Findings or Withhold Release Orders

While Canadian procurement officials don't directly enforce U.S. Customs rules, you need to understand Withhold Release Orders because they can derail your suppliers' operations—and by extension, your contracts. These are formal determinations issued by U.S. Customs and Border Protection (CBP) that detain goods at ports of entry when there's evidence of forced labour in the supply chain. If your contractor sources materials or components that cross U.S. borders, a WRO can create serious compliance headaches that ripple into federal contract eligibility.

How It Works

When CBP suspects goods were produced using forced labour, they issue a Withhold Release Order that immediately stops those products at the port. The importer then faces a choice: re-export the goods or prove they're clean. That proof isn't simple—you need complete documentation tracing the supply chain from raw materials through every production stage to final importation. We're talking Certificates of Origin, manufacturing records, labour audits, and more.

Canada doesn't have an equivalent enforcement mechanism at the border, but we've responded with Bill S-211, the Combating Forced Labour and Child Labour in Supply Chains Act. This legislation requires Canadian companies, including federal contractors, to report on supply chain risks and remediation efforts. While Bill S-211 focuses on disclosure rather than detention, it signals that Public Services and Procurement Canada (PSPC) and other procurement entities are increasingly scrutinizing supply chain ethics when evaluating contractor eligibility.

In practice, a WRO against your supplier's raw materials source can halt production for weeks or months. Recent enforcement has been aggressive—CBP issued a WRO against a Mexican coffee farm in January 2026, effective immediately. The U.S. Uyghur Forced Labor Prevention Act has intensified scrutiny of goods from specific regions, creating a presumption that certain products involve forced labour unless proven otherwise. Canadian contractors with cross-border supply chains need visibility several tiers deep, not just to their direct suppliers.

Key Considerations

• Supply chain transparency isn't optional anymore. If you're bidding on federal contracts and your suppliers touch U.S. ports, you need documented evidence that your goods aren't produced with forced labour. Waiting until a WRO hits to start mapping your supply chain is too late.

• Bill S-211 reporting requirements overlap with WRO concerns. The annual reporting mandated for larger entities covers the same ground CBP scrutinizes. Smart contractors are using S-211 compliance as a framework to WRO-proof their operations.

• Treasury Board's Integrity Regime may come into play. The Supply Manual doesn't currently address CBP enforcement actions specifically, but a pattern of detained shipments or WRO violations could raise questions about a contractor's business practices during integrity assessments.

• The burden of proof falls on the importer of record. Even if you're several steps removed from the actual import transaction, disruptions cascade through the supply chain. Your delivery timelines and contract performance can suffer from someone else's WRO problem.

Related Terms

Trade Facilitation and Trade Enforcement Act (TFTEA), Integrity Regime, Supply Chain Due Diligence

Sources

• Bill S-211: Combating Forced Labour and Child Labour in Supply Chains Act

• Canada fights against child and forced labour (Gowling WLG)

• CBP Withhold Release Orders: What You Need to Know (PCB USA)

Bottom line: map your supply chains now, especially if they involve U.S. border crossings or high-risk sectors. The gap between U.S. enforcement and Canadian disclosure requirements is narrowing fast.