The California Department of Justice is conducting a compliance review, sending letters to and asking any business that lists “manufacturing” or “retail sales” as their principal activity on California tax filings to report the actions they’ve taken to comply with the California Transparency in Supply Chains Act (CTSCA).
The CTSCA requires retail sellers and manufacturers doing business in California with substantial worldwide gross receipts to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains for tangible goods they offer for sale.
Covered entities must provide disclosures and evidence of postings or public notice they have provided regarding their compliance, as well as their status as to “Corporate Social Responsibility” or CSR. Yes, we know, a lot of acronyms. The point here is that your business may be presently responsible for meeting all of the components of the Supply Chains Act.
Even those who presently fall under the threshold must be aware that the dollar volume for compliance will continue to be lowered as time passes, and all related California businesses and national/international companies who conduct business in California should familiarize themselves with the requirements, and take relevant action.
Supply chain management is a crucial component of many of our client’s businesses here in San Diego and southern California. If you have questions about international business transactions, supply chain management or compliance with the CTSCA we invite you to contact us for a free consultation at 866-631-3470.
