Withhold Release Orders (WROs)

A Withhold Release Order is a tool used by U.S. Customs and Border Protection to detain imports at the border when there's reasonable suspicion they were produced using forced labor. While these are American enforcement mechanisms, they've become surprisingly relevant to Canadian government procurement—especially since federal contracting authorities now explicitly reference U.S. WROs as grounds for determining whether your supply chain has forced labor issues.

How It Works

When CBP issues a WRO, goods are detained at U.S. ports of entry until the agency completes its investigation into forced labor concerns. The order stays in place until either the importer provides evidence that the goods weren't produced with forced labor, or CBP determines the detention should be lifted. Sometimes these orders get upgraded to formal findings, which carry more weight and last longer.

Here's where it affects Canadian contractors: the connection comes through recent anti-forced labor provisions in federal contracts. According to analysis on the new contract clauses, "reasonable grounds for making a determination may include findings or Withhold Release Orders issued by the United States authorities." Translation? If you're bidding on federal contracts and your supplier has been hit with a WRO—even though it's a U.S. measure—that can trigger questions about your supply chain integrity.

The practical impact intensified with Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chains Act, which received Royal Assent in May 2023. Federal contractors now face mandatory due diligence requirements. Public Services and Procurement Canada expects you to know if any part of your supply chain has been flagged by authorities—including through WROs. In practice, procurement officials reviewing your submission under the Integrity Regime may check whether your suppliers appear on CBP's public list of active withhold release orders.

Key Considerations

• Cross-border enforcement matters: Even though WROs are U.S. enforcement actions, they're explicitly recognized in Canadian federal contracting policy as evidence of potential forced labor. You can't dismiss them as "not our jurisdiction."

• Supply chain visibility is essential: Many contractors don't realize a WRO against a tier-two or tier-three supplier can affect their federal bids. The Treasury Board's contracting policy requires knowledge of your full supply chain, not just direct suppliers.

• Public lists mean public scrutiny: CBP publishes active WROs online. That means procurement officials, civil society organizations, and competitors can all check whether your supply chain intersects with listed entities or commodities.

• Response time is compressed: If a WRO is issued against a supplier during contract performance, you need to demonstrate due diligence quickly. Waiting for CBP's final determination isn't acceptable—Canadian authorities expect proactive supplier engagement and potentially switching sources.

Related Terms

Forced Labour, Supply Chain Integrity, Integrity Regime, Bill S-211 Compliance

Sources

• "Seller Beware?": New Anti-Forced Labour Provisions In Federal Government Contracts (Mondaq)

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

• Due Diligence and Best Practices to Avoid Forced Labor in Supply Chains (Torres Trade Law)

The bottom line? Monitor CBP's WRO list even if you're only selling to Canadian departments. Your supply chain due diligence documentation should address any overlap, because procurement officials are increasingly checking these connections.