORMATION CONTACT: The outside the scope of the case, because Policy for inclusion of a nonstatutory
FAR Secretariat, Room 4035, GS they request FAR revisions that go certification in the Federal Acquisition
Building, Washington, DC, 20405, (202) beyond the scope of the Executive Order Regulation. In the absence of an
501–4755, for information pertaining to or are inconsistent with the Administrator, that approval has been
status or publication schedules. For requirements of the Executive Order. granted by the Director of the Office of
clarification of content, contact Ms. For example, some suggested Management and Budget in accordance
Linda Nelson, Procurement Analyst, at expanding the scope of the mandate of with the Federal Vacancies Reform Act
(202) 501–3775. Please cite FAC 97–23, the Executive Order in the regulation to of 1998, 5 U.S.C. 3348(b)(2).
FAR case 1999–608. address products made by convict labor
SUPPLEMENTARY INFORMATION: and forced or indentured labor by D. Paperwork Reduction Act
persons 18 or older—clearly outside the The Paperwork Reduction Act (Pub.
A. Background
purview of this rulemaking. Other L. 104–13) applies. This final rule
This final rule amends the FAR by respondents suggested using a different contains information collection
adding a new FAR subpart on definition of ‘‘forced or indentured requirements that have been submitted
prohibition of acquisition of products child labor,’’ a comment that has been to the Office of Management and Budget
produced by forced or indentured child addressed in the companion rule being (OMB) which will not take effect prior
labor (Subpart 22.15), adding a new issued simultaneously by the to OMB approval of these provisions.
certification regarding knowledge of Department of Labor. The Councils Two respondents commented on the
child labor for listed end products (FAR carefully considered all comments in estimated burden of the information
52.212–3 and 52.222–18), and adding a formulation of the final rule. collection requirements.
clause at 52.222–19, that requires The Councils are issuing a final rule The Councils note that the average
cooperation with authorities if the that is the same as the proposed rule, response time reflects the average

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Federal Register / Vol. 66, No. 12 / Thursday, January 18, 2001 / Rules and Regulations 5347

burden on all contractors, including 1. The authority citation for 48 CFR make every effort to avoid acquiring
those who must simply certify that they Parts 22 and 52 continues to read as such products.
are not supplying products that were follows:
mined, produced, or manufactured in 22.1503 Procedures for acquiring end
Authority: 40 U.S.C. 486(c); 10 U.S.C. products on the List of Products Requiring
the corresponding country identified on chapter 137; and 42 U.S.C. 2473(c). Contractor Certification as to Forced or
the DoL List. We also anticipate that, Indentured Child Labor.
given the need to comply with the Tariff PART 22—APPLICATION OF LABOR
(a) When issuing a solicitation for
Act of 1930, many offerors would LAWS TO GOVERNMENT
supplies expected to exceed the micro-
already have taken steps that would ACQUISITIONS
purchase threshold, the contracting
enable them to make the necessary
2. Add Subpart 22.15 to read as officer must check the List of Products
certification, before they sought to
follows: Requiring Contractor Certification as to
supply a product from a country
Forced or Indentured Child Labor (the
identified on the DoL List.
The proposed rule erroneously stated Subpart 22.15—Prohibition of List) (www.dol.gov/dol/ilab) (see
the estimated hours per response as .30 Acquisition of Products Produced by 22.1505(a)). Appearance of a product on
hours rather than .5 hours (30 minutes). Forced or Indentured Child Labor the List is not a bar to purchase of any
This does not change the total estimate such product mined, produced, or
Sec. manufactured in the identified country,
of 250 response burden hours per year. 22.1500 Scope.
The revised annual reporting burden is but rather is an alert that there is a
22.1501 Definitions.
estimated as follows: 22.1502 Policy. reasonable basis to believe that such
22.1503 Procedures for acquiring end product may have been mined,
Respondents: 500.
Responses per respondent: 1. products on the List of Products produced, or manufactured by forced or
Total annual responses: 500. Requiring Contractor Certification as to indentured child labor.
Preparation hours per response: .5. Forced or Indentured Child Labor. (b) The requirements of this subpart
Total response burden hours: 250. 22.1504 Violations and remedies. that result from the appearance of any
22.1505 Solicitation provision and contract end product on the List do not apply to
List of Subjects in 48 CFR Parts 22 and clause. a solicitation or contract if the identified
52 country of origin on the List is—
22.1500 Scope.
Government procurement. (1) Canada, and the anticipated value
This subpart applies to acquisitions of
Dated: January 12, 2001. of the acquisition is $25,000 or more
supplies that exceed the micro-purchase
Al Matera,
(see 25.405);
threshold. (2) Israel, and the anticipated value of
Acting Director, Federal Acquisition Policy
Division. 22.1501 Definitions. the acquisition is $50,000 or more (see
As used in this subpart— 25.406);
Federal Acquisition Circular Forced or indentured child labor (3) Mexico, and the anticipated value
Federal Acquisition Circular (FAC) means all work or service— of the acquisition is $54,372 or more
97–23 is issued under the authority of (1) Exacted from any person under the (see 25.405); or
the Secretary of Defense, the age of 18 under the menace of any (4) Aruba, Austria, Belgium, Denmark,
Administrator of General Services, and penalty for its nonperformance and for Finland, France, Germany, Greece, Hong
the Administrator for the National which the worker does not offer himself Kong, Ireland, Italy, Japan, Korea,
Aeronautics and Space Administration. voluntarily; or Liechtenstein, Luxembourg,
All Federal Acquisition Regulation (2) Performed by any person under Netherlands, Norway, Portugal,
(FAR) changes and other directive the age of 18 pursuant to a contract the Singapore, Spain, Sweden, Switzerland,
material contained in FAC 97–23 are enforcement of which can be or the United Kingdom and the
effective February 20, 2001. accomplished by process or penalties. anticipated value of the acquisition is
List of Products Requiring Contractor $177,000 or more (see 25.403(b)).
Dated: January 11, 2001.
Certification as to Forced or Indentured (c) Except as provided in paragraph
Child Labor means the list published by (b) of this section, before the contracting
the Department of Labor in accordance officer may make an award for an end
R.D. Kerrins, Jr., product (regardless of country of origin)
Acting Director, Defense Procurement,
with Executive Order 13126 of June 12,
1999, Prohibition of Acquisition of of a type identified by country of origin
Department of Defense.
Products Produced by Forced or on the List the offeror must certify
Dated: January 11, 2001. that—
Indentured Child Labor. The list
identifies products, by their country of (1) It will not supply any end product
origin, that the Departments of Labor, on the List that was mined, produced,
David A. Drabkin, Treasury, and State have a reasonable or manufactured in a country identified
Deputy Associate Administrator, Office of basis to believe might have been mined, on the List for that product, as specified
Acquisition Policy, General Services in the solicitation by the contracting
produced, or manufactured by forced or
Administration. officer in the Certification Regarding
indentured child labor.
Dated: January 12, 2001. Knowledge of Child Labor for Listed
22.1502 Policy. End Products; or
Agencies must take appropriate action (2)(i) It has made a good faith effort to
Anne Guenther, to enforce the laws prohibiting the determine whether forced or indentured
Acting Associate Administrator for manufacture or importation of products child labor was used to mine, produce,
Procurement, National Aeronautics and that have been mined, produced, or or manufacture any end product to be
Space Administration. manufactured wholly or in part by furnished under the contract that is on
Therefore, DoD, GSA, and NASA forced or indentured child labor (19 the List and was mined, produced, or
amend 48 CFR Parts 22 and 52 as set U.S.C. 1307, 29 U.S.C. 201, et seq., and manufactured in a country identified on
forth below: 41 U.S.C. 35, et seq.). Agencies should the List for that product; and

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5348 Federal Register / Vol. 66, No. 12 / Thursday, January 18, 2001 / Rules and Regulations

(ii) On the basis of those efforts, the (b) Remedies. (1) The contracting nonperformance and for which the worker
offeror is unaware of any such use of officer may terminate the contract. does not offer himself voluntarily; or
child labor. (2) The suspending official may (2) Performed by any person under the age
suspend the contractor in accordance of 18 pursuant to a contract the enforcement
(d) Absent any actual knowledge that of which can be accomplished by process or
the certification is false, the contracting with the procedures in subpart 9.4.
penalties.
officer must rely on the offerors’ (3) The debarring official may debar
the contractor for a period not to exceed * * * * *
certifications in making award (i) Certification Regarding Knowledge of
decisions. 3 years in accordance with the
Child Labor for Listed End Products
(e) Whenever a contracting officer has procedures in subpart 9.4. (Executive Order 13126). [The Contracting
reason to believe that forced or 22.1505 Solicitation provision and Officer must list in paragraph (i)(1) any end
indentured child labor was used to contract clause. products being acquired under this
mine, produce, or manufacture an end solicitation that are included in the List of
(a) Except as provided in paragraph Products Requiring Contractor Certification
product furnished pursuant to a contract (b) of 22.1503, insert the provision at as to Forced or Indentured Child Labor,
awarded subject to the certification 52.222–18, Certification Regarding unless excluded at 22.1503(b).]
required in paragraph (c) of this section, Knowledge of Child Labor for Listed (1) Listed end products.
the contracting officer must refer the End Products, in all solicitations that Listed End Product
matter for investigation by the agency’s are expected to exceed the micro-
Inspector General, the Attorney General, lllllllllllllllllllll
purchase threshold and are for the lllllllllllllllllllll
or the Secretary of the Treasury, acquisition of end products (regardless
whichever is determined appropriate in of country of origin) of a type identified Listed Countries of Origin
accordance with agency procedures, by country of origin on the List of lllllllllllllllllllll
except to the extent that the end product Products Requiring Contractor lllllllllllllllllllll
is from the country listed in paragraph Certification as to Forced or Indentured (2) Certification. [If the Contracting Officer
(b) of this section, under a contract has identified end products and countries of
Child Labor, except solicitations for origin in paragraph (i)(1) of this provision,
exceeding the applicable threshold. commercial items that include the then the offeror must certify to either (i)(2)(i)
(f) Proper certification will not provision at 52.212–3, Offeror or (i)(2)(ii) by checking the appropriate
prevent the head of an agency from Representations and Certifications— block.]
imposing remedies in accordance with Commercial Items. The contracting b (i) The offeror will not supply any end
section 22.1504(a)(4) if it is later officer must identify in paragraph (b) of product listed in paragraph (i)(1) of this
discovered that the contractor has the provision at 52.222–18, Certification provision that was mined, produced, or
furnished an end product or component Regarding Knowledge of Child Labor for manufactured in the corresponding country
that has in fact been mined, produced, Listed End Products, or paragraph (i)(1) as listed for that product.
or manufactured, wholly or in part, b (ii) The offeror may supply an end
of the provision at 52.212–3, any product listed in paragraph (i)(1) of this
using forced or indentured child labor. applicable end products and countries provision that was mined, produced, or
of origin from the List. For solicitations manufactured in the corresponding country
22.1504 Violations and remedies.
estimated to equal or exceed $25,000, as listed for that product. The offeror certifies
(a) Violations. The Government may the contracting officer must exclude that it has made a good faith effort to
impose remedies set forth in paragraph from the List in the solicitation end determine whether forced or indentured
(b) of this section for the following products from any countries identified child labor was used to mine, produce, or
violations (note that the violations in at 22.1503(b), in accordance with the manufacture any such end product furnished
paragraphs (a)(3) and (a)(4) of this specified thresholds. under this contract. On the basis of those
section go beyond violations of the efforts, the offeror certifies that it is not aware
(b) Insert the clause at 52.222–19,
requirements relating to certification of of any such use of child labor.
Child Labor—Cooperation with
end products) (see 22.1503): Authorities and Remedies, in all 3a. Effective March 12, 2001, the date of
(1) The contractor has submitted a solicitations and contracts for the the clause at 52.212–3 is amended by
false certification regarding knowledge removing ‘‘(February 2001)’’ and adding
acquisition of supplies that are expected
of the use of forced or indentured child (MAR 2001) in its place).
to exceed the micro-purchase threshold.
labor. 4. In section 52.212–5, revise the date
(2) The contractor has failed to PART 52—SOLICITATION PROVISIONS of the clause and the introductory text
cooperate as required in accordance AND CONTRACT CLAUSES of paragraph (b); redesignate paragraphs
with the clause at 52.222–19, Child (b)(16) through (b)(27) as (b)(17) through
Labor Cooperation with Authorities and 3. In section 52.212–3, revise the date (b)(28), respectively, and add new
Remedies, with an investigation of the of the provision; add, in alphabetical paragraph (b)(16) to read as follows:
use of forced or indentured child labor order, in paragraph (a) the definition
‘‘Forced or indentured child labor’’; and 52.212–5 Contract Terms and Conditions
by an Inspector General, the Attorney Required to Implement Statutes or
General, or the Secretary of the add paragraph (i) to read as follows:
Executive Orders—Commercial Items.
Treasury. 52.212–3 Offeror Representations and * * * * *
(3) The contractor uses forced or Certifications—Commercial Items.
indentured child labor in its mining, Contract Terms and Conditions
* * * * *
production, or manufacturing processes. Required to Implement Statues or
OFFEROR REPRESENTATIONS AND Executive Orders—Commercial Items
(4) The contractor has furnished an CERTIFICATIONS—COMMERCIAL ITEMS
end product or component mined, (February 2001)
(February 2001)
produced, or manufactured, wholly or (a) * * * * * * * *
in part, by forced or indentured child (b) The Contractor shall comply with
* * * * *
labor. Remedies in paragraphs (b)(2) and Forced or indentured child labor means all the FAR clauses in this paragraph (b)
(b)(3) of this section are inappropriate work or service— that the Contracting Officer has
unless the contractor knew of the (1) Exacted from any person under the age indicated as being incorporated in this
violation. of 18 under the menace of any penalty for its contract by reference to implement

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Federal Register / Vol. 66, No. 12 / Thursday, January 18, 2001 / Rules and Regulations 5349

provisions of law or Executive orders Listed End Product (c) Violations. The Government may
applicable to acquisitions of commercial impose remedies set forth in paragraph (d)
lllllllllllllllllllll for the following violations:
items or components: lllllllllllllllllllll
[Contracting Officer must check as (1) The Contractor has submitted a false
Listed Countries of Origin certification regarding knowledge of the use
appropriate.] of forced or indentured child labor for listed
* * * * * lllllllllllllllllllll
end products.
ll(16) 52.222–19, Child Labor— lllllllllllllllllllll
(2) The Contractor has failed to cooperate,
(c) Certification. The Government will not if required, in accordance with paragraph (b)
Cooperation with Authorities and
make award to an offeror unless the offeror, of this clause, with an investigation of the
Remedies (E.O. 13126). by checking the appropriate block, certifies to use of forced or indentured child labor by an
* * * * * either paragraph (c)(1) or paragraph (c)(2) of Inspector General, Attorney General, or the
this provision. Secretary of the Treasury.
5. In section 52.213–4, revise the date b (1) The offeror will not supply any end
of the clause; redesignate paragraphs (3) The Contractor uses forced or
product listed in paragraph (b) of this indentured child labor in its mining,
(b)(1)(vii) through (xi) as (b)(1)(viii) provision that was mined, produced, or production, or manufacturing processes.
through (xii), respectively, and add new manufactured in a corresponding country as (4) The Contractor has furnished under the
paragraph (vii) to read as follows: listed for that end product. contract end products or components that
b (2) The offeror may supply an end have been mined, produced, or manufactured
52.213–4 Terms and Conditions— product listed in paragraph (b) of this wholly or in part by forced or indentured
Simplified Acquisitions (Other than provision that was mined, produced, or child labor. (The Government will not pursue
Commercial Items). manufactured in the corresponding country remedies at paragraph (d)(2) or paragraph
* * * * * as listed for that product. The offeror certifies (d)(3) of this clause unless sufficient
Terms and Conditions—Simplified that it has made a good faith effort to evidence indicates that the Contractor knew
Acquisitions (Other Than Commercial Items) determine whether forced or indentured of the violation.)
(February 2001) child labor was used to mine, produce, or (d) Remedies. (1) The Contracting Officer
manufacture such end product. On the basis may terminate the contract.
* * * * * of those efforts, the offeror certifies that it is (2) The suspending official may suspend
(vii) 52.222–19, Child Labor—Cooperation not aware of any such use of child labor. the Contractor in accordance with procedures
with Authorities and Remedies (JAN 2001) (End of provision) in FAR Subpart 9.4.
(E.O. 13126). (Applies to contracts for (3) The debarring official may debar the
supplies exceeding the micro-purchase 52.222–19 Child Labor—Cooperation with Contractor for a period not to exceed 3 years
threshold.) Authorities and Remedies. in accordance with the procedures in FAR
* * * * * Subpart 9.4.
As prescribed in 22.1505(b), insert the (End of clause)
5a. Effective March 12, 2001, the date of following clause:
the clause at 52.213–4 is amended by [FR Doc. 01–1503 Filed 1–17–01; 8:45 am]
removing ‘‘February 2001’’ and adding Child Labor—Cooperation With Authorities
‘‘(MAR 2001)’’ in its place). and Remedies (February 2001) BILLING CODE 6820–EP–P

6. Add new sections 52.222–18 and (a) Applicability. This clause does not
52.222–19 to read as follows: apply to the extent that the Contractor is
supplying end products mined, produced, or DEPARTMENT OF DEFENSE
52.222–18 Certification Regarding manufactured in— GENERAL SERVICES
Knowledge of Child Labor for Listed End (1) Canada, and the anticipated value of the ADMINISTRATION
Products. acquisition is $25,000 or more; NATIONAL AERONAUTICS AND
As prescribed in 22.1505(a), insert the (2) Israel, and the anticipated value of the SPACE ADMINISTRATION
acquisition is $50,000 or more;
following provision: (3) Mexico, and the anticipated value of the 48 CFR Chapter 1
Certification Regarding Knowledge of acquisition is $54,372 or more; or
Child Labor for Listed End Products (4) Aruba, Austria, Belgium, Denmark, Federal Acquisition Regulation; Small
(February 2001) Finland, France, Germany, Greece, Hong Entity Compliance Guide
Kong, Ireland, Italy, Japan, Korea,
(a) Definition. Liechtenstein, Luxembourg, Netherlands, AGENCIES: Department of Defense (DoD),
Forced or indentured child labor Norway, Portugal, Singapore, Spain, Sweden, General Services Administration (GSA),
means all work or service— Switzerland, or the United Kingdom and the and National Aeronautics and Space
(1) Exacted from any person under the anticipated value of the acquisition is Administration (NASA).
age of 18 under the menace of any $177,000 or more. ACTION: Small entity compliance guide.
penalty for its nonperformance and for (b) Cooperation with Authorities. To
which the worker does not offer himself enforce the laws prohibiting the manufacture SUMMARY: This document is issued
or importation of products mined, produced, under the joint authority of the
voluntarily; or or manufactured by forced or indentured
(2) Performed by any person under Secretary of Defense, the Administrator
child labor, authorized officials may need to
the age of 18 pursuant to a contract the conduct investigations to determine whether
of General Services and the
enforcement of which can be forced or indentured child labor was used to Administrator for the National
accomplished by process or penalties. mine, produce, or manufacture any product Aeronautics and Space Administration.
(b) Listed end products. The following furnished under this contract. If the This Small Entity Compliance Guide has
end product(s) being acquired under solicitation includes the provision 52.222– been prepared in accordance with
this solicitation is (are) included in the 18, Certification Regarding Knowledge of Section 212 of the Small Business
List of Products Requiring Contractor Child Labor for Listed End Products, or the Regulatory Enforcement Fairness Act of
Certification as to Forced or Indentured equivalent at 52.212–3(i), the Contractor 1996 (Public Law 104–121). It consists
Child Labor, identified by their country agrees to cooperate fully with authorized of a summary of the rule appearing in
officials of the contracting agency, the
of origin. There is a reasonable basis to Department of the Treasury, or the
Federal Acquisition Circular (FAC) 97–
believe that listed endproducts from the Department of Justice by providing 23 which amends the Federal
listed countries of origin may have been reasonable access to records, documents, Acquisition Regulation (FAR).
mined, produced, or manufactured by persons, or premises upon reasonable request Interested parties may obtain further
forced or indentured child labor. by the authorized officials. information regarding this rule by

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