Forced Labor Issues
UYGHUR FORCED LABOR PREVENTION ACT
In December of 2021, the Uyghur Forced Labor Prevention Act (UFLPA) directed the Forced Labor Enforcement Task Force to develop a strategy to exclude goods manufactured with forced labor in the PRC from importation into the United States. Of particular concern are goods shipping from the Xinjiang Uyghur Autonomous Region. CBP leads the implementation and enforcement of the rebuttable presumption under the UFLPA, and has provided “operational guidance” to importers. Importers can find additional background and information, including Best Practices documents and FAQs on U.S. Customs UFLPA website.
When information reasonably indicates that merchandise within the purview of this provision is being imported, then U.S. Customs may choose to challenge the admissibility of goods, including the issuance of withhold release orders (WROs), 19 C.F.R. § 12.42(e) and demand additional information related to forced labor issues. To obtain the release of shipments, companies may wish to work with counsel The factual/legal submission is evaluated by CBP on a case-by-case basis, and if the proof submitted is deemed satisfactory, then CBP is to release the goods.
The UFLPA provides for a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in Xinjiang or by an entity on the UFLPA Entity List are prohibited from U.S. importation under 19 U.S.C. § 1307. Therefore, the documentation required is extensive.
If an importer wishes to contend that the rebuttable presumption does not apply to its importations from the XUAR or from an entity on the UFLPA Entity List—then the importer may request an “Applicability Review.”
GENERAL BACKGROUND:
FORCED LABOR ISSUES FOR IMPORTERS
Products made by means of forced or indentured labor have long been precluded from entry into the United States. See, 19 U.S.C. §1307. "Forced labor" refers to many difference types of work that is exacted under the menace of a penalty for nonperformance, and/or situations where the worker does not offer himself/herself voluntarily. As examples, imports from China, India, Pakistan, and Malaysia have a long history of scrutiny for forced labor issues. These concerns has increased in recent years, due to the PRC’s internal policies regarding the muslim Uighur peoples living in Xinjiang province.
Goods of concern, include all commodities that might be manufactured by unskilled / forced labor, and/or minors, such as textiles/apparel and agricultural commodities - particularly those originating in Xinjiang, China.
CURATED UFLPA NEWS
July 5, 2023: Sheffield Hallam Universit: Forced Labor Lab publishes list of companies that operate in the Uyghur region.
February 23, 2023: Customs updates UFLPA guidance, including issuing a Best Practices document, and modified FAQs.
December 6, 2022: UFLPA: Sheffield University report on Uyghur forced labor in the automotive sector.
September 28, 2022: U.S. Dept. Labor: Report: List of Goods Produced by Child Labor or Forced Labor.
June 21, 2022: Merchandise produced or manufactured (wholly or in part) in the: Xinjiang Uyghur Autonomous Region to be excluded from entry regardless of transportation mode pending further review.
June 17, 2022: Report to Congress on the strategy to prevent the import of goods made with forced labor per the UFLPA. This may include maintaining entity lists, and requiring importers to provide a map of the supply chain, detailed documentation as to worker payments, residency and ties to Xinjiang, evidence establishing factory output matches the output of the documented workers, and information as to control that the manufacturer maintains to prevent forced labor from entering the supply chain.
December 23, 2021: President Biden signs the Uyghur Forced Labor Prevention Act into law as Public Law No. 117-78. the act becomes effective on June 21, 2022.
December 21, 2021: CBP: WRO on Birghtway Group (gloves from Malaysia).
December 16, 2021: Senate passes Uyghur Forced Labor Prevention Act - to be signed next by the POTUS.
December 14, 2021: Rubio and McGovern reach compromise version of Uyghur Forced Labor Prevention Act. (which would include a rebuttable presumption that goods from Xinjiang province are made from Uyghur forced labor). The bill would establish a process for public comments as to know if Chinese forced labor is being used (including tracability ). Within 180 days, a strategy is to be created to exclude imports made with forced labor.
December 9, 2021: House passes HR 1155 (Uyghur Forced Labor Prevention Act) 428 to 1.
September 27, 2021: ‘Campaign for Accountability’ submits a request for investigation re: forced labor in Apple’s supply chain.
July 13, 2021: Forced Labor: Department of State (in conjucntion with other agencies) issues advisory on Xinjiang.
February 12, 2021: CBP: FAQ on Forced Labor WROs.
December 2, 2020: CBP: Withhold release order (WRO) on all cotton products made by the Xinjiang Production and Construction Corps (XPCC). (A regional WRO is “certainly not out of play,” per DHS acting Deputy Secretary Ken Cuccinelli.)
October 19, 2020: CBP: Forced Labor: Finding on Stevia products from China.
September 30, 2020: CBP Issues Detention Order on Palm Oil Produced with Forced Labor in Malaysia.
September 22, 2020: House: Forced Labor bill: House votes 406-3 for create a rebuttable assumption” of forced labor in all products originating from Xinjiang, China.
September 14, 2020: CBP: Issues Five (5) Withhold Release Orders (WROs) on products from China due to forced labor concerns.
August 13, 2020: CBP: Press Release: China Forced Labor: First penalty for China Forced Labor used to produce Stevia ($575,000).
July 20 2020: Senate: Sen. Hawley introduces The Slave-Free Business Certification Act (S. 4241) that would require CEO certification of goods free of slave labor.
July 1, 2020: State: Commerce, Treasury and DHS issue joint guidance on Xinjiang Supply Chains.
June 17, 2020: CBP: Withhold release order issued on imported hair products from Lop County Meixin Hair Product Co. Ltd. (Meixin) in Xinjiang, China.
May 1, 2020: CBP issues a withhold release order for hair products "manufactured by Hetian Haolin Hair Accessories Co. Ltd. (Haolin), who operate in the Xinjiang region.
November 12, 2019, US Congressional-Executive Commission on China: Senate committee chairs petition U.S. Customs for enforcement of the forced labor provisions relevant to the Uighur issue (particularly for textile and apparel products).
October 17, 2019: US Congressional-Executive Commission on China: Hearing on Forced Labor, Mass Internment, and Social Control in Xinjiang: Video
July 9, 2019: Economist: How China is crushing the Uighurs
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